Butte County, California
The Butte County, California BDO Zone for Woody Biomass is rated ‘BBB’.
Rating Issue Date: April 24, 2024.
'BBB' ratings indicate good prospective viability of Feedstock Supply and Infrastructure (FS&I), and expectations of FS&I risk are currently low in the Zone. Capacity to support new biobased plant operations is considered adequate.
Butte County, CA, BDO Zone Overview
Feedstock quantities are expressed in bone dry tons per year (bdt/yr), while feedstock costs are expressed in United States dollars (USD). Maximum transport distance is based on a 75-mile 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
- 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 biomass quality
- California's absence of pulp & paper industries leads to limited harvesting
- High cost of living and tight real estate market challenges labor attraction
Infrastructure
- Location: 3050 South 5th Avenue, Oroville, Butte County, California
- Site Size: approximately 43 acres zoned Intensive Industrial (M-2). Formerly a biomass power plant constructed in 1984, now partially leased for forest debris processing and agricultural activities. The site has 29 structures, including administration buildings, electrical and mechanical shops, a trailer depot for spare parts and waste oil storage, control buildings, the turbine and generator building, the electrostatic-precipitator and cooling tower structures, and a fire suppression house. The site is a Federal Qualified Opportunity Zone.
- The parcel is bordered on the north by the Oroville Yard and Sewerage Commission, a wastewater treatment plant. To the east is a Sierra Pacific Industries sawmill. On the south is a railroad spur and Sierra Silica Resources, a sand and gravel supplier. An empty parcel is located to the west of the site. Highway 70 Industrial Park, one of Northern California's largest, is less than one mile away to the southwest.
- Infrastructure:
- Electric: The site is serviced by a 60 kV Pacific Gas & Electric power tap. The line is currently energized but is listed for removal as the site is idle; an interconnection agreement would be needed by the current or a new owner to re-energize the plant.
- Natural Gas: A natural gas pipeline borders the property on the western side. Less than one mile away, the Highway 70 Industrial Park is served by a four-inch, high-pressure gas main.
- Water: A municipal water connection is on site as well as a fire hydrant. This capacity can serve a large industrial operation.
- Wastewater: A sewer connection is on site, and the regional wastewater treatment plant borders the property to the north. The Recology Butte Colusa Counties Transfer Station in Oroville hosts a household hazardous waste facility, a public recycling drop-off centre, a green waste drop-off centre, and a construction and demolition sorting facility.
- Telecommunications: Oroville is served by several internet service providers including cable, satellite, and 5G options.
- Transportation Access:
- The site is less than one mile from Highway 70, Northern California's designated north-south highway. Oroville is 65 miles from Sacramento via Highway 70; San Francisco is 150 miles distant via Highway 99 and I-80.
- The property is bordered on the south by a rail spur. A main Union Pacific line (Class I railroad) is about half a mile away, providing direct access to Sacramento to the south and Eugene and Portland, OR to the north.
- Oroville Municipal Airport, a regional airport, is 4.5 miles from the site and accommodates private and charter flights. Sacramento International is 60 miles south; San Francisco International is a three-hour drive.
- Deep-water port access via the Port of West Sacramento (68 miles), an inland deep-water port reaching the Pacific through the Sacramento River Deep Water Ship Channel, and the Port of San Francisco (150 miles), which provides bulk, neo-bulk, break-bulk and intermodal container capabilities.
- Environment:
- Air quality is monitored by the Butte County Air Quality Management District; the two main pollutants of concern are fine particulate matter (PM2.5) in winter and ozone (O3) in summer.
- The Oroville site is deemed by FEMA to be in Zone X, an Area of Minimal Flooding Hazard.
- Oroville Biomass Yard: 43 acres, redevelopable into medium-to-small biomass operations
- Seidenglanz Industrial Lands: 39 acres, former lumber mill
- Cal Oak Road Site: 15-acre and 10-acre parcels
- Highway 70 Industrial Park: 113 acres (former LP lumber mill)
Local Grants and Incentives
Butte County Incentives and FinancingThe County's own first stop for project support, including a fast-tracked permit process of roughly three to four months for qualifying industrial development.
Federal Opportunity ZoneThe rated Oroville site is a Federal Qualified Opportunity Zone. Investors who roll capital gains into a Qualified Opportunity Fund can defer and reduce tax on those gains, and pay no tax on the appreciation of the Opportunity Zone investment when it is held long enough.
IBank Industrial Development BondsThe California Infrastructure and Economic Development Bank issues tax-exempt conduit bonds for manufacturing and processing facilities, letting a qualifying project finance land, buildings and equipment at tax-exempt rates.
Recycling Market Development Zone (RMDZ) Revolving Loan ProgramCalRecycle loans of up to $2 million help recycling manufacturers finance machinery, equipment and ancillary costs to site and expand in California. Interest is approximately 4.00%, varying with the applicant's ability to qualify. Manufacturers using California-generated waste materials to make recycled-content products are eligible.
California Competes Tax CreditAn income tax credit for businesses locating in, or staying and growing in, California. Businesses of any industry, size or location compete for over $180 million in credits across three application periods a year, assessed on fourteen factors including full-time jobs created, amount of investment, and strategic importance to the state or region.
Alliance for Workforce DevelopmentThe regional workforce board serving Butte County provides training and hiring assistance, including recruitment support and subsidised on-the-job training for new employees.
Contact Information
