COLORADO UTILIZATION AND MARKETING ASSISTANCE CENTER

2003/04 Annual Report July 2004 ood Utilization an ado W d Ma olor rke C ting Assistance Center

The Colorado Wood Utilization COUMAC was launched in July and Marketing Assistance Center of 2003 and is just entering its (COUMAC) is designed to second year. This report covers provide relevant assistance to forest activity between July 2003 and July stewards and businesses involved 2004. US Forest Service State and in improving the condition of Private funding for fiscal years 2003 Colorado’s forests. Colorado’s and 2004 has totaled $1,087,000. wood consumption continues to Colorado State Forest Service grow along with wildfire risks, yet (CSFS), CSU, and other partners are the state imports well over 90% providing a dollar for dollar match, of the solid wood products it uses. therefore doubling the funding COUMAC is working to make impact. linkages between forest health, loggers, , fuel mitigation COUMAC Provides: companies, local governments, • A small grants program focused manufacturers, builders, and on the utilization of wood consumers. products resulting from fuel reduction and restoration work

COUMAC is a unique partnership • Workshops, conferences, and between the Colorado State Forest field experiences Service, US Forest Service, and Colorado State University. The • Applied research and program evolved out of lessons dissemination relevant to better learned from the Four Corners utilization of small diameter and under utilized species Sustainable Forests Partnership, Colorado State University (CSU) • Technical assistance through a based Interior West Center, team of experts assembled from and traditional approaches the cooperating entities and to Utilization and Marketing other sources Technical Assistance. Many of the program concepts were part Emphasis Areas: Biomass Innovations (energy, of Dr. Denny Lynch’s vision for a • composting, shavings, CSU based wood outreach center. mulch, chunk wood) The USDA Forest Service’s Forest • Value-Adding Products Laboratory in Madison, • Harvesting Efficiency Wisconsin has been an ally to our • Marketing efforts as well. • Product Development

1 Team Members:

Joe Duda, Program Manager Bob Sturtevant, Extension Forester (907) 491-7546 State Wide (970) 491- [email protected] bsturt@ lamar.colostate.edu

Carla Harper, Program Manager Gailmarie Kimmel, Interior West (970) 565-6061 Center, Building Trades Liaison [email protected] (970) 491-3260 [email protected] Chris Jennings, Manufacturing and Processing Chris Koziol, Interior West Center, (970) 491-2958 Director (970) 491-5665 [email protected] [email protected]

Kurt Mackes, Research (970) 491-4066 [email protected]

Tim Reader, Extension Forester Durango (970) 247-5250 [email protected]

Craig Jones, Extension Forester Boulder (303)-823-5774 craigjo@ lamar.colostate.edu

LEARN MORE AT OUR WEBSITE www.colostate.edu/programs/cowood

2 Highlights

• 29 grant proposals for the • Piece-on-piece round wood Colorado National Fire Plan construction will appear at an Community Assitance Grants interpretive center on the San Juan Program were received with an National Forest. approximate request of $900,000. Eleven projects designed to • Forest Restoration and improve the utilization and fuel reduction equipment marketing of wood products were demonstrations on the Front Range chosen totaling $239,000. and Western Slope attracted over 100 attendees. • The Team made over 100 technical assistance contacts • A and Adhesives based on business requests. Workshop drew 40 participants.

• 27 applied research and/or • A Colorado Wood Branding publication efforts are completed Campaign is underway with or underway development of the Colorado Forest Products Logo (insert logo) and • The COUMAC team sponsored a partnership with the Colorado the Western States Utilization and Department of Agriculture’s Marketing Meeting. Approximately “Colorado Proud” program. 45 U&M specialists from around the West attended. • A statewide tour exposed industry to wood/ composite technology • Local materials, provided by local and possibilities. A mobile extruder business, appear in a “Discovery is under development. House” designed by a prominent Front Range homebuilder. See it • Staff was instrumental in bringing at http://www.mcstain.com/smart_ the Nederland Community Center growth/discovery_house.htm wood fired boiler into operation.

• A comprehensive Wood Products Directory is available in both printed and CD format. An advanced

3 Highlights (continued)

database of businesses in the state will soon be available and regularly updated.

• Three workshops designed for US Forest Service project “Bidders” drew over 90 participants. Two more are planned along with a hands-on demonstration to help businesses register online with FedBiz and the State Forest Service.

• Technical and small business development support/assistance resulted in recent investments in new small diameter sawmilling technologies along the Front Range of Colorado.

• Technical and industrial support is moving businesses toward the development of innovative, environmentally friendly wood preservative facilities in Southwestern Colorado.

4 lorado’s Forest Pro of Co duc tate ts I S ndus try and Outlook

The timber industry in Colorado diameter material in quantity have all and surrounding states has changed but disappeared. drastically over the last 30 years. The current forest products sector is Approximately 300,000 posts are used a “remnant industry” at best. The each year in Colorado for agricultural causes of this decline are numerous fencing. An additional 224,000 board and include but not limited to unstable feet of post and poles (about 25,000 supply, external competition, skill loss, to 30,000 posts and poles) are used lack of local or regional markets, an annually for residential post and pole increasingly hostile business climate and fencing. There are at least 7 mills that stakeholder polarization. The decline can produce post and poles along of local sawmills (primary breakdown) the Front Range (WY border to NM prevents moving Colorado wood into border). Combined capacity of these local secondary and tertiary production operations is estimated to be 125,000 levels, where value is added. As a result, to 150,000 posts. The preferred Colorado imports approximately 1.05 species (about 90% of the market) billion board feet () or 90% of is lodgepole . There are two the wood used in the state. treatment plants on Colorado’s Front Range, currently purchasing local It is estimated that there are currently material for treatment. close to 100 small operations around the state. These primarily There are 9 animal bedding, mulch represent one or two person operations and compost producers in Colorado. with local markets for rough sawn Approximately 130,000 cubic yards lumber and timbers, mine props, of this material is used per year. posts and poles, mulch, chips, animal It is estimated that approximately bedding and firewood. Many of the 80,000 cubic yards is imported to more successful small operations are Colorado each year. We have been logging contractors displaced by working to expand our market share closures who have bought small mills here: for example through grants and to stay in business. There are less than technical assistance Renewable Fiber five mills with any capacity in the state has installed a new processor and has to provide real employment or wood created a demand for 70-100 cords per utilization options. Those mills with day of small pine for animal bedding. capacity to deal with low value, small

5 The small diameter dilemma in the of treatment and processing. In many mid-90s is now more of a crisis with the situations cutting, skidding and sorting closure of US Forest Industries (studs) costs of this small material must be and Louisiana Pacific OSB both outlets subsidized in order to meet financial for small material. Out of state mill expectations of final product value. The closures have also reduced capacity; tradeoff is chipping and spreading back Rio Grande Lumber in Espanola, NM on the site or prescribed fire, both of closed in early 2004 and LP Saratoga, which have a cost and environmental WY closed in 2003. consequences.

Since Colorado imports over 90 % of the wood it uses, there are opportunities to penetrate certain markets. COUMAC is providing technical assistance to all sectors of the forest products industry. Future restoration and mitigation programs must be designed to provide a consistent supply and at a reasonable price. No single product will utilize all the small trees needed to be removed. Instead, a stable, diverse wood industry is most desirable.

It appears that 80-96% of the trees in need of removal to improve ecological conditions are between 5 and 11.9” in diameter. Approximately 4-18% are 12” and greater. These smaller diameter classes are a liability to the economics

6 Forest Products a lue to nd Im ng Va pro ddi ving P A roduct Marketing

Much of the raw material available have a long way to go on this effort. in Colorado is small diameter (under Craig Jones has shown leadership in 12 inch dbh) or low quality. Primary this program area. species targeted for restoration or fuels reduction include ponderosa pine, • Front Range Colorado pinion , and white . is Christmas tree Promotion currently one of the most marketable Campaign included website, species in the state with many value- point of sales posters and tags added possibilities. Despite being prolific in the state, producers have • Front Range Fire Wood increasingly found access to aspen Marketing Program difficult. Management needs still exist in higher elevation , fir and • Colorado products lodgepole pine species as well. Website development: www.forestproducts.org The cost for removal of the target species mentioned has continued to • Colorado Forest Products sky rocket with increases in fuel prices. logo development Estimates compiled by researchers and land managers place the cost on a per acre basis on average at $1,000. Most acceptable bids come in much lower, therefore creating a loss for Colorado Forest Products operators. We have emphasized projects • Partnership with Colorado and research that add value to small Proud program through the diameter wood in an effort to increase Colorado Department of profit margins and lower public costs Agriculture. TV and radio for forest restoration. spots will run healthy forest message and logo. Branding Campaigns Winning Colorado Builders and Raising consumer awareness about the Architects availability of CO wood products as well as the potential impacts of their Chris Koziol and Gailmarie Kimmel purchases on forest health is the focus of the Interior West Center (IWC) of branding campaign efforts. We still have worked tirelessly for several

7 years making linkages between small • Sample products diameter wood, forest health and made from local species were builders/architects with their Forest designed and presented to a (Re) Building program. CSU team gathering of local architects. members, Chris Jennings and Dave Bueche have also begun to support this • Efforts are underway with effort through several projects designed local secondary wood- to provide actual samples of products products manufacturers and from local wood. Many of these efforts fuel reduction contractors are starting to pay off through time and to evaluate machining relationship building. and mechanical properties of beetle-killed piñon • McStain Neighborhoods in southwest Colorado. connected with Mark Morgan, Current research emphasis Morgan Timber Products, to is on suitability of flooring place lodge pole timbers in applications. their Front Range Discovery A custom door maker in House. The timbers were used • Ault has worked with staff to to announce the entryway. experiment with local wood in Printed brochure text says: his products. “Small dimension wooden posts are from Colorado’s tree The National Association for thinning program. So they not • Interpretation assisted with only hold up the porch roof, the development of a Forest they contribute to the health (RE) Building plan targeted at of our state’s forests.” http: architects. //www.mcstain.com/smart_ growth/discovery_house.htm • IWC coordinated a project • Log panels built with small with student architects from diameter pine using the University of Colorado- piece-on-piece construction Denver to design the technique will be place on the EDUCO environmental San Juan National Forest’s education lodge near Red Chimney Rock Archeological Feather Lakes with material Area. Efforts are under way sourced from EDUCO’s land. to introduce this technique to local mills.

8 Improvements to Process and • The publication “Overcoming Financial Performance for Building Code-Related Colorado’s Sawmills Challenges to Construction A focused initiative is underway to Uses of Locally-Sourced Forest affect improvements to industry Thinnings and Small Diameter processes and financial performance. Wood” was distributed at Partners The effort includes development in Stewardship Conference, the of a short course curriculum on national gathering of seven public process improvements, the use of land agencies. http://www.int simple spreadsheet and computer eriorwestwood.colostate.edu/ modeling “tools”, as well as program2.htm conducting improvement studies with individual sawmills. Partners in this Solar Kiln Testing effort include the Forest Products Drying product adds value. Laboratory, Colorado State University, Opportunities for the use of solar CSFS, and local business development kilns are high in Colorado’s dry and engineering consultants. climate. Chris Jennings, CSU and Tim Reader, CSFS have worked with three businesses to incorporate drying technology such as solar kilns into their manufacturing process.

9 Bio mass Innovations

Greater utilization of the lowest Portfolio Standard on the Use of Forest value wood for heating and power Biomass). generation is a popular concept all over the West. Thirteen states now have Kurt Mackes and Chris Jennings have renewable energy portfolio standards compiled the following “biofuel” (REPS) which mandate a reduction statistics for CO: in dependency on fossil fuels. Three Firewood: Capacity limited primarily have voluntary standards. Colorado by demand. In 1999, 30,415 cords of currently relies heavily on fossil fuels firewood were consumed. for energy and does not have a REPS. Based on consumption statistics from Pellets: In 1999, an estimated 50,000 the Department of Energy in 2000, to 60,000 tons of wood pellets were Colorado uses fossil fuels in the form consumed. Colorado currently has no of coal, natural gas, and petroleum to capacity to produce pellets. provide almost 98 percent of the energy consumed in the state. Just over 2 Wood wastes and residues percent of energy comes from renewable (including chips): A high percentage energy sources and less than 1 percent of these residues remain in the forest of energy consumed in Colorado and use is currently limited by lack is derived from wood and forest of demand (low prices paid for chips) biomass. (Learn more in Kurt Mackes and transportation costs. Although position paper: Assessing the Impact there are numerous biofuels projects of the Colorado Renewable Energy at various stages of planning and

10 development, these are the only of Silva Logic is developing operations currently accepting wood Biomass Formulas for (primarily chips): Ponderosa Pine. A report will • Nederland biofuels plant be available in 05. consumes 3 to 4 tons of wood chips daily during the • Craig Jones, CSFS has been winter (less in spring, fall, and instrumental in bringing summer). the Nederland Community • Walden biofuels project (CPC) Center Biomass Project consumes an estimated 150 to on-line including the 200 tons (possibly less if unit development of a brochure, is used intermittently) of wood supply and delivery systems. chips annually. • Holcim Cement Plant could • A graduate student working co-fire up to 30,000 to 40,000 under Kurt Mackes conducted tons of wood chips annually a survey of Nederland with coal if the economics residents to evaluate public could be worked out. perception of Nederland • Aquila (W. N. Clark Power biofuel project. Plant) is willing to co-fire wood with coal if sources of wood • Discussions are underway that are price competitive with with Forest Energy coal can be delivered to the Corporation in Arizona plant. The plant is permitted to place a portable Pellet to co-fire up to 5% of wood by Operation on the Front weight (or about 25 tons per Range. day) with coal. • Possibility of wood fired boilers • A great deal of support and being placed in two new technical assistance has been District Offices on the San offered the Jefferson County Juan National Forest. Bioenergy Project.

Projects • Kurt Mackes has worked for several years with the Fort • A graduate student working Collins Holcim Cement under Kurt Mackes and in Plant conducting trials cooperation with Scott Golden to prove the efficiency of

11 utilizing wood waste to fire cement production. Holcim is capable of receiving wood waste but still relies on coal due to economics.

• Kurt Mackes and Craig Jones have both worked as advocates around the state for the heating of schools with wood fired boilers. Poudre School District in Fort Collins is pursuing wood gasification unit placement in some of their mountain schools. Craig pursued funding through the Fuels for Schools program to begin a CO Initiative. This funding did not come through.

12 ssista cal A nce a hni nd c Out Te reach

Technical Assistance and outreach • Dawn and Randy have are the heart and soul of COUMAC. conducted entrepreneurial site Our staff and associated consultants visits with 25 businesses around spend a lot of time traveling the state the state to provide technical meeting one-on-one with businesses assistance, review business plans and presenting at meetings and as well as identify markets and conferences. We have documented access to capital. In addition over 100 technical assistance contacts they have developed a Small for staff. This does not count the Business Check-Up Form to help numerous contacts made by Dawn identify areas businesses may Gardner and Randy Johnson of Rocky need assistance with. Mountain Home Based Business Association. We respond to requests • Craig Jones led a tour of projects for assistance as well as contact around the Front Range for the businesses to set up site visits. Western Forestry Leadership Coalition. • The first Colorado Forest Industries Directory published • SmallWood 2004 Poster in over seven years was Presentation: Biomass to compiled by Chris Jennings. Bioenergy: A Community Available in print and CD. Success Story by Craig Jones and U&M presentation by Chris • An industry database is being Jennings. developed by Tim Reader. The database will allow for • Booth space and poster at easy updates and sorts by a BioEnergy Conference in variety of parameters. Denver.

• Kurt Mackes and Chuck • Chris Koziol, Gailmarie Smith, Department of Kimmel, and Bob Dettmann Construction Management/ with the USFS presented at the CSU toured the state making Partnerships in Stewardship site visits with mill owners conference in LA. to promote Wood/Plastic Composites. Efforts are • Chris Koziol presented at underway to develop a Guild-Western portable extruder. Conference in Estes Park, CO.

13 ssista cal A nce a hni nd c Out Training Te reach

Providing training and workshop Reinhold, formerly CSU, opportunities around the state is an on- with 100 participants going priority. in Fort Collins and Hesperus/Durango Colorado. • Three “Bidders Workshops” have been held with over 90 • Staff will continue participants. Two more are to conduct state- planned with a hands-on wide workshops and computer demonstration investigations to improve to show businesses how sawmill process and to register on-line. These financial performance. workshops are designed to inform contractors how • Partnership is forming to access federal and state between COUMAC, contracting opportunities. Colorado Timber They are coordinated by Industry Association, Dawn Gardner and Randy and US Forest Service Johnson. to introduce, adopt, and improve safety standards • An Equipment Demonstration and compliance in our was coordinated by Stephan service, logging and sawmilling industries.

14 nd rch a Publi sea cations Re

COUMAC is continually looking mills in CO – 27 % response for appropriate applied research rate). projects. Our research is based on feedback from our clients in the • Perceptions of Wood as a business community. Building Material, a survey of Colorado Homebuilders by • A MTS machine was David Bueche. refurbished and is operating. Testing of white fir and • Piñon Materials Testing and ponderosa pine strengths is Working Property Evaluations expected to continue. by Tim Reader

• Applied Research in Timber • Evaluation of Borate Treating Harvesting by Mackes (Report Methods by Tim Reader Available). • Southwest Colorado Treated • Determining the BTU Value Wood Products, survey by of Standing Dead Trees Killed Tim Reader, Clyde Church, by Fire in CO by Mackes Joe Keck and Randy Johnson (testing under way/Report in 05). • Pittington Mill Drying Study by Chris Jennings • Using Wood/Plastic/Fly Ash Composites as an Alternative • Roper/Lankford Case Studies Fuel for Generating Electricity by Chris Jennings by Mackes (underway). • The Cost of Colorado Fires • Influence of Growth Rates on (Data has been collected Small Diameter Ponderosa from four different Colorado Pine Wood Properties (in fires to determine associated publication Mackes with costs by Mackes and Denny others). Lynch).

• Sawmill Survey to evaluate • USDA Forest Products Lab program and tech assistance Wood Handbook converted needs by Chris Jennings (71 to CD by Chris Jennings.

15 nd rch a Publi sea cations Re

• Overcoming Building A Simple Profit Planning and Cost Management System for Small Code-Related Challenges to Sawmills Article written by Robert Construction Uses of Locally- E. Pajala of Minnesota Department of Sourced Forest Thinnings and Natural Resources. Small Diameter Wood by David Eisenberg of Development How well does my air dry yard stack Center for Appropriate up?: CSU/CSFS U&M Technical Technology Note #1, provides a checklist for mill owners to evaluate their air dry yard • An Assessment of the Potential for Large Scale Wood Utilization Operating an Effective Air Dry Yard (Part I): CSU/CSFS U&M Technical Projects along the Colorado Note #2, written by Dr. Fred Lamb, Front Range by Mackes and Professor of Wood Science and Forest Lynch Products at Virginia Tech

• Assessing the Impact of Colorado Operating an Effective Air Dry Yard Renewable Energy Portfolio (Part II): CSU/CSFS U&M Technical Standard on the Use of Forest Note #3, written by Dr. Fred Lamb, Biomass: Position Paper Mackes Professor of Wood Science and Forest Products at Virginia Tech • Articles by Chris Jennings appeared in Independent Why are my boards warped and Wood Lot, Biocycle, and Green how do I prevent it from happening? CSU/CSFS U&M Technical Note #4, Building includes an article written by drying expert Gene Wengert of Univeristy of • Feasibility of Grading Lumber Wisconsin Produced by Independent Mills in the Interior West by Ron Our Industry, our forests, and you. Anthony CSU/CSFS U&M Technical Bulletin #5, facts and myths about forest in Colorado, and business owner’s Technical Bulletins by Chris opportunity to help spread correct, Jennings factual information.

Small Business Financing Information Sawing Frozen Timber with Circular compiled with help from the Colorado Headrigs CSU/CSFS U&M Technical Office of Economic Development, Bulletin #5, technical report from outlining opportunities for small 1974, written by sawmill expert Stan businesses to find answers to their Lundstrom of the Forest Products Lab financing needs

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