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: Northwest Wood Products Association (NWPA) Phone: FAX: Email: 541/388-8421 541/389-8572 dennisb@empnet.com Address (Street or P. O. Box, City, State, Zip): 18900 Ravenwood Dr., Bend, OR 97702 Project Coordinator Project Coordinator (Name and Title): Dennis Brock, Executive Director Organization/Jurisdiction: NWPA Phone: FAX: Email: See Above See Above See Above Project Information Project Title: Smaller-Diameter Lodgepole Pine Value-Added Manufacturing Trials and Market Acceptance Project Start: Project End: July 1, 2002 June 30, 2003 Federal Funding Request: Total Project Funding: $64,100.00 $82,100.00 Are you submitting multiple projects? If so, please explain and prioritize: No Brief Project Description: There are four varieties of lodgepole pine in the Western U.S. (Pinus contorta). Secondary manufacturers are interested in using smaller diameter lodgepole pine removed as part of fuel treatments in Eastern Oregon, but are uncertain if the Oregon variety (mostly murryana) has the same manufacturing characteristics and appearance as the more northen variety (latifolia). Primary mills that cut lodgepole pine in Eastern Oregon are not willing to adapt current manufacturing practicies to accommodate secondary manufactuer needs unless there is sufficient demand. A number of secondary manufacturers have dropped product lines that use LPP because of unreliable nature of supply. This project consists of: 1) Evaluating LPP demand and characteristics required by members of NWPA, and other secondary manufacturers; 2) Sourcing raw material from six different sawmills (three sawmills each in E. OR and E. WA); 3) Conducting and documenting manufacturing trials at three OR secondary manufacturers to evaluate characterisitics and appearance; 4) Determining market acceptance; and 5) Preparing a report and disseminating information through NWPA meetings, publications, primary manufacturers in Eastern OR and Eastern WA, and U of WA, WSU, and OSU Extension mailing lists. Project Location: County: Congressional District: Various Locations in OR N/A N/A If the applicant is an unincorporated area, define the geographic area being represented: N/A 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 Response: PROJECT LOCATION: Material will be sourced from Crown Pacific (Gilchrist, OR), Kinzua Resources (Pilot Rock, OR), Boise Cascade (La Grande, OR), Zosel Lbr. Co. (Oroville; WA), Vagaan Bros Lbr Inc. (Republic, WA); and Colville Indians Precision Pine (Omak, WA). Manufacturing trials will occur at three secondary manufacturing firms in OR, including Morelock Enterprises (Bend), Pacific Rim Manufacturing (Jasper, OR), and Rainier Wood Products (Sweethome). PROJECT IMPLEMENTATION (includes Activities and Equipment): About 8 MBF of lodgepole pine (LPP) lumber will be purchased from each of the mills cited above (2 MBF each, 1X4 and 1X6, D Select and #2 Com&btr). The Project Coordinator will work with mills to ensure lumber represents what can be obtained from smaller diameter LPP that is currently and expected to be available. Material will be transported to Blasen & Blasen (Portland) for drying/re-drying, sorting, coding, and bundling samples for shipping to the secondary manufacturers cited above. Secondary manufacturing protocol will be provided by Scott Leavengood, OSU Wood Products Extension, who will also monitor implementation and summarize results. Manufacturers will use their own customer base and product lines to test market acceptance with remaining material. Results will be presented at one NWPA meeting, published in a report and summarized for distribution through NWPA and extension networks in both WA and OR, posted on an OSU web site, and possibly published in a professional journal. ANTICIPATED OUTCOMES: Confirmation of manufacturing characteristics and market acceptance of smaller diameter E. OR LPP as compared to E. WA/Canada LPP. Could lead to greater acceptance of E. OR LPP for value-added purposes rather than simply commodity grade lumber or post/poles. MEASURES & REPORTING: Project will result in report documenting: 1) Raw material characteristics (lumber); 2) Manufacturing trials results and comparisons; 3) Rough economic analysis of options; 4) Characterization of market acceptance and potential demand; and 5) Recommendations for primary mill breakdown and grading to meet secondary manufacturer specifications. Report summaries will be distributed through NWPA and other industry association meetings and newsletters, OR and WA extension networks, posted on an OSU web site, and possibly published in a professional journal. PARTNERS: NWPA, OSU Wood Products Extension, Blasen & Blasen, Morelock Enterprises, Pacific Rim Manufacturing, and Rainier Wood Products.. PROJECT TIME FRAME: 12 Months AMT./EXTENT OF ACTIVITIES: Limited acreage will be treated due to small amount of raw material needed. Long-term there is potential, if manufacturing characteristics and market acceptance are comparable, that higher-value products will be produced from portion of smaller-diameter LPP removed during fuels treatments.. ENVIRONMENTAL REVIEW REQUIREMENTS: None. No site disturbance involved. Will be purchasing already manufactured lumber. 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: Analysis will include rough economic and market projections that can be used to estimate demand and production. Until that is completed, no estimates about jobs and sustainable economic activity can be provided. The potential is to contribute to job retention to an as yet unknown degree. B: About 48 MBF of LPP lumber will be utilzied. A significant portion of the lumber will represent smaller diameter LPP removed as part of fuels reduction and forest thinning treatments. Lumber will be processed by secondary manufacturers to compare and contrast manufacturing characteristics, recovery, market acceptance, and ecnomics. C: In-kind contributions (machine and personnel time for manufacturing trials and market acceptance activities) have been committed by Pacific Rim Manufacturing, Morelock Enterprises, and Rainier Wood Products. D: Project will be model of sharply-focused, manufacturing and marketing trials using private industry and industry associations as lead, with government and extension in support. 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.: Significant portion of raw material will be smaller-diameter LPP obtained from fuels and thinning treatments. Most of raw material will come from high fire risk areas, especially in OR. B: Proposal will provide necessary information to manufacturers (primary and secondary) to evaluate whether or not E. OR LPP will meet economic constraints and market acceptance. The potential is that if E. OR LPP is acceptable, more value-added options will open-up for LPP. This will indirectly allow more acres of this fuel type to be treated due to imporved economic return and interest of sawmills. C: Utilization of smaller-diameter material is a part of many community econmic development and fuels reduction plans, especially the Blue Mtn. Demonstration Area. D: E. OR sawmills will be better able to bid and work on fuels treatment projects with LPP components if there are higher value-added markets for their lumber. 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: NWPA has conducted over 40 interviews about lesser-known or under-utilized species with manufacturers located in small communities throughout OR. Interest in better and more consistent sources of LPP was one of the top items recorded. B. Secondary manufacturers participating in these trials are expecting to contribute in-kind equipment and personnel time of at least $12,000. OSU Wood Products Extension expects to contribute in-kind over $5,000 in time. C. Environmental - Potential increase in value-added uses for smaller-diameter LPP; Social - Demonstration of industry interest in value-added uses for smaller-diameter LPP as well as job retention in forest products industry; Educational - Will disseminate information widely, especially through industry and extension networks. Will also post report on OSU web site and submit to appropriate professional journal for publication. 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. Although NWPA is submitting the project, assistance in identifying and developing the project were provided by USFS, State and Private Forestry/Oregon Economic and Community Development Dept. (Larry Swan), OSU Wood Products Extension (Scott Leavengood), and NWPA Board members. This project also directly addresses concerns and interests of the Central Oregon Partnerships for Wildfire Risk Reduction (COPWR), funded in part by a NFP grant last year. Industry cooperators include Rainier Wood Products, Morelock Enterprises, Pacific Rim Manufacturing, and the primary mills mentioned on p. 1 of this application. B. This project direclty addresses concerns, interests, and overall strategy of the Central Oregon Partnerships for Wildfire Risk Reduction (COPWR), funded in part by a NFP grant last year and adminstered by the Central Oregon Intergovernmental Council, and also the Blue Mtn. Demonstration Area plan and strategies. Proposal also supports many rural community and intergovernmental strategies and plans by addresssing the issue of how to add value to smaller-diameter trees removed for fuels treatment and watershed restoration projects. Enclosure 4C - Project Work Form Tasks Time Frame Responsible Party Finalize Work Plan , Trials Protocol, and Time Lines 30 Days NWPA & OSU Wood Products Extension Obtain LPP Lumber From Sawmills and Transport to Blasen & Blasen (Portland) 30 Days NWPA & OSU Wood Products Extension (through private trucking firms) Re-Dry LPP Lumber, Sort, Code, Bundle, and Ship to Secondary Manufacturers 30 Days NWPA & OSU Wood Products Extension (through private trucking firm) Conduct Manufacturing and Market Acceptance Trials, and Record Results 90 Days Secondary Manufacturers & OSU Wood Products Extension Compile Results, Prepare Draft Report, and Submit to Reviewers 60 Days NWPA & OSU Wood Products Extension Complete Final Report, and Report Summaries for Association and Extension Dissemination, and Post on OSU Web Site 30 Days NWPA & OSU Wood Products Extension Make at least One Presentation to NWPA Meeting and Submit Article to Professional Journal 60 Days NWPA & OSU Wood Products Extension Enclosure 4D - Project Budget Cost Category Description Personnel NWPA (Admin & Proj Coord) OSU IK (/Data/Rpt/Present) Subtotal Federal Agency Applicant $9,000.00 $1,000.00 $9,000.00 $1,000.00 Partner 1 $5,000.00 $5,000.00 Partner 2 Total $0.00 $0.00 $10,000.00 $5,000.00 $15,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00 $1,000.00 $2,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $43,500.00 $0.00 $43,500.00 $0.00 $0.00 $9,600.00 $0.00 $9,600.00 Fringe Benefits Subtotal Travel NWPA OSU In-Kind (IK) Subtotal $0.00 $1,000.00 $1,000.00 $2,000.00 $0.00 $0.00 $0.00 $0.00 Equipment Subtotal $0.00 Supplies LPP Lbr & Trucking $43,500.00 Subtotal $43,500.00 Contractual Re-Dry, Sort, Code & Bundle $9,600.00 Subtotal $9,600.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Other 2nd Manufacturer In-Kind Subtotal $0.00 $0.00 $0.00 $12,000.00 $0.00 $12,000.00 $0.00 $12,000.00 Total Costs $64,100.00 $1,000.00 $5,000.00 $12,000.00 $82,100.00 Project (Program) Income1 1 $12,000.00 $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.