FRA Biomass Harvests Webinar: August 17

FRA will host a one-hour webinar on Biomass Harvests: Realistic Demand and Operational Realities, with Brooks Mendell of Forisk Consulting and Dale Greene of the University of Georgia, Tuesday afternoon, August 17, at 3:00 PM (Eastern).

Thanks to the generous sponsorship of The Price Companies, we are able to offer this exceptional learning opportunity to FRA members at no charge ($50 for non-members).  We will be requesting all participants to respond to a brief on-line survey, evaluating the webinar.

For more information, and to register, please click here.

Never participated in a webinar?  Worried about system requirements?  Please visit http://fra.peachnewmedia.com/SystemCheck/ on the computer you would use to log in to the webinar to verify whether your web browser will support the webinar's requirements and to download (for free) the software that supports your participation.  (Still have technical questions?  Call Peach New Media technical support at 866-702-3278, or visit this webinar's technical support page.

We intend this webinar to be the first of many:  bringing educational content and informational updates to wood supply chain management people in a form that suits their schedules and convenience.

More on the August 17 webinar:  New bio-energy capacity announcements, shaped by changing federal and state incentives and by investor appetite, are exerting new forces on the forest inventory and on the forest product supply chain and harvesting infrastructure.  The emerging situation poses many questions, both for existing users of the forest resource and the new entrants.  How dependable are woody biomass demand projections?  What are the limitations of the forest resource, existing supply infrastructure, and the harvesting force?

Brooks Mendell, President of Forisk Consulting, will present his work on evaluating viability of announced new biomass capacity and project feasibility trends nationwide, both on a regional basis and by project type, as a means of assessing likely pressure on the resource and on specific biomass specifications.

Dale Greene, Professor at the University of Georgia's Warnell School, will report on operational limitations that harvesting contractors are confronting as the biomass supply chain develops and evaluate these limitations' impact on meeting the new demand.  He will also discuss adaptations that contractors and their customers are implementing to develop synergies with existing forest product demand.

Both presenters will introduce methods they are using as researchers under contract to the Wood Supply Research Institute for its Biomass Harvesting Project.

FRA thanks The Price Companies, Inc. for generously sponsoring this webinar.

New Member

We welcome new Consulting Firm member Mizelle's Safety Plus, Inc., of Nags Head, North Carolina.

Bright Notes for Fiber; Confusion for Housing

RISI's July International Woodfiber Report notes significant recovery in U.S. paper and board manufacturers for the first half of 2010, with wood fiber consumption up 8% during that period, compared to the (depressed) first half of 2009.  For the entire year 2010, RISI projects total domestic consumption of 216 million tons--a 9.5% gain over 2009 but still significantly below the "multi-year trend since 2000" of 231 million tons per year.  RISI reports continued growth, and another recent price increase, for containerboard producers, but points out that market pulp and "publication papers" have seen rebounds in both demand and prices.

Meanwhile, the home-building sector continues to send mixed signals.  On July 19, the National Association of Homebuilders reported a significant drop in its "monthly gauge of confidence"--its members' views on new-home sales prospects--to a figure of 14 (with a score of 50 being neutral), the lowest level since the bottom of the recession in April 2009.  This pessimistic view seems consistent with the Commerce Department's June 23 report of the surprisingly deep dip (32.7%) in new home sales following the expiration of the Homebuyers Tax Credit.  To add more fat to the fire, on July 20, the Commerce Department released a report showing a 5% dip in June housing starts, again exceeding economists' predictions of a 3.2% decline.  What is hard to explain is that--a day after NAHB had reported a drop in homebuilders' confidence--the Commerce report also noted a 2.3% rise in building permits for June, a signal the Wall Street Journal called a "sign of hope."

St. Francisville, LA Mill Reopening

In late June, it was reported that the paper mill formerly owned by Tembec, Inc. in St. Francisville, Louisiana--subsequently operated as Renew Paper and since April 2010 owned by Amzak Capital Management LLC--was scheduled to reopen in early July as  Kpaq Industries, LLC and that the Gloster, Mississippi chip mill that supplies it has been buying pine chips for it since mid-June.

Tembec ceased operations at the mill in July 2007 and sold it in April 2009; the mill did business briefly as Renew Paper but closed again in February 2010.  Amzak bought the mill and its 610-acre site at a bankruptcy court auction in April 2010.

2010 Sustainability Report

On July 1, the American Forest & Paper Association released its 2010 Sustainability Report, measuring the forest products industry's progress on key sustainability indicators, including rates of recycling, greenhouse gas emissions, use of renewable fuels, and sulfur dioxide emissions--finding improvements in all metrics.  AF&PA President Donna Harman noted, "The challenging economic conditions that became painfully apparent in 2008 and 2009 have had impacts on performance, most notably in the area of economic performance.  However, as the Report also shows, members have reacted to these challenges in proactive ways and continue to build on the strong progress already made to further improve sustainability performance for the future."

The Report indicated that, as of 2009, 63.4% of U.S. paper was recovered for recycling; that on an absolute basis, both direct and indirect greenhouse gas emissions at pulp, paper, and wood products facilities had declined over the year; that in 2008, pulp and paper mills had obtained 65% of their energy requirements from renewable sources, with this figure reaching 73.5% at wood products facilities; and that pulp and paper sulfur dioxide releases had declined by 14.6% since 2006.

The Report also notes that "paper mill and allied product" companies had made capital expenditures totaling $7.6 billion in 2006 and $6.3 billion in 2008; and that forest products exports grew by almost 50% between 2002 and 2008, from $18.2 billion to $27.1 billion in value.  More at this link.

Highway Bill: Grim Prognosis from ATA

In an interview published in the July 19 Transport Topics, American Trucking Associations President Bill Graves stated that he felt congressional dynamics would make it impossible for congress to take action on a new long-term Highway Bill--with multi-year funding and a reformed tax formula--until at least 2011 and possibly not until after the 2012 Presidential election.  "I just simply don't see a scenario where there's a vote on the floor of the House and the Senate and a signature by a president that's going to infuse a significant amount of new money into road and bridge construction," he stated.  "There are no champions who have the ability to move a majority of those in the House and the Senate and at the White House to get a reauthorization bill done."

Graves does not view the possible Republican takeover of one or both chambers of congress this November as a watershed event, in terms of moving the Highway Bill, in that the well-publicized Republican opposition to tax increases--he suggests--will stymie any attempt to adjust user fees, such as fuel taxes, to correlate revenues better with infrastructure wear.  Lacking federal leadership, Graves predicts, states may take infrastructure maintenance into their own hands, producing "a patchwork quilt system of roads and bridges in our country, and that's not good for interstate commerce."  He also noted the example of President Reagan, who--among all his tax cuts--advocated (and obtained) federal fuel tax increases in the 1980s.

To date, federal surface transportation funding has been supplied by a series of continuing resolutions, supplementing inadequate outlays from the previous Highway Bill's system of fuel and other taxes through drafts on general funds.  At present, a continuing resolution extends funding through the end of 2010.

New HOS Proposal: Hint of a Timetable

On June 23, the Federal Motor Carrier Safety Administration sent its new Hours Of Service proposal to the Department of Transportation's central office for review, according to information published in early July.  Following its review, DOT is then to send the proposal to the White House Office of Management and Budget for an additional assessment, prior to being released for public comment.  Publication for public comment is "likely" to occur in November of this year, according to DOT.

There is no indication of how this new rule may differ from the rule which DOT implemented six years ago, and defended through extensive litigation until its final approval in 2008, and some evidence that the new FMCSA head, Anne Ferro, had no enthusiasm for revisiting a rule that had proven to work well in practice.  However, reissuing--and, presumably, revising--the rule was a condition of Public Citizen's and other consumer advocates' dropping another legal challenge to the rule, and Senate leaders made the rule a highly visible issue during Ferro's confirmation hearings last year.

Pressure to Open LEED Standard

Following the June 15 release of the U.S. Green Building Council's fourth draft of its benchmarks to qualify forest certification systems for its well-known LEED ("Leadership in Energy and Environmental Design") building standard, several interests have weighed in on the benchmarks' parochial bias away from any certification but that of the Forest Stewardship Council.  The statement with the highest profile, so far, is a letter signed by 79 members of the U.S. House of Representatives, representing 35 states, to USGBC CEO Rick Fedrizzi, urging LEED to expand the benchmarks to recognize non-FSC programs.  "Broadening the number of eligible certification programs could stimulate the market for American produced wood products and the communities and jobs that depend on [them]," stated the letter.

The Sustainable Forestry Initiative points out that, in addition, ten U.S. governors, the Canadian Council of Forest Ministers, and several individual Provincial ministers have written to USGBC to show their support for a more inclusive benchmark; and several national green building standards, representing Canada, Japan, the United Kingdom, and Australia also reference SFI and other PEFC-affiliated standards, as does the International Green Construction Code (currently in draft form).  SFI has also delivered to USGBC the petition signed by nearly 6,000 stakeholders--including many FRA members--urging the inclusion of SFI and other credible standards.  More at www.sfiprogram.org/leed/.

Biomass in Massachusetts

We noted in our last issue that a pressure group calling itself Stop Spewing Carbon was promoting a ballot initiative in Massachusetts, calling on the state's Department of Energy Resources to disqualify forest biomass as a carbon-neutral feedstock within the state's renewable energy incentive programs.

In the meantime, on July 7, Massachusetts Secretary of Energy and Environmental Affairs Ian Bowles issued a letter directing DOER to promulgate regulations on the matter, with certain stipulations.  While the stipulations in the letter do not grant the specific ideological points that Stop Spewing Carbon has pointed to in its campaign, it places enough difficulties in front of biomass procurement as to raise costs prohibitively.  In any case, Stop Spewing Carbon regarded the letter as a victory for its position and withdrew its petition for a ballot initiative.  In our last issue, we had mentioned a forthcoming request for funds to fight the ballot initiative; since the ballot initiative has been withdrawn, that funding request will not go forth.

The American Forest & Paper Association has already submitted comments to the Massachusetts DOER on the Manomet Study, the controversial--and much misquoted--study that Secretary Bowles states is the basis behind the stipulations in the letter.  According to AF&PA, DOER is expected to complete a draft regulation to submit to the Secretary of Energy and Environment Affairs by September 1, with proposed final regulations available for review and comment by October 31.  AF&PA expects to remain engaged in the regulatory process and advises that a related funding request--as well as requests for affected firms' and associations' lobbying resources--may be forthcoming in that process.

EU Bans Import of Illegally Logged Timber

In early July, the European Parliament passed a law requiring companies operating in European Union countries to produce "chain of supply" documentation for any imported timber, proving legal title, beginning in 2012.  According to the BBC News account, the legislation replicates, to a large extent, measures found in the amendment to the Lacey Act the U.S. passed in 2008.  The BBC account indicates that the strongest initiative for the law came from Finland, which presumably felt the competition from illegal timber as a business viability issue; but the measure also obtained the endorsement of Greenpeace EU.

The law apparently delays implementation of "chain of supply" rules for "printed materials" for five years.

Truck Weight Coalition Name Change

AgTEC—representing the forestry and agricultural interest in pressing for increasing Gross Vehicle Weight limits for trucks on the Interstate system—has changed its name to AgHaul, using the long form Agriculture and Forestry Transportation Reform Coalition.  The Coalition's former name, the Agricultural Transportation Efficiency Coalition, was similar to that of the Agriculture Transportation Coalition (AgTC), and the similarity sometimes created confusion. As AgHaul Chairman Mike Branch puts it, "We anticipated a short-range, intensive campaign linked to the anticipated 2009 Highway Reauthorization Bill.  When it became clear that Reauthorization would delay into this year, and likely into 2011, it was necessary to clear up an infringement on another organization's intellectual property rights to a name similar to ours."

Although that delay has also delayed realizing the goal of truck weight reform, it has provided the opportunity to broaden support. Congressman Mike Michaud's (D-Maine) Safe and Efficient Transportation Act of 2009 (HR 1799) now has strong bipartisan cosponsorship, totaling 54, including 17 Representatives who serve on the House Transportation and Infrastructure Committee, and the test program in Maine and Vermont, monitoring the safety, road-wear, and environmental performance of heavier trucks on the Interstate system, has passed its six-month point, and an interim report is expected by summer's end.

The web site remains http://www.ag-haul.org/.

House Ag Committee Co-Sponsors Seeks Support for HR 1799

On June 30, nine members of the House Agriculture Committee who are co-sponsors of Rep. Mike Michaud's Safe and Efficient Transportation Act of 2009 (HR 1799), sent a "dear colleague" letter to the 35 members of the Committee who are not yet co-sponsors.  Led by Rep. Jean Schmidt (R-Ohio), who is an original co-sponsor, the signatories point out the special need the land-based industries have for efficient trucking, tick off the reasons HR 1799 is good public policy, cite appropriate research, and note the endorsement of nine agricultural associations--most of them AgHaul members. The Coalition for Transportation Productivity has posted the letter on its site.

Although House Agriculture Committee Chairman Collin Peterson (D-Minnesota) is a co-sponsor of HR 1799, his name does not appear as a signatory on the letter, presumably to avoid any appearance of undue pressure on Committee members.

ATA Updates "Trucking Safety Facts"

On June 3, the American Trucking Associations published an update of its one-pager "Trucking Safety Facts," downloadable at this link. It is a very useful and concise defense of the trucking industry's excellent and improving safety record, pointing out that the rapid increase in trucking volume over the past 20 years has been accompanied by a significant decline in fatal crashes; and reporting results of the respective culpability of trucks and passenger cars in accidents--for instance, "In fatal crashes involving a head-on collision between a large truck and a passenger vehicle, 81% of the time the passenger vehicle encroaches into the truck's lane." It also points out truck drivers' excellent record in complying with a "zero tolerance" policy for drug and alcohol abuse.

Western Governors Advocate Truck-Length Reform

In late June, the Western Governors Association (representing Governors of 19 Western states) passed a resolution urging Congress to allow interested states to create pilot programs to evaluate the benefits and costs of adding routes for longer combination vehicles--doubles and triples of various configurations--in the region.  Although we could wish that the Governors had spoken up for truck-weight reform at the same time, having this resolution on the record supports FRA's, and AgHaul's, broader goal of opening up dialogue about freight-shipping efficiency, ground-truthing the limitations of rail, and pushing back at just-say-no size-and-weight freeze proposals, such as that of Rep. James McGovern's (D-Massachusetts) Safe Highways and Infrastructure Preservation Act (HR 1618).

FRA Job Board

FRA's on-line Job Board connects employers and job seekers in industrial forestry and wood supply, as well as in relevant association and academic sectors.  Job seekers may post resumes and note their availability for free by registering at http://jobboard.forestresources.org/.  FRA-member employers may post positions available for $250 for 60 days of exposure; the price is $350 for non-members.  Visit http://jobboard.forestresources.org/ and follow the prompts through the system to learn more, or dial 888/491-8833, extension 1698, during business hours for technical support.

Current Positions Available

Procurement Forester
Temple-Inland has an opening for a Procurement Forester for the East Texas/Southwest Louisiana area. This position requires wood procurement and harvest supervision skills.

Purchasing Agent III
This position is primarily accountable to develop and implement sourcing plans to support the fiber requirements of the Jackson Wastepaper Recycling Facility. [Learn more!]

Upcoming Events, 2010

    * Aug. 17            WEBINAR Biomass Harvests: Realistic Demand and Operational Realities (3:00 PM Eastern)
    * Sept. 21-23       FRA Western Region Fall Meeting (Whitefish, MT)
    * Sept. 21-23       FRA Appalachian Region Fall Meeting & Timber Security Group (Flatwoods, WV)
    * Oct. 16-19         FRA Fall Board Meeting (Jackson, WY)
    * Oct. 21-22         FRA Southwide Forest Products Security Group (Pine Mountain, GA)
    * Oct. 26-27         FRA Lake States Region Fall Meeting (Duluth, MN)

   2011

    * March 1-3          FRA Joint Southeastern/Southcentral Region Spring Meetings/WSRI Annual Meeting (Panama City Beach, FL)
    * March 16-19      FRA Spring Board Meeting & Fly-In (Bethesda, MD)
    * May 19-21         In-Woods Expo 2011 (Hot Springs, AR)

RISI North American Forest Products Conference

RISI will hold its 25th North American Forest Products Conference October 6-8 in Boston, Massachusetts, including sessions on biomass and sustainability, a customer panel, and a CEO/Executive panel, as well as presentations of RISI's two-year forecasts for commodity markets.  Contact Jennifer Freitas, jfreitas@risi.com, 781-734-8949, or visit www.risi.com/naconf.

NEW!

Papers & Presentations

To view FRA's archive of Papers & Presentations, please CLICK HERE and examine archived documents year-by-year.  (Enter User ID "fra" and Password "reform" in the response box.) Adobe Acrobat Reader Required. Alternatively, members may order any Paper or Presentation from FRA's National Office for $2 apiece ($5 for non-members), using this Publications Order Form or by phoning FRA at 301/838-9385.

10-P-15  Lending to the Forest Products Industry (Lavan Dauberman)
Lavan Dauberman, Forest Products Specialist with Colonial Farm Credit, outlines how lenders to forest enterprises evaluate loan applicants' creditworthiness, with some pointers on the special conditions of the current economic environment.  Presented at the 2010 FRA Appalachian Region Joint Policy and Operations Committee Meeting, May 20, 2010 in Richmond, Virginia.

10-P-14  PNIF Perspective on Southern Plantation Forestry (Glenn Hughes)
Glenn Hughes, Extension Forestry Professor, Mississippi State University, discusses the operational realities private, non-industrial forest landowners in Mississippi face in the aftermath of Hurricane Katrina and how management may change in anticipation of more frequent extreme weather events. Presented at the 2010 FRA Southcentral Region Annual Meeting, May 5, 2010 in Biloxi, Mississippi.

10-P-13  Research Advances and Potential of Southern Plantation Forestry for Wood Products and Energy (Randall J. Rousseau)
Randall Rousseau, Associate Extension/Research Professor at Mississippi State University, discusses new paradigms in plantation management and species selection to optimize production for markets that include woody biomass consumers.  Includes discussion of dedicated short-rotation crops and agroforestry options.  Presented at the 2010 FRA Southcentral Region Annual Meeting, May 5, 2010 in Biloxi, Mississippi.

10-P-12  RISI Southern Forest Products Five-Year Forecast (Chris Lyddan)
Chris Lyddan, RISI's Director, Timber, and co-founder of RISI's International Woodfiber Report and Timberland Markets Report, reviews macro trends in Southern forest products demand, in the context of volatile government incentives and possible mandates, also noting trade pressures from China.  Presented at the 2010 FRA Southcentral Region Annual Meeting, May 5, 2010 in Biloxi, Mississippi.

10-P-11  Lessons Learned from Early Commercial Thinning Treatments in Maine Forests (Jeffrey Benjamin)
Jeffrey Benjamin, Assistant Professor - Forest Operations at the University of Maine's School of Forest Resources, discusses silvicultural and operating considerations in serving new biomass markets in Maine in the aftermath of the current recovery from the spruce budworm era of the ‘70s and ‘80s, discussing landowner objectives, access to markets, and harvesting equipment selection, as well as directions for future research.  The paper summarizes panelist presentations from FRA's Northeast Region Industrial Forestry Forum, May 13, 2010 in Bangor, Maine.

PREVIOUSLY ANNOUNCED

16th Report on the Status of Logger Training and Education Programs in the U.S. (10-A-3)
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Appalachian Hardwood Sawmill Residual Chip Availability 2002 through 2008:  An Update (10-A-2)
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Wood Chipper/Grinder Safety Video (09-A-7)
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FRA 2009-2010 Membership Directory (09-A-5)
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Safely Loading and Unloading Logging Equipment Brochure (09-A-4)
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Safe & Efficient Practices for Trucking Unmanufactured Forest Products (09-A-3)
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Improving Log Trucking Profitability Workshop (09-A-1)
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Log Loader Safety Video for Log Truck Operators (08-A-7)
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Load Securement for Logs Video (08-A-5)
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Skidder Safety and Efficiency Video (08-A-4)
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Appalachian Hardwood Sawmill Residual Chip Availability:  A Dual Perspective from Fiber-Based Mills and Hardwood Sawmills (08-A-3)
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Northern Forestry Aesthetics Workshop (08-A-1)
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FRA Members' Needs for Various Insurance Products (07-A-6)
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Membership Poster (07-A-4)
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Woodyard Safe Unloading (07-A-3)
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Annual Pulpwood Statistics 2005 (06-A-7)
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Timber Harvesting Deck Safety Video (06-A-6)
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Wood Fiber Supply Chain Relationships Workshop Video (06-A-5)
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(English-Spanish) Timber Harvesting Safety Manual (06-A-4)
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Summary Report:  Logging Equipment Maintenance Surveys (06-A-3)
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So Now You're the Chair of a Forest Resources Association Committee (06-A-1)
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Quality Chips Make A Difference! (05-A-8)
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Wood Roads Safety Video (05-A-6)
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Best Business Practices for Loggers (05-A-4)
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Transportation Regulations Booklet for the Forest Products Industry (05-A-3)
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Garage Site Safety Manual (04-A-3)
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Coaching the Professional Logger Video (04-A-1)
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Hazardous Chemical Spill Prevention and Control for Logging Operations Video (01-A-11)
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Timber Harvesting Safety (01-A-9)
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The Cutting Edge of Safety video + guide (01-A-4)
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Safe Site Preparation Procedures (00-A-10)
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Forestry Guide for Non Foresters in the Southeast (99-A-15)
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