Small Woody Biomass Utilization by Vaagen Bros

Small Woody Biomass Utilization by ABCO Wood Recycling, LLC

on the Idaho Panhandle National Forest

Project Summary: Shoshone and Kootenai Counties are participating in a study called "The Woody Biomass Energy Co-generation Facility Feasibility Study in Idaho" conducted by the University of Idaho. Part of the content will be a template for conducting site-specific resource assessments in northern Idaho. This is an integral part for the feasibility study for the removal and utilization of more materials from the National Forests near communities in the Counties of Northern Idaho. Shoshone, Kootenai and Bonner Counties have adopted Community Wildfire Protection Plans which call for the removal of woody biomass fuels from the Wildland Urban Interface (WUI) zones of the National Forest. Those fire plans cover more than 60,000 acres. Collaborative planning efforts are ongoing in both the Kaniksu District and the Coeur d’Alene River District of the Panhandle National Forest to successfully permit fuels reduction projects.

Much of this woody material could be removed and utilized for economic gain, such as for chips for paper products or for biomass fuel for electrical generation within the nearby communities. As the material is brought from the woods, some of it may be recoverable for very small lumber products or other uses. These alternatives are superior to the burning of slash in the woods which is both an expense to the National Forest and contributes to regional air pollution. Further, many of the “slash piles” are not burned and are left to accumulate as fuel. This project will lead to the removal of substantially more small woody biomass from the National Forest System and the utilization of this slash and other small woody biomass for electrical generation, paper products, agricultural, garden and other products. This project will add economic value to what is otherwise considered a complete waste and an expense to the National Forest.

ABCO Wood Recycling, LLC will invest into the acquisition and operation of a Peterson horizontal feed grinder that can utilize much of the materials being left in the woods as slash. This grinder is portable and can be located at the landing or at satellite staging areas where small woody biomass is collected. The grinder also “walks” on tracks and can move about in the forest to approach slash piles. The grinder itself costs $450,000. Personnel, project management and set-up and initial operation of the machinery will cost approximately $25,375. Grant administration, reporting and project monitoring will cost $15,225. ABCO requests a grant amount of $250,000 and will contribute approximately $272,100 with cash and in-kind contributions to the project. (See, Budget).

The grinder has the capacity to utilize 150 green tons of material per hour. This material can be segregated for use as fuel for biomass electrical generation and for agricultural products. The grinder will maximize the value of materials and recover materials that would otherwise be wasted at an expense to the National Forest.

ABCO Wood Recycling, LLC is qualified to own and operate this grinder. The financial ability of ABCO to meet its match requirement is solid and can be demonstrated upon request.

Small Woody Biomass Utilization by ABCO Wood Recycling, LLC

on the Idaho Panhandle National Forest

Project Narrative

Statement of Need: The Idaho Panhandle National Forest (IPNF), like many of the western National Forests, contains an overabundance of small diameter evergreen trees that are unhealthy, stunted, and over crowded. Many of these forest stands are adjacent to human settlements. Fire suppression and deferred maintenance (the lack of substantial pre-commercial thinning) for the past eighty-five years have resulted in a situation of critical fire danger. In fact, the predictions are that massive forest fires on the scale of the 1910s in the area are past due and could occur any year. These hundreds of thousands of acres of overstocked stands need to be thinned to a spacing that will reduce ladder fuels, crown density and allow for vigorous tree growth. Invasive species also need to be replaced with disease tolerant native species. The problem is that many of the trees and much of the smaller material typically left in the woods or burned as “slash” do not have the commercial value to cover the costs of removal.

In 2005 a collaborative group was formed that is now called the Coeur d’Alene Forest Coalition. That collaborative group, consisting of timber industry leaders, environmental leaders, local government, educators and a wide cross-section of community members, has begun processing fuels reduction projects in a collaborative manner in order to prevent litigation. The first project is called the Blue Alder project that will result in 3000 acres of fuels reduction work. Three more projects are on the slate. The successes of this collaborative approach to project permitting will result in an availability of small woody biomass from the National Forest System that can be effectively utilized by local industries. There is, moreover, a need for an increase of capacity to convert the very small woody biomass into a usable product, as is proposed by this project.

ABCO already supplies processed woody material from its municipal waste recovery program to Potlatch for fuel for the 40 megawatt generation facility in Lewiston. Potlatch is willing to expand its procurement from ABCO. The co-gen feasibility study being conducted by the University of Idaho is also promoting the expansion of co-gen facilities in northern Idaho. Similarly, Avista Utilities’ 45 megawatt generating facility in Kettle Falls is well within the market circle for material from ABCO. Avista imports over 600,000 dry tons of sawmill wood waste residue from Canada to fuel its facility. There are other smaller users of these materials for agricultural and other farm products in the area that ABCO currently supplies. All of these uses could be expanded if the recovery capability were expanded.

This project will increase the capacity for the utilization of slash materials and other small woody biomass that are the result of the Forest Restoration and Fuels Reduction projects on the Idaho Panhandle National Forest. This will reduce the costs to the Idaho Panhandle National Forest for the burning of slash material in the woods. This project will result in the capture of waste materials that will be converted to an economic gain. This grinder will make it feasible to remove and utilize much of the waste materials that are now being piled and burned in the woods or left as a fuel hazard. The use of Stewardship Authorities, can be used to generate the funding, through goods for services, as well as brush disposal funds, clean-up funds and K-V funds to pay for the cost of removing the slash materials that have previously been left in the woods. This will be in concert with the Federal mandates to reduce the risks of wildfire and to use renewable resources for the generation of electricity. This will also provide jobs in the local community and a further tax base for municipalities and county government.

No other grinders are in operation in the woods on federal fuels reduction projects in the Idaho Panhandle National Forest. ABCO’s existing stationary grinder located at the Post Falls site is being used in much more profitable circumstances, such as the utilization of municipal waste. ABCO is committed to the health and productivity of the National Forest as a resource for its long-term business survival and also because of the related business, Shawn Montee Timber. The current systems at ABCO utilize municipal wood waste but cannot be situated or tooled for the removal and use of material from the National Forest System. ABCO is familiar with the operation of industrial grinders. Their experience in this field would optimize the introduction of a grinder that travels to the wood and into the woods to gather biomass.

The cost of the grinder and the rate of return that it can generate from Forest Service lands make it unlikely that ABCO would make the purchase and operate it without this grant. The grant will allow ABCO to take the risk and absorb some of the loss as it becomes familiar with the operation of a portable grinder in the woods

ABCO is committed to using this tool to add value to materials removed on National Forest fuels reduction or other timber projects. They will convert what would otherwise be left in the woods into a usable fuel product. The tool will be represented in bid preparations for all National Forest bids by ABCO. The availability of this grinder will require that the Idaho Panhandle National Forest make service contracts available for the “in-the-woods” grinder in many situations upon the Idaho Panhandle National Forest.

Project Coordinators and Partners: The Applicant, ABCO Wood Recycling, LLC will be the managing partner for this project through the services of Shawn Montee, Managing owner at the Post Falls ABCO business. Mr. Montee will be responsible for the identification of the grinder and the direction for any specific modifications that are needed for the intended uses. Mr. Montee will also utilize the services of ABCO management personnel in the allocation of the cash match for this project. Mr. Montee will also work closely with ABCO’s Financial Officer, to provide all of the necessary financial documentation to provide a thorough and professional reporting and financial administration for this grant. The expenses for these professional services are part of the cash match or in-kind contribution by the applicant.

The Coeur d’Alene Forest Coalition will provide ongoing project development services that directly benefit the purpose of this grant; i.e., to utilize more woody biomass from the National Forest. The Coalition has successfully moved forward on the project permitting for a 3,000 acre WUI fuels reduction project that will generate small woody biomass. The collaborative process will continue to produce similar projects that will continue to generate available small woody biomass that can be accessed by grinder or brought to the grinder that will be purchased through this grant. The Coalition will contribute $15,000 worth of in-kind match during the term of this grant.

The North Idaho Community Services Corporation will provide technical assistance for the grant administration and reporting under this project. ABCO will work with this non-profit in compiling and/or assembling the needed documentation for the grant and project reporting aspect of this grant. ABCO will also contract project monitoring services to insure that the terms of the grant are complied with and completed in a timely manner.

Goals and Objectives: The goals of this project are to assist in the reduction of fuel loads within the Idaho Panhandle National Forest by the removal and profitable utilization of the small woody biomass usually referred to as “slash” and very small diameter wood. As many as six full time jobs will be created by the acquisition and operation of the grinder. More jobs will be created on fuels reduction projects throughout the Idaho Panhandle National Forest as small woody materials are handled and made available to this grinder’s utilization. The majority of the woody material will be sold as fuel for electrical generation and as material for paper production. The over-arching goal is to take what is considered waste material and convert it into a useful product.

An objective of the project is to identify, acquire, set up and operate a grinder with the capability to utilize the very small woody biomass that will be removed from the Idaho Panhandle National Forest through fuels reduction and forest restoration projects. Other landowners, such as the State of Idaho and private timber owners, in the area will also be approached to utilize the grinder on their forest lands. The objective is to acquire the equipment and have it operational within three months of the grant receipt, if not sooner. The grinder can convert waste material into a useful product that can be sold to other users for the generation of electricity, paper products, landscaping and agricultural uses.

Another objective of the project is to collect data from the Idaho Panhandle National Forest on the current utilization of small woody biomass and assess the effectiveness of the grinder in an increase in the utilization of this material. A similar objective is to determine if the removal and utilization of this small woody biomass is profitable and how that profitability might be reached, maintained or improved.

Technical Approach & Work Plan (One Year):

1. The Project Manager has already identified the right piece of equipment for the proposed work. Modifications to the equipment may need to be made. The project manager will visit the manufacturing plant to assure equipment status and design. A purchase order and agreement will be entered into between ABCO Wood Recycling, LLC and the manufacturer. The equipment will be delivered and received. The equipment will be set up, likely at the ABCO business site for an initial test run. The equipment will be operated for a period of time to prove performance.

2. ABCO Wood Recycling, LLC, through the Project Manager, will provide the Idaho Panhandle National Forest with the technical capabilities of this equipment so that it might be incorporated in the project design and contract specification to match fuels reduction and forest restoration projects with the abilities of the grinder. For instance, slash piles can be located near to access roads to facilitate utilization by the grinder, or landings or staging areas can be designed with the grinder in mind.

3. The project administrator and monitor will collect data from the Idaho Panhandle National Forest on the current amount and utilization of slash material on, including how much is burned or left in the woods. The monitor will also collect data on how much material from the Idaho Panhandle National Forest is utilized by the grinder and the relative costs to acquire the material and the profit or loss derived from the processing and sale of the value added materials for various uses. This data will be assembled into a report that will be released (except for proprietary information) to the agencies and the economic development community within the Idaho Panhandle Region.

Impacts on National Forest Lands: Reference to the letter from Idaho Panhandle National Forest Supervisor, Ranotta McNair, should be made to show the support for this project’s goals and objectives. Currently much of the slash material from forest restoration and fuels reduction projects on the Idaho Panhandle National Forest are disposed of through prescribed fire and slash pile burning. Because of the cost of these services much of the material is actually left in the woods. This is an exacerbation of the fuel load within the public forests. The purchase and utilization of this equipment will mean that these costs incurred by the Idaho Panhandle National Forest will not only be eliminated but additional revenues may be produced to the Forest.

a) Condition class description: The majority of the 200,000 acres of Wildland Urban Interface within the Idaho Panhandle National Forest is within Condition Class Three. A substantial yet unspecified acreage within the remainder of the Idaho Panhandle National Forest is in either Condition Class Two or Condition Class Three.

b) What is currently being done with hazardous materials: An insignificant amount of the small woody biomass is being disposed of in the field as slash through prescribed fire. The vast majority of the small woody biomass is left in the woods to decay. This has created an untenable fuel load and fire danger upon the public forest lands.

c) What would be done with the removals if this grant is awarded: Larger scale existing users of this type of material, such as the Lewiston generating facility or Avista’s Kettle Falls generating facility, will utilize the material once it has been processed through the grinder. Businesses that can utilize this smaller woody biomass, such as fire wood suppliers, agricultural chip suppliers and other applications may develop. Public facilities could convert from expensive oil and electrical heat to biomass heat. New technologies, such as pyrolysis, bio-fuel systems and anaerobic digestion are emerging that will also utilize this material. The cost effectiveness of the removal of the material from the woods will be increased by the ability to grind and sell the material for profitable uses.

d) Anticipated outcomes: ABCO Wood Recycling, LLC will increase their consumption of woody biomass used for the production of electricity from ninety thousand (90,000) green tons per year to as much as two hundred thousand (200,000) green tons per year. If Avista Utilities were given a reliable supply of material from the Idaho Panhandle National Forest they would forego purchasing the three hundred and twenty-five thousand (325,000) dry tons of material per year that they obtain from Canadian sources. Similarly, smaller businesses that utilize small biomass material will find less risk in their business expansion when a reliable supply of material is nearby. More schools and businesses would be encouraged to convert from expensive oil or electrical furnaces to biomass heating facilities as these alternative fuels become more readily available; e.g. “the Fuels for Schools Program”. New businesses such as fire wood, character wood, and post and pole businesses will be encouraged because of the availability of a consistent supply of material. The result will be the creation of many new family wage jobs in the forest and in the processing facilities in Shoshone, Kootenai and other North Idaho Counties.

e) Tangible benefits: The reduction of fuel loads within the Idaho Panhandle National Forest and the prevention of catastrophic wildfire; the utilization of small woody biomass by the grinding process and electrical generation; the reduction of smoke from slash pile and prescribed fire; the increase in the productivity of the treated forest stands; improvement of wildlife habitat and groundwater retention; the increase of profitable businesses within the community and tax revenues to the local jurisdictions; jobs, and, the success of community collaboration within the Idaho Panhandle National Forest.

f) Intangible benefits: Community economic vitality.

g) Long-term benefits: The life expectancy of the grinder itself, if properly maintained is from 10 to 15 years. During this timeframe the equipment will be used to dispose of small woody biomass from the Idaho Panhandle National Forest.

h) Expansion capability: The utilization of several grinders is a distinct possibility as the collaborative process on the Idaho Panhandle National Forest continues to succeed in the permitting of fuels reduction and forest restoration projects. The amount of chipped material currently utilized by existing businesses is significant in the area. Unfortunately, most of that material is being imported into the region. The expansion potential for selling local woody material to local users is very high once this grinder comes on line.

Evaluation and Monitoring Plan: The design or modifications to the grinder will be required for the uses expected. This will be done at the direction of ABCO’s management. The purchase and delivery of the equipment will also be done at the direction of ABCO’s management. The set-up and operation of the equipment at the initial site will be done by ABCO’s management with interaction with the Idaho Panhandle National Forest regarding the location vis a’ vis fuels reduction project locations.

Contracts for the removal of small woody biomass are already part of several Forest Service projects upon the Idaho Panhandle National Forest. ABCO Wood Recycling, LLC will provide this grinder for its own removal contracts and to other contractors who have successfully bid on woody biomass removal contracts.

The tonnage from Idaho Panhandle National Forest lands processed through the grinder will be documented as well as the cost of receiving this material and the income derived from the sale of the processed material by ABCO. The tonnage of material will also be tracked from any different sites that are accessed by the grinder or from which materials are brought to the grinder. The cost of material acquisition from each federal site and the subsequent income from the materials from each site will be documented for further analysis. The overall increase of biomass removal from Forest Service lands will be determined by comparing current data with data gathered during the operation of the equipment. Monitoring will be done for the one year grant period by independent contract with the assistance of the North Idaho Community Services Corporation.

Budget for Project – One Year

Project Budget	Unit Cost	# of units	Non-Federal Portion		Federal Portion	Total
a. Personnel
Project Manager – Shawn Montee	$15,000		$15,000			$15,000
Set Up Crew	$7,500		$7,500			$7,500
b. Fringe Benefits	$3,375	1	$3,375			$3,375
c. Travel & Mileage	$0.40/mile	2500	$1,000			$1,000
d. Equipment	$450,000.00	1	$200,000.	$250,000		$450,000.
f. Contracts
Admin, Reports & Project Monitoring	$45 per hour	435	$19,575			$19,575
g. In-Kind (non-cash)			$20,000			$20,000

Total			$266,450	$250,000		$516,450

Budget Justification

1. The Project Manager will work with the manufacturer to identify the right piece of equipment for the proposed work. Modifications to the equipment may need to be made. The project manager will visit the manufacturing plant to assure equipment status and design. A purchase order and agreement will be entered into between ABCO Wood Recycling, LLC and the manufacturer. The equipment will be delivered and received. The equipment will be set up, likely at ABCO’s Post Falls, Idaho site for an initial test run. The equipment will be operated for a period of time to prove performance.

2. The Set up crew will follow the project managers’ directions for the siting and set up of the equipment and the initial test operation of the equipment.

3. Fringe benefits will be provided to the project manager and set up crew.

4. Travel to the manufacturer to assure design specifics and to ensure timely delivery will be done by the project manager.

5. The project administrator and monitor will collect data from the Idaho Panhandle National Forest on the current amount and utilization of slash material on the Idaho Panhandle National Forest, including how much is burned or left in the woods. The monitor will also collect data on how much material from the Idaho Panhandle National Forest is utilized by the grinder and the relative costs to acquire the material and the profit or loss derived from the processing and sale of the value added materials for various uses. This data will be assembled into a meaningful report and issued (except for proprietary information) to the agencies, Coalition and economic development community within the Idaho Panhandle region.

6. The project administrator will work with the North Idaho Community Services Corporation on the financial reporting and grant administration for the project. The non-profit assistance is part of the In-Kind match for the project.

7. ABCO Wood Recycling, LLC, through the Project Manager, will provide the Idaho Panhandle National Forest with the technical capabilities of this equipment so that it might be incorporated in the project design and contract specification to match fuels reduction and forest restoration projects with the abilities of the grinder The Coalition will continue to work with the Forest Service on the design and permitting of fuels reduction and forest restoration projects within the Idaho Panhandle National Forest. These projects will produce small woody biomass to be utilized by the processing equipment purchased under this grant. The work of the Coalition staff, Board and Committees will be part of the In-Kind match for the project.

Appendix C – Key Personnel Qualifications

Shawn Montee is the managing owner of ABCO Wood Recycling, LLC. He is responsible for oversight of the facility in Post Falls, Idaho Washington. Mr. Montee is responsible for the operation of the plant and assuring that the supply of raw material keeps the plant operating. Mr. Montee has been involved in management, contracting, logging, in the local community for over twenty years. Mr. Montee has worked closely with Federal State and Local agencies. ABCO is widely recognized as a quality performance based company.

The Administration, Reports and Project Monitoring will be contracted by ABCO Wood Recycling, LLC to a qualified individual.

Jim Deffenbaugh, Finance manager for the North Idaho Community Services Corporation, has spent a career in public grant administration for a variety of non-profit organizations. He will provide assistance to the grant administration and financial reporting. Contact at 208-.

Members of the Coeur d’Alene Forest Coalition have and will continue to play an integral role in the collaborative design and permitting of fuels reduction and forest restoration projects upon the Idaho Panhandle National Forest, and as such, will provide much of the in-kind match for this project.