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:
Rural Technology Initiative (RTI)/University of Washington
Phone:
FAX:
Email:
(206) 616 - 3218
(206) 685 - 0790
rti@u.washington.edu
Address (Street or P. O. Box, City, State, Zip):
Box 352100, University of Washington, College of Forest Resources (CFR), Seattle, WA 981
Project Coordinator
Project Coordinator (Name and Title):
Bruce Lippke, RTI Director and CFR Faculty
Organization/Jurisdiction:
Bruce Lippke, RTI Director and CFR Faculty
Phone:
FAX:
Email:
(206) 616 3218
(206) 685 0790
blippke@u.washington.edu
Project Information
Project Title:
Case Studies of Small Diameter Processing Equipment for Different Levels of Investment
Project Start:
Project End:
October 1, 2002
September 30, 2003
Federal Funding Request:
Total Project Funding:
$99,753
$124,922
Are you submitting multiple projects? If so, please explain and prioritize:
No
Brief Project Description:
In cooperation with local economic developers, equipment consultants and utilities this project will
investigate the feasibility of three small business manufacturing alternatives to utilize small
diameter logs, with each requiring different levels of investment. A low cost, $100,000, portable
saw mill has been designed locally to manufacture lumber in the woods from small diameter logs.
A trailer mounted veneer lathe specially designed to utilize small diameter logs at the harvest
location could be purchased with necessary support equipment for under $1,000,000. Small cogeneration facilities to produce steam and electricity may cost less than $5,000,000 and could
utilize forest biomass baled or chipped in the woods to augment log and industrial residual fuel
supplies. This project will investigate the fixed and variable costs, raw material needs, employment
opportunities, tax contributions, product potentials, and other opportunities associated with
operation of one or more of these facilities and resulting contribution to fuel risk reduction and rural
economic vitality.
Project Location:
County:
Congressional District:
Washington
Okanogan
4
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
 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:
Large areas of forestland in the inland west are overstocked with small diameter suppressed trees. These
forests have unprecedented fuel loads and are at a high risk of catastrophic forest fire. Methods to reduce
fuel loads include mastication (chipping and/or mulching) of the material; or harvesting the trees to produce
energy or products. Mastication costs upwards of $300 - $500/acre. Harvest costs to remove small
diameter trees and reduce fuel loads frequently exceed log values. Rural communities, most at risk from
forest fires, are often economically depressed. The National Fire Plan seeks to reduce forest fuel loads at
the "Wildland Urban Interface" while facilitating local economic improvement. Feasibility studies that
characterize a range of investment alternatives and operational costs for creating value from small diameter
logs are needed to assist local entrepreneurs, community economic development planners, and forest
managers in making processing decisions appropriate to local conditions. In cooperation with local
economic developers, equipment consultants and utilities this project will investigate the feasability of
three small business manufacturing alternatives to utilize small diameter logs, with each requiring a
different level of investment.
A low cost portable saw mill: This operation is capable of manufacturing rough green lumber in the woods to
reduce expensive handling associated with small diameter logs. Logs may be skidded in short lengths to
minimize forest impacts by a small skidder, tractor, or ATV. Chipper-heads square off the logs leaving the
chips on the forest floor. Investment including support equipment is estimated at less than $100,000.
A trailer mounted veneer lathe: This equipment, fixed to a 40 foot trailer, is capable of producing green
veneer from logs cut to four foot lengths at landing locations throughout the forest. The ability to
manufacture short length logs in the woods reduces expensive small log handling and maximizes product
recovery potential. Investment including support equipment is estimated at less than $1,000,000.
Small co-generation facilities: Such a facilitiy scaled to produce 2-3 megawatts of electricity with a
potential for expansion could be located in forest communities to reduce biomass haul distances. Benefits
to communities include low cost clean energy and steam for heat and auxillary business support. Emerging
technologies to chip or bale forest biomass will be examined for more efficient removal of small logs and
residuals in support of co-generation. Investment including support equipment is estimated at less than
$5,000,000.
These processes have unique features attractive in remote areas like the Okanogan. The project will
investigate the fixed and variable costs, raw material needs, employment opportunities, tax contributions,
and product potentials to operate one or more of these facilities while contributing to fire risk reduction and
rural economic vitality. Equipment investment and debt requirements will be calculated along with
operational costs such as energy, labor, administration, marketing, taxes, etc. for production simulations.
Raw material needs and costs under a range of removal assumptions, as well as gross and net returns will
be assessed. The final reports will also characterize profitability thresholds essential to the development of
business plans by local investors. Resulting communty benefits to employment (direct and indirect), tax
reciepts, and environmental health (acres restored to reduced fuel levels) will be summarized. This project
would begin October 1, 2002 and be completed by September 30, 2003. The primary contributing partners
will include University of Washington, University of Idaho, the Okanogan Community Development
Council, and Chelan County Public Utility District.
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.
Accurate information on innovative new approaches is essential to business investment, and the
support provided by economic development planners and forest managers. Conventional processing
approaches are not well matched to local situations. The three processing alternatives examined will all
produce direct year round jobs as well as support for indirect full and part time employment. Employment
estimates will be developed in the project report. They will vary with each alternative and can be scaled to
raw material availability and processing activity.
B. All alternatives utilize forest materials associated with fuel reduction activities. Project findings will
include assessments of tons of biomass (and treated forest acreage equivalents) that can be utilized by each
processing alternative considering possible incentives such as for energy from biomass.
C. The Okanogan Community Development Council was formed to investigate and encourage business
investment. Local Public Utility Districts such as Chelan PUD are interested in "green" energy generation.
Private business will respond to attractive processing, logging and hauling alternatives.
D. Project findings will be useful to communities and businesses as they attempt to customize local strategies
to combine economic development with fire risk reduction in overstocked small diameter forests.
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: The success
A.
B.
C.
D.
of fuel reduction programs will depend on sound econmics at the right scale.
An obstacle to fuel reduction activity in small diameter forests has historically been the low value of
forest biomass targeted for removal. This project will examine three approaches scaled for different
investment capabilities that have been designed to improve the economics of small diameter log and
residual removals while creating local economic activity.
By combining fuel reduction activities with local economic development, communities benefit two fold:
the forest community is safer and employment is provided. The federal lands benefit from the processing
infrastructure and better economics needed to support small diameter forest removals, essential
components for restoring forests to pre-settlement fuel loads.
Better economics and infrastructure are prerquisite to a community fire strategy and treatment plan.
Feasible processing alternatives will provide a strong underpinning for establishing community plans.
A century of fire suppression has left millions of acres of inland west forests with unprecedented fuel
loads. The effort to reduce these fuel loads to a less volatile condition will require new treatment and
processing methods. A manufacturing infrastructure to support this long term activity will be essential.
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: The Rural
Technology Initiative (RTI) was created to aid in the transfer of technology for managing
forests for increased timber products and environmental values in support of rural forest-resource based
communities. An advisory board representing rural constituents and community groups supports and guides
RTI activities. RTI staff, faculty, and supported graduate students have extensive expertise in forestry
modeling capabilities and development of technology-based training modules for delivery to rural
communities. RTI will disseminate study findings through its network of tribes, consultants, WSU
Extension agents, landowners, community organizations, and industrial associations. RTI can gather
information from other processors while avoiding conflict of interest agreements. RTI will coordinate
research with complementary projects undertaken by the Colville and Yakama Tribes. RTI has a technology
delivery system through UW, WSU Extension and learning centers to continue training and outreach
activities long after project completion. For this project, RTI will work in partnership with the Okanogan
Community Development Council (OCDC) and the Chelan County PUD to recruit local interest in
investment alternatives. Increased infrastructure in fuel reduction activities will be needed to restore inland
forests to earlier conditions without catsorophic fires. Communities and investors need to be better informed
on the economic barriers to sustainable management and communities. The findings will apply to other
regions since Okanogon provides a very high cost setting.
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.
Okanogan county has both a high fire risk and unemployment. The Okanogon Community
Development Council is a cooperator and linked with other community organizations. They are committed to
the investigation of economic development strategies that reduce fire risk. Business opportunities that require
relatively small investment are especially attractive. The Chelan County PUD is interested in co-generation
to produce clean and affordable energy locally. While forest biomass for co-generation has been more
expensive than natural gas, a number of factors can make biomass competitive. New technologies for more
efficient handling of forest biomass such as in-the-woods chipping and bailing equipment can reduce
delivered costs. When coupled with incentives for fuel removal, a current consideration by policy-makers,
these technologies make biomass increasingly competitive. University of Idaho has extensive data on yarding
and log handling and will assess the feasibility of new methods for field chipping, bailing and related
processes. The University of Washington Rural Technology Initiative has extensive experience in economic
anlaysis and business case studies and will provide the analysis of investment and operating costs, revenues,
employment and taxes for processing alternatives. RTI provides training and technology transfer consulting
with rural community groups, tribes, forest managers and processors. With more feasible options much more
effective training and fire risk reduction strategies can be developed working with these groups.
Response:
Enclosure 4C - Project Work Form
Tasks
Time Frame
Responsible Party
1. Collect comparable processing, log yarding
and handling cost, and employment data
Oct- Dec.
U of Idaho
RTI, UW/WSU
Chelan PUD
2. Analize new processing and handling
configurations for investment costs,
manpower needs, and productivity with a
comparative analysis to more conventional
methods.
Jan-March
U of Idaho
RTI, UW/WSU
3. Conduct interviews with experienced
operators as reviewers to identify uncertain
estimates and other risks
April - May
U of Idaho
RTI, UW/WSU
4. Develop raw material availability scenarios
for specific locations
Oct - Feb
RIT, UW/WSU
OCDC
Chelan PUD
5. Synthesize facility scales and equipment
alternatives with the highest relative
performance for supply scenarios
June- August
RTI, UW/WSU
U of Idaho
Chelan PUD
6. Conduct interviews with rural lenders using
preliminary proforma analysis
August- September
RTI, UW/WSU
OCDC
7. Complete final report and present in
appropriate communities
September
and ongoing activity of RTI
RTI, UW/WSU
U of Idaho
Enclosure 4D - Project Budget
Cost Category
Description
Applicant:
Rural
Technology
Initiative (UW)
Personnel
Senior Researchers
Staff
Subtotal
$0.00
$14258.00
19728.00
33986.00
$0.00
3206.00
4690.00
7896.00
UW Match
Okanogan
Community
Development
Council
Total
$0.00 (APA*)
30472.00
19728.00
50200.00
$0.00(APA*)
6968.00
4690.00
11658.00
$0.00(APA*)
3200.00
$0.00
3200.00
$0.00(APA*)
$0.00
$0.00
$0.00
$0.00(APA*)
1000.00
$0.00
1000.00
$0.00(APA*)
1500.00
32000.00
33500.00
$16214
16214.00
Fringe Benefits
Subtotal
Travel
Mill Visits
Subtotal
3762.00
3762
3200.00
$0.00
3200.00
$0.00
Equipment
Subtotal
$0.00
$0.00
$0.00
Supplies
1000.00
Subtotal
Contractual
UW Contract Services
Consulting Services
Subtotal
$0.00
$0.00
Other
Indirect Costs
1000.00
00.
$0.00
1500.00
32000.00
33500.00
$0.00
20171.00
5194.00
Subtotal
$0.00
20171.00
5194.00
$0.00(APA*)
25169.00
$0.00
25169.00
Total Costs
$0.00
$99753.00
$25169.00
$0.00(APA*)
$124922.00
0.00
0.00
Project (Program) Income1
$0.00
* Already Planned Activity
1
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.