Biopower: Background and Federal Support (CRS Report for Congress)
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| Release Date |
Revised Feb. 12, 2016 |
| Report Number |
R41440 |
| Report Type |
Report |
| Authors |
Kelsi Bracmort, Specialist in Agricultural Conservation and Natural Resources Policy |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Biopower—a form of renewable energy—is the generation of electric power from biomass feedstocks. In 2014, Biopower comprised about 1.6% of total U.S. electricity generation and accounted for close to 12% of U.S. renewable electricity generation. Its advantages include a potential for baseload power production, greenhouse gas emission reduction, and use of renewable biomass feedstock, among other things. Its disadvantages include uncertain sustainable feedstock supply and infrastructure concerns, among other things.
Recent developments have prompted renewed interest in biopower. For instance, some stakeholders are concerned about the treatment of biopower by the U.S. Environmental Protection Agency (EPA) for the Clean Power Plan (CPP). The CPP—which was granted a stay by the Supreme Court on February 9, 2016—establishes regulations that would reduce carbon dioxide (CO2) emissions from existing fossil fuel-fired electric power plants. . States are required to reacha state-specific emission reduction goal by 2030 using various options—including biopower—based on guidance provided by EPA. EPA has struggled with accounting for greenhouse gas emissions from bioenergy for various reasons, and it is not clear if this struggle will continue throughout the implementation of the CPP. Further, international demand for wood pellets—primarily to satisfy European Union renewable energy mandates—has increased significantly. This development has prompted environmental organizations and others to express concern about the harvest of increasing amounts of biomass and about possible increases in greenhouse gas emissions from the combustion of wood pellets to produce energy. By contrast, some in the forestry industry and the wood pellet industry argue that the international demand presents another market opportunity, that measures are in place to ensure a sustainable biomass feedstock supply, and that biopower can result in lower greenhouse gas emissions.
The future contribution of biopower to the U.S. electricity portfolio is uncertain. Challenges to biopower production include regulatory uncertainty (e.g., EPA’s CPP), market fluctuation (e.g., natural gas prices), conversion technology development, and tax uncertainty (e.g., extension or termination of renewable energy tax credits), among other issues. Some argue that a comprehensive energy policy focused on renewables could boost biopower production efforts, especially if the policy includes a renewable portfolio standard—a mandate that requires increased production of energy from renewable sources. There is no federal renewable portfolio standard, and the last Congress to robustly debate the issue was the 111th Congress. However, 29 states have established renewable portfolio standards, which vary dramatically from state to state. Current federal support for biopower exists in the form of loans, tax incentives, grant programs,
and more.
