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   Report  to the Washington    State  Legislature   Wood to  Energy in Washington:Imperatives,  Opportunities, and Obstacles to Progress
Executive Summary/Full   June  2009     C.  Larry Mason, Richard Gustafson, John Calhoun,  Bruce R. Lippke, and Natalia  Raffaeli   
 University of Washington College of Forest Resources
 Box 352100
 Seattle, WA. 98195-2100
 
 This report represents a synthesis of  information and analysis provided from many sources.    The work of the research team included a  review of scientific, government, non-governmental organization, and industry  literature; the popular press; and interviews with government agency personnel,  industry professionals, products venders, community representatives, tribal  leaders, and others.  Members of the  collaborative research team included Larry Mason, Research Scientist and  Project Coordinator of the Rural Technology Initiative (RTI); Richard Gustafson,  Professor of Pulp and Paper Sciences and Director of the Bioenergy Workgroup at  the University of Washington; John Calhoun, Director of the Olympic Natural  Resources Center (ONRC); Bruce Lippke, Economics Professor and Director of the  Consortium for Research in Renewable Industrial Materials (CORRIM) and Director  of RTI; Natalia Raffaeli, Research Assistant and PhD. candidate.  Administrative support was provided by Clara  Burnett (RTI). Additional assistance was provided by David  Sjoding and Kim Lyons, Washington State University Energy Program; Peter  Moulton, Tony Usibelli, Greg Nothstein, and Tim Stearns, Washington Department  of Community, Trade and Economic Development; Mark Fuchs, Washington Department  of Ecology; Craig Frear, Don Young, and Jonathan Yoder, Washington State  University School of Economic Sciences, and many others. This work was made possible by funding  provided by and under the mandate of the Washington State Legislature through  the Washington Department of Community, Trade and Economic Development. Any opinions, findings, conclusions, or  recommendations expressed in this publication are those of the authors and do  not necessarily reflect the views of the University of Washington, the  Washington State Legislature or the many project cooperators.   “The fuel of the future is going to come from apples,  weeds, sawdust—almost anything.  There is  fuel in every bit of vegetable matter that can be fermented.”Henry  Ford,
 "Ford  Predicts Fuel from Vegetation," New York Times, Sept. 20, 1925, p. 24.
   "With all due deference for the dream  chemists, armchair farmers and platform orators who have touted  alcohol-gasoline as the greatest of all fuels, oil industry technologists know  and automotive engineers know that it is not as satisfactory a fuel as straight  gasoline of normal quality."Conger Reynolds,
 "The Alcohol Gasoline Proposal," American Petroleum  Institute Proceedings, 20th Annual Meeting, Nov. 9, 1939.
   Executive SummaryAt the request of the  Washington State Legislature, a thorough investigation of the potential for  utilization of wood for renewable energy in Washington has been conducted by  University of Washington scientists.  Summary  findings and recommendations are presented below.   Key Study Findings:
            
              Three fundamental  imperatives compel changes in energy policy:  Climate Change  Mitigation, Energy Independence, and Sustainability.
                
                  Washington is 100 percent reliant upon oil imported from  other states or abroad.  Petroleum  consumption for transportation accounts for half of all Washington greenhouse  gas (GHG) emissions. Washingtonians spent $9 billion on fuel  imports in 2006. Washington, with substantial hydro-electric and nuclear  generation capacity, is a net power exporter, has low electricity rates, and  generates the cleanest electricity in the Nation.  Unlike the transportation sector, changes in  electricity generation have comparatively limited potential to reduce  greenhouse emissions. 
              Where possible,  development of renewable in-state sources of transportation fuel should be the  State’s highest energy priority. 
                Plant biomass is the only Washington renewable resource  that can be converted to biofuels for transportation, such as ethanol. Wood is the dominant biomass resource in Washington;  accounting for two-thirds of all potentially available biomass.  
 
 Production of  renewable biofuels in Washington will necessarily require wood as a primary  feedstock and efforts to reduce State greenhouse gas emissions must fully consider  forests and forest resources.
                
                  Forests play a unique role in climate change mitigation  by absorbing CO2 through photosynthesis, storing carbon in tree biomass and  building products, offsetting use of polluting building product alternatives,  and by providing biomass for energy.Thinning forests to avoid CO2 emissions from catastrophic  wildfires while providing wood resources for green building materials and  renewable biofuels will deliver double greenhouse gas emission reduction  benefits while sustaining forest ecosystems.   As example, in 2006, greenhouse gas emissions from wildfires in  Washington were greater than total emissions from electricity generation.The forest industry represents the State’s largest  biomass collection system, is the largest industrial provider of renewable  energy, and has potential to significantly improve wood-to-energy recoveries  and outputs. 
 
Energy recovery of  liquid fuels from wood biomass will require large integrated biorefinery  installations that must be able to secure resources for operations and markets  for bioenergy outputs.
                
                  Significant production of biofuels in Washington will be  dependent upon regular collection of millions of tons of wood biomass  augmented, where possible, with recovered biomass from cities and fields.Federal policies, such as the Energy Independence and  Security Act of 2007, restrict use of wood biomass from National Forests for  energy conversions undermining both biofuels development and reduction of CO2  emissions from forest fires.  Where possible,  co-location of biorefineries with pulp and paper mills represents the greatest  potential State opportunity to maximize energy recovery of liquid fuels,  electricity, and process steam from woody biomass resources. Co-location will  bring reduced capital costs, access to needed infrastructure, synergies for integrated raw  materials and product streams, and an engaged corps of highly-skilled chemical  engineers and union workers.            
 
Sustainable  development of renewable energy alternatives to fossil fuels will require  careful planning, resource conservation, and committed policy supports.
                
                  Where biorefinery development is feasible, State policies  must be designed to accommodate considerable biomass deliveries.Where biorefinery development is not feasible, secondary wood-to-energy priorities could include co-fired generation, wood pellet manufacture, or institutional heating.
 
Washington State must  have  a cohesive strategy for renewable  energy development to meet its renewable energy and green house emission goals. 
                
                  Washington does not have a Department of Energy or other  organizational framework for effective scientific participation in policy  consideration of the interrelated topics of energy, climate, and forest  resources. Criteria for comparisons of potential alternative energy  and resource applications have not been developed to inform energy policy  priorities. As example, the implications of wood biomass combustion for  electricity verses chemical conversion to transportation fuels appear, as of yet,  to have not been considered in State energy policy. The many public benefits of energy alternatives to fossil  fuels are not readily captured by consumer markets and, in lieu of integrated  planning, are not adequately characterized in State energy policy.Current State energy policies, such as I-937,  inadvertently favor small-scale and inefficient conversions of biomass to  electricity which fail to address energy independence, have poor raw  material-to-energy yields, and compromise biofuels development. 
 
In absence of  integrated planning and enduring commitment to change, opportunities for wood  to energy are compromised while combustion of imported fossil fuels and  associated green house gas emissions continue to increase.     Recommendations: 
              A lead State agency  is needed to coordinate policy development for the interrelated topic areas of  climate change mitigation, energy independence, and sustainable management of  State natural resources. 
                
                  An inter-disciplinary team of scientists from  Washington’s universities should be assembled  to develop recommendations for realistic, effective, and implementable  strategies for renewable energy development and climate change mitigation.  Robust methodologies such as Life Cycle Assessments (LCA)  and Net Energy Balance (NEB) must be employed for energy alternative  evaluations if comparative benefits are to be understood. 
 
Energy priorities  need to be identified to inform development of a cohesive State energy  plan.  
                
                  Policy mechanisms should be designed to capture the  non-market values and avoided costs of reduced reliance upon fossil energy.An effectiveness comparison for Washington of a cap and  trade program verses a carbon tax or other climate policy option should be  conducted once energy priorities are identified.Policy supports must be developed to encourage investment  in renewable energy and assure viable markets for energy products. Washington should  pursue policies that support large-scale biofuels projects rather than  inefficient small-scale power projects.              
              A pilot project for an integrated biorefinery, located at  a pulp and paper mill, should be developed and implemented in Washington.Washington policy makers should pursue regulatory changes  that broaden rather than constrain access to forest biomass resources.Investments in thinning for forest health offer unique opportunities to combine ecosystem protections with bioenergy development. 
              
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                | Washington’s  Potential Biomass Resources (Frear 2008). |  Summary Narrative:This analysis began as an investigation of  barriers to woody biomass utilization for energy in Washington but expanded  quickly to become more comprehensive as our analysis revealed that perhaps a  significant barrier is a lack of integrated understanding of complex issues  that need serious consideration if progress is to be achieved.  Issues include technical, economic,  environmental, social, and moral questions that require continued scholarly  research but ultimately can only be resolved by an informed political  process.  The choices ahead are  difficult, expensive and long-lasting with implications for future generations  and forest ecosystems in Washington and around the world.  While obstacles appear formidable and  numerous, none are insurmountable if Washington citizens choose to focus sufficient resolve.  The conversion of solar radiation into  chemical energy via photosynthesis results in the growth of vegetative biomass  made up of organic compounds which have intrinsic energy content. Biomass is  effectively stored solar energy. Most of the world’s biomass is found in  forests.  Forests play a specific and  important role in global carbon cycling by absorbing carbon dioxide during  photosynthesis, storing carbon above and below ground, and producing oxygen as  a by-product of photosynthesis. In the presence of increased greenhouse gases  in the atmosphere, healthy forests help to mitigate the effects of climate  change on the environment by removing carbon dioxide (CO2) from the  atmosphere.  Forests in the United States  absorb and store about 171 million metric tons of carbon each year, an amount  equivalent to 11 percent of the country’s CO2 emissions.  The highest sustained carbon accumulation  rates for American forests are reported to occur with new forest growth on high  productivity sites in the western Pacific Northwest.  Sustainably-managed forests that are  periodically harvested, planted, and re-grown to produce a continuing series of  short- and long-lived products and energy feedstocks, sequester and offset more  cumulative carbon than forests that are left unharvested.  When forest health declines or when forest  fires occur, releases of stored forest carbon transform forests so that they  become a carbon source rather than a sink.   Wood residues from forests can be referred to  as woody biomass or as lignocellulosic or cellulosic energy feedstocks.  All wood fiber that does not have higher  value product potential for non-energy applications can be considered as woody  biomass.  Woody biomass can include  forest residues such as tops, limbs, foliage, bark, rotten logs, and stumps  (otherwise commonly known as logging slash) that historically have been left on  site or burned following timber harvest.   Woody biomass may also include such materials as may be salvaged from  pre-commercial thinning activities, designed to reduce stocking densities in  young forests such that remaining tree growth is optimized.  Forest fuels reductions (generally in  fire-prone dry forests) can produce woody biomass as small diameter understory  stems and ladder fuels are removed to create conditions such that, when an  ignition occurs, a comparatively benign ground fire is the result rather than a  destructive crown fire.  Woody biomass  also refers to primary and secondary wood product manufacturing residuals  including bark, saw dust, planer shavings, and ground wood pieces known as hog  fuel.  Wood chips that are manufactured  from round logs not suitable for lumber manufacture or sawmill slabs and pieces  may also be used for energy feedstocks but are generally considered to have  higher value for paper manufacture.  A  by-product of pulp and paper manufacture is black liquor; which is another wood  process residual that is used for energy.   Dedicated tree plantation crops such as fast-growing poplar and willow  may also be used for energy generation.   The yield from such crops is considered woody biomass although the  cultivation practices more closely resemble those of agriculture.   There are many contemporary wood-to-energy  conversion alternatives that can be and are employed to produce heat and  electricity as well as solid, liquid, or gaseous fuels.  Energy conversions can be as simple as combustion  for heat or as sophisticated as biochemical and thermochemical processes to  produce transportation fuels such as ethanol.   We find that, while conversion technologies are improving through  continued research, many wood-to-energy applications have been used for  decades, are technically feasible, and could be immediately implemented; albeit  at costs that are not readily competitive with fossil fuel alternatives given  current energy market dynamics.   Examination of energy markets reveals that  significant environmental and economic costs resulting from fossil fuel  combustion and reliance upon imported oil have not been incorporated into  consumer prices.  For example, societal  costs of climate change and health impacts from gasoline combustion have been  estimated at more than $1.00 per gallon while reliance upon imported oil from  politically volatile areas of the world has been shown to reduce US gross  domestic product by upwards of one percent.   These real public costs add up to hundreds of billions of dollars  annually but are not included in the consumer price of fossil energy.   There are also substantial public costs  associated with failure to manage forests to reduce overstocked densities.  Especially compelling are the considerable  potentially avoided environmental and economic costs of catastrophic  wildfires.  US wildfire suppression costs  alone are in the billions of dollars annually and the Climate Impacts Group at  the University of Washington forecasts that, without action, global warming  will increase incidence and intensities of forest fires in the inland  west.  Wood biomass is the dominant State  non-hydro source of renewable energy; representing fully two-thirds of  Washington’s potentially available biomass inventory.  Unlike agriculture, forests don’t require  large amounts of polluting fertilizers, volumes of water for irrigation, or  transformations of ecosystems to non-native vegetation.  The Washington forest industry represents the  largest biomass collection infrastructure in the state. Given Washington  commitments to renewable energy development and greenhouse gas emissions  reductions, utilization of wood wastes for energy should be a high priority.  However, if progress is to occur then the  economics and other benefits of wood biomass for energy must be better  understood.  Given that fossil fuels are  energy-rich and inexpensive, policy supports for renewable energy alternatives,  based upon explicit cost/benefit analyses, will be needed.  It should be recognized that the existing  forest industry infrastructure is a significant contributor of renewable energy  and that, with policy support for investment, could increase energy outputs  from the existing captured resources such as hog fuel and black liquor.  Manufacturing wastes are a byproduct of higher  value solid wood and paper manufacture and are the lowest cost source of  biomass.  The pulp and paper industry has  potential for biorefinery development to efficiently produce a mixture of  products outputs that could be expanded to include heat, electricity, and  liquid fuels, such as ethanol, at lower cost than new stand-alone energy  plants.  Low cost hog fuel, when mixed  with higher cost forest residues, can result in a raw material cost index to  support broad utilization of wood biomass resources. We identify three imperatives for guiding  progress that have been well-documented in the literature, but have not been  adequately integrated into policy.  Energy  policies should seek to maximize integrated achievement of three important  goals: climate change mitigation, energy independence, and sustainability.  When viewed from this perspective, it is  readily apparent that the state energy priority should be liquid transportation  fuels and that, for Washington, wood is the primary raw material available for  biofuels conversions.  Combustion of  fossil fuels for transportation accounts for fully one-half of the annual  greenhouse emissions in Washington; more than twice that released from any  other source.  Other than minor in-state  production of biodiesel, all transportation fuels consumed in Washington are  imported from other states or abroad whereas Washington, with abundant  hydro-power, generates the cleanest electricity in the nation and is a net  electricity exporter. Wind power installations are adding new clean electricity  capacity but cannot provide for liquid fuel needs. The decline in Alaska oil  production, on which Washington is dependent, should further focus State  attention towards securing new liquid fuel resources.  Washington’s potentially available wood  biomass resource has been estimated to be more than 11 million bone dry tons  per year.  For relative perspective on  the magnitude of this resource, we offer the following theoretical conversions.  Total potential ethanol produced from all  Washington wood biomass resources could be 900 million gallons per year; enough  to replace one-third of 2008 gasoline consumption.  WSU colleagues have estimated that the  potential electricity from Washington’s wood biomass would be equal to 11.5  million MWh or about 13 percent of total Washington electricity use.   We find, however, that a lack of strategic  energy priorities in Washington, compounded by political disagreements, has  resulted in a peculiar assortment of counterproductive policies (discussed  below) that inadvertently reward underutilization of energy resources by  focusing on small-scale, capital-intensive, and inefficient conversion projects  to produce low-priority electricity. Further, although State policy makers have  clearly identified greenhouse gas emissions reductions and renewable energy  development as very important public objectives, policies appear to have  overlooked the need to integrate resource stewardship and energy generation  towards best fit with existing industrial infrastructure.
 While obstacles appear formidable and  numerous, we hypothesize that none are insurmountable if Washington citizens choose to focus enlightened  resolve.  We refer the reader to the  history of ethanol development in Brazil as example.  On the other hand, the challenges to  substantive reductions in fossil fuel consumption must not be discounted.  Fossil fuels are energy-rich, are supported  by a vast infrastructure, and, without consideration of factors such as  greenhouse gas emissions and energy independence, appear as least-cost energy  options for consumers.
 Important to any discussion of renewable  energy substitution for fossil fuels is a recognition that progress will occur  at the margin.  Review of domestic and  international analyses indicates that total energy independence from fossil  fuels is not potentially achievable within any foreseeable planning  window.  This does not imply, however,  that incremental improvements cannot be important or should not be  pursued.  Development of all potential  domestic renewable resources, with careful planning towards an integrated  energy portfolio, will ensure optimized levels of success.   Evolving public perceptions regarding  forests, biomass exploitation, and non-market amenities will play a major role  in how much of the wood resource base may be used for energy.  The public must be credibly assured that  woody biomass produced from Washington State forests is an environmentally  sound and safe source of renewable energy.   However, given the mounting problems of global warming and forest health  declines, concerned stakeholders must be challenged to revisit out-dated  notions that forests unmanaged are protected. It will be important that the  consequences of failing to act be fully appreciated.  As demonstrated in many of the discussions  presented throughout this report, failure to mitigate climate change, reduce  fossil fuel pollution, increase energy independence, and implement practices to  ensure forest sustainability is already resulting in significant environmental,  social, and economic costs.  Numerous  international, national, and state political leaders have characterized the  need for effective response to current climate and energy challenges as the  paramount concerns of the twenty-first century.   The Intergovernmental Panel on Climate Change  (IPCC) is a globally-convened body of hundreds of scientists that are generally  recognized as the pre-eminent international authority on climate change. IPCC  investigation into potential climate change mitigation options resulted in the  following conclusion. “In the long term, a sustainable forest management  strategy aimed at maintaining or increasing forest carbon stocks, while  producing an annual sustained yield of timber, fiber, or energy from the  forest, will generate the largest sustained mitigation benefit.”  (IPCC.  2007. Climate Change 2007: Mitigation. Contribution of Working Group III to the  Fourth Assessment Report of the IPCC.). The four most important findings that emerge  from this study: 
              Energy  policy must be examined in the context of three over-arching imperatives that  compel immediate attention: Climate Change Mitigation, Energy Independence, and  Sustainability.  Wood  is second only to water as a source of renewable energy for Washington, and,  conversions to liquid transportation fuels emerge as the highest priority for  maximizing integrated achievement of the imperative objectives.Liquid  fuels conversions from wood biomass will require large biorefinery capacity  designed to utilize dispersed biomass resources for maximized bioenergy  outputs.  Co-location with State pulp and  paper mills represents the greatest opportunity for success.While  a paradigm shift from fossil fuels to renewable energy will be difficult and  expensive, the environmental and economic costs of inaction outweigh needed  investment for change. Expanded Discussion and Recommendations Linked to Report  TextThe  following text presents key recommendations and support discussions from the  Wood to Energy in Washington study with reference to pertinent sections of main  body of the report for ease of navigation to greater detail.
 Climate change 
              Discussion: Significant research  contributions regarding climate change are being achieved by the Climate  Impacts Group at the University of Washington.   However, alarming findings, in the absence of suggested strategies for  mitigation and adaptation, can serve to confuse policy discussions resulting in  uninformed and counterproductive political responses as discussed in Section  IV: 4.4. Obstacle 4 – Policy and regulations.   The Climate Leadership Initiative, in a  study conducted for the Washington Department of Ecology, estimated that by  2020 the cumulative costs of climate change in Washington will be equal to $3.8  billion per year, about 1.2 percent of total State 2007 GDP. Part of this cost  is attributed to increases in incidence and intensity of wildfires. As  mentioned above, such public cost liabilities are not currently incorporated  into commercial energy markets. See Section II: 2.1. Greenhouse Gases and Climate  Change; In Washington State and The costs of inaction and Section III:  3.3. Biomass from forests – opportunities and benefits; Forest health.
 
Recommendation: Policy mechanisms to include non-market  values and avoided costs in energy accounting are needed.
 Energy independence
 
              Discussion: The value of energy  independence appears to be significant but under-appreciated in policy  frameworks.  US expenditures on oil  imports were $330 billion in 2007 and accounted for 40 percent of the national  trade deficit. In 2005, Alan Greenspan estimated that oil imports reduced US  GDP by $100 billion. Washington citizens spent $9 billion on fuel imports in  2006.  When policy makers combine  strategies for energy independence with climate change mitigation, the economic  benefits of energy independence should serve to underwrite the costs of  biofuels development and greenhouse gas emissions reductions.  See Section II: 2.2. Energy independence; Price is not cost.
 
Recommendation: An assessment of costs and benefits that could  derive from reduced reliance upon imported fossil fuels in Washington resulting  from development of wood biomass for ethanol should be conducted.   Forest health
 
              Discussion: Deforestation refers  to a loss of forestland to another land-use.   For example, deforestation could result from clearing forests for  agriculture or could occur as a result of fires or floods.  Most global deforestation occurs in  developing countries with tropical forests; however, deforestation is occurring  in Washington with net losses of forestlands to wildfires, insects and disease  and from land-use conversion for development. When deforestation occurs the  loss is two-fold.  The carbon that has  been stored (sequestered) in the forest is released and the opportunity for  future sequestration of atmospheric carbon is also lost.  Increases in forest mortality and wildfire  frequency and intensity have reached crisis levels.  Reports from climate scientists indicate  that, as the planet warms, the destructive impacts of forest health declines  will escalate resulting in releases of stored forest carbon transforming  forests so that they become a carbon source rather than a sink.  In 2006, 33 million metric tons of CO2 were  released into the atmosphere by wildfires in Washington accounting for 42  percent of the state annual total CO2 releases; close to three times  the emissions released by electric power generators. We suggest that forest  biomass removals that address climate change mitigation and energy independence  through production of biofuels warrant public investment to avoid much larger  long-term costs.  Critical to the dual  goals of forest health and biomass energy development will be a change towards  proactive stewardship on National Forests.   See Section III: 3.3.  Biomass from forests – opportunities and benefits; Forest health and Section IV: 4.1. Obstacle 1- Access to the  resource; Supply assurance and  Section IV: 4.2. Obstacle 2 – Public perception; What is deforestation?
 
Recommendation: Washington needs a plan to integrate biomass  removals for forest health with climate change mitigation and energy  development. Policy makers should urge revision of current restrictions that  exclude biomass from National Forests for renewable energy conversions.   Wood biomass resources
 
              Discussion: All types of  wood-derived biomass resources including black liquor, and recoverable wood and  paper from municipal solid waste should be recognized as renewable energy  resources. Ambiguous terminologies such as “old growth” are unnecessary,  redundant, and counterproductive when used to limit potentially available wood  biomass. There are abundant limitations in statute that restrict removals of  forest biomass from reserved forests.   Forests that aren’t reserved and may have potential for sustainable  biomass removals should be managed to do so.   Maximizing the procurable wood resource for energy within identified  tributary areas is of paramount importance to supply assurance, energy  investment, and biofuels production.  As  this investigation has shown, woody biomass contribution from all forest  ownerships will be required in most regions of the state if sufficient  resources are to be made available for the large-scale conversion facilities  needed to efficiently produce biofuels.   See Section I: 1.3.  Biomass and  energy – Terminologyand Section IV:  4.1. Obstacle 1 – access to the resource; Supply  assurance and Section IV: 4.2. Obstacle 2 – public perception; Social license and Forests; neither factory nor wilderness and How we think about forests and Section IV: 4.4. Obstacle 4 – Policy  and regulations; I-937 – Washington’s  defacto energy priority and Energy  Independence and Security Act of 2007 (EISA).
 
Recommendation: Arbitrary constraints that limit biomass  availability for renewable energy, such as appear in I-937, should be  revised.  If a cohesive strategy for  biomass supply assurance and utilization is not developed quickly, Washington  resources may be exported into other markets, like Oregon, where biofuels  development is further advanced.   Guidelines for slash removals
 
              Discussion: Existing  state forest practice rules did not anticipate increased interest in removals  of harvest residues.  Limiting factors  for consideration include soil productivity, water quality, biodiversity,  wildlife habitats, cultural values, forest health, and forest  sustainability.  In anticipation of an  increased demand for woody biomass, a number of states are developing  guidelines for removals of harvest residues.  See Section III: 3.3. Biomass from  forests – opportunities and benefits; Slash  recovery and Section IV: 4.1. Obstacle 1 – access to the resource; Guidelines for slash removals.
 
Recommendation: As evidenced by successes in other  states, forest biomass collection guidelines should be developed and  incorporated into Washington forest practice rules.   Integrated infrastructure and product hierarchies
 
              Discussion: The value of existing  forest industry investment in renewable energy production and the  cost-effective utilization of the wood resource must not be underestimated.  Higher use wood products such as solid  building materials underwrite the costs of biomass collection and provide  environmentally preferable product alternatives to steel and concrete. The  present policy paradigm (I-937) inadvertently prioritizes development of  small-scale inefficient distributed wood power generators that will waste the  resource, create undesirable competition for the least-expensive process  residuals, effectively undermine recovery of more costly forest residues, and  ultimately jeopardize the industrial infrastructure and employment base upon  which significant development of biofuels must depend.  See Section  III: 3.2. Woody biomass – material and process opportunities and Section IV:  4.1. Obstacle 1 – access to the resource and Section IV: 4.4. Obstacle 4 –  Policy and regulations; I-937 –  Washington’s defacto energy priority.
 
Recommendation: Biomass energy priorities should favor  liquid fuels conversions at integrated biorefineries that can optimize energy  yields through recovery of heat, electricity, and chemical byproducts.  As possible, biorefineries will be best sited  with pulp and paper mills.  State  investment in support of biorefinery development would be the most effective  biomass-to-energy approach for response to the three imperatives of climate  change mitigation, energy independence, and sustainability.   Conversion technology advancement
 
              Discussion: The technologies for  wood heating and combined heat and power systems are mature and implementable,  however, while conversion technologies for wood-to-liquid fuels, such as  ethanol, are technically feasible, no commercial-scale operations are yet  deployed. An important finding of this investigation has been that biomass  resources are finite and, when renewable energy alternatives from potentially  available resources are compared in the context of the three imperatives  (climate change mitigation, energy independence, and sustainability), liquid  fuels conversions emerge as the over-arching priority. It will be imperative  that the biomass resource is used prudently to maximize energy yields. Since  liquid fuels conversions will require large scale facilities, mixed feedstocks  from forests, fields, and cities may be needed to ensure that adequate biomass  volumes can be sustained. Additional biomass may become available from  dedicated energy crops once biorefineries become established. Conversion  strategies will need customization to accommodate local resource  availability.  For example, at sites  close to urban areas, mixtures of forest-derived materials and recovered wood  and paper from municipal solid waste may be attractive while in rural areas of  eastern Washington mixed feedstocks comprised of forest and agricultural  residues may make the most sense.  Where  inexpensive rail and water freight are available, biomass tributary areas can  be expanded to facilitate transport of diverse feedstocks to assure access to  adequate volumes of biomass.  An  ancillary benefit may also be increased and diversified raw material  availability for pulp and paper production as research at the University of  Washington into the potential use of grasses and other vegetative material for  paper products shows promise.  The  strategic economic benefits of captured process residues as an inexpensive  anchor feedstock with potential for bioenergy recovery augmented by addition of  more expensive recovered field residuals are discussed in this report and will  be important factors for consideration of conversion technology development  options. See Section I: 1.4. Wood-to-energy – conversion options and Section  III: 3.2. Woody Biomass – material and process opportunities and Section IV:  4.1. Obstacle 1 – access to the resource; Raw  materials. 
 
Recommendation: Continued  research investment to develop superior conversion technologies for liquid fuel  production from Washington biomass resources will help to identify advancements  that provide maximum energy yields at least costs.  Investment in a pilot project towards  development of a commercial integrated biorefinery is highly recommended as an  important next step. Research towards further development of mixed biomass  applications for liquid fuels conversions customized for effective exploitation  of locally available resources will be essential to assure sufficient raw  material availability and maximized energy yields.  Social license
 
              Discussion: As demonstrated by  our review of the scientific literature, failure to mitigate climate change,  reduce fossil fuel pollution, increase energy independence, and implement  practices to ensure forest sustainability will result in significant  environmental, social, and economic costs.   The public must be credibly assured that woody biomass produced from  Washington State forests is an environmentally sound and safe source of  renewable energy.  Educational outreach  and consensus building activities such as those undertaken by the University of  Washington through the Northwest Environmental Forum and the Olympic Natural  Resource Center have been successful at building stakeholder consensus in  support of sustainable forestry and wood biomass to energy.  Communication alliances also provide fertile  opportunity for cooperative interaction between stakeholders, scientists, and  State agency personnel. See Section IV: 4.2. Obstacle 2 – public perception  and Section IV: 4.5. Obstacle 5 – Research; Science  and education. 
 
Recommendation:These and other  programs that facilitate public education and dialogue towards consensus  solutions to contemporary resource and energy challenges are worthy of State  support. Green jobs
 
              Discussion: There is a growing  shortage of skilled forestry professionals in Washington.  Workforce challenges are an obstacle to  wood-for-energy development but remarkably, forestry is excluded from the State  “green jobs” program.  Management of  forest ecosystems with resultant production of “green” building products and  renewable energy feedstocks represents the single greatest State opportunity to  reduce both GHG emissions and imported fossil fuel reliance.  See Section IV: 4.1. Obstacle 1 – access  to the resource; The foresters, the  loggers, and the truckers and Section IV: 4.4 Obstacle 4 – Policy and  regulations; Green jobs.
 
Recommendation: We recommend that State leaders  acknowledge forest biomass-to-energy as a cornerstone element of a clean future  economy. State agencies should work with universities and community colleges to  establish training programs for forestry workers that cover the spectrum from  collection through conversion. Green building products
 
              Discussion: State programs for green  building have potential for beneficial change but only if rigorous assessment  methodologies for product comparisons such as life cycle assessment (LCA) and  net energy balance (NEB) are used to develop uniform performance standards.  Current programs rely upon arbitrary product standards that are not  scientifically supported.  Unintended  consequences include under-appreciation of the environmental benefits of  locally-grown renewable wood building products as compared to alternative  construction materials like steel or concrete. Failure to value wood as a green  building product undermines both the green building program and the viability  of the Washington wood industry and while jeopardizing the product value  hierarchy needed to support utilization of woody biomass for bioenergy.  See Section III: 3.4 Forests, products,  energy, and carbon; Life cycle assessment and Section IV: 4.4 Obstacle 4 –  Policy and regulations; Green building  standards.
 
Recommendation: Green building standards should be  revised to include product comparisons based upon rigorous  scientifically-supported performance standards such as LCA and NEB. Policy Guidance
 
              Discussion: We suggest that,  without a cohesive strategy for progress based upon targeted renewable energy  priorities, substantive improvements in climate change mitigation, energy  independence, and sustainability are unlikely to occur.  In lieu of a consistent science-based policy  framework, various regulatory mechanisms evolve in isolation with narrow  focus.  We find a number of  counterproductive contradictions in current policy framework that limit  potential for biofuels development.  As  example, consider I-937, the Western Climate Initiative (WCI), and the Energy  Independence and Security Act of 2007 (EISA).   I-937 is a State initiative that, in function, excludes portions of the  wood resource from use and directs the eligible biomass subset to small-scale  inefficient electric generators (rather than biorefineries) that could  undermine the viability of existing infrastructure and result in considerable  portions of the wood biomass resource left too isolated for recovery.  The WCI, a regional climate change mitigation  consortium of which Washington is a member, has evolved an elaborately complicated  cap and trade scheme that, given its priority to address the electric sector in  its first phase of implementation, is partially redundant to the renewable  portfolio standard established by I-937 and fails to address the State’s  largest emissions problem: transportation.   Based upon the experience of the European cap and trade program, we  conclude that WCI may also result in increased energy price volatility which  has been shown to discourage renewable energy investment.  EISA, on the other hand, was passed by the US  Congress to create a national renewable fuel standard based upon ambitious  additions of cellulosic ethanol capacity to be added by 2022.  WA has one-twentieth of the Nation’s forest  biomass inventory but current State prioritization of biomass-to-electricity  (I-937 and WCI) acts to undermine the EISA cellulosic ethanol target as well as  to compromise the State’s need to reduce greenhouse gas emissions and fuel  imports.  EISA, in apparent direct  conflict with its ambitious schedule for cellulosic ethanol expansion, excludes  wood from National Forests as eligible for conversion to renewable energy.  Yet two-thirds of the nation’s forest health  crisis is occurring on National Forests and in many areas of the west,  including Washington, wood biomass contribution from federal forests will be  necessary if cellulosic ethanol is to be produced. We find that current State  and national energy policies represent significant obstacles to wood-to-energy  in Washington. See Section IV: 4.4. Obstacle 4 –  Policy and regulations. 
 
Recommendation: Liquid transportation fuels, such as  ethanol, should be the State energy priority.   Formal scientific review of existing policies and potential policy  alternatives to examine barriers to wood for biofuels conversion is  recommended. Special attention should be given to I-937, WCI, and EISA. Interdisciplinary science support for energy policy  development
 
              Discussion: Washington’s  universities are home to many prestigious scientists, yet it is rare that  scientists of differing disciplines and from different research organizations  are asked to work together to develop integrated analysis of resource policy  alternatives.  See Section IV: 4.4.  Obstacle 4 – Policy and regulations. 
 
Recommendation: Sorely needed  is programmatic investment in sustained in-state interdisciplinary research to  assist policy makers and stakeholders in the development of realistic and  effective strategies to address the difficult and complex challenges of  renewable energy development and climate change mitigation.
 Research
 
            
              Discussion: The Government  Accountability Office reports that, in contrast to increasingly urgent national  calls for climate change mitigation and energy independence, US investments in  research have generally declined over the last thirty years.  In Washington, there is no programmatic  investment in sustained in-state interdisciplinary research to accelerate  development of renewable energy from wood biomass or to investigate the role of  sustainable forest management and wood products in climate change mitigation.  There is also no continuing state program to  enlist forest scientists in support of policy development or educational  outreach to stakeholder groups.  By contrast, the Oregon  Legislature created the Oregon Forest Resources Institute (OFRI) in 1991 to  improve public understanding of the state’s forest resources and to encourage  environmentally sound forest management. OFRI is funded by a dedicated harvest  tax on forest products producers.  Issues  include technical, economic, environmental, social, and moral questions that  require continued scholarly research but ultimately can only be resolved by an  informed political process.  The choices  ahead are difficult, expensive and long-lasting with implications for future  generations and forest ecosystems in Washington and around the world.  See Section IIV: 4.5. Obstacle 5 –  Research.
 
Recommendation: Our  analysis has revealed that a significant obstacle to wood utilization for  renewable energy in Washington is a lack of integrated understanding of many  complex issues that need serious consideration if progress towards climate  change mitigation, energy independence, and sustainability is to proceed.  We recommend that Washington establish a  permanent interdisciplinary program of research and outreach to address  emerging topics concerning biomass energy development with implications for the  environment and the economy as discussed in greater detail throughout this  report.
                
               We have prepared an  information-rich examination of many factors found to be related to development  of energy from wood biomass in Washington.   To the best of our knowledge, such a broad investigation has not  previously been conducted.  We find that,  to be most effective, wood energy policies must be examined in the context of  three over-arching imperatives that compel immediate attention: Climate Change Mitigation, Energy  Independence, and Sustainability. We conclude that, given these imperatives  for action and a national commitment to cellulosic ethanol, utilization of wood  for renewable transportation fuels should be the paramount priority.  Biorefineries co-located at pulp and paper  mills, offer the greatest opportunities for success. While utilization of the  wood resource for biofuels presents logistical and technical challenges, we  find that, when compared to other states that are already moving forward with  biofuels development, Washington’s abundant and productive forests should  provide superior opportunity.  However, a  lack of public focus hinders progress.  A  State commitment to development of a cohesive energy strategy supported by  interdisciplinary research to target priority objectives for achievement will  be needed to spur investment for Wood to Energy in Washington.  The most costly future outcome will result  from failure to proceed. |