Woodfuel Woodland Improvement Grant 2011

1. Woodfuel Woodland Improvement Grant 2011 Ewan Calcott Grants & Regulations Manager FC England ewan.calcott@forestry.gov.uk

2. Woodfuel Woodland Improvement Grant:Woodfuel WIGWF WIG

3. Woodfuel WIG presentation - Overview • Background – Woodfuel, where did it start? • Introduction to WF WIG • delivery and timescale • communications • WF WIG objectives • fund Projects • Basic eligibility and definitions • Timber fund and process • Roads fund and process • Amendments Footer text

4. Woodfuel – Background 1 • Woodfuel policy timeline • 2007 – England Woodfuel Strategy • 2009 – UK Renewable Energy Action Plan • 2008 – 2010 - Various policies on Carbon • However, • woodfuel supply chain remains fragile • barriers still prevent woodland owners from realising full potential • Sector committed to an implementation plan: • Aims, • increasing wood supply • encouraging the use of woodfuel • help rural-based businesses increase their capacity Footer text

5. Woodfuel – Background 2 • Aims: • Facilitate the development of access within woodlands • Develop and test new approaches to woodland management • Develop woodfuel supply chains • Provide expert and impartial information on heating buildings using wood 2011 - Woodfuel Implementation Plan (WIP) • Target: • To achieve EU Renewable Energy Directive (RED - 2009) - 15% of UK energy from renewable sources by 2020 • Launched at ‘Ignite’ June 2011 • Nearly 50% of UK carbon emissions come from heating buildings • Renewable Heat Incentive will increase demand for woodfuel Footer text

6. Woodfuel WIG – Introduction • Woodfuel WIG (WF WIG) • Contributes to the WIP – increased timber production • RDPE Axis 1 funding – improving competitiveness i.e. economic focus • Funding redirected from Energy Crop Scheme • Linked to offsetting fossil fuel based energy production – carbon reduction targets • £10m to be delivered in England by 31st March, 2014 • Fixed, 60% grant contribution rate • Has Ministerial approval - June 2011 Footer text

7. Woodfuel WIG – Priority delivery • Focused effort in 3 locations: • South West England £3.25M • South East England £3.25M • Cumbria (only) £1.75M • DEFRA funded contract will deliver WF WIG in these areas (with some FC staff involvement) • Contract awarded to Ngage • Elsewhere – • East England – own arrangements • West Midlands - WO delivery • £1.75M over 2½ years Footer text

8. Woodfuel WIG – Funding timescale • WF WIG funding available until March 2014 • By then • All agreed work must be completed and claimed • Grant awards are tied to agreed financial years • Little scope for rescheduling • WF WIG indicative only • funds will be demand led • NB: Already well into year 1 of the programme • Promotion of WF WIG needed • Encourage management plans to be drawn up • Identify woodlands where grants could apply and contact owners Footer text

9. Woodfuel WIG – Delivery by 2014 Footer text

10. Woodfuel WIG – Communications • Promotion: • Woodland & Woodfuel (WFO) Officers • WF WIG flyer and website • Regional events (today!) • Training events (WIP, Tracks) • Email alerts • Press releases • Applicant guidance & forms • Other promotion - depends on demand • All to be monitored • FC Staff / WFO information – the above plus: • Grant rules • Internal training Footer text

11. Woodfuel WIG – Aim, objectives & delivery • Aim: • Offset fossil fuel based energy with renewable energy • Objectives: • Increase annual timber production (2M target) • Substitute fossil fuels, reducing carbon emissions • Improve the economic value of woodlands • Bring under managed woodland into production • Increase the area of woodland in sustainable management • Improve access to woodland areas, where this is a limiting factor for timber production • Generate additional environmental and social benefits • Delivery funds: • Timber– Measure and market timber • Roads– Create or improve access to extract timber Footer text

12. WF WIG – Basic eligibility 1 • Basic EWGS and WIG eligibility rules apply • Additionally, • A management plan detailing • undermanaged woodland areas, and / or • inaccessible woodland areas • A justification for access creation or improvement • A basic timber volume assessment • estimated volume of timber not reaching market due to • limited access, or • lack of marketing • Grant support value is proportionate to volume of timber (and associated carbon value) harvested • As a guide, £50 (carbon value) per tonne of timber harvested gives a maximum potential project value Footer text

13. WF WIG – Basic eligibility 2 • Permissions • Legal requirements from other authorities need to be obtained e.g. • Planning authority – planning permission / GDO • Environment Agency – water resources • Other legislation to consider e.g. • EIA (Forestry) Regulations 1999 • European Protected Species 1994 • Mines and Quarries Act 1954 • Construction (design & management) regulations 2007 • EU’s ‘De minimis’ regulations • Restricts how much a beneficiary may receive • An enterprise may receive up to €200k in any 3 years • Owners will have been notified of Di minimis funding when granted • May prevent or delay applications being eligible • NB: De minimis does not include RDPE Axis 2 agri-environment grants, but does include historic buildings and access funds Footer text

14. WF WIG – Basic eligibility 3 • Definitions – for WF WIG: • Undermanaged • missed at least the last two normal silvicultural interventions • Conifer woodland 10 years • Broadleaved woodland 20 years • Coppice woodland 30 years • Inaccessible • where the cost of harvesting timber is prohibitive because of • lack of, or • poor quality, or • damaged access infrastructure • Note: • Both definitions can apply to a single area of woodland • Timber revenue is excluded from grant calculations Footer text

15. WF WIG – Timber fund profile • Woodfuel WIG - Timber • Target: Undermanaged woodlands • Supports: • Inventory data collection • Tree marking • Forest mensuration • Preparing sales and tender particulars • Managing harvesting contracts • Delivering harvesting machinery to site • Agents supervision time for these activities • site by site decision • Grant Offer • Based on new set of Standard Costs • Not for use with other WIG’s • Grant payment • Fixed, 60% grant contribution Footer text

16. WF WIG – Timber fund application • WF WIG Timber calculator • A new, separate WIG calculator sheet • Operates exactly the same as WIG Bio / Access • Application • EWGS 1 • EWGS 5 – brief detail of eligible operations proposed • Timber fund WIG calculator • Map(s) • Management Plan – contains • Justification of eligible area of woodland • Basic timber volume assessment • Process • Application submitted • Proposals agreed and agreement issued • Work completed (by Feb 2014) • EWGS 8 claim form submitted for all completed work • Claim paid (before 31 March 2014) Footer text

17. WF WIG – Roads fund profile • Inaccessible woodland needs? • New access? • Upgrade of existing access? • Repair of damaged access? • Woodfuel WIG - Roads • Target: Inaccessible woodlands • Is access infrastructure adequate? • Management planning is a must! • Supports civil engineering work • New civil engineering specifications provided • Indicative job prices can ‘model’ access solutions • Agreed work programme is tendered • Grant offer • Based upon best of 3 civil engineering quotes • Offer of grant proportionate to timber volume available • Grant payment • Based on receipted invoices (actual costs) • Only receipts presented can be claimed for • Fixed, 60% contribution to actual costs • Excludes VAT where applicant is VAT registered Footer text

18. WF WIG – Road fund pre application • Management plan – must contain • Up to date information • Justify need for access improvement • Harvesting programme • Basic timber volume assessment • Professional services recruited • Forestry agent • Civil Engineer • Red tape • Permissions needed • Legislative issues • Regulations • Local consultations Applicants pre application planning • Support • Road & track construction guidance • Detailed engineering specifications • Available finances and time • 60% of actual costs funded by WF WIG grant • 40% of actual costs funded by? • Cost model various access solutions • Establish market value of timber to be harvested • Timetable construction and harvesting programme • On site planning • Route selection • Machinery and use • Haulage / timber extraction / turning / loading / stacking • Road maintenance • Long term sustainability Footer text

19. WF WIG – Why alter road specifications? • RDPE rules – Axis 1 funding requires 3 independent quotes • ‘R’ Code Standard Cost specifications (Operations Note 9 ) • insufficient specification detail to create sustainable harvesting access • Value for money? • Mixed quality of civil engineering projects under WIG Bio • Lack of evidence that projects will be maintained after harvesting • Construction (Design & Management) Regulations 2007 (CDM) • The CDM Regulations cover most common building, civil engineering and construction work • You must notify HSE of the site if the construction work is expected to either • last longer than 30 days • or involve more than 500 person days of construction work • The woodland owner has ongoing responsibility for • Planning and inception of forest road • Construction and delivery • Safe and effective use and maintenance once built • Any problems will always come back to the owner, civil engineer and user Footer text

20. WF WIG – Civil engineering specs 1 • WF WIG Roads calculator • Replaces limited ‘R’ Codes in Ops Note 9 (Standard Costs) • Covers all aspects of track and road construction and maintenance • Each specification is a ‘layer’ in track construction • Indicative ‘England’ cost for each specification • An Excel spreadsheet based calculator • Easy to use / change / email • Applicant completes the sheet showing • How many units of work for each specification • Creates a ‘Bill of Quantities’ for civil engineering contractors to quote against • Summarises in a familiar WIG calculator format • Once submitted, FC will • agree specification on Roads WIG calculator • Roads WIG calculator is used to obtain 3 independent civil engineering quotes Footer text

21. WF WIG – Civil engineering specs 2 • Can an applicant quote to do the work themselves? • Yes • The applicant • Specifies and agrees type and quantity of work • Uses indicative costs – cannot invoice self • Must still obtain 2 other independent quotes • Best value quote becomes EWGS grant offer • If applicant quote is best value • Grant offer based on 60% of 80% of indicative cost • Reduced to cover ‘in kind’ contributions • e.g. own machine or labour • Similar to using existing Standard Costs • Some receipts still need to be produced • FC will determine best value quote Footer text

22. WF WIG – Road fund application • WF WIG Roads application • EWGS 1 • EWGS 5 – brief detail of eligible operations proposed • Roads fund WIG calculator and ‘Bill of Quantities’ • Map(s) • Confirmation of Di Minimis funding • Management Plan – must contain • Justification of inaccessible area of woodland • Basic timber volume assessment • Process • Application submitted – Case registered in GLOS • Proposals checked and specifications agreed • Quotes from 3 civil engineers sought (Case set to WAP) • Best Value quote used as basis for grant offer – Agreement issued • Work completed (by Feb 2014) • EWGS 8a claim form submitted along with receipted invoices • Claim verified and paid on actual costs (before 31 March 2014) • Timber is produced within 5 - 7 years (10 years max), or grant is reclaimed • Harvesting as per management plan Footer text

23. WF WIG – Grant offer and claim • For WF WIG Roads: • Grant offer agreed - based on 60% of best value quote • EWGS contract issued with agreed Grant offer • Grant offer is the maximum that can be claimed • Once work is completed: • Claim is made based on receipts and invoices (actual costs) • FC will only contribute 60% of actual costs • Grant offer in GLOS is changed to match with actual costs • Claim is then paid on 60% of actual costs • Inspection of the new infrastructure Footer text

24. WF WIG – Example Grant offer & claim • Example: • Civil engineering quote suggests £25k project • EWGS Grant offer (60% contribution) £15k • EWGS contract is issued with Grant offer • Work is undertaken and completed • Applicant submits claim with receipted invoices • Receipts & Invoices total (actual costs) £22k • EWGS Grant offer adjusted (in GLOS) - • 60% of actual costs £13.2k • EWGS claim paid £13.2k • NB: Actual costs cannot exceed original Grant offer in GLOS Footer text

25. WF WIG – Amendments • Amendments • Limited lifespan for WF WIG • prevents rescheduling • if claim year missed, unlikely that claim can be paid • However, some amendments are possible - where • Significant changes to road cost are identified after EWGS agreement signed • Applicant and FC can agree amendment to specification • Funds remain available • Then, • Adjustments can be made to the EWGS contract • EWGS contracts resigned as normal Footer text

26. Questions?