Working Forests in National Climate Change and Renewable Energy Policy

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Working Forests inNational Climate Changeand
Renewable Energy Policy
Dave Tenny President and CEO National Alliance of
Forest Owners
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Working Forests in National Climate Change and
Renewable Energy Policy
National Alliance of Forest Owners www.nafoallianc
e.org

• Membership
• 26 Member Companies
• 22 Association Members
• 75 Million Acres
• 47 States

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Working Forests in National Climate Change and
Renewable Energy Policy

• NAFOs Mission
• NAFO is dedicated to protecting and enhancing the
  economic and environmental value of privately
  owned forests through targeted policy advocacy at
  the national level.

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Working Forests in National Climate Change and
Renewable Energy Policy
Its All About Working Forests Working forests
are a vital part of the nations strategic
natural resource infrastructure. Sustaining and
enhancing the value of these forests both to
society and to forest owners is of vital national
importance. Working Forests Workshop, December
12, 2008, Chicago, IL.
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Working Forests in National Climate Change and
Renewable Energy Policy

• Working Forests Need Markets
• (and vice versa)
• Markets maintain working forests on the landscape
• A stable forest land base keeps markets viable
• Markets must increase net present value of the
  forest
• Regulations that reduce NPV by foreclosing or
  pre-empting markets destabilize the forest land
  base

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Working Forests in National Climate Change and
Renewable Energy Policy

• Working Forests Make Significant Contributions to
  the Economy

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Working Forests in National Climate Change and
Renewable Energy Policy
Economic Impacts of Working Forests
Northeast Main New Hampshire New
York Vermont Appalachia Kentucky Maryland Ohio Pe
nnsylvania West Virginia
South Alabama Arkansas Florida Georgia Louisiana M
ississippi North Carolina Oklahoma South
Carolina Tennessee Texas Virginia
Upper Midwest Michigan Minnesota Wisconsin Northw
est California Idaho Montana Oregon Washington
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Working Forests in National Climate Change and
Renewable Energy Policy
Economic Impacts of Working Forests (29 states)

• 235 billion in sales from forests and forest
  related industries
• 2.5 million direct, indirect and induced jobs
• 86.9 billion payroll for direct, indirect and
  induced jobs
• 102 billion total contribution to GDP (1.06)

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Working Forests in National Climate Change and
Renewable Energy Policy

• Working Forests Matter in
• National Renewable Energy Policy.

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Working Forests in National Climate Change and
Renewable Energy Policy
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Working Forests in National Climate Change and
Renewable Energy Policy

• Senate Renewable Electricity Standard

Source Energy Information Administration
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Working Forests in National Climate Change and
Renewable Energy Policy

• Solar Energy Potential in the U.S.

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Working Forests in National Climate Change and
Renewable Energy Policy

• Wind Energy Potential in the U.S.

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Working Forests in National Climate Change and
Renewable Energy Policy

• Working Forests Matter in
• National Climate Change Policy.

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Working Forests in National Climate Change and
Renewable Energy Policy

• Carbon Offset Benefits of Working Forests
• U.S. forests sequester 200 million metric tons of
  carbon each year
• 84 of the carbon sequestered by all land uses,
• 10 of annual U.S. fossil fuel emissions.
  (USEPA, Birdsey)
• U.S. forest products store the equivalent of
  removing more than 100 million tons of CO2 from
  the atmosphere every year. (USEPA)
• Trees and products from intensively managed
  forests can sequester and store 150 more tons of
  carbon per acre than less intensively managed
  forests (James, Krumland and Eckert)

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Working Forests in National Climate Change and
Renewable Energy Policy

• GHG Mitigation Benefits of Working Forests
• Wood framing in a home produces 26 less net CO2
  emissions than steel and 31 less than concrete.
  (CORRIM)
• Every BTU of gasoline replaced by cellulosic
  ethanol from sources like wood reduces total
  lifecycle GHG emissions by 92.7 percent. (USEPA)
• Renewable energy from sustainably managed forests
  is internationally recognized as carbon neutral.
  (USEPA, IPCC)

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Working Forests in National Climate Change and
Renewable Energy Policy

• Unprecedented Opportunity
• vs.
• Unprecedented Risk

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Working Forests in National Climate Change and
Renewable Energy Policy

• Opportunities
• New markets (carbon offsets/energy)
• Investment in the resource
• Stable or growing forest land base

Caveat Opportunities are emerging and still
speculative
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Working Forests in National Climate Change and
Renewable Energy Policy

• Risks
• Federal regulation of private forests (ecological
  sustainability)
• Federal market allocations (economic
  sustainability)
• Loss of carbon neutrality presumption for biomass
  energy
• Unstable or shrinking forest land base

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Working Forests in National Climate Change and
Renewable Energy Policy

• RFS Definition of Eligible Forest Biomass
• (Buckets)
• RENEWABLE BIOMASS.The term renewable biomass
  means each of the following
• (ii) Planted trees and tree residue from
  actively managed tree plantations on non-federal
  land cleared at any time prior to enactment of
  this sentence...
• (iv) Slash and pre-commercial thinnings that are
  from non-federal forestlandsbut not forests or
  forestlands that are ecological communities with
  a global or State ranking of critically
  imperiled, imperiled, or rareold growth forest,
  or late successional forest.

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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Georgia Timberland without RFS
Definition 23 Million Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Georgia Timberland with RFS
Definition 7.3 Million Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Arkansas Timberland without RFS
Definition 18 Million Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Arkansas Timberland with RFS
Definition 3 Million Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Maine Forest Land without RFS
Definition 17 Million Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Eligible Maine Forest Land with RFS
Definition 360,000 Acres
Source USDA Forest Service - Forest Inventory
and Analysis National Program
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Working Forests in National Climate Change and
Renewable Energy Policy
Merkley Amendment to Kerry-Boxer (Buckets Plus
Sideboards) Renewable Biomass The term
renewable biomass means (II) other plants and
trees harvested from land that (bb) is, at the
time of harvest, managed in accordance with state
sustainable management practicesapproved by the
Secretary and (AA) was, as of January 1,
2009, planted forest land (BB) is forest land
planted to restore a native forest type
or (CC) is naturally regenerating forest land
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Working Forests in National Climate Change and
Renewable Energy Policy
Merkley Amendment to Kerry-Boxer (contd) (b)
Requirements In developing State sustainable
management practices, the State forester shall
ensure that the practices contain standards that
(1) avoid conversion of land from (A)
forested to non-forested land (B) native
tonon-native forest types (2) are consistent
with relevant Federal and state laws that (A)
protect against deterioration of water quality,
soil productivity, wildlife habitat and
biodiversity and (B) provide for regeneration of
the forest
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Working Forests in National Climate Change and
Renewable Energy Policy
Merkley Amendment to Kerry-Boxer (contd) (e)
Preapproval of Sustainable Management Practices
(1) In General In addition to reviewing
State sustainable management practices the
Secretary may develop a list of preapproved
sustainable management practices if the Secretary
determines that those practices meet the
requirements of this section. (2) Inclusions
The preapproved list of practices may
include (A) an existing third party-audited
forest certification program (B) relevant state
laws, regulations or guidelines related to
biomass harvesting
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Working Forests in National Climate Change and
Renewable Energy Policy

• Effects of Buckets/Sideboards
• Beginning of federal forest practices act
• Increase in complexity and cost of operations
• Litigation exposure
• Loss of carbon neutrality of biomass energy
• Loss of market opportunities (energy, carbon,
  ecosystem services)
• Loss of forest land base

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Working Forests in National Climate Change and
Renewable Energy Policy

• Keys to renewable energy policy
• Broad renewable biomass definitions
• Maintain carbon neutrality for biomass energy
• Avoid federal forest practices act

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Working Forests in National Climate Change and
Renewable Energy Policy

• Keys to climate change offset policy
• Forests not regulated under the cap
• Early participation of managed forests and forest
  products in federal offsets
• Strong role for USDA

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Working Forests in National Climate Change and
Renewable Energy Policy
Whats next?

• Senate legislation will be deferred
• Focus on implementation of existing policy
  (BCAP/RFS)
• EPA will attempt to regulate GHGs
• Climate change policies embedded in federal
  programs (e.g. USDA/DOI/DOE)

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Working Forests in National Climate Change and
Renewable Energy Policy

• Concluding Thoughts
• Both the opportunities and risks associated with
  federal climate and energy policy are real and
  unprecedented.
• The opportunity exists for new markets to help
  maintain a stable or growing land base.
• The risk exists in regulatory costs that
  destabilize and reduce the land base.
• Which prevails depends on whether policies
  improve or discount the value of working forests

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Working Forests in National Climate Change and
Renewable Energy Policy

• Thank You
• www.nafoalliance.org