Natural Resources: Federal Agencies Are Engaged in Numerous Woody
Biomass Utilization Activities, but Significant Obstacles May
Impede Their Efforts (24-MAY-05, GAO-05-741T).
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.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-05-741T
ACCNO: A24998
TITLE: Natural Resources: Federal Agencies Are Engaged in
Numerous Woody Biomass Utilization Activities, but Significant
Obstacles May Impede Their Efforts
DATE: 05/24/2005
SUBJECT: Energy
Forest management
Forest products
Interagency relations
Intergovernmental relations
Land management
Policy evaluation
Research and development
Research programs
Strategic planning
National Fire Plan
******************************************************************
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GAO-05-741T
United States Government Accountability Office
GAO Testimony
Before the Subcommittee on Forests and Forest Health, Committee on
Resources, House of Representatives
For Release on Delivery
Expected at 2:00 p.m. EDT NATURAL RESOURCES
Tuesday, May 24, 2005
Federal Agencies Are Engaged in Numerous Woody Biomass Utilization Activities,
but Significant Obstacles May Impede Their Efforts
Statement of Robin M. Nazzaro, Director Natural Resources and Environment
GAO-05-741T
[IMG]
May 24, 2005
NATURAL RESOURCES
Federal Agencies Are Engaged in Numerous Woody Biomass Utilization Activities,
but Significant Obstacles May Impede Their Efforts
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.
Kiosk Constructed from Small-Diameter Wood
Source: Forest Service.
United States Government Accountability Office
Mr. Chairman and Members of the Subcommittee:
I am pleased to be here today to discuss federal agency efforts to
increase the utilization of woody biomass. As you know, federal land
management agencies-including the Forest Service in the Department of
Agriculture (USDA) and the Bureau of Land Management (BLM) in the
Department of the Interior-continue to focus on the threat that wildland
fire poses to our nation's communities and ecosystems. In addressing this
threat, agencies are placing greater emphasis on thinning forests and
rangelands to help reduce the buildup of potentially hazardous fuels.
These thinning efforts will generate considerable quantities of woody
material, including some larger trees that are commercially valuable
timber and many smaller trees, limbs, and brush that generally have little
or no commercial value today. This low commercial value material is often
referred to as woody biomass.1
Unlike commercial timber, this material typically has been piled and
burned, left in the forest, or deposited in landfills because there is
often little or no demand for it. Some industries make use of this woody
biomass, however-for example, by burning it to generate electricity or
turning it into products such as road signs or animal bedding. Using woody
biomass in these and other ways can have several beneficial side effects,
including stimulating local economies and potentially facilitating fuel
reduction efforts by creating a demand for thinned material. However, the
cost of harvesting and transporting the material, combined with the
relatively low value of the products produced, has meant that woody
biomass has not been widely utilized.
My testimony today summarizes the findings of our report being released
today that discusses federal agency activities to promote woody biomass
utilization, agency efforts to coordinate their activities, and the
primary obstacles that agencies believe are standing in the way of
increased woody biomass utilization.2 This report is based on our
interviews of officials
1Although biomass can be considered any sort of organic material-including
trees, grasses, agricultural crops, and animal wastes-the term "woody
biomass" in this testimony refers to small-diameter trees and other
traditionally noncommercial material cut as part of thinning, harvesting,
or other activities on forests or rangelands. The term "woody" is used to
distinguish this material from agricultural biomass, such as corn stalks
or sugar cane residue.
2GAO, 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 (Washington, D.C.: May 13, 2005).
Summary
from a wide range of federal and nonfederal organizations, including the
Departments of Agriculture, Commerce, Energy, the Interior, and
Transportation, as well as various agencies within these departments;
state governments; Indian tribes; environmental organizations; academia;
and others. We also reviewed agency documents, federal and nonfederal
studies of woody biomass utilization issues, and pertinent laws and other
documents.
Most woody biomass utilization activities within the federal government
are being undertaken by USDA, the Department of Energy (DOE), and the
Department of the Interior and include awarding grants to businesses,
schools, Indian tribes, and others; conducting research; and providing
education and outreach. Some of these activities involve multiagency
efforts-for example, the three departments signed an agreement in 2003 to
support the utilization of woody biomass, and USDA and DOE jointly award
grants for biomass research and development. Each department also carries
out its own activities.
Federal agency efforts to coordinate their woody biomass utilization
activities, both among and within agencies, occur through both formal and
informal mechanisms. Although the departments have established an
interagency group to coordinate their activities, most agency officials we
spoke with emphasized informal communication-such as telephone
discussions, e-mails, participation in conferences, and other means-
rather than this group as the primary vehicle for interagency
coordination. Regarding internal woody biomass activities, DOE coordinates
its activities through its Office of Energy Efficiency and Renewable
Energy, while both Interior and the Forest Service-the USDA agency with
the most woody biomass activities-have appointed officials to oversee
their woody biomass activities and have issued guidance on these
activities.
Agency officials cited two principal obstacles to increasing the use of
woody biomass: the inherent difficulty in using woody biomass
costeffectively, in large part because of the relatively high costs of
harvesting and transporting it, and the lack of a reliable supply of the
material. And although agency activities are generally targeted toward
these obstacles and others identified by agency officials, some officials
told us that additional steps that are beyond the agencies' authority to
implement- such as subsidies or tax credits to offset the costs involved
in using woody biomass-are needed. Other officials disagreed with this
view, however, stating that neither subsidies nor tax credits were
appropriate mechanisms for promoting the use of woody biomass and that
such incentives could
Background
have adverse, unintended consequences on the ecological health of the
national forests.
The Forest Service and Interior collectively manage about 700 million
acres of federal land, much of which is considered to be at high risk of
fire. Federal researchers estimate that from 90 million to 200 million
acres of federal lands in the contiguous United States are at an elevated
risk of fire because of abnormally dense accumulations of vegetation, and
that these conditions also exist on many nonfederal lands. Addressing this
fire risk has become a priority for the federal government, which in
recent years has significantly increased funding for fuels reduction.
Fuels reduction is generally done through prescribed burning, in which
fires are deliberately lit in order to burn excess vegetation, and
mechanical treatments, in which mechanical equipment is used to cut
vegetation.
Although prescribed burning is generally less expensive on a per-acre
basis than mechanical treatment, prescribed fire may not always be the
most appropriate method for accomplishing land management objectives-and
in many locations it is not an option, because of concerns about smoke
pollution, for example, or because vegetation is so dense that agency
officials fear a prescribed fire could escape and burn out of control. 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.3
Woody biomass can be used in many ways. Small logs can be peeled and used
as fence posts, or can be joined together with specialized hardware to
construct pole-frame buildings. Trees also can be milled into structural
lumber or made into other wood products, such as furniture, flooring, and
paneling. Woody biomass also can be chipped for use in paper pulp
production and for other uses-for example, a New Mexico company combines
juniper chips with plastic to create a composite material used to make
road signs-and can be converted into other products such as
3Fuel reduction efforts are not the only source of this material. Woody
biomass can result from a variety of activities related to improving or
maintaining forest and rangeland health, as well as forest management
activities such as timber harvests. Further, according to Forest Service
officials and others, millions of acres of pine trees in the southeastern
United States face a depressed market because of the closure of pulp
mills. These trees thus constitute another potential source of woody
biomass.
ethanol and adhesives. Finally, woody biomass can be chipped or ground for
energy production in power plants and other applications.
Citing biomass's potential to serve as a source of electricity, fuel,
chemicals, and other materials, the President and the Congress have
encouraged federal activities regarding biomass utilization-but until
recently, woody biomass received relatively little emphasis. Major
congressional direction includes the Biomass Research and Development Act
of 2000, the Farm Security and Rural Investment Act of 2002, the Healthy
Forests Restoration Act of 2003, and the American Jobs Creation Act of
2004. Utilization of woody biomass also is emphasized in the federal
government's National Fire Plan, a strategy for planning and implementing
agency activities related to wildland fire management. For example, a
National Fire Plan strategy document cites biomass utilization as one of
its guiding principles, recommending that the agencies "employ all
appropriate means to stimulate industries that will utilize small-diameter
woody material resulting from hazardous fuel reduction activities."4
Federal agencies also are carrying out research concerning the utilization
of small-diameter wood products as part of the Healthy Forests Initiative,
the administration's initiative for wildland fire prevention.
Most of the federal government's woody biomass utilization efforts are
being undertaken by USDA, DOE, and Interior. While some activities are
performed jointly, each department also conducts its own activities, which
generally involve grants for small-scale woody biomass projects; research
on woody biomass uses; and education, outreach, and technical assistance
aimed at woody biomass users.
4Departments of Agriculture and the Interior and the Western Governors'
Association, A Collaborative Approach for Reducing Wildland Fire Risks to
Communities and the Environment: A 10-Year Comprehensive Strategy
(Washington, D.C.; August 2001).
Most Woody Biomass Utilization Activities Are Implemented by the
Departments of Agriculture, Energy, and the Interior and Include Grants,
Research, and Education
Some Woody Biomass Activities Are Performed Jointly by Multiple Agencies
USDA, DOE, and Interior have undertaken a number of joint efforts related
to woody biomass. In June 2003, the three departments signed a memorandum
of understanding on woody biomass utilization, and the departments
sponsored a 3-day conference on woody biomass in January 2004. The
departments also have established an interagency Woody Biomass Utilization
Group, which meets quarterly to discuss relevant developments and to
coordinate departmental efforts.
Another interdepartmental collaboration effort is the Joint Biomass
Research and Development Initiative, a grant program conducted by USDA and
DOE and authorized under the Biomass Research and Development Act of 2000.
The program provides funds for research on biobased products. DOE also has
collaborated with both USDA and BLM on assessment of biomass availability,
while USDA and Interior have entered into a cooperative agreement with the
National Association of Conservation Districts to promote woody biomass
utilization.5
USDA, DOE, and Interior also participate in joint activities at the field
level. For example, DOE's National Renewable Energy Laboratory (NREL) and
the Forest Service have collaborated in developing and demonstrating small
power generators that use woody biomass for fuel. The Forest Service also
collaborates with Interior in funding and awarding grants under the Fuels
Utilization and Marketing program, which targets woody biomass utilization
efforts in the Pacific Northwest. The agencies also collaborate with state
and local governments to promote the use of woody biomass-for example, the
Forest Service, NREL, and BLM entered into a memorandum of understanding
with Jefferson County, Colorado, to study the feasibility of developing an
electricity-generating facility that would use woody biomass.
5The National Association of Conservation Districts is a nonprofit
organization that represents the nation's 3,000 conservation
districts-local units of government established under state law to carry
out natural resource management programs at the local level.
USDA's Efforts Related to Woody Biomass Utilization Are Concentrated in
the Forest Service, with Some Efforts Under Way in Other USDA Agencies
Most of USDA's woody biomass utilization activities are undertaken by the
Forest Service and involve grants, research and development, and
education, outreach, and technical assistance. The Forest Service provides
grants through its Economic Action Programs, created to help rural
communities and businesses dependent on natural resources become
sustainable and self-sufficient. The Forest Service also has created a
grant program in response to a provision in the Consolidated
Appropriations Act for Fiscal Year 2005, which authorized up to $5 million
for grants to create incentives for increased use of biomass from national
forest lands. Two other USDA agencies-the Cooperative State Research,
Education and Extension Service (CSREES) and USDA Rural
Development-maintain programs that could include woody biomass utilization
activities. CSREES oversees the Biobased Products and Bioenergy Production
Research grant program and the McIntyre-Stennis grant program, which
provides grants to states for research into forestry issues under the
McIntyre-Stennis Act of 1962. Within USDA Rural Development, the Rural
Business-Cooperative Service oversees a grant program emphasizing
renewable energy systems and energy efficiency among rural small
businesses, farmers, and ranchers, and the Rural Utilities Service
maintains a loan program for renewable energy projects.
Forest Service researchers are conducting research into a variety of woody
biomass issues. Researchers have conducted assessments of the woody
biomass potentially available through land management projects and have
developed models of the costs and revenues associated with thinning
projects. Researchers also are studying the economics of woody biomass use
in other ways; one researcher, for example, is beginning an assessment of
the economic, environmental, and energy-related impacts of using woody
biomass for power generation. The Forest Service also conducts extensive
research, primarily at its Forest Products Laboratory, into uses for woody
biomass, including wood-plastic composites and water filtration systems
that use woody biomass fibers, as well as less expensive ways of
converting woody biomass to liquid fuels.
In addition, the Forest Service conducts extensive education, outreach,
and technical assistance activities. Much of this activity is conducted by
the Technology Marketing Unit (TMU) at the Forest Products Laboratory,
which provides woody biomass users with technical assistance and expertise
in wood products utilization and marketing. Forest Service field office
staff also provide education, outreach, and technical assistance, and each
Forest Service region has an Economic Action Program coordinator who has
involvement in woody biomass issues. For example, one such coordinator
organized a "Sawmill Improvement Short Course" designed to
provide information to small-sawmill owners regarding how to better handle
and use small-diameter material. The Forest Service also has partnerships
with state and regional entities that provide a link between scientific
and institutional knowledge and local users.
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.
DOE's research and development activities generally address the conversion
of biomass, including woody biomass, to liquid fuels, power, chemicals, or
heat. Much of this work is carried out by NREL, where DOE recently opened
the Biomass Surface Characterization Laboratory. DOE also supports
research into woody biomass through partnerships with industry and
academia. Program management activities for these partnerships are
conducted by DOE headquarters, with project management provided by DOE
field offices.
In addition to its research activities, DOE provides information and
guidance to industry, stakeholder groups, and users through presentations,
lectures, and DOE's Web site, according to DOE officials. DOE also
provides outreach and technical assistance through its State and Regional
Partnership, Federal Energy Management Program (FEMP), and Tribal Energy
Program. FEMP provides assistance to federal agencies seeking to implement
renewable energy and energy efficiency projects, while the Tribal Energy
Program provides technical assistance to tribes, including strategic
planning and energy options analysis.
DOE's grant programs include (1) the National Biomass State and Regional
Partnership, which provides grants to states for biomass-related
activities through five regional partners; and (2) the State Energy
Program, which provides grants to states to design and carry out their own
renewable energy and energy efficiency programs. In addition, DOE's Tribal
Energy Program provides funds to promote energy sufficiency, economic
development, and employment on tribal lands through renewable energy and
energy efficiency technologies.
Interior's Woody Biomass Interior's activities include providing education
and outreach and Activities Include conducting grant programs, but they do
not include research into woody Education, Outreach, and biomass
utilization issues. Four Interior agencies-BLM, the Bureau of
Indian Affairs (BIA), Fish and Wildlife Service (FWS), and National
ParkSome Grant Programs Service (NPS)-conduct activities related to woody
biomass. These
agencies conduct education, outreach, and technical assistance, but not to
the same degree as the Forest Service. For example, BIA provides technical
assistance to tribes seeking to implement renewable energy projects, and
while FWS and NPS conduct relatively few woody biomass utilization
activities, in some cases the agencies will work to find a woody biomass
user nearby if a market exists for the material. Interior plans to expand
its outreach efforts by using the National Association of Conservation
Districts, with which it signed a cooperative agreement, to conduct
outreach activities related to woody biomass. And while Interior's grant
programs generally do not target woody biomass, BIA has provided some
grants to Indian tribes, including a 2004 grant to the Confederated Tribes
of the Warm Springs Reservation in Oregon to conduct a feasibility study
for updating and expanding a woody biomass-fueled power plant.
Several Other Federal Agencies Participate in Woody Biomass Activities
Several other federal agencies are engaged in limited woody biomass
activities through their advisory or research activities. The
Environmental Protection Agency provides technical assistance, through its
Combined Heat and Power Partnership, to power plants that generate
combined heat and power from various sources, including woody biomass.
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. One, the Woody Biomass
Utilization Group, is a multiagency group that meets quarterly on woody
biomass utilization issues and is open to all national, regional, and
fieldlevel staff across numerous agencies. The other, the Biomass Research
and Development Board, is responsible for coordinating federal activities
to promote the use of biobased industrial products. The board consists of
representatives from USDA, DOE, and Interior, as well as EPA, the National
Science Foundation, Office of the Federal Environmental Executive, and
Office of Science and Technology Policy. When discussing coordination
among agencies, however, agency officials more frequently cited using
informal mechanisms for coordination-through telephone discussions,
e-mails, participation in conferences, and other means- rather than the
formal groups described above. Several officials told us that informal
communication among networks of individuals was essential to coordination
among agencies. Officials also described other forms of coordination,
including joint review teams for interagency grant programs and
multiagency working groups examining woody biomass at the regional or
state level.
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. In addition, the agency has created the Biomass Utilization
Steering Committee, consisting of the staff directors of various Forest
Service branches, to provide direction and support for agency biomass
utilization.
DOE coordinates its woody biomass utilization activities through its
Office of Energy Efficiency and Renewable Energy. Within this office, the
Office of the Biomass Program directs biomass research at DOE national
laboratories and contract research organizations, while the Federal Energy
Management Program and the Tribal Energy Program conduct a small number of
other woody biomass activities.
Interior has appointed a single official to oversee its woody biomass
activities and is operating under a woody biomass policy adopting the
principles of the June 2003 memorandum of understanding among USDA, DOE,
and Interior. Interior also has appointed a Renewable Energy Ombudsman to
coordinate all of the department's renewable energy activities, including
those related to woody biomass, and has worked with
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
its land management agencies to develop woody biomass policies allowing
service and timber contractors to remove woody biomass where ecologically
appropriate. Similarly, BLM has appointed a single official to oversee
woody biomass efforts and has developed a woody biomass utilization
strategy to guide its activities that contains overall goals related to
increasing the utilization of biomass from treatments on BLM lands.
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. However, not all agree
that such steps are appropriate.
Most Officials Noted the Difficulty Involved in Using Woody Biomass
Cost-Effectively, and Many Also Cited the Lack of a Reliable Woody Biomass
Supply
The obstacle most commonly cited by officials we spoke with is the
difficulty of using woody biomass cost-effectively. Officials told us the
products that can be created from woody biomass-whether wood products,
liquid fuels, or energy-often do not generate sufficient income to
overcome the costs of acquiring and processing the raw material. One
factor contributing to the difficulty in using woody biomass
costeffectively is the cost incurred in harvesting and transporting woody
biomass.
Numerous officials told us that even if cost-effective means of using
woody biomass were found, the lack of a reliable supply of woody biomass
from federal lands presents an obstacle because business owners or
investors will not establish businesses without assurances of a dependable
supply of material. Officials identified several factors contributing to
the lack of a reliable supply, including the lack of widely available
long-term contracts for forest products, environmental groups' opposition
to federal projects, and the shortage of agency staff to conduct
activities. A few officials cited internal barriers that hamper agency
effectiveness in promoting woody biomass utilization, including limited
agency expertise related to woody biomass and limited agency commitment to
the issue. A variety of other obstacles were noted as well, including the
lack of a local infrastructure for handling woody biomass, consisting of
loggers, mills, and equipment capable of treating smalldiameter material.
Agency Efforts Are Generally Targeted toward the Obstacles Identified, but
Officials Cited the Need for Additional Actions Such as Subsidies and Tax
Credits
Agency activities related to woody biomass were generally aimed at
overcoming the obstacles agency officials identified, including many aimed
at overcoming economic obstacles. For example, Forest Service staff have
worked with potential users of woody biomass to develop products whose
value is sufficient to overcome the costs of harvesting and transporting
the material; Economic Action Program coordinators have worked with
potential woody biomass users to overcome economic obstacles; and Forest
Products Laboratory researchers are working with NREL to make
wood-to-ethanol conversion more cost-effective.
Despite ongoing agency activities, however, numerous officials believe
that additional steps beyond the agencies' authority are need to fully
address obstacles to woody biomass utilization. Among these steps are
subsidies and tax credits, which officials told us are necessary to
develop a market for woody biomass but which are beyond the agencies'
authority. According to several officials, the obstacles to using woody
biomass costeffectively are simply too great to overcome by using the
tools-grants, outreach and education, and so forth-currently at the
agencies' disposal. One official stated that "in many areas, the economic
return from smallerdiameter trees is less than production costs. Without
some form of market intervention, such as tax incentives or other forms of
subsidy, there is little short-term opportunity to increase utilization of
such material." Some officials stated that subsidies have the potential to
create an important benefit-reduced fire risk through hazardous fuels
reduction-if they promote additional thinning activities by stimulating
the woody biomass market. 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.6
But not all officials believe these additional steps are efficient or
appropriate. One official told us that, although he supports these
activities, tax incentives and subsidies would create enormous
administrative and monitoring requirements. Another official stated that
although increased subsidies could address obstacles to woody biomass
utilization, he does not believe they should be implemented, preferring
instead to allow research and development efforts and market forces to
establish the extent of woody biomass utilization. Further, not all agree
that the market for woody biomass should be expanded. One agency official
told us he is concerned that developing a market for woody biomass could
result in overuse of mechanical treatment (rather than prescribed burning)
as the market begins to drive the preferred treatment, and representatives
of one national environmental group told us that relying on woody biomass
as a renewable energy source will lead to overthinning, as demand exceeds
the supply that is generated through responsible thinning.
The amount of woody biomass resulting from increased thinning activities
could be substantial, adding importance to the search for ways to use the
material cost-effectively rather than simply disposing of it. However, the
use of woody biomass will become commonplace only when doing so becomes
economically advantageous for users-whether small forest businesses or
large utilities. Federal agencies are targeting their activities toward
overcoming economic and other obstacles, but some agency officials believe
that these efforts alone will not be sufficient to stimulate a market that
can accommodate the vast quantities of material expected- and that
additional action may be necessary at the federal and state levels.
Nevertheless, we believe the agencies will continue to play an important
role in stimulating woody biomass use. The Forest Service took a
significant step recently by designating an agency lead for woody biomass
activities, responding to a need we had identified in our draft report and
enhancing the agency's ability to ensure that its multiple activities
contribute to its overall objectives. Given the magnitude of the woody
biomass issue and the finite nature of agency budgets, it is essential
that
Conclusions
6According to the Database of State Incentives for Renewable Energy, a
DOE-funded project, 19 states and the District of Columbia had renewable
portfolio standards as of February 2005.
federal agencies appropriately coordinate their woody biomass
activities-both within and across agencies-to maximize their potential for
addressing the issue.
Mr. Chairman, this concludes my prepared statement. I would be pleased to
answer any questions that you or other Members of the Subcommittee may
have at this time.
GAO Contacts and For further information about this testimony, please
contact me at (202) 512-3841 or at [email protected]. David P. Bixler,
James Espinoza, Steve Staff Gaty, Richard Johnson, and Judy Pagano made
key contributions to this
Acknowledgments statement.
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