United States WOODY BIOMASS Agriculture UTILIZATION“biomass” and phrase “woody biomass”...

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WOODY BIOMASS UTILIZATION DESK GUIDE United States Department of Agriculture Forest Service National Technology & Development Program 2400—Forest Management September 2007

Transcript of United States WOODY BIOMASS Agriculture UTILIZATION“biomass” and phrase “woody biomass”...

Page 1: United States WOODY BIOMASS Agriculture UTILIZATION“biomass” and phrase “woody biomass” interchangeably. The reader should realize woody biomass is being discussed specifically

WOODY BIOMASS UTILIZATION DESK GUIDE

United States Department of Agriculture

Forest Service

National Technology & Development Program

2400—Forest ManagementSeptember 2007

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WOODY BIOMASS UTILIZATION DESK GUIDE

Information contained in this document has been developed for the guidance of employees of the U.S. Department of Agriculture (USDA) Forest Service, its contractors, and cooperating Federal and State agencies. The USDA Forest Service assumes no responsibility for the interpretation or use of this information by other than its own employees. The use of trade, firm, or corporation names is for the information and convenience of the reader. Such use does not constitute an official evaluation, conclusion, recommendation, endorsement, or approval of any product or service to the exclusion of others that may be suitable.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Forest Management

Forest and Rangelands

National Forest System

Washington, D.C.

August 2007

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The following U.S. Forest Service personnel contributed to this document:

WritersBarry Wynsma, District Project Leader, U.S. Forest Service, Bonners Ferry Ranger

District, Idaho Panhandle National Forest, Northern Region (R1)

Rich Aubuchon, Timber Sale Contracting Officer, U.S. Forest Service, Southern Region (R8)

Dan Len, Timber Staff Officer, U.S. Forest Service, Arapaho Roosevelt National Forest, Rocky Mountain Region (R2)

Michael Daugherty, Sale Preparation and Stewardship Contracting, U.S. Forest Service, Pacific Northwest Region (R6)

Ed Gee, National Woody Biomass Utilization Team Leader, U.S. Forest Service, National Forest System, Forest Management, Washington DC.

Editors/LayoutSara Senn, Management Analyst, U.S. Forest Service, National Forest System,

Forest Management, Washington DC

Larry Swan, Cooperative Forestry, U.S. Forest Service, Winema/Fremont National Forests, Pacific Northwest Region (R6)

Susan Clements, Editor, U.S. Forest Service,

San Dimas Technology & Development Center

Janie Ybarra, Visual Information Specialist, U.S. Forest Service, San Dimas Technology & Development Center

ReviewersMae Lee Hafer, Natural Resource Officer, U.S. Forest Service,

Francis Marion/Sumpter National Forests, Southern Region (R8) Ray Yelverton, Forester, U.S. Forest Service, Ouachita National Forest,

Southern Region (R8) Carl Petrick, Ecosystem Staff Officer, U.S. Forest Service, Florida National Forests,

Southern Region (R8)

Ervin Brooks, Southern Region Logging Engineer, U.S. Forest Service, Southern Region (R8)

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“Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past.”

President George W. Bush January 31, 2006

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TABLE OF CONTENTS

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Chapter 1—Introduction

1.1 Woody Biomass Utilization Projects and Implementation •WhyItIsImportant ................................................................................................... 1

1.2 PurposeofThisDeskGuide ........................................................................................ 2

Chapter 2—Project and Program Design

2.1 Project Integration ........................................................................................................ 6

2.11 Scale .................................................................................................................. 6

2.12 Stand Composition ........................................................................................... 7

2.13 TreatmentObjectives:WhatIsToBeLeft? ..................................................... 8

2.14 UtilizationObjectives:WhatIsToBeRemoved? ........................................... 9

2.15 IntegrationwithFuels,TimberStandImprovement,Recreation,Wildlife, Watershed,andOtherPrograms .............................................................................. 9

2.2 ForestProductMarkets .............................................................................................. 11

2.21 High-valueProducts ....................................................................................... 11

2.22 Value-addedProducts ..................................................................................... 12

2.23 Low-valueProducts ........................................................................................ 14

2.24 No-orNegative-valueProducts ..................................................................... 14

2.25 MarketDevelopmentCollaborationWithEntrepreneurs ............................... 16

2.26 NatureofMarkets ........................................................................................... 17

2.3 ProjectValueMix....................................................................................................... 20

2.31 DeterminingifaProjectCanPayforItself .................................................... 20

2.32 SupplementalFundingMechanismsToOffsetDeficitOperations ................ 28

2.4 HarvestingandYardingTechnologies(Low-TechtoHigh-Tech) ............................. 30

2.41 Whole-treeandLog-lengthEquipment .......................................................... 31

2.42 ChippingEquipment ....................................................................................... 43

2.43 BundlingandLooseMaterialHandlingEquipment ....................................... 45

2.5 TransportationTechnologies ...................................................................................... 49

2.51 Whole-treeandLog-lengthTransport ............................................................ 49

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2.52 ChipandLooseMaterialTransport ................................................................ 50

2.53 Bundle Transport ............................................................................................ 52

2.54 RulesofThumbToSelectBestTransportMethods ....................................... 53

Chapter 3—NEPA - Choose the Right Tool

3.1 Questions To Contemplate ........................................................................................... 54

3.2PotentialProjectsUnderAuthorityofFSH1909.15,Section31.12 ........................... 55

3.3PotentialProjectsUnderAuthorityofFSH1909.15,Section31.2 .............................. 56

3.4PotentialProjectsUnderAuthorityof36CFRPart215 .............................................. 58

3.5PotentialProjectsUnderAuthorityof36CFRPart218(HFRA) ............................... 59

Chapter 4—Contract and Permit Strategies .......................................................................... 60

4.1Free-UsePermits(FS-2400-8) .................................................................................... 61

4.2Personal-UsePermits(FS-2400-1) .............................................................................. 61

4.3 Service Contracts ......................................................................................................... 62

4.4TimberSaleContracts(FS-2400-3(S,T,P));FS-2400-4;FS-2400-6(T);FS-2400-2 ............................................................................................ 62

4.41Standard“B(T)”andSpecial“C(T)”ContractProvisionsTo ImproveSDU-BiomassUtilization .................................................................... 67

4.5StewardshipContractsandAgreements ....................................................................... 68

4.6RulesofThumbforSelectingBestContractInstrument ............................................. 73

4.7 Considerations for Transitioning Values of Products ................................................... 74

Chapter 5—Project (Sale) Preparation Strategies

5.1Cost-SavingMeasures .................................................................................................. 75

5.11MethodsofDesignation .................................................................................... 75

5.12MethodsofVolumeDetermination ................................................................... 76

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Chapter 6—Conversion Factors and Glossary ...................................................................... 77

Chapter 7—References

7.1 Web sites ....................................................................................................................... 83

7.2 Publications .................................................................................................................. 84

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INTRODUCTION WoodyBiomassisdefinedastheby-productofmanagement,restoration,andhazardousfuelreductiontreatments,includingtreesandwoodyplants(i.e.,limbs,tops,needles,leaves,andotherwoodyparts,growninaforest,woodland,orrangelandenvironment).Thisdocumentmayusetheword“biomass”andphrase“woodybiomass”interchangeably.Thereadershouldrealizewoodybiomassisbeingdiscussedspecificallyinbothinstances.

WoodyBiomassUtilization(WBU)isdefinedastheharvest,sale,offer,trade,and/oruseofwoodybiomass.Thisutilizationresultsintheproductionofafullrangeofwoodproducts,includingtimber,engineeredlumber,paperandpulp,furniture,andvalue-addedcommodities,aswellasbioenergyand/orbiobasedproductssuchasplastics,ethanol,anddiesel.

Small-DiameterUtilization(SDU)referstoamorespecificsizeclassofwoodybiomassthatincludessmall-diametertreesthatdonotmeetminimumspecificationsforsawlogs,butarelargeenoughtobeusedasposts,poles,treestakes,smallpulplogs,orothersimilarforestproducts.

1.1 Woody Biomass Utilization (WBU) Projects and Implementation—Why Is Biomass Utilization Important?

Background:InJuneof2003,aMemorandumofUnderstanding(MOU)onPolicyPrinciplesforWoodyBiomassUtilizationforRestorationandFuelTreatmentsonForests,Woodlands,andRangelandswassignedbytheSecretariesofAgriculture,Energy,andInterior.ThisMOUestablishedeightpolicy principles:

1. Includelocalcommunities,interestedparties,andthegeneralpublicintheformulationandconsiderationofWBU-utilizationstrategies.

2. Promotepublicunderstandingofthequantityandqualityofwoodybiomassthatmaybemadeavailablefrom FederallandsandneighboringTribal,Stateandprivateforests,woodlands,andrangelandsnationwide.

3. PromotepublicunderstandingthatWBUmaybeaneffectivetoolforrestoration-andfuels-treatmentprojects.

4. DevelopandapplythebestscientificknowledgepertainingtoWBUandforestmanagementpracticesforreducinghazardousfuelsandimprovingforesthealth.

5. EncouragethesustainabledevelopmentandstabilizationofWBUmarkets.

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6. SupportIndianTribes,asappropriate,inthedevelopmentandestablishmentofWBUwithinTribalcommunitiesasameansofcreatingjobs,establishinginfrastructure,andsupportingneweconomicopportunities.

7. Exploreopportunitiestoprovideareliable,sustainablesupplyofwoodybiomass.

8. DevelopandapplymeaningfulmeasuresofsuccessfuloutcomesinWBU.

TheMOUdrovetheneedforaninteragencygroupthatisfocusedontheimplementationoftheMOU.TheFederalWoodyBiomassUtilizationGroup(WBUG)wasdevelopedforthispurpose.

TheWBUGhasdevelopedthisdeskguideaspartofthegroup’simplementationplantohelpFederallandmanagerseitherstartorbuilduponexistingregional,forest,district,andotherfieldofficesandcommunity-levelsmall-diametertreeandbiomass-utilizationprograms.

NationalPolicies:InadditiontotheMOU,numerouslawsandpolicieshavebeenestablishedthatrelatetoWBU,whichhasestablishedtheneedforandmeansofaddressingissues,challenges,oropportunities,suchas:

l TheBiomassResearchandDevelopmentActof2000.

l The2000NationalFirePlan.

l The2001NationalEnergyPolicy.

l The2002HealthyForestsInitiative.

l The2003HealthyForestsRestorationAct.

l Sections9006and9008ofthe2002FarmBill.

l NationalEnergyPolicyActof2005.

1.2 Vision, Goals, and Purpose of the Desk Guide

TheWBUGisimplementingastrategyforincreasingtheharvestandutilizationofwoodybiomassandwoody-biomassproductsandresiduesfromforestandwoodlandhealth,managementandrestorationtreatmentswheneverenvironmentally,economically,andlegallyappropriate.

Vision:Anecologicallyandeconomicallysustainablewoodybiomassharvestandutilizationwillresultinmorediverseforest,woodland,andrangelandecosystems—characterizedbynativefloraandfauna,healthywatersheds,better

CHAPTER 1

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airquality,improvedscenicqualities,resiliencetonaturaldisturbances,andreducedwildfirethreatstocommunities—andprovideanalternativeresiduemanagement strategy contributing to rural economic vitality and national energy security.

Goals:ThegoalsofWBUGare:

1. Reducethecostandimprovethequalityofforest,woodland,andrangelandrestorationorhazardousfuelreductiontreatments.Reduceforestrestorationcostandincreasetheuseofwoodybiomassasarenewableenergyresourcethroughenvironmentallysoundactionswhichalso provide economic opportunity in rural communities.

2. ReducetheriskofcatastrophicfiresthroughadoptionofwidespreadWBU practices.

3. Provideasustainableandreliablesupplyofwoodybiomassfromforests,woodlands,andrangelandsacrossarangeofownershipsandregionsofthenation.

4. DevelopandimplementconsistentandcomplementarypoliciesandproceduresthatwillmaximizeFederalefficiencyandeffectivenessofWBU.

5. Restoreat-riskforest,woodland,andrangelandecosystemstohealthyand resilient conditions.

6. Developsustainable,livingwagejobsandappropriately-scaledindustriesin communities.

7. Enhancenationalsecuritythroughclean,renewable,diversifiedenergyproduction.

8. Contributetothestabilizationofgreenhousegasconcentrations.

9. Developandapplyappropriatetechnologiesandprovidetechnologytransfertostakeholders.

10.Substantiallydivertbiomasscurrentlydirectedtolandfillstohighervalueuse.

Purpose:Giventhestatedvisionandgoalsforbiomassutilization,thepurposeofthedeskguideisto:

l Provideaquickreferenceguideandsuggestionstolocallandmanagersonhowtolocateandcollaboratewithbiomassstakeholders.

l Assesstheviabilityofoffsettingthecostsofaccomplishinghazardousfuelsandecosystemrestorationtreatmentsbyutilizingmarketablesmall-diametertreesandotherbiomass.

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l ProvidesuggestionsonhowtousecurrentNationalEnvironmentalPolicyAct(NEPA)planningtoolstostartupquicklyandthenmaintainabiomass-utilizationprogram.

l Providesuggestionsonhowtousecost-effectivesalepreparationtechniquesandcost-effectivetimbersale/stewardship/servicecontractpreparationtechniquestoprovideincreasedsuppliesofbiomass.

Thisguidedoesnotprovideamagicalrecipeforsuccessfulimplementationofsmall-diametertreeutilizationandbiomassprojects.Rather,thisguideprovidesencouragementandusefultipstohelplandmanagersimplementprojectsandbuildsmall-diametertreeutilization/biomassinfrastructuresintheircommunities.

Thetipsarederivedfromthelessonslearnedbythoseforestsanddistrictsthatcurrentlyhavesuccessfulprograms.ThelessonslearnedhavecomefrombothsuccessesandfailedattemptstobuildSDUprogramsandinfrastructuresincommunities.

InspiteofallthebarriersandchallengesthatcomewithattemptingtoimplementorbuildonexistingSDUandbiomassprograms,theWBUGstronglybelievesitisworththestrugglesweallfaceinaccomplishingtheseobjectives.

ThefollowingchaptersdividethechallengesintofourimportantareasthattheWBUGfeelsneedtobeconsideredindividuallybuttackledsimultaneouslyinordertohaveachanceforsuccess:

Chapter 2—Project and Program Design Thischaptercontainssubsectionsonprojectintegration,forestproductmarkets,

project-valuemix,extractiontechnologies,andtransportationtechnologies.

Chapter 3—NEPA, Choose the Right Tool Thischaptercontainssubsectionsthatincludeplanningquestionstocontemplate

andtypesofprojectsthatcouldbeimplementedunderFSH1909.15,Section31.12and31.2(includingHFIprojects),under36CFRPart215andunder36CFRPart218(HFRA).

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Chapter 4 —Contract and Permit Strategies Thischaptercontainssubsectionsthatdiscussthemeritsandlimitationsof

usingfree-usepermits,personal-usepermits,servicecontracts,variousformsoftimber-salecontracts,includingdiscussionsonspecialcontractprovisions,stewardshipcontracts,rulesofthumbforselectingthebestcontractinginstrument and considerations for transitioning values of forest products.

Chapter 5—Project (Sale) Preparation Strategies Thischapterfocusesmainlyonsuggestionsoncost-savingmeasuresthatcould

beconsideredwhenimplementingtimbersaleorstewardship-typeprojects.

Chapter 6— Conversion Factors and Glossary

Chapter 7—Useful Web Sites and Publications

Chapter 1

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PROJECT AND PROGRAM DESIGN 2.1 Project Integration

2.11 Scale

So,howisaSDU-biomassprojectorprogramintegratedintothelocallandmanagementprogram?Thesequestionsmaybehelpful:

l Howwilltheharvestofbiomasshelpachievethedesiredfuturecondition(DFC)andwherearethehighestpriorityareas(risktohumanhealthandsafety)fortreatment?

l Howlargeaprojectisbeingconsidered:1acre;100acres;1,000acres;100,000acres,ormore?

l Whataretheexistingmarkets?Aretherelocalcrewstoperformthework?

l Isbiomasscurrentlybeingharvestedandutilizedinthearea,andifso,hasarapportbeenestablishedwiththepurchasersandmillowners?

l Istheresupportfromthelocalcommunityandenvironmentalgroups?

l Whataretheshort-term(1to10years)orlong-term(10to20yearsormore)orsustainableneedsforintegratingSDU-biomasstreatmentsintotheprogram?

l Howmanyacresperyearwouldbetreated?

l Whatsizeisthebudgetandworkforce?

Oncethescaleoftheprojectisknown,it’seasiertodeterminethesizeofthecommunityworkforce,whattheappropriateNEPAtool(s)areforimplementingtheprojectorprogram,andwhatcontractinginstrument(s)touse.

Forexample,asalandmanagerworkinginasmallcommunitywiththesmall-scaleandpossiblyshort-termneedtothinsmall-diametertreeslocatedwithinanumberofadministrativeorrecreationalsites,itmightbebesttoimplementthethinningundertheNEPAauthorityofFSH1909.15,Chapter31.12,paragraph3-“RepairandMaintenanceofAdministrativeSites.”Oncethetreestocutaremarked,ifthetreesaretoosmalltomeetminimumspecificationsforsawlogs,opentheareauptopersonal-usefirewoodcuttersorpossiblyconductasealed-bidauctionforcommercialsaleofpost,pole,treestake,rusticfurniturewood,chipstobeusedinaschoolbiomassfacilityorfirewoodmaterial,dependingonwhatkindofforest-productindustryisinthearea.

Chapter 2

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Hereisanotherexampleontheoppositeendofthescale.Let’ssayasalandmanagerworkinginacommunitythatissomewhatdependantonforestproductsindustries,thereisaneedtoconductfuelsreductionandrestorationworkon100,000acresofoverstockedsmall-diametertimberstands.Thispresentsadifferenttypeofchallenge.

Inthiscase,giventhelocalworkforceandbudgetarylimitations,itispossibletoworkuptoandthenmaintaina2,000-acreannualfuelsreductionprogramforthenext50years,maybesustainablywithappropriatesilviculturalprescriptionsput in motion.

Perhapstherearesmallwood-marketentrepreneurs(small-scaleloggers)inthecommunitywhosellpost-and-polematerialtoafencepostandrusticfurnituremanufacturer.Thesespecializedloggerscouldhelpwiththefuels-reductionprogram,butonlywithacapabilityofthinningabout100acresperyearwiththeircurrentequipmentandmarkets.Alsoassumethattheworkforcewouldbeunableraisethe$20,000cashorcredit(minimum)topurchaseaforest-productssale.

Underthisscenario,trytoarrangeasmall-scalefuels-reductionprogramthattargetsrelativelysmallparcelsoftimberstands—between70and1,000-acres—utilizinganassortmentofNEPAdecisiondocumentsavailableunderFSH1909.15,Chapter31.2thatincludelimitedtimberharvest,timberstandandwildlifehabitatimprovement,andhazardous-fuelsreductionprojectsthatcanbecategoricallyexcludedfromdocumentationinanenvironmentalassessmentorenvironmentalimpactstatement.Usecontractinginstrumentsthatfitthefinanciallimitationsofthepotentialtimber-salepurchasers,(i.e.,theworkforce).

Theseexamplesshowhowscaleaffectstheoveralldesignofaprojectorprogram.ThroughouttheguidemorescenariosareusedtoshowhowallthesefactorsareintertwinedinthedevelopmentorexpansionoflocalSDU-biomassprojects and programs.

2.12 Stand Composition

Marketinventoryisanothertermforstandcomposition.Duringtheproject-designphase,thereneedstobeageneralideaaboutthecompositionofthestandsundergoingtreatment.Someofthequestionstobeansweredinclude:

l Arethestandscomposedofmixedspecies,andifso,whatspecies?

l Whatisthepercentageofspecies,bysizeclass,stockinglevels,basalarea,etc.?

Chapter 2

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Thisinformationhelpsdeterminewhetherthereisagold-mineofforestproductsoranunsavorypileoflow-gradebiomass.Ateitherendofthisproduct-valuescale,rememberthat“onepersons’garbageisanother’sgoldmine”andquitepossiblyviceversa!

Forexample,alandmanagermaybelookingattreatingadiseasedstandoflarge-diameterwhitepine,whichnormallywouldbeconsideredveneer-gradesawlogs.However,let’ssaythislandmanagerisworkinginanareathatdoesnothaveasawmillwithin300milesthatcanhandlelargesawlogs.Inotherwords,hispotentialgoldmineisactuallygarbage.

Ontheotherhand,anotherlandmanagermaybelookingattreatingadensestandofmostlypurelodgepolepineranginginsizebetween2and6inchesdiameterbreastheight(dbh).Thismayatfirstappeartobeabunchofgarbagetrees.However,inthiscase,whatif50milesdowntheroadfromthislandmanagers’timberstandisasmall-scalemanufacturerwhomarketsdoweledfencepostsandpolesandrusticfurniture,andheiswillingtopay$40pergreentonforliveanddeadlodgepolepineinthe2-to6-inchdiameterrange.Bythetree-lengthlog-truckload,thisequatestoabout$1,120perloador$140perhundredcubicfeet.Goldmine!

2.13 Treatment Objectives: What Do You Want Left (i.e., the DFC)?

Whethertheprojectareahasbeenidentifiedthroughcollaborativeeffortsforfuelsreductionconcernsorjustthroughtheregularvegetation-managementprogramprocess,thenextstepwillbetodeterminetheendresultsofthetreatments.Themainquestionstoanswerare:

l IsonetryingtoachieveaDFCforforesthealthandecology,orisonetryingtoachieveanalteredDFCfromthenaturalconditiontoprovideahigherlevelofprotectiontoadjacentcommunities?

l Whatspecies,sizeclasses,andstockinglevelsneedtobelefttoaccomplishthedesiredfuels-reductionlevel,fireresiliency,andsilviculturalobjectives?

l Whatneedstobelefttoachievecoarse-down-woodyandnutrient-cyclingobjectives?

l Whatneedstobeleftforcavitynestingandotherwildlifespecies?

l Whatneedstobeleftforspecialriparian-habitatmanagementobjectives?

l Whatneedstobeleftforvisual-resourceobjectives?

Chapter 2

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l Whatneedstobeleftforadequatefuelstoaccomplishaprescribedfirefollowingremovalofexcessfuels?

l Whatneedstobeleftforanyotherresourceobjectives?

Oncethesequestionsareanswered,itbecomesapparentwhatmarketvaluestoremovefromtheavailablesupplyinventory.Thisinformationwillalsohelpdeterminewhatoperationalequipmentmaybeappropriate.

Forexample,ifthedesiredendresultforaprojectareaistoleaveponderosapinetreeswithadbhrangingfrom6to10inchesonaspacingrangingbetween15to20feet,thenthereisonlysmall-diameterbiomasstoofferasamarketableproduct,andrequiresasmall-sizeharvestertocutandprocessthematerialtominimizemechanicaldamagetotheresidualstand.

2.14 Utilization Objectives: What Is To Be Removed?

Utilization—thefunandchallengingpartofprojectdesign—isthemainpurposeoftheguide.

Theanswertothequestionofwhattoremoveissimple.Remove—andutilizetothefullestextentthatwhichiseconomicallyfeasible—everythingthatisnotneededintheprojectareafollowingtreatment.

Oneofthebiggestchallengesistoidentifythehighestcommercialvalueforalltheexcessbiomassavailablefordisposalintheprojectareaand,mostimportantly,tofindawaytogetallthevariousproductstransportedoutoftheprojectareaandintotheappropriatemarkets.

Ifsuitablemarketscannotbefound,thentrytomakethemarketshappen.Thefirststepcouldbereadingthisguide.Hopefully,it’snotawasteofvaluabletime.Moresuggestionsonmarketsandmarketdevelopmentarediscussedinlater subsections.

2.15 Integration with Fuels, Timber Stand Improvement, Recreation, Wildlife, Watershed, and Other Programs.

Integratingsmall-diametertreeandbiomass-utilizationprojectswithfuels-reductionprogramsisanobviouswaytointegrate.Fuelsprogramsshouldbeleadingthewayforutilizingthismaterial.Itcostsmoneytoslash,buck,pile,andburnexcessfuels,whethertheyareconnectedtotimbersalesorareadirectresultoffuel-reductionprojects.Ifthelocaldistrictworkinggroupcurrentlydoes not coordinate activities between fuels and vegetation management programs,thetimetodosoisnow.

Chapter 2

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Similarly,timberstandimprovementprogramsshouldbecoordinatingtheirprogramactivitieswithvegetationmanagementandfuelsprograms.Becausefuelsreductionobjectivesnormallyincludetheneedtocutandremoveorburnthesmallerdiametertreesandbrush,thesamestandsthatneedthefuels-reductiontreatmentsalsowillusuallybenefitfromthinningtreatmentsthathaveinthepastbeenconsideredtobeprecommercialtreatments.Also,conductingprescribedfiresinsmall-diametertimberstandsthathavebeenthinnedusuallyisnotfeasiblebecausetheresidualtreesaretoosmallindiameterandthecrownsaretooclosetothegroundtobefireresistant.Exceptionsexist,suchaslong-leafpineplantationsintheSouthernStates.

AlsointheSoutheast,biomassharvestfromfire-suppressedareasmaybeneededtoimprovehabitatforthreatenedandendangeredspeciesortoimprovesmoke-managementsituations,therebyfacilitatingprescribedburning.

Notquiteasobviousastheintegrationbetweenvegetation,fuels,andtimber-standimprovementprograms,otherprogramssuchaswildlife,recreation,andwatershedprogramscanandshouldbeintegratedasmuchaspossibletonotonlyutilizeSDUandbiomassmaterialbutalsotohelpfundbeneficialtreatmentsforthoseresources.

AnexampleofhowwildlifehabitatcouldbenefitfromanintegratedSDU-biomassprojectcouldinvolveaspenstandsthatarebeingencroachedbyconiferspeciesorthathavebecomedecadentduetopastfiresuppression.Byintegratingwithvegetationandfuelsprograms,wildlifebiologistscouldrestorehealthyaspenclonesthroughthemechanismofasmall-diameterbiomasstimbersale,orthroughaspeciallydesignatedpersonal-usefirewoodcuttingareathatwouldcutandremovetheconifersandperhapsmostofthedecadent-aspentrees,followedbyaprescribedfiretohelprejuvenatetheaspen.Thisintegrationcouldmaketheprojectcosteffective.

Thisexamplefocusesonwatershedrestoration.Itinvolvesaspeciallydesignedtreatmenttoremoveadenseunderstoryofsmall-diametermixedconiferswithinariparian-habitatconservationarea.Theobjectiveistofavorthegrowthoflarge-diametercedartreesthatinthelongtermwillhelpshadestreams,coolwatertobenefittrout,andeventuallydieandfallintothestreamzonestoimprovestreamstabilityandfishhabitat.

Whataboutintegrationwithroadmaintenance?Often,wereadabouthowmanymilesofforestroadsneedtobemaintained,yetconsistentlyareunderfundedtoaccomplishdesiredroutinework.Findingmarketsforsmall-diametertreesandbrushcanhelpheretoo.SDU-biomasssalescouldprovideaneconomicalmeanstoclearroadsidesandperformotherminormaintenance(i.e.,bladingroadsandreestablishingditchlines)forpublicsafetyandimprovedingressandegressincaseofemergencywildfire-evacuationneeds.

Chapter 2

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2.2 Forest Product Markets

2.21 High-value Products

Whatisconsideredahigh-valuemarket?Keepinginmindthemaximof“Onepersons’garbageisanother’sgoldmine,”high-valuemarketscanvaryfromlocationtolocationaroundthecountry.Normallyspeakingthough,high-valueincludesforestproductsthatallowtheraw-materialhandlersandmanufacturerstomakeareasonableprofitafterfactoringintheiroperatingcosts.

2.211 Uses

Usesofhigh-valueforestproductsincludedimensionallumber(sawlogs),veneerwood,houselogs,andutilitypoles.

2.212 Product Specifications

Sawlogs—Technologyexiststoday–andisbeingusedincertainpartsofthecountry–thatcanmakedimensionallumberfromlogsassmallas9feetlongwithsmall-enddiametersof3.5inches.Formostofthecountryhowever,thestandardminimum-piecesizeisabout8.5feetlongwithsmall-enddiametersof5.6inchesinsidethebark.

Veneerlogs—Veneerlogs–softwoodandhardwoodspecies–aresomeofthehighervaluedmaterialprocessedintowoodproducts.Anidealveneerlogiscylindricalwiththepithinthegeometriccenterofthelog-endsections.Thebarksurfaceandthelog’sendsectionsareentirelyfreeofblemishanddefect.Thelog’sgrainisstraight.Veneerlogsproduceveneeraswoodcut0.01-to0.25-inchthickusingarotary-orslicing-knifemethod.Largerlogsproducehigheryieldsofveneer.Veneerlogs,orbolts,aretypicallypeeledinlengthsof8feetplustrim,andcanbepeeleddowntoa3.5-inch-corediameter.Uniformthickness,minimumsurfaceroughness,andminimumbucklearethreedesirablecharacteristicsofveneer.Fourend-usecategoriesforveneerareconstructionandindustrialplywood,faceveneerforhardwoodplywoodanddecorativepanels,coreandcross-bandveneerfordecorativeplywood,andcontainerveneerforboxesandbaskets(USDATechBulletin1577,1978).

Houselogs—Thisisapotentiallyveryhigh-valueproductifthemarketareasupportshouselogs.Normallywhatlog-homemanufacturersarelookingforaredead(butnotalways),fairlystraightlogsthatarefreeofsaprot,largebeetleboringholes,andspiralchecks.Fire-charredtreesmayormaynotbeconsideredadefect.Houselogspeciespreferencesvarydependingonthemarketarea,butmanymanufacturersutilizecedar,lodgepolepine,spruce,whitepine,western

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larch,andalpinefirintheWesternStates.IntheSouth,baldcypress,southern-yellowpine,andeasternhemlockareutilized.IntheMidwest,eastern-whitecedar,oak,andotherspeciesareused.Donotautomaticallydiscountcertainspecies.Preferreddiameterscanvaryfrom6inchestoover18inchesandlengthsof25feetorlonger(shorterpiecescanbeusedforarchways,gables,etc).Iflog-homemanufacturersarewithinseveralhundredmilesoftheprojectarea,theymaybeinterestedincomingtogetthehouselogtrees.Contactlocallog-homebuilderstofindoutexactlywhattheirpreferencesare.

Utilitypoles—Thisisanotherpotentiallyveryhigh-valueproductifthemarketareaisright.Utilitypolesforpower-transmissionusenormallyaresouthernpines,Douglasfir,andwestern-redcedarin20-to125-footlengths.Otherspeciesareoftenusedfordistributionpoles.ForestProductsLabGeneralTechnicalReport128providesusefulinformationaboutspeciesandstrengthcharacteristicsofvariousspeciesoftreesusedforutilitypoles.Thereportcanbe accessed at http://www.fpl.fs.fed.us/documnts/fplgtr/fplgtr128.pdf

2.213 Current Purchasing Locations or Regions and Value Ranges

Toviewcurrentpurchasinglocationsorregionsandvaluerangesvisit:http://fsweb.fpl.fs.fed.us

2.22 Value-added Products

Value-addedforestproductsrefertothoseproductsthatnormallyareabyproductofhigh-valueproducts.Theyalsocanhaveafairlyhighvaluetonichemarketers.Value-addedproductsmayormaynotbemarketedbytheinitialforestproductssalepurchaser.Usuallyvalue-addedproductsaresoldtosecondarypurchasers,oftentimessalvagersofnonsawlogdecksandslashpilesfollowingatraditionaltimbersale.Insomeareasofthecountryhowever,value-addedproductscouldbederivedfromsmall-diameterforest-productsalesthataccomplishthinningorfuels-reductiontreatmentsandmayormaynotincludetraditional sawlog products.

2.221 Uses

Commonusesincludeawiderangeofforestproductsdependingonthelocalityorregionofthecountry.Examplesinclude—butarenotlimitedto—postandpoles,treestakes,trellispoles,rusticfurniture(bedframes,cabinets,lampposts,coatracks,etc),spindlesforlog-homerailingsandstairways,stairwaysteps,arches,characterwood(i.e.,burlsorcat-facedwood),landscapechipsandbark,gardenmulch,animalbedding,compositewood,andmanyotheruses.

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2.222 Product Specifications

Productspecificationsforthevariousvalue-addedproductmarketsaresovariablethatitwouldtaketoomuchspaceheretolistthem.Basically,value-addedproductscanbemadefromvirtuallyanyspeciesandsize-classtreegrowinganywhereinthecountry.

However,ofalltheproductscurrentlybeingmarketednationally,whenitcomestolandmanagersbeingabletotapintovalue-addedmarketstoaccomplishfuelsreduction,restoration,ornormalvegetation-managementtreatments,themarketswiththemostpotentialincludethepost,pole,tree-stake,andspindle-woodproducts.Mainly,thesemarketsuselodgepolepineintheWesternStates,eastern-whitecedar,redpine,andjackpineintheMidwest,andyellowpinesintheSouthernStates,althoughmorelocalizedspeciespreferencesmayexistaroundthecountry.

Thebestwayforlandmanagerstofindoutwhatpossiblevalue-addedmarketsmayexistintheirworkingareawouldbetocheckWebsitesandyellowpagesandthenfollowthroughbymakingcontactwiththosemanufacturerstofindoutwhattheirspecificneedsare(includingannualsupplyneedssothepotentialsizeoftheprogramcanbedetermined).Refertosection7foralistingofsomevalue-addedmarketsorlinkstoWebsitesforthosemarkets.

2.223 Current Purchasing Locations or Regions and Value Ranges

Toseecurrentpurchasinglocationsorregionsandvaluerangesvisit: http://fsweb.fpl.fs.fed.us

Togivemeaningtothetermvalue-added,considerthatinsomepartsofthecountrywherespindle-woodmarketsexist,manufacturersarewillingtopayaround$2,000perlog-truckloadfordeadlodgepolepineintree-lengthform(log-trucklengths)andassmallas2inchesindiameter.Somepost-and-polecompanieshavealsobeenpayingaround$40perton(roughly$1,100pertruckload)forsmall-diameterlive-anddead-lodgepolepine.

Hasanyonenoticedthoselittlebundlesofsplitcampfirewoodthataresellingforaround$5perbundleatstoreslocatednearcampgrounds?Howmuchisthatpercord?

Landmanagersshouldnotoverlookthepotentialtoutilizevalue-addedmarketstodriveamajorfuels-reduction,restoration-,ortimber-standimprovementprojectorprogram.Value-addedmarketscansuddenlyfallintothehigh-valuecategorywiththerightforestproductsinfrastructureinplace.

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2.23 Low-Value Products

Low-valuemarketsbarelyprovideaprofitmargintothosepeopleinvolvedintheharvestingandtransportingthematerialtothemarket.Normallythelow-valueproductsfindtheirwayoutthewoodsbecauseofhigher-valueproductsbeingremovedatthesametime.

2.231 Uses

Usesincludepaperpulpandchipsfororientedstrandboard(OSB)andothercomposite lumber.

2.232 Product Specifications

Themostimportantspecificationforpaperpulpisthatpulplogscannotbefire-charredintothecambium(charredbarksometimesisaccepted).Pulplogsgenerallyshouldnotcontainmorethan50-percentsoftrot.Manytreespeciescanbeutilizedforpaperpulp.Acceptablespeciesmixesandsizespecificationsalsowillvarybasedonthekindofpaperproductamillismaking(i.e.,newsprint,kraftpaper,cardboard,magazine-qualitypaper,etc.).ThesamevariablesexistforOSB,particleboard,compositewood,andotherhome-sidingandflooring-lumberproducts.

Todeterminelocalforest-productspecifications,seekoutthoseindustriesthatarelocaltotheregion.

2.233 Current Purchasing Locations or Regions and Value Ranges

Toseecurrentpurchasinglocationsorregionsandvaluerangesvisit:http://fsweb.fpl.fs.fed.us

2.24 No- or Negative-Value Products

Theno-valueornegative-valueforest-productmarketsarethemarketsthatneedtobedevelopedandnurturedthemosttoaccomplisheconomicallytheobjectivesoftheNationalFirePlan,HealthyForestsInitiative,HealthyForestRestorationAct,NationalEnergyPolicyAct(2005),the10-YearComprehensivePlan,theobjectivesoftheWoodyBiomassUtilizationMOU,andmanyotherinterrelatedinitiativesandlaws.

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2.241 Uses

Usesincludehog-fuelchipstofueloldtechnologywood-to-steamturbine-to-electricitypowerfacilities(manysawmillsusethissystemtogeneratetheirownpower)orforhigh-techcogenerationelectricgenerationfacilities.Theterm“cogen,”meansthatnotonlyiselectricitybeingutilized,butatleastoneotherbyproductoftheelectricitygeneratingprocess,suchassteam,isbeingusedalso,suchasforheatingabuildingwiththesteamthatwasusedtoturntheturbines.Anothertermusedtodescribecogeniscombinedheatandpower.

Otherpromisinguses—intheearlystagesofdevelopment—includeconvertingwoodchipsintoethanolandbiodieselwiththepurposeofreducingtheUnitedStatesdependencyonforeignoil,whileatthesametimehelpingtoreduceexcessiveforestfirefuelloadingsandrestoreforesthealth.

Thecombinedusesoftheseforestresidues(biomass)bringwithitademandformassquantitiesofsmalltrees,branches,needles,andbrush.Theproblemofcourseisthatcurrently—ifthereisanylocalmarketforthematerialatall—thevalueoftherawmaterialistoolowforanybodytomakeaprofitoutofharvestingandtransportingthematerialtoafacilitythatcanusetheproduct.Inaddition,thecosttopaysomebodytoharvestandremovealltheexcessbiomassiscurrentlysohighthatCongressionally-appropriatedfundingforthisremovalworkisnotlikelytobeprovided.

Isitworththechallengetofindwaystoutilizebiomass?Yes,therearemillionsofacresoffederallymanagedforests(includingshrublands)containingmillionsoftonsofexcessforestfuelsthatneedtobedisposedofinordertoachieveourDFCorimproveforesthealth.Theeasywayoutofthisproblemistoslashandburnthebiomass,wastingperfectlygoodenergyandaddingtosmokeemissionstotheatmosphereor,thebiomasscanbeturnedintoelectricityortransportationfuelsthatwillhelpthecountrybecomelessdependentoffossilfuelsandforeignoil.Itmaybeworththeefforttomeetthechallenge.

2.242 Product Specifications

Thespecificationsforno-valueornegative-valuebiomassarewhateverisleftoverafterthehigh-value,value-added,andlow-valueproductsareusedup.Thesourceofthislow-gradebiomasscouldbefromsmall-diameter(i.e.,nonsawlog)timberstands,scatteredloggingslash,slashpiles,precommercially-thinnedtrees,noncommercial-junipertrees,orbrushspecies.OthersourcesthatcouldcomefromStateandprivatecommunitypartnersinbiomass-utilizationprojectsincludesawmillresiduesandlandfill-woodwaste.

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2.243 Current Purchasing Locations or Regions and Value Ranges

Toseecurrentpurchasinglocationsorregionsandvaluerangesvisit: http://fsweb.fpl.fs.fed.us

2.25 Market Development Collaboration with Entrepreneurs

Webster’sNewWorldDictionarydefinescollaborationas“toworktogether.”Webster’salsodefinesanentrepreneuras“onewhoorganizesabusinessundertaking,assumingtheriskforthesakeofprofit.”

Whentalkingaboutcollaboratingwithentrepreneursforthepurposeofmarketdevelopment,keepinmindthatourbusinesspartner(theworkforce)needstominimizehisorherriskofgoingbankrupt.Similarly,forFederallandmanagerstobesuccessfulinaccomplishingfuelsreductionandrestorationworkeconomically—inotherwords,atlowcosttotheAmericantaxpayers—theyneedtobesensitivetotheeconomiceffectsonourworkforce(i.e.,thebusiness)whenenvironmentalprotectionmeasuresarerequiredbeforemakingbiomassavailableforuse.Inotherwords,weneedtoworkcloselywithourpartnerstodevelopcost-effectivemethodsofutilizationwhileatthesametimeprotectingthenaturalresources.

FederallandmanagersdonothavemuchcontrolovermostofthemarketforcesthatwilldriveSDUandbiomass-utilizationbusinesses.However,onemarketfactorthatFederallandmanagersdohavesomecontroloverissupply.

Asalandmanagerworkingnearalargeurbanareaorneararuralcommunityoflessthan1,000people,theSDU-biomassprojectorprogramshouldbetailoredtofittheneedsofthecommunity.Committingtoalong-termprogram,meanscommittingtoasteadysupplyofforestproductssothebusinesspartnercanbankonthatsupply.Itdoesnotmatterifthecommitmentis10acres-worthofproductsperyearor1,000acres.Thekeytoeverybody’ssuccessinmaintainingahealthybusinessandlandmanagementprogramisinthesteadinessofthesupply.

Anotherfactorthatlandmanagershavesomecontroloverinminimizingbusinessriskisinhowmuchmoneyourbusinesspartnerisaskedtospendintheprocessoftakingpossessionofthematerialwewanttodisposeof.

Forinstance:

l Howmuchstumpagewillourpartnerpay?

l Howmuchmoneywillourpartnerpayforbrush-disposaldepositsandotherpost-harvesttreatmentexpenses?

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l Howmuchmoneywillwecauseourpartnertospendtousecertaintypesofequipment?

l Howmuchmoneywillourpartnerhavetospendonanannualbasistomaintaincashcredits?

l Howmuchmoneywillourpartnerhavetospendonamonthlybasis(i.e.,isthepartnerpayingalump-sum,orpayastheygo)?

l Howmuchmoneywillourpartnerhavetospendinharvestproductiontimeduetoprojectlayout(i.e.,terrain),silviculturalprescriptions,timber-cuttingcontractdesignations,andothercontractualstipulations?

l Howmuchtimewillweallowourpartnerto“playthemarkets”tooptimizetheirprofitmargin?

Whilenotgettingintointimatediscussionswiththebusinesspartnerabouttheirfinancialhealthandcapability,landmanagersshouldhavesomelevelofdiscussionwithpotentialentrepreneurialpartnerstocustomizetheprojectorprogramanddothebestjobofminimizingtheriskoffailureofboththeprogramandthepartner’sbusiness.

Beginthediscussionwithquestionssuchas:

l Whatproductsandspecificationsdoyouwanttomarket?

l Whatisthequantityofproductsyouwanttostartwith?

l Howlargeofamarketdoyouwanttoeventuallyachieveandmaintain?

l Whatdoyoucurrentlyhaveforharvestingandtransportationequipment?

l Ifyouaren’tinterestedintheharvestingandtransportingofproductstoyourmanufacturingfacility,whatpricewouldyoubewillingtopaysomebodyelsetobringyoutheproduct?

l Ifyouarewillingtopaysomebodytobringyoutheproduct,whatformdoyouwantthematerialdelivered(i.e.,treelength,chunks,chips,bundles,etc.)?

2.26 Nature of Markets

Landmanagersmustbeawareoftheparticularnatureofthemarket(s)thatwillbeutilizedtoaccomplishtheirSDU-biomassprojectorprogram.Forexample,somemarketsarefairlysteadythroughouttheyearwhileothershaveseasonalfluctuations.Othermarketsmayhaveaninverserelationtoothermarkets.Thenatureofmarketswillhaveadirecteffectonhowlandmanagersdesigntheirlocal project or program.

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2.261 Seasonal Markets

Seasonalmarketsmayonlyhaveademandduringcertaintimesoftheyear.Thefencepostandpolemarketisoneexample.Nobodylikestobuildfencesinthewintertimeinthoselocationsaroundthecountrythatgetcoldandsnowy.SotodesignaSDU-biomassprogramtailoredtothismarket,schedulesupplyavailabilityinthespring(assoonasgroundconditionspermit),summer,andfallmonths.Timingharvestoperationswouldbeimportantwhenputtingtogethercontractpackages.Unlessthereisabusinessthatcanbuildinventoryinthewintermonths,itmightnotbeagoodideatooffershort-termpost-and-polesaleslateinthefallorwinter.

2.262 Year-Round Markets

Theentrepreneurialpartnersneedreassurancethattherewillbeasteadysupplyofforestproductsfortheirmarkets;landmanagersneedsomereassuranceforasteadydemandofthosesameforestproducts.Ittakestime(years)forlandmanagerstoplanandimplementaSDU-biomassprogram.Year-roundmarketsmayhavefluctuatinglevelsofdemandandvaluesthroughoutanygivenyear,butnormallythedemanddoesnotgoawaycompletely.

2.263 Multiple Markets

Somecommunitieseitherhaveexisting—orthepotentialfor—multiplemarkets.Themoremarketstherearetoexploit,thebetter.Similartoinvestmentstrategies,adiverseportfolioofmarketsprovidesforstabilityforbothsupplyanddemandconcerns.Ifonemarketisdown,chancesareanothermarketisup.

Anexampleofopposingmarketswingsistherelationshipbetweensawlogandpulpmarkets.Normally—butnotalways—whensawlogpricesarehigh,sawlogsupplytomillsincreases,andtheresultisaglutofpulplogsavailableasthesawmill’sbyproduct.Whenthishappens,thepricespaidforpulplogsdeclines—becausethesupplyexceedscurrentdemand.So,withafuels-reductionprojectthatinvolvesthesaleofmostlysmall-diameterpulplogmaterialandthepulppricesdropbelowaround$24pergreentonfordeliveredpulplogs,theprojectcontractormaydecidetoholdoffharvestingthemuntilthemarketrisesabovewhattheyconsidertobetheireconomicbreak-evenpoint.

Anotherexampleconcernstherelationshipbetweenpulpmillsandbiomassfacilitiesthatexistwithinthesamemarketarea.Ifthereisabiomassfacilitythatneedslargevolumesofhogfuel,theiraccesstosupplyofthatmaterialcouldbedrasticallyaffectedbytheriseinpulpprices.

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Biomassfacilitiesalsoareaffectedbymarket-valueswingsinnaturalgasprices.Whenutilitycompaniesoperatingmultiple-sourceenergyfacilitieshavetopaymorefornaturalgas,theirdemandforbiomassusuallyincreases.

2.264 Current and Future Market Strength

Landmanagersneedtoknowthemarketstrengthandlikelihoodofmaintainingasuitableworkforceforaccomplishingfuelsreduction,restoration,andothervegetationmanagementobjectivesutilizingsmall-diametertreeandbiomasssales.Muchofthiswillhingeonthecombinationofforest-productvalues,quantity-demandlevels,andthelikelihoodoflong-termneedsfortheproduct.

Forexample,whenresearchingthepossibilityofbuildingaSDUprogrambasedonthepost-and-poleindustry,trytoanswerthefollowingquestions:

l Withintheworkingarea(lookingoutatleastasfarasabout100miles),howmanypost-and-polecompaniesexist?

l Whatistheaveragerangeofpricesthepostmillsarepayingforrawmaterial?

l Whatistheaverageannualvolumedemandforrawmaterialforallthecompanies?

l Whatistheturnoverrateofpostcompaniesinthearea,havetheyallbeeninexistenceforalongtime,ordotheyopenandcloseonaregularbasisandifso,why(supplyproblemsormarketrelated)?

l Arethepostcompaniestryingtoexpandtheirbusinessorjustmaintaintheircurrentlevelofdemandforrawmaterial?

l Onabroaderscale(i.e.,regionally,nationally,orinternationally),doesthisparticularmarketseemtobegrowingorhavethepotentialtogrow?

Oncethesequestionsareanswered,establishingandmaintainingtheworkforcesize and type needed becomes clearer.

Whatifsomeoneinthecommunity(oraneighboringcommunity100milesaway)isconsideringinstallingabiomassenergyfacility?Ifthat’sthecase,thenit’simportanttofindouttheanswerstothesequestions:

l Whatsizefacilityisbeingconsidered(1,5,10,or100megawattsforinstance)?

l Whatwilltheannualneedsbe(tons,eithergreenorbonedry)tokeepthefacilityrunning?

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l WhatpercentageortonnageofannualfeedstockwouldneedtobeprovidedfromFederalland?

l What’sthelifeexpectancyofthefacility(i.e.,willitbeaportablefacilityorfixedwithafinancialpayoffperiodof40years)?

l Whatvaluerangemightthefacilitybewillingtopayfordeliveredchips,bundles,wholetrees,orlogs?

Findinganswerstothesequestionshelpsdecidehowlargeofacommitmenttomakeforsupplyingthebiomassandthesizeandtypeworkforceneededtoprovidethesupply.Also,ifthefacilityisanylargerthan1megawatt,thecommitmentforsupplywillmorethanlikelyhavetoinvolvemultipledistrictsandforestsaswellasState,county,city,tribal,andprivatelandownercommitments.

2.3 Project Value Mix

Thissectionconcentratesonproject-levelratherthangeneralprogramconsiderations.Understandingtheactualpotentialmixofforestproductvaluesinanygivenprojectwillbeaveryimportantelementoftheprojectdesign.

2.31 Determining if a Project Can Pay for Itself

ThefirstobjectiveforafiscallyresponsibleFederallandmanageristomaketheAmericantaxpayers’SDU-biomassprojectpayforitself.Ifappropriatedfundingisrequiredtosupplementthetreatmentcosts,thechancesofgettingfundedtothelevelnecessarytoaccomplishthefuelsreduction,restoration,orothervegetationmanagementtreatmentsmaybereducedgreatly.

Thefollowingsectionsdiscusshowtodetermineifaprojectcanbeimplementedwithoutsupplementalfunding.

2.311 Gate Price

Thefirststepistodeterminethedeliveredbiomasspriceforthearea.Thisisthepricepaidforthematerialdeliveredtoabuyingorutilizationsite.Callseveralsitestodeterminealikelygatepriceforbiomassappraisals.

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2.312 Logging Costs

Usingregionalcost-calculationmethods,determinethecostforprocessingthebiomassfromthestumpontothelanding.Thisisthetimberpropertyvalueforbiomasssaleswhenthematerialissoldfromthelanding.

2.313 Transportation Costs

Usingregionalcost-calculationmethods,calculatethecostoftransportingthebiomassfromitscurrentlocationtothebuyingorutilizationsite.Forestsestablishaprofitablehaul(PH)distanceforeachoutletorfacilityacceptingbiomassintheirrespectiveareas.

2.314 Volume and Value in Project

Thedefinitionofbiomassassumesproductssuchassawlogs,postsandpoles,firewood,andotherlocalproducts,havebeenseparatedfromthematerialthatistrulybiomass.Dependingonthelocation,biomassmaterialcanhavelittleornocommercialvalueasstumpageatitscurrentlocation.Thebiomassmaterialwillcostmoneytomoveitfromwhereitis—eitherfromwithinthestand,standing,orontheground;onalanding;ordeckedinastorageareaeitheronoroffnationalforestlands—toalocationwhereitcanbeused.Howmuchbiomassremoveddependsonhowthetransportationcostsarepaidandthedistancefromthebuyinglocationorutilizationcenter.

Iftheinvestmenthasbeenmadetogetittoalandingorstoragearea,biomasstypicallyhassufficientvaluetocovertransportationcostsoveradefineddistance.Forexample,someforestsintheSouthernRegion(R-8)use30milesasthehauldistancetowherenosubsidyforbiomassisneededtoreachautilizationlocation.Inotherwords,baseduponthecostofoperatingatruckwithdriver,thevalueofthebiomassissufficienttopayatruckertohaulbiomassupto30miles.ThisisthePHdistance.Thedistancedependsonmarketconditionsforbiomass,fuelprice,availabilityoftrucks,etc.,andthesevariablescanchangeonadaily,weekly,ormonthlybasis.ForestsneedtoestablishaPHdistanceforeachoutletorfacilityacceptingbiomassintheirrespectiveareas.Thisshouldbebaseduponaverageconditions.

Ifthematerialisstillstandinginthewoods,anIntegratedResourceServiceContract(IRSC)withaddedappropriatedfundsand/orstewardshipreceipts,inadditiontothevalueofthecommercialproducts,canpaytohavethebiomassmaterialcutandeitherleftinthewoods,loppedandscattered,machine-orhand-piled,oryardedtothelandingandpiled.Typically(underanintegratedresourcetimbercontract(IRTC),thevalueofthecommercialproductscancoverthecostsofthesebiomasstreatments),iftheinvestmenthasbeenmade

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togetthematerialtoalanding,andthepilesarewithinthePHdistance,thecontractorwillhaulittoabuyingorutilizationsite.TheIRSCandIRTCcanalsoincludeasarequirementthehaulingofthematerialtoaspecificlocationforuse.Thiswillbeanaddedcostinthecontractagainstthevalueofthecommercialproductsandmayrequireadditionalappropriatedfundsand/orstewardshipreceipts.

Biomass—eitherexistingorgeneratedfromavegetativetreatment—canbetreatedinastewardshipcontract.Fundscanbeaddedtothecontracttocompletetheneededwork,orvaluefromtheproductsremovedcanbeusedtooffsetthecostofthework.IRSCscanaccommodatemanydifferentrestorationtreatmentsrelatedtobiomass;cut-and-leaveinthestand;cut,yard,anddeck;cut,yard,andhaul,etc.WhilethePHdistanceisimportant,forestmanagersneedtorecognizethetrade-offsofrequiringbiomasstobehauledbeyondthePHdistanceanditseffectonreducingthenumberofacrestreatedornumberofprojectscompletedbecauseofthecostincurred.

InanIRSCinwhichthecontractordoesnotwantthebiomassmaterial,andthecontractrequiredyardinganddeckingofthematerial,orinatimbersalewhichhasdecksofmaterialfromacceptedanddeletedunitsthatareplannedforburning,andthepurchaserdoesnotwantthematerial,thedeckedbiomasscanbesoldinaseparatecontractusingtheFS-2400-2contract(seeFSH2409.18,53).Completeanappraisaltodeterminetheadvertisedrateforthebiomass.InusingaFS-2400-2contract,atleasttheminimumrate,plusdeposits,ischargedforthematerialtoberemoved.

Preexistingbiomassonthegroundorstandinginthewoodscannotbetreatedwithaconventionaltimbercontract.TheBrushDisposalActof1916authorizestheForestServicetocollectdepositstotreatactivity-createdfuels,orrequirethepurchasertotreatactivity-generatedfuels.Preexistingfuelscannotbetreatedbycollectedbrush-disposaldepositsorbythepurchaserinatimbersale.However,biomassiscreatedfrompurchasers’operationsinthewoodsandgeneratedonlandingsfromyardingoperations.Thepurchaserislikelytoremovethismaterial,uponagreement,ifthePHdistanceresultsinaprofit,orbreak-even.Thismaterialcanbegiventothepurchaserwithoutcharge,subjecttoagreementondepositsifneededforroadmaintenance.MechanismsforprovidingbiomasswithoutchargethatisoutsidethePHdistanceincludeB(T)3.41inthetimbersalecontract,D(T).4.1intheIntegratedResourceTimberContract,AdministrativeUsepursuanttoCFR223.2.(SeeFSH2400-8andFSM2463.)

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2.315 Appraising Biomass

Biomasshasavaluebaseduponwhereitislocatedinthesupplychain.RemovalofpilesordecksofbiomasslocatedwithinthePHdistancearetohaveanappraisalcompletedonthematerial.Depositsforroadmaintenance,asnecessary,shouldbeaddedtotheadvertisedratetoarriveatthetotalthepurchaserwillbepaying.Useasimplifiedappraisalapproach,suchasshownintheexample.Includeallapplicablecostsintheappraisal;clean-upoflandings,erosioncontrol,equipmentcleaningfornoxiousweeds,etc.Useofthetransactionevidenceappraisalsystemisnotrequired.Seethefollowingexample—asaleforrowthinningofpine.Thepurchaserdidnotwantthebiomassmaterial.Thesaleadministratoracceptedallpurchasers’workintheunitsanddeletedthemfromthesale.Thedistrictopenedthepilesupforfirewoodcutting.Allproductsofvaluehavebeenremoved.ThepilesarewithinthePHdistanceofthelocalcogenerationpowerplant.AFS-2400-2contractwillbeusedtofacilitatepaymentandtransferoftitleofthebiomasstothepurchaser.

GatePrice(deliveredbiomassprice) $25/ton

Weightofone(1)cubicfoot(cf)ofpine 52pounds

Loadingcost $18/100cubicfeet(ccf)

Profitablehaul(PH)distance 30miles

Distancetoutilizationfacility 15miles

Haulcost $12.00/ccf

Timberproperty $45.00/ccf

Roadmaintenancedeposits $1.50/ccf

Convert price per ton to a price per ccf:

($25/ton)x(1ton/2,000pounds)x(52pounds/1cf)x(100cf/1ccf)=$65/ccf

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Delivered biomass price $ 65.00

Loading cost - $ 18.00

Haul cost - $ 12.00

Subtotal $ 35.00

Rollback factor - 10% 1 - $ 3.50

Indicated advertised rate 2 $ 31.50

Minimum rate $ 0.25

Advertised rate $ 31.50/ccf

Road maintenance deposit + $ 1.50

Total rate paid by purchaser $ 33.00/ccf

Timber property ($31.50 - $0.25) $ 31.25

To National Forest Fund (NFF) $ 0.25

1 The rollback factor reflects differences in sale conditions that may not have been reflected in the appraisal, and allows for the risk that markets or other economic conditions may change during the period of the contract (FSH 2409.18, 45.32). Rollback factor shall not exceed 10 percent.

2 The indicated advertised rate results from the subtraction of all costs, and the rollback factor, from the delivered biomass price.

In this example, the purchaser would pay $33.00 per 100 cubic feet for the material, which includes $31.50 per 100 cubic feet for stumpage for the biomass, and $1.50 per 100 cubic feet in road maintenance deposits. If the subtotal in the example was less than the minimum rate, the biomass would be given to the purchaser without charge for the material. The forest would collect road maintenance deposits for haul over forest roads utilizing a bill for collection as the collection instrument. Not all of the timber property could be collected on this contract.

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Appraisalcouldhavebeencompletedintons,oranyunitofmeasure,aslongastheappraisaldataisinthesameunitofmeasure.

IfthepileswerefurtherthanthePHdistance,thebiomassmaterialcanbegiventothepurchaserwithoutcharge.Roadmaintenancedepositswouldbecollected,ifrequired.

Ifthebiomassmaterialresultedfromtheprecommercialthinningoftrees,thepoundspercubicfootnumberwouldbedifferent.Thegateprice(deliveredbiomassprice)likelywouldnotchange.

2.316 Minimum Rate for Biomass

ThenationalminimumrateforbiomasssoldwithinthePHdistanceis$0.25per100cubicfeet,$0.08perton,or$0.50perthousandboardfeet.Regionsandforestscanestablishtheirownminimumrateforbiomass,butitcannotbelessthanthenationalminimumrate.

2.317 Timber Property and Biomass

Timber-propertysalesinvolverecoveryofvalueinexcessofstumpagevalueorstanding-treevalue.Timber-propertyvaluesarethecostofmanufacturefromthestandingtreetomanufacturewherethesaleismade,whichisusuallyindecks.Thiswouldincludetheconstructedvalueoffellingandbucking,skidding,decking,treatingslash,preventingerosion,andaproportionateshareofoverheadanddepreciation(FSH2409.18,47.3).Timberpropertyshouldbeaddedtobiomasssalestotheextentthatwillresultinadvertisedratesthatarereflectiveoffairmarketvalueforthematerial.

Determinetheaverageunitratesforthespeciesorproductswithpropertyvaluefortheentirevolumeinthespeciesorproductgroup,basedonitscurrentstateofprocessing.Enterthetotaltimber-propertyvalueinoneoftheblanklinesonthebottomoftheregionalappraisalsummaryreport.IncompletingtheFormFS-2400-17-ReportofTimberSaleportionafterthesaleismade,subtractthetimber-propertyratesfromtheratesbidbythehighbiddertodevelopthestatisticalhighbid.

BiomasstransportedbeyondthePHdistanceisdeficitsales,andshouldbegiventothepurchaseratnocharge.(SeeFSM2462[2409.18Chapter80]and36CFR223.5through223.11)Notimberpropertywouldbecollectedinthissituation.

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2.318 Material Larger Than Biomass, but Smaller Than Sawtimber

Regionshavevariousnamesforthissizematerial:nonsawtimber,chip-n-saw,pulpwood,chipmaterial,pee-weewood,etc.Thesizeofthismaterialvariesbyregionbaseduponforestplandirection,manufacturingcapabilitiesoflocalmills,predominatetreesizebeingofferedforsale,cruisingspecifications,utilizationstandards,etc.Manysawmillshaveretooledtofacilitateprocessinglogsdowntoatopdiameterinsidebarkof3.5inchesandlower.Processingofthesesmallerlogsintolumberisdependentuponfavorablemarketconditions,abilitytodevelopandmaintainnichemarketsforthislowervalueproduct,andthenumberofcurrentandanticipatedordersforthismaterial.

Forestsshouldseektomaximizethevalueoftheproductsbeingutilizedfromthissizematerial.Whenlumbermarketsarehigh,thismaterialwillbemadeintolumber.Whenlumbermarketsarelow,forestsshouldseektosellposts,poles,andfirewood.Theremainingmaterialwouldlikelygointochipsorbiomass,orbeburnedonthelanding.Whatthismeansrelatedtotimbersalesisthattheappraiserdeterminestheamountofthiswoodtobenonsawtimber,pulp,chip-n-saw,etc.,andhowthismaterialwillbeappraisedandincludedinthecontract,eitherassawtimberornonsawtimber,baseduponcurrentmarketconditions.Timber-salepurchasersdetermineitsvaluethroughthecompetitivebiddingprocess.Theremainderofthiswoodhopefullywillberemovedandutilizedasbiomass,insteadofbeingburnedonthelanding.

SomebiomasssalesmayhavepilesthatarelocatedbothinsideandoutsidethePHdistance.Inappraisingthesepiles,calculatethepriceofthebiomassinsidethePHdistanceanddevelopaweightedaveragepricebasedupontheentirevolume.Seethefollowingexample.

VolumeoutsidethePHdistance(giventopurchaser) 25ccf

VolumeinsidethePHdistance 100ccf

AppraisedvalueofbiomassinsidePHdistance $35.00/ccf

Weightedaveragepriceforthesaleofthisbiomass;

(100ccfx$35)/(25ccf+100ccf)=$28.00/ccf

ForestsreceivecreditforthebiomasssoldwhenthevolumeisenteredintoTimberInformationManager.Forestsalsocanreceivecreditforbiomassthatisgiventopurchasersatnocost(FSM2462[2409.18Chapter80]and36CFR223.5through223.11)byenteringitintoTimberInformationManagerasapermitwithnovalue.Atableforconvertingbiomasssoldinaunitofmeasureotherthan100cubicfeetisincludedinthechapter6.

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Afterfollowingthroughwiththepreviouscalculationsandresultingstumpageprice,assemblethetotalestimatedvolumeandvalueoftheproject,brokendownbythemarketableforestproducts.

Nowmaybeagoodtimetodoalittlemorecollaboratingwithpotentialentrepreneurs.Theultimatewaytodetermineiftheprojectcanpayforitselfwillbetoputitupforbid.Ifitsells,theansweris“yes!”However,inordertoimprovethechancesofgettinganacceptablebid,findoutifthepriceisrightforhavingasellableproject.

2.319 Minimum Requirements, Rules of Thumb

Various economic computer models may be a useful tool to utilize in determiningifit’sagoodideatoofferaSDU-biomassforest-productsale.Thesemodelswouldbemostusefulunderthefollowingcircumstances:

l Thereisnolocalentrepreneurinthecommunityyet.

l ThereisanentrepreneurinthecommunitywhoisinterestedingettingintotheSDU-biomassmarketingbusiness,buttheydonothaveenoughpracticalexperiencetodetermineforthemselvesiftheprojectiseconomically viable.

SomemodelscurrentlyavailableincludetheFuelReductionCostSimulatorat:

http://www.fs.fed.us/pnw/data/frcs/frcs_home.htmandtheUsersGuideforSTHARVESTprogramathttp://www.fs.fed.us/pnw/pubs/gtr582.pdf.

ThemostreliablemethodtodeterminewhethertheprojectmaybeabletopayforitselfistodiscussitwiththepotentialSDU-biomassprojectpurchaser(s).DonotaskthemexactlywhattheywouldbewillingtopayforstumpageonaSDU-biomasssale,butperhapsapproachapotentialpurchaserandaskaquestion,suchas“Ifasmall-diametertimbersalewasofferedupforaround$20to$30pergreenton,isthereanyinterest?”Ifareplyisreceived,andtheansweris“yes,”that’sgood.Iftheansweris“no,”findoutwhyandstartlookingatwaystoreducetheproject’sminimumbid.Perhapssomenice-to-docontractrequirementswereincludedintotheproject,suchasrequiringnewgravelsurfacingalonganentirehaulroutewhenmaybespotgravellingsectionsofroadthatreallyneeditwouldsufficefortheshortterm.Themainfocuswithmostdenselystockedsmall-diametertimberstandtreatmentsisonfuelsreduction,makinganinitial“roughcut”toreducefuels,putthestandinamoreeconomicallymanageablecondition,andstarttrendingthestandconditionstowardslong-termspeciescompositionobjectives.

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Ageneralruleofthumbforsmall-diametertimbersalessuccessfullysoldontheIdahoPanhandleNationalForestsis:

l ForSDUsalesthatincludeamixofroughly60-percentsawlog-and40-percentnonsawlog-forestproducts(averagecuttreesizeforsaleasawholebeing7to8inches),andthatrequiretractorloggingsystems,aminimumbid(includingdepositsforroadmaintenanceandbrushdisposal)ofaround$15to$30pergreentonwillusuallysell.Reducethisvalueaccordinglyforskylineandhelicoptersystems.OnlyoneSDUsaleontheforesthasbeensoldthatusedhelicopteryardingincombinationwithfeller-bunchersforaportionofthesale,andthepurchaserpaidabout$22pergreenton(atcalendaryear2000costs)forthesale.

Rulesofthumbforsmall-diameterbiomasscontractsthathavebeensoldsuccessfullyinthePacificNorthwestRegion(R-6)include:

l AbuyingsiteorutilizationfacilityiswithinthePHdistance.

l Handlingofthematerialisminimized(decreasescost).

l Pilesarepreferredorveryshortskiddingdistance.

l Noskylineorhelicopteryardingofthematerial.

l Sellthematerialorincludeinanexistingcontractwhenpersonnelandequipmentareonsiteorinthearea(noextramove-in/move-outcost).

l Otherrequiredwork(repilingofslash,erosioncontrol,etc.)isminimized.

l Thereisno—orverylow—roadmaintenanceorotherdeposits.

Remember,thesearejustrulesofthumbbeingusedinspecificareasofthecountry,andthevaluesfluctuateontheseforestsbasedontheindividualsalecomposition,loggingsystems,andamultitudeofothervariables.Everycommunitywillhavesomewhatdifferentrulesofthumbbecauseofdifferencesintransportationcostsandotherfactors.

Strivetosettheminimumbid(includingdeposits)underwhatthemarketwillbear,andthenletthecompetitiondeterminewhattheactualmarketwillbear.Rejoiceifthereisevenonebidder.

2.32 Supplemental Funding Mechanisms To Offset Deficit Operations

Iftheprojectcannotbeaccomplishedsolelythroughthesaleofforestproducts,creativefinancingcouldbeanoption.Thegoodnewsisthattherearemoreoptionsavailablenowforsupplementalfundingthanthereusedtobe.The

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badnewsisthatalotofotherpeopleareafterthesamemoneyandthereisnotenoughforeverybody.Thefollowingsubsectionsdiscusstwofundingcategories,non-FederalandFederal.

2.321 Non-Federal Funding Mechanisms

2.3211 Partnerships

Theremaybeseveraloptionstoobtainsupplementalfundingthroughnon-Federalmechanisms.ThesemechanismsmayincludesourceslikepartnershipswithStateorprivateentities,usedincombinationwithstewardshipcontractsorpossiblyothercontractinginstruments.Community-basedgroups,wildlife-conservationorganizations,andmaybeevenStateorcountygovernmentsmaybeinterestedincontributingfundsorothercost-reducingresources(labororequipmentforinstance)tohelpaccomplishtheproject(s).

Partnershipswithuniversitiestoconductbiomass-utilizationresearchmayprovideanotherfundingmechanism.

Collaborativepartnershipswithgroups,suchasTheRockyMountainElkFoundation,TheNatureConservancy,andsimilarorganizations,couldhelpaccomplishacombinationofbiomass-utilization,fuels-reduction,andhabitat-improvementobjectivesbypoolingresources.Ifthesefundingmechanismssoundlikeanopportunity,contactalocalforestgrantsandagreementsspecialisttoseeifthereisapossibleagreementinstrumentthatwillwork.

VisitthePartnershipResourceCenterWebsitehttp://www.partnershipresourcecenter.org/index.shtmlformoreideasabouthowtomakepartnershipshelpaccomplishprojectsthatcannotpayforthemselvesthroughcommercialsalesofforest products.

2.322 Federal-Funding Mechanisms

TherearemanypossibleFederal-fundingmechanismsavailabletohelpfinancedeficitproject(s).Thesemechanismsfallintotwogeneralcategories:appropriatedfundingandfundingthroughFederalgrantsincombinationwithpartnerships.

2.3221 Appropriated Funding

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Iftheprojectcannotbeaccomplishedthroughaforestproductsalecontract,considerutilizinganintegratedfundingstrategyamongthedistrictorforesttimberstandimprovement,fuels,orevenwildlifedepartmentstoaccomplishmultipleresource-managementobjectives.

Forexample,combinedistrictprogramfundingfromtimber,timber-standimprovement,andfuelsappropriationstoaccomplishthinningadensetimberstandnormallyconsideredtobea“precommercialthinning”operation,followedbyaservicecontracttocollectbucked-upsmalltreesusingaminiaturegrapplemachineandtransportanddeckthesmall-diametermaterialatanearbyroadsideorlanding,whichcouldthenbesoldtopost-and-polemarketers.Thiskindofintegratedfundingmechanismwouldaccomplishtimber-standimprovement,fuelsreduction,andincreasedbiomassutilizationobjectiveswithasingleproject.

2.3222 Federal Grants or Appropriations Through Partnerships or Other Entities

Federalfundingmechanismsmaybeavailablethroughspecialbiomassgrant programs awarded to local community collaborative groups or private businesses.

Also,resourceadvisorycommitteesthatareresponsibleforexpenditureofCraig-Wydenappropriationstocountiespossiblymayhelpfundselectbiomass-utilizationprojects(pendinganextensionofthisauthorization).

Somefederallyfundedgrantprogramsfocusingonsmall-diameterandbiomass-utilizationprojectsincludethoseadministeredbytheForestProductsLabandtheNationalFirePlan.

Tolearnmoreabouthowthesefundingmechanismsmayhelpthedeficitprojecthappen,visitthefollowingWebsites:ForestProductsLabBiomassGrantprogram at: http://www.fpl.fs.fed.us.htmlandNationalFirePlanat: http://www.healthyforestsandrangelands.gov/

Also,theForestServiceRuralCommunityAssistanceprogrammayprovidebothtechnicalassistanceaswellasfundingfordevelopingnewforestproductbusinesses at http://www.fs.fed.us/spf/coop/programs/eap/index.shtml

2.4 Harvesting and Yarding Technologies (Low-tech to High-tech)

Theobjectiveinremovingsmall-diametertreesandotherlow-or-novaluebiomassistousetechnologiesthatarethemosteconomicalandalsomeetresourceprotectionneeds.Newtechnologyiswonderfultousewhenandwheretheeconomicscanwork,butlandmanagersmustbekeenlyawarethatsomeofthecurrentlyavailablebiomassharvestingandtransportingequipmentcould

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costwellover$500,000.Findingthemosteconomicalmeanstoremoveandutilizebiomasswillcontinuetobeoneofourbiggestchallenges.

Thissectiondiscussessomeofthecurrentandprototypeequipmentthatmaybeavailable,andhowthesetechnologiescanbeappliedpractically.Thediscussiondoesnotincludeanexhaustivelistingoftechnology,butratherasamplingofwhatisavailableorinprototypestage.Thetechnologyisdiscussedbasedonthreeformsofharvestingandyardingsmalltreesandbiomassfromtreatmentareas:whole-treeandlog-length,chippedandbundled,orasloosematerial.Somerulesofthumbfordeterminingthebestcombinationofequipmenttouseare provided also.

2.41 Whole-tree and Log-length Equipment

Avarietyofequipmentisavailabletohandlewhole-treeandlog-lengthmaterial.Let’sstartwithsmall-scaleequipmentandworkourwaytolarge-scale.

2.411 Horses

Forreallysmalljobs,don’truleoutthebiologicaloption!Actually,horseloggingpresentsanoptionfortreatingsmallparcelsofsmall-diameterandbiomass-timberstands.

Figure 1—Horses.

Highlysensitiveareas,suchasaroundpublicrecreation,maybeloggedeffectivelywithminimaldisruptionusinghorses.Smallparcelsoffederallymanagedlandswithinurban-interfaceareasmayalsoprovideopportunitiestoutilizehorse-loggingforaccomplishingfuels-reductionwork,perhapsinareasthathaveadjacenthomeownerswhoaresensitivetonoise.

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Thefollowingequipmentinformationinsubsections2.412through2.414isexcerptedfromareportpostedontheUniversityofIdahoForestProductsDepartmentWebsite(Small-scaleFuelsReductionEquipmentbyJeffHalbrookandDr.HarryLee:http://www.cnrhome.uidaho.edu/default.aspx?pid=73790

2.412 Iron Horse Pro Mini-Skidder

Thetrackeddesignallowsthismachinetoworkoveravarietyofconditionsincludingsnowandslash.Logsarewinchedontotherearbunkbyanonboardwinch.Aloadissecured,andtheoperatorcontrolsandwalkswiththemachinetoalandingwherethelogsaredecked.Slashonthissitewaspiledandburned.

Figure 2—Iron Horse Pro mini-skidder.

Engine:9horsepowerHonda

Winch:2,500-poundcapacity(50feetofcable)

Advantages:

l Easilyfitsintothebackofaconventionallight-dutytruck.

l Canworkonsnowandslash.

l Doesnotneedatrailsystemtooperate.

l Smallandhighlymaneuverable.

l Easytooperate.

2.413 All-Season Vehicle RC-30 with Radio Controlled Winch

ThismachinehasbeenmodifiedandguardedbyUniversityofIdahoDepartmentsofForestProductsandMechanicalEngineering.Modificationsincludeaquickdetachablelogwinchutilizingtheallseasonvehicle’s

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hydraulicsandaremotecontrolforthewinch.Logswerewinchedtoroadsidedecksbothupanddownhilloverslopesvaryingfrom10to36percent.Slashonthissitewaspiledandburned.

Basicallyaskidsteer(Bobcat,Uniloader,etc.)withtracksinsteadofwheels.

Figure 3—All-season vehicle.

Thewinchhaspullingcapacityof4,600pounds.

130 feet of cable.

30horsepowermachine.

3.1poundspersquareinchgroundpressure.

Advantages:

l Highlymaneuverable.

l 0-degreeturningradius.

l Easilytransportedbyconventionallight-dutytruck.

l Wincheslogstoroadsideforloadingontologtruck.

2.414 Modified Farm Tractor with Log Loader and Remote-Controlled Winch

ThissystemconsistsofaLamborghini105horsepower4-wheel-drivetractorwith2drumIglandremotelycontrolledwinchandaframe-mountedPatulogloader.Thetreesandbrusharefelledmanuallyandwholetreesandbunchesofsmallertreesarewinchedtotheroadsideortotrails.Merchantablelogsareremovedandtheunmerchantablelimbs,topsbrush,andsmalltreesarepiledwiththegrappleloaderforlaterburning.Largeslashpilescanresultattheroadortrailsideforburningortransportfromthesite.

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Anexperiencedtimberfallerandtractor/winch/loaderoperatorarerequiredforthissystem.Thesystemworkswellfromtheroadsideoronterrainlessthan20percent.

Figure 4—Modified farm tractor with log loader and remote-controlled winch.

Advantages:

l Minimalsoildisturbanceintheforest.

l Capableofhandlingsawtimberupto20inches.

2.415 Skid Steer (Bobcat, etc)

Similartotheall-seasonvehicle,themachineshowninthephotowasusedtoloadpost-and-polematerialontoaflatbedtruck.Thesekindsofmachinesalsocanincludecuttingattachments.

Figure 5—Skid steer.

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Advantages:

Small and multifunctional.

l Bestappliedinsituationswheresmallandflatwoodlotsneedtreatment,forexampleinFireSafe-typefuels-treatmentprojectsinurban-interfaceareas.

2.416 Unique One-of-a-Kind Equipment

Herearesomeexamplesofhowlocalentrepreneursdevelopedtheirownequipmenttoaccomplishfuelsreductiontreatmentsinaneconomicalmanner.

Figure 6—Home-built forwarder.

Advantages:

l It’sinexpensive.

l Effectivemethodtomovelargerthanlight-dutytruckloadsofmaterialto collection point.

Here’sanexampleofasmallhome-builtskylinesystemthatalsoloadstheyardedmaterial(postsandpolesinthiscase)ontotheflatbedtruck.Thisset-upis capable of yarding material as far as 400 feet.

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Figure 7—Home-built skyline-swing loader - hauler.

Advantages:

l Anotherrelativelycheapsystem.

l Notonlyyardsmaterial,butalsoloadsandhaulsit.

2.417 Forwarders

Movingintolarger-scaletreatmentareasrequireslargerandmoreexpensiveequipment.Forthoseprojectsitmaybenecessarytousesomeformofcut-to-lengthharvestingsystem(eithermechanicalorwithhand-operatedchainsaws).Forwardersofferawaytoyardmaterialtoalandingwithoutdraggingthelogsontheground.

Figure 8—Forwarder.

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Advantages:

l Cancarryapproximately14tonsoflogsatatime,withoutdraggingonground.

l Lowgrounddisturbance,especiallywhenoperatingonslashmats.

l Canoperateonslopesuptoabout40percentifkeptfromside-hilling.Side-hilltravelmustnotexceed8-to10-percentslopesduetotip-overrisk.Excavatedskidtrailsshouldbeusedwhenslopesexceedthislevel.

l Canalsoloadlogtrucks,eliminatingtheneedforanotherpieceofequipment.

2.418 Grapple skidder

Anotherwaytoefficientlyyardmaterialisbyusinggrappleskidders.Thephotoshowssmall-diametersawlogsprocessedinthewoodsbeingyardedthroughatreatmentareathathasbeenthinnedtoaspacingofapproximately20feet.

Advantages:

l Areparticularlyeffectivewhensmalldiametermaterialhasbeengatheredintobunches.

l Canbeusedtomoveslashorloosematerialshortdistances.

Figure 9—Grapple skidder.

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2.419 Small-scale harvester

Iftheworkisintimberstandsthatdon’tincluderemovalofmuchlargetimber(roughlyinthe4-to18-inchdbhrange),small-scaleharvesterscouldbeutilized.Severalmanufacturerscurrentlyofferthistypeofmachine.

Figure 10—Small harvester.

Advantages:

l Thesemachinesnormallyweighabouthalfasmuch,aremorenimbleyetcanmatchtheproductionlevelandworkonsimilarlysteepslopes(50-percentplus)astheirfull-sizedcousins,andarecheapertopurchase.

l Veryusefulforlarge-scaletreatmentareasconsistingofmostlysmall-diameter timber stands.

l Cancutthetreestodesiredlength,processingtheminthewoodsratherthanatalanding.

2.4110 Small-scale Feller-Bunchers

Similartothesmall-scaleharvesters,small-scalefeller-buncherscanbehighlyusefulfortreatingtimberstandsconsistingofsmall-diametertrees.

Advantages:

l Speed.

l Hasalittlemoretree-fellingdirectionalcontrolthanharvesters.

l Usuallyhavecapabilitytograspmultiplestemswhilecutting.

l Workswellasgiant“weedwhacker,”meaningtheycanslashunmerchantablematerialastheyarealsocuttingdownandsettingasidetheuseabletrees.

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Figure 11—Small-scale feller-bunchers.

2.4111 Standard-sized Feller-Bunchers

Thesemachinescurrentlyarebeingwidelyusedformoretraditionalsawlog-harvestingtreatments.Theyalsoareusefulforsmall-diameterandbiomasstimber-standtreatments,buttheyarebestusedintimberstandsthathaveatleasta30-to50-percent“traditional”sawlogcomponenttoberemoved.

Figure 12—Standard-sized feller bunchers.

Advantages:

l Wellsuitedforworkingindensemultidiameter-classtimberstands.

l Veryeconomicalfortreatmentsin“doghairthickets”wherehand-operatedchainsawingwouldbenearlyimpossible.

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l Manymachinesareavailableforpurchaseontheusedmarket—soitcouldbeoneofthemosteconomicalmachinestouseinlow-valuetimberstandsifitcanmeetyourotherresourceneeds.

l Effectiveatperformingprogressiveslashingofunmerchantablematerialwhilealsoharvestingmerchantablematerial.

l Canoperateonfairlysteep(50to55percent)slopesandcanbeusedincombinationwithskylineorhelicopteryarding.

2.4112 Standard-sized Harvesters

Thesemachinescurrentlyarebeingusedwidelyformoretraditionalsawlog-harvestingtreatments.Theyalsoareusefulforsmall-diameterandbiomasstimber-standtreatments,buttheyarebestusedintimberstandsthathaveatleasta30-to50-percent“traditional”sawlogcomponenttoberemoved.Becausethesemachinesprocesstreesintodesiredloglengthsinthewoods,theyareusedbestincombinationwitheithergrappleskiddersorforwarders.

Figure 13—Standard-size harvester.

Advantages:

l Wellsuitedforworkingindensemultidiameter-classtimberstands.

l Manymachinesareavailableforpurchaseontheusedmarket,soitcouldbeoneofthemosteconomicalmachinestouseinlow-valuetimberstandsifitcanmeetotherresourceneeds.

l Canoperateonfairlysteepslopes(50to55percent)andcanbeusedincombinationwithskyline.

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2.4113 Small-scale Skyline Yarders

Small-scaleskylineyarderscancomeinhandyonsteep(40-percentorgreater)terrainandincludeportabletow-behindmodelsaswellastracked-orwheeled-mountedself-propelledmodels,someofwhichcanevenbeoperatedoff-road(i.e.,asridge-runners).

Figure 14. Towable skyline yarder. (photo courtesy of Koller)

Figure 15. “Excaliner.” (Excavator-mounted skyline yarder.)

Advantages:

l Canyardmaterialfromslopesthataretoosteeporsensitiveforground-basedequipmentuse.

l Normallycanretrievematerialasfaras1,200to2,000feetoffroadsorridges.

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l Excavator-mountedversionsaremultipurpose.Theycanbeconvertedtobackhoe,harvester,etc.relativelyeasily,savingontheneedforadditionalloggingequipment.

l Usesbucketforbrace,whichisagoodthingifyou’reworkinginsmall-diametertimberstandsthatlacklargetreesneededforguylineanchorsforotherskylinesystems.

2.4114 Helicopter

Althoughitisrarelyeconomicaltoremovesmall-diameterandbiomassmaterialfromatreatmentareabyhelicopter,ithasbeenusedincertainpartsofthecountry,soitshouldnotberuledout.Whenusedincombinationwithafeller-bunchersothat“bunches”ofsmall-diametertreescanbeflowninasingletrip,theeconomicsmayallowforuseofthissystemwhenlessexpensivesystemsjustwillnotwork,orwhenroadbuildingisnotanoption.

Figure 16—K-Max helicopter.

Advantages:

l Canretrievematerialfromareasthatarehardtoaccessoronsteepslopes.

l An alternative to costly road and bridge building.

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2.42 Chipping Equipment

Chippingsmalltreesandslashusesasystemthatcanbringinasmuchtonnageofbiomasswithasfewtransportsaspossibleinordertomaximizeeconomicefficiency.Whenconvertingbiomasstoelectricityortransportationfuels,atsomestageoftheprocesssmalltrees,tree-tops,andlimbshavetobeconvertedtochips.Thebigquestionthatremainsunansweredisatwhatstageoftheprocessisitmosteconomicallyefficient?

Theoptionsforremovingsmall-diametertreesandbiomassfromatreatmentareainchipformarelimited.Itcanbeaccomplishedtwoways:chippedinthewoodsandtransportedouttoroadsystemsorchippedatlandingsafterbeingyardedinaswholetrees.Whenconsideringin-woodschipping,wearebasicallyenteringunchartedwatersasfarasthesetechnologiesbeingusedforFederalland-managementpracticesisconcerned.Ideasarebeingofferedonhowsomeequipmentisbeingusedcurrentlyinothercountries,isbeingmanufacturedforpurposesotherthanbiomassutilization,orsomeprototypeequipmentmaybeusedinourquesttoutilizebiomass.

2.421 In-woods Chipping Equipment

2.4211 Tracked Chipper

Amobileoff-roadchippingmachinelikethislookslikeitmighthavesomepotential,butitneedsatow-behindtrailerofsomekindtocatchthechips.

Figure 17—Morbark Model 20/36 Track Chipper. (Photo courtesy of Morbark, Inc.)

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2.4212 Terrain Chipper

ThephotosshownherearedesignsofmachinesthatareuntestedintheUnitedStates.Thesekindsofmachinehavethecapabilitytofelltreesandthenchiptheminthewoodsratherthancutthemintologs.Thechipsareblownintoadetachablechipcontainer.

Figure 18—Valmet 801c BioEnergy Chipper. (Photo courtesy of Valmet.)

Figure 19—In-woods chipper and chip container transporter. (Photo courtesy of Karsten Frisk, Danish National Forest and Nature Agency.)

2.422 Chipping at Landings

ChippingatlandingsisacommonpracticeonprivatelandsintheUnitedStatesandothercountries,comparedtoin-woodschipping.Chippingslashedmaterialbroughtintolandingsoccurseitherasaresultofforestryorfromresidentialdevelopment.Chipperscomeinallshapesandsizes(andpriceranges).Whenitcomestochippingloggingresiduesatlandingsites,thechallengeisnotinmakingthecurrenttechnologyworktomeetFederallandmanagementneeds,butrathermakingitworkeconomically.Ourchallengeistofindtheright

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combinationofchippingandtransportationequipmentusedtodeliverthechipstothenearestfacilityinthemosteconomicallyfeasiblemanner.Chiptransportationequipmentoptionsarediscussedinthenextsection.

Figure 20—Dual chipping operation, flail chipper on left making “clean” pulp chips and tub grinder on right making “dirty” fuel chips. (Photo courtesy of Morbark, Inc.)

2.43 Bundling and Loose Material Handling Equipment

RemovingloggingresiduesasbundlesandasloosematerialhasbeenongoinginScandinaviancountriesforsometime,butnottoanyproductionlevelintheUnited States.

2.431 Bundling

Bundlinginvolvesconvertinglooseloggingslashintocompressedbundles(i.e.,slashlogs)thatcanbecuttodesiredlengthsandheldtogetherwithmultiplewraps of twine.

LimitedtestingofthebundlingtechnologywasconductedrecentlyintheUnitedStatesandCanada,withearlyindicationsthatthetechnologymaybeeconomicallyandoperationallyfeasibleforFederallandmanagementpurposes.Atthistime,onlyonebundlerhasbeensoldinNorthAmericatoaprivateloggingcontractorinMichigan.However,duetoinsufficientmarketsatthistime(2007)themachineisnotbeingoperated.TheSouthernResearchStationhaspublishedareportonthetestingoftheTimberjack1490DslashbundlerontheWebandalsohasareportavailableonCD.Thereportcanbeviewedat:www.fs.fed.us/forestmanagement/WoodyBiomassUtilization/products/bundling/documents/bundler_report_final.pdf).Filedoesnotopen(swc)

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Figure 21—Timberjack 1490D Slash Bundler, first test site in North America, Bonners Ferry Ranger District, Idaho Panhandle National Forest (NF), 2003.

Figure 22—Forwarding bundles to landing. (Bonners Ferry Ranger District, Idaho Panhandle NF, 2003.)

Figure 23—Another manufacturers’ version of a slash bundling machine. This one quickly converts to a forwarder. (Photo courtesy of Valmet.)

Advantages:

l Providesawaytobringlooseslashintolandingsinacompressedform,allowingformoretonnagetobebroughtintoacentrallocationmoreeconomicallyfortransportingtoabiomassorchippingfacility.

l Providesforprolongedstoragebenefitsatbiomassfacilitiescomparedtochipsthatmaybemoresusceptibletospontaneouscombustion.

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2.432 Loose Material Handling Equipment

Handlinglooseslashisprobablytheleasteconomicalwaytogatheruploggingresidue,exceptinsmall-scalesituations.Thereisavarietyofequipmenttoretrieveloosebiomass.Theoptionsforremovingbiomassfromatreatmentareainlooseformarelimited.Similartochip-formremovals,loose-materialremovalcanbeaccomplishedtwoways:gatheredupinthewoodsandtransportedouttoroadsystemswhereitcanbechippedonsiteortransportedtoachippingfacility,orifthematerialisalreadyatlandingsinlarge-processorpilesfromwhole-treeyarding,itcanthenbeloadedintotransportvehiclesandtakentochippingfacilities.Thephotosbelowshowafewexamples.

2.4321 In-woods Loose Material Equipment

Figure 24—Mini-excavator normally used for piling slash could toss biomass in off-road-capable trailer.

Figure 25—Load-compacting HavuHukka forwarder for transporting logging residues from stump to satellite terminals. (Photo courtesy of Vapo.)

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2.4322 Loose Material Handling at Roadsides and Landings

Figure 26—Crane loading loose landing slash pile material into large “dumpster-style” container. (Photo courtesy of Craig Rawlings, Montana Community Development Center.)

Figure 27—Small excavator used to load loose landing slash pile into a horizontal grinder. (Bonners Ferry, Idaho, 2006).

Figure 28—Loader on right of photo used to retrieve loose material from nearby slash piles and feed material to the excavator. (Bonners Ferry, Idaho, 2006).

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2.5 Transportation Technologies

Similartotheprevioussection,someofthecurrentandprototypetransportationequipmentthatmaybeavailable,andhowthesevarioustypesoftechnologycanbepracticallyappliedwillbediscussedlater.Thediscussiondoesnotincludeanexhaustivelistingoftechnology,butratherasamplingofwhatisavailableorinprototypestage.Thetechnologyisbasedonthreeformsoftransportingsmall-diametertreesandotherwoodybiomassfromtreatmentareas:whole-treeandlog-length,chippedorasloosematerial,andbundled.Rulesofthumbwillbeprovidedfordeterminingthebestcombinationofequipmenttouse.

2.51 Whole-tree and Log-length Transport

Thedecisiontotransportsmalltreesintree-lengthorlogformfromatreatmentareaisdictatedbytheharvestsystembeingusedaswellastheformtheprocessingfacility(i.e.,sawmillorchipmillforinstance)purchasingthematerialwantsitdelivered.Awidevarietyoftransportvehiclesexistthataredesigned to meet local or regional needs for maneuverability and load capacity. Thephotosbelowshowjustafewversionsavailableacrossthecountry,someofwhicharesetupforhaulingtree-lengthandothersthatcarry“short-logs,”andstillothersthatcarry“bolts.”

Figure 29—A load of whole-tree roundwood “whips” at a post-and-pole business in Montana. (Photo courtesy of Karen Kovatch, Roundwood West Corp., Seeley Lake, MT.)

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Figure 30—Long-log (approximately 25- to 35-foot logs) truckload of smallwood. (Bonners Ferry Ranger District, Idaho).

Figure 31—Short-log (18 foot) load of small-diameter sawlogs on double bunks. (Bonners Ferry Ranger District, Idaho.)

Figure 32—Lake States pulp-log load in “bolt” form. (Bob Rummer, USFS).

2.52 Chip and Loose Material Transport

Whiletransportationoftree-andlog-lengthmaterialoffharvestareasisrelativelyeasyandeconomicaltoaccomplish,transportingbiomassoffof

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harvestareasinchip-orloose-formcreatessomespecialchallengesforlandmanagers.Twoofthelargestchallengesareprovidingsuitableaccesstotypicalchipvans,andwhendealingwithlow-standardforestroadsnotsuitablefornormalchipvans,beingabletofindsuitablechiporloosematerial-haulingvehiclesthatcanhaulaneconomicalamountoflow-valuebiomass.

Thephotosbelowshowatypicalchipvanbeingusedineasyaccessareasandalsootherdesignsofchipandloosematerialtransportvehicles,mostofwhicharenotyetbeingusedonaregularbasisonFederalland-managementprojects.

Figure 33—Standard chip van with a load capacity of about 30 green tons of chips. The vehicle is on a flat gravel road on private property being developed for residential construction. Notice low ground clearance and long length of chip van, which restricts its use on low standard forest roads. Slash piles are being chipped in a horizontal grinder and chips are being fed directly into van (Bonners Ferry, Idaho).

Figure 34—Roll-off container vehicle. Prototype stage, but transport vehicles like this may be economically feasible to use on low-standard roads when high ground clearance and maneuverable vehicles are required to gain access to biomass. (Photo courtesy of Craig Rawlings, Montana Community Development Corp. [MCDC])

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Figure 35—Another prototype version of a roll-off container vehicle. This one can transport two empty containers in a “nested” configuration. (Photo courtesy of Craig Rawlings, MCDC.)

Figure 36—The roll-off container has a dumping feature and can be used to transport chips or loose slash. Economics would dictate short haul distances (Photo courtesy of Dave Atkins, USFS).

2.53 Bundle Transport

Technologyfor“bundling”looseslashintocompressed,cut-to-lengthslashlogsthatareheldtogetherwithmultiplewrapsofbalingtwineiscommoninScandinaviancountries,butcurrentlyonlyonecommerciallyownedbundlerexistsintheUnitedStates.Oncethebundleshavebeenforwardedtoacentralroadsidelandingarea,transportvehiclessimilartothoseusedforshort-loghaulingcanbeusedtotransportbundles,butthebunksneedtobespacedtoaccommodatepreferredbundledlengthsofaround10to12feet.

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Figure 37—Loading decked bundles in Finland. (John Deere/Timberjack photo.)

2.54 Rules of Thumb To Select Best Transport Methods

Withintheconfinesofthelandmanagers’roadaccessandcontractualrequirements,theloggingcontractordeterminesthemosteconomicaltransportmethodtouseforhaulingforestproducts,whetherit’stree-length,log-length,chipped,looseslash,orbundled.Landmanagersmustcollaboratewithpotentialpurchasersofbiomassduringtheprojectplanningphaseinordertoarriveatmutuallyfeasibleoperationalmethods.

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NEPA—CHOOSE THE RIGHT TOOL Whyweren’tenvironmentalanalysisproceduresunderNEPAdiscussedearlier?

TheprevioussectionsdiscussedtheprocessofdevelopingalocalSDU-biomassprojectorprogramsimilartothefiresuppressiontacticofsizingupafire,butinthiscasethediscussionisafuels-reductionorrestorationprojectratherthanawildfire.

So,bygoingthroughthissize-upprocessforaSDU-biomassproject,thereadershouldhaveanunderstandingontheproject’ssizeandtheresourcesavailable(orwhat’sstillneeded)toaccomplishtheprojectorprogram.Now,thequestionishowtointegratetheNEPAtoolsavailabletoaccomplishthemission.

ThetoolscurrentlyavailableinourNEPAtoolboxprovideanopportunitytointegrateshort-termwithlong-termprojectplanningstrategies.ThissectiondiscussesandgivesexamplesofhowtousethevariousNEPAauthoritiestogetaSDU-biomassprogramstartedandkeepitgoing.

3.1 Questions To Contemplate

Uponcompletionoftheprojectorprogramsize-upprocess,answeringthesequestionsiseasy:

l Basedonthevegetativecompositionandinfrastructuralresourceavailabilityorpotentialwithinthemanagementarea,willtheprogrambestbeimplementedasalong-termsmall-scale(i.e.,lessthan1,000acresperyear)orlarge-scaleprogram,orboth?

l Ifcommittingtoalong-termsmall-scaleprogram,doesitmakesensetoplanforaccomplishingfuelsreductionandrestorationtreatmentsoverlarge-scaletreatmentareas,ordoesthemanagementareaconsistofonlysmall-scaleparcelsofvegetationneedingtreatment?

l Ifcommittingtoalong-termlarge-scaleprogram,doesitmakesensealsotoconductshort-termplansforaccomplishingfuelsreductionandrestorationtreatmentsonsmall-scaletreatmentareaswhilealsoplanningforlarge-scaleprojects?

l Isthereanexistingforestproductsinfrastructureincommunitieswithinthezoneofinfluencethatneedstobesustainedintheshort-term?

l Whatisthebudgetandpersonnelrequirementtoimplementeithersmall-scaleorlarge-scaleprojects?

Withtheanswerstothesequestions,thenextstepistoselecttherightNEPAproject-planningtoolstoaccomplishtheproject(s).Sections3.2through3.5discusstheavailableNEPAauthoritiesandgiveexamplesoftheirpotentialapplication.

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RefertotheNEPAHandbooklinkfordetailsoneachcategorybeingdiscussedhttp://fsweb.wo.fs.fed.us/directives/fsh/1909.15/

3.2 Potential Projects Under Authority of FSH 1909.15, Section 31.12

Underthisauthority,fuelsreduction,hazard-treeremoval,visualenhancement,publicsafety,andrecreational-sitemaintenancegoalscanbeaccomplishedonashort-termandsmall-scalebasis.

Forexample,ifadistrictofficeoroutlyingworkstationsaresitedwherethereisaconcernaboutoverstockedorunhealthytreesnearstructures,utilizeSection31.12(3)toconducteitheracommercialthinningorsalvagesale,service-contractthinningwithproductremovalthroughsalvagerights,orforce-accountthinningandusetheavailablematerialforotheradministrativepurposes,suchasfencebuilding,providingfirewoodtonearbycampgrounds,etc.

Iftherearesimilartreeconditionsbutlocatedatcampgrounds,dayuseareas,orevenhikingtrails(trailheads),utilizetheauthorityunderSection31.12(4and5)instead.

Anotherpotentialuseofthisauthoritycouldbetoconductroadsideclearingofbrushandtreesalongcut-and-fillslopesandremovehazardoustreesthatcouldfallontheroads.Doingthisworkwouldimprovepublicsafety,includingimprovedevacuation-routeconditionsduringwildfires.Italsowouldfacilitatesnowplowingbyprovidingroomtoplowsnowofftheroadsides,perhapsonroadsusedinwintermonthstoaccessrecreationalskiorsnowmobiletrails.Inthiscase,Section31.12(4)wouldbeused.

Figure 38—Problem, a Forest Service road used in the winter season to access a Park and Ski cross-country ski trail and parking area, with no room to “wing” snow off road and provide safe turnouts for vehicles. (Bonners Ferry RD, Idaho).

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Figure 39—Solution, remove brush and trees using Section 31.12 (4) and a commercial timber sale contract to make room for snow removal. Treatment is taking place on the RIGHT side of the photo!

Figure 40—Products removed, slashing not completed. Snow plowing and public safety vastly improved following this treatment. (Bonners Ferry RD, Idaho).

3.3 Potential Projects Under Authority of FSH 1909.15, Section 31.2

Section31.2oftheNEPAHandbookprovidesforavarietyofsmall-scaleproject planning tools.

Therearemanypossiblewaystointegrateallthevariousactivitiesthatfallunderthesecategoriesofactionsintoasmall-scaleSDU-biomassprogram.Whetherthecategoricalexclusionsareusedasasolemeanstodrivetheprogram,orasagap-fillerwhileplanninglarge-scaleprojectsor,morelikely,asacomponentofafullyintegratedNEPAstrategy,launchingprojectsunderthesecategoriesisagoodwaytogetthesupplychainmoving,becausetheanalysisprocessismuchmorestreamlinedandlesstime-consumingthanconductinglarge-scaleenvironmentalassessmentsandenvironmentalimpactstatements.

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Also,whenworkingonfuels-reductionprojectswithinmanywildlandurbaninterfaceareas,landmanagersarelikelytobedealingwithsmallparcelsofFederallandasopposedtovastcontinuousforestandbrushlands.Undertheseconditionsitmakesperfectsensetoutilizethesecategoriesofactionstoaccomplishthetreatments.

Figure 41—Here’s an example of a small hazardous fuels-reduction project (about 90 acres) alongside a county road and adjacent to private residences. The project was authorized using the Healthy Forest Initiative categorical exclusion under FSH 1909.15 Section 31.2 (10). This photo shows part of the project before treatment.

Figure 42—Same project area during fuels-reduction treatment. Pictured here is a feller-buncher in the background cutting trees and an in-the-woods processor in the foreground that is processing short logs down to a 4-inch top diameter. The logs are then skidded out using a grapple skidder.

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Figure 43—Same photo point after fuels-reduction treatment. Public scoping commenced in September 2003, Decision Memo was signed April 2004, the sale was sold July 2004, and completed in May 2005. This project was initiated at the request of an adjacent landowner due to fire concerns and the NEPA and sale prep work was partially funded using Craig/Wyden money appropriated through a local Resource Advisory Committee. (Bonners Ferry RD, Idaho)

3.4 Potential Projects Under Authority of 36 CFR Part 215

Thereisgoodexistingguidanceonhowtoprepareenvironmentalassessmentsandenvironmentalimpactstatements,butrelativelylittleguidanceabouthowtousethemstrategicallyasatooltoaccomplishlandmanagementobjectives,especiallywhenitconcernsSDU-biomassfocusedprojects.

Whenplanningprojectsthatfallundertheauthoritiesof36CFRPart215,butthatexceedthelimitationsforcategoricallyexcludedactivities,strivetomaximizetheusefulnessofenvironmentalassessmentsorimpactstatementsbyincludingasmanyacresofsmall-diametertimberstandsthatneedfuelsreduction,restoration,orothervegetativetreatmentsintheprojectareaaspossible.

Section2.15ofthisguideaddressedprojectintegrationwiththeneedsoftimberstandimprovement,fuels,wildlife,watershed,fisheries,andotherresourceshopsintheworkingarea.Oftentimes,specialvegetationtreatmentsproposedseparately from a large project may not be viable economically or may not be considered a priority project given limited budgets.

Includingspecialtreatmentareaswithinalarge-scaleprojectwillprovideanopportunitytomakethoseprojectsviable,eitherbybeingwashedinwithotherhigher-valuetreatmentareas,bygeneratingtrustfundsthatcanthenbeusedtofundthetreatment,orbyusinganIRTCorIRSCintradinggoodsfortheservicesoftreatingthoseareas.

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Eveniftherearenocurrentmarketsforaparticularforestproduct,gettingNEPAcoverageforatreatmentareainadvanceofitbecomingeconomicallyviableallowsaquickresponsetoanemergingmarkets.Lackingpreapprovednewmarketdevelopmentprojectareas,it’simpossibletoexploitanewmarketifittakesayearormoretoprovideaprojectarea.

Also,evenifitisdeterminedthatthelocalSDU-biomassprogramwillentaillong-termbutsmall-scaleoperations,ropinginlarge-scaletreatmentareasunderoneanalysisdocumentwillnotonlyaccomplishlandscape-scaletreatments,italsowillhelpdemonstrateefficientplanninganddemonstratealong-termcommitmenttokeepentrepreneurialpartnersandtheirfinancialbackerssuppliedwiththedesiredforestproduct(s).

UsinganicemixofmultipleNEPAdocuments,theApache-Sitgreaves’WhiteMountainStewardshipProjectisagoodexampleoflarge-scaleplanningtoaccomplishlong-termbutsmall-scaleSDU-biomassprojects.Formoredetailsontheirplanningstrategy,visittheirWebsiteat:http://www.fs.fed.us/forestmanagement/projects/stewardship/results/documents/WhiteMountainStewardshipSW2004_web.pdf

3.5 Potential Projects Under Authority of 36 CFR Part 218 (HFRA)

TheHealthyForestsRestorationAct(HFRA)of2003(P.L.108-148)containsmanyprovisionstoexpeditehazardous-fuelreductionandforest-restorationprojectsonspecifictypesofFederallandthatareatriskofwildlandfireorinsectanddiseaseepidemics.TheHFRAhelpsruralcommunities,States,Tribes,andlandownersrestorehealthyforestandrangelandconditionsontheirlands.

Exceptforsomeuniquelimitationsandrequirements,usingtheHFRAauthoritiesinyourNEPAplanningstrategytoimplementSDU-biomassprojectswouldbesimilartothatusedunderPart215procedures.RefertotheHFI-HFRAWebsiteandfieldguideformoredetailsat: http://fsweb.wo.fs.fed.us/hfra/

Andfinally,here’sawordaboutNEPAprojectplanningstrategiesthattakeintoconsiderationprojectlocationselectionasitrelatestocontroversy.Ifthereisachoicebetweenstartingupaprojectinanareathatincludeslotsofhotbuttonissuesversusalocationwithlowcomplexityandlowpotentialforcontroversy,choosethelesscontroversialarea(s)first.

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CONTRACT AND PERMIT STRATEGIES Congratulations!ItisassumedthattheNEPAstrategyisimplementedandthere

isaprojectareatobeginoperationsin.Whatcontractorpermitstrategyisthereto use.

Onceagain,usingfiresuppressionterminology,theinitialprojectsize-upshouldbecompletedatthispointandthereforetheanswerstothequestionsarealreadyknown:

• Cantheprojectbeaccomplishedentirelythroughthesaleofforestproducts?

• Iftheprojectdoesn’thaveenoughforestproductvaluetobeaccomplishedthroughacommercialforestproductsale,isthereenoughvaluetoperhapsuseanIRTCorIRSCintradinggoods(i.e.,forestproducts)fortheservicesofacontractortocompletethetreatment,perhapswhilealsosupplementingthetradedgoodswithadditionalmoney?

• Iftheprojectisnoteconomicalevenwithtradingtheavailablegoodsforservicesandsupplementwithadditionalfunding,isthereanopportunitytoletthepublicmakeuseoftheavailableproductsfortheirpersonaluse(i.e.,firewood,postsandpoles,Christmastrees,etc.)?

• Istheonlywaytoaccomplishtheprojectisbypayingacontractortodoit?

ThissectiondiscussesthecontractingandpermittinginstrumentscurrentlyavailabletolandmanagersandhowtousethemintheoverallstrategytoaccomplishSDU-biomassprojects.ThissectionincludesFree-Usepermits,includingAdministrativeFreeUse;Personal-UsePermits;ServiceContracts;CommercialTimberSaleContracts;andStewardshipContracts.Thesectionalsowilldiscuss“rulesofthumb”forselectingthebestinstrumentandconsiderations for transitioning values of products.

Forfulldetailsonthevariouscontractingtools,visittheappropriatelinkstotheForestServiceHandbooksandManuals: http://fsweb.wo.fs.fed.us/directives/fsm/2400/

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Figures 44 and 45—Typical timber sale landing and grapple piles, ready to be burned, or perhaps in situations like this we would be justified to use the administrative free use authorities to dispose of this material for biomass energy (donate to a local Fuels for Schools project for example)?

4.1 Free-Use Permits (Permit Form 2400-8)

PleaserefertoFSM2462(2409.18—TimberSalePreparationHandbook,Chapter80—UsesofTimberotherthanCommericalTimberSales)and36CFR223.5through223.11forspecificsituationswherefreeusemaybegranted.SeeFSM2404.28fordelegationofauthority.

4.2 Personal-Use Permits (Permit Form 2400-1)

HereareafewsuggestionsonwhatkindsofSDU-biomassworkcanbeaccomplishutilizingthepersonal-usepermitauthority:

Itispossibletodirectpersonal-usecharge-permitactivitiesintorecentlycompletedtimber-saleareasinordertrytoutilizeposts,poles,firewood,andotherforestproductspriortoburninguptheloggingresidue.Thisisatimewhencoordinationbetweensmall-salesspecial-forestproductsprogrammanagers,saleadministrators,andfuels-treatmentpersonnelcomesinhandy.

Anotherexamplewouldbeifcommercialmarketsforposts-and-polesarelowornonexistentintheareabutdemandishighforpersonalusesofposts-and-poles(i.e.,inranchingcommunitiesperhaps),settingupaspecialpersonalusepost-and-poleharvestingareamightbeagoodidea.

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4.3 Service Contracts

Usingservicecontractsandappropriatedfundingtoaccomplishfuels-reductionandrestorationtreatmentsmaystillprovideanopportunityforSDU-biomassutilization.

IfexistingmarketscannotpayforthecostofremovalofSDU-biomassmaterialduringvegetationtreatmentprojectssuchastraditionalprecommercial-thinningtreatmentsorduringpost-harvestbrush-disposaltreatments,theremaybeopportunitiestoincreaseutilizationwhenimplementingthesetypesofservicecontracts.

Forexample,precommercial-thinningcontractscouldrequiretransportandpilingordeckingofthecuttreesatalocationthatcouldbeaccessibletosecondarysalvagerssuchasbiomassfacilityoperatorswhomaywishtobringinequipmenttochipthepiledbiomassandtransportittotheirfacility.Givenappropriatemarketavailability,it’spossibletoconsidercontractuallyrequiringthatthebiomassbetransportedoffthenationalforest.

4.4 Timber Sale Contracts (FS-2400-3(S,T,P), FS-2400-4, 2400-6(T), FS-2400-2)

Chapter53ofForestServiceHandbook2409.18providesthebestreferencesourcetodeterminewhichofthesecontractinstrumentswouldbeauthorizedforusetoaccomplishaparticularSDU-biomassproject.

Thelinktothishandbookdirectionis http://fsweb.wo.fs.fed.us/directives/fsh/2409.18/

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ExcerptedbelowisExhibit01fromtheForestServiceHandbook,theContract/PermitUseMatrix.

53 - Exhibit 01

Contract/Permit Use Matrix

CONTRACTS PERMITS

Type of Use Complex, Simple, Simple, Charge Free Large Small Low- Use Sales Sales Value

2400-6 2400-3S 2400-4 2400-1 2400-8 SalesContract Form FS- 2400-6T 2400-3T 2400-3P

UseforComplexSales1/ Yes No No No No

UseforPremeasuredSales Yes 2400-3T Yes Yes Yes

UseforScaledSales Yes 2400-3S No No No

Use Primarily for Timber Sales for Standing TreesorLogProducts Yes 2400-3S(T) Yes No3/ No 3/

UsePrimarilyforChargeforSpecialForest Products No 2400-3P No Yes17/ No

UsePrimarilyforFreeUse No No No No Yes18/

Use for Timber Settlement Yes Yes Yes No No

UseforAdministrativeFreeUse Yes Yes Yes No Yes

UseforConvertibleorNon-Convertible ForestProducts No19/ Yes Yes Yes Yes

MaximumPeriodofContractorPermit 10Years 1Year23/ 1 Year 1 Year 1 Year

MaximumAdvertisedProductValue NoLimit NoLimit22/ $10,000 $0 $0

MaximumDirectSaleProductValue $10,000 $10,000 $10,000 $300 $209/

MaximumContractVolume NoLimit 2000CCF NA14/ NA 14/ NA 10/

No.ofPaymentUnitsorSubdivisions NoLimit NoLimit 1 1 NA

Sales Advertised Yes 12/ Yes 12/ Yes 12/ No No

DirectSalesPermitted2/ Yes 12/ Yes 12/ Yes 12/ Yes No

SpecialRequirementsAllowed Yes Yes Yes4/ Yes 4/ Yes 4/

Non-RecurringSpecialProvisionsor RequirementsAllowed Yes Yes Yes4/ Yes 4/ Yes 4/

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Contract/Permit Use Matrix—continued

CONTRACTS PERMITS

Type of Use Complex, Simple, Simple, Charge Free Large Small Low- Use Sales Sales Value

2400-6 2400-3S 2400-4 2400-1 2400-8 SalesContract Form FS- 2400-6T 2400-3T 2400-3P

PaymentatFlatRates Yes Yes Yes Yes No

PaymentatEscalatedRates21/ Yes No No No No

AssociatedCharges(RoadMaintenance, Scaling,andSlashDeposits) Yes Yes Yes Yes No

KV/SSF/BDFundPlansAllowed Yes Yes Yes5/ Yes 5/ No

PaymentisRefundable Yes Yes Yes No No

ExportRequirementsWestof 100thMeridian Yes Yes Yes No3/ No

Painting and Branding West of 100thMeridian Yes Yes Yes No3/ No

ContractModificationAllowed Yes Yes Yes NA16/ NA 16/

ContractTermExtension Yes No Yes13/ No No

Additional Timber Allowed Yes Yes Yes 7/ No No

PerformanceBondRequired Yes Yes Yes8/ No No

TypeofPerformanceBond Any Any Cash15/ No No

UseofPaymentGuarantees Yes Yes No No No

PeriodicPaymentsRequired Yes Yes No No No

DownpaymentRequired Yes Yes No No No

Cooperative Agreements Allowed Yes Yes No No No

SBASet-asideSales Yes Yes No No No

SSTSSet-asideSales Yes Yes No No No

Use of Normal Operating Seasons Yes Yes No No No

Market-relatedContractTermAddition Yes No No No No

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Contract/Permit Use Matrix—continued

CONTRACTS PERMITS

Type of Use Complex, Simple, Simple, Charge Free Large Small Low- Use Sales Sales Value

2400-6 2400-3S 2400-4 2400-1 2400-8 SalesContract Form FS- 2400-6T 2400-3T 2400-3P

Contract Term Adjustment Yes Yes No No No

Timber Subject to Agreement Yes Yes No No No

DefaultDamageProvisions Yes Yes No No No

3rd Party Agreements Allowed Yes No No No No

UseWhenSpecialProvisionsMustbeAdded toProtectKnownHeritageResources Yes Yes No No No

UseWhenSpecialProvisionsMustbeAdded toProtectHabitatofThreatened, Endangered,andSensitiveSpecies Yes Yes No No No

UseWhenSpecialProvisionsMustbe AddedtoProtectCaveResource Yes Yes No No No

ReportofTimberSale(FS-2400-17)Required Yes Yes Yes11/ No No

TEAAppraisal(FS-2400-17) Yes Yes Yes11/ No No

Timber Sale Statement of Account Yes Yes No No No

UseofTransferred-inPurchaserCreditfor AdvanceDeposits Yes No No No No

ScheduledRateRedetermination20/ Yes No No No No

UseofPerformanceBondforFelledTimber Yes No No No No

TripartiteorBipartiteLandExchangeProvisions Yes No No No No

CatastrophicDamageProvisions Yes No No6/ No No

SpecifiedRoadWork Yes No No No No

TemporaryRoadConstruction Yes Yes No No No

IncompletelyMarkedTimber Yes No No No No

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1/Indicatorsofcomplexsalesinclude,butarenotlimitedto:

a.Salesrequiringspecializedloggingequipmentsuchasacableorhelicopter,

b.Elaboraterequirementsforprotectionofthreatenedandendangeredspeciesorculturalresources,or

c.Elaborateorintricateresourceprotectionrequirements.

2/Thereisa$10,000limittoanindividualperfiscalyear,exceptfortimbersettlement sales.

3/Permitsshallnotbeusedforlogproductswestofthe100thmeridian.Useofpermitsforlogproductsisoptionaleastofthe100thmeridian.

4/Specialrequirementscanbelistedonlyinthespaceprovidedfor“OtherConditions.”ContractFormFS-2400-4islimitedto4pages.PermitFormsFS-2400-1andFS-2400-8arelimitedtoatotalof10“OtherConditions.”

5/PlansareallowedonaContractFormFS-2400-4orPermitFormFS-2400-1thatmeettherequirementsofForestServicedirectives(FSMandFSH).District-wideK-VPlansforprojectsarenotallowed.SalvageSalePlansmaybeDistrict-wide.

6/Themutualcancellationauthorityat36CFR223.116shallbeusedtocancelsaleswithcatastrophicdamage;ortheymaybemutuallymodifiedorallowedtoproceedwithoutmodification.

7/ Additionaltimberisallowedbutshouldnotexceed50percentoftheoriginaltotalcontractproductvolume.The$10,000limittoanindividualperyearofdirect sales applies.

8/PerformancebondsarerequiredforContractFormFS-2400-4whenproductvaluesaregreaterthanorequalto$2,000andoptionalforproductvalueslessthan$2,000.

9/Amaximumvalueof$20infreeusecanbegrantedtoindividualsbydistrictrangers($100forforestsupervisors).Seetheregulationsat36CFR223.5through223.11forotherprovisions.

10/Freeusetoindividualsisrestrictedbyvalue,exceptinAlaskawhereitisrestrictedbyvolume(36CFR223.5through223.10).

11/Theseformsarerequiredforsaleswithadvertisedproductvaluesgreaterthanorequalto$2,000.Theyareoptionalforsaleswithadvertisedproductvalueslessthan$2,000.

12/ Allsalesareadvertisedwhencompetitionexistsorthesalevalueisequaltoorgreaterthan$10,000.

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13/Thiscontractcanbeextended,nottoexceedatotalcontracttermof1year.

14/Thelimitisbasedonvalue.

15/Thistypeofpreferencebondcanbecashorequivalent,suchasbankorpostalmoneyorder,personalcheck,creditcard(whereapplicable),officialbankcheck,orcertifiedcheck.

16/Theforestofficermaymakepenandinkchangesforsuchitemsasanewpermitareaorvehicleinformation.Changestoname,address,ID,orproductdesignation are not allowed.

17/Productsonchargepermitsmayberesold.

18/Productsonfreeusepermitsmaynotberesold(36CFR261.6(f)).

19/Thiscontractdoesnothavestandardorspecialprovisionsdevelopedtosellnon-convertibleforestproductsandisnotrecommended.

20/Rateredeterminationmaybescheduledforsalesequaltoorgreaterthan7yearsincontractlength,butdonotschedulerateredeterminationbeforetheendof year 5.

21/ExceptforsituationsthataredisadvantageoustotheGovernment,ForestServicetimbersalecontractsthatexceed1yearincontractlengthintheWesternUnitedStatesshouldprovideforstumpagerateadjustment(FSM2431.34).

22/ForContractFormFS-2400-3P,themaximumadvertiseddollarvalueis$100,000.

23/Oneyear,exceptforsalesofnon-convertibleproductswhere3yearsisallowed.

4.41 Standard “B(T)” and Special “C(T)” Contract Provisions to Improve SDU-biomass Utilization

SomeoftheavailabletimbersalecontractscanincludetheuseofStandard“B(T)”,suchasB(T)3.41andother“SpecialC(T)”provisionsthatcanhelpimproveutilizationofSDU-biomassproducts.DirectionsforusingtheseprovisionscanbefoundinFSH2409.15,Chapter42.14(a)andFSH2409.18,Chapter53.43.Refertothefollowinglink: http://fsweb.wo.fs.fed.us/directives/fsh/2409.18/

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4.5 Stewardship Contracts and Agreements

TheForestServiceandtheBureauofLandManagement(BLM)receivedanewauthoritytoimplementstewardshipcontractingandagreementsinthe2003AppropriationsAct(PublicLaw108-7).

DirectionforuseofstewardshipcontractingisprovidedinChapter60ofFSH2409.19atthefollowinglink:http://www.fs.fed.us/forestmanagement/projects/stewardship/direction/index.shtml

Todifferentiatewhattheterms“timbersale,”“servicecontract,”and“stewardshipcontracts”meaninthelegislationandthedirection:

Atimbersaleisthesaleofcommercialforestproducts,alwayswithreturnofreceiptstotheU.S.Treasury.

Servicecontractsarecontractsforservices(suchasprecommercialthinning,trailmaintenance,andfuelreduction)thatarefundedwithappropriateddollarsanddonotreturnrevenuestotheU.S.Treasury.

StewardshipcontractsarecontractsbytheForestServiceandBLMforservices(suchasprecommercialthinning,trailmaintenance,andfuelreduction)inwhichsomeofthecostsmaybeoffsetbythevalueofvegetativematerialremovedandmaynotreturnrevenuestotheU.S.Treasury.Inaddition,anyexcessreceiptscouldbeusedforotherstewardshipcontracts.

ExcerptedbelowisaportionofthehandbookdirectionExhibit01,whichistheStewardshipUseMatrix:

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62.1 - Exhibit 01

Stewardship Contract Use Matrix

CONTRACTS

Integrated Integrated Integrated Integrated Type Resource Timber Resource Timber Resource Service Resource Service of Contract (IRTC) Contract (IRTC) Contract (IRSC) Contract (IRSC) Use FS-2400-13 FS-2400-13T Scaled Tree Scaled Tree Measurement Measurement

BestValueRequired Yes Yes Yes Yes

Use for Premeasured Sales No Yes No Yes

Use for Scaled Sales Yes No Yes No

TradeGoodsforServices Yes Yes Yes Yes

RetainReceipts Yes Yes No No

LessthanFullandOpenCompetition Allowed Yes Yes Yes Yes

FullNEPAcompliancerequired Yes Yes Yes Yes

Advertise Contracts Yes Yes Yes Yes

ContractingOfficer Timber Timber Service Service

MaximumLengthofOriginalContract 10Years 10Years 10Years 10Years

ServiceContractAct(SCA) wagesrequired No No Yes5/ Yes 5/

Davis-BaconActwagesrequired No No Construction Construction only only

Localwoodswageratesapplicable Yes Yes No No

SpecialRequirementsAllowed Yes Yes Yes Yes

PaymentatFlatRates Yes Yes Yes Yes

PaymentatEscalatedRates1/ Yes Yes No No

AssociatedCharges(Road Maintenance,Scaling,andSlash Deposits) Yes Yes Yes Yes

KV/SSF/BDFundPlansAllowed Yes Yes No No

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Stewardship Contract Use Matrix—continued

CONTRACTS

Integrated Integrated Integrated Integrated Type Resource Timber Resource Timber Resource Service Resource Service of Contract (IRTC) Contract (IRTC) Contract (IRSC) Contract (IRSC) Use FS-2400-13 FS-2400-13T Scaled Tree Scaled Tree Measurement Measurement

ExportRequirementsWestof100th Meridian Yes Yes Yes Yes

PaintingandBrandingWestof100th Meridian Yes Yes Yes Yes

ContractModificationAllowed Yes Yes Yes Yes

ContractTermExtension Yes Yes No No

Additional Timber Allowed Yes Yes Yes Yes

Type of Bond Security Any 6/ Any 6/ Any Any

UseofPaymentGuarantees Yes Yes Yes Yes

PeriodicPaymentsRequired No No No No

DownpaymentRequired No No No No

BidGuarantee No No Waived Waived

PerformanceBondRequired Optional7/ Optional 7/ 8/ 8/

Cooperative Agreements Allowed Yes Yes Yes Yes

SBASet-asideSales Yes9/ Yes 9/ Yes Yes

SSTSSet-asideSales Yes10/ Yes 10/ No No

Normal Operating Season for product removal Yes Yes No No

Normal Operating Season for completionofservicework3/ Yes Yes No No

SBARoadOption Yes Yes No No

ReimbursementofBondPremium Yes Yes Yes Yes

Periodic Adjustment of Cost of ServiceWork Yes Yes Yes Yes

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Stewardship Contract Use Matrix—continued

CONTRACTS

Integrated Integrated Integrated Integrated Type Resource Timber Resource Timber Resource Service Resource Service of Contract (IRTC) Contract (IRTC) Contract (IRSC) Contract (IRSC) Use FS-2400-13 FS-2400-13T Scaled Tree Scaled Tree Measurement Measurement

Market-RelatedContractTermAddition Yes Yes No No

Contract Term Adjustment Yes Yes No No

Timber Subject to Agreement Yes Yes No No

DefaultDamageProvisions Yes Yes No No

3rd Party Agreements Allowed Yes Yes Yes Yes

UseWhenSpecialProvisionsMust beAddedtoProtectKnown HeritageResources Yes Yes Yes Yes

UseWhenSpecialProvisionsMust be Added to Protect Habitat of Threatened,Endangered,and Sensitive Species Yes Yes Yes Yes

UseWhenSpecialProvisionsMust beAddedtoProtectCaveResource Yes Yes Yes Yes

ReportsideoftheFS-2400-174/ Yes Yes No No

TEAAppraisalSummary(FS-2400-17) Yes Yes Yes Yes

TSA Statement of Account Yes Yes Yes Yes

UseofTransferred-inPurchaser CreditforAdvanceDeposits No No No No

ScheduledRateRedetermination2/ Yes Yes No No

Use of Performance Bond for FelledTimber Yes Yes Yes Yes

TripartiteorBipartiteLandExchange Provisions Yes Yes No No

CatastrophicDamageProvisions Yes Yes No No

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Stewardship Contract Use Matrix—continued

CONTRACTS

Integrated Integrated Integrated Integrated Type Resource Timber Resource Timber Resource Service Resource Service of Contract (IRTC) Contract (IRTC) Contract (IRSC) Contract (IRSC) Use FS-2400-13 FS-2400-13T Scaled Tree Scaled Tree Measurement Measurement

SpecifiedRoadWork Yes Yes Yes Yes

TemporaryRoadConstruction Yes Yes Yes Yes

IncompletelyMarkedTimber Yes Yes No No

1/ExceptforsituationsthataredisadvantageoustotheGovernment,stumpagerateadjustmentisrequiredintheWesternU.S.incontractswithlengthsof3yearsormore,andthereisanavailableindex(FSM2431.34).Stumpagerateadjustmentmayberequiredincontractswithlengthsmorethan1year,butlessthan3years,wherethereisanavailablelocalmarketwithseveralcompetitiveparticipantstoprocessand/orutilizeincludedproductsorinothersituationswhereitwouldbeadvantageoustothegovernmenttodoso.Forestsmayincludeinsolicitationstoallowcontractorsthechoicetoelectstumpagerateadjustmentintheirtechnicalproposalsincontractsoflessthan3yearsinlength.Evaluatethechoiceaspartoftheentireproposalthatwillresultinthebestvalueforthegovernment.ContractsintheWesternU.S.lessthan1yearinlengthdonothavetoincludestumpagerateadjustment.

2/Schedulearateredeterminationforcontractswithalengthlongerthan5years,pursuanttoK/T-D/T.3.5#ScheduledRateRedetermination.

3/EstablishaNormalOperatingSeasonforeachserviceworkactivity.GrouptheseintonomorethantwodaterangesandincludeintheIntegratedResourceTimberContract.FollowprocedurelistedinIandIT.2.1foraddingdaystothecontractrelatedtodelaysandinterruptionsinserviceoperations.See62.1-Exhibit02forsamplecalculationofaddingcontracttimeandadjustingcontracttermination date.

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4/OnlythenameofthesuccessfulbiddercanbeincludedontheFS-2400-17fordistributiontothepublic.

5/ServiceContractAct(SCA)wagesapplyoncontractsgreaterthan$2,500invalue.

6/Securebondswithcorporatesurety,depositedsecurities,cash,irrevocableletterofcredit,orassignmentofsavingsaccountorcertificateofdeposit(FSH6509.11k§83.3).

7/ See 65.12 for more information.

8/TobeusedinIRSCcontractswithproductremoval.See65.11formoreinformation.

9/IRTCcontractsareeligibleforSBAsetaside.

10/SSTSmaybeusedforstewardshipcontracts.

4.6 Rules of Thumb for Selecting Best Contract Instrument

Whenconsideringwhichcontractingtool(s)touseforprojectimplementation,therearethreegeneraloptions:

l Option1—Thefirstpriorityistomaketheproject“payforitself”anduseacommercialtimbersalecontractorpersonalusepermitthatistailoredtothesizeandforestproductcompositionoftheproject,andalsothecapabilities(bothequipmentandfinancial)ofthepotentialpurchaser(s).

l Option2—Thesecondprioritywouldthenbetotrytomaketheprojectatleastpartiallypayforitselfandutilizeoneoftheappropriatestewardshipcontractsthatarealsotailoredtothesizeandforestproductcompositionoftheprojectandalsothecapabilities(bothequipmentandfinancial)ofthepotentialcontractor(s).

l Option3—Ifneitherofthepreviousoptionsisfeasibletoaccomplishtheproject,thefinaloptionwouldbetotrytofindenoughfundingtoutilizeaservicecontractforthework.Ifthiscontractingmechanismisused,theobjectiveshouldbetousethisasameanstocreateaforestproductmarketthatcouldallowatransitionintostewardshipandcommercial product sale contracts.

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4.7 Considerations for Transitioning Values of Products

Withthelong-termobjectiveoftransitioningwoodybiomassforestproductsfrom“novalue”to“havingvalue,”considerthatasthetransitionismade,iffree-useorpersonal-useauthoritiesarebeingusedtodisposeofloggingresidues,atsomepointthebiomassproductswillhavetobeofferedcompetitively as a commercial product.

SincetheForestServicedoesnotcurrentlyhavestandardratesorunitsofmeasureestablishedfortopwood,limbs,andneedlesthatmakeupalargeportionofloggingresidues,asmarketsforbiomassaredeveloped,theissuesofwhetherornottoestablishratesfor“looseslash,”chips,bundles,orwhateverotherformisdeterminedbyfuturebiomassindustriestobethemosteconomicaltoremovefromourfuelsreduction,restoration,orothervegetativemanagementtreatment projects will need to be addressed.

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PROJECT (SALE) PREPARATION STRATEGIES Thissectionfocusesonon-the-groundpreparationstrategies,including

stewardshipandcommercialtimbersaleprojects.Thepurposeofthissectionistoprovidecost-savingmeasuresforthoseprojectsthataremarginallyfeasiblefromaneconomically“sellable”standpoint.Inmanycases,fieldprepworkinsmall-diameterdoghairthicketscancostmuchmorethantraditionalsaleprepworkduetothedifficultyinwalkingthroughdensethicketsandalsoduetohavingtomarkmoretreesperacrethanwouldbethecaseinmoreopenandlarge-diametertimberstands.

Figure 46—Care to wander through the timber stand ahead of this harvester with a paint gun in your hand and designate trees to be cut? This particular stand was leave-tree marked. Choosing the wrong method of designating timber can cost big bucks and waste time. (Dan Len photo, Arapaho-Roosevelt NF.)

5.1 Cost-Saving Measures

5.11 Methods of Designation

Whenattemptingtotreatdensethicketsoftimber(aswellasotherinstances)minimizingtheuseofpaintandtheconnectedcostsofapplyingithasthepotentialtosavetensofthousandsofdollarsinprojectprepcost.

UtilizingtheDesignationbyDescriptionorDesignationbyPrescriptioncontractprovisionsthatareauthorizedforusebytheWashingtonOfficemaymakethedifferencebetweenbeingabletocosteffectivelyprepareaSDU-biomasstimbersaleorstewardshipcontractandjusthavingto“defer”theprojectuntilstandageandvaluesincreaseoruntilnatureprovidesafireorinsectmortality-induced salvage sale opportunity.

Refertothefollowinglinkforthelatestinformationanddirectionforuseofcontract designation provisions: http://fsweb.wo.fs.fed.us/fm/contracts/tim_updates/index.shtml

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5.12 Methods of Volume Determination

DirectiononvolumedeterminationcanbefoundinForestServiceManual2440andForestServiceHandbook2409.12.

Thelinkstothosedirectivesare: http://fsweb.wo.fs.fed.us/directives/fsm/2400/

and

http://fsweb.wo.fs.fed.us/directives/fsh/2409.12/

Themainpointtorememberwhenchoosinganappropriatecruisingsystemforlow-valuetimbersalesorstewardshipcontractsistobeasefficientaspossible.Also,strivetomeetdesignatedcruiseaccuracystandardasclosetothemaximumallowableaspossible.Forexample,donotover-cruisejustbecauseachievinga20-percenterrorisbetterevenwhentherequirementisa30-percenterror.

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CONVERSION FACTORS AND GLOSSARY Conversion Factors for Woody Biomass Utilization

HerearesomewoodybiomassconversionfactorsthatarecommonlyusedbynaturalresourcemanagersinthePacificNorthwest:

1. ThegasolinemarketintheU.S.isabout118billiongallonsperyear.Thatmeansabout323milliongallonsperday.

2. Thetheoreticallimitofconversionofethanolfromwoodis120gallonsperton.Ahigh,butachievablefigureisabout80gallonsperton.

3. With370milliontonsofbiomassavailable(dryweight),ifitwereallconvertedtoethanol,itwouldyield29.6billiongallonsofethanol.

4. Ethanolisless“energydense”thangasoline.Ittakes1.6gallonsonethanoltoproducethesameenergyasagallonofgasoline.(29.6/1.6=18.5billiongallonsof“equivalent”gasoline)

5. Soitworksoutthat370milliontonsofbiomasscouldbeconvertedto57daysworthoftransportationfuelfortheU.S.(18.5/.323=57.28)

Toput370milliontonsofbiomassintoperspective,theU.S.currentlyconsumesabout300milliontonsofwoodperyear,interesting.

FOREST FUEL TREATMENT/BIOMASS UTILIZATION

BIOMASS CONVERSION FACTORS

1greenton(GT)ofchips = 2,000pounds(notadjustedformoisture)

1bone-dryton(BDT)ofchips = 2,000drypounds(assumesnomoisturecontent)

1bone-dryunit(BDU)ofchips = 2,400drypounds(assumesnomoisturecontent)

1unitofchips = 200cubicfeet

1BDTchips = 2.0GT(assuming50-percentmoisturecontent)

1unitofchips = 1.0BDTchips

1CCF(hundredcubicfeet) ofroundwood) = 1.0BDUchips

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1CCFroundwood(logs) = 1.2BDTchips

1CCFroundwood(logs) = 1.2unitsofchips

1CCFroundwood(logs) = 1.2cordsroundwood(@85cu.ft.wood/cord)

1Boardfoot(BF) = boardfootlumbermeasureequivalenttowood volumeof12-inby12-inby1-inthick

1MBF(thousandboardfeet) = 1,000BF

1GT(greenton)oflogs = 160BFoflumber

6GT(greenton)oflogs = 1MBF

1standardchipvancarries25greentons,orapproximately12.5bonedrytons(BDT)assuming50-percentmoisturecontent.

Whenwoodybiomassisutilizedinacommercial-scale(10+megawatt[MW]electricaloutput)powergenerationfacilitythefollowingenergyoutputrulesofthumbapply:

1BDTfuelwillproduce10,000poundsofsteam.

10,000poundsofsteamwillgenerate1megawatthour(MWH)ofelectricity

1MW=1,000horsepower

1MW=powerforapproximately750to1,000homes

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BONE DRY TONS CONVERSION TABLE

WOOD DENSITY

DBH HT StemVol StemWt Crown&TipWt Total (in) (ft) (cu.ft) (BDpounds) (BDpounds) Weight BDT

Douglas-fir

2 10 0.1 2.5 2.5 0.00

4 30 1 25 40 65 0.03

6 50 4 100 64 164 0.08

8 70 10 250 97 347 0.17

10 90 20 500 137 637 0.32

12 110 35 875 184 1,059 0.53

16 120 64 1,600 301 1,901 0.95

20 120 95 2,375 482 2,857 1.43

24 120 130 3,250 725 3,975 1.99

28 130 190 4,750 1,030 5,780 2.8

Ponderosa pine

2 10 0.1 2.5 2.5 0.00

4 30 1 25 35 60 0.03

6 50 3.7 92.5 66 158.5 0.08

8 70 9 225 113 338 0.17

10 90 17.9 447.5 177 624.5 0.31

12 110 31.1 777.5 259 1,036.5 0.52

16 120 58.3 1,457.5 478 1,935.5 0.97

20 120 88 2,200 774 2,974 1.49

24 120 123.1 3,077.5 1,150 4,227.5 2.11

28 130 178.7 4,467.5 1,620 6,087.5 3.0

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BONE DRY TONS CONVERSION TABLE

WOOD DENSITY

DBH HT StemVol StemWt Crown&TipWt Total (in) (ft) (cu.ft) (BDpounds) (BDpounds) Weight BDT

White fir

2 10 0.1 2.5 2.5 0.00

4 30 1.2 30 45 75 0.04

6 50 4.5 112.5 77 189.5 0.09

8 70 11.1 277.5 120 397.5 0.20

10 90 22.3 557.5 175 732.5 0.37

12 110 39.2 980 242 1,222 0.61

16 120 71.2 1,780 422 2,202 1.10

20 120 103.7 2,592.5 637 3,229.5 1.61

24 120 141 3,525 852 4,377 2.19

28 130 202.4 5,060 1090 6,150 3.08

References:

Walters,DavidK.;Hann,D.W.;andClyde,M.A.1985.EquationsandtablespredictinggrosstotalstemvolumesincubicfeetforsixmajorconifersofsouthwestOregon.ResearchBulletin50.Corvallis,OR:ForestResearchLaboratory,OregonStateUniversity.37p.

Snell,J.A.Kendall,andBrown,J.K.1980.HandbookforpredictingresidueweightsofPacificNWConifers.Gen.Tech.Rep.PNW-103.USDAForestService,PNWForestandRangeExperimentStation.44p.

Hartman,DavidA.;Atkinson,W.A.;Bryant,B.S.;Woodfin,R.O.,Jr.1976.ConversionfactorsforthePacificNWForestIndustry.

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GLOSSARY OF COMMON TERMS Listedbelowaresomeofthemorecommonterms/abbreviationsfrequentlyused

byresourcemanagers.ThesedefinitionsarefromavarietyofsourcesincludingtheForestService’sForestProductsLab,andtheSocietyofAmericanForesters–ForestryDictionary.

Biomass Organicmatterintrees,agriculturalcrops,andotherlivingplantmaterial.Carbohydratesaretheorganiccompoundsthatmakeupbiomass.Thesecompoundsareformedingrowingplantlifethroughphotosynthesis,anaturalprocessbywhichenergyfromthesunconvertscarbondioxideandwaterintocarbohydrates,includingsugars,starches,andcellulose.

BoardFoot Theamountofwoodcontainedinanunfinishedboard1-inchthick,12incheslong,and12incheswide.Abbreviated“BF.”Commonunitsasrelatedtosawlog-volumemeasurementinclude-1,000BForMBFand1,000,000BForMMBF.

BoneDryTon Traditionalunitofmeasureusedbyindustries(pulp/paper,biomasspower)thatutilizebiomassasaprimaryrawmaterial.Onebonedryton(BDT)is2,000poundsofbiomass(usuallyinchipform)atzero-percentmoisture.Typicallybiomasscollectedandprocessedintheforestisdelivered“green”totheendusefacilityat50-percentmoisture.OneBDT(assuming50-percentmoisturecontent)istwogreentons(4,000poundsat50-percentmoisturecontent).

BritishThermalUnit Thequantityofheatrequiredtoraisethetemperatureofonepoundofwater,1degreeFahrenheit.

Chip Asmallpieceofwoodtypicallyusedinthemanufactureofpulp/paper,compositepanels,fuelforpower/heatgeneration,andlandscapecover/soilamendment.

Cogeneration Thecombinedgenerationofbothheatandpoweratonefacilityusingthesamefuelsource.Typicallytheheatisusedtogeneratesteamthatisutilizedonsite(processsteam).Powergeneratedisintheformofelectricitythatisutilizedonsite or sold to a local utility.

Culllog Logsthatdonotmeetcertainminimumspecificationsforusabilityorgrade.Aculllogtypicallyhasverylittlevalueintheproductionoflumberproducts.

Gasification Thethermochemicalconversionoforganicsolidsandliquidsintoaproducerorsyntheticgas(syngas)underverycontrolledconditionsofheatandstrictcontrolofairoroxygen.

Gasifier Acombustiondevicethatproducesbiogasfromsolidbiomass.

Generation Theprocessofcreatingelectricity.Typicallygenerationisaccomplishedtosupply electricity to an onsite facility and/or for sale to an electric utility.

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Kilowatt Astandardunitforexpressingtherateofelectricaloutput.

Megawatt Onethousandkilowatts.Enoughelectricitytosupportapproximately1,000households.

Moisturecontent Theamountofmoisturecontainedinbiomassmaterial.Typicallyexpressedasapercentageoftotalweight.

Sawlog Alogthatmeetsminimumregionalstandardsofdiameter,length,anddefect,intended for sawing into lumber products.

Volume(gross) Measurementoflogcontentinlog-scaleboardfoot(seeboardfootdefinition)withoutdeductionfordefect.

Volume(net) Measurementoftheactualamountofmerchantablewoodinlog-scaleboardfoot,afterdeductionsfordefect.

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REFERENCES

7.1 Web sites

ForestServiceWoodyBiomassUtilization: http://www.fs.fed.us/forestmanagement/WoodyBiomassUtilization/index.shtml

DepartmentofEnergyBiomassProgram: http://www1.eere.energy.gov/biomass/publications.html

FuelsForSchools: http://www.fuelsforschools.org/

RockyMountainResearchStation,ForestrySciencesLab: http://forest.moscowfsl.wsu.edu/fuels/

EPACombinedHeatandPowerProgram: http://www.epa.gov/chp/project_resources/ethanol.htm

ColoradoWoodUtilizationandMarketingProgram: http://www.colostate.edu/programs/cowood/

IntermountainRoundwoodAssociation: http://www.intermountainroundwood.org/

NorthIdahoPostandPole:http://www.nipostandpole.com/

Biomass Combustion Systems:http://www.biomasscombustion.com/index.html

VaagenBrothersLumber:http://www.vaagenbros.com/home.html

CenterforInternationalTradeinForestProducts: http://www.cintrafor.org/RESEARCH_TAB/research_pubs_fence.htm

NorthIdahoEnergyLogs:http://www.northidahoenergylogs.com/

Porterbuilt Post and Pole: http://www.porterbiltlog.com

Lignetics:http://www.lignetics.com/lignetics/index.html

JohnDeere:http://www.deere.com/en_US/deerecom/usa_canada.html

Blondin: http://www.rottneusa.com/

Neuson: http://www.neuson.com/HTML/Pages/EN/startEN.asp

Komatsu:http://www.komatsuforest.com/default.asp?id=1202

Morbark:http://www.morbark.com/

Peterson: http://www.petersonpacific.com/

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NationalAssociationofConservationDistricts: http://forestry.nacdnet.org/index.html

25x25:http://www.25x25.org/

Timber Buy/Sell: http://www.timberbuysell.com/

SouthernResearchStation,MachineRates: http://www.srs.fs.fed.us/forestops/mach_costs.htm

7.2 Publications (coming soon)