Working together for Bioenergy

1. Working together for Bioenergy Mike Jostromand Carrie Annand 3/22/13

3. About Plum Creek 6.4 Million Acres Largest private landowner in US Forestry our core business Sustainably managed Investments in forest productivity

4. Wood For Energy:An Opportunity for Forest Owners • Greater use of every tree harvested • Logging residuals (tops and limbs) • Cull trees • Incidental thin • Better forestry opportunities • Thinning for productivity and health • Diversity of markets • Housing is cyclical • Some fiber markets are declining

5. Wood For Energy:An Opportunity for Forest Owners • Greater use of every tree harvested • Logging residuals (tops and limbs) • No existing markets • Better forestry opportunities • Thinning for productivity and health • Diversity of markets • Housing is cyclical • Some fiber markets are declining

6. Forestry Biomass $ Increasing Value $ Limbs Fiber Wood Solid Wood Forest Thinning

7. Wood For Energy:An Opportunity for Forest Owners • Greater use of every tree harvested • Logging residuals (tops and limbs) • No existing markets • Better forestry opportunities • Thinning for productivity and health • Diversity of markets • Housing is cyclical • Some fiber markets are declining

8. Forestry Biomass $ Increasing Value $ Limbs Fiber Wood Solid Wood Forest Thinning

9. Wood For Energy:An Opportunity for Forest Owners • Greater use of every tree harvested • Logging residuals (tops and limbs) • No existing markets • Better forestry opportunities • Thinning for productivity and health • Diversity of markets • Housing is cyclical • Some fiber markets are declining

10. Wood For Energy: An Opportunity for the US • Renewable, sustainable, and abundant • Renewable versus non-renewable • “Better than Carbon Neutral” • Bioenergy • Wood products • Working forests • Promotes sustainable forestry • Greater forest inventory • Reduced wildfire risk • Healthy forests

11. Wood For Energy: An Opportunity for the US • Renewable, sustainable, and abundant • Renewable versus non-renewable • “Better than Carbon Neutral” • Bioenergy • Wood products • Working forests • Promotes sustainable forestry • Greater forest inventory • Reduced wildfire risk • Healthy forests

12. The Carbon Cycle For Fossils For Forests One-way flow In Balance

13. The Tailoring Rule Carbon Dioxide Ruled a Pollutant • 2007; Mass vs EPA • 12/2007; Endangerment finding • 5/2010; Tailoring Rule • 6/2010; Manomet Report • 7/2011; 3 year deferral for Biocarbon • 11/2011 to 11/2012; Science Panel • Q1&2/2013; Policy approach under development • 7/2013; draft biocarbon rule • 7/2014; Final Biocarbon rule Biocarbon loses exemption; same as coal Three Year Deferral Current Opportunity

14. Working Group Approach • Identify working group • 6 Associations, diverse industry representation • BPA, BTEC, PFI, USIPA, BIO, NAFO • Identify concise scope of action • Spokesperson • Issue: Tailoring Rule • 20 targeted briefings from February through May • WG members contribute in two areas • Communications • Strategy

15. Bioenergy Working Group David Garman, former Under Secretary of Energy at DOE 20 meetings in coming months Creating materials to communicate BWG positions Ramping up regular communication among the stakeholders Telling the stories of individual foresters, biomass facilities Short-term goals are focused, but possibility to build long-term, more formal coalition.

16. Our Challenges #1: Biomass Energy is Not Well Understood by the Public

17. Our Challenges #2: The Biomass “Industry” is Actually Many Industries with Overlapping Interests, Policy Agendas, and Constituents

18. #3: With Different Industries Comes Overlapping Trade Associations Our Challenges

19. Consequences For The Industry Not well funded. Everyone is “siloed.” Not well positioned to respond to threats (NRDC, for example) or promote new opportunities (forest health) Hampers our advocacy work.

20. On The Other Hand… Biomass is an attractive “story” that isn’t being told. Strong rural economic benefits alongside promotion of healthy forests. Natural, and largely untapped, stakeholders, at federal, state and local levels—and across the entire public/private sector spectrum.

21. Our Opposition NRDC, Environmental Working Group, Sierra Club and others have defined us, are better funded and have a larger network. The opposition’s argument (“biomass causes deforestation”) appeals emotionally to the very audience that should be supporting biomass. They have a simple argument with no evidence, while we have so much evidence that it’s hard to simplify and our story is not being effectively told.

22. Opposition Media

23. Our Solution We need a unified, proactive communications strategy that accomplishes three primary goals: Educate the public Address issues around sustainability, compatibility with other industries (“food for fuel”), and emissions Convert a positive message into legislative/regulatory benefits

24. Telling Our Story • We want to conduct a state-by-state branding campaign with the following elements: • Comprehensive, engaging website & toolkit • Tailored messaging based on market research • Mobilizing the industry and supporters • Advertising • Facility tours • Social media • Rapid-response mechanisms • Curriculum development

25. Questions?