This page last reviewed September 21, 2017

Dairy and Livestock Subgroup #2: Fostering Markets for Digester Projects

Subgroup #2 Mission Statement

Establish a roadmap, attentive to the SB 1383 statute dates of July 1, 2020 and January 1, 2024, to significantly expand the number of livestock digester projects in California that support the state's climate and air quality goals. The roadmap will identify both commercial ready and emerging technologies and approaches for converting manure and digestate into energy and other value added products. This will be accomplished by assembling a comprehensive overview and discussion of dairy digester projects, including identification of potential impacts, benefits, and barriers to scaling up digester projects. Through  the process, the subgroup will bring state agencies and stakeholders together to identify and recommend the necessary (1) infrastructure policies, (2) procurement policies, (3) funding sources, and (4) environmental policies to achieve a sustainable model for the dairy and livestock industry.

Key Topics

• Identification and improved integration of existing public policies, incentives and programs that support dairy digester projects

• Identify the infrastructure policies needed to support the rapid development of dairy digester projects.
• The CEC, in consultation with ARB and the CPUC, is to establish recommendations for the development and use of renewable gas, including biomethane and biogas as part of its 2017 IEPR (SB 1383)
• ARB, in consultation with the CPUC and CEC shall establish the energy infrastructure development needed to encourage dairy biomethane projects (SB 1383 - by January 1, 2018)
• The CPUC is to direct gas corporations to implement not less than five dairy biomethane pilot projects to demonstrate interconnection to the common carrier pipeline system. Gas corporations may recover in rates the reasonable cost of pipeline infrastructure (SB 1383)

• Address the need for long term energy procurement contracts for digester projects
• ARB, in consultation with the CPUC and CEC, is to establish energy procurement policies needed to encourage dairy biomethane projects (SB 1383 - by January 1, 2018)
• ARB shall develop a pilot financial mechanism to reduce the economic uncertainty associated with the value of environmental credits, including credits pursuant to the Low-Carbon Fuel Standard regulations from dairy-related projects producing low-carbon transportation fuels (SB 1383)

• Address the need and requirement(s) for additional incentive funding to support the rapid development of dairy digester projects 
• Address opportunities and conditions required for long-term financial viability and investment

• Address emissions and potential emission reduction opportunities for GHGs, criteria, toxic, and noxious pollutants

• Identify permitting barriers for sustainable dairy digester projects and recommendations to overcome them

• Tradeoffs between different biogas uses, such as transportation fuel and electric power generation
• Actions needed to further develop markets for vehicle fuel, energy, soil amendments and other products derived from the digestion process

Deliverables

• Summary of Value Added Products from Digesters: Identification of key current and emerging technologies and approaches for converting manure and digestate into useful products including fuel/energy. The assessment will characterize products by technology readiness and outline general opportunities and issues.  
• Pipeline-Injected Biomethane: Recommendations that can increase pipeline injection of biomethane, including market development incentives, cluster identification, policy development, regulatory or legislative action, removing barriers, and support the SB 1383 pilot project process.
• Electricity Generation and Grid Interconnectivity: Recommendations for cost-effective ways to further reduce criteria pollutant emissions for on-site electricity generation projects, including market development incentives, policy development, removing barriers, and regulatory or legislative action.
• Transportation Fuel Markets: Recommendations to increase biomethane access to vehicle fuel markets, including market development incentives, policy development, regulatory or legislative action, removing barriers, and strategies to identify potential fleets and fuel networks/retailers.

Subgroup Members 

Public Meetings

Date	Time	Location	Materials and Links
October 12, 2017	12:30 PM – 4:30 PM	CA Department of Food and Agriculture Building Main Auditorium 1220 N Street Sacramento, California  95814	TBD
September 7, 2017	12:30 PM – 4:30 PM	CA Department of Food and Agriculture Building Main Auditorium 1220 N Street Sacramento, California  95814	Public Notice  Agenda Subgroup Meeting Slides Ruan Presentation Sustainable Freight Presentation AMP Presentation CALSTART Presentation Part 1 Part 2 ICF Presentation LCFS Presentation GNA Presentation  Trillium Presentation  Subgroup Barriers/Opportunities Matrix
August 10, 2017	1:00 PM – 5:15 PM	Cal/EPA Building Coastal Hearing Room 1001 I Street Sacramento, California  95814	Revised Public Notice  Revised Agenda  Proposed Mission Statement Edits  Subgroup Presentation  SoCalGas Presentation  PGE Electric Interconnection Presentation  PGE Gas Interconnection Presentation  CVRWQCB Presentation  Dairy Sector Presentation  CalBio Presentation  Maas Energy Presentation
June 26, 2017 (Kickoff Meeting)	10:00 AM – 12:00 PM	Cal/EPA Building Coastal Hearing Room 1001 I Street Sacramento, California  95814	Public Notice Agenda Goals, Ground Rules, and Guiding Principles ARB Presentation Subgroup #2 Presentation

Comments Docket

Staying in Touch

To receive electronic notices of future meetings and availability of materials related only to Subgroup #2 (Fostering Markets for Digester Projects), you can sign up with the subgroup list server at: https://www.arb.ca.gov/listserv/listserv_ind.php?listname=dsg2