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Butte County, California

The Butte County, California, BDO Zone for Woody Biomass is rated ‘BBB’.

Rating Issue Date: April 24, 2024.

‘BBB’ ratings denote good prospective viability of Feedstock Supply and Infrastrcuture, and expectations of risk are currently low in the Zone. Capacity to support new biobased plant operations is considered adequate.

BDO Zone Rating

BBB

Butte County, CA, BDO Zone Overview

Feedstock quantities are expressed in bone dry tons per year (bdt/yr), while feedstock costs are expressed in USD ($). Maximum transport distance is based on a 75-mi driving distance from the center point (Oroville, CA).

BDO Zone Assets:
  • 223,000 bdt/yr of woody biomass available at low-risk.
  • Access to rail and seaports for potentially cost-efficient transportation of feedstocks and final products.
  • Low risk of competition due to limited commercial market for small-diameter trees.
  • Potential access to large quantities of fuel reduction and fire-damaged salvage wood.
BDO Zone Liabilities:
  • Drought and wildfire risk impacting the quality of available biomass.
  • California’s absence of pulp & paper industries leads to limited small-diameter tree harvesting and artificially low prices for forest residues, sustained by wildfire mitigation grants.
  • High cost of living and tight real estate market presents challenges for attracting labor.

Infrastructure

Oroville Biomass Facility (Former POPI Site): Overview and Strategic Plans

Facilities Overview:

The Oroville Biomass Facility, formerly known as the Pacific Oroville Power Inc. (POPI), spans a 43.29-acre site located at 3050 South 5th Avenue, Oroville, Butte County, California. The facility includes various structures such as boilers, chip and fuel storage areas, offices, and the main power plant. Constructed in 1984, the biomass power plant is currently vacant but partially leased for forest debris processing and agricultural activities.

Strategic Future Plans

MRJD, the full owner of POPI, is exploring a rebranding initiative and seeking a robust partnership to operate the biomass power plant. The company is also considering innovative energy and resource solutions, including the implementation of solar and battery storage systems. Additionally, MRJD aims to invite a small sawmill operator to the site to utilize logs more efficiently and produce high-quality lumber for the local market.

Training and Development

In collaboration with the Butte College Training Center, MRJD plans to establish a training facility for arborists. This initiative emphasizes skill development and employment opportunities within the local community, supporting sustainable community development.

Community Partnership Commitment

MRJD is committed to forming lasting partnerships with the Oroville community, the City of Oroville, and Butte County. This commitment reflects the Gomez family’s dedication to the region and underscores MRJD’s long-term vision and investment in sustainable community development.

Renewable Energy Potential

The Oroville Biomass Facility has high potential for future biomass projects, aligning with California’s Renewable Portfolio Standard for renewable energy production. Projects under 50 MW are governed by the California Waste Management Board and Butte County Planning Division, ensuring compliance and sustainability.


Oroville Industrial Sites for Development:

1. Oroville Biomass Yard (former POPI cogeneration plant)
  • Size: 43 acres
  • Potential: Easily redeveloped into one or more medium-to-small biomass operations.
2. Seidenglanz Industrial Lands
  • Size: 39 acres
  • Location: Former lumber mill (APN 035-270-016)
  • Potential: Suggested development at the rear of the property for specific users.
3. Cal Oak Road Site
  • Size: 15-acre site at the east end of Cal Oak Road (APN 035-400-004) and its 10-acre neighbor (APN 035-400-005)
  • Potential: Previously slated for a biomass-to-energy facility, soon to occupy another location.
4. Highway 70 Industrial Park
  • Size: 113 acres (former LP lumber mill)
  • Potential: Redevelopment of some old buildings at the rear and development of the 14-acre portion at the southeast corner of the parcel (APN 035-470-006).

Raw Materials Availability

After the Camp Fire and other forest fires, there is an abundant supply of biomass in the region. Entities involved in biomass harvesting include Mountain F Enterprises, the Butte Fire Safe Council, Sierra Pacific, and Trinity River Lumber. These organizations can potentially provide raw materials for biomass production.


Labor Availability and Proximity to Engineering Talent

The Chico Metropolitan Statistical Area (MSA), including Oroville, offers a significant labor pool. With 92,600 employees in the MSA and approximately 14,000 in Oroville, the region supports various manufacturers requiring operation engineers, operators, technicians, and engineers. Chico State University provides relevant degrees in Mechanical, Mechatronic, Advanced Manufacturing & Applied Robotics, Computer, and Electrical Engineering. The Alliance for Workforce Development assists with recruitment, screening, and training.


Permitting and Environmental Considerations:

Most sites are pre-zoned M2 (Intensive Industrial) and comply with the Oroville General Plan and Zoning Code. Development is expected to be exempt from CEQA review under Section 15302 of the CEQA Guidelines, though an initial study/negative declaration and reasonable studies such as traffic impact analysis are recommended. All sites are in FEMA Zone X, indicating they are not within a 100-year flood zone.


Development Standards for M2 (Industrial) Zone:
  • Use Classification: Manufacturing with more than 40,000 square feet of gross floor area (Permitted use, no use permit required).
  • Parking: 1 space per 1,000 square feet of floor area, with adequate loading area (screened).
  • Landscaping: Required in parking areas and along any street frontage (10 feet wide).
  • Building Requirements: No minimum lot size, maximum height of 65 feet for the main structure, and mechanical/electrical/communication facilities must be screened from public view. Tree permits required for removal of trees with a DBH of 24 inches or greater.

Utilities and Infrastructure:
  • Rail Spur Accessibility: Not necessary for most sites but available.
  • Wastewater: Engineered design flow of 10MGD, with a $40 million expansion adding 2MGD.
  • Water: Served by California Water or South Feather Water and Power, with sufficient capacity for domestic needs.
  • Electricity: Provided by PG&E, with power lines crisscrossing the area.
  • Natural Gas: Available from PG&E.

These comprehensive plans and considerations position Oroville as a strategic location for biomass and other industrial operations, with significant potential for sustainable development and community partnership.

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Contact Info

Ryan Magwood

Ryan Magwood

Head of Business Development

BDO Zone Initiative

ryan@bdozone.org

647-962-3286

Jim Houtman

Jim Houtman

Director of Forest Health

Butte County Fire Safe Council

jimh@buttefiresafe.net

530-762-9717

Katie Simmons

Katie Simmons

Deputy Administrative Officer, Economic & Community Development

Butte County

ksimmons@buttecounty.net

Local grants and Incentives

Incentives for Biomass Companies:
  • Fast-tracked Permit Process: Permitted use in M2 Zone with Design Review and traffic impact analysis, taking 3-4 months.
  • Federal Opportunity Zone: Encourages investment groups to invest in the zone for tax credits.
  • California I-Bank: Offers Industrial Development Bonds and other tax-exempt financing for manufacturers.
  • California Recycle Market Development Zone: Provides loan incentives up to $2 million for using post-consumer waste.
  • California Competes Tax Credit: Significant incentives for job creation and investment, evaluated annually by the Governor’s Office.
  • Alliance for Workforce Development: Offers contract training, hiring assistance, employee pre-screening, and reimbursement.

BDO Zone Connect Webinar