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Minnesota State Innovation Team Progress Report 1/2016 to 12/2016

Sponsor: USDA Forest Service

Federal Award Number: 15-CA-11420004-081

Principal Investigator: Eric Singsass, University of Minnesota, Natural Resource Research Institute

University of Minnesota Sponsored Project Administration Award Number: CON000000053503

If you have questions you may contact the co- investigator Mike Reichenbach, [email protected] 218-726-6470

The Minnesota State Wood Innovation Team was funded through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private , Forest Service, U.S. Department of Agriculture.

In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.

Minnesota State Wood Innovation Team Progress Report Project 1/1/2016 to 12/31/2016

TASK TEAM 1 - PROGRESS REPORT

Date: March 13, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 1 Team Leader: Mike Reichenbach Task 1 Goal: Minnesota State Wood Innovation Team Meetings and Web Portal

Planned: A. Monthly Meetings: The Wood Innovation Team will conduct monthly team meetings using a web-based platform and semi-annual in-person meetings. This approach will support and enhance communication among stakeholders, manage the grant activities and address industry, forest or other issues as they arise.

B. Web Portal: A web portal will be developed for the project team, the public and private forest industry stakeholders. This portal will provide key information on Minnesota forest resources and the associated industry. Further, the portal will include news/current activities, market info, success stories, stakeholder and industry links, request for help and other industry related information. The team will work to develop strategies for sustaining the team beyond the end of the grant.

Actual: Eleven team meetings were held with an average attendance of 10 and maximum of 26 participants. The January 2016 meeting was face to face. Team meetings were held using a web based platform. Task team leads represent the University of Minnesota, the USDA-Forest Service National Forest System and the Forest Products Laboratory, the Minnesota Department of Natural Resources, Dovetail Partners and the Sustainable Resources Institute. More than 80 partners representing government natural resource agencies, economic development organizations and industry receive email notices about the Wood Innovation Team. Outcomes have included sharing of information, reporting of actions taken by task teams, and follow-up with partners to address new ideas and concerns. Each meeting is documented with an updated SWIT presentation. Selected presentations may be found at http://woodinnovation.umn.edu/about/project (click on about and follow the links to projects).

Difficulties Encountered: Declines in the numbers of task team leads that attended meetings.

Resolution/Corrective Action Plan and Schedule: Meeting dates were changed. To bolster attendance an effort was made to include presentations on topics of interest to the SWIT partners. The team meetings have resulted in coordination across tasks.

Activity Anticipated Next Reporting Period: We will continue holding monthly meetings of the task team and project partners. We will encourage attendance by offering timely information about forests, forestry, timber harvest, trucking, innovative new uses for wood, existing wood products manufacturers and wood product use.

Task 1 Page 1 Minnesota State Wood Innovation Team Progress Report Project 1/1/2016 to 12/31/2016

TASK TEAM 2 - PROGRESS REPORT

Date: March 7, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 2 Team Leader: Mike Reichenbach Task 2 Goal: “Partner with the Superior National Forest Mesabi Collaborative Learning Project to support collaborative, science-based ecosystem restoration of priority forest landscapes.”

Planned: A revision and implementation to task two.

The intent of the Minnesota State Wood Innovation Grant Task 2 was to conduct collaborative learning sessions with the Mesabi Collaborative. These sessions were to focus on increasing public and stakeholder acceptance and support for forest management.

The Mesabi Collaborative disbanded shortly after the grant was awarded. As a result, hiring consultants to conduct collaborative learning sessions was also abandoned.

In consultation with Terry Gallagher Laurentian District Ranger, others on the Superior National Forest and with Kent Jacobson Minnesota DNR there was a collective agreement that targeting educational efforts toward family woodlands near the Superior National Forest Eveleth, MN area would increase public acceptance and support for management, reduce hazardous fuels build-up and improve forest health. In addition the educational effort would be measurable based on the participants’ actions and intentions to treat hazardous fuels, and harvested timber.

At the same time the East Range Joint Powers Board convened a private lands working committee representing the USDA-FS Superior National Forest, the Minnesota Department of Natural Resources, the Natural Resource Conservation Service, Soil and Water Conservation Districts, the American Bird Conservancy, the Minnesota Logger Education Program, the University of Minnesota Extension and others. The private lands working committee aims to increase timber harvest, improve forest health, and reduce fuels build-up.

The Minnesota State Wood Innovation team is working closely with the East Range Joint Powers Board in support of the objectives of this grant. Consultation with staff at MN DNR Gary Michael’s office is on-going. John Carlson at MN DNR is on-board and has provided direction consistent with the private lands framework. The redefinition of Task two will proceed in consultation with the private lands working committee and the Minnesota DNR.

Actual: A revision to task two that includes three deliverables:

1. Customizing and target marketing of the Master Woodland Owner program to landowners in the Laurentian area. Instructors for this program will include Extension staff, Minnesota DNR foresters, NRCS staff, and others associated with the East Range Joint Powers Board private lands working committee.

2. A forestry field day for landowners, loggers and resource professionals.

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3. A consultant/coordinator/organization to provide training, thus helping the Laurentian PFM group, and the East Range Joint Powers Board coordinate efforts and implement actions to improve the connection between timber harvest and fuels reduction.

Activity Anticipated Next Reporting Period: The Master Woodland Owner Program will be delivered. We expect this program will launch in June or July, 2017 and run through the end of the year.

Master Woodland Owner Modules

Three MWO face to face sessions at (Laurentian ELC or similar location)

1. My Land: Hopes and Dreams ● what’s your favorite spot in your ● why do my woods look the way they do (land history)

2. Mapping My Land

3. Tree ID / Invasive Plants

4. Walk Your Property, What species mix, condition, fuels, forest health assessment

5. How Many Trees Are In My Woods? Inventory plot

6. Soils, Topography, and Hydrology

7. NTFPs Cultural Connections to the land. Sustainable use, cultivation, lifestyles and livelihoods.

8. Tree regeneration ● Woods regenerate in multiple ways, and you can change how they regenerate (historical vs. how it happens today) ● Why do my woods look the way they do? What did it look like 20, 50, 100+ years ago?

9. Wildlife Consideration

10. Silviculture ● Systems, managing light and composition ● Timber stand improvement, fire, harvesting ● Finding and talking with a forester ● Finding a logger

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Master Woodland Owner Modules

11. Tree Planting ● tree selection, where to buy, how to plant

12. Taxes, Recording Activities and Land Transfer

The Tools for Engaging Landowners Effectively workshop will be hosted in the Laurentian area to help the East Range Joint Powers Board organize efforts and implement actions to improve the connection between timber harvest and fuels reduction. This addresses task 3, described above.

A forestry field day will be held in fall of 2017 or spring of 2018.

Outcomes from these activities will be assessed using pre and learning gain scores and intentions to implement fire protection measures. A map showing landowners involved in the Master Woodland Owner and Forestry Field day will be produced.

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TASK TEAM 3 - PROGRESS REPORT

Date: March 8, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 3 Team Leader: John Gephart Task 3 Goal: Quantify hazardous fuel materials and forest health improvement opportunities in the Superior and Chippewa National Forests and other forestlands

Planned: In cooperation with resource personnel from the USFS Superior National Forest and Chippewa National Forests in Minnesota, the team will conduct meetings to discuss the data available and operational procedures related to collection to reduce fire risk in these forests.

Actual: The project team held several meetings with resource personnel from the Superior National Forest and the Chippewa National Forest. The primary fuel risk on the Superior National Forest is a result of understory of significant volumes of balsam fir and recent outbreaks of spruce budworm that is affecting balsam fir. The primary fire-risk issue on the Chippewa NF is overstocked red pine stands.

Difficulties Encountered: Minimal progress was made on this task during the 2016 reporting year. This was a function of not having an appropriate task leader after the partial retirement of former project PI, Bill Berguson. Further, we did not have a champion within the Superior National Forest. The Chippewa National Forest has also indicated that they have a good assessment of their opportunities.

Resolution/Corrective Action Plan and Schedule: John Gephart has been tasked with being the task leader. Efforts will focus on the Superior National Forest and the District Ranger for the Laurentian District will be the internal FS champion.

Activity Anticipated Next Reporting Period: A project task meeting has been scheduled for February 2017. The project tasks will include: Hazardous fuel reduction can be addressed by treating acres that have been identified as such, through forest restoration efforts and through traditional forest management activities. In order to quantify the volumes that can be generated, the following tasks/activities were identified:

1. Assessment of past Environment Assessments 2. Assessment of New Environmental Assessment volumes 3. Fuels Risk Assessment 4. Kangas Project Evaluation 5. New Trails Timber Sale Evaluation 6. Biomass Removals Studies 7. New Contracting Tools 8. Estimation of upper limit of Hazardous Fuel Volumes 9. Existing Market Opportunities 10. New Market/Product Development 11. Information Dissemination

Task 3 Page 5 Minnesota State Wood Innovation Team Progress Report Project 1/1/2016 to 12/31/2016

TASK TEAM 4 - PROGRESS REPORT

Date: March 3, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 4 Team Leader: Bill Berguson, UMD Natural Resources Research Institute, Duluth, MN Task 4 Goal: Conduct forestry research to support the accelerated thinning of red pine and reduced costs for forest management.

Planned: Planned activities include continued measurement of the network of field thinning experiments in red pine and dissemination of information on red pine production and management to landowners and field foresters.

Actual: All growth data from the set of 11 field experiments were collected in the fall of 2016. These data have been entered into computer spreadsheets and updated analysis of annual growth rates is underway. Also, due to the fact that sufficient time has passed since the implementation of the first thinning treatments, work was done to prepare a subset of our study sites for second thinning using the same replicated blocks previously established. Analyses of thinning costs continue to be done in cooperation with industrial partners to operationally thin larger red pine stands to estimate product distribution in harvested material (sawbolt versus percentage) and daily production of logging equipment. This is an issue of importance to all land managers in the state. While this work is ongoing, our analyses have shown that costs associated with cut-to-length equipment thinning are dramatically affected by thinning method (e.g. above, below, even-diameter) with costs ranging from $40 to $25 per cord assuming a thin-from-below versus a thin-from-above treatment, respectively. The implication of this work is that thinning can take place at an earlier age than is currently practiced thereby providing options to foresters to increase product yield and reduce costs. A report of the results of red pine productivity research, as well as, thinning studies was being prepared during the 2016 year. We are in the process of condensing this information for use by field foresters and soliciting input from major landowners in Minnesota including county, state and industrial foresters to maximize the utility of this document. We expect this work to be completed by July of 2017.

Difficulties Encountered: None to date.

Resolution/Corrective Action Plan and Schedule: Not applicable.

Activity Anticipated Next Reporting Period: Analysis of thinning study data and submission of a describing thinning results to date to a peer-reviewed journal. We will continue to hold meetings and conduct field visits with land managers across the state to make this information widely available. Also, as mentioned, the document describing results and their application is expected to be completed by July of 2017.

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TASK TEAM 5 - PROGRESS REPORT

Date: January 9, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 5 Team Leader: Kathryn Fernholz, Dovetail Partners Task 5 Goal: Develop and deliver short courses for architects, policymakers and industry to promote the use of innovative wood products and building practices in the state.

Planned: The action team will partner with WoodWorks, a cooperative venture of major North American wood associations as well as government agencies and other funding partners staff and other partners, to develop a series of three half-day Innovation in Wood Products Workshops. This first of these workshops will occur in 2016.

Actual: The first workshop event was held on April 21, 2016 at the University of Minnesota campus in St. Paul, MN. The event was organized and promoted in partnership with WoodWorks. Attendees included architects, engineers, students and others. There were also vendors with exhibits set up at the event. See photos and copies of the event agenda on the following pages.

Difficulties Encountered: None to date.

Resolution/Corrective Action Plan and Schedule: Not applicable.

Activity Anticipated Next Reporting Period: The remaining two workshops will be held in 2017. A workshop is planned for Tuesday, April 25th in Duluth, MN and Thursday, April 27th in Rochester, MN.

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TASK TEAM 6 - PROGRESS REPORT

Date: March 10, 2017 Reporting Period: January 1, 2016 - December 31, 2016 Task 6 Team Leader: Angela Gupta Task 6 Goal: The DMC draft plan identifies Sustainable Development Incentives in its guiding principles. Our team will work with local organizations including the Rochester Energy Commission, DMC Economic Development Authority, Rochester, and Olmsted County to include the use of underused Minnesota grown wood material and wood from hazardous fuel treatment in this large-scale economic development project. Further, SE Minnesota is the only known location in Minnesota that has standing dead trees killed by the emerald ash borer. Specific action activities will engage local leaders as a means to influence policies to increase wood use and underused wood resources, provide outreach to local wood producers/industries, and create a local awareness of the importance of forest products.

Planned: Engage with Destination Medical Center (DMC), a multi-billion dollar economic development initiative to secure southeastern Minnesota's status as a global medical destination now and in the future.

Actual: o Participated in monthly check-in calls: 3-28-16, 5-23-16, 7-25-16, 9-27-16 o Gupta joined the Rochester Parks and Recreation Board in April, 2016. She was appointed to represent the Parks & Rec Board on Rochester’s Committee for Urban Design & Environment (CUDE) in December, 2016. In both forums she has advocated for greater wood innovation and utilization. o Posted on DMC Facebook page about Why we should build wooden skyscrapers o Post Bulletin: Letter to the Editor, 5-3-16, Letter: Finding new uses for fallen trees can benefit communities, environment o Attended Place Makers Rochester Protyping Festival with the idea of doing wood with Wood Works, 8-16-16 o Rochester Extension group meeting to strategize local engagement. 11-8-16 o Met with Sierra Club, Rochester about Sustainability in Rochester, 11-21-16 o Destination Mass Timber Medical Center discussion; part 2, 11-21-16 o St. Mary’s Place: Community Input Open House, 12-1-16 Difficulties Encountered: As system plans at the city, county, DMC and other entities in town come to a close, the opportunities for public engagement are dwindling. It is less clear to me how public engagement will be handled moving forward, but it appears to be in open meetings and through locally elected officials like the City Council. I will continue to engage in and advocate for increased wood innovation and utilization.

Resolution/Corrective Action Plan and Schedule: The problem continues to be the disconnect between WHAT is built and HOW it should be built. I believe I have been successful in keeping this message bubbling, but I’m less sure it’s been embraced by the “right people”. The planned

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Dovetail and WoodWorks event in April 2017 includes an effort to meet with key people in Rochester, MN to bridge this disconnect.

Activity Anticipated Next Reporting Period: • Join Dovetail Partners and WoodWorks at Innovation in Wood Design event on April 27th in Rochester, MN. o These programs will review innovative wood products and examine how the use of wood as a structural material in buildings positively impacts their . Attendees will learn about North American forests, effects of harvesting practices over the past 100 years and how responsible forest management can lead to positive environmental impacts. A case study on the Aspen Art Museum will also be presented exploring the design and construction of the wood structure, including paths explored but not chosen for the final design. Cross laminated timber (CLT) framing systems and details incorporating its use will also be reviewed, along with historical context, project examples and benefits of use. Local innovative wood design and construction projects will also be featured during the workshop! o Speakers: Kathryn Fernholz, Dovetail Partners, Inc.; Gregory R. Kingsley, PhD, PE, KL&A, Inc. Structural Engineers and Builders; Archie Landreman, WoodWorks o Attendees will qualify for 3 AIA/CES LUs (HSW) or PDH credits. • Continue advocating for wood innovation and utilization locally through the Parks & Rec Board, CUDE, public engagement opportunities and with DMC and the City of Rochester’s new Sustainability Coordinator.

Task 6 Page 12 Minnesota State Wood Innovation Team Progress Report Project 1/1/2016 to 12/31/2016

TASK TEAM 7 - PROGRESS REPORT

Date: March 8, 2017 Report Period: January 1, 2016 - December 31, 2016 Task 7 Team Leaders: Eric Singsaas, Brian Brashaw Task 7 Goal: Identify and technology and equipment that could support the utilization of hazardous fuels and other underutilized species.

Planned: Members of the project team will work to identify technology and equipment that can be used to process materials identified as hazardous fuels, underutilized, or affected by invasive species. Targets would be technology that could be used to produce small diameter , biomaterials, biochemicals, or solid . Several team members will conduct extensive product reviews using trade journals, interviews with other action teams/organizations, and participation in equipment shows such as Small Log Conference, Timber Processing & Energy Expo, International Biomass Conference and Expo, Council of Forest Industries, Ligna Hannover, and the World Sustainable Energy Days. Innovative technology and equipment updates will be developed and shared with targeted Minnesota industry through webinar presentations, web portal updates, and in-person meetings.

Actual: Members of the MN SWIT developed close and regular engagement with the Bioeconomy Coalition of Minnesota (BCM), an industry-relevant consortium aimed at developing capacity of the bio-based industry in the state. Team members Brashaw and Singsaas attended a BioEconomy Coalition of Minnesota meeting held March 1, 2016 in Minneapolis, MN. At that time, attendees provided an excellent overview of the potential projects surrounding the biochemical developments in Minnesota. Presentations were made on the range of biochemical options (isobutanol, normal butanol, industrial alcohol, fermented sugars, activated carbon, torrefaction and wood pellets), status of current projects and the production incentive that was passed by the Minnesota legislature in the 2015 session. The production incentive is expected to help stimulate the potential production of biochemicals. The utilization of forest materials is also eligible under the program. Several participants from the Commercial Aviation Alternative Fuels Initiative (CAAFI, http://www.caafi.org/) made a presentation about potential market demand for Sustainable Alternative Jet Fuels (SAJF) in the future. Of note, there is a 23 billion gallon/yr total jet fuel demand in the US and there are goals of increasing the amount of SAJF to 1 billion gallons by 2018-2019. They have identified Minnesota as a prime location based on the overlap of feedstock abundance, a hub airport (MSP), and a positive policy landscape. It was noted that there is a total jet fuel demand of 1.5 million gallons/yr in Duluth (DLH) and 335 million gallons/yr demand at MSP. A 10% replacement rate using SAJF would create a market demand of 33.6 million gallons. There was considerable discussion regarding the specifics of raw material availability around hazardous fuel species, agricultural biomass, and current wood markets.

Task co-leader Singsaas has remained active in the BCM throughout 2016, attending regular meetings and advising coalition participants on development of bio-based fuels or chemicals from forest resources.

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Task co-leader Singsaas has convened a CAAFI State Initiative in Minnesota to attract and develop commercial bio-jet fuel production to the state. The State Initiative met with developer, NuFuels LLC, October through December to understand the company’s needs and fit within the regional forest products supply chain. As of now, NuFuels is planning for groundbreaking in Minnesota in late 2018.

The task co-leader also attended the spring meeting of the BioRenewable Deployment Consortium (BDC) (www.bioenergydc.org). The BDC mission is to promote deployment of commercially viable advanced biofuels and biochemicals technologies that do not require long term subsidy and to optimize total system energy efficiency. This meeting was held in Charleston, SC and focused on Sugar to Chemical Conversion. Companies want to use cellulosic sugars (non-food sourced sugar), but cellulosic sugars are currently not cost competitive with corn sugar. Presentations focused on how to help bridge this gap and accelerate the transition to cellulosic sugars, pathways and regulations as well as commercial progress updates. New contacts were established with a number of companies during this meeting and with encouragement UMD’s Natural Resources Research Institute also joined the BDC.

Additional efforts have been made to investigate mass timber products and construction. Mass timber products include cross-laminated timber (CLT), nail laminated timber, glue laminated timber and other type products. Typically produced from sawn dimension lumber, these products offer new opportunities for producing high quality construction materials from small diameter, lower quality lumber. Members of the MN SWIT attended the Mass Timber Conference and Expo in Portland, OR in March 2016 and also toured DR Johnson, to get an update on their CLT plant manufacturing operation. Following this event, the SWIT provided a detailed overview of raw material considerations for mass timber production and manufacturing for other team members and to several Minnesota manufacturing firms to alert them to the conference and other unique opportunities for producing mass timber products. This also included a presentation for the Forest Resources Association in Harris, Michigan as part of their fall meeting. A copy of this presentation is included in the report. Finally, Minnesota is home to a construction project focused on mass timber; T3 Building, Minneapolis, MN. Several MN SWIT team members were able to tour the facility during construction, and at completion. The facility has been completed on schedule, and most of the facility has been leased by the developer. The most visible lease has been taken by Amazon. Details are available at: http://www.startribune.com/amazon-takes-office-space-in-t3-building-in-north-loop/410679765/. A construction camera shows the full construction of the T3 in time lapse and is available at: http://www.workzonecam.com/projects/hinesinterest/t3building/workzonecam.

Difficulties Encountered: None to date.

Resolution/Corrective Action Plan and Schedule: Not applicable.

Activity Anticipated Next Reporting Period: The team will continue to explore options in both mass timber, lumber processing and biofuels/biochemicals during the next year. Continued participation in the Bioeconomy Coalition of Minnesota and CAAFI State Initiative will be directed towards attracting and developing commercially relevant bio-based industry based around sustainably harvested woody biomass. Continued discussion and presentations with

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potential mass timber manufacturers and markets will continue. Outreach efforts to combine this information for the Destination Medical Center in Rochester will be conducted. The 2017 Mass Timber Conference in Portland, OR will be attended and information transferred back to the SWIT, and also shared with the MI and WI SWITs. Further, at least one representative will attend the BioDeployment Consortium meeting in Des Moines, IA on May 1-3, 2017, that will include a tour of the DuPont that produced cellulosic .

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TASK TEAM 8 - PROGRESS REPORT

Date: February 6, 2017 Reporting Period: January 1, 2016 - December 31, 2016 Task Team Leader: Don Peterson Task Goal: Assess the potential and develop contracting strategies, such as Stewardship contracts, to support fuels reduction and forest management

Planned: The Sustainable Resources Institute (SRI) will provide services related to the development of Stewardship Agreements to facilitate the availability of wood supplies associated with fuels reduction in the national forests. SRI will provide assistance to the State Wood Innovation Team by facilitating discussions with the Chippewa and Superior National Forests to explore management partnership opportunities including Stewardship Contracting, Stewardship Agreements and Good Neighbor Authority, with the end result being recommended strategies to increase use of partnership management options on one or both forests.

Actual: A meeting in Duluth was conducted in February, 2016 with Superior and Chippewa National Forest staff to explain the Master Stewardship Agreement that Sustainable Resources Institute has with the Chequamegon -Nicolet National Forest as well as other Master Stewardship Agreements that were operational with the Chequamegon -Nicolet National Forest. There seemed to be interested with the promise that D. Peterson would follow up with e-mail communications. D. Peterson provided follow-up communication with no response from the National Forest staff.

It seemed that there was little interested in Master Stewardship Agreements from either National Forest in Minnesota. Brian Brashaw made one last attempt to ascertain interest from the Superior and Chippewa. Both responded that they were interested in finding out more about Master Stewardship Agreements with individual counties and discussed scheduling a meeting with interested parties in 2017.

Difficulties Encountered: Engaging appropriate National Forest staff in Master Stewardship Agreement possibilities in Minnesota proved difficult.

Resolution/Corrective Action Plan and Schedule: Individual calls to each National Forest sparked interest.

Activity Anticipated Next Reporting Period: Schedule a meeting with Superior National Forest and potential MSA partners to discuss possibilities. Continue dialogue with the Chippewa National Forests to discuss next steps.

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TASK TEAM 9 - PROGRESS REPORT

Date: March 21, 2017 Report Period: January 1, 2016 – December 31, 2016 Task 9 Team Leader: Pat Donahue Task 9 Goal: Build technical and leadership capacity for existing wood products manufacturers.

Planned: To provide technical assistance through outreach, product evaluation and testing, equipment identification, and other activities. Leadership capacity will be built through leadership development, strategic planning, lean manufacturing and innovation concepts. Visit with existing companies to provide technical assistance, thus supporting more efficient operations.

Actual: We executed a series of field technical assistance visits that included, Ryan’s Railings, Nelson Wood Shims, Savanna Pallets, and Potlatch Lumber Mill.

Ryan’s Railings operates a high production German round rod machine from Probst that has the capacity to process small diameter logs into fence post and rustic furniture feedstock. The information was turned over to the Minnesota DNR Utilization and Marketing Forester who is attempting to further develop into a new niche market.

Nelson Wood Shims processes primarily basswood. It was discovered the company currently has wood plastic composite shims manufactured in Chicago and the company expressed interest in relocating this production to its Minnesota manufacturing operation.

Savanna Pallets visit grew into a funded project for Task Team 11: a Business Assistance Fund (BAF) project. The project will prototype and test nailed cross laminated timber construction mats. This is a very positive outcome as it begins the background discovery for the further development of mass timber technology with a Minnesota twist.

The Potlatch Lumber visit included hosting a group of leading Minnesota wood product manufacturers. The vision was to create a sub-initiative to explore and discover new strategies for the added value utilization of softwood wood sawmill residue and softwood logs. The positive outcome of the visit yielded the discovery of a technology vendor, PolymerTrend, LLC, based in Buffalo, NY. PolyerTrend offers a cluster of processing technology for pulp log pre- treatment and composite panel mini mills.

Difficulties Encountered: None to date.

Resolution/Corrective Action Plan and Schedule: Not applicable.

Activity Anticipated Next Reporting Period: PolymerTrend intends to schedule a Minnesota visit in February 2017.

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TASK TEAM 10 - PROGRESS REPORT

Date: March 7, 2017 Report Period: January 1, 2016 - December 31, 2017 Task 10 Team Leader: Brian Brashaw Task 10 Goal: Integrate and leverage with the Minnesota State Wood Energy Team and the proposed Wisconsin State Wood Action Team.

Planned: The team will support the activities of the Minnesota State Wood Energy Team (Team Leader Brashaw is a member) by working to develop local solid (pellets, briquettes) production capacity. Opportunities and partners will be solicited and the team will work with local economic development agencies to support this expansion as warranted. The team will have a representative on the proposed Wisconsin State Wood Action Team and vice-versa. This will allow the two teams to leverage capacity and cooperate on planned activities that will have a positive impact for both states.

Actual: The task group participated in additional trials at Laurentian Energy Authority (comprised of the Hibbing, MN and Virginia, MN Public Utilities). 50 tons of wood pellets manufactured from up to 30% balsam fir (primary hazardous fuel in NE Minnesota) were co-fired with on a stoker grate coal line. The pellets were mixed into the coal feed above the stoker grate boiler system with a target of 20-30% coal replacement. Emissions testing was also completed during the trial at Hibbing. Both the Hibbing and Virginia facilities are currently evaluating the final test results and considering modifications to their fuel feed process to co-fire wood pellets in an on-going fashion. A final decision will be made in 2017.

The team leader has continued to engage with the Minnesota State Wood Energy (SWET) and report team activities back to the State Wood Innovation Team (SWIT). Further, there has been engagement with the Michigan and Wisconsin State Wood Energy Teams during a joint meeting and ensuing conference call between MN, WI, and MI. The SWET is nearing the end of their grant period, but they have shared the list of site visits and feasibility assessments that have been done to try and create additional markets for hazardous fuels. During the year, information was provided to all members of the MN State Wood Innovation Team on the 5th Annual Heating the Midwest Conference and Expo, which was held in Michigan’s Upper Peninsula, at the Island Resort and Casino, 15 miles west of Escanaba, MI. There has been consistent sharing of information to the MN SWIT and vice-versa with these organizations.

Finally, the Wisconsin State Wood Innovation Team was funded and activated during the reporting period. The goals, objectives and project activities were shared with all members of the MN SWIT. There has been sharing of event information between the two teams, notably the planning of wood innovation events (Task 5) for April 2017 in Duluth, MN and Rochester, MN – locations that are near the state borders.

A Michigan SWIT team was also funded and information on their goals, objectives and activities has been shared with MN SWIT team members during monthly calls, notes, minutes and other events.

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Difficulties Encountered: The Wisconsin State Wood Innovation Team was initially selected for funding in 2015, but the agreement was not executed until 2016.

Resolution/Corrective Action Plan and Schedule: Once the FS agreement with the WI SWIT team was finalized, we began sharing information on their goals, objectives and activities with the MN SWIT.

Activity Anticipated Next Reporting Period: The MN SWIT task team leader will continue participating in MN SWET, WI SWET and MI SWIT team meeting and report activities to all groups.

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TASK TEAM 11 - PROGRESS REPORT

Date: January 12, 2017 Report Period: June 1, 2016 - December 31, 2017 Task 11 Team Leader: Eric Singsaas Task 11 Goal: Develop an innovation product development research grant program for small businesses.

Planned: A research fund ($23,181) will be established to allow small businesses access to resources in support of innovative ideas. These funds would be available for firms that propose new products or processes that support increased use of low value wood from forest lands with high wildfire risk and reduce costs of forest management. These funds would require a combination of cash (25%) and in-kind matches (75%) from the business to match the funds 1:1. The team will work with other project partners to identify scale-up funds needed for successful product development projects/companies. Additional funds may be available from Minnesota Department of Employment and Economic Development (MN DEED).

Actual: We evaluated the previous NRRI product development fund internally and solicited input from prior applicants to improve the process. Based on this input we redesigned the application process to make it more user friendly for small businesses who often have limited time and little experience writing grant proposals. The program is renamed the NRRI Business Assistance Fund (BAF). The BAF was advertised through the NRRI web site and by personal contact with several businesses through a tri-fold marketing brochure. Project pre-proposals were solicited through a web-based form. One project was selected for full proposal development in collaboration with a PI from NRRI. Full proposal development and project execution will happen in 2017.

Difficulties Encountered: The existing application process was too slow and cumbersome for small businesses to find the project useful.

Resolution/Corrective Action Plan and Schedule: NRRI’s administration team adopted a new project application process whereby projects are solicited by a web form and pre-screened for responsiveness to funding agency requirements. Selected applicants are assigned a PI from NRRI to help write a proposal. Proposals are screened by a selection committee. After committee review the selected applicants meet with the committee for project selection and guidance.

Activity Anticipated Next Reporting Period: The first selected project will be reviewed by committee and, if selected, executed during the next reporting period. Another round of applications will be solicited for remaining USDA funds. The new Business Assistance Fund team leaders will also solicit additional funding from foundations and state agencies to expand the program in future years.

Task 11 Page 20 Minnesota State Wood Innovation Team Progress Report Project 1/1/2016 to 12/31/2016

APPENDIX

The following is an Appendix to Task Team 7 Progress Report.

APPENDIX Page 21 Photo Credit: D. R. Johnson

Brian Brashaw, Program Manager Forest Products Marketing Unit US Forest Service MODERN TALL WOOD BUILDINGS: OPPORTUNITIES FOR INNOVATION My Forest Products Story…

As a youth growing up in the Nicolet National Forest, I understood the connection between the forest and Connor Forest Products where my Dad worked. Despite moving from Laona in 5th grade, I accomplished my youth goal of being a forester with a career in forest products. After 25 years as a wood specialist in Minnesota, I joined the Forest Service’s FPL in 2015 to fulfill a career goal and work to strengthen the connection between our forests, research, and markets. I am proud to work alongside my Forest Service colleagues and partners to support resilient forests and communities. National Forest Products Week https://www.whitehouse.gov/the-press-office/2016/10/14/presidential- proclamation-national-forest-products-week-2016

…The health and well-being of our forests and our communities go hand in hand. With the Department of Agriculture, we are working to strengthen markets for forest products. By allocating millions of dollars to help expand technologies that encourage the use of wood in innovative ways, we are also striving to improve forest health and generate rural jobs… USDA Forest Service Forest Products Laboratory

. Established 1910 . 144 Permanent Employees (42 Scientists) . Federal Funding $26.6 million . 150 Cooperative R&D agreements . Program Leverage $4 - $5 million A key element in maintaining healthy, resilient forests is our ability to provide value-added products from the full complement of forest biomass.

NANO- CROSS LAMINATED GLULAM TIMBER PARALAM CHEMICALS I- LVL & POLYMERS LUMBER

PACKAGING CONSTRUCTION PULP & PAPER HARDWOOD PLYWOOD MDF OSB VALUE FUEL PELLET

PARTICLEBOARD ETHANOL/BUTANOL/ POWER PYROLYSIS OIL

BIOMASS MILL RESIDUE PULP WOOD SAW LOGS VENEER LOGS VALUE Forest Service Regional Biomass Coordinators State Forestry Tribal Utilization Partners and Marketing Partners FPMU

Wood Products Forest Extension Products and Industry University Partners Public- Private Partnerships USDA Forest Service FOREST PRODUCTS MARKETING UNIT Population Growth / Urbanization Climate Change / Carbon Information Technology Forest Fire Wildland Urban Interface Rural Economies GLOBAL TRENDS Overview

• What is mass timber and why is it important? • What is a tall timber building and why is this a market? • What is being done to grow this market? • What opportunities are available? • WoodWorks • Mass Timber Mass Timber Education Conference • Softwood Lumber Board Strategy • Media

• WoodWorks Technical • Forest Products Marketing Unit (FPL) Assistance • Regional Biomass Coordinators

• Forest Products Laboratory (FPL) and Research University and other Research Partners

Agency Lead: Washington Office - • U.S. Tall Wood Building Cooperative Forestry Competition • National Building Museum Initiatives • Film with Choose Outdoors • Wood Innovation Grants • Cooperative Agreements Source: FPL-GTR-241 @fpl.fed.fs.us Cross-laminated Timber (CLT)

Cross-laminated timber diagram Used by permission of reThink Wood Nail-laminated Timber • Defines CLT – How it can be made – Basic qualification tests – Expected minimum performance • 7 Performance Grades • No nail laminations • Requires 3rd Party Certification CLT Production (Per PRG 320-2012)

• Machine Stress Rated or Visually Graded Dimensional Lumber (Douglas-fir, southern yellow pine, SPF, SPFsouth) or Structural Composite Lumber – often #2, #3 visual • 2 by 4, 6, 8, 10 common in NA • Dried to 12% moisture content before layup • Glulam adhesive standard (AITC 405) – Phenol-resorcinol formaldehyde (PRF), Emulsion polymer isocyanate(EPI), One-component polyurethane (PUR) Photo Credit: D. R. Johnson Photo Credit: D. R. Johnson North American Manufacturing

United States • DR Johnson (OR) - ANSI/APA certified • Smartlam (MT) – ANSI/APA certified • Sterling (IL) Canadian • Nordic Structures (Quebec) • StructureCraft (BC) • Structurlam (BC) Image Courtesy Lech Muszyński Image Courtesy Lech Muszyński Source: Softwood Lumber Board in FPL-GTR-241 @fpl.fed.fs.us Why should we care about mass timber?

• Contributes to healthy, sustainable forests • Increase public awareness of forestry

• Reduce global CO2 emissions • More globally competitive forest products sector • Creates manufacturing jobs in rural communities MASS TIMBER PROJECT EXAMPLES Market Trends

What about in the US?

WoodWorks is currently assisting on 19 projects 7-stories or more.

Image Source: reThink Wood Brock Commons YouTube Time Lapse Source: Softwood Lumber Board in FPL-GTR-241 @fpl.fed.us T3 / Minneapolis

USDA Tall Wood Building Prize Competition - $3.0 M

Source: Softwood Lumber Board in FPL-GTR-241 @fpl.fed.us Source: Lendlease in FPL-GTR-241 @fpl.fed.us Source: Lendlease in FPL-GTR-241 @fpl.fed.us Source: Lendlease in FPL-GTR-241 @fpl.fed.us Source: Lendlease in FPL-GTR-241 @fpl.fed.us Mass Timber Construction Benefits

• Light/strong • Versatile • Small environmental footprint • Design flexibility • Rapid assembly • Cost-competitive Expanding the Use of Wood Products

2016 Wood Design Award Winner: Commercial Wood Design Framework Wood Project Assistance Works Partnership Architecture, TM Rippey Consulting Engineers [email protected] Photo: Joshua Jay Elliot

WoodWorks Website www.woodworks.org

2015 PROGRAM HIGHLIGHTS technical support for 220 projects & technical support on an additional 488 that went to construction this year projects that are still in design phase

practitioner education hours through Wood Solutions Fairs, workshops, 43,300 webinars and other education events

Growth in Number of Direct Projects Supported 2015 PROGRAM HIGHLIGHTS

Supporting a Full Range of Projects

Projects by Building Type FPL Research Needs Workshop

Key Topics 1. Resistance to lateral loads 2. Building performance a) Durability b) Sound c) Vibration d) Life cycle assessment 3. Fire safety 4. Material resources

FPL-GTR-241 is available @fpl.fed.fs.us • Portland, Oregon – Building Tour – Conference and Expo Hall – 500+ attendees from 14+ countries Timber City: National Building Museum

Photo by Yassine al Mansouri, courtesy National Building Museum. Mass Timber Resources

• USDA Forest Service Wood Innovation • USDA Forest Products Laboratory • Waugh Thistleton Architects Ltd. • reThink Wood • WoodWorks • APA–The Association Michael Green: Ted Talk

https://www.ted.com/talks/michael_green_why_we_should_build_wooden_skyscrapers?language=en http://www.cbsnews.com/news/living-the-high-life/ Changing the Way America Builds

• Mass Timber building is being embraced – Expanding CLT manufacturing capacity – Surge of initial projects • Code acceptance and standardized design methods still the pressing need – Alternative means and methods for seismic design – Height and area limits – International efforts for fire, durability, seismic design • Significant resources to support market opportunities and pushback from steel and concrete Thank you!

Brian Brashaw, PhD Program Manager Forest Service, Forest Products Laboratory Forest Products Marketing Unit

p: 218-626-4344 (Duluth)

[email protected] 8901 Grand Avenue Place Duluth, MN 55808 One Gifford Pinchot Dr Madison, WI 53726-2398 www.fs.fed.us

Caring for the land and serving people