This page last reviewed July 21, 2017

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

Subgroup #2 Mission Statement

Establish a roadmap to significantly expand the number of livestock digester projects in California that support the state's climate and air quality goals. 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, and support for the SB 1383 pilot project process.
• Electricity Generation and Grid Interconnectivity: Recommendations that aid in overcoming barriers to on-site electricity generation, including market development incentives, cluster identification, policy development, regulatory or legislative action, and that explore the cost-effective ways to further reduce emissions.
• Natural Gas Vehicle Fuel Markets: Recommendations that aid in overcoming barriers to increased biomethane access to CNG/LNG vehicle fuel markets, including market development incentives, policy development, regulatory or legislative action, and strategies to identify potential CNG/LNG fleets and fuel networks/retailers.

Subgroup Members 

Public Meetings

Documents and Files

• Public Notice for Kickoff Subgroup #2 Meeting
• Agenda for Kickoff Subgroup #2 Meeting
• Subgroup Goals, Ground Rules and Guiding Principles
• Subgroup #2 Presentation
• ARB SB 1383 Dairy and Livestock Subgroup 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