1. Perennial Biomass and Cover Crops in the Upper Sangamon River Watershed Agricultural Watershed Institute Steve John Agricultural Watershed Institute sfjohn@agwatershed.org GLBW Conference October 16, 2012

2. The Upper Sangamon River Watershed Lake Decatur has sediment and nitrate problems. The City supports watershed conservation efforts to protect the lake.

3. Lake Decatur Watershed 925 square miles 87% row crops Tile drainage Sediment & nutrients addressed by:  Dredging  IX Treatment  Watershed management Map credit: ISWS

4. The Local Bioenergy Initiative A collaborative project to begin growing and using perennial biomass crops in Central Illinois

5. The Local Bioenergy Initiative LBI Vision Statement: Make the Lake Decatur Watershed a national showcase for perennial crops grown for both renewable energy & enhanced water quality. Sustainable Decatur Plan – Year 2020 Indicators:  10,000 acres of perennial energy crops  75,000 tons/year of biomass used or exported

6. Perennial Biomass Crops Switchgrass Miscanthus Other grasses Prairie polycultures Willows & other SRC trees Today – heat, electricity, forage Tomorrow – cellulosic biofuels, animal feed The Local Bioenergy Initiative

7. 1.Outreach & assistance to early adopters 2.R & D on landscape design concepts 3.Market development  Including ecosystem service markets Local Bioenergy Initiative Components of the Initiative:

8. The Local Bioenergy Initiative Outreach & assistance to early adopters Some landowners like the “GYOF” idea – Grow your own fuel!

9. Doug Gucker planting “Prairie for Bioenergy” plots, 2011

10. Prairie cordgrass cultivar small plots in wet area Prairie for Bioenergy Single species demonstration plots

11. Future site of AWI—Cat—U of I Prairie cordgrass research plot Prairie cordgrass (Spartina pectinata): High yielding warm season native Thrives in wet conditions Starts growing in early spring Promising candidate for nitrate removal.

12. The Local Bioenergy Initiative Develop/demonstrate landscape design concepts: Optimize co-production of biomass & environmental benefits Water Quality Biodiversity Wildlife habitat Recreation Prairie grass buffer separates an organic field from the adjacent conventionally-farmed field.

13. Eroded, wet, or hard-to-farm land Buffers, waterways, slopes – Biomass + WQ Nature preserves – Biomass + wildlife Converted lawns – Avoid mowing, “GYOF” Local Bioenergy Initiative Promising scenarios for growing energy grasses

14. Drainage discharge pipe Diverter box Riparian bufferField Biomass production in saturated buffers: Tile flow diverted to soil column under buffer. Nitrates removed via plant uptake and denitrification. “Lost” nutrients fertilize a perennial biomass crop. Adapted from Dan Jaynes, USDA, 2009.

15. The Local Bioenergy Initiative Market development Markets for biomass ~ and ~ Markets for ecosystem services … Green Payments Eastern Illinois University’s Renewable Energy Center burns wood chips during start-up period. May shift to a grass—wood blend.

16. Benton Schools Biomass Boiler Advanced Recycling Equipment (PA) Made in the USA Bob Thomas

17. Dr. Ken Staver with hydronic boiler at Wye Research Center (U of MD) Made in the UK (But US-Made “bale burners” are now available)

18. Re-connect people with food & energy sources Attract and support agricultural producers with a strong stewardship ethic – “Grass farmers” Learn how to produce efficiently at small scale Some consumers pay a premium for local & organic food – Lesson for local bioenergy? “Community Supported Energy” business model Local Bioenergy can draw on lessons from Local Food movement: Local Bioenergy Initiative

19. Community Supported Energy Grow energy grasses Make pellets or briquettes Deliver biomass fuel to participating property owners Collect ash and return nutrients to the soil

20. Indoor pellet furnace – heat a farm shed Big M Mfg (IL) Made in the USA

21. Blade switchgrass in Cat plots was harvested for hay in August 2012

22. Flow Chart for Forage + Biomass + Clean Water

23. Bridging the price gap – Coal or NG equivalent BTU price not sufficient to justify production and CHST of biomass for thermal energy  High opportunity cost of good cropland  Production cost lower on marginal land  Green payments may make up the difference  Biomass appears to be competitive with propane or fuel oil without green payments Agricultural Watershed Institute Challenges for establishment of perennial energy crops:

24. Carbon Credits or Renewable Energy Credits  May become a significant driver … but when? Local sources of green payments:  Source water protection (e.g. Lake Decatur)  Conservation easements – Hunting leases  “Wildlife and Water Quality” fund donations BCAP & USDA programs for working lands Modify CRP to permit more harvesting The Local Bioenergy Initiative Potential green payments for perennial energy crops:

25. Final thoughts … Biomass crops can be used for thermal energy or forage without waiting for large biorefineries. Hay producers can be pioneers to grow warm season grasses for forage + biomass + clean water. Small U.S. manufacturers are finding a niche in the emerging Green Energy industry. Stakeholder-led projects can be laboratories for R&D on biomass—conservation synergies. Local Bioenergy Initiative

26. Funding for the Local Bioenergy Initiative is provided by … The City of Decatur Walton Family Foundation Partners include … Agricultural Watershed Institute Producers & biomass entrepreneurs Caterpillar ADM University of Illinois Extension & researchers Eastern Illinois University County SWCDs