1. Engaging Communities in Developing a Sustainable Wood Products and Biomass Energy Industry By Gerry Gray Vice President for Policy American Forests

2. I. Introduction n American Forests is a national, nonprofit, citizens conservation organization. n Our mission focuses on restoring and maintaining healthy forest ecosystems. n We view ecosystems as “natural capital” that provides ecological services. n We believe that communities need a meaningful role in forest policy and management

3. I. Introduction n We serve as a “bridge” group to help community partners – Participate in national policy dialogue – Bring their practical knowledge and commitment to pursue solutions n We have participated in forest policy initiatives passed by Congress (e.g., HFRA, stewardship contracting) and commented on administrative rulemakings (categorical exclusions, appeals, NFMA planning).

4. I. Introduction n We believe these policies provide significant opportunity for: – more forest restoration and fuel reduction treatment, and – using the by-products of these treatments for value-added wood processing and biomass energy. n However, there are challenges to creating a sustainable wood products and biomass energy industry.

5. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Public Trust – The array of new policies and tools are characterized by: n A significant lack of clarity, both individually and as they overlap and can be used together n A significant increase in discretion for federal officials – The policies provide increased flexibility and opportunity for innovation, but they also raise a concern about possible misuse or abuse

6. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Public Trust – We, therefore, urge federal agencies to use these authorities with caution, open and transparent process, and “safeguards,” such as multiparty monitoring, to build public trust in their efforts.

7. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Collaboration – In all of these policy initiatives, collaboration has emerged as a key means for building trust and implementing projects. – The 10-year Implementation Plan for the comprehensive wildfire strategy puts a special emphasis on “community level” collaboration.

8. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Collaboration – Two key mechanisms for community collaboration in the HFRA are: n “Community wildfire protection plans” through which communities can identify priority areas for fuel reduction treatments and preferred treatment methods. n “Multiparty monitoring” of fuel reduction projects where communities express a “significant interest”.

9. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Collaboration – These mechanisms are very important and a wealth of experience is being gained through: n Stewardship contracting pilot program (84 projects) n NM Collaborative Forest Restoration (50 projects) n Collaborative stewardship projects developed through RAC’s and County Payments authorities. – The Forest Service and BLM should make strong efforts to document and learn from these projects as they expand the use of such mechanisms.

10. II. Opportunities and Challenges to a Sustainable Wood Products and Biomass Energy Industry n Collaboration – Collaboration is not easy; there are many challenges, such as: n Different expectations of agencies and communities n Lack of funding for both agencies and communities n Lack of models and understanding of how to do it – These challenges need to be met head on with strategies to ensure the use of key mechanisms for collaboration.

11. III. Toward Sustainability: Integrating values and exploring opportunities n Community perspectives – Develop infrastructure for “industry” at different scales--micro, small, medium, and large--to address ecological, social, and economic issues in different regional and landscape contexts. – Consider the impacts on communities of projects at different scales--who will get the work and which communities will benefit.

12. III. Toward Sustainability: Integrating values and exploring opportunities n Micro and small scale – There are many examples of micro and small value-added wood processing facilities using small-diameter logs, innovative technologies, and niche market. – Similarly, there are many examples of micro (< 1 MW) and small (1-5 MW) wood biomass plants providing heat and/or electricity for schools, hospitals, conference centers and other such facilities. (Forest Products Lab/NREL demonstration program)

13. III. Toward Sustainability: Integrating values and exploring opportunities n Micro and Small Scale – Small plants are ideal for rural communities located at the end of the grid, with fluctuating power and access to small-diameter material from forest treatments. n They require less capital investment and fewer forest resources. n They provide direct economic and social benefits to people in small rural communities. – However, they may not provide demand for materials from extensive forest restoration.

14. III. Toward Sustainability: Integrating values and exploring opportunities n Medium and Large Scale – Medium and large biomass plants can help address need for extensive forest treatments and provide economic efficiencies, but they raise questions about: n the ability to maintain long-term supply of materials, n effects on the land, n impacts on other small facilities and small rural communities.

15. III. Toward Sustainability: Integrating values and exploring opportunities n Medium and Large-Scale – A scenario from Northern California illustrates questions and concerns. n A 10-30 MW bioenergy plant; integrated with small-log processing mill for waste wood. n Plants likely located in major transportation corridors for access to materials and markets. n 9,000-27,000 truckloads of material per year; would likely involve long-term and large contracts, meaning larger companies and mobile crews.

16. III. Toward Sustainability: Integrating values and exploring opportunities n Medium and Large Scale – How sustainable is this scenario beyond long- term contract (e.g., 10 years)? – What are the effects of these large plants on other users of small-diameter logs in the area? – Where are the economic and social benefits going?

17. III. Toward Sustainability: Integrating values and exploring opportunities n Medium and Large Scale – We need to develop medium and large scale biomass energy plants, but recognize the questions and risks. – We must ensure that policies and practices stimulate the development of biomass energy infrastructure at different scales, and are based on clear strategies toward sustainability.

18. IV. Summary n We believe legislative authorities and rules provide opportunity but also challenges, so proceed with caution. n Building and maintaining public trust is critical, with mechanisms for collaboration (e.g., community fire plans and multiparty monitoring).

19. IV. Summary n We need to build industry infrastructure at different scales, but micro and small are less risky and provide direct benefits to small rural communities. n Community-based forestry groups can help --asking questions, working through open process, focusing on monitoring and learning, and seeking solutions