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California Assessment of Wood Business Innovation Opportunities and Markets (CAWBIOM)

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California Assessment of Wood Business Innovation Opportunities and Markets (CAWBIOM) California Assessment of Wood Business Innovation Opportunities and Markets (CAWBIOM) Phase I I Report: Feasibility Assessment of Potential Business Opportunities Completed for: The National Forest Foundation With Assistance From: Carlson Small Power Consultants, Mason, Bruce & Girard, and Fido Management December 2015 CALIFORNIA ASSESSMENT OF WOOD BUSINESS INNOVATION OPPORTUNITIES AND MARKETS (CAWBIOM) PHASE II REPORT: FEASIBILITY ASSESSMENT OF POTENTIAL BUSINESS OPPORTUNITIES This work was funded all or in part by the U.S. Department of Agriculture, Forest Service, State & Private Forestry, Pacific Southwest Region. In accordance with Federal law and U.S. Department of Agriculture (USDA) 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 discrimination complaint, write USDA, Director, Office of Civil Rights, Rm. 326- W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer. PHASE II REPORT DECEMBER 2015 TABLE OF CONTENTS PAGE LIST OF ACRONYMS ....................................................................................................................... 1 CHAPTER 1 – EXECUTIVE SUMMARY .............................................................................................. 2 1.1 Introduction .................................................................................................................................. 2 1.1 Oriented Strand Board .................................................................................................................. 2 1.2 Small Scale Biomass ...................................................................................................................... 3 1.3 Cross Laminated Timber ............................................................................................................... 4 1.4 Veneer Manufacturing .................................................................................................................. 5 1.5 Carbon ........................................................................................................................................... 6 CHAPTER 2 – INTRODUCTION ........................................................................................................ 7 2.1 Forest Restoration ........................................................................................................................ 7 2.2 Report Organization ...................................................................................................................... 9 CHAPTER 3 – ORIENTED STRAND BOARD ..................................................................................... 10 3.1 OSB Introduction ........................................................................................................................ 10 3.2 OSB Plant Conceptual Plan ......................................................................................................... 10 3.3 OSB Market Feasibility ................................................................................................................ 11 3.4 OSB Technical Feasibility ............................................................................................................ 34 3.5 OSB Economic Feasibility ............................................................................................................ 47 3.6 OSB Organizational and Managerial Feasibility .......................................................................... 54 3.7 OSB Summary ............................................................................................................................. 55 CHAPTER 4 – SMALL SCALE BIOMASS HEAT AND/OR POWER ....................................................... 58 4.1 Small Scale Biomass Introduction ............................................................................................... 58 4.2 Small Scale Biomass Conceptual Plan ......................................................................................... 58 4.3 Small Scale Biomass Market Feasibility ...................................................................................... 59 4.4 Small Scale Biomass Technical Feasibility ................................................................................... 64 4.5 Small Scale Biomass Economic Feasibility .................................................................................. 85 4.6 Small Scale Biomass Organizational Feasibility .......................................................................... 91 4.7 Small Scale Biomass Summary .................................................................................................... 93 CHAPTER 5 – CROSS LAMINATED TIMBER .................................................................................... 98 5.1 CLT Introduction ......................................................................................................................... 98 5.2 CLT Plant Conceptual Plan .......................................................................................................... 99 TABLE OF CONTENTS PAGE 5.3 CLT Market Feasibility ................................................................................................................. 99 5.4 CLT Technical Feasibility ........................................................................................................... 106 5.5 CLT Economic Feasibility ........................................................................................................... 113 5.6 CLT Organizational and Managerial Feasibility ......................................................................... 118 5.7 CLT Summary ............................................................................................................................ 119 CHAPTER 6 – VENEER ................................................................................................................ 122 6.1 Veneer Introduction ................................................................................................................. 122 6.2 Veneer Facility Conceptual Plan ............................................................................................... 122 6.3 Veneer Market Feasibility ......................................................................................................... 122 6.4 Veneer Technical Feasbility ...................................................................................................... 127 6.5 Veneer Economic Feasibility ..................................................................................................... 132 6.6 Veneer Organizational and Managerial Feasibility ................................................................... 141 6.7 Veneer Summary ...................................................................................................................... 142 CHAPTER 7 – POLICY RECOMMENDATIONS ................................................................................ 145 7.1 Developers Must Obtain Long-Term Supply Contracts to be Successful ................................. 145 7.2 CPUC and Carb Should Explore Protocols for Large Biomass Power Facilities ......................... 145 7.3 CPUC Should Explore Changing BioMAT Price Adjusting Protocol ........................................... 146 7.4 CARB Should QuanTIfy Benefits of Controlled Forest Waste Burning ...................................... 147 7.5 CARB Should Expand Forest and Biomass Protocols for Forest Restoration ............................ 147 7.6 U.S. Forest Service Should Continue Support for CLT Market Development ........................... 147 7.7 State Should Study Opportunities for Enhancing Wood Pellet Feasibility ............................... 148 APPENDICES ............................................................................................................................. 150 Appendix 1 – OSB Manufacturing Process Illustration ................................................................... 150 Appendix 2 – Supply Study Results and Methodology ................................................................... 151 Appendix 3 – CAWBIOM Steering Committee ................................................................................ 168 Appendix 4 – Co-located businesses .............................................................................................. 169 List of Acronyms AB 32 – California Global Warming Solutions Act MDI – liquid polymeric diphenyl methane di-isocyanate APA – The Engineered Wood Association MMBF – One Million Board Feet BDT – Bone Dry Tons MB&G – Mason Bruce & Girard BDU – -Bone Dry Unit MMBTU – Million British Thermal Units BECK – The Beck Group MMSF – One Million Square Feet BTU – British Thermal Unit MRC – Mill Residual Chip CARB – California Air Resources Board MSA – Metropolitan Statistical Areas CC – Contract Capacity MSF – One Thousand Square Feet CDEs – Community Development Entities MSR – Machine Stress Rated CEC – California Energy Commission MT – Metric Ton CEC – Cavadeas Engineering Corporation MW – Megawatt CEMs – Continuous Emission Monitors MWH – Megawatt Hour CHP – Combined Heat and Power NFF – National Forest Foundation CNC – Computer Numerical Control NMTC – New Market Tax Credit CQ – Contract Quantity NOx – Nitrogen Oxides CLT – Cross Laminated
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