Financial Incentives and Benefits, Access to an Affordable Supply, and Environmental Benefits Facilitated the Use of Woody Biomass among Users We Reviewed

The users in our review cited several factors contributing to their use of  woody biomass. Financial Incentives and Benefits Encouraged Woody Biomass Use by Several Users

Financial incentives for, and benefits from, using woody biomass were the  primary factors for its use among several users we reviewed. The Montana  school district also received ongoing financial assistance from a nearby  nonprofit organization. Challenges Faced by Woody Biomass Users Included Inadequate Supply and Costs Associated with Handling and Using the Material

Users in our review experienced several factors that limited their use of  woody biomass or made it more difficult or expensive to use. These  factors included an insufficient supply of the material and increased costs  related to equipment and maintenance. Two power plants reported to us that they were  operating at about 60 percent of their capacity because they were unable  to obtain sufficient woody biomass or other fuel for their plants. Wood utilization  also increased operation and maintenance costs for some users, in some  cases because of problems associated with handling wood. Current Users’ Experiences Offer Insights for Government Efforts to Expand the Use of Woody Biomass

Our findings offer several insights for promoting greater use of woody  biomass. First, rather than helping to defray the costs of forest thinning,  attempts to encourage the use of woody biomass may instead stimulate  the use of other wood materials such as mill residues or commercial  logging slash. Market Forces May Lead Wood Users to Forgo Small-Diameter Trees in Favor of Alternatives

Unless efforts to stimulate woody biomass utilization are focused on  small-diameter trees and other material contributing to the risk of  wildland fire, such efforts may simply increase the use of alternative wood  materials (such as mill residues) or slash from commercial logging  operations. In fact, several users told us that they prefer such materials  because they are cheaper or easier to use than woody biomass. The Effectiveness of Efforts to Encourage Woody Biomass Use May Depend on the Presence of Other Wood-Related Industries

Government activities may be more effective in stimulating woody  biomass use if they take into account the extent to which a logging and  milling infrastructure is in place in potential users’ locations. The  availability of an affordable supply of woody biomass depends to a  significant degree on the presence of a local logging and milling  infrastructure to collect and process forest materials. Efforts to Encourage Woody Biomass Use May Be More Effective If They Are Tailored to the Scale and Nature of Recipients’ Use

Government activities may be more effective in stimulating woody  biomass use if their efforts are tailored to the scale and nature of the users  being targeted. This is a work of the U.S. government and is not subject to copyright protection in the  United States.
Why GAO Did This Study

The federal government is placing greater emphasis on thinning vegetation on public lands to reduce the risk of wildland fire. To help defray the cost of thinning efforts, it also is seeking to stimulate a market for the resulting material, including the smaller trees, limbs, and brush--referred to as woody biomass--that traditionally have had little or no commercial value. As GAO has reported in the past, the increased use of woody biomass faces obstacles, including the high cost of harvesting and transporting it and an unpredictable supply in some locations. Nevertheless, some entities, such as schools and businesses, are utilizing the material, potentially offering insights for broadening its use. GAO agreed to (1) identify key factors facilitating the use of woody biomass among selected users, (2) identify challenges these users have faced in using woody biomass, and (3) discuss any insights that these findings may offer for promoting greater use of woody biomass. This testimony is based on GAO's report Natural Resources: Woody Biomass Users' Experiences Offer Insights for Government Efforts Aimed at Promoting Its Use (GAO-06-336).

What GAO Found

Financial incentives and benefits associated with using woody biomass were the primary factors facilitating its use among the 13 users GAO reviewed. Four users received financial assistance (such as state or federal grants) to begin their use of woody biomass, three received ongoing financial support related to its use, and several reported energy cost savings over fossil fuels. Using woody biomass also was attractive to some users because it was available, affordable, and environmentally beneficial. Several users GAO reviewed, however, cited challenges in using woody biomass, such as difficulty obtaining a sufficient supply of the material. For example, two power plants reported running at about 60 percent of capacity because they could not obtain enough material. Some users also reported that they had difficulty obtaining woody biomass from federal lands, instead relying on woody biomass from private lands or on alternatives such as sawmill residues. Some users also cited increased equipment and maintenance costs associated with using the material. The experiences of the 13 users offer several important insights for the federal government to consider as it attempts to promote greater use of woody biomass. First, if not appropriately designed, efforts to encourage its use may simply stimulate the use of sawmill residues or other alternative wood materials, which some users stated are cheaper or easier to use than woody biomass. Second, the lack of a local logging and milling infrastructure to collect and process forest materials may limit the availability of woody biomass; thus, government activities may be more effective in stimulating its use if they take into account the extent of infrastructure in place. Similarly, government activities such as awarding grants or supplying woody biomass may stimulate its use more effectively if they are tailored to the scale and nature of the targeted users. However, agencies must remain alert to potential unintended ecological consequences of their efforts, such as excessive thinning to meet demand for woody biomass.