woodfuel woodland improvement grant 2011

Ewan Calcott Grants & Regulations ManagerFC [email protected]

Woodfuel Woodland Improvement Grant

2011

mailto:[email protected]

Woodfuel Woodland Improvement Grant:

Woodfuel WIG

WF WIG

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Woodfuel WIG presentation - Overview

•Background – Woodfuel, where did it start?•Introduction to WF WIG

•delivery and timescale•communications

•WF WIG objectives•fund Projects

•Basic eligibility and definitions•Timber fund and process•Roads fund and process•Amendments


Woodfuel policy timeline

2007 – England Woodfuel Strategy2009 – UK Renewable Energy Action Plan2008 – 2010 - Various policies on CarbonHowever,

– woodfuel supply chain remains fragile

– barriers still prevent woodland owners from realising full potential

Sector committed to an implementation plan:

Aims,– increasing wood supply – encouraging the use of woodfuel

– help rural-based businesses

increase their capacity

Woodfuel – Background 1


Woodfuel – Background 2

Aims:• Facilitate the development of access within woodlands • Develop and test new approaches to woodland management • Develop woodfuel supply chains• Provide expert and impartial information on heating buildings using

wood

Target:• To achieve EU Renewable Energy Directive

(RED - 2009) - 15% of UK energy from renewable sources by 2020

• Launched at ‘Ignite’ June 2011• Nearly 50% of UK carbon emissions come

from heating buildings • Renewable Heat Incentive will increase

demand for woodfuel

2011 - Woodfuel Implementation Plan (WIP)


Woodfuel WIG – Introduction

Woodfuel WIG (WF WIG)• Contributes to the WIP – increased

timber production• RDPE Axis 1 funding – improving

competitiveness i.e. economic focus

• Funding redirected from Energy Crop Scheme

• Linked to offsetting fossil fuel based energy production – carbon reduction targets

• £10m to be delivered in England by 31st March, 2014

• Fixed, 60% grant contribution rate • Has Ministerial approval - June

2011


Woodfuel WIG – Priority delivery

Focused effort in 3 locations:– South West England

£3.25M– South East England £3.25M– Cumbria (only) £1.75M

• DEFRA funded contract will deliver WF WIG in these areas (with some FC staff involvement)

• Contract awarded to Ngage

Elsewhere – • East England – own

arrangements

• West Midlands - WO delivery• £1.75M over 2½ years


Woodfuel WIG – Funding timescale

WF WIG funding available until March 2014

By then• All agreed work must be completed and

claimed• Grant awards are tied to agreed financial

years• Little scope for rescheduling

• WF WIG indicative only• funds will be demand led

NB: Already well into year 1 of the programme• Promotion of WF WIG needed• Encourage management plans to be

drawn up• Identify woodlands where grants could

apply and contact owners


Woodfuel WIG – Delivery by 2014

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Woodfuel WIG – Communications

Promotion:• Woodland & Woodfuel (WFO) Officers• WF WIG flyer and website• Regional events (today!)• Training events (WIP, Tracks)• Email alerts• Press releases • Applicant guidance & forms• Other promotion - depends on demand

• All to be monitoredFC Staff / WFO information – the above plus:• Grant rules• Internal training


Woodfuel WIG – Aim, objectives & delivery

Aim: • Offset fossil fuel based energy with renewable energy

Objectives:• Increase annual timber production (2M target)• Substitute fossil fuels, reducing carbon emissions• Improve the economic value of woodlands• Bring under managed woodland into production• Increase the area of woodland in sustainable

management• Improve access to woodland areas, where this is a

limiting factor for timber production• Generate additional environmental and social benefits

Delivery funds:Timber – Measure and market timberRoads – Create or improve access to extract timber


WF WIG – Basic eligibility 1

Basic EWGS and WIG eligibility rules applyAdditionally, • A management plan detailing

• undermanaged woodland areas, and / or• inaccessible woodland areas

• A justification for access creation or improvement

• A basic timber volume assessment • estimated volume of timber not reaching market due to

• limited access, or • lack of marketing

• Grant support value is proportionate to volume of timber (and associated carbon value) harvested

• As a guide, £50 (carbon value) per tonne of timber harvested gives a maximum potential project value



• Permissions • Legal requirements from other authorities need to be obtained e.g.

• Planning authority – planning permission / GDO• Environment Agency – water resources

• Other legislation to consider e.g.• EIA (Forestry) Regulations 1999• European Protected Species 1994• Mines and Quarries Act 1954• Construction (design & management) regulations 2007

• EU’s ‘De minimis’ regulations • Restricts how much a beneficiary may receive• An enterprise may receive up to €200k in any 3 years• Owners will have been notified of Di minimis funding when granted• May prevent or delay applications being eligible• NB: De minimis does not include RDPE Axis 2 agri-environment

grants, but does include historic buildings and access funds



Definitions – for WF WIG:Undermanaged • missed at least the last two normal silvicultural interventions

• Conifer woodland 10 years• Broadleaved woodland 20 years• Coppice woodland 30 years

Inaccessible• where the cost of harvesting timber is prohibitive because of • lack of, or • poor quality, or • damaged access infrastructure

Note:• Both definitions can apply to a single area of woodland• Timber revenue is excluded from grant calculations


WF WIG – Timber fund profile

Woodfuel WIG - Timber• Target: Undermanaged woodlands• Supports:

• Inventory data collection• Tree marking• Forest mensuration • Preparing sales and tender particulars• Managing harvesting contracts• Delivering harvesting machinery to site• Agents supervision time for these activities

• site by site decision• Grant Offer

• Based on new set of Standard Costs• Not for use with other WIG’s

• Grant payment• Fixed, 60% grant contribution


WF WIG – Timber fund application

WF WIG Timber calculator • A new, separate WIG calculator sheet• Operates exactly the same as WIG Bio / Access

Application • EWGS 1• EWGS 5 – brief detail of eligible operations proposed• Timber fund WIG calculator• Map(s)• Management Plan – contains

• Justification of eligible area of woodland• Basic timber volume assessment

Process• Application submitted• Proposals agreed and agreement issued• Work completed (by Feb 2014)• EWGS 8 claim form submitted for all completed work• Claim paid (before 31 March 2014)


WF WIG – Roads fund profile

Woodfuel WIG - Roads• Target: Inaccessible woodlands

• Is access infrastructure adequate?• Management planning is a must!

• Supports civil engineering work • New civil engineering specifications provided• Indicative job prices can ‘model’ access solutions• Agreed work programme is tendered

• Grant offer• Based upon best of 3 civil engineering quotes• Offer of grant proportionate to timber volume available

• Grant payment • Based on receipted invoices (actual costs)• Only receipts presented can be claimed for• Fixed, 60% contribution to actual costs

• Excludes VAT where applicant is VAT registered

Inaccessible woodland needs?• New access?

• Upgrade of existing access?

• Repair of damaged access?


WF WIG – Road fund pre application

Management plan – must contain

• Up to date information

• Justify need for access improvement

• Harvesting programme

• Basic timber volume assessment

Professional services recruited• Forestry agent

• Civil Engineer

On site planning• Route selection

• Machinery and use

• Haulage / timber extraction / turning / loading / stacking

• Road maintenance

• Long term sustainability

Available finances and time• 60% of actual costs funded by WF WIG grant

• 40% of actual costs funded by?

• Cost model various access solutions

• Establish market value of timber to be harvested

• Timetable construction and harvesting programme

Applicants pre application planning

Red tape• Permissions needed

• Legislative issues

• Regulations

• Local consultations

Support• Road & track construction guidance

• Detailed engineering specifications


WF WIG – Why alter road specifications?

• RDPE rules – Axis 1 funding requires 3 independent quotes

• ‘R’ Code Standard Cost specifications (Operations Note 9 )

• insufficient specification detail to create sustainable harvesting access

• Value for money?• Mixed quality of civil engineering projects under WIG Bio• Lack of evidence that projects will be maintained after harvesting

• Construction (Design & Management) Regulations 2007 (CDM)• The CDM Regulations cover most common building, civil engineering and construction work • You must notify HSE of the site if the construction work is expected to either

• last longer than 30 days• or involve more than 500 person days of construction work

• The woodland owner has ongoing responsibility for • Planning and inception of forest road• Construction and delivery• Safe and effective use and maintenance once built

• Any problems will always come back to the owner, civil engineer and user


WF WIG – Civil engineering specs 1

Once submitted, FC will• agree specification on Roads WIG calculator• Roads WIG calculator is used to obtain 3

independent civil engineering quotes

WF WIG Roads calculator• Replaces limited ‘R’ Codes in Ops Note 9 (Standard

Costs)• Covers all aspects of track and road construction and

maintenance• Each specification is a ‘layer’ in track construction• Indicative ‘England’ cost for each specification• An Excel spreadsheet based calculator

• Easy to use / change / email

Applicant completes the sheet showing• How many units of work for each specification • Creates a ‘Bill of Quantities’ for civil engineering

contractors to quote against• Summarises in a familiar WIG calculator format


WF WIG – Civil engineering specs 2

Can an applicant quote to do the work themselves?

YesThe applicant• Specifies and agrees type and quantity of work• Uses indicative costs – cannot invoice self• Must still obtain 2 other independent quotes• Best value quote becomes EWGS grant offer

If applicant quote is best value• Grant offer based on 60% of 80% of indicative cost• Reduced to cover ‘in kind’ contributions

• e.g. own machine or labour• Similar to using existing Standard Costs

• Some receipts still need to be produced

FC will determine best value quote


WF WIG – Road fund application

WF WIG Roads application • EWGS 1• EWGS 5 – brief detail of eligible operations proposed• Roads fund WIG calculator and ‘Bill of Quantities’• Map(s)• Confirmation of Di Minimis funding• Management Plan – must contain

•Justification of inaccessible area of woodland•Basic timber volume assessment

Process• Application submitted – Case registered in GLOS• Proposals checked and specifications agreed • Quotes from 3 civil engineers sought (Case set to WAP)• Best Value quote used as basis for grant offer – Agreement issued• Work completed (by Feb 2014)• EWGS 8a claim form submitted along with receipted invoices• Claim verified and paid on actual costs (before 31 March 2014)• Timber is produced within 5 - 7 years (10 years max), or grant is

reclaimed•Harvesting as per management plan


WF WIG – Grant offer and claim

For WF WIG Roads:• Grant offer agreed - based on 60% of best value quote• EWGS contract issued with agreed Grant offer• Grant offer is the maximum that can be claimed

Once work is completed:• Claim is made based on receipts and invoices (actual costs)• FC will only contribute 60% of actual costs• Grant offer in GLOS is changed to match with actual costs• Claim is then paid on 60% of actual costs• Inspection of the new infrastructure


WF WIG – Example Grant offer & claim

Example:• Civil engineering quote suggests £25k project• EWGS Grant offer (60% contribution) £15k

EWGS contract is issued with Grant offerWork is undertaken and completed

Applicant submits claim with receipted invoices• Receipts & Invoices total (actual costs) £22k• EWGS Grant offer adjusted (in GLOS) -

60% of actual costs£13.2k

• EWGS claim paid £13.2k

NB: Actual costs cannot exceed original Grant offer in GLOS


WF WIG – Amendments

Amendments• Limited lifespan for WF WIG

• prevents rescheduling• if claim year missed, unlikely that claim can be paid

• However, some amendments are possible - where• Significant changes to road cost are identified after EWGS

agreement signed• Applicant and FC can agree amendment to specification• Funds remain available

• Then,• Adjustments can be made to the EWGS contract• EWGS contracts resigned as normal

woodfuel woodland improvement grant 2011

Documents

use of woodfuel

uk energy

woodland management

wf wigdelivery

ngageelsewhere east

woodland owners

renewable sources

south west england