Outlook The wood in the forest: Why California needs to reexamine the role of biomass in climate policy Peter Tittmann, Academic Coordinator, Woody Biomass Utilization Group, Center for Forestry, UC Berkeley I n California, the forestry sector and biomass energy producers have the potential to work together to reduce the state’s net greenhouse gas emissions, reliably generate renewable electricity, provide low- carbon building materials, support healthy forests and improve air quality. But wood energy producers are in a precarious position. Without quick policy changes, much of the state’s remaining biomass power plant capacity will soon be shut down. Roughly half of the power plants in the state that run on woody biomass are operating under power supply contracts set to expire by the end of 2016. Under current policies, it is likely that utilities will not offer new contracts at rates sufficient to cover the costs of operating these biomass plants. The biomass energy sector’s predicament stems in part from an otherwise positive development — the rapid expansion of low-cost solar photovol- taic power in California (fig. 1). Under California’s Renewables Portfolio Standard (RPS), one-third of the electricity provided by the state’s utilities must come from renewable sources by 2020. To meet these goals, utilities must contract with renewable power producers such as solar power installations, wind farms or biomass power plants. The price of electricity is a major factor in utili- ties’ power procurement decisions. As the price of power from new solar installations has dropped — it’s now in the range of 3 to 5 cents per kilowatt- hour less than what biomass plants can offer — utilities have little incentive to renew contracts with existing biomass power plants on terms that will allow the plants to stay open. But this simple price comparison misses two im- portant factors. First, by incentivizing better forest management and improved forest health, biomass energy leverages considerable climate and other en- vironmental benefits beyond the direct reductions in carbon emissions from generating electricity from a renewable resource. Second, biomass power plants provide consistent “base load” power output. Solar, by contrast, delivers intermittent power that declines in the afternoon as the demand for power peaks, complicating the management of the grid and requiring the operation of natural gas-fired “peaker” plants. This intermittency adds significant costs to the operation of the state’s power system that are not reflected in solar power’s low market price, but are passed on to ratepayers. Forestry and climate change The role of forests in climate change mitigation might seem simple: as trees grow, they remove http://californiaagriculture.ucanr.edu • JULY–SEPTEMBER 2015 133 Will Suckow The Buena Vista Biomass Power facility near Ione (Amador County) generates up to 18 megawatts of electricity from a mix of forest slash, urban green waste and woody biomass generated by farms.