Project Narrative

1. Statement of Need: The Colville National Forest (CNF) within Stevens County, 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 1920s 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. 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.

Innovative technologies have begun to utilize more of this small woody material but the unreliability of an adequate “supply” has discouraged the capitalization of new or expanding businesses. This project will address the inextricable combination of these two key factors. New technologies alone will not prosper without an adequate and reliable supply. Similarly, the overabundance of woody biomass will not be reduced without the collaborative project permitting that the Northeast Washington Forestry Coalition (the NEW Forestry Coalition) has already proven to be the successful model on public lands. The “need”, therefore, is for both the cost effective removal/utilization systems and for the collaborative permitting processes. This two-pronged approach can reduce the business risk by expanding the supply of material. This will then encourage the further local capitalization of technologies that can remove and utilize more of the material. New technologies without concurrent project design and permitting successes will be to no avail in creating fuels reduction projects and economic stability for the communities.

The existing substantial users of woody biomass, such as AVISTA and Vaagen Bros. Lumber Inc., are the most likely businesses to expand the amount of material used. Their business needs that can increase their ability to utilize more material needs to be evaluated. The potential for the creation of new businesses, such as portable chipping and electrical generation, tub grinding, slash removal, farm chips, fire wood, etc. that utilize these materials also needs to be analyzed and promoted within Stevens County. A survey of individuals and companies to determine their confidence and ability to expand the utilization of woody biomass, if the “cost to return shortfall” can be resolved, needs to be undertaken. This will include the identification of users that may have shut down business within the recent past because of a limited supply of biomass material. Similarly, new technological uses for the material, such as pyrolysis, bio-fuel systems and anaerobic digestion systems need to be identified, analyzed in our location and presented to the business community in Stevens County.

The first part of this project will identify the business obstacles that have and are preventing the further utilization of this woody biomass material. The second step is to propose solutions to these problems, be they technological innovation, subsidy re-investment, or project permitting and contracting. The third need is for the continued collaboration between the NEW Forestry Coalition and the CNF in order to gain successful permitting for fuels reduction projects within the CNF. The use of “stewardship contracts” as the means to increase the financial feasibility of the removal of small material and to reduce the management costs of the removal of this material will be continued. The ongoing collaborative working relationship that has been solidified between the CNF and the NEW Forestry Coalition in a recent Memorandum of Understanding is the most likely method to obtain access to the woody biomass for business utilization.

2. Project Coordinators and Partners: The Coordinators are Russ Vaagen and Jim Doran.

The project partners and co-applicants for this project are Vaagen Bros. Lumber, Inc. and the NEW Forestry Coalition. (See contact points on Cover Page). The Washington State Extension Office, The Rural Technology Initiative and The Lands Council are project partners. Project participants and cooperators are: The Institute for Washington’s Future; the Northwest Ecosystem Alliance, the Stevens County Conservation District the Washington State Department of Natural Resources, the Upper Columbia RC&D, and the Colville National Forest.

3. Goals and Objectives:

A. Goal: To identify the financial, technological or permitting obstacles that currently prevent the removal of more small woody biomass material from the Colville National Forest.

Objectives:

1. To identify and survey the existing business that use a substantial amount of small woody biomass and determine what is needed for them to increase their utilization of this material.

2. To identify and survey former and potential new businesses that could use a substantial amount of biomass to determine their business needs that prevent the utilization of biomass.

3. To identify and promote new technologies that could be introduced into the business community of Stevens County for the removal and utilization of these small woody materials.

4. To draft business plans with any new or expanding businesses that could utilize a substantial amount of these materials and assist these entities in the acquisition of funding, engineering, or other services, for the creation or expansion of such businesses.

B. Goal: To continue the collaborative permitting process between the Forest Service and the Northeast Washington Forestry Coalition. This will continue to focus on the design and permitting of stewardship projects that address the fuel loads and fire dangers in the WUI zone. This includes the creation of detailed Community Wildfire Protection Plans within each WUI project which will, in turn, enhance the National Fire Plan funding applications for “defensible space” thinning on private lands.

Objectives:

1. To create a working relationship between the CNF and the Coalition so that stewardship contracts are permitted and implemented at a landscape scale, (10,000 to 20,000 acres).

2. To work with the CNF in the collaborative process so that stewardship projects are designed and implemented in a way that the value of the commercial material removed covers the cost of the service work including the removal of the small woody biomass.

3. To provide the multi-party monitoring of projects as they are implemented.

4. To conduct public outreach at each community level and educational forums that will create public support for Forest Service fuels reduction projects.

4. Technical Approach and Work Plan: There are three legs to this project.

a) The identification and survey of existing substantial users of the small woody biomass and the creation of business plans for the expansion of those businesses. This is parallel with the identification, survey and business planning for potential new users, including the introduction of emerging technologies into those business plans. This will be the responsibility of the NEW Forestry Coalition with a close association with Russ Vaagen and with the engagement of the appropriate contractors as needed.

b) The determination of the practical means to access an adequate and reliable supply of this material that will justify the start-up or expansion of businesses that can utilize a substantial amount of this material. This includes an analysis of the “cost and return shortfall” in the physical removal of the material and where an injection of funds, credits or subsidy will most effectively increase the rate of removal. This will be the responsibility of Jim Doran who will also engage the economic development community and the appropriate subcontractors as needed.

c) The supply “solution phase” of the project includes the innovations in stewardship contracting that may provide the capital to cover the costs of the removal of the biomass. Collaboration between the Forest Service and the NEW Forestry Coalition will continue under this leg of the project as an essential means to obtain an adequate and reliable supply of material for business ventures to access. This will be the responsibility of the NEW Forestry Coalition.

d) Project administration, bookkeeping and reporting will be contracted, potentially to the Institute for Washington’s Future.

Outcomes: The most significant outcome of this project will be the removal of substantially more biomass from the Colville National Forest and the expansion of the utilization of this material by existing or new businesses within Stevens County, Washington.

The specific direct outcomes of this project are:

1) The identification of existing users and potential new users of this material and what is needed for them to expand or start-up these businesses.

2) The identification and promotion of potential new technological uses for this material and a cost analysis of these uses.

3) The creation of business plans with identified businesses that can substantially expand the utilization of small biomass.

4) The refinement of stewardship contracting so that revenues from Forest Service Stewardship Projects will cover the costs of the removal of the small woody biomass from the CNF of Stevens County.

5) The creation of jobs with family wages by the substantial increase in the removal and utilization of woody biomass from within the CNF.

The specific indirect outcomes from this project are:

1) The continuation of community collaboration between the Colville National Forest and the NEW Forestry Coalition.

2) The increase in the permitting of Forest Service fuels reduction projects within Stevens County and the Colville National Forest.

3) The creation of detailed Community Wildfire Protection Plans in communities adjacent to the Forest Service WUI projects that will enhance those communities’ applications for National Fire Plan funding for the defensible space thinning of private lands.

4) Broad community support for fuels reduction activities upon the Colville National Forest.

5) The reduction of fuel loads and forest disease on the Colville National Forest and an increase in forest productivity and overall ecological health and ecosystem services within the National Forest.

5. Impact on National Forest Lands:

a) Condition class description: The majority of the 200,000 acres of Wildland Urban Interface within the Colville National Forest is within Condition Class Three. A substantial yet unspecified acreage within the remainder of the Colville 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. Some of the local material is being removed by logging contractors who can dispose of it at one of the two area electrical generation facilities. 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 and private forest lands.

c) What would be done with the removals if this grant is awarded: Larger scale existing users of this material, such as AVISTA and Vaagen Bros. Lumber, Inc., as well as smaller businesses such as tub grinders, chippers and removal companies, fire wood, etc. will increase their capacity to utilize the small woody biomass based upon the feasibility study and business plans produced through this project. New technologies, such as pyrolysis, bio-fuel systems and anaerobic digestion will be identified, analyzed and promoted within the area in order to encourage the utilization of this material for those purposes. The cost effectiveness of the removal of the material from the woods will be increased by the utilization of community collaboration and stewardship projects designed to provide the funding for the removal of the biomass from the federal forests.

d) Anticipated outcomes: Vaagen Bros. Lumber, Inc. 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) tons per year if a feasibility study and business plan indicates that an adequate and reliable supply of material will become available. Additionally, if the AVISTA Company were given a reliable supply of material from the CNF they would forego purchasing the three hundred and twenty-five thousand (325,000) green 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. Many new businesses, such as portable chippers and generators, fire wood, character wood, and post and pole businesses will be encouraged because of the availability of a consistent supply of material. The collaborative process, already solidified through the NEW Forestry Coalition, has and will continue to allow for the permitting of Forest Service fuels reduction projects without appeals. This collaborative process will reduce the overall management costs to the CNF, as well as increase the efficiency of the permitting process itself and the financial stability of each Forest Service project. The result will be the creation of many new family wage jobs in the forest and in the processing facilities in Stevens County.

e) Tangible Benefits: The reduction of fuel loads within the Colville National Forest and the prevention of catastrophic wildfire; 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 Colville National Forest.

f) Intangible Benefits: A community understanding of fuel load issues and appropriate thinning of the National Forests; a practical explanation and application of stewardship contracting within the Colville National Forest; and a sense of purpose and empowerment of both the Colville National Forest staff and the NEW Forestry Coalition for future projects; a sustainable economic base for future generations living in Stevens County.

The expectation of this project is to create a viable business community ready, willing and able to utilize the substantial increase of the available small woody biomass that will be brought from the Colville National Forest because of the successful collaborative project permitting done between the NEW Forestry Coalition and the Colville National Forest.

Evaluation and Monitoring

The evaluation strategy will gather and analyze qualitative and quantitative data. This project will have three basic sources of information: project surveys, regularly reported economic data, and the records kept by project staff, project participants, and the control group participants.

There are six main questions before this project:

1. Does this project generate business capacity for the removal of a substantially larger amount of the woody biomass from the Colville National Forest than what is now occurring?

2. Does this project generate the business capacity to utilize substantially more of the biomass removed from the Colville National Forest than is now occurring?

3. Have more family wage jobs in the woods and in the processing facilities been created within the communities of Stevens County because of this project?

4. Has the “collaborative” permitting process resulted in more Forest Service fuels reduction projects being permitted and implemented during this project period?

5. Has stewardship contracting provided the financial infusion into fuels reduction projects that allows for the cost effective removal of biomass from the CNF?

6. Have more communities been able to produce detailed Community Wildfire Protection Plans because of this project?

These questions will be answered with direct before and after data on each point.

Budget Justification

A. Personnel. The Director of the Coalition will spend three-quarters time on this project. Annual salary is $60,000, three-quarters time is $45,000. Of this $5,000 will be covered from individual donations, leaving a federal request of $40,000 per year. This budget item will remain constant for each of the three years of the project duration for a total project cost of $135,000. Russ Vaagen, as a project Partner will contribute $15,000 annually of his time to this project, for a total project value of $30,000.

B. Fringe Benefits. Fringe Benefits are 30% of personnel costs. 30% of $45,000 is $13,500. Of this $2,500 will be covered from individual donations. This budget item will remain constant for each of the three years of the project duration for a total project cost of $40,500.

C. Travel. Auto is 600 miles a month at $0.40 a mile equals $240 per month X 12 = $2,880. The Director will spend fifteen overnights on the road for this project per year at $125 per diem, or $1,875. The total annual travel budget is $4,755. Of this $1,500 will come from individual donations. This budget item will remain constant for each of the three years of the project duration for a total project cost of $14,265.

D. Equipment - $0.00

E. Supplies are $800 per year. This budget item will remain constant for each of the three years of the project duration for a total project cost of $2,400.

F. Contracts. The Colville Coalition will expect to contract with a professional bookkeeper/accountant for administrative services. The market charges $50 per hour. Annual administrative hours for the project will be 100 hours X $50 = $5,000. For the three year project duration the total project cost of $15,000.

G. The Coalition will contract through an open bid process with qualified professionals, such as Don Hopps, for business planning, economic analysis, and oversight of that segment of the project services. That fee is figured at $65 per hour. This contractor will provide 400 hours of service per year which equals $26,000. This budget item will remain constant for each of the three years of the project duration for a total project cost of $78.000.

H. The Outreach and Education for these ongoing fuels reduction projects will be performed by the WSU Extension Office and their cooperators. The annual value of this is $10,000 and will be contributed by WSU Extension each year for a total project value of $30,000.

I. The Multi-Party Monitoring for the fuels reduction projects will be coordinated by The Lands Council at an annual contributed value of $8,000 and a total project value of $24,000.

J. The creation of the detailed layers of the Community Wildfire Protection Plans for each Forest Service fuels reduction WUI project will be contracted to qualified companies or individuals. The annual contributed value is $30,000 for a total project value of $90,000.

K. Volunteer hours will equal 1,000 from board members and participating entrepreneurs. They are valued at $20 per hour, for $20,000 for each of the three years of the project for a total value of $60,000.

L. Office rent for the Director is $500 a month, three-quarters of its use is being devoted to this project. $500 x 12 months x .75 is $4,500 for each of the three years of the project for a total project value of $13,500.

M. Communications average $150 per month, three-quarters of which will be for this project. $150 x 12 months x .75 is $1,350 for each of the three years of this project for a total project value of $4050.

N. This project will require an average of two meeting per month, room space valued at $35 per hour. $35 x 24 is $840 for each of the three years of this project for a total project value of $2520.

O. Coalition Indirect is 10% of all direct costs is $9,649 per year for each of the project three years duration for a total project cost of $28,900.

Annual Budget for Each of Three Years

Project Budget	Unit Cost	# of units	Non-Federal Portion	Federal Portion	Total
a. Personnel (director)	$60,000 per year	0.75 FTE	$5,000	$40,000	$45,000
Russ Vaagen - project partner	$15,000 per year		$15,000		$15,000
b. Fringe Benefits			$2,500	$11,000	$13,500
c. Travel & Mileage	$0.40/mile & $100 per diem	636 per month	$1,500	$3,255	$4,755
d. Equipment					$0
e. Supplies			$400	$400	$800
f. Contracts
Admin. & Reports	$50 per hour	100		$5,000	$5,000
Business Development	$65 per hour	400	$5,000	$21,000	$26,000
Outreach & Ed.			$10,000		$10,000
Project Monitoring			$8,000		$8,000
CWPPs			$30,000		$30,000
g. Other			$31,070		$31,070
Sub-Total			$108,470	$80,655	$189,125
h. Indirect			$10,000
Total			$118,470	$80,655	$199,125

* NOTE: This is a one-year budget for a three-year project; therefore simply multiply each budget or budget column times three (one for each project year).