• Representing 50 members across all waste and technology sectors, including project developers, technology providers, waste and compost companies, public agency and local government adopters

• Focus on supporting rapid deployment of bioenergy technologies by market development, regulatory reform, policy initiatives and public and private financial infrastructure. Recent work includes: – 100 MM Cap & Trade Revenues for bioenergy – $350 MM CEC EPIC funding – $100 MM AB118 funding – Green Credit Reserve Bank – 75% Diversion and Organics Diversion – 250 MW utility purchase requirements (SB 1122)

• Focus on supporting rapid deployment of bioenergy technologies by market development, regulatory reform, policy initiatives and public and private financial infrastructure. 2014 Strategic Objectives include: – $100 MM Cap & Trade Revenues for bioenergy – $350 MM CEC EPIC funding – $100 MM AB118 funding – AB32 (Phase Out of Organics in Landfill) – CALRECYCLE 75% Diversion – 250 MW utility purchase requirements (SB 1122) – Organics Diversion (AB1826, Chesbro) – Green Credit Reserve Bank (AB2390, Muratsuchi)

• Generates 1/3 of energy needs for American River Packaging facility

• Processes 10 tons per day of organic waste from ARP and local food processors

• Interconnect agreement with SMUD

ARP Organic Waste Recycling Facility Project Host Partner: American River Packaging

Broke Ground: Dec 30, 2011 Commissioned: Mar 15, 2012

• Diverts 10,000 tons per year of food waste from local landfills, producing RNG to fuel Atlas Disposal’s 10 waste trucks

• Scaling to process 40,000 tons per year

• Will produce 700,000 diesel gallon equivalents of

• Produces valuable soil amendments for area farms

Sacramento BioDigester Project Host Partner: Sacramento County

Commissioned: January 2013

• Combines gas from closed landfill and digester to generate 5.6 GWh of renewable electricity

• Diverts 20,000 tons per year from local landfills

• Showcases UCD technologies

• Partnership between CleanWorld, UC Davis, U. S. Department of Energy and the California Energy Commission

UC DAVIS Renewable Energy Anaerobic Digester

Commissioning: October 2013

Project Host Partner: UC Davis

$0 $20 $40 $60 $80

CNG Electricity

-$125 -$100

-$75 -$50 -$25

$0

ID OR CA TN WA NH MA $0

$100 $200 $300 $400 $500

25 Tpd 50 Tpd 100 Tpd

Economics of Anaerobic Digestion

Output Value (per ton, high-solid organic waste)

Input Value (per ton, high-solid organic waste) Capital Costs (per ton of annual capacity)

CNG Electric

Avoided tipping fees

per ton

other liquids compost electricity CNG

• The Alternative and Renewable Fuel and Vehicle Technology Program is administered by the California Energy Commission and provides financial incentives, including annual grants of approximately $30 million for biofuel production facilities.

• Sacramento BioDigester Value: ~$1,300,000 in 2010, $6,000,000 in 2013

• For more information, please visit: http://www.energy.ca.gov/drive/index.html

Finance and Incentives: CEC AB118 Grant Program

• The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) has implemented the Advanced Transportation and Alternative Source Manufacturing Sales and Use Tax Exclusion Program (SB 71 Program). CAEATFA approves sales and use tax exclusions (STE) for eligible projects on property utilized for the design, manufacture, production or assembly of advanced transportation technologies or alternative source – including energy efficiency – products, components or systems.

• Sacramento BioDigester Value: ~$800,000 • For more information, please visit:

http://www.treasurer.ca.gov/caeatfa/sb71/index.asp

Finance and Incentives: CAEATFA

• The Department of Resources Recycling and Recovery (CalRecycle) administers a Recycling Market Development Zone (RMDZ) Loan Program to encourage California-based recycling businesses located within California to locate new manufacturing facilities as well as expand existing operations. The maximum loan amount is $2 million for each project.

• Value: ~$2,000,000 (loan guarantee) • For more information, please visit:

http://calrecycle.ca.gov/RMDZ/Loans/e/index.html

Finance and Incentives RMDZ

• The Public Interest Energy Research program is the state's

premier energy research, development, & deployment program for the advancement of science and technology in the fields of energy efficiency, renewable energy, advanced electricity technologies, energy related environmental protection, transmission and distribution as well as transportation technologies.

• Sacramento BioDigester Value: ~$820,000 (Fertilizer Production System)

• For more information, please visit: http://www.energy.ca.gov/research/epic/

Finance and Incentives PIER

• Enterprise Zone credits include 10% Net Operating Loss carry-forward, up to $37,440 in state tax credits for each qualified employee, sales tax credits on purchases of equipment, and preference points on state contracts.

• Sacramento BioDigester Value: ~$X00,000 • For more information, please visit:

http://caenterprisezones.com/

Finance and Incentives: Enterprise Zone

• California's Low Carbon Fuel Standard (LCFS) Program requires a reduction in the carbon intensity of transportation fuels that are sold, supplied, or offered for sale in the state by a minimum of 10% by 2020. The LCFS Program allows producers and importers to generate, acquire, transfer, bank, borrow, and trade credits. Fuel producers and importers regulated under the LCFS must meet quarterly and annual reporting requirements.

• Value: $30 to $65 per credit (metric ton) • For more information, please visit:

http://www.arb.ca.gov/fuels/lcfs/lcfs.htm

Finance and Incentives: LCFS

• Under the RFS (Renewable Fuel Standard), RINs for CNG are generated at a ratio of one RIN for every 77,000 Btu, based on EPA regulations. This is roughly equivalent to the amount of energy in one gallon of ethanol, which was essentially the standard unit of renewable fuel in the original Renewable Fuel Standard established by the Energy Policy Act of 2005.

• Value: ~$.25 - $1.00/RIN (EPA registration in process) • For more information, please visit:

http://www.epa.gov/otaq/fuels/reporting/rfs.htm

Finance and Incentives RFS

• The USDA administers the Advanced Biofuel Payment Program, which makes available each fiscal year an actual production payment and an incremental production payment to eligible

• Sacramento BioDigester Value: ~$.03 per DGE • For more information, please visit: http://www.usda.gov

Finance and Incentives USDA Advanced Biofuel Payments

• Largest California trade association working to promote

community scale bioenergy • Representing anaerobic digestion, gasification and other

technologies to convert organic waste to renewaable energy and other organic products

• Worked to establish the $165 million/year EPIC Program and extend $100 million/year AB 118 Program at CEC

• BAC’s Strategic Investment Initiative helped convince Governor Brown to direct up to $100 million in cap and trade funding to Bioenergy projects in dairy, food and forest waste

• Lead organization on establishing bioenergy procurement requirements (SB 1122) and pipeline biomethane standards

• www.bioenergyca.org

A. AB118 Biofuel Production Facilities

California Energy Commission AB 118 Program. Active: $24 million in grant funds for biofuel production Including biomethane. Due March 11, 2014. (PON 13-609) www.energy.ca.gov.

B. Electricity Program Investment Charge

Surcharge on utility customers. 9 year program, currently in Year 3. Approximately $165 million per year.

C. Cap and Trade Distributions C. Governor Brown’s 2014/15 Proposed Budget includes expenditures from California’s Cap and Trade program:

• Up to $30 million in new grant and loan funds for compost

and AD to CALRECYCLE • Up to $50 million in grant and loan funds to CalFire for

forest restoration and biomass energy • Up to $20 million in new grant and loan funds to CDFA for

dairy digester and compost programs

• Bioenergy Lobby Day, California State Capitol March 12 and 13, 2014

Julia Levin Executive Director

Bioenergy Association of California jlevin@bioenergyca.org

510-610-1733 www.bioenergyca.org