Lumbee Tribe

LUMBEE NATION ECONOMIC SUMMIT
Heritage,
Pride &
Strength Energy as a Tool of Economic Development Using v Energy Efficiency Improvements v Renewable Energy Development Tim Michels, ENERGY CONSULTANT, ARCHITECT •  Started Energy Resources Group, Inc., an Energy Consul>ng Company, in 1975. •  Served 10 years on ASHRAE 90.1 developing Energy Standards for New Construc>on •  Adjunct Faculty: Washington University (8 years) EECE 591: Energy and Buildings and part of the WU Building Energy Research Center •  Serve on the Green Prac>ces Commission of University City •  Authored several books on Solar Energy and taught Passive Solar Design to Builders in the 70s for the US DOE Lumbee Na>on Economic Summit Goals Today v  Provide background, context, and new thought approach v  Present the interdependent web of opportuni>es and problems v  Discuss the needed paradigm shi[s v  Delineate a Strategy that can be a template for using Energy Efficiency and Renewable Energy for Economic Development. v  Establish a vision for taking Tribes to NET ZERO CO2 emissions. Lumbee Na>on Economic Summit THIS IS WHY WE DO IT Lumbee Na>on Economic Summit Percep?on / Frame of Reference
a
b
Lumbee Na>on Economic Summit Integra?ve Design with a Systems Approach v  Wide Perspec>ves / Broad Points of view are cri>cal for problem solving. v  Follow the example of nature – there is no such thing as waste •  Outputs from one system are necessary inputs to another one. Lumbee Na>on Economic Summit DHUD Federal Life Cycle DOE State Maint. Cost •  We can’t do it the same way it has always been done •  Need to eliminate a silo approach to the world USDA County Energy Cost v  Encourage disrup>ve thinking BIA Tribe/City First Cost •  Everyone has a valid and valuable point of view WHY Energy?
v Energy efficiency is a hidden gold mine for: •  Buildings (use 40% of US Energy) •  Industry •  U>lity Infrastructures in par>cular •  Transporta>on v Renewable energy is already cost effec>ve in the right contexts and with the right approaches v Everyone wants to be part of the “save the planet” agenda –we need to protect spaceship earth for 7 genera>ons Lumbee Na>on Economic Summit Energy Management
v  Contrary to popular opinion, energy management is not about saving energy. It is about saving capital. v  It is the compe>>on for capital that will determine the success or failure of the future of the energy efficiency, energy conserva>on and environmental restora>on efforts. Lumbee Na>on Economic Summit Global Energy Comparisons
World and USA Energy and Population 500
7,000
450
400
5,000
300
World Enegy
250
USA Energy
4,000
Energy Information
World Pop.
Administration
International Energy Annual
2006
USA Pop
200
150
3,000
2,000
21.1%
100
1,000
50
4.6%
Year
Energy Information Agency, US DOE Dec 2008 International Energy Annual 2006
Lumbee Na>on Economic Summit 2005
2000
1995
1990
1985
1980
1975
0
0
2010
Quads
350
Population in Millions
6,000
Global Energy Comparisons
Energy/$GDP
(PPP)
16,000
14,000
BTUs/$GDP
12,000
10,000
26%
8,000
6,000
USA
4,000
World
Oceana
2,000
Europe
Year
Lumbee Na>on Economic Summit 2010
2005
2000
1995
1990
1985
1980
1975
0
Global Energy Comparisons
Energy per Person
400
350
BTUs/$GDP
300
USA
250
Europe
World
200
Oceana
150
100
50
Year
Lumbee Na>on Economic Summit 2010
2005
2000
1995
1990
1985
1980
1975
0
USA Energy Flow (98 Quads) (Quads = 10
Lumbee Na>on Economic Summit 15 BTUs) Annual USA Energy Usage (Quads = 1015 BTUs) Annual Quads Used (1015 BTUs)
110
110%
100
100%
Annual Energy Use Quads per Year
90
90%
80
80%
70
70%
Domestic Fossil Fuels
60
60%
50
50%
40
40%
30
30%
% Net Imports
20
Fossil Fuel Imports
20%
10
Renewable
Nuclear 10%
Renewable Nuclear
0
-­‐10
1940
1950
1960
1970
Lumbee Na>on Economic Summit 1980
1990
2000
2010
0%
-­‐10%
2020
USA Energy Sectors (Control) Personal Control = 30%
(75% Heat)
Lumbee Na>on Economic Summit Energy Efficiency Benefits
Cost EffecGve •  3 Yr. Payback for Business •  6 Yr. Payback for Individuals
Reinvestment •  $2.0 Trillion •  25 MM Job Yrs. •  10 Yr. Program
Trade Balance •  No Net Energy Imports •  Net Export of 17%
Lumbee Na>on Economic Summit WHERE COULD WE BE?
Annual Quads Used (1015 BTUs) 110 100 Kyoto Protocol Target 95% of 1990 CO2 90 80 Quads per Year 70 60 50 40 30 20 10 0 1940 1950 1960 1970 1980 1990 2000 2010 2020 WHERE COULD WE BE?
Annual Quads Used (1015 BTUs) 110 100 Kyoto Protocol Target 95% of 1990 CO2 90 25% Savings Payback < 4 years 80 Quads per Year 70 60 50 40 30 20 10 0 1940 1950 1960 1970 1980 1990 2000 2010 2020 WHERE COULD WE BE?
Annual Quads Used (1015 BTUs) 110 100 Kyoto Protocol Target 95% of 1990 CO2 90 80 Quads per Year 70 50% Savings Payback < 10 years 60 50 40 30 20 10 0 1940 1950 1960 1970 1980 1990 2000 2010 2020 WHERE COULD WE BE?
Annual Quads Used (1015 BTUs) 110 100 Kyoto Protocol Target 95% of 1990 CO2 90 80 Quads per Year 70 50% Savings Payback < 10 years 60 50 40 30 20 10 0 1940 1950 1960 1970 1980 1990 2000 2010 2020 Triple BoZom Line Thinking: Benefits of High(er) Performance Buildings
•  Peak Equipment
Efficiencies
•  Longer Equipment
Life Cycles
•  Less Environmental
Impact
Planet
•  Creates Jobs
•  Improves
Productivity
•  Reduces
Absenteeism
People
Lumbee Na>on Economic Summit Profit
•  Net Zero Budget
Impact ($0 cost)
•  Efficiencies Fund
Changes w/Savings
•  Increases Asset Value
•  Buffers Future
Fuel Cost Increases
Triple BoZom Line Thinking: Benefits of High(er) Performance Buildings
•  Peak Equipment
Efficiencies
•  Longer Equipment
Life Cycles
•  Less Environmental
Impact
Planet
•  Creates Jobs
•  Improves
Productivity
•  Reduces
Absenteeism
People
Lumbee Na>on Economic Summit Profit
•  Net Zero Budget
Impact ($0 cost)
•  Efficiencies Fund
Changes w/Savings
•  Increases Asset Value
•  Buffers Future
Fuel Cost Increases
Renewable Energy Future
World Energy Scenario
Today
Energy Need (%)
100%
50%
0%
Time
Renewable
Non-Renewable
23 Advanced Nuclear
NG Advanced CC with CCS
Biomass
NG Advanced Combustion Turbine
Advanced Coal
EIA Annual Energy Outlook 2015
Solar PV
Levelized Cost of Electricity (LCOE)
NG Conventional Combustion Turbine
New Generation in 2020
Advanced Coal with CCS
% of Conv. Average
Plant type
Coal
LCOE 1 Wind – Offshore
47.8 Solar Thermal
Geothermal
50%
72.6
NG Advanced Combined Cycle
76%
73.6 Non-Dispatchable Technologies
Wind
77%
75.2 Dispatchable Technologies
NG Conventional Combined Cycle
79%
83.5
Hydroelectric
88%
Conventional Coal
100%
95.1
95.2
Advanced Nuclear
100%
100.2
NG Advanced CC with CCS
105%
100.5
Biomass
106%
113.5
NG Advanced Combustion Turbine
119%
115.7
Advanced Coal
122%
125.3
Solar PV
132%
141.5
NG Conventional Combustion Turbine
149%
144.4
Advanced Coal with CCS
152%
196.9
Wind – Offshore
207%
239.7
Solar Thermal
252%
Current Renewable Energy Economic Forecasts
1 $/MWh Lumbee Na>on Economic Summit 100%
105%
106%
119%
122%
132%
149%
152%
207%
252%
Net Zero Commitments
•  The US Army has a Net-­‐Zero Vision for energy, water, and waste. “We are crea(ng a culture that recognizes the value of sustainability measured not just in terms of financial benefits, but benefits to maintaining mission capability, quality of life, rela(onships with local communi(es, and the preserva(on of op(ons for the Army’s future.” •  The US Army is commiled to a $7 billion purchase of renewable energy: wind, solar, biomass, geothermal, and fuels from wastes. Power Purchase Agreements (PPAs) secure energy at cost parity or less. PPAs leverage private sector funds and by-­‐passes congress. Sandhills – a group of collabora>ng coopera>ves – will have a bright future supplying Ft. Bragg if Sandhills moves into the renewable energy business. •  The Navy is on a bio-­‐fuels mission to power its fleets. Lumbee Na>on Economic Summit Georgetown, Texas
•  Popula>on ~ 58,000 •  The City of Georgetown municipally-­‐owned electric u>lity started in 1911. The City closed its power plant in 1945 and began a long-­‐term purchased-­‐power contract to supply energy to its customers. Ending a long-­‐term power contract in 2012 allowed the City to pursue new power suppliers. •  A 150-­‐megawal solar power agreement (SunEdison) provides electricity at a lower overall cost than its previous wholesale power contracts through 2041. A 144 megawal wind power agreement (EDF) provides compe>>vely priced electricity to Georgetown through 2035 •  Georgetown will supply its customers with 100 percent solar and wind based electricity -­‐ buffered with electric storage –at compe>>ve electric rates that hedge against future fossil fuel price and regulatory vola(lity. •  Creates 800 jobs during construc(on. Permanent Jobs will also be generated. •  Saves lots of water, in a drought striken area, by not using conven(onal power. Lumbee Na>on Economic Summit Georgetown, Texas
•  Popula>on ~ 58,000 •  The City of Georgetown municipally-­‐owned electric u>lity started in 1911. The W City closed its power plant in 1945 and began a long-­‐term purchased-­‐power contract to supply energy to its customers. Ending a long-­‐term power contract in 2012 allowed the City to pursue new power suppliers. •  A 150-­‐megawal solar power agreement (SunEdison) provides electricity at a lower overall cost than its previous wERCOT holesale power contracts through 2041. S 144 megawal wind power agreement (EDF) provides compe>>vely priced electricity to Georgetown through 2035 •  Georgetown will supply its customers with 100 percent solar and wind based electricity -­‐ buffered with electric storage –at compe>>ve electric rates that hedge against future fossil fuel price and regulatory vola(lity. •  Creates 800 jobs during construc(on. Permanent Jobs will also be generated. •  Saves lots of water, in a drought striken area, by not using conven(onal power. Lumbee Na>on Economic Summit 15 Minute Break Energy Management
• Contrary to popular opinion, energy management is not about saving energy. It is about saving capital. • It is a compe>>on for capital and it right applica>on to problem solving that will determine the success/failure of the future of energy efficiency, renewable energy, water availability, and environmental restora>on in general. Lumbee Na>on Economic Summit Energy as an Economic Development Tool
1.  Establish an Energy Investment Policy that works for the Tribe/Community 2.  Generate an Energy Master Plan A. 
B. 
C. 
D. 
Establish Energy Design Criteria for new and rehab construc>on Iden>fy Energy Efficiency Measures through energy audits Iden>fy Renewable Energy Opportuni>es through site assessments Iden>fy Job Opportuni>es that would capture these cash flow streams 3.  Secure Funding for Implementa>on 4.  Implement Energy Efficiency and Renewable Energy that meet investment criteria 5.  Require Measurement and VerificaIon (M&V) of results Lumbee Na>on Economic Summit Step 1: Energy Investment Policy Model
v  Set Energy Efficiency and Renewable Energy Investment Criteria •  All efforts must prove to be cost effec>ve o  Using 20 year life cycle cos>ng (similar to Federal Requirements) o  Energy measures must show simple paybacks of < 15 years or Provide an ROI greater than the yield on reserve funds o  CO2 emission reduc>ons are credited at $20/ton (effec>vely adds $0.02/kWH) as a hedge against future increases in the costs of conven>onal fuels •  Must use 30+% less energy than current City Energy Code if economics are favorable v  Addresses energy efficiency in new construc>on, major renova>on of buildings and requires enhanced commissioning of all construc>on. v  Promotes Public Private Partnerships (PPPs) for renewable energy investments to mone>ze federal tax benefits. v  Requires kiosks for public educa>on regarding the improvements. Lumbee Na>on Economic Summit University City, Missouri passed an Energy Efficiency, Renewable Energy And Greenhouse Gas Reduc>on Policy (Ordinance 6956, 5/12/14 ) Step 2: Generate an Energy Master Plan
A.  Improve building energy performance design criteria to match with proposed energy investment criteria: Building Envelope, Ligh>ng, HVAC, and Plumbing. B.  Iden>fy Energy Efficiency Measures through energy audits • 
• 
• 
• 
Establish present energy use palerns using building u>lity use data. Use Energy Use (BTU/SF-­‐Yr) and Cost ($/SF-­‐Yr) Indexes to priori>ze buildings for ac>on. This may focus on par>cular u>lity service areas based on rates. Execute energy audits for all buildings. Generate efficiency implementa>on plans: Residen>al, Commercial & Industrial C.  Iden>fy Renewable Energy Opportuni>es • 
• 
Survey and analyze renewable resources on site Generate renewable energy produc>on plans D.  Iden>fy Jobs associated with efforts. Lumbee Na>on Economic Summit 2.A Economic Criteria for Design Elements
Economics of Energy Efficiency
120
Relative Dollars
100
80
60
40
20
0
(20)
0
5
10
15
20
25
Increasing Efficiency Efforts
© ERG, Inc
Operating
Lumbee Na>on Economic Summit Invest
30
2.A Economic Criteria for Design Elements (cont.)
Economics of Energy Efficiency
120
Relative Dollars
100
80
60
40
20
0
(20)
0
5
10
15
20
25
Increasing Efficiency Efforts
© ERG, Inc
Operating
Lumbee Na>on Economic Summit Invest
Savings
30
2.A Economic Criteria for Design Elements (cont.)
Economics of Energy Efficiency
120
Point of
Diminishing
Returns
Relative Dollars
100
80
60
40
20
0
(20)
0
5
10
15
20
25
Increasing Efficiency Efforts
© ERG, Inc
Operating
Lumbee Na>on Economic Summit Invest
Savings
Net Savings
30
2.A Economic Criteria for Design Elements (cont.)
R Value
10
20
30
40
50
U Value
0.100
0.050
0.033
0.025
0.020
Hours/Day
24
24
24
24
24
Eff HDD/yr
4000
4000
4000
4000
4000
Efficiency
90%
90%
90%
90%
90%
Annual Heating BTU/SF
10,700
5,300
3,600
2,700
2,100
Annual Cost ($/SF)
0.107
0.053
0.036
0.027
0.021
Incremental Annual Savings ($/SF) $
$ 0.054 $ 0.017 $ 0.009 $ 0.006
Incremental Investment $
$
1.00 $
1.00 $
1.00 $
1.00
Payback (years)
18.5
58.8
111.1
166.7
Lumbee Na>on Economic Summit 2.B Establish Energy Use PaZerns
M O N T H LY K W H U S A G E, P OR TE R S CI E NT I F IC J A N 2 0 1 3 -­‐ A P R 2 0 1 6
2013
2014
2015
2016
16,000
KWH USAGE
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
J AN F E B MAR APR MAY J U N J U L AU G S E P OCT N OV D E C
Lumbee Na>on Economic Summit 2.B Establish Energy Use PaZerns (cont)
CO S T P E R K W H, P O RT ER S CI E NTI F I C
J A N 2 0 1 3 -­‐ A P R 2 0 1 6
$0.40
$0.35
$0.30
$/KWH
$0.25
30%
$0.20
$0.15
$0.10
$0.05
$0.00
2013
2014
Lumbee Na>on Economic Summit 2015
2016
2.B Establish Energy Use PaZerns (cont)
BASELOAD Lumbee Na>on Economic Summit Reduce or Eliminate
Loads
Apply Best Available
Technology at Life Cycle
Approach to Reducing Energy Use
2.B Iden>fy Energy Efficiency Measures 1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
Revalidate size of HeaGng and Cooling Loads Minimize Outdoor Air (DCV) Recover Energy from Exhaust OA economizer for cooling when < 55˚F Tower economizer for winter chilled water Recommission BAS/Controls Reduce lighGng levels Install Occupancy Sensors Change LighGng to Advanced LED technology Design right-­‐sized modular heaGng and cooling equipment Reduce/Eliminate steam use, Change to hot water boilers Use condensing HW boilers Reduce/eliminate air cooled compressors, change to water source Use fricGonless bearing compressors Variable frequency drives for pumps & fans Upgrade to DDC Control Systems Ground Source Heat Pumps 2.C Iden?fy Renewable Energy Opportuni?es
v  Individual homes or businesses find it difficult to reach economies of scale. The balance of system costs for renewable energy are propor>onately less as produc>on size increases. v  A community approach, where we all band together, will be important moving forward. We can only achieve full self-­‐sufficiency when we operate as a corporate whole. With over specializa>on, we have lost our connectedness to the whole. Tribal communi>es represent one of the best models of how this can be maintained and we should build on this. v  As we awaken to the connectedness in all that we do, we should understand that the important thing is gewng to the “DO” – individually take ac>on, and move, collec>vely, up to ever larger scale ac>ons. Be empowered Lumbee Na>on Economic Summit 2.C Iden>fy Renewable Energy Opportuni>es The Energy and Power Industry
v  The power markets are served by three dis>nct types of providers: •  Edison Electric Ins>tute (Investor Owned U>li>es) (EEI) •  Duke Energy •  Dominion NC Power •  American Public Power Associa>on (Municipal U>li>es) (APPA) •  Na>onal Rural Electric Coopera>ve Associa>on (NRECA) •  Lumbee River EMC v  The various systems are interdependent within the groups and among the groups in various ways. •  Long term contracts that fundamentally underpin the economics of power produc>on. •  Spot market pricing for peak periods •  Na>onal, Regional and Local grid inter-­‐>es Lumbee Na>on Economic Summit The Energy and Power Industry
Lumbee Na>on Economic Summit The Energy and Power Industry
v  The US Society/Economy and its energy systems and infrastructure are undergoing fundamental changes at this >me of history. v  Alterna>ve Energy is a disrup>ve set of technologies that are inevitably coming to this market and the process will accelerate. The industry will adapt as LCOE from renewables con>nues to drop. Their survival requires it. v  Challenges and risks (technical and regulatory) abound for the industry: • 
• 
• 
• 
• 
• 
• 
Peak hour costs Distributed Energy Resource Integra>on Renewable Porxolio Standards (12.5% by 2021 for IOUs and 10% by 2018 for COOPs) EPAs Clean Energy Power Plan Future of Carbon Dioxide pricing/tax Coal Ash Safety and Contamina>on Issues Reliability and Resiliency v  Tribes also have the authority to become u>li>es in their own right. This could be disrup>ve as well. The ques>on is: When would this make sense? Lumbee Na>on Economic Summit Lumbee Na>on Economic Summit North Carolina Electric Coopera?ves
•  26 Electric Coops •  Serve 25+% of the NC popula>on and operate in 93 of the 100 coun>es in NC •  They epitomize the “community” ethic •  Each one is a “how to do it” experiment with varying energy programs •  They are partners moving forward – and we can help them as they help us. Lumbee Na>on Economic Summit Coopera?ve Principles
Coopera?ve Values
v  Voluntary Open Membership v  Democra>c Member Control v  Members’ Economic Par>cipa>on v  Autonomy and Independence v  Educa>on, Training, and Informa>on v  Coopera>on Among Coopera>ves v  Concern for Community Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
Lumbee Na>on Economic Summit Self-­‐Help Self-­‐Responsibility Democracy Equality Equity Solidarity Community Energy Systems (CES)
Demand
Demand
Load
Storage
time
Usual
Demand Control
Lumbee Na>on Economic Summit Site Load
Leveling
Utility Peak
Assist
Community Energy Systems (CES)
Site Energies
Site Energy
Energy
Overflow
Site Energy
Loads
Storage
Grid Power
Usual Renewable
Approach
Lumbee Na>on Economic Summit Loads
Grid Power
CES
Approach
Storage
Loads
Grid Power
CES
Future
Community Energy Systems (CES)
Processing / Interconversion
Site Based
Energy
Storage
Loads
Nat. Gas
Cooking
Heating
Nat. Gas
Sewage
Methane
Digestor
Biomass
Alcohol
Fermenting
Engine Fuel Thermal
Gen. Cell Engine
Chiller
Thermal
COLD
Trash
Garbage
Compost
HEAT
Pyrolysis
Chilled
Water
Hot
Water
GeoThm
Snow
Solar
Wind
Passive
Thermal
Heating
PhotoVoltaics
Electrical
Battery
Wind
Generator
Lumbee Na>on Economic Summit Grid Power
Power
Step 2.D: Iden?fy job crea?on opportuni?es
A.  Energy Efficiency Related: Construction
a.  Ground Source Heat Pump Install
b.  Battery Power load shifting
c.  Compressed Earthen Block Homes
d.  Insulated Concrete Homes
e.  Building Energy Efficiency
i.  Energy Audits
ii.  Building Energy Retrofits
iii.  Heating and Air Conditioning
iv.  Lighting
v.  Domestic Hot Water
vi.  Refrigeration
vii. Controls
Lumbee Na>on Economic Summit B.  Renewable “Green” Energy Production
a.  Solar - Photovoltaics
b.  Solar – Thermal
c.  Wind
d.  Biomass Conversion
e.  Geothermal power production
f.  Low Head Hydro
g.  Algae production (fuel)
h.  CO2 capture for green houses
i.  Electrical Storage
Step 2.D: Iden?fy job crea?on opportuni?es
Lumbee Na>on Economic Summit Step 2.D: Iden?fy job crea?on opportuni?es
C.  Salvage and Remediation
a.  Recycling
b.  Tire Recovery
c.  Paint Recycling
d.  Environmental Clean up
e.  CAFO waste processing
E.  Waste Water/Sewage to Biomethane
a.  CAFO waste processing
b.  Municipal Sewage
c.  Municipal Refuse
d.  Residential Septic Systems
G.  Other “Green” Jobs
a.  Compressed Earthen Blocks
Lumbee Na>on Economic Summit D.  “Green” Farming - Food Related Production
a.  Organic Vegetables/Fruits/Grains
b.  Aquaculture
c.  Small/Large Animal Husbandry
d.  Bee Keeping
e.  Hydroponics
f.  Mushrooms/Escargot
g.  Algae production (food)
h.  Permaculture
i.  Floral Production
F.  Landscaping
a.  Soils
b.  Composting
c.  Vermiculture
d.  Nursery Production
e.  Community Gardens
One Opportunity: Animal Waste to Methane
•  Agricultural and food processing industries in the United States produce 300 million tons of organic wastes/year. •  Properly trea>ng these waste streams has become a challenge currently being addressed by the US EPA. •  Anaerobic digesters (AD) are successfully implemented at waste water treatment plants (WWTPs). Of 14,780+ municipal waste water treatment plants serving 226+million people in the USA, 3,500 (23%) have opera>onal AD plants. WWTP now expect AD to deliver “Net-­‐Zero” energy for WWTPs. •  The EPA found that out of 67,000 pork and 51,000 dairy opera>ons in the USA There are only 260 known AD systems: only 0.22% of all pork and dairy opera>ons. •  Germany has 6800+ AD systems providing power for millions of homes. Incidentally, Germany is the world leader in solar electricity as well – with a solar climate similar to Sealle WA. Lumbee Na>on Economic Summit EPA Wants More Animal Waste to Methane
v  For the Environmental Benefits •  Improves odor control •  Water Quality Protec>on: AD reduces impacts of bacteria that enter surface waters, reduces Biological Oxygen Demand, and minimizes poten>al for nitrifying the local water table. •  Greenhouse Gas Reduc>on: CAFOs generate methane – a more potent greenhouse gas than carbon dioxide v  For the Economic Benefits •  U>lity costs avoided and/or Sale of energy •  Reduced disposal costs •  Valuable co-­‐products •  Renewable energy credits and greenhouse gas markets Lumbee Na>on Economic Summit North Carolina Animal Waste Opportunity
Swine
Layers
Broilers
Turkeys
National Animals
Rank
(millions/yr)
2
10.1
9
12.7
5
149.9
2
17.9
Farms
2836
3736
1879
846
Source: Market Opportuni>es for Biogas Recovery Systems at U.S. Livestock Facili>es, US EPA-­‐ AgStar, November 2011, using 2007 data. Lumbee Na>on Economic Summit NC Swine Concentra?on and Tribal Areas
Lumbee Na>on Economic Summit Biogas Energy Recovery System
From: ROESLEIN ALTERNATIVE ENERGY, ARM Conference, April 2016 Lumbee Na>on Economic Summit Ag Based Energy System Flow Diagram
Woody Biomass
Ag Crop Residue
Ag Spoilage
Food Waste
Waste Paper
CAFO Waste
Power Purchase
Agreement
Hog
Poultry
Beef
Methane Digester
Water
BioGas
Motor Generator
Recovery,
Storage and
Clean Up
(CHP)
Nutrient Rich
Supernatant
&
Sludge
Compost,
Crop
Waste
Algae Production
Bio Oils
Lipids Recovery
Aquaculture
Live Fish
Fish Fillets
to Local
Markets
Hydroponics
with Enhanced
CO2
Environment
Fish Waste and
Fish Production
Offal
Electricity
first to Local
Micro-Grid
[CAFO and AD
Operations]
Thermal Energy
to Captive
Internal Loads
and Secondary
Power Prod.
Fertilzers, Soil
Amendments to
Markets
Renewable
Energy Credits
Produce
to Local Markets
Lumbee Na>on Economic Summit Bio Oil
to Liquid Fuels
and Chemical
Precursor
Markets
Other Green Ag Opportuni?es
Lumbee Na>on Economic Summit Other Green Ag Opportuni?es
Lumbee Na>on Economic Summit Economic Benefits from Ag Energy Systems
v  Local mul>plier effect from jobs created in the community. v  Improved balance of payments with other communi>es and the State from cash flow captured. Reduced Costs for: •  Energy Saved •  Electric •  Thermal • 
• 
• 
• 
• 
Potable Water Sewer Disposal Landfill Disposal Equipment Maintenance Environmental Remedia>on Lumbee Na>on Economic Summit Income From: •  Energy Produced •  Electric •  Thermal •  Co-­‐Products Generated • 
• 
• 
• 
Fish Organic Food Crops (hydroponic) Organic Food Crops (field) Compost related products Step 3: Secure Funding
v  The first source of funding is the actual energy and other associated savings. North Carolina has PACE enabling legisla>on. This Property Assessed Clean Energy program used energy (and other) project savings as collateral. Projects qualify if annual energy savings exceed loan principal and interest payments. Perhaps NC-­‐CIA can open a tribal program in North Carolina. Funds could be managed by Lumbee Guaranty Bank. v  NC has a state revolving loan program for energy efficiency and renewable energy investments (HB 1389, 2009 & HB 1829, 2010). v  Tribes could sell bonds (state and federal tax free exemp>on may be possible) or use reserve funds to back loans. Lumbee Na>on Economic Summit Step 3: Secure Funding (cont)
v  Coordinate and redirect federal and local assistance resources: •  Low Income Home Energy Assistance Program (LIHEAP) •  The Hea>ng Assistance Program (HAP) •  The Crisis Interven>on Program (CIP) •  Duke Energy’s Helping Home Fund •  Lumbee River Electric Member Coopera>ve has 6 rebate programs and loans. v  Tribal Contracts for new home construc>on and remodeling can be redirected to ensure that all new construc>on meets economic criteria. Tribal website currently has two RFPs for 9 new homes – these should become examples of how homes can be built under this new paradigm. Note: Catawba County, NC, has new Net Zero Ready homes cer>fied. Lumbee Na>on Economic Summit Step 3: Secure Funding (cont)
v  The Lumbee Tribe manages $1.1+ million in Federal energy and home repair funds annually v  This includes $900,000+ for LIHEAP alone v  This is a 20 year life cycle cost of $18 Million v  Once a strategic plan has been developed. Let’s generate a proposal that requests two thirds ($12 M) of this as upfront funding with the expecta>on that it can be eliminated. Lumbee Na>on Economic Summit Step 3: Secure Funding (cont)
v  The USDA has a large number of grant, loan, and technical assistance offerings: •  Rural Energy for America Program (REAP) •  Grants up to 25% (max of $250k for energy efficiency and $500k for renewable energy) •  Loans up to 75% (max of $25M) • 
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Housing (single family ownership, rental, mul>family) Home Repair Grants and Loans Value added producer grants Rural Business Development Grants (RBDG) Business and Industry loan guarantees Rural Economic Development Loans and Grants (REDLG) Value Added Producers Grants (VAPG) Community Facility, Water, Waste, and Solid Waste Grants and Loans USDA Strategic Economic and Community Development Program Lumbee Na>on Economic Summit Step 3: Secure Funding (cont)
v  The DHUD •  Indian Community Development Block Grant Program •  Indian Housing Block Grant Program •  Choice Neighborhoods Implementa>on Grant Program •  The HOME Investment Partnership Program v  The DOE •  Inter-­‐Tribal Technical Assistance Energy Providers Network •  Project Development for Pilot and Demonstra>on Scale Manufacturing of Biofuels, Bioproducts, and Biopower. v  The EPA •  Source Reduc>on Assistance Grant Program •  Waste Water Treatment Grants and Loan Programs Lumbee Na>on Economic Summit Step 3: Secure Funding (cont)
v  The BIA has grant and loan op>ons •  Energy and Mineral Development Program •  Tribal Energy Development Capacity Program v  In general Federal Funding has mul>ple advantages •  There are tribal set aside grants •  Most federal grant for non-­‐tribal RFPs require significant cost match •  Most federal grants for tribal RFPs secure 100% federal funding v  Work to enhance and target already robust local federal funding efforts – focusing on energy solu>ons. Lumbee Na>on Economic Summit Step 4: Measurement and Verifica?on
BASELOAD Lumbee Na>on Economic Summit Step 4: Measurement and Verifica?on Donald Danforth Plant Science Center
2005 Daily Gas Usage
180
y = -1.7637x + 178.6
160
y = -1.0958x + 131.32
140
y = -1.0762x + 111.38
120
Equations of Use
MMBTU
100
80
60
40
20
0
0
10
20
30
40
50
60
70
80
90
100
Daily Average Temperature
PreChange
New Air Flow
New Boilers
Linear (New Air Flow)
Linear (New Boilers)
Linear (PreChange )
Lumbee Na>on Economic Summit Energy Solutions, Inc © 2005
Step 4: M and V: Results and Value
Donald Danforth Plant Science Center
Energy Savings Cashflow Analysis
August 2010
$1,400,000
$1,272,000 saved
since 02/2005
$1,200,000
$1,000,000
September 2006
$800,000
$768,800 total
net savings
$600,000
$400,000
$89,000 Spent
Prior to 02/2005
$503,000 spent
since Start
$200,000
In vested
Saved
Lumbee Na>on Economic Summit Dec-10
Aug-09
Apr-08
Nov-06
Jul-05
Feb-04
Oct-02
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VISION/QUEST
v  Work locally first on tribal and tribe member proper>es and businesses: v  Invest in energy efficiency to at least a 10 year payback v  Invest in renewable energy if it has a < 15 year payback v  Use the above as work force development opportuni>es and create fun and meaningful jobs in rural America. v  Once tribe has secured Net Zero Energy, turn and look out to the rest of the country – go a[er that $2+ trillion market and grow the business. v  Remember that it will require all manner of collabora>ons: the tribe, the university, farmers, local industry, the state and federal government, and u>li>es. Work to create win-­‐win-­‐win solu>ons. Lumbee Na>on Economic Summit Next Steps
v  Educate the community to the possibili>es – we need everybody v  Sell the idea, these concepts need champions v  Develop a team to deliver on the promise. v  Roll up our sleeves and go to work Lumbee Na>on Economic Summit Thank You! QuesGons? Lumbee Na>on Economic Summit