Enclosure 4A - Project Summary Form NATIONAL FIRE PLAN COMMUNITY ASSISTANCE AND WILDLAND URBAN INTERFACE PROJECTS Application for Fuels Utilization and Marketing Projects Applicant Applicant/Organization: Ferry Conservation District Phone: FAX: Email: 509/775-3474 509/775-3170 lyle-gardinier@wa.nacdnet.org Address (Street or P. O. Box, City, State, Zip): 84 E. Delaware Ave., P.O. Box 1045, Republic, WA 99166 Project Coordinator Project Coordinator (Name and Title): Lyle Gardinier, Ferry Conservation District Manager Organization/Jurisdiction: Ferry Conservation District Phone: FAX: Email: 509/775-3474 509/775-3170 lyle-gardinier@wa.nacdnet.org Project Information Project Title: Marketing Small Wood Proposed Project Start Date: Proposed Project End Date: July 1, 2003 July 1, 2004 Federal Funding Request: Total Project Funding: $50,000.00 $105,200.00 Are you submitting multiple projects? If so, please explain and prioritize: Yes, this is priority one due to our current industrial closures and the national need for small wood economic development. Brief Project Description: The Marketing Small Wood project examines whether small diameter wood obtained from thinning and cultivated trees can be effectively converted into marketable products. The study is being carried out by the Ferry Conservation District, the Institute for Washington’s Future and the Washington State Labor Council in conjunction with the Shed Company, highly successful in developing, producing and marketing the kinds of products to be studied here. small wood from thinning projects and cultivated canrisk. be These effectively Thisdiameter project will sort obtained materials obtained from ongoing thinning of areas oftrees high fire materials will converted into marketable products. It uses demonstration components to structure a feasibility be supplemented by cultivated trees. We will select 8 to 12 products to be produced from three catgeories of study1)that real diameter, costs and The and results of the will be widelytodistributed. trees: lessuses than 3.5” 2) real 3.5” products. to 5.5” diamter, 3) 5.5” to 8”study diameter. Products be evaluated would include some produced from other materials now being sucessfully marketed (e.g. doghouses and sheds). New product ideas, such as decking, kiosks, and standardized solid logs for home construction will also be tested. All products will be market tested through the established mechanisms of the Shed Company. This project will lay the groundwork for significant economic gains, as well as contributing to a significant reduction in fire risk. New economic opportunities will open up for rural communities when the costs of fuels reduction are favorably balanced by payments for thinning and the sales of products made from the recovered wood. Paying work in thinning would support the development of a forest restoration industry, which would combine thinning with habitat restoration and riparian zone management. Project Location (latitude/longitude if applicable): County: Congressional District: Republic, Washington Ferry County 100% in 5th District If the applicant is an unincorporated area, define the geographic area being represented: Enclosure 4B (Page 1 of 3) - Project Narrative Description Applications for funding must include a narrative response that describes the proposal. Please do not submit responses longer than one page, single space, 12-pitch font. Describe project including, but not limited to: project location Address these project implementation items as anticipated outcomes applicable: measures and reporting interagency partners Response: project relationship to community or natural landscape fire plans. project time frames and income specify types of activities and equipment used amount or extent of actions (acres, number of homes, etc) environmental, cultural and historical resource requirements Removing small diameter trees is essential to reducing fire hazards and restoring forest health. It is not being undertaken to anywhere near the degree that is necessary because it is not economically viable. The costs of removing these trees and the prices paid for products made from them have not produced profits. While much has been done over the last ten years to address the product side, no significant breakthroughs have occurred. No simple element in the complex equation of creating viable products—not new uses of the resource, not new technologies, not more efficient processes—has alone made the difference between red and black ink. This project proposes a new approach. It will build on past work by addressing several variables in the product viability equation together. Within an overall feasibility study this project will combine the sorting of material from a thinning contract—and supplement this wood with wood from cultivated trees—with milling the wood, creating demonstrations of newly developed products, and undertaking marketing tests of these demonstration products. The feasibility study will answer the question: Can small diameter wood obtained from thinning projects and cultivated trees be effectively converted into marketable products by systematically employing newly developed product designs, smaller scale machinery and market approaches. This project has several elements: Thinning: It will contract to obtain the material from ongoing thinning operations in the area Sorting: The project will sort and grade the material from the thinning project and the results will be compared with results from sorting in other areas. The project will select logs to be milled for use in demonstration products. Product Selection and Design: We will select 8 to 12 products to be produced and evaluated in three categories, according to tree size: 1) up to 3½ inches in diameter, products like wood chips and kiosks; 2) 3½ to 5½ inches, products like kiosks, playhouses, sheds and decks; and 3) 5½ to 8 inches—sheds and decks, utility structures, and log homes. Products selected will be adapted to the materials available, including wood from cultivated trees. We are especially interested in designing and testing “ready to build” packages using manufactured components. Production: The products will be produced under contract by a local manufacturer, the Shed Company Evaluation: The products will be evaluated in two ways. First, they will be presented to buyers for large retailers (e.g. Costco) or institutions (e.g. federal park services). Second, they will be taken to homeshows around the Northwest, where they will be presented along with a market survey to test consumer opinion. Finally, they will be offered for sale through the Shed Company’s web site and network of dealers. Results will be compiled and compared. Analysis and Publication: The results of the tests in this project will be analyzed in the context of accepted methodology. The results of the feasibility study will be reported both in print and on the internet. The partners for this project include: The Ferry County Conservation District, an agency which coordinates sustainable use of natural resources by combining conservation efforts with value-added economic development. Washington State Labor Council (AFL-CIO) represents over 600,000 working men and women throughout Washington state. Its Economic Development Program utilizes its expertise in job creation and retention. The Institute for Washington’s Future—a statewide 501(c)(3) organization focused on sustainable community development and providing research, communications, and networking and project development assistance. The Shed Company is a local enterprise producing high-quality utility building “kits”. It has an established market for buildings—from sheds to doghouses. The Forest Service has been informed of this project. If funded, they will be asked to actively participate. Enclosure 4B (Page 2 of 3) - Project Evaluation Criteria Applications for funding must include narrative responses that address the following four criteria. Within each criterion, subcriteria are listed in descending order of importance. Limit your responses to the areas provided. 1. Increasing Local Capacity (35 Points) A. How would the proposal improve or lead to the improvement of the local economy in terms of jobs and sustainable economic activity? How many jobs are expected to be created or retained and for how long (please distinguish between essentially year-round and seasonal jobs)? How will this proposal link to other projects (or proposed projects) to create year-round jobs? B. Will biomass or forest fuels be utilized; if so, in what manner and how much? C. Which, if any, private businesses will participate? D. To what extent will this project be offered to serve as a model for other communities or businesses, or natural landscapes? Response: This project will increase local capacity and educate the public. While most of the project activity will take place in Republic, WA, local participants include groups in Okanogan and Stevens counties and could involve the Colville Federated Tribes. Through communication of the project report, the project will contribute to building the capacity of many communities throughout the Pacific Northwest. The Washington State Labor Council is particularly interested in developing models that they can replicate throughout Washington state. This project aims to generate the knowledge needed to create these models for viable businesses. This feasibility study could catalyze many businesses, including forest thinning and regeneration operations, log-sorting yards, the manufacturing of small wood products farms incorporating cultivated trees, and marketing enterprises. There is entrepreneurial interest throughout the region for developing these businesses. This project is vital to creating the capacity of Republic to initiate such businesses. In fact it could provide the last missing step. The resources and skills already exist in Republic and the Labor Council has proven access to existing capital. What is missing is the knowledge that says if we fit these pieces together to produce a given product, we will succeed. This project provides the necessary knowledge capital. This is a significant opportunity for Republic and the local communities in the network—an opportunity to renew the small, independent forest products industry in niche markets that are overlooked by large corporations. We estimate we will directly create 15 jobs in Republic and catalyze business development bringing an additional 30. This activity should subsequently spur industries and job creation in other counties as well. 2. Reducing fire risk. (30 points) Describe how the proposal promotes reduction of risk in high hazard areas and communities or natural landscapes. Describe how the proposed project benefits resources on federal land or adjacent non-federal land, or how it protects the safety of communities. C. To what extent does the project implement or create a cooperative (1) fuels treatment plan or (2)community fire strategy (include evidence of the plan if it already exists)? D. Explain how the proposal (1) leads to, enhances or restores a local fire-adapted ecosystem, and/or (2) mitigates or leads to the mitigation of hazardous fuels conditions. Response: A. B. This project will have little, if any, direct impact on fire risk reduction. It does not contemplate direct action affecting biomass. On the other hand, its indirect, long-term impact on fire risk reduction could be of major importance. To the degree that this project finds economically viable ways to utilize materials from thinning, and thus makes thinning a paying proposition, it would bring new people to the effort and make it attractive for private land owners to better manage their lands. It would also serve to extend the money set aside to pay for thinning by reducing the amount necessary to pay for thinning services. It is impossible to estimate the impact of these changes. But, such changes could change the nature of involvement in forest management, resulting in better fire management. This is particularly true in the critical forest interface areas where the risks are the greatest and the presence of the private landowners significant. Since this project is a research and development project, it does not require permits and environmental clearances. The partners who will undertake the research and publication are in place. Subcontractors for milling and production have been identified but no agreements are in place. The subcontracts for materials and sorting will be bid for utilizing the Conservation District’s standard procedures. Enclosure 4B (Page 3 of 3) - Project Evaluation Criteria 3. Expanding Community Participation. (15 Points) A. To what extent have interested individuals, groups, and communities been provided an opportunity to become informed and involved in this proposal? B. Describe the extent of local support or opposition for the project, including any cost-sharing arrangements C. What are the environmental, social and educational benefits or concerns of the project? Response: The partnership undertaking this project was identified and selected through a network maintained by the Institute for Washington’s Future. The primary point for outreach will be the statewide network of community groups, local entrepreneurs, retail business, government agencies and conservation districts that participate in the networks maintained by the project partners. Information will be shared through direct contact, websites and media stories. The local match for this project is $61,000: $10,000 in cash, $15,000 obtained through project sales and $36,000 in contributed services. The cash match is from local sustaining funds. Project sales will be of material from thinning and the sale of test products. Services contributed are from the Institute for Washington’s Future, Ferry Conservation District and the Washington State Labor Council. Where feasibility is proven, the local partners and possibly labor-supported venture capital funds will invest in product production. Supply will be sustained by complementing wood from the thinning with wood from trees cultivated by local growers. The partnership will keep its combined network closely informed of the progress of the study. This network includes the United Farm Workers, several tribes of Indians, and many Hispanic groups. Special attention will be paid to informing these groups representing low-income people and people of color of new jobs and business opportunities. There is no local opposition to the project. 4. Increasing interagency and intergovernmental coordination. (20 Points) A. Explain the level of cooperation, coordination or strategic planning through a “Local Coordination Group” for wildland fire activities, or among federal, state, tribal, local government and community organizations in developing this proposal. List the cooperators (a detailed list of cooperators will be required for projects that are funded). B. Describe how this project implements a local intergovernmental strategy or plan, or creates such a plan. Describe the plan if it already exists. Response: This project is built on a unique partnership of private for-profit business, organized labor, a non-profit public interest organization and a governmental agency. This partnership is supported by an informal network of public and private entities working in economic development in Ferry County. These entities include the City of Republic, Ferry County, Ferry County PUD, the Republic Chamber of Commerce, the WSU Extension Service, the Tri-County Economic Development Agency, as well as the Forest Service. This partnership rests on the foundation of local planning efforts and the product development and marketing presently being carried out by the Shed Company. Partners for the marketing small wood project include: The Ferry Conservation District, an agency which coordinates sustainable use of natural resources by combining conservation efforts with value-added economic development. Washington State Labor Council (AFL-CIO) represents over 600,000 working men and women throughout Washington state. Its Economic Development Program utilizes its expertise in job creation and retention. The Institute for Washington’s Future—a statewide 501(c)(3) organization focused on sustainable community development and providing research, communications, and networking and project development assistance. The Shed Company is a local enterprise producing high-quality utility building “kits”. It has an established market for buildings—from sheds to doghouses. The Forest Service has been informed of this project. If funded, they will be asked to actively participate. Enclosure 4C - Project Work Form Tasks Time Frame Responsible Party Organize project, including developing contracts Project months 1-2 Institute for WA’s Future Ferry Conservation District Purchase and sort materials Record findings Project months 2-4 Shed Company Ferry Conservation District Review products Select and design test products Project months 2-3 Shed Company Institute for WA’s Future Ferry Conservation District Mill wood according to design requirements Project months 4-5 Shed Company Product production Project months 5-7 Ferry Conservation District Institute for WA’s Future Shed Company Schedule evaluations Project months 5-7 Institute for WA’s Future Ferry Conservation District Implement evaluations Project months 7-10 Institute for WA’s Future Ferry Conservation District Promotional media placement Project months 6-12 Institute for WA’s Future Data collection and analysis Project months 10-11 Ferry Conservation District Institute for WA’s Future Shed Company Publish and circulate report Project month 12 Institute for WA’s Future Enclosure 4D - Project Budget Cost Category Description Federal Agency Applicant FCD Partner 1 IWF Partner 2 WSLC Total Personnel Project Coordinator Project Staff Subtotal 12,000 11,400 23,400 4,000 2,800 6,800 0 2,300 2,300 0 7,500 7,500 16,000 24,000 40,000 Fringe Benefits @20% of personnel 0 4,300 2,200 1,500 8,000 Subtotal 0 4,300 2,200 1,500 8,000 1,750 250 2,000 750 0 750 0 250 250 1,500 600 2,100 4,000 1,100 5,100 0 0 0 0 0 Subtotal 0 0 0 0 0 Supplies Office Other direct costs Subtotal 0 0 0 1,700 1,075 2,775 400 200 600 400 225 625 2,500 1,500 4,000 Contractual Sorting Milling & manufacturing Subtotal 0 24,600 24,600 5,000 5,400 10,400 0 0 0 0 0 0 5,000 30,000 35,000 Other Purchase wood Publication & promotion Subtotal 0 0 0 10,000 500 10,500 0 2,000 2,000 0 500 500 10,000 3,000 13,000 $50,000 $35,525 $7,350 $12,225 $105,200 Travel Automobile (10k mi @ $0.40) Per diem Subtotal Equipment Total Costs Project (Program) Income1 1 $15,000 Program income is the gross revenue generated by a grant or cooperative agreement supported activity during the life of the grant. Program income can be made by recipients from fees charged for conference or workshop attendance, from rental fees earned from renting out real property or equipment acquired with grant or cooperative agreement funds, or from the sale of commodities or items developed under the grant or cooperative agreement. The use of Program Income during the project period may require prior approval by the granting agency. $15,000