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: Harney County Phone: FAX: Email: 541-573-6356 541-573-8387 sgrasty@orednet.org Address (Street or P. O. Box, City, State, Zip): 450 N. Buena Vista Burns OR 97720 Project Coordinator Project Coordinator (Name and Title): Steven E. Grasty, Judge Organization/Jurisdiction: Harney County Court Phone: FAX: Email: 541-573-6356 541-573-8387 sgrasty@orednet.org Project Information Project Title: Harney County Hazardous Fuels Utilization Pilot Project Project Start: Project End: May 1, 2002 June 1, 2003 Federal Funding Request: Total Project Funding: $56,500.00 $118,000.00 Are you submitting multiple projects? If so, please explain and prioritize: No Brief Project Description: Hazardous fuel on lands of US Forest Service, BLM and on private lands is creating both problem and opportunitiy for Harney County. Removal of fuels near all the rural comunities and the munipalities of the county is critical for safety. Within the range of materials which are potentially available, the mission of the county is to identify products, determine the highest value use and spin off local products from otherwise waste materials. Three specific areas identified are: 1) Biomass for co-generation/steam production (feasibility) , 2) value added wood products - i.e. kiln drying product for small portable mill owners (field testing), dairy calf bedding (field trials -shavings), and juniper oil production (field trials); 3)coordination of the flow of materials from hazardous fuels removal to the end use will greatly improve the efficiency of the businesses involved in wood products. Louisiana-Pacific engineered wood products plant has excess steam capacity to be contibuted for kiln drying, for juniper oil distillation and a need for dependable and affordable hog fuel. Harney County is already in the process of creating an organization on the model of Wallowa Resources Inc. which will serve to inherit and advance the successes of the pilot project. Project Location: County: Congressional District: Hines Industrial area Harney County Oregon 2nd District If the applicant is an unincorporated area, define the geographic area being represented: Harney County 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 partners project income project time frames specify types of activities and equipment used amount or extent of actions (acres, number of homes, etc) environmental, cultural and historical resource requirements Reduction of haazardous fuels in the forest and on rangelands of Harney County is a serious concern of the County Court. Nine rural communities of the county as well as the cities of Burns and Hines have been identified on the list of Oregon State Interface Communities. Most are affected by surrounding BLM lands, while Burns and Hines are most affected by National Forests. The second urgent need in Harney County is support of a struggling wood products businesses which are the remnants of a previously vibrant timber industry. Currently, and for the most of the past year, Harney County has had a jobless rate far above the state and national average, and for eight months, the highest in Oregon. Oregon Department of Employment reported in January reports Harney County jobless rate was 12.4% (Nov. 2001 figures) while the Oregon rate was 7.4%. The county aims to retain and grow jobs associated with utilization of hazardous fuels which will also satisfy the goals of the hazardous fuels reduction projects of land managers. Much research into product utilization has been done on some species, Harney County is ready to begin field trials to utilize as much of available product as possible for a range of identified uses. Listed below are the outcomes which are to be achieved and measured by the project: 1. Biomass - Plants for generation of energy have been under investigation in Harney County for some time. Small plant pilots have been proposed to be located in strategic locations to help school districts support themselves with biomass generation of heat and electricity for their own or market needs. In the immediate timeframe - Louisiana-Pacific has offered to contribute their excess steam from bio-mass to operate a dry kiln for local portable mill owners, and to provide for a trial plant to distill juniper oil, a high value by-product of hazardous fuels removal process. Identification of materials quantity, quality and timeframes of availability of material for bio-mass for energy production is a part of 3 below.Feasibility of bio-mass for energy production is needed. Outcome: Feasibility report to be presented as a product of this project. 2. Value-added wood products -Implement field trials for dairy calf bedding (shavings) with Oregon State Univ. Cooperative Extension Service, Dairy Specialist at the request of the dairy industry in Harney County. Analyze results and if ground truthed, shavings will be produced for sale to the dairy industry by local supplier. Report on trials, analysis and production. Research on juniper oil distillation has advanced the product to the need for production trials. The County is expecting to acquire production equipment to support the trials. Marketing research is still needed before this product can be spun off to a private, local producer. Outcome: All findings of the work done will be reported as a final product of the project. 3. Flow of materials - The project will serve to measure the amount of material becoming available through hazardous fuels removal projects on public and private lands in Harney County. Continued supply of materials from hazardous fuels removal projects will be projected through 2010 in order to assure cooperators of a dependable flow of materials. It is expected that a community dry kiln, obtained by the County and operated on L-P steam will take product from portable mill owners and dry it to make it possible for it to be made into high value finished specialty products by L-P or others. Outcome: Report on raw material available from Harney County sources for 2002 through 2010. Response: 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)? 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? Response: A. There are already several small businesses engaged in making products using under-utilized and small diameter species. Some businesses are full-time year round occupations (such as juniper furniture and art items), others are part-year producers (e.g. contractors who fall the hazardous materials), still others produce wood products (5 portable mills, 1 hog fuel producer). It is expected that the efforts of the pilot project being proposed by Harney County will retain from 5 to 8 jobs over the long term and create from 3 to 5 jobs. Turning local materials into high value specialty products supports county goals for economic diverisity and helps stabilize an otherwise fragile economy. B. Biomass is specifically targeted to be studied and brought to field trial, if feasible. Amounts will not be known until the pilot project advances. Louisiana-Pacific plant has need for fuel for dependable supplies of feedstock for steam generation. C. L-P will contribute steam generated to further the aims of the pilot project - dry kiln operation and distillation of juniper oil trials. D. The pilot project aims to take advantage of research, to do field trials or go to market with products developed or identified. Any and all results of the pilot will be available for public presentation. 2. Reducing fire risk. (30 points) Describe how the proposal promotes reduction of risk in high hazard areas and communities. 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 fuels treatment plan or community fire strategy (include evidence of the plan if it already exists)? D. Explain how the proposal (a) leads to, enhances or restores a local fire-adapted ecosystem, and/or (b) mitigates or leads to the mitigation of hazardous fuels conditions. A. B. Response: A. A. Hazardous fuels reduction projects within Harney County have amounted to 55,000 acres within the past 5 years. Projects planned for fuels reduction/removal within the coming season are: 2,500 acres of mixed species (ponderosa pine predominates, with some fir and juniper on Forest Lands), 52,500 acres of BLM, (predominantly juniper). All rural communities and cities in Harney County are at risk from fuels buildup on both public and private lands. B. All rural communities in Harney County are listed as affected by hazardous fuels on federal and private lands. Private land owners are motivated to remove juniper on their lands for improvement of water resources and encourage growth of grasses and forbs. Utilization of private land fuels has been widespread, landowners welcome removal of fuels on adjacent federal lands since it cuts fire hazard for all. There is no existing community fire strategy. C. Community fire plans are not developed. Crane and Drewsey have both organized Fire Protection Districts within the past three years. Otherwise, fire protection comes from Burns and Hines Fire Departments and federal land management agencies. D. Mitigation of hazardous fuels buildup is a major concern of Harney County Court, they see utilization of materials as a way to encourage public agencies and private landowners to remove fuels buildup. Enclosure 4B (Page 3 of 3) - Project Evaluation Criteria 3. Increasing interagency and intergovernmental coordination. (15 Points) A. To what extent have interested people and communities been provided an opportunity to become informed and involved in this proposal? B. Describe the extent of local support for the project, including any cost-sharing arrangements C. What are the environmental, social and educational benefits of the project? Response: A. Harney County was already working on development of Harney County Natural Resources Inc. to spearhead the efforts which have been delineated above. Over the past few months the partners have been identified: Harney County Court, US Forest Service (Malheur National Forest, Ochoco National Forest), Burns District of the BLM, Harney County Watershed Council, Louisiana Pacific, and others, identified but not committed. Small business owner/operators have been contacted for their input regarding the proposed pilot project are: Bill Runnels (cabins, dimensional lumber), Matt Basey (buildings, log homes, dimensional lumber), Gerry Choate (portable mill for custom lumber orders), Jon Reponen (grinder for hog fuel), Eldon Meeder (furniture), Tom Choate (logs, lumber custom), Bill Winn (custom cut). Dairy Specialist, Mike Gamroth, Oregon State University Extension Service is committed to doing field trial work for dairy calf bedding product. B. The manager of Louisiana-Pacific, Hines plant (Jim Campbell) is a full participating partner in the pilot project. L-P will be contributing facilities for parts of the project. C. Project will benefit the environment to enhance watersheds, improve safety for communities of the county. Social benefits are to create useful product from waste materials. Educational benefits will accrue from a pilot project which demonstrates the principle of "waste not, want not" and shares the results and methods with public. 4. Increasing interagency and intergovernmental coordination. (20 Points) A. Explain the level of cooperation, coordination or strategic planning among federal, state, tribal, local government and community organizations in developing this proposal. List the cooperators. 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: A. A committee of interested parties was assembled by the Harney County Court representing the US Forest Service, BLM, Watershed Council, Harney County, Oregon Economic and Community Development Department and private industry (Louisiana-Pacific Corp.)for the initial planning for the pilot project. Their efforts built on work that has been on-going in the county to better utilize hazardous fuels materials and create value-added product. B. The Harney County Strategic Plan has been under revision by the Community Response Team for the past two years. The Strategic Plan will be released as soon as adoption of its goals, strategies and action items takes place by the county government and the city councils of Burns and Hines, expected by May 2002. The Community Response Team consists of representatives of US Forest Service, BLM, elected officials from City of Burns, City of Hines and Harney County: seven private businesses, Oregon Economic & Community Development Commission and Department. The Strategic Plan addresses the goals, strategies and action items required to achieve the mission of the Community Response Team in three areas: Quality of Life, Economy and Infrastructure. The plan addresses public safety and specific fire hazard issues for rural communities in the Quality of Life section. The Economy section of the plan identifies goals, strategies and action items including the aims of this project. Plan will be provided upon request. Enclosure 4C - Project Work Form Tasks Time Frame Responsible Party Meet with all cooperators in the various aspects of the project to make certain that everyone is ready to do their parts. June 1, 2002 County Court and/or designee Set up field trial for calf bedding with Oregon State University Extension Dairy Specialist June 1, 2002 to September, 2002 Mike Gamroth, OSU Extension Dairy Specialist or designee Dairy Manager or designee Coordinator designated by the County Court County Court will designate someone or an organization to coordinate the flow of materials from the field to that various parts of the project. June 1, 2002 County Court and Judge Steve Grasty Coordinator named to collect all research, fire management project history and plans, identify outcomes to be tracked and reported. Set up mechanism to keep all partners informed regarding the project activities. June 30, 2002 and on-going throughout the project Coordinator of Hazardous Fuels Utilization project. Coordinator to set up the facility to accept hazardous fuels management materials to disperse for shavings project; arrange with Louisiana-Pacific for dry kiln portion of the project and field trial for extraction of juniper oil. August 15, 2002, sooner, if possible Coordinator of Hazardous Fuels Utilization project. Coordinator to track all results of various trials for outcomes reporting. June 15, 2002 and on-going throughout the project Coordinator of Hazardous Fuels Utilization project. Set up field trial juniper oil production on knowledge gained from research at LouisianaPacific plant. September 1, 2002 and on-going throughout the project. Coordinator of Hazardous Fuels Utilization project and the Harney County Court. Identify all materials available from Hazardous Fuels removal projects in the county from past 5 years, 5 years into the future. Report all outcomes from this project. Pass the project to Harney County Resources Inc. or other group designated to carry on. July 1, 2002 and on-going throughout the project. Coordinator of Hazardous Fuels Utilization project and the Harney County Court. Enclosure 4D - Project Budget Cost Category Description Federal Agency Personnel 1.0 fte $30,000.00 Subtotal $30,000.00 Fringe Benefits as above $7,500.00 Subtotal $7,500.00 Applicant $0.00 $0.00 Partner 1 $0.00 $0.00 Partner 2 Total $0.00 $0.00 $30,000.00 $0.00 $30,000.00 $0.00 $0.00 $7,500.00 $0.00 $7,500.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $0.00 $0.00 $12,500.00 $15,000.00 $27,500.00 $0.00 $0.00 $4,000.00 $0.00 $4,000.00 $0.00 $0.00 $5,000.00 $12,000.00 $17,000.00 Travel $1,000.00 Subtotal Equipment Dry Kiln - small capacity* Extraction equip/ oil* Subtotal $1,000.00 $0.00 $12,500.00 $15,000.00 $27,500.00 Supplies Project Office support $2,000.00 $2,000.00 Subtotal $2,000.00 $2,000.00 Contractual OSU - calf bedding trials Juniper oil prod/analysis Subtotal $6,500.00-hauling $5,000.00 $12,000.00 $17,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 Other Facility - sort/store Facility-production Subtotal $0.00 $26,000.00 $5,000.00 $5,000.00 $0.00 $0.00 $26,000.00 $5,000.00 $31,000.00 Total Costs $56,500.00 $56,500.00 $5,000.00 $0.00 $118,000.00 Project (Program) Income1 1 $0.00 $26,000.00 $0.00 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.