No nPo int So urc e Offse ts Optio ns & Po te ntia l - - PowerPoint PPT Presentation

No nPo int So urc e Offse ts

Optio ns & Po te ntia l

__________________ Oc to b e r 14, 2016 E xe c utive Orde r 52 Sta ke ho lde r Co mmitte e Je ff Co rb in Re sto ra tio n Syste ms, L L C Se nio r VP fo r Wa te r Qua lity Ma rke ts a nd Mitig a tio n

My Unde rlying Assumptio n

 Po int So urc e Cre dits a re NOT

a Pe rma ne nt F ix to Offse t Ne w L

• a ds

 Allo c a tio ns Will Ne ve r b e Pe rma ne ntly T

ra nsfe rre d

 Using E

xc e ss Pt. So urc e Allo c a tio ns Pro vide s No “Additio na lity”

 i.e ., No Wa te r Qua lity Be ne fits

 So We MUST

F ind a Wa y to Ma ke No nPo int So urc e Offse ts Wo rk

 Do ing So Will Also Addre ss Muc h Ne e de d Ag Re duc tio ns

 Whic h a re Wo e fully Unde rfunde d

Offse t Optio ns

Bundling Ag Co nse rva tio n Pra c tic e s L

a nd Co nve rsio n

Wa ste -to -E

ne rg y

Bundling Ag Co nse rva tio n Pra c tic e s

 Pric e Ca n’ t Co mpe te with Che a p Po int So urc e Cre dits

 I

nc e ntivize ?

 Prio ritize a b o ve Po int So urc e Cre dits?

 Ne e d Ce rta inty tha t De ma nd will Ma te ria lize

 Sta te Buys Cre dits? (Nutrie nt Offse t F

und § 10.1-2128.2)

 Sto c k up a Surplus fo r E

c o no mic De ve lo pme nt E ntic e me nt?

 Ne e ds to b e E

no ug h o f a Buffe r “Ab o ve Ba se line ”

 Re me mb e r…2:1 Offse ts Re q uire d  T

he MOST yo u g e t in the Ja me s Ba sin (E a st o f I

• 95)

4.99 # s/ a c re (T N) 0.19 # s/ a c re (T P) E a rly Co ve r Cro p & 15% N Re duc tio n o n Co rn & Co nt. No -T ill

 e .g ., 10,000 po und T

N o ffse t wo uld ne e d 4008 Ac re s

 Ne e d to De ve lo p Bro ke ra g e s

 Priva te Ma rke t c a n do this (e a sily) if issue s a b o ve a re a ddre sse d

L a nd Co nve rsio n

 Wo rking F

a b ulo usly fo r VA Sto rmwa te r Pro g ra m

 Cre dit Pric e s a re Ma rke t-Ba se d with Multiple Co mpe ting Pro vide rs

 L

a nd I nte nsive fo r L a rg e Offse ts

 e .g ., T

he MOST yo u g e t in the Ja me s Ba sin (E a st o f I

• 95)

13.35 # s/ a c re (T N) 2.16 # s/ a c re (T P) e .g ., 10,000 po und T N Pt. So urc e o ffse t wo uld ne e d to c o nve rt 1498 ac r

e s!!

 Are the Re duc tio ns E

ffic ie nc ie s Ove rly-Co nse rva tive ?

 Nume ro us (una c c o unte d fo r) Co -Be ne fits – Wildlife , Ca rb o n, L

a nd Co nse rva tio n, e tc .

 I

s it T ime to Re visit/ Re vise / I nc e ntivize ?

Wa ste (Ma nure )-to -E ne rg y

 I

t’ s time …e no ug h ta lking a b o ut it…

 Sta te L

a w Alre a dy Allo ws I t (e nc o ura g e s? )…c a lls it o ut spe c ific a lly

 Co nside re d a Pt. So urc e in L

a w --- o nly a 1:1 Offse t Re q uire me nt

 § 62.1-44.19:15 (D) - Ne w o r e xpa nde d fa c ilitie s

 Prio ritize d fo r F

unding (Nutrie nt Offse t F und § 10.1-2128.2)

 Are a s o f Surplus Anima l Ma nure a re We ll-Do c ume nte d  Priva te Ma rke t Willing to I

nve st (no sta te / fe d funds)

 Co st Co mpe titive with Pt. So urc e Cre dits  I

t’ s a T rue “F ix” to Offse t Ne w/ E xpa nde d L

• a ds (de a ling with a kno wn pro b le m)

 Co -Be ne fits --- Addre sse s Cle a n/ Alt E

ne rg y Ne e ds

An On-the -Gro und E xa mple

GES AWTE Conversion Unit

The GES Animal Waste to Energy Solution

• The GES System converts animal waste to energy through a

closed loop zero-emissions process;

• This permanent nutrient reducing system is both modular and

scalable, and can be right-sized for virtually any WTE/Nutrient- Reduction application;

• A 50 Ton per Day animal waste conversion plant is currently

under construction in Duplin County, North Carolina and will begin commercial operation in Q1 2017;

• The GES Build-Own-Operate model puts all of the technology

risk on the technology provider, so the respective end-users pay

• nly for the power, REC, Char, or Nutrient Credits delivered.
• Duke Energy, Smithfield Foods, and Dominion Resources

(VEPCO) are participants in the NC project via PPA, REC, Waste Supply, and Char-Offtake Agreements.

Regulatory Friendly

• The Code of Virginia has already codified the use of animal-

waste-to-energy conversion as an approved Point Source Nutrient Offset practice, thereby conveying a River Basin wide Service Area at a 1:1 ratio of nutrient reduction pounds to nutrient credits.

• The larger service area and lower credit ratio allow for

economies of scale that are difficult if not impossible to achieve through Non-Point Source credit generation practices, which in turn allows for credit pricing closer to the General Permit defaults of $4.60/N lb. and $10.10/P lb.

• The GES credits are not regulatory-derived paper allocations

that can be reduced or eliminated with each 5 yr. permit cycle, rather they are actual laboratory verified permanent nutrient reductions within the watershed that can be contractually obligated for virtually any term.

• The GES credits can be electronically tracked, remotely

monitored by regulators via smart phone, tablet, laptop, or PC, and easily transferred and assigned, making them ideal for both permit compliance and economic development.

Wa ste (ma nure )-to -E ne rg y

E na b ling Co nditio ns

 Stre a mline d Ce rtific a tio n/ Appro va l Pro c e ss  Gua ra nte e d So urc e o f Ma nure (lo ng -te rm c o ntra c t)  Gua ra nte e d Purc ha se r o f Cre dits (Sta te via Nutrie nt Offse t F

und)

 Po we r Purc ha se Ag re e me nt

Optio ns Are L imite d, b ut…

 Ca n I

nc e ntive s I nc re a se the Via b ility?

 T

he re is a Willing / E a g e r Priva te Ma rke t

 Hig he r Re duc tio n E

ffic ie nc ie s?

 L

• we re d Offse t Ra tio s?

 Sta te -Purc ha se o f Cre dits?  Stre a mline the Pro c e ss?

Je ff Co rb in Se nio r VP fo r Wa te r Qua lity Ma rke ts & Mitig a tio n Re sto ra tio n Syste ms, L L C jc o rb in@ re sto ra tio nsyste ms.c o m (804) 389-4226