Wood & Biomass Utilization Discussion, Alpine County Context, Supply, Markets & Processing Alternatives

ALPINE BIOMASS COMMITTEE MTG TURTLE ROCK PARK March 7, 2017 (minor edits July 23, 2017)

Larry Swan, U.S. Forest Service R05 State & Private Forestry, Vallejo, CA

Slide - 1

Outline Definitions and Terminology Status of Processing Infrastructure for

Forest Trees and Biomass Alpine County Potentially Accessible

Supply Markets and Processing Alternatives Questions and Discussion

Slide - 2

Comment [07/24/17#1]: Presentation Notes: Presentation Outline Definitions and Terminology – Introduce or refresh knowledge about some general terminology, and some that are particular important to understanding what is going on in CA. Status of Processing Infrastructure for Forest Trees & Biomass – Emphasizing forest trees and biomass, changes in primary processing infrastructure at state level, and regional perspective about primary processing infrastructure. Alpine County Potentially Accessible Supply – Review criteria used to approximate what might log and biomass supply might be legally, socially, economically, and technically possible, and characterize volume and nature of potential supply. Markets and Processing Alternatives – Brief overview of some tried-and-true, and some of the most talked about markets and processing alternatives.. Conclusion – Observations, forest biomass supply, traditional small business wood products markets, biomass energy, and local creativity.

Useful Definitions and Terminology • Biomass • Forest Products Infrastructure • Primary and Secondary

Processing • California-Specific Terms • Forest Metrics and Nomenclature

Slide - 3

Comment [07/24/17#2]: Presentation Notes: Useful Definitions and Explanations Biomass - The term biomass refers to structural and non-structural carbohydrates and other compounds produced through photosynthesis consisting of plant materials and agricultural, industrial, and municipal wastes and residues. The components of biomass include cellulose, hemicelluloses, lignin, lipids, proteins, simple sugars, starches, water, hydrocarbons, ash and other compounds. Forest Biomass – Byproducts or residuals from forest management and wood processing. Forest biomass directly from the woods is usually either ground or chipped (i.e. cut) into smaller particles. Processing waste includes hog fuel (includes bark), chips, sawdust and shavings. Ag Biomass – For the purpose of this presentation, agricultural biomass includes prunings, orchard removals, and food processing residuals, such as shells, pits and hulls. Manure, corn stover, pomace (i.e. seeds, stems and skins left over from making wine) and other “wet” material are not usually included in this definition for conventional biomass energy plants in California (i.e. does not include biodigesters). Urban Biomass – Urban biomass includes green waste (i.e. “curbside pick-up” - tends to be higher moisture content), construction and demolition debris, pruning and tree removals, and pallets/dunnage. Most urban biomass requires additional sorting to remove contaminants, such as painted wood, plastic, treated wood etc. Forest Products Infrastructure – Includes not only physical facilities and equipment, but also the knowledge and skills to provide services for harvesting, transporting, processing and marketing logs, residuals, and various wood-based finished products, including management, skilled labor, insurance, banking and investment, research and extension, industry associations, and equipment/supplies vendors,. Primary vs Secondary Processing - 1° processing refers to conversion of logs to lumber, chips, posts/poles, mulch, shavings, pellets, particle board ...

Current Status of California Wood Products Primary Processing Industry

Slide - 4

Comment [07/24/17#3]: Presentation Notes: Photo Credits Photo 1, Log Deck, Redwood Empire, Cloverdale (L. Swan, USFS, 7/2016) Photo 2, Blue Stain Veneer, Roseburg Forest Products, Weed (L. Swan, USFS, 8/2016)

California Forest Products Industry Infrastructure Map

SlideS-lide 5

Comment [07/24/17#4]: Presentation Notes: California Industry Infrastructure Map Larger map is updated quarterly. There is also an interactive electronic version which includes biomass power and primary wood products processing plants, utility company service areas and other layers. Background data set is maintained in cooperative effort between UC Berkeley Biomass Center and USFS, S&PF. Hardcopy map version is maintained by USFS. Link to UC Berkeley Interactive Map: http://ucanr.edu/sites/WoodyBiomass/Technical_Assistance/California_Biomass_Power_Plants/

California Wood Products Primary Processing Infrastructure (Feb 2017)

Geographic Area

Sawmills

Veneer Plants

Post &

Pole

Whole Log Shavings

Mill

Total

Central & North Coast 11 0 0 0 11 Northern Calif. 9 2 2 0 13 Central & Southern Sierras 4 0 0 1 5 Southern CA 1 0 0 0 1

Total 25 2 2 1 30

Slide - 6

Comment [07/24/17#5]: Presentation Notes: 2016 California Wood Products Primary Processing Infrastructure Additional Observations for Central and Southern Sierras – Processing capacity is not ideally located for current tree mortality volume in Central and Southern Sierra Nevada. Central and Southern Sierra sawmills include SPI Lincoln (large and small log mills in one complex), SPI Sonora Standard (large log mill), SPI Chinese Camp (small log mill), and Sierra Forest Products (Terra Bella) (large and small log mill) (actual total primary breakdowns = 6). Additional Observations for Southern California – The only small industrial sawmill remaining in Southern California is a Baker band saw set-up at Priority Pallets, Beaumont. The mill was acquired with assistance from Riverside County, using a grant from the USFS, and was commissioned in 2010.

Alpine County Potentially Accessible Timber Supply Acreage

Slide - 7

Comment [07/24/17#6]: Presentation Notes: Potentially Accessible Timber Supply Acreage, Within Alpine County “Accessible” – Refers to what might be available after applying the seven criteria below as well as cultural, social, economic, and technical considerations: Seven Criteria - 1) Within 1/4 mile of roads passable to passenger vehicles, high-clearance vehicles, or trucks 2) More than 50' from temporary waterways or water bodies 3) More than 100' from perennial waterways or water bodies 4) More than 300' from LCT waterways or water bodies 5) Within conifer forest or mixed conifer forest 6) Slope less than or equal to 35% 7) Not within designated Wilderness (226,000 ac within Alpine County) or RNAs (208 ac)

Alpine County Potentially Accessible Timber Acreage, Within and Outside of Carson RD

Slide - 8

Comment [07/24/17#7]: Presentation Notes: Alpine County, Estimate of Potentially Accessible Timber Acreage, Within and Outside of Carson RD, Humboldt-Toiyabe NF (acres)

Owner/ Alpine Co. w/i Alpine Co. w/o TotalManager Carson RD Carson RD

HT NF 14,628 0 14,628

Eldorado & Stanislaus NFs

0 3,634 3,634

Private 1,376 1,015 2,391

CA Dept of Fish & Wildlife

1,062 73 1,135

BLM 115 521 636

180 0 180 CA State Lands Commission

58 0 58

TOTAL 17,420 5,243 22,663

Volume Discussion Carson RD manages about 84% of potentially accessible forested acres in Alpine County, using the criteria described (14,628 of 17,420 ac).

- For Carson RD alone, estimated 77.1 MMBF sawtimber and 366,000 GT of biomass. On a 20 year treatment cycle, this would yield about 4 MMBF/yr in sawtimber and 18,300 GT/yr biomass (enough for about 1 MW).

CA Dept. ofParks & Rec.

Timber Availability from National Forests Adjacent to Alpine County

Slide - 9

Comment [07/24/17#8]: Presentation Notes: Timber Availability from National Forests Adjacent to Alpine County LTBMU (Rita Mustatia, Forest Silviculturist) - Forest expects to sell about 3.2 MMBF/yr over next 5 yrs, about 50/50 North Shore vs South Shore (nothing on East or West Shores). Avg about 800 ac/yr. - Removing about 4 MBF/ac of sawlogs and 25 GT/ac biomass (about 20,000 GT/yr) - Avg tree is 120 – 140 yrs old, 14-16” DBH, about 50’ merch log, 45% WF, 30% JP, 15% LPP and 10% Other (e.g. IC and RF). - Starting to have some competition for sawlogs when part of a whole-log tree harvest prescription vs cut-to-length (CTL), but still very small percent - About 5,400 ac total handpiled by USFS within the LTBMU at the end of 2016 and expect another 1,400 ac by end of 2017 = 6,800 ac. Assume 100 handpiles/ac @ 0.20 GT/pile (4-5’ tall X 10’ diam), equals about 20 GT/ac (used handpile wt results from U of WA study). This means 680,000 piles to burn, which is about 136,000 GT. Also have about 100 ac of machine piles. Eldorado NF (Bob Broderick, TMO, Amador RD) - Closest project to Alpine County is Foster Fuel Reduction, located about 25 mi from Alpine County line - There were a couple of projects a number of years ago in the Blue Lakes area, which is closer to Alpine County - lots of LPP and red fir. - Tree mortality has not been a big issue on this part of the Eldorado NF, but is present. On USFS ground will see 5 ac patches of mortality, about 50% WF, and on SPI ground, which is lower (1,500 – 3,000 ft), might see 10 ac patches of mortality Stanislaus NF (Dave Horak, TMO) - Closest major proposed project is Hemlock Project, part of the Cornerstone Collaborative effort. Multiple planned sales, with several already awarded. About 10 MMBF total. Species are RF (80%), WF (15%) and 5% Other (JP, LPP). - Dave thinks the forest within and adjacent to Alpine County is in pretty good shape – normal expected level of tree mortality in alpine area. Elevated tree mortality observed where have PP between about 5,000 – 5,500 ft elevation. Along Hwy 4 have more LPP, alpine fir, red fir.

Alpine County and CAL FIRE- Designated High Hazard Zones (HHZ)

Slide - 10

Comment [07/24/17#9]: Presentation Notes: Alpine County and HHZs *Categories might need to be re-examined. USFS, Carson RD – Appears to be about 1,748 ac USFS, Outside Carson RD – Appears to be about 2,293 ac Prvt Land, Alpine County – Appears to be about 430 ac Other Jurisdictions (BLM, CDFW, CDPR, CA St Lands Commission) – Appears to be less than 200 ac

Industry Infrastructure, 50-Mile Radius of Markleeville

Slide - 11

Comment [07/24/17#10]: Presentation Notes: Industry Infrastructure Map Close-Up, 50-Mile Radius of Markleeville Sawmills – No industrial sawmills within 50 air miles. Sonora SPI complex is about 90 mi one-way from Markleeville via Hwy 4, which would make it difficult for a logging truck to make 2 RT/day within 10 hrs. Biomass Power Plants – No industrial biomass power plants remain open within 50 air mile radius. Have 1 MW moth-balled plant in CC at Northern NV Correctional Cntr (used about 14,000 GT(?) at its peak). Some BioMAT-scale plants proposed or in development, including Cabin Creek (near Truckee) and Wilseyville (near Volcano). The closest industrial biomass power plants are the SPI Standard Mill (Standard) and Pacific Ultrapower (Chinese Station), both adjacent or near Sonora. Pacific Ultrapower has a new, BioRAM 1, 5-year contract that requires it to use at least 80% Tier 1 or 2 HHZ material within the next year or two. Mulch and Soil Amendment Industry – The closest major mulch producer is the SPI Keystone bark plant in Jamestown. It makes a variety of colored bark and chip products. Firewood Industry –The area encompassed by the 50-mi radius would appear to use 1000’s of cords of firewood per year, but only one major producer was mentioned in the report by Jeremy Drew, Resource Concepts, Inc. (i.e. manufacture and/or sell over 1,000 cords/yr). Note: Unclear about wood burning air emissions issues and standards for this area.

Alpine County and Surrounding Region, Small Sawmills and Markets

Slide - 12

Comment [07/24/17#11]: Presentation Notes: Alpine County and Surrounding Region, Sawmills and Markets Current Infrastructure – According to the Wood-Mizer CA and NV Sales Rep, there are perhaps 60 Wood-Mizer band mills within 50 miles of Markleeville, with perhaps 3-4 doing more than 50 MBF/yr (300 hrs operating time/yr). This area includes all of Lk Tahoe Basin over to Truckee, west slope of Sierras between Placerville and Sonora, and Carson City and Minden/Gardnerville. Normal ratio of Wood-Mizers to other portable mills, including swing-blades, slabbers and custom-builds, is about 2:1, so about 120 small-scale sawing operations total. Most small or portable mills are used only sporadically by contractors and businesses that need a sawmill or large resaw to cut timbers and cants, and the remainder are hobbyists. Resource Impact Example, 1 Band Mill, Experienced Operator and Good Logs – Assume 5 MBF log scale consumption /day, 208 production days, 1 shift: 208 production days/yr * 5 MBF/day = 1,000 MBF/yr (1.0 MMBF). Assume 15 MBF/ac tree mortality for area with heavy tree mortality (i.e. greater than 70-80% dead): 1,000 MBF/yr * 1 ac/15 MBF = 67 ac/yr. California Small Sawmill Numbers - According to Wood-Mizer, most small sawmills in CA are on the coast, from Santa Cruz north to Eureka. There are probably 800 – 1,000 Wood-Mizers in CA. Assuming a 2:1 ratio (all types), total portable mills might be 1,500 – 2,000 statewide. California might be in the top 3-5 states in terms of the number of small, portable mills, with NY, GA and TN ahead.

Biomass Power Plants Slide - 13

Comment [07/24/17#12]: Presentation Notes: Biomass Power Plants Current Status – There is a 1 MW moth-balled plant in CC at Northern NV Correctional Cntr (used about 14,000 GT(?) at its peak). Some BioMAT-scale plants proposed or in development, including Cabin Creek (near Truckee, proposed 2 MW?), and Wilseyville (near Volcano, proposed 2-3 MW). Resource Impact – One MW uses about 8,000 BDT. About 12.5 BDT/ac of biomass is removed for a thin-from-below prescription in an average mixed conifer (MC) forest. This means each MW could potentially help treat about 640 ac. For comparison, the Pacific Ultrapower Plant in Jamestown (near Sonora) is about 22 MW and uses about 176,000 BDT/yr (equivalent to a sawmill that uses 70,400 MBF/yr of logs). Its new BiomassRAM 1, 5-year contract requires the plant to use about 80% fuel from Tier1 and Tier 2 HHZs by 2019, which is about 140,800 BDT and could help treat around 11,264 ac (assumes about 25 GT or 12.4 BDT slash and tops removed after thin-from-below prescription).

y Regional Mulch & Soil Amendment Industr

Slide - 14

Comment [07/24/17#13]: Presentation Notes: Alpine County Area, Mulch and Soil Amendment Industry Current Status – Forest biomass is attractive for the mulch and soil industry because its clean, and can be converted into many higher value products where even minor contamination with plastics or metal would be a serious issue (e.g. commercial bagged mulch, playground mulch, biofilters, highway ROW mulch, etc.). The mulch/soil amendment industry in the Carson City/Carson Valley area is limited though. Jeremy Drew, Resource Concepts, Inc., mentioned Genoa Lane Trees & Landscape (Minden), which has used some forest biomass and was developing a small biochar kiln to produce char for their compost and potting soil mixes. Jeremy also mentioned Full Circle Compost (Gardnerville), who is working with Filtrexx, who specializes in mulch blankets and wattles for erosion and stormwater management. Trends – There appears to be more appetite for clean, forest material to make higher-value specialized mulch and soil amendments, such as playground mulch, play structure padding, trail surfacing, highway erosion control mulch, and other products. Many producers, including sawmills, are also coloring their products. One producer said he makes about 20 different soil amendment and mulch products. Niche Markets –One example of a niche market for a mulch-type of products is “biofilters”, which are primarily used in California to reduce odor. Specs are tight. Customers are mainly wastewater treatment facilities and composting facilities that utilize biosolids. There are artificial substitutes, but these are more costly. However, they do not have to be replaced as often. It is unknown what is used to reduce odors at waste water pumping and treating plants near Alpine County. Biofilters can be quite large. One example is at the Inland Empire Regional Composting Authority, Rancho Cucamonga, which might be the largest biofilter on the West Coast (about 32,700 cu yds or 8,000 GT). Biofilters can be small though, consisting of simply small heaps of moist wood chips attached to a system of plastic pipes that draws air down through composting piles and expel it through a series of outlets into small piles of moistened wood chips. An example of a niche soil amendment market is the use of vermiculture to make compost. This products ...

Regional Firewood Market Slide - 15

Comment [07/24/17#14]: Presentation Notes: Alpine County Firewood Market Firewood – Firewood absorbs thousands of cords of thinned forest biomass in the Lake Tahoe Basin and Carson City – Minden/Gardnerville area. Jeremy Drew, Resource Concepts Inc., mentioned Owens Wood Products (Reno), who also apparently delivers in the Carson City area. He thought they might do a “couple thousand cords per year”. Usually there’s a break at close to 1,000 cords/yr between smaller-scale and major firewood producers. For comparison, 1 cord is about 0.4 MBF or 400 bd ft, and about 1.5 GT (dry, seasoned softwood). 1,000 cords = 400 MBF or 1,500 dry, seasoned tons (at least 2.2 GT/cord or 2,200 GT from the woods). Resource Impact - Assuming 25 GT/ac thin-from-below prescription, then 1,000 cords would treat about 88 ac in a moderately-overstocked mixed conifer forest. Firewood Imports - Firewood is imported into California from out-of-state and foreign countries. Based on an incomplete records from State of California Agriculture Inspection Stations and U.S. Customs data for 2011 - 2013, a minimum of 8,000 cords were imported into the state, which is about 8,000 green tons (does not include "fatwood" kindling, made from resin-thick old stumps).

What Utilization Options are Plausible in Alpine County and Surrounding Area That are Not

Already Being Done?

• Post & Poles? • Animal Bedding? • Densified Wood Products (fuel

pellets, bricks, logs and briquettes)? SlideSl-ide 16

Comment [07/24/17#15]: Presentation Notes: What More Could Be Done? Post & Poles – Currently 2 manufacturers in CA, SPI Anderson Pole Plant (focuses on utility grade pole) and Alta California Roundwood (Anderson). CA probably has the largest post/pole mkt. in Western U.S. because of trellising systems used for crops in the Central Valley. Markets in S CA for roundwood product tend to be outdoor structures (e.g. gazebos), a small amt. of furniture, and interior and exterior accents. It is challenging to manufacture a competitive post/pole product because of insufficient supply of the appropriate size, species and log form (i.e. minimal taper). Animal Bedding, Whole Log Shavings Plant - The only whole log shavings plant in CA is California Wood Shavings (American Wood Fiber), Jamestown, CA. There are two whole log shavings manufacturers in Oregon, one in Redmond and the other co-located at the Bear Mountain Forest Products pellet plant in Cascade Locks. Historically, the animal bedding market on the West Coast has been served by sawmill residues (shavings), however, as the number of mills decreased, demand for shavings grew with the increasing population. A whole log shavings plant with 2 modern shavings machines can utilize over 21,000 gt/yr of logs (about 840 ac) . American Wood Fiber also runs a bagging plant in Marysville using sawmill residues. Densified Wood Products – Aware only of Mallard Creek (Sacramento), which is reported to use remanufacturing residue. Also understand from an industry source that Siskiyou Forest Products (Anderson) may make or have made fire logs (unconfirmed). Fire brick feasibility study in the Sonora area was completed a few years ago by Andrew Haden (OR). California is an attractive market for residential fuel pellet manufactures and there continue to be on-going discussions at various locations.

What Large Scale Utilization Options are Being Considered Elsewhere in California?

1. Cross-Laminated Timber (CLT) 2. Oriented Strand Board (OSB)

Slide - 17

Comment [07/24/17#16]: Presentation Notes: Do Any of These Apply to Alpine County and Eastern Sierra? Statewide Wood Industry and Technology Assessment - Special funding from the USFS was obtained to perform an assessment of current deployed technology and industry in California, and what might be feasibly deployed in the near future to increase the pace and scale of ecosystem restoration treatments. Reports are posted on the National Forest Foundation web site (https://www.nationalforests.org/who-we-are/regional-offices/california-program ) and possibl the UC Berkeley Biomass Center web site (http://ucanr.edu/sites/WoodyBiomass/, see the “Library” tab). Cross-Laminated Timbers (CLT) – Cross laminated timber (CLT) is an engineered wood product made of alternating layers of dimensional lumber. The development of a CLT market will be the first new use of dimensional lumber in many years. The CLT slabs can be used for such things as well pads and bridge decking, but can also be used in buildings, where if properly engineered and designed, can be installed much quicker than standard building techniques allow (cost savings). CLT is used more in Europe than the U.S. At this point, there are only about 4 plants in N America, 2 in Canada and 2 in the U.S. The are currently two CLT plants in Western U.S.: D.R. Johnson, Riddle, OR, and SmartLAM, Columbia Falls, MT. Architects indicate the key factor holding back the market is lack of supply. Uncertain how much blue stain pine lumber can be usedin CLT panels, especially in conjunction with another species. Oriented Strand Board (OSB) – OSB is a structural panel that has wide use in buildings and industrial applications. Initial investigations by The Beck Group indicated the closest OSB suppliers for CA, which is the Western U.S. largest market, are about 1,000 mi away in British Columbia and Texas. Initial feasibility study indicated that an OSB plant would require about $166 million capital investment and 670,000 GT/yr and might affect up to 27,000 ac of forestland annually. It is assumed the OSB plant would pay about $23.5 million annually for raw material. USFS provided grant funds to The Beck ...

What Else is Being Tracked or Promoted? 1. Fast Pyrolysis, Gasification, and Portable

Technologies 2. Liquid Fuels 3. Biochar 4. Nanotechnology 5. Torrefaction 6. Cement plant co-firing

Slide - 18

Comment [07/24/17#17]: Presentation Notes: Developing Commercial Forest Biomass Technologies and Markets Gasification (partial air) – Not new, but not well proven commercially in U.S. at the scale for BioMAT projects. However, high interest from many BioMAT projects. Fast Pyrolysis (no air) and Liquid Fuels – Liquid fuel examples include biooil, cellulosic ethanol, butanol, and with further refining, jet fuel, diesel and naphtha (Red Rock Biofuel example, 140,000 BDT raw material consumption and 15 million gallons of liquid products). No large scale commercial facilities yet operating in U.S. Portable Technologies – Several fast pyrolysis and gasification technology demo units have made inquiries about locations to operate over the last 3-4 years, but potential host responses have been restrained. Liquid Fuels – Red Rock Biofuels (Lakeview, OR) has obtained necessary permits, but construction not yet started. Red Rock Biofuels is planning to make diesel, jet fuel, and naphtha (140,000 BDT input and 15 million gallons of liquid products output). If successful, this would be the first large scale wood cellulose to liquid fuel commercial facility in the U.S. (there have been previous attempts, such as KiOR, MS) Biochar – BioChar is a popular topic lately. BioChar is a char that is made for a specific purpose, usually related to soil and crop production enhancement, but also for other products, such as where activated charcoal is currently used (e.g. filtration). Most of the small biomass power plants proposed in CA will use gasification, which can supposedly produce higher quality char than a larger biomass power plant that uses conventional technology. It is hoped by many of the groups developing small-scale biomass power plants (i.e. BioMAT projects) that markets will develop sufficiently to allow them to generate revenue from the char that they would otherwise have to find other ways and means to dispose. UC Davis Soil and Environmental Chemistry Lab. ...

Conclusion • Forest Biomass Supply – If include the Lk Tahoe Basin, there

appears to be sufficient biomass supply and small sawlogs available to consider a smaller-scale business. However, the sawlog market is competitive. The number of handpiles in particular look interesting in the Lk Tahoe Basin.

• Traditional Small Business Wood Products Markets – The thriving areas of Minden/Gardnerville, Carson City, and Reno/Sparks offer opportunities for small businesses, but need to understand demand, product specs, competition, and pricing.

• Biomass Energy – Biomass energy is a tough market unless have a co-generation opportunity, such as greenhouses. Nevada does not have a regulatory climate as favorable as California for small-scale biomass energy.

• Local Creativity and Tenacity – Alpine County may lack local industrial capacity, but the ABC is a good example of the tenacity needed to keep investigating all potential options.

Slide - 19

Comment [07/24/17#18]: Presentation Notes: Conclusions

Contact Information Larry Swan Wood & Biomass Utilization Specialist USDA Forest Service, Vallejo, CA lswan01@fs.fed.us 707-562-8917

Slide - 20