Biopower comprised approximately 1.6% of total U.S. electricity generation in 2014. When accounting solely for renewable energy sources, biopower constituted close to 12% of U.S. renewable electricity generation in 2014. Congress may debate the future role for biopower in the U.S. electricity portfolio, and as such it may consider whether biopower requires new national policies or incentives to further encourage its use or if its use should be diminished. Like other power sources, biopower has its advantages and disadvantages. With sufficient feedstock supplies, among other things, a biopower plant can provide firm power for baseload needs. Further, it is not clear if biomass supplies exist at a level that is palatable to the biomass-producing communities, the electricity industry, and the environmental community. These issues contribute to uncertainty about the biopower market. Wood Pellets

Interest in one particular type of woody biomass feedstock—wood pellets—has increased over the last few years, mainly due to international demand for this commodity. There are concerns about the sustainability and environmental impact of an expanding wood pellet market. For instance, some environmental groups argue that increased wood pellet production will destroy ecosystems and incentivize conversion of natural forests to plantations, among other things. Moreover, possible energy and environmental policy changes (e.g., any new energy bill, the Environmental Protection Agency's [EPA's] Clean Power Plan [CPP], state renewable portfolio standards) could impact wood pellet production and export. Federal Support

The federal government supports biopower with multiple initiatives including tax incentives, grant programs, research and development efforts, and more. Federal tax credits in lieu of a portion of the traditional bond interest result in a lower effective interest rate for the borrower. The U.S. Department of Energy (DOE) reports the bonds can be used to produce electricity from renewable energy sources, among other things. The CPP establishes regulations that would reduce carbon dioxide (CO 2 ) emissions from existing fossil fuel-fired electric power plants. States are required to devise a plan that allows them to reach a state-specific CO 2 emission reduction goal by 2030. States have various options to reach this goal—including with the use of renewable energy (e.g., biopower)—based on guidance provided by the EPA. Given implementation of certain environmental standards for biomass feedstock cultivation and biopower plants, some in the environmental community might support certain forms of biopower, especially if there is monitoring of land-use, biodiversity, and GHG emission reduction impacts. However, various organizations have expressed opposition to biopower. A sustainable supply of biomass feedstocks would be necessary for biopower growth. Some have argued that regulatory uncertainty has contributed to the reluctance to develop biopower (e.g., EPA's CPP). In addition, there is no federal mandate requiring the production of biopower, although 29 states have implemented state renewable portfolio standards that include biopower. For example, grants may be rendered to an entity conducting research on advanced biomass gasification and combustion to produce electricity (§307(d)(2)(e)); related research in advanced turbine and stationary fuel cell technology for production of electricity from biomass (§307(d)(2)(f)); biomass gasification and combustion to produce electricity (§307(d)(3)(A)(v)); and any research and development in technologies or processes determined by the Secretaries, acting through their respective points of contact and in consultation with the Biomass Research and Development Board (§307(d)(4)).
Biopower—a form of renewable energy—is the generation of electric power from biomass feedstocks. In 2014, Biopower comprised about 1.6% of total U.S. electricity generation and accounted for close to 12% of U.S. renewable electricity generation. Its advantages include a potential for baseload power production, greenhouse gas emission reduction, and use of renewable biomass feedstock, among other things. Its disadvantages include uncertain sustainable feedstock supply and infrastructure concerns, among other things.
Recent developments have prompted renewed interest in biopower. For instance, some stakeholders are concerned about the treatment of biopower by the U.S. Environmental Protection Agency (EPA) for the Clean Power Plan (CPP). The CPP—which was granted a stay by the Supreme Court on February 9, 2016—establishes regulations that would reduce carbon dioxide (CO2) emissions from existing fossil fuel-fired electric power plants. . States are required to reach a state-specific emission reduction goal by 2030 using various options—including biopower—based on guidance provided by EPA. EPA has struggled with accounting for greenhouse gas emissions from bioenergy for various reasons, and it is not clear if this struggle will continue throughout the implementation of the CPP. Further, international demand for wood pellets—primarily to satisfy European Union renewable energy mandates—has increased significantly. This development has prompted environmental organizations and others to express concern about the harvest of increasing amounts of biomass and about possible increases in greenhouse gas emissions from the combustion of wood pellets to produce energy. By contrast, some in the forestry industry and the wood pellet industry argue that the international demand presents another market opportunity, that measures are in place to ensure a sustainable biomass feedstock supply, and that biopower can result in lower greenhouse gas emissions.
The future contribution of biopower to the U.S. electricity portfolio is uncertain. Challenges to biopower production include regulatory uncertainty (e.g., EPA's CPP), market fluctuation (e.g., natural gas prices), conversion technology development, and tax uncertainty (e.g., extension or termination of renewable energy tax credits), among other issues. Some argue that a comprehensive energy policy focused on renewables could boost biopower production efforts, especially if the policy includes a renewable portfolio standard—a mandate that requires increased production of energy from renewable sources. There is no federal renewable portfolio standard, and the last Congress to robustly debate the issue was the 111th Congress. However, 29 states have established renewable portfolio standards, which vary dramatically from state to state. Current federal support for biopower exists in the form of loans, tax incentives, grant programs, and more.