WOODY BIOMASS UTILIZATION DESK GUIDE
United States Department of Agriculture
Forest Service
National Technology & Development Program
2400—Forest ManagementSeptember 2007
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
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)
“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
TABLE OF CONTENTS
iii
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
TABLE OF CONTENTS
iv
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
TABLE OF CONTENTS
v
Chapter 6—Conversion Factors and Glossary ...................................................................... 77
Chapter 7—References
7.1 Web sites ....................................................................................................................... 83
7.2 Publications .................................................................................................................. 84
1
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.
CHAPTER 1
2
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
3
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.
CHAPTER 1
4
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).
Chapter 1
5
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
6
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
7
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
8
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
9
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
10
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
11
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
Chapter 2
12
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.
Chapter 2
13
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.
Chapter 2
14
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.
Chapter 2
15
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.
Chapter 2
16
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?
Chapter 2
17
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.
Chapter 2
18
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.
Chapter 2
19
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?
Chapter 2
20
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.
Chapter 2
21
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
Chapter 2
22
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.)
Chapter 2
23
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
Chapter 2
24
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.
Chapter 2
25
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.
Chapter 2
26
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.
Chapter 2
27
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.
Chapter 2
28
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
Chapter 2
29
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
Chapter 2
30
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
Chapter 2
31
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.
Chapter 2
32
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
Chapter 2
33
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.
Chapter 2
34
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.
Chapter 2
35
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.
Chapter 2
36
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.
Chapter 2
37
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.
Chapter 2
38
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.
Chapter 2
39
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.
Chapter 2
40
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.
Chapter 2
41
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.
Chapter 2
42
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.
Chapter 2
43
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.)
Chapter 2
44
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
Chapter 2
45
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)
Chapter 2
46
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.
Chapter 2
47
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.)
Chapter 2
48
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).
Chapter 2
49
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.)
Chapter 2
50
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
Chapter 2
51
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])
Chapter 2
52
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.
Chapter 2
53
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.
Chapter 2
54
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.
Chapter 3
55
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).
Chapter 3
56
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.
Chapter 3
57
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.
Chapter 3
58
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.
Chapter 3
59
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.
Chapter 3
60
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/
Chapter 4
61
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.
Chapter 4
62
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/
Chapter 4
63
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/
Chapter 4
64
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
Chapter 4
65
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
Chapter 4
66
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.
Chapter 4
67
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/
Chapter 4
68
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:
Chapter 4
69
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
Chapter 4
70
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
Chapter 4
71
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
Chapter 4
72
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.
Chapter 4
73
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.
Chapter 4
74
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.
Chapter 4
75
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
Chapter 5
76
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.
Chapter 5
77
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
Chapter 6
78
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
Chapter 6
79
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
Chapter 6
80
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.
Chapter 6
81
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.
Chapter 6
82
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.
Chapter 6
83
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/
Chapter 7
84
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)