1. Developing a Wood Waste Market in South Carolina South Carolina Biomass Council March 16, 2015

2. Presentation Background Findings Proposal Next steps

3. EDF plants Have Power Purchase Agreement with Santee Cooper – – Monetize tax credits – No wood purchasing experience – Wanted to test out options for renewables Woody biomass is able to ramp up and down (“turndown”), and is dispatchable Biomass-to-energy is not determined yet to be acceptable to EPA 111D options

4. EDF plants 2 identical plants – Allendale (Fairfax) – Dorchester (Holly Hill/Harleyville ) Each uses 18,000 tpm (216,000 tpy) of fuel wood Supply at Dorchester has been more difficult to get going – Reasons? SC Forestry Commission and studies said the wood supply was there.

5. Kress Theory on Fuel Wood Paper mills developed a fuel wood market that is in balance with their need – Bark, residues, etc are harvested only as much as needed to supply CHP needs of the nearby mills – This is not the focus of a paper mill – Paper mill has developed relationships with their pulp wood suppliers to also supply (premium?) fuel wood – Their real concern is pulp wood

6. Kress Theory on Fuel Wood (cont’d) There is an additional supply of fuel wood that can be developed when a demand appears – Land clearing (contractor is paid to remove trees) – Leftovers from logging (have to be removed to replant) – Fire hazard wood – Thinnings (normal forest operations) – Tree trimming crews – Ice storm wood –was picked up and ground up. In short - – Any wood that has some work (cost) already “contributed” which makes it cost-effective to collect and deliver.

7. Wood products http://www.forest2market.com/blog/dispelling-the-whole-tree-myth-how-a-harvested-tree-is-used http://www.state.sc.us/forest/lecom.htmhttp://www.state.sc.us/forest/lecom.htm, modified Best Use (Product) by Tree Diameter Veneer – 16”+ Diam BH Sawtimber – 14”+ DBH Chip-n-saw – 10-13” DBH Pulpwood chips – 6-9” DBH - must be clean of bark, “clean chips” Fuel wood chips – 6” or less, bark, needles and small limbs allowed, “dirty” chips Grindings – anything woody or leftover that can be ground

8. Fuel wood from waste products Harris Report on Biomass (‘04) Logging residues4.4 mil ton Precommercial thinning8.6 mil ton Mill residues1.6 mil ton Urban wood waste0.6 mil ton Urban wood waste0.6 mil ton Commercial thinning5.3 mil ton Southern scrub oak0.05 mil ton Agricultural residues1.1 mil ton 21.65 mil ton Adams Report on Biomass (’07) Logging residues4.5 mil tons Mill residues6.2 mil tons Standing residuals3.3 mil tons after harvest Urban wood waste2.1 mil tons Urban wood waste2.1 mil tons Precommercial thinning0.6 mil tons 16.7 mil tons The supply will also respond to demand, either as elasticity with price or as “turning trash into cash”, as systems develop to aggregate wood waste. The wood pellet (export) market can also utilize these same sources.

9. Findings Ice storm in spring 2014 – 131,000 tons unable to use at EDF Small pieces of plastic from bags Other fuel wood users could use – – Hauled further away Some wood chips burned A lot was landfilled Permitting issue Not good coordination between air and solid waste since burning on ground was allowed.

10. Findings Charleston Co LF – Produces 5,500 – 6,000 tpm of mulch, of which they sell only a small amount. – Either picked up curb-side or dumped with tipping fee. – Estimate that 80% could be screened and supplied as fuel wood = 4,500 tpm. Charleston Co area – A supplier offered to obtain 5,000 tpm of pallet wood from manufacturers and grind, – incl Boeing and others as an extension of program to handle waste streams. (Has previously done this for BMW, JCB (Savannah) and others, as Downstream Recycling). This equals 9,500 tpm or over half of what EDF plant uses. Would keep 114,000 tpy out of landfills.

11. What are the hurdles? Producing a product that DHEC accepts as fuel wood Harmonizing permitting between air and solid waste Defining harmless contaminants (EPA has done similar work around NHSM’s) (de minimus levels?) Receiving control of Urban wood waste vs. yard waste vs C&D clean wood Better market information and clearinghouse - suggestions for publicizing or listing buyers/sellers/prices? In an efficient market, the fuel wood should go to the nearest user.

12. EPA’s related activity 3 Relevant Sections 1.Revised definitions Clean Cellulosic Biomass – includes untreated wood pallets, wood debris from urban areas, not intended to be exhaustive Contaminants - changed “any contaminant that will result in emissions” Resinated Wood – changed to be more representative 2.Contaminant Legitimacy Criterion for NHSM Used as Fuels 3.Categorical Non-Waste Determinations for Specific NHSM Used as Fuels (e.g., resinated wood)

13. Proposal Run pilot project with Bees Ferry/Chs Co Landfill with a team (DHEC, RMDAP, Chas Co) – Grind urban wood waste with different set of screens – Screen out fines to use for mulch – “Qualify” the fuel wood as acceptable for use at all nearby fuel wood users – Make recommendations for modifying receiving if needed – Harmonize definitions between air/solid waste to guide wording for use in permitting applications – Develop best practices as model for other projects Could simultaneously run pilot project with C&D wood waste and/or pallet wood waste to establish procedures for producing an acceptable fuel wood product.

14. Coordination Oversight Team David LangstonEPARCRA NHSM contact Stacey WashingtonDHECSolid Waste Mgmt Patrick BrownsonDHECSolid Waste Mgmt Veronica BarringerDHECAir quality Justin KoonDHECEmergency preparedness and solid waste permitting Heather CeronEPAAir quality Ronnie GrantSonocoRMDAC Chair Liz Kress SCBC/Santee Cooper Renewable Energy Chantal FryerRMDACSr. Mgr RMDAC KapstoneDuane Mummert Jeffrey Custer EDF - HarleyvilleRalph Smith Brewer Properties, LLC (Roseburg Forest Products ) Ellen Porter Council EnergyJames Council RockTenn International PaperDerrick Dease Simpson LumberShirley Collenton SonocoRonnie Byrd Lowcountry BiomassRhett Harwell Fuel Wood users for trials Art BraswellSolid Waste Director Harvey GibsonLandfill Superintendent Robert LawingChas Co Engineer Douglas Merritt Specialist - Peninsula Equipt. Pilot Run – Site Coordination Lowe SharpeSC Forestry Commission Responsible for urban forestry initiatives Jay BassettEPAChief, Mat Mgmt Section - RCRA Kent ColemanDHECDir - Solid Waste mgmt Stakeholders /Observers (for information)

15. Proposal – other ideas Develop a map and database of all fuel wood users Develop map/database of potential supply (C&D landfills, residential wood waste to landfill) Establish a clearinghouse or bulletin board for wood waste supply/demand Work with state emergency procedure team for next time there is a Hugo or Ice Storm – – Get procedures right – Make users and their receiving rules known up front – Hold workshop? – Georgia has done this

16. Biomass /Fuel wood users

17. Benefits Reduce landfill volume Improve revenues and net income to counties Improve capture of waste wood for beneficial use – less ugly piles, less dumping Avoided CO 2 Retain an option to generate electricity from SC fuel (energy independence) Supports and builds on our forestry industry Increased jobs and income for SC