biomass - schanz & garvey

8/3/2019 Biomass - Schanz & Garvey

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Realizing Plants Full Potential:Electricity from Biomass

By Becky Schanz andMegan Garvey

Chicago-Kent College of Law

Energy Law Presentation*

[email protected]

[email protected]


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Overview of Presentation

Introduction and Background

Technologies that Produce Electricity fromBiomass

Legal Aspects

Conclusion


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Biomass:

Biomass is plant matter or other biological

material, such as trees, grasses, or agriculturalcrops.

On average, biomass is made of 75%carbohydrates and 25% lignin.

Lignin forms the woody cell walls of the plants.


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Biomass

Wood and Wood

products


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Biomass

Agricultural Biproducts

and Residues


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Bioenergy:

Bioenergy or biomass energy is any fuel,

electric power, or useful chemical productderived from organic matter.

Bioenergy can be derived either directly fromthe plants or indirectly from plant-derived

wastes and residues.


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Environmental Factors

Generates same amount of heat and carbon

dioxide as from natural processes. Renewable energy source

Reduces erosion by preserving soil


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Environmental Factors

Provides a habitat for wildlife species

Provides moisture retention and shade, whichcools our atmosphere.

Most wood used is remnants from the loggingindustry, such as tree tops and wood chips.


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Reliability

The United States has an estimated 65-90

billion tons of dry matter. At 2000 energy use levels, this biomass could

supply 14-19 years of energy.

The Department of Energy states that all of the

biomass available now has an energy contentthat would produce an estimated 2,740 Quads.

1 Quad = 1,000,000,000,000,000 Btus


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USSources of Biomass


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US Electricity Generation

U.S. Energy Consumption and Electricity Generation, 2001

Consumption.............. ..... Electricity Generation...... .

Energy Source (Quads *) (% Total) (Bill. kWh **) (% Total)Total 97.1 3,719.4

Coal/Coal Coke 21.9 22.6 1,904.0 51.2

Petroleum 38.2 39.4 126.0 3.4

Natural Gas 23.2 23.9 627.1 16.9

Nuclear 8.0 8.0 768.8 20.7

Hydro Pumped Storage -0.09 -8.8

Renewables (Total) 5.7 5.9 297.3 7.9

Hydro 2.4 2.5 217.5 5.6

Biomass/Biofuels 2.9 2.9 59.7 1.6

Geothermal 0.32 0.32 13.8 0.37

Solar 0.06 0.07 0.5 0.01

Wind 0.06 0.06 5.8 0.16

_______________________________________________________________Note: values are rounded.* A quad is quadrillion British Thermal Units (Btu), and is the equivalent of about 180 million barrels of crude oil.** Bill. kWh = a billion kilowatt-hours; One kilowatt-hour (kWh) is the equivalent of running a 100 Watt light bulb for 10 hours.


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US Biomass Generation

The US is the largest biopower generator. It

produces 37 billion kWh of biomass electricitywhich requires about 60 million tons ofbiomass a year.

The US has more than 7,000 MW of installed

capacity. We have about $15 billion invested and 66,000

jobs.


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Biomass Potential in Illinois


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Biomass Usage


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Marketing & Incentives

Green Power Marketing provides choices for

consumers to purchase power from renewableor environmentally friendly sources.

Customers also pay a premium to supportinvestment in renewable energy technologies.


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Marketing & Incentives

The EPA Combined Heat and PowerPartnership program is a voluntary partnershipbetween EPA, combined heat and power(CHP) industry, utilities, and state and local

governments that create CHP programs.


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Biomass Uses for Energy

Heating stoves, process heat

Cooking developing world Transportation ethanol

Electric Power Production


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Technologies used to ProduceElectricity from Biomass

Direct Combustion -

burning biomass withexcess air to producesteam


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Technologies (cont.)

Co-Firing replaces part

of the coal with biomass,as a supplementaryenergy source.


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Gasification heat

biomass without oxygento produce a calorific gas


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Small Modular Bio-

Power develops small,efficient, clean biopowersystems


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Direct-Fired Combustion

Oxidation of air and biomass

Produces hot flue gases that produce steam Steam generates electricity in generators


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Direct-Fired Biomass System


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Small-ModularSystems

Less than 5 MW

Potential to power villages Consist of power generation attached to the

transmission and distribution grid, which isclose to the end consumer.

Potential to supply 2.5 billion people who arecurrently without electricity.


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Gasification

Two processes:

Pyrolysis releases volatile compounds of the fuel Bigger role here than in coal fired plants

Char Conversion carbon remaining after pyrolysisreacts with steam and/or oxygen (combustion) Biomass has high reactivity


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Types of Gasifiers

Direct Gasifier

Indirect Gasifier


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Direct Gasifier


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Indirect Gasifier


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Gasification Process DirectGasifier

Plant gets wood chips

Biomass is gasified Air is extracted from the gas turbine and fed

into the gasifier

Gasification steam is extracted.

Remaining fuel gases are cooled.


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Gasification Process Direct

Gasifier

Fuel gas combusts and produces electric

power and a high temperature exhaust steam Exhaust steam expands in a steam turbine to

produce additional power

Steam is extracted and electricity is sent to a

substation


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Generating Capacity

The United States has about 7 GW of grid-

connected biomass generating capacity. Coal-fired electric units are 297 GW of

capacity, which is about 43% of totalgenerating capacity.


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Vermont Project

Vermont has the first industrial biomass

gasification process located in Burlington. The process integrates a high-throughput

gasifier with a high-efficiency gas turbine.

Circulating hot sand surrounds the biomass

particles and the particles break down andproduce gas.

This project uses an indirect gasifier system.


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Vermont Project


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Advantages of Gasification

Biomass closes thecarbon system andtherefore reducesemissions.

Biomass is low in sulfur Biomass contains .05 to

.20 % of weight is sulfur Coal contains 2-3% of

weight is sulfur


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Advantages of Gasification

Operates at a lower temperature and widervarietyof feedstocks than direct combustion systems.

Can produce a Btu gas that is interchangeable withnatural gas.

Produces nitrogen free gas.

Less landfill waste.

Future technologies are being developed

Fuel Cell Systems


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Disadvantages of Gasification

Some biomass plants have closed because of

deregulation of the electric utility industry. Hard to compete with cheaper sources, such

as coal, oil, and nuclear.

Small amounts of tar are released in the gas.

The tar can coat parts of the pipe or theequipment. Catalyst reactor has been developed to decrease

the amount of tar to parts-per-million.


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Disadvantages of Gasfication

Still a new technology and the Vermont Plant

has not been able to operate continuously yetfor a sustained period of days or weeks.

Over storage of wood fuel can lead to odorproblems and spontaneous combustion.


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Present and Future Costs

Steam Turbine AdvancedGasification

Capital 3-5 cents/kWh 2.63 cents/kWh

Operating(excluding fuel)

2.2-2.8 cents/kWh .4 cents/kWh

BiomassFeedstock

1.2-3.5 cents/kWh 1.62 cents/kWh

TOTAL 6.4-11.3cents/kWh

4.65 cents/kWh


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Costs

Capital costs of building a biomass-fired steam

turbine plant is about $2000-2500 per KW ofinstalled capacity.

These costs are expected to decrease in thefuture.


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Future of Gasification

Gasification has a bright future, once the

technology is fine-tuned. If the cost of the process decreases as

expected, it will be able to competeeconomically with current energy sources.


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Co-Firing Biomass with Coal andthe Legal/Governmental Incentives

for Biomass as a Renewable


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Co-firing Biomass with Coal to

produce Electricity

What is Co-firing? The simultaneous combustion of biomass and coal in a pre-

existing boiler of a traditional coal-fired power plant

2 Methods

Blending

(+) Least expensive

(-) Limited amounts; higher possibility of damage

Separate Feed (+) greater emission reductions; greater amounts of biomass

tolerates; less harmful to existing boiler

(-) requires more resources (equipment, $)


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One form of blending isdirectly adding biomassto the coal-belt.


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Advantages of Co-firing:

Something for Everyone

The Existing Power Plant

Existing equipment is still utilized Easier to meet environmental regulations and hedge

future regulations

Cost savings

Tax incentives Fuel supply options

Good PR


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Biomass

Encourages developmentof feedstock infrastructure

Creates a market for

residues and energy crops


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The Environment

Reduces GHG emissions(CO2; CH4)

Reduces SO2 and NOXemissions

Reduces burden onlandfills

Extends the life of coal-use for electricitygeneration


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The Economy $$$

Provides an end use for lowvalue/negative value products

Maintains existing market forcoal

Increases domestic economicgrowth and job creation

Increase economic activity inrural/agricultural areas

Increase business forequipment suppliers


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Disadvantages of Co-firing

Technological issues

Existing boilers/systems designed (exclusively) forfossil fuels Negative impact on existing boilers

CL-based corrosion

Negative impact on boiler capacity


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Disadvantages

Diverse feedstock

Range of different fuelcharacteristics

Woody Grassy

Residues energy crops

Ash content

Fuel nitrogen content


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Uncertainties due to different biomass

propertiesDifferences between biomass and coal

Higher moisture content (= low net calorific value)

Higher CL content

Low heating value Low bulk density

Higher content of volatile matter (80%:coal 30%)


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Disadvantages

Feeding methods

Fuel preparation and handling

Ash-related issues

Biomass = source of aerosols

Pure-coal ash required for concrete use


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Just a couple moredisadvantages

Engineering to commercial/economical issues?

Requires incentives Less incentives for small-scale plants

Might require additional investments Equipment

Biomass material Dependant on the availability and price of low-

cost biomass feedstocks


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Co-Firing Programs

Goals:

Promote biomass using theleast-cost approach

Broaden the base of utilitiesemploying co-firing

Increase the # and type of co-

firing techniques Provide the underpinning for

advanced designs

DOEs Biopower Program


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Accomplishments

Switchgrass; willow = successful bio-material

Biomass co-firing = technologically successful

Viability demonstrated

Pollutant emission reductions verified

Economic models/feeding techniques developed


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Co-Firing Programs

Regional Biomass Energy Program (RBEP) Federally-funded; located in 5 regions of U.S.

Goal = to increase the production and use of bioenergyresources

Best candidates

Full-scale analysis

Accomplishments:

Successful biomass co-firing operations from an operational andperformance perspective requires

Biomass price 20% less than that of coal

Reliable and automated procedures


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Co-Firing Programs

Co-firing project atHawaii CommercialSugar

Result:

Sugar cane (bio-material)+ coal = less NOXemissions!


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Co-Firing Programs

Co-firing program forurban wood waste Northern Indiana Pub.

Service Co + ElectricPower Research Institute+ DOE

Urban wood waste + coal

(W. bituminous andPowder River Basin)


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Current Power Plants Using Co-

Firing Method on a Regular Basis

Northern States Power (NSP) Wood residues + coal

Tacoma Public Utitlies Wood wastes and garbage + coal

TVA Wood waste + coal

Southern Company Wood residues (grnd pallets/hurricane-damaged trees) + coal

NY State Electric and Gas (NYSEG) Sawdust; furniture factory waste + coal


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Furthermore, Numerous OtherPower Plants are Exploring the

Benefits of Co-Firing

Niagara Mohawk PowerCo.

GPU GENCO

Madison Gas & Electric

Atlantic Electric

American Electric Power

Illinois Power Company

Plains Electric

IES Utilities

Northern Indiana PublicService Co.

And MANY more!!


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Summary

Co-Firing biomass capitalizes on the large

investment and infrastructure associated withthe existing coal-fired power plants whiletraditional pollutants (SO2; NOX) and netGHGs (CO2; CH4) are decreased!!


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Legal Aspects and GovernmentalIncentives pertaining to Biomass

as a renewable form of energy

Federal

State


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Federal

1. Energy Policy Act of 2003 (Energy Bill/S.

2095) Title II: renewable energy incentives

Title XIII: energy tax incentives

Section 206

2. Biomass R&D Initiative of 20033. Bioenery Initiative

Exec. Order 13134


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Federal (cont)

4. Ag. Risk Protection Act of 2000 (P.L. 106-224);

TitleIII

. Biomass R&D Act5. Green Power Purchasing Goal

Exec. Order 13123

6. Renewable Energy Systems and Energy

Efficiency Improvement Program7. CAA amendments


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(1) Energy Policy Act of 2003

Energy Bill (S. 2095)

Title II: renewable energy incentives

New incentives for development and use ofrenewables

Mandates assessments to assist in long-term plans

Reauthorizes the Renewable energy ProductionIncentive Program

Grants for turning forest material into biomassenergy


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Title XII: Energy tax incentives Previous Renewable Electricity (and Energy) Production

Credit expired for all new projects on 12/31/2003 Creates a NEW Tax incentive!!

Extends placed-in service date forclosed-loop biomass andpoultry waste facilities

Adds open-looped biomass, municipal bio-solids, and recycledsludgeas qualifying energy resources

Credit = 1.8 cents/kWh (no inflation adjustment) Allows for tradable tax credits for tax-exempt entities, co-ops, and

municipal utilities

Effective: 10/1/2004

www.energy.senate.gov


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Section 206

Grants to improve the commercial value of forestbiomass for electric energyand other commercialpurposes

The government found that: Risk

(wildfire; insect infestation; tree mortality; drought)

requires preventive measures

=by-products of biomass BUT no suitable market


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Section 206 (cont.)

Therefore, the U.S. should:

Promote economic and entrepreneurial opportunities inusing these by-products

Develop and expand markets


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(2) Biomass R&D Initiative of 2003

DOE and USDA

$23 million allocated to 19 different biomassprojects


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(3) Bioenergy Initiative

Exec. Order 13134: Developing and Promoting

Bio-based Products and Bioenergy Policy = national strategy to stimulate the creation

and early adoption of technologies needed to makebiobased products and bioenergy cost-competitive Expand employment opportunities

Create new market

Reduce Nations dependence on foreign resources

Decrease pollution


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Bioenergy Initiative

Presidents goal = triple U.S. use of bio-based

products and bioenergy by 2010

DOE + federal organizations = nationalpartnership to develop an integrated industry to

produce powerfrom biomass


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(4) Agricultural Risk Protection Actof 2000 (P.L. 106-224)

Title III. Biomass R&DAct

Recognition that biomass has outstanding potential tobenefit the national interest

Combined efforts of DOA and DOE Purposes:

1. To understand biomass

2. To develop new and cost-effective technologies that wouldresult in large-scale commercial production

3. To ensure economic and energy security and environmentalbenefits of bio-products

4. To promote the development and use of agricultural andenergy crops for conversion


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(5) Green Power Purchasing

Program

Applicable sector: federal government

Goal = 2.5% renewables by 2005 Effective: 6/2000

Authority: Exec. Order 13123 Requires federal agencies to increase their use of

renewable energy Biomass systems installed after 1990 apply asnew renewable energy resources (emphasis onnew to reach goal)


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Green Power Purchasing Program

2000: obtaining 13% of goal

March 2004: 77% of goal !!!


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(6) Renewable Energy Systemsand Energy Efficiency Improvement

Program

Federal grant program through the USDA

Commercial/agricultural producers Grants provided for 25% of eligible project

costs

Producer must demonstrate financial need


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(7) 1990 Amendments to CAA

(7) Lowered baseline limitations for SO2

emissions = increase in market-price of air emissionallowances

= electricity generators will turn to bio-energy toreduce costs and meet stricter regulations


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State Law/Incentives

Illinois


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State

1. Mainstay Energy Rewards Program

2. IL Clean Energy Community Foundation Grants

(ICECF) 220 ILCS 5/16-111.1

3. Renewable Energy Resources Trust Fund 220 ILCS 687/6-4

4.

Renewable Energy Resources Program Grants(RERP)

5. Renewables Portfolio Goal 220 ILCS 5/16-111.1


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(1) Mainstay Energy Rewards

Program

Green Tag Purchase Program = production incentive Private company buys the green tags (RECs) which are

brought to the market as Green-e certified products Participating companies receive regular, recurring payments

Dependant on type of renewable; production of energy; length ofK

Biomass is eligible

Commercial and residential sectors

Amount = .1-1cent/kWh (for biomass)

Certification fee and requirements

200 current participants!


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(2) IL Clean Energy Community

Foundation (ICECF) Grants

State grant program Grants, loans, other financial support

$250 million endowment from ComEd

Non-profit; schools, state and local governmentsserving IL

Authority = 20 ILCS 5/16-111.1

IL Resource Development and Energy Security Act Purposes: Enhance the states energy security by ensuring

that(iv) pilot projects are undertaken to explore the capacity ofnew, often renewable sources of energy


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(2) ICECF Grants (cont)

Effective 2001

How to apply? Submit proposal (competitive basis)

Between 2001-2002:

ICECF awarded more than $17 million in grants for

renewable energy projects in IL!!


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(3) Renewable Energy Resources

Trust Fund

Public benefits fund required in 220 ILCS687/6-4

Available for the general public/consumer

$50 million for 10 years

Collection

$.50 cents/month from residential and smallcommercial electric and gas customers

$37.50/month from large commercial electricitycustomers


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(4) Renewable Energy Resources

Program (RERP) Grants

State grant program funded by the RenewableEnergy Resources Trust Fund

Distributed in the form of grants (for largesystems) and rebates (for small systems)

Involves an annual RFP process


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(5) Renewables Portfolio Goal

Specific standard to IL

Applies to Utilities 5% by 201015% by 2020

Effective: 7/2001

Authority: 220 ILCS 5/16-111.1

Contains a goal but NO implementation schedule,compliance verification or credit-trading provisions


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Biomass Utilization for ElectricityProduction =

SOMETHING

FOR

EVERYONE!!!

biomass - schanz & garvey

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