Lake County Resources Initiative 2009 Annual Report

100 North D Street, Suite 202 Lakeview, OR 97630 (541) 947-5461 www.lcri.org

LCRI

ANNUAL

REPORT

Introduction
This is the seventh year of Lake County Resources Initiative (LCRI) and it has been a busy one. This report includes significant events that have occurred during 2009. As a reminder of what LCRI is about we have included our mission and vision. LCRI wants to make a difference in Lake County and welcomes ideas and partnerships that can help accomplish our goals. Our Mission is: To demonstrate a sustainable approach to natural resources to ensure quality of life for present and future generations.

OUR Vision:
Promote and sbare an understanding of the inter-relationsbips between people and their environment. LCRI believes that by promoting healthy ecosystems, natural resource products can provide economic opportunities to local communities. Develop opportunities for family-wage jobs througb ecologically sound and sustainable practices. LCRI is active in educating the work force about economic opportunities that result from managing forests for ecological health, and helping local workers access federal contracting opportunities. Encourage and facilitate new ideas and technologies. LCRI is currently involved in demonstrating new technologies such as small diameter shears, low psi harvesting equipment, and new opportunities such as small diameter wood products. Design and manage resource-based projects and services in the communities of Lake County, Oregon. LCRI is working in several partnerships to provide local employment through benefits to the land-examples include biophysical monitoring, stream restoration, and exploring feasibility for a local cogeneration facility. LCRl is taking action to promote a strong economy based on a healthy, thriving environment LCRI is a small organization but truly believes in Margaret Reed's quote, "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed it's the only tbing that ever has."

Lake County Renewable Energy Working Group
Two policy statements developed by Governor Kulongoski deal with renewable energy and global warming. Jim Walls is a member of the Governor's Renewable Energy Working Group which developed a considerable list of legislation during 2007 to assist in promoting renewable energy. Jim also served on the Governor's Oregon Way Advisory Committee, advising on key renewable energy projects that could utilize stimulus funds. As a result ofLCRI's work on biomass it became very clear that renewable energy could become an important economic strategy for Lake County. The Town of . '-- - Lakeview, City of Paisley, the County, Lake County Development Corporation, Lake County Chamber of Commerce, South Central Oregon Economic Development District and LCRI formed the Lake County Renewable Energy Working Group in 2007. In 2009 the group, with assistance Solar Home- off tbe grid from Brian Hider, University of Oregon RARE Student, developed a renewable energy

Page 1

LCRI

ANNUAL

REPORT

implementation plan to make Lake County Oregon's Most Renewable Energy County by December 2012, becoming a net exporter of renewable energy. Currently the group envisions 2 heating districts, 3 geothermal energy production facilities, 2 solar energy projects, the Lakeview Biomass, LLC, and a small hydro projects being developed in Lake County. LCRl contracted with Bob Rodgers, Oregon Institute of Technology (OlT) Oregon Renewable Energy Center, to provide technical assistance to industrial geothermal, wind, solar, hydro and biomass renewable energy projects, in addition to providing assistance to individual home owners and ranches. LCRl worked with South Central Oregon Economic Development District (SCEDD) to establish a revolving loan fund for homeowners and ranches installing renewable energy or thermal heat projects in Lake County. Bob assisted the fair grounds with installation of a demonstration of solar and ground source heat pump where individuals interested in renewable energy could come and view them in operation. In 2009 Bob worked on 48 projects that are active and performed over 80 projects evaluations. Many of the projects that have been or are now being completed have received funding and are in the design stage. Projects for homes, ranches and businesses included solar electricity (photovoltaics), solar hot water (thermal) for water and radiant floor heating, small scale wind, geothermal, ground source heat pumps, oil to geothermal conversion. Geothermal home hot water heating In 2009 LCRl started working with the three high schools and Treasure Valley Community College to develop curriculum utilizing a tracking solar system at each of the schools. AU the schools are on board with the project and in 2010 LCRl will assist them in preparing grants to install tracking solar panels with data go directly into the class room. After two decades of high unemployment and poverty renewable energy presents the opportunity for economic growth and is good for the environment.

Page 2

LCRI

ANNUAL

REPORT

Biomass
In 2006 the Governor declared the Lakeview Biomass Project an Oregon Solutions Project. The mission of Oregon Solutions is to develop sustainable solutions to community-based problems that support economic, environmental, and community objectives and are built through the collaborative efforts of businesses, government, and non-profit organizations. The Lakeview Biomass Oregon Solutions Project is a communitybased, multi-stakeholder effort to create an ecologically sound solution to forest restoration that includes an economically viable biomass energy facility. The biomass energy facility, 24 megawatts in size, will be adjacent to the Fremont Sawmill in Lakeview, Oregon. The sawmill is located in the center of the 495,000 acre Lakeview Stewardship Unit on the Fremont-Winema National Forest. The project will serve as Iberdrola's flagship project and as they expand their biomass efforts elsewhere this will be the project that serves as their modeL Iberdrola Renewables is working with The Collins Companies, the owner of the Fremont Sawmill, to pursue the development of the biomass facility. Groups involved in the Lakeview Biomass Oregon Solutions process included: Governor's office, Bureau of Land Management, Defenders of Wildlife, Lake County, South Central Environmental Groups attend ribbon Oregon Economic Development District, The Collins Companies, cutting for new sawmill Iberdrola Renewables, Town of Lakeview, Central Oregon Intergovernmental Council, Oregon Natural Resources Council, Oregon Department of Environmental Quality, Oregon Economic and Community Development Department, Oregon Department of Energy, Energy Trust, West Coast Carbon Sequestration Partnership, Sustainable Northwest, Klamath County Economic Development Association, The Wilderness Society, 3 E Strategies, Oregon Department of Forestry and Oregon Department ofFish and Wildlife. The group meets monthly with all parties signing the declaration of cooperation being signed in January 2007. For more information on the Lakeview Biomass Oregon Solutions project go to the website, http://www.orsolutions.orglcentral/lakeviewbiomass.htm. Hal Salwasser, Dean of Forestry, OSU and JR Stewart, Lake County Commissioner were co-conveners for the project. In the 7 years Lake County Resources has been working on this project the following are what has been accomplished: • Increased thinning and prescribed burning to reduce fuels and restore more natural fire conditionsin the Unit • Completion of a 20-year Supply MOU between the County, City of Paisley, Town of Lakeview, BLM, Forest Service, The Collins Companies, LCRl and Marubeni Sustainable Energy • 10-year Stewardship contract within the Lakeview Federal Stewardship Unit • The Collins Companies installed a new $6.8 million dollar small diameter sawmill, helping to maintain 85 jobs, Since the sawmill was a part ofthe biomass process the Oregon State Department of Energy certified the mill for the 35% Oregon Business Energy Tax Credit. • Construction planned for a biomass energy plant to better utilize thinning treatments, that will employ 18 at the plant and approximately 50 in the woods • Decommissioning of unneeded roads to improve wildlife habitat and water quality and to reducion of maintenance costs • Development ofa Long-range Strategy for the Lakeview Federal Stewardship Unit (495,000 acres) that is agreeable to locals, environmentalist and industry.

Monitoring
One of the goals of the Lakeview Stewardship Group was to implement third party monitoring of restoration projects. Through grants from the Fremont Winema Resource Advisory Committee (RAe) we have completed seven years of monitoring in the Lakeview Stewardship Unit. The 2009 Chewaucan Biophysical Monitoring Team consisted of 11 participants: Clair Thomas - project lead (8th year), Lee Fledderjohann - web master (7th year), Nathan Patla - jack of all trades (5th year), Zach Hollars - crew boss (5th year), Brittany Cramer - green line
Page 3

LCRI

ANNUAL

REPORT

vegetation (4th year), Jacinda Thomas - quadrates surveys (4th year), Sierra Price - quadrat surveys (2nd year) Neil Hansen - site set-up and mapper (3rd year), Clark Hansen - canopy (2Dd year), Stephen Griffin - canopy (1 st year), and Michael Fledderjohann - soils (2nd year). We have students who started on the crew in high school and now have completed their PhD. Throughout the summer 207 plots were established including 74 new 1110 acre sites and l33 new 1/50 acre sites. We also revisited 70 sites, most in carbon. Plots included carbon sequestration surveys following harvest, green harvest surveys - pre and post harvest, prescribed burn surveys, beetle kill in old growth Ponderosa sites, prescribed fire and beetle surveys, and response of thinned stands to beetle epidemic. For more information and reports visit our website, www.lcri.org .


Lakeview Stewardship Group (LSG)
In 2005 the group completed a Long-range Strategy for the Lakeview Federal Stewardship Unit covering :~' 495,000 acres within the Fremont-Winema National . >.: Forest. This long-range strategy is part of a unique, ~ collaborative effort to help restore the ecological health of the 495,000-acre Lakeview Federal Stewardship Unit in the Fremont-Winema National Forest and provide economic and social benefits for the local community. The strategy is based on a j LAKE:VIEW common vision and set of goals and objectives ~ Stewa dship Group developed by the Lakeview Stewardship Group. The Lakeview Stewardship Group includes Long-Range Strategy for the Lakeview Fedconservationists, timber workers, local government officials, and other civic leaders working in cooperation with the Forest Service. The strategy recognizes that restoration of the Unit will require comprehensive solutions to a variety of often inter-related problems. For example, decades of aggressive fire suppression and intensive logging of old-growth ponderosa pine trees have created unnaturally dense young forests, excessive fuel loads, and much greater risk of severe fires. The Forest Service staff refers to both the group and the strategy when developing projects within the Unit. This highly successful collaborative is working hard to restore natural conditions to the Unit. In 2006-2009 the group concentrated on implementation of the strategy. Several pieces of National legislation used the collaborative here along with other places to develop legislation around.

Page 4

2009 Financial Statement
2009 Income
Beginning Balance 37% Investrrent Incorre 0% Contributions IGrants 41%

Contributions/Grants Reimbursed Income Other Program Revenue Investment Income Beginning Balance

Total Income

$147,280 $77,045 $623 $2,790 $522 $135,087 $363,347

Program Revenue 1% Reirrbursed Incorre 21%

~====================================~I Professional
Rent/Utilities 2% Program __ ---Expenses 9% Consultants -./ 22%

Fees Program Expenses Salaries Consultants Rent/Utilities General Program Supplies Total Expenses

$1,460 $25,165 $133,299 $59,806 $6,697 $40,415 $5,781 $272,623

To all our funders and/or partners we want to say thank you for a very successful year: The West Coast Carbon Sequestration Partnership, Winrock International, Oregon Department of Community and Economic Development, Forest Service, Iberdrola, Lake County, Bureau of Land Management, The Collins Companies, Lakeview Stewardship Group, National Fish and Wildlife Foundation, National Forest Foundation, Lake County Chamber of Commerce, Oregon Watershed Enhancement Board, Oregon Watershed Enhancement Board, U.S. Fish and Wildlife Service, Oregon Department of Forestry, Town of Lakeview, City of Paisley, Sustainable NW, Compton Foundation, Weyerhaeuser Family Foundation, South Central Oregon EDD, The Governor's office, Oregon Department of Energy, and Oregon Department ofFish & Wildlife. LCRI Board Arlene Clark, Chair; Katie James, Secretary/Treasure; Chuck Graham, Paul Harlan, Jane O'Keeffe, Mary Bradbury, Hugh Cahin and Anna Kerr. Staff James K. Walls, Executive Director Contractors Bob Rogers, Renewable Energy Engineer and Brian Hider, University of Oregon RARE Student LCRI Contact information: Address, 100 North D Street, Suite 202, Lakeview, OR 97630; phone, (541) 947-5461, fax: (541) 947-5461; website, www.lcri.org.