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:
North Central Washington Resource Conservation & Development (NCWRC&D)
Phone:
FAX:
Email:
ncwrcd@televar.co
509 682-8284
509 682-4522
ncwrcd@televar.com
Address (Street or P. O. Box, City, State, Zip):
PO Box 666, Chelan, WA 98816
Project Coordinator
Project Coordinator (Name and Title):
Mike Ferris
Executive Director
Organization/Jurisdiction:
Okanogan Communities Development Council (OCDC)
Phone:
FAX:
Email:
509 997-2245
509 997-2273
mikef@methow.com
Project Information
Project Title:
Small Diameter Wood Processing - Phase 3 Products Mfg. & Market Testing
Project Start:
Project End:
August 31, 2002
August 31, 2002
Federal Funding Request:
Total Project Funding:
$100,000.00
$125,000.00
Are you submitting multiple projects? If so, please explain and prioritize:
No
Brief Project Description:
Phases I & 2 Feasibility/Business Planning (NFP 01) identified flooring and paneling products as
having the best potential for value-added manufacturing from small diameter wood from local
forests. A final report being prepared this month by OCDC's consultants addresses strategies,
costs and revenue estimates for producing approximately 440 mbf annually of flooring and paneling
products. This proposal(Ph 3) will provide needed information concerning the ability of existing
producers utilizing existing equipment and infrastructure to profitably produce high quality, market
acceptable products. The resulting products will be used as test marketing samples. The project
will engage existing local producers in a demonstration project to: 1.Evaluate quantity and quality of
selected stands of local small diameter suppressed douglas fir and ponderosa pine for the product
lines envisioned; 2. Determine potential recovery rates and costs for milling this wood into various
products; and 3. Test market those samples to determine potential pricing and market acceptance.
Anticipated benefits of this pilot project include:1.Suitabilities of existing infrastructure to produce
desired results; 2. Test cooperative arrangements between local producers; 3. Refine Business
Plan assumptions with actual results.
Project Location:
County:
Congressional District:
Okanogan
Okanogan
4th
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
PROJECT LOCATION:The project is located in Okanogan County, WA. Sample loads of small
diameter timber harvested from the Hungry Hunter Project (a USFS Stewardship Pilot) as well as other USFS
thinning sites will be processed in existing facilities in Oroville and Tonasket.
PROJECT IMPLEMENTATION: Contracts will be established with existing producers in the County to
harvest, transport, sort, process, kiln-dry and manufacture flooring and panelling products for market testing.
Grant funds will be used to reimburse participating producer's direct costs. The project will be overseen and
monitored by OCDC staff and experienced consultants and data produced used to refine business plans and
establish market outlets for future production runs. Test run product samples will be distributed to various
market outlets and distributors for eva luation and response. Cost and production data will be compiled from
each step and a report will summarize findings, analysis and recommendations.
ANTICIPATED OUTCOMES: The project will provide valuable data on 1. Supply sources and small log
fiber suitability for value added products 2. Recovery of value added materials utilizing various existing
processing equipment and facilities and 3. Market acceptance, pricing and revenue potentials from samples
produced. Results of this project will verify or modify Phase 1 & 2 Feasibility/Business Planning asumptions
and point to potential needs for equipment or facility additions and/or replacements, investment needs and
returns and marketing requirements in order to proceed to full production levels as indicated in the Business
Plan.
MEASURES & REPORTING: Data will be compiled at all stages and analyzed and summarized in a report.
PARTNERS: OCDC's partners include NCWRC&D as fiscal agent and technical advisor; Healthy
Forests/Healthy Communities Partnership (Partner 1in 4D Project Budget) who will assist in product test
marketing; U of Wash. RTI who have offered technical assistance; Partnership for a Sustainable Methow's
Forest Stewardship Project which will provide a potential source of small logs; Alliance 2005 which will
assist in obtaining funding for potential facility needs; and a number of small businesses in Okanogan
County who we will work with to complete the project.
PROJECT INCOMES: No direct income is anticipated as the products produced will be used as marketing
samples.
TIME FRAMES: The project is anticipated to be completed within six months of start date.
ACTIVITIES & EQUIPMENT: Processing equipment anticipated to be utilized includes: Sawmilling - the
Lil Whitler (portable mill) and an existing small diameter mill (chip& saw mill). Kiln: an existing large
commercial kiln and a small dehumidification kiln to be rented for this project: moulder - existing equipment
owned by a local operator.
EXTENT OF ACTIONS: Estimated log supply to be processed = 4-6 truckloads
ENVIRONMENTAL & OTHER REQUIREMENTS: Logs are anticipated to be sourced from Hungry
Hunter Pilot Project and other USFS projects already in compliance with NEPA/SEPA and related
requirements.
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?
A. ECONOMIC IMPACT: Jobs created during this project will be short term only. If sucessful,
long term new jobs created will include logging and forest workers, truck and machine operators, sawing,
planing, and millworkers, furniture makers, fence-post-rail builders, and marketing and sales jobs. A
conservative estimate of new jobs created by this project over the next 3-5 years is from 15- 20 direct jobs
and 25-40 indirect jobs for a total of 40-60 jobs.
B. FUELS REDUCTION: If tests for utilizing small diameter timber for value added products are sucessful,
we anticipate creating an annual supply requirement roughly estimated at 1500 - 2000 acres of thinning
activities to sustain Business Plan targets for paneling/flooring production and related residual products.
C. BUSINESS PARTICIPANTS: Several local businesses have indicated interest in participating, including
Zoesel Lumber, Havilah Shake, Ark II, Leslie/Cockle (Lil Whitler & Pack Rat). Other contractors may also
be engaged, depending upon need. Specific agreements will be made during first step, Study Design.
D..MODEL POTENTIAL: Study data and results could apply to various communites in the Okanogan region
and the methodologies are applicable throughout the Western U.S.
Response:
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.
HAZARD REDUCTION: This project is not expected to have significant impacts upon fuels
reduction in the short term. However by finding economic uses for the products of forest thinning, it is
believed that fuels reduction and forest restoration activities will be more economically viable in the long run.
B. RESOURCE BENEFITS & COMMUNITY SAFETY: The Okanogan region has been hit hard by
devastating wild fires in the last few years, with four fire fighters killed last year and many homes endangered
and/or destroyed. Target areas for thinning of small diameter wood are in this urban interface of dense dry
forest where our test supply will come for this project.
C. COOPERATIVE FUELS TREATMENT PLANNING: This project supports the local Forest Stewardship
Project's thinning and restoration activities as well as the USFS and State of Washington's timber sales by
serving as a source of demand for their otherwise non-merchantable materials.
D. RESTORATION/MITIGATION: A target source of supply for this project is the Twisp Ranger District's
Hungry Hunter Pilot Stewardship project, containing 6000- 7000 acres of treatment within this 20,000+ acre
LSR area. The area was chosen because of its urban interface, diverse fire-adapted ecosystem, and dry dense
conditions. Creating demand for material here may help ease budget constraints for necessary thinning work.
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.
COMMUNITY INVOLVEMENT: OCDC completed a Wood Products Survey that identified
80 wood-related businesses in Okanogan County. A mailing & email list was created from this information.
All producers have been informed about Phase I and 2 Feasibility/Business Planning work in this way. Four
Community Meetings have been held in Tonasket and in the Methow Valley to present consultant findings
and to receive input. The general public has been kept informed by press releases, newspaper articles and
radio announcements. In addition, numerous meetings have been held with business owners, civic leaders and
governmental and non-profit organizations to network and build alliances.
B. LOCAL SUPPORT: The project was rated second highest in prioity on the WACERT list for Okanogan
County. OCDC has recieved project support and endorsements from many organizations, including the
Alliance 2005 (the local county economic development agency), the North Central Wash. RC&D ( our fiscal
agent) Partnership for a Sustainable Methow (sponser of the Forest Stewardship Project) The U of Wash's
Rural Technology Initiative, The Okanogan Revolving Loan Fund, the Towns of Twisp and Tonasket.
C. PROJECT BENEFITS: Okanogan County has the second highest unemployment rate in the state at 13%.
The primary social benefit from this project is increased living-wage jobs. The primary environmental benefit
is improvement of our local forest health and reduction of fire hazards. We are educating the community by
demonstrating how forest restoration can create meaningful work opportunities.
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.
AGENCY COORDINATION: OCDC has worked closely with the USDA Forest Service and
WA/OTED staff in Phases 1 & 2 Feasibility/Business Planning and in tailoring this Phase 3 proposal to
systematically test the capabilities of local infrastructure and wood supplies before making investment in new
capital or technology for wood products manufacturing. We have also worked closely with local USFS ranger
district staff to identify and position our project for upcoming timber sales and thinning contracts. (We are a
member of the expanded PAC for the Hungry Hunter Pilot Stewardship project). We have partnered with
several other organizations (several previously mentioned) including the Colville Confederated Tibes, The
Forest Stewardship Project (through PSM), Alliance 2005, Town of Twisp and Town of Tonasket(business
sites). OCDC has recieved support from Healty Forest Healthy Communities Partnership in completing a
wood products survey that identified 80 producers in Okanogan County. Being a member allows us to
network with sdw projects in other regions. HFJC will recieve support in the market testing aspects of this
project.
B. INTERGOVERMENTAL STRATEGY: Small Diameter Wood Utilization recieved a number two ranking
out of over 30+ projects in Okanogan County in the last WACERT list.We are assisting the Alliance 2005
(Okanogan County's economic development planning agency) to develope infrastructure and incubator space
to house wood products and other agri-businesses in Tonasket and Twisp and in implementing other plans
for community development in the Okanogan.
Enclosure 4C - Project Work Form
Tasks
Time Frame
Responsible Party
1. STUDY DESIGN - Preparation of a
detailed work plan for completion of this pilot
test including agreements with participating
contractors, budgets and time schedules for
each element.
2 - 3 weeks
OCDC staff in conjunction with
consultants and participating
producers.
2. LOG SOURCING - Arrangements will be
completed for harvesting and delivery of sdt
to the processing site. Harvesting will be
monitored for log selection.
2 - 3 weeks
OCDC staff, consultants & selected
contractor
3. LOG SORTING/MEASURING - Logs will
be sorted, graded, measured, weighed, marked
and data compiled. Bucking lengths will also
be determined. Non-saw logs will be sorted
for suitability as poles, firewood, or other
products.
1 - 2 weeks
OCDC staff , consultants & selected
contractor
4. SAWING - Selected logs will be rough
sawn into cants utilizing both small portable
mill and automated sd mill technologies and
then resawn to 1" boards. Data will be
compiled on production rates and costs for
imputs/outputs.
1-2 weeks
Selected Contractors with
monitoring by OCDC
staff/consultants
5. KILN DRYING - Sawn boards will be kiln
dried using both large commercial kiln and
small dehumidifier type kiln. Monitoring of
drying process.
1-2 weeks
Selected Contractors with monitoring
by OCDC consultants
6.GRADING and MOULDING - Dried
boards will be sorted and graded with higher
grades moulded into flooring and paneling
products. Remainder will be assessed for other
use.
2-3 weeks
Selected Contractors with monitoring
by OCDC staff and consultants.
7. MARKET TESTING - Samples will be
prepared, both finished & unfinished for
distribution to target companies. Data will be
compiled on contacts, response, pricing
suggestions and order potentials.
4 - 6 weeks
OCDC staff & consultants with
HFHC staff assistance.
8. DATA COMPILATION & REPORT Data collected at all stages will be compiled
and analysed to determine production rates,
costs, and market potentials for products
produced including residuals. Business Plan
will be updated.
3 - 4 weeks
OCDC staff & consultants.
Enclosure 4D - Project Budget
Cost Category
Description
Personnel
Project Director
StaffSstaff
Staff
Subtotal
Federal
Agency
$12,000.00
$8,000.00
$20,000.00
Applicant
$8,000.00
$6,800.00
$14,800.00
Partner 1
$0.00
Partner 2
Total
$0.00
$0.00
$20,000.00
$14,800.00
$34,800.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$3,700.00
$0.00
$3,700.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$7,000.00
$3,000.00
$10,000.00
$0.00
$0.00
$25,000.00
$27,000.00
$52,000.00
Fringe Benefits
Subtotal
$0.00
$0.00
$0.00
Travel
Subtotal
$3,000.00
$700.00
$3,000.00
$700.00
$0.00
Equipment
Subtotal
$0.00
$0.00
Supplies
logs
other
Subtotal
$7,000.00
$2,000.00
$9,000.00
Contractual
Consultants
Contractors
Subtotal
$25,000.00
$27,000.00
$52,000.00
$0.00
Other
Indirect
Grant Admin.
Subtotal
$6,000.00
$10,000.00
$16,000.00
$1,500.00
$2,000.00
$3,500.00
$5,000.00
$0.00
$5,000.00
$7,500.00
$12,000.00
$24,500.00
Total Costs
$100,000.00
$20,000.00
$5,000.00
$0.00
$125,000.00
Project (Program) Income1
1
$0.00
$1,000.00
$1,000.00
$0.00
$0.00
$5,000.00
$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.