State budget crisis may make Valley air dirtier
Funding cutbacks could close biomass plants that turn ag waste into electricity.
Facing federal cleanup deadlines and lawsuits over dirty air, the San Joaquin Valley may soon lose some unexpected pollution-fighting weapons -- several small power plants.
These so-called biomass plants make electricity by using agricultural prunings that would otherwise burn in state-sanctioned disposal fires on farms.
The plants produce 95% less pollution than open-field fires, a huge reduction considering the Valley can produce almost 1 million tons of farm waste annually.
But with state budget cutbacks and unsuccessful biomass bids for electricity contracts, some plants face closure in June. Others will continue but miss the benefit of state money that helped them make ends meet.
"We're not just a power company with a renewable energy source," said Kent Duysen, owner of Terra Bella-based Sierra Power, which would have to close if it doesn't have a long-term contract by June. "We're having a positive effect on the air in a place that needs the help. We should be considered differently in this valley."
Local air officials see much the same picture, saying biomass plants prevent
7 tons of particle pollution daily from going into the Valley's air, which is among the dirtiest in America.
The particles -- dust, soot and other specks -- are linked to increased mortality rates and lung disease.
But the state budget crisis may trump the Valley's air problems.
Gov. Davis has proposed eliminating $4 million from the current budget that was set aside for biomass operators -- part of the $10.2 billion package of midyear cuts he is pushing the Legislature to adopt to begin sewing up a record $34.8 billion shortfall.
The money for the biomass grant began in 2000 as a three-year, $30 million subsidy for the more than three dozen plants statewide. The money helped revive several struggling or closed biomass plants.
Since the first year, however, as state revenues declined dramatically, funding for biomass has been precarious. This year, it could be wiped out entirely. The budget has thrust lawmakers into a difficult position.
"Biomass is important not only for air quality, but for energy production," said Assembly Member Sarah Reyes, D-Fresno, who chairs the Assembly Utilities and Commerce Committee and sits on the Budget Committee. "But at a time when we're facing this kind of deficit, there's not going to be an opportunity for the state to subsidize them."
Biomass plant owners are not the only ones who will suffer from the loss of that subsidy, says a lobbyist for the California Biomass Energy Alliance, an association of plant owners.
"No one in the San Joaquin Valley can afford the extra emissions that will result if these plants close down," said Peter Weiner. "What we need is recognition at the highest levels of government that the air quality benefits are too great not to stabilize the biomass industry."
That argument works for one Valley lawmaker.
"If the rest of the state had to breathe the air we breathe, they would say that the money is a good investment, regardless of the budget," said Sen. Dean Florez, D-Shafter.
In addition to preventing particle pollution, the San Joaquin Valley Air Pollution Control District says, biomass prevents 4.6 tons of smog-creating nitrogen oxides from going into the air. Nitrogen oxides are emitted from combustion sources, such as fires or vehicles.
"[Biomass plants] are very beneficial," said Hector Guerra, senior planner with the district.
District officials figure the cost of reducing pollution with biomass plants is about $1,400 per ton of soot and particles. Normally, up to $5,710 per ton is considered an appropriate cost for other industries.
On the other hand, biomass electricity production is considered expensive compared to solar or wind energy. Biomass plant owners must pay for grinding up waste wood and hauling thousands of tons from farm fields.
To float loans for the work, the plant owners need long-term contracts with the state or with utility companies, they said.
The Valley's largest biomass plant, in Delano, landed a five-year contract with San Diego Gas and Electric. AES Delano Inc., formerly Delano Energy, is rated at about 50 megawatts -- each megawatt providing enough power for 750 to 1,000 homes.
But a five-year deal is a far cry from the 15- and 20-year contracts the biomass plants need to remain viable, said Doyle Hibler, plant manager. Without the state incentive program next year, his operation will have a tough time.
"It's going to be a stretch," he said.
It will be tougher for three Valley plants that have been shut out in their bids for utility contracts, Weiner said.
The three are Duysen's Terra Bella plant, Madera Power in Firebaugh and Dinuba Energy in Tulare County. Their combined 43 megawatts is enough electricity for up to 43,000 homes.
Now, with the state's energy contracting authority set to expire Dec. 31, they appear to have a six-month extension on their state contracts. But, by June, they will need to negotiate contracts with PG&E, Southern California Edison and San Diego Gas and Electric.
The Public Utilities Commission has ordered the utilities to buy more renewable power, which includes biomass, solar, geothermal and wind. But, because of higher costs, biomass has trouble competing with other energy production.
Some Valley biomass plants couldn't make ends meet and went out of business in the mid-1990s. But state money helped some plants reopen during the energy crisis in 2001.
One such plant was Madera Power in Firebaugh, owned by Energy Products of Idaho. Project manager Mike McIver said the state should try to keep biomass plants running.
"I would think the state would do everything possible to keep biomass plants going," he said. "If it means the state subsidizes them, I think it's right. We're talking about pollution control."
The reporters can be reached at mgrossi@fresnobee.com
lmaxwell@fresnobee.com or 441-6330.
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