This item was brought before the supervisors by Supervisor Rosemarie Smallcombe.
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The following are excerpts from the discussion.
Supervisor Rosemarie Smallcombe said the purpose of the grant is to provide funding for the planning, acquiring permitting, technical documentation, CEQA compliance, etc.The Mariposa Biomass Project began with the intent of exploring the question if it was economically viable to remove forest waste from the overburdened forests and private lands.
Responding to the LA Times article about biomass Supervisor Smallcombe said there is a substantial difference between the industry economic model that was developed to deal with agricultural waste. It is based on old time technology. The plants that were set up for this type of waste were set up to provide 20-30 plus megawatts of power generation.
The Mariposa Biomass project would be based on sustainably harvested forest biomass. A 1/2 Megawatt to a 3 Megawatt facility is in the scope of the Mariposa Biomass Project.
A project that would produce 1 megawatt would generate around $1M of revenue. A 2.4 Megawatt facility would bring dollars to the county along with jobs.
In 2012 California passed SB1122 that established favorable rates for small scale rural biomass facilities based on forest woody material.
Under Public Comment, Jay Johnson, CAO for the Mariposa Biomass Project said they have been working for over a year on this project and what they need is a property that they can build a plant on. They are currently working on a grant for funding of the permit for the project. It would make their case look better if they could say they had a site for the project. He said one of the questions he has heard is what happens if logs end up on the site and the project goes away? Mr. Johnson said that would have to be in the lease arrangement. A bond would have to be posted. Concerns over a water tank and other concerns would all be in the lease arrangement and everything else would be subject to the laws and regulations of Mariposa County.
Supervisor Kevin Cann said the listed project costs for this phase is $238,000 and the grant request is for $147,000 - where is the balance of the money coming from? Jay Johnson said the money would come from in-kind contributions. The time they put into the project can be considered as in-kind funds.
Addressing a question from Supervisor Marshall Long, Supervisor Smallcombe said there would be multiple storage areas around the county for the logs. There may be county, state or federal limitations on the storage areas. The grant request is for a single log deck. Not every log that would be at the proposed log deck in Bear Valley would be used for the biomass facility. Supervisor Long would like the grant request to include additional log decks. The Mariposa Biomass Project CAO said it takes time and money for the CEQA and that is why they selected just one site because the grant does not have enough money. Also no other sites have been identified. So far it looks unfeasible to use private property for a log deck.
For right now only Bear Valley has been looked at as the site for the log deck. Initially they had looked at the Mariposa County Landfill but gave up on that idea due to the trucks bringing the logs in would have to use a different road outside the facility that potentially would require easements. Jay Johnson said the Public Works Director did not want to change the permits that would let the trucks use the current roads in the landfill.
Supervisor Merlin Jones asked if a feasibility study had been performed for the Biomass plant. Mr. Johnson said a fuel study and a performance study were done on the operating costs. Mr. Johnson said the plant will not make money or break even because the revenue from the power generation does not equal the fuel, plant and labor costs. If they could sell biochar they could generate additional revenue but that market has yet to be established. So they are seeking a major grant to offset the costs of the plant so the power generation would put the plant in a break even or profitable position.
If they do not get the grant the project will not go forward.
They are not going to build anything that will lose money. This grant to build the facility is a separate grant from the $147,000 grant. The North Fork facility received a $5M grant. If the Mariposa Biomass Project could get $4M to $5M the project would pencil out without having to sell biochar.
Keith Williams, a resident of Bear Valley said if we get locked in with a grant then we tell the folks that a biomass plant is coming. He is concerned about noise from the plant and hopes the citizens get to weigh in on the project.
Answering a question by Supervisor Jones, Mr. Johnson said who would own the biomass plant has not been decided. There are a couple of developers for the site but one has shown interest in building, owning and operating the facility so they are leaning to go with that developer. It will be privately owned. Right now no county resources would be required at the Bear Valley site.
Construction of the plant would take 9-12 months. Supervisor Jones thinks that would be a very aggressive timeline. Supervisor Jones also said he would not support the project without a bond.
If they do not get a bond the project will not go forward.
Supervisor Jones said the life span of the beetle trees range from 6 months to two year maximum and then the logs are worthless and a rotten mess. He does not want the county to be stuck with a mess.
Supervisor Jones said before he could support anything in Bear Valley a public hearing would have to be held.
Supervisor Smallcombe reminded the supervisors that this grant application is focused on planning. If the funding is approved then there would be a research phase with questions brought before the BOS. Right now they are focusing on the log deck in Bear Valley because it is not feasible at the Mariposa Landfill.
Supervisor Long mentioned that the BOS is being told that the CEQA process is good enough for a log deck/biomass project but a mining project requires a Conditional Use Permit (CUP).
Supervisor Carrier said what is before the BOS is a letter of support for a log deck/biomass facility with a location that is not determined. He sees the facility as not just a storage place, but as a place to burn the logs right now.
Supervisor Jones said after seeing what happened with the cost of the fire stations he would like to see a full feasibility study performed. He supports looking at State lands for storage.
Supervisor Cann said the BOS is far from signing an acceptable lease on the Bear Valley property as there are so many unknowns.
Supervisor Long said he supports the concept of biochar and biomass, but Bear Valley is not that close and he prefers the landfill and the folks in Bear Valley will get their say.
Supervisor Cann said he is for the grant as long as it does not specify a guaranteed site. Supervisor Jones agrees.
The Supervisors approved the letter of support 5-0 with the following conditions: no county resources being used and no site specific location.
Information from the supervisors packet:
RECOMMENDATION AND JUSTIFICATION: Approve a Letter of Support for a Mariposa Biomass Project Grant Application and Authorize the Board of Supervisors Chair to Sign the Letter.
The Mariposa Biomass Project is a Public Benefit Corporation, incorporated in California as a 501(c)(3). The Mariposa Biomass Project has secured funding from the U.S. Forest Service, through the Mariposa County Fire Safe Council (MCFSC), for a fuel availability study. The study report was accepted in early September.
The Mariposa Biomass Project is seeking funding for activities necessary to plan for the establishment of a log deck and, subsequently, a biomass facility in Mariposa. The effort funded by the grant will include completion of site control, site planning and design, acquiring required permitting, technical documentation, California Environmental Quality Act (CEQA), and completion of a system impact study that will allow the facility to tie into the existing electrical grid. Mariposa County will bear no responsibility for compliance with the grant since the applicant will be the Mariposa Biomass Project. The fiscal agent for the effort will be the Mariposa County Resource Conservation District. Should Mariposa Biomass Project receive grant funding and proceed with the log deck, the Project can relieve some of the risk that would otherwise be borne by the County. The log deck and a biomass facility are two proposed solutions to a problem that requires multiple solutions. Both are identified solutions in the Governor's Proclamation dated October 30, 2015. Wood storage is an immediate need, biomass facilities are longer term solutions but necessary to address the public safety risk posed by the dead and dying trees in Mariposa County.
The Mariposa Biomass Project is requesting that the Board of Supervisors approve a letter of support for the grant application and authorize the Board Chair to sign it.
BACKGROUND AND HISTORY OF BOARD ACTIONS:
The Board has approved letters of support in the past on projects that will ultimately benefit the citizens of Mariposa County and approved a similar letter of support for another grant application for Mariposa Biomass Project in June 2015
ALTERNATIVES AND CONSEQUENCES OF NEGATIVE ACTION:
Do not approve a letter of support for the grant application. Individual Board members may write their own letters of support, which may not carry the weight of a support letter endorsed by the entire Board. Failure to approve and sign the attached letter will decrease the probability of success for the grant application and may well eliminate one solution to the County's ever expanding local disaster which impacts most Mariposa citizens and many visitors to the County.
MARIPOSA BIOMASS PROJECT ABSTRACT
PROJECT TITLE:
MARIPOSA BIOMASS PROJECT
LENGTH OF PROJECT:
ONE YEAR (JUNE 1, 2016-JUNE 1, 2017)
TOTAL PROJECT COST: $238,000 (Grant Request is $147,500)
PROJECT ABSTRACT: This project will complete the work necessary for development of a community biomass energy facility, as well as a log deck, in Mariposa, Calif. This will include completion of site control, site planning and design, acquiring required permitting, technical documentation, CEQA, and completion of a system impact study that will allow the facility to tie into the existing electrical grid. The biomass energy facility will have a capacity of 1-2MW to take advantage of California legislation (SB 1122) that supports renewal biomass energy. The small community-based facility will utilize 16,000 BDT of biomass per year from a 50 mile radius feedstock sourcing area, with 80% from eligible parts of the Stanislaus National Forest, Sierra National Forest and the Bureau of Land Management, according to a fuel availability study completed in August, 2015 by TSS Associates. Forest-sourced biomass would come primarily from areas designated as high fire hazard. The project would generate approximately 15-24 jobs, some of which would be for facility operation and the rest from jobs required to process and transport biomass to the facility. The project will be managed and directed by a team of experienced professionals from the Mariposa Biomass Project and the Mariposa County Resource Conservation District.
