In such situations, mechanical treatments are required, generating  large amounts of wood—particularly small-diameter trees, limbs, brush,  and other material that serve as fuel for wildland fires. Most Woody Biomass Utilization Activities Are Implemented by the Departments of Agriculture, Energy, and the Interior and Include Grants, Research, and Education

Most of the federal government’s woody biomass utilization efforts are  being undertaken by USDA, DOE, and Interior. Forest Service researchers are conducting research into a variety of  woody biomass issues. DOE Is Engaged Primarily in Biomass Research and Development Activities

Most of DOE’s woody biomass activities are overseen by its Office of the  Biomass Program and focus primarily on research and development,  although the department does have some grant and technical assistance  activities. Three other  agencies—the National Science Foundation, Office of Science and  Technology Development, and Office of the Federal Environmental  Executive—also are involved in woody biomass activities through their  membership on the Biomass Research and Development Board, which is  responsible for coordinating federal activities for the purpose of  promoting the use of biobased industrial products. Woody Biomass Coordination Efforts among and within Federal Agencies Include Both Formal and Informal Mechanisms, and the Forest Service, DOE, and Interior Have Assigned Responsibility for Overseeing Woody Biomass Activities

Two groups serve as formal vehicles for coordinating federal agency  activities related to woody biomass utilization. The Forest Service—the USDA agency with the most woody biomass  activities—developed a woody biomass policy in January 2005, and, in  March 2005, in response to a recommendation in our draft report, the  agency assigned responsibility for overseeing and coordinating its woody  biomass activities to an official within the Forest Service’s Forest  Management branch. DOE coordinates its woody biomass utilization activities through its Office  of Energy Efficiency and Renewable Energy. Most Officials Cited Economic Obstacles to Woody Biomass Utilization, and While Agencies Generally Targeted These Obstacles, Some Officials Believe Additional Steps beyond the Agencies’ Authority Are Needed

Agency officials cited two principal obstacles to increasing the use of  woody biomass: the difficulty in using woody biomass cost-effectively and  the lack of a reliable supply of the material. Agency activities are generally  targeted toward the obstacles identified by agency officials, but some  officials told us that their agencies are limited in their ability to fully  address these obstacles and that additional steps beyond the agencies’  authority to implement are needed. According to several officials, the obstacles to using woody biomass cost- effectively are simply too great to overcome by using the tools—grants,  outreach and education, and so forth—currently at the agencies’ disposal. Rather than incentives or subsidies, some officials noted the  potential for increased use of woody biomass through state  requirements—known as renewable portfolio standards—that utilities  procure or generate a portion of their electricity by using renewable  resources, which could include woody biomass. Further, not all agree that the market  for woody biomass should be expanded.
Why GAO Did This Study

In an effort to reduce the risk of wildland fires, many federal land managers--including the Forest Service and the Bureau of Land Management--are placing greater emphasis on thinning forests and rangelands to help reduce the buildup of potentially hazardous fuels. These thinning efforts generate considerable quantities of woody material, including many smaller trees, limbs, and brush--referred to as woody biomass--that currently have little or no commercial value. GAO was asked to determine (1) which federal agencies are involved in efforts to promote the use of woody biomass, and the actions they are undertaking; (2) how these agencies coordinate their activities; and (3) what the agencies see as obstacles to increasing the use of woody biomass, and the extent to which they are addressing the obstacles. This testimony is based on GAO's report Natural Resources: Federal Agencies Are Engaged in Various Efforts to Promote the Utilization of Woody Biomass, but Significant Obstacles to Its Use Remain (GAO- 05-373), being released today.

What GAO Found

Most woody biomass utilization activities are implemented by the Departments of Agriculture (USDA), Energy (DOE), and the Interior and include awarding grants to businesses, schools, Indian tribes, and others; conducting research; and providing education. Most of USDA's woody biomass utilization activities are undertaken by the Forest Service and include grants for woody biomass utilization, research into the use of woody biomass in wood products, and education on potential uses for woody biomass. DOE's woody biomass activities focus on research into using the material for renewable energy, while Interior's efforts consist primarily of education and outreach. Other agencies also provide technical assistance or fund research activities. Federal agencies coordinate their woody biomass activities through formal and informal mechanisms. Although the agencies have established two interagency groups to coordinate their activities, most officials we spoke with emphasized informal communication--through e-mails, participation in conferences, and other means--as the primary vehicle for interagency coordination. Internally, DOE coordinates its woody biomass activities through its Office of Energy Efficiency and Renewable Energy, while Interior and the Forest Service--the USDA agency with the most woody biomass activities--have appointed officials to oversee, and have issued guidance on, their woody biomass activities. The obstacles to using woody biomass cited most often by agency officials were the difficulty of using woody biomass cost-effectively and the lack of a reliable supply of the material; agency activities generally are targeted toward addressing these obstacles. Some officials told us their agencies are limited in their ability to address these obstacles and that incentives--such as subsidies and tax credits--beyond the agencies' authority are needed. However, others disagreed with this approach for a variety of reasons, including the concern that expanding the market for woody biomass could lead to adverse ecological consequences if the demand for woody biomass leads to excessive thinning.