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, primarily financial incentives and benefits but also other  factors such as an affordable supply of woody biomass and environmental  considerations. Financial incentives encouraging the use of woody biomass  included financial assistance, while financial benefits included energy cost  savings from using woody biomass in place of other fuels. Two  users were unable to obtain a sufficient supply of woody biomass, and  several more told us they had difficulty obtaining the material from federal  lands. The lack of supply from federal lands was a commonly expressed concern  among the woody biomass users on the West Coast and in the Rocky  Mountain region, with five of the seven users we reviewed in these regions  (including one of the power plants running at about 60 percent capacity)  telling us they had difficulty obtaining supply from federal lands. In such cases, users  obtained woody biomass from state or private lands, or relied on  alternative wood materials such as sawmill residues or urban wood waste. 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

One goal of the federal government’s efforts to stimulate woody biomass  use is to defray the cost to the government of thinning millions of acres of  land at risk of wildland fire by creating a market for the resulting materials. 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. Agency Comments and Our Evaluation

We provided a draft of this report to the Secretaries of Agriculture, Energy,  and the Interior for review and comment. The departments generally  agreed with our findings and provided technical comments that were  incorporated into this report, as appropriate. Objectives, Scope, and Methodology

The objectives of our review were 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 the insights our  findings offer for promoting greater use of woody biomass.
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. In responding to a draft of this report, the Departments of Agriculture, Energy, and the Interior all generally agreed with GAO's findings.

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.