Massachusetts Sustainable Forest Bioenergy Initiative

1. Massachusetts Sustainable Forest Bioenergy Initiative NAASF Forest Utilization & Marketing Committee Meeting Sullivan, MO June 2, 2009 Effective Business Planning for Logging Companies to Increase Competitiveness in Biomass Markets

2. Massachusetts Sustainable Forest Bioenergy Initiative Actors Dept. of Energy Quarterly Grant Reports Biomass Supply Infrastructure Strategic Plan DOER Biomass Resource Assessment Fuel Harvesting and Processing – Best Practices Report INRS Forest Ecology & Bioenergy - Best Practices Reportnutrient cycling, carbon cycling, water cycling, erosion, wildlife, etc. State Forest Planningmodel forestry operations industry assistance UMass Forestry DCR MWCC Forest Industry Training safety & harvesting workshops Biomass Informational Brochures & Website Media Consultant Policy Discussion/Coordination Consensus UMass Resource Economics Regional Economic Impact Report: Biomass Power Plants Fuel Supply Economics IMPLAN Analysis Technical White Papers: CO2 netting forest management enviro. impacts Technical Research Consultant EOEA MA Energy Crop Assessment Facilitation Consultant State Biomass Policy Agreement White Papers & Policy Recommendations Stakeholder Meetings & Recommendations:forestry impactsemissions, water use trucks, C&D, etc. Stakeholder Group: BEWG, Industry, Forestry, Towns, NGOs, Planning Commissions UMass CREST Center (under separate DOE funding) RPS Consultant Review RPS Applications, Evaluate Emissions and Adv. Tech Biomass Project DevelopmentSite studies Project facilitation Market Development Consultant = leader Note: All primary contractors will provide DOER with quarterly progress reports. Subcontractors will report to lead contractors/consultants. = products and tasks

11. Upcoming White Paper Currently seeking consultants • Sustainable Forest Management and Implications of Biomass Harvesting • Carbon Sequestration of Forests with and without Management • Net Carbon Balance of Biomass Energy • U.S. and International Policies with Regard to Biomass and Carbon Neutrality

12. Improved sustainability and competitiveness for logging companies through effective business planning Funding provided by: Wood Education & Resource Center

13. Project objectives • Create business plans for six logging companies that represent common equipment configurations and market conditions • Create generic templates for business plans for each of the six configurations • Create an instructional guide that describes the templates and walks companies through the planning process • Create and deliver training programs. • Disseminate these materials to companies throughout the region

14. Business Plan Development • Small scale one person with farm tractor cutting firewood for internal organization • Manual crew with cable skidder cutting sawlogs and firewood considering equipment upgrade • Small scale crew with forwarder cutting sawlogs, firewood and pulp for internal organization • Small scale crew with forwarder, portable sawmill, and firewood processor cutting sawlogs and firewood for generational use • Mechanized cut to length company with multiple crews, trucking, road building cutting all forest products for generational use and financing • Sawmill interested in clean chip production to serve growing school and institutional market

15. Training programs • Business Plan Development – four workshops • Marketing Forest Products – three workshops • Equipment Financing – three workshops • CAT World Financing – one workshop • Loggers from MA, CT, NH, NY, VT in attendance

16. Rob Rizzo Bioenergy Program Manager Massachusetts Department of Energy Resources 100 Cambridge Street, Suite 1020 Boston, MA 02114   Robert.Rizzo@state.ma.us Ph: 617.626.7379 http://www.mass.gov/doer/