Impacts of FERC Order No. 2222 on Dairy Manure Processing in Wisconsin

The agricultural practice of spreading dairy manure to fertilize crop fields leads to widespread air and water pollution, due to uncontrolled release of greenhouse gases, nutrients, and pathogens. The associated environmental and health impacts can be mitigated by deploying manure processing (MP) systems that can capture methane to produce electricity and that facilitate nutrient management. Unfortunately, electricity rates available to MP systems in the United States (US) provide limited economic incentives to promote their deployment. Recent policy enacted by the Federal Energy Regulatory Commission (Order 2222) enables distributed energy resource (DER) systems (such as MP systems) to participate in wholesale electricity markets. We present supply chain and market analyses in Wisconsin showing that this order can help activate an electricity bioeconomy that can help mitigating environmental and health impacts resulting from manure spreading. We estimate that this bioeconomy could generate up to $131 million in revenue for dairy farms annually while averting $39 million in greenhouse gas emissions and $182 million in nutrient emissions.