Bioenergy's Uncertain Future in New York State: Ensuring the State's Energy Targets with Sustainable Solutions

Strategic Insights -

As New York State looks to implement the Climate Leadership & Community Protection Act (CLCPA), the future of bioenergy, a crucial component of the state's energy mix, has become increasingly uncertain. In a recent document, the New York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Public Service (DPS) propose aligning future Clean Energy Standard (CES) procurements with the eligible technologies defined under the CLCPA, which would exclude biomass from participation in the state's renewable energy program. However, the Empire State Forest Products Association (ESFPA) urges the Public Service Commission (PSC) to consider a separate tier for resources that do not meet the CLCPA's definition of "renewable energy system" but are low-carbon, biogenic-carbon-neutral, and essential for reaching the state's energy targets.

Key Takeaways:

  • The CLCPA's definition of "renewable energy system" excludes biomass, making its future uncertain in New York State.
  • The ESFPA represents over 400 member businesses, industries, and landowners engaged in forest resource production and stewardship of New York's 19 million acres of forest, contributing $22.9 billion dollars in annual industry production and nearly 100,000 jobs.
  • Biomass is a significant portion of the forest production value chain, with sustainably sourced biomass derived from forest management residuals and mill residuals.
  • Historically, New York State energy policy has treated biomass and bioenergy as clean renewable energy, with biomass being an eligible resource under the Renewable Energy Standard (RES) and the Clean Energy Standard Maintenance Tier (Tier 2).
  • The ESFPA suggests creating a separate tier within the CES 2.0 framework for resources that do not meet the CLCPA's definition of "renewable energy system" but are low-carbon, biogenic-carbon-neutral, and essential for ensuring the system's ability to reach the CLCPA goals.
  • Bioenergy can support the state's energy targets through 2050, as demonstrated by E3's Pathways to Deep Decarbonization in New York State, which modeled bioenergy resources in its base case scenario and concluded that bioenergy is needed in the transition to a carbon-neutral economy.
  • Bioenergy is a firm low-carbon, biogenic-carbon-neutral resource that can address the challenge of seasonal variation in supply and demand at a reasonable cost, making it an essential component of the state's energy mix.

Statistics:

  • The ESFPA represents over 400 member businesses, industries, and landowners engaged in forest resource production and stewardship of New York's 19 million acres of forest.
  • The forest production value chain contributes $22.9 billion dollars in annual industry production and nearly 100,000 jobs.
  • The CLCPA targets 70% of New York's electric generation to be derived from "renewable energy systems" as defined in the CLCPA by 2030.
  • E3's Pathways to Deep Decarbonization in New York State concludes that bioenergy is needed in the transition to a carbon-neutral economy, with the study envisioning an advanced role of bioenergy in New York's energy economy.
  • The study cites several references of bioenergy resources in achieving a 100% zero-carbon electricity by 2040 and an 85% reduction of Greenhouse Gas (GhG) emissions from 1990 levels by 2050.

Sources:

  • Pathways to Deep Decarbonization in New York State, Appendix B, E3 (Energy + Environmental Economics) (June 24, 2020)
  • White Paper on Clean Energy Standard Procurements to Implement New York's Climate Leadership and Community Protection Act, New York State Department of Public Service (June 18, 2020)
  • Climate Action Plan under the CLCPA, NYSERDA (June 2020)
  • Renewable Energy Standard (RES) and Clean Energy Standard Maintenance Tier (Tier 2) documents from the New York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Public Service (DPS)