The Forest Service and Interior manage about 700 million acres of federal land between them, much of which is considered to be at high risk of fire. Federal researchers estimate that from 90 million to 200 million acres of federal lands in the contiguous United States are at an elevated risk of fire because of abnormally dense accumulations of vegetation, and that these conditions also exist on many nonfederal lands. Addressing this fire risk has become a priority for the federal government, which in recent years has significantly increased funding for fuels reduction. Fuels reduction is generally done through prescribed burning, in which fires are deliberately lit in order to burn excess vegetation, and mechanical treatments, in which mechanical equipment is used to cut vegetation. Figure 1 shows before and after photos of a site that was thinned to reduce the risk of fire. Although prescribed burning is generally less expensive than mechanical treatment, prescribed fire may not always be the most appropriate method for accomplishing land management objectives—and in many locations it is not an option, either because of concerns about smoke pollution or because vegetation is so dense that agency officials fear that a prescribed fire could escape and burn out of control. In such situations, mechanical treatments are required, generating large amounts of wood—particularly small-diameter trees, limbs, brush, and other material that serve as fuel for wildland fires. Woody biomass can be put to many uses. Small logs can be peeled and used as fence posts, or can be joined together with specialized hardware to construct pole-frame buildings. Trees also can be milled into structural lumber. Using computer-operated equipment, some mills can manufacture lumber from logs as small as 4 inches in diameter. Other wood products such as furniture, flooring, and paneling can be produced. Woody biomass also can be chipped for use in paper pulp production and other uses—for example, a New Mexico company combines juniper chips with plastic to create a composite material used to make road signs. Woody biomass also can be converted into other products, including liquid fuels such as ethanol and other products such as adhesives. Finally, woody biomass can be chipped or ground for energy production—for example, to fire power plants, or produce steam or hot water heat for manufacturing processes or buildings. Figure 2 shows a trailer full of wood chips being emptied into a container at a California power plant fueled by woody biomass; figure 3 shows chips ready to be fed into a boiler. Citing biomass’s potential to serve as a source of electricity, fuel, chemicals, and other materials, the President and the Congress have encouraged federal activities regarding biomass utilization—but until recently, woody biomass received relatively little emphasis. A list of major congressional direction follows: The Biomass Research and Development Act of 2000 directed the Secretaries of Agriculture and Energy to coordinate their research and development efforts, leading to the production of biobased industrial products; created the interagency Biomass Research and Development Board, supported by a Biomass Research and Development Technical Advisory Committee; directed the Secretaries of Agriculture and Energy to implement a “Biomass Research and Development Initiative” under which the agencies would provide grants, contracts, and financial assistance for research on biobased industrial products; and authorized an appropriation of $49 million for each of fiscal years 2000 through 2005 to carry out the act’s provisions. The Farm Security and Rural Investment Act of 2002 established a federal procurement preference for biobased products requiring federal agencies purchasing items costing more than $10,000 to give preference to biobased products; directed the Secretary of Agriculture to award grants for developing and constructing biorefineries (equipment and processes that convert biomass into fuels and chemicals and that may produce electricity); directed the Secretary of Agriculture to provide grants, loans, and loan guarantees to farmers, ranchers, and rural small businesses to purchase renewable energy systems and make energy efficiency improvements, and to make available from the Commodity Credit Corporation $23 million for these activities for each of fiscal years 2003 through 2007; and directed the Secretary of Agriculture to make available from the Commodity Credit Corporation $5 million in fiscal year 2002 and $14 million for each of fiscal years 2003 through 2007 to carry out the provisions of the Biomass Research and Development Act of 2000, and extended through fiscal year 2007 the Biomass Research and Development Act’s authorization of $49 million each fiscal year. The Healthy Forests Restoration Act of 2003 authorized appropriations of $5 million for each of fiscal years 2004 through 2008 for each of two grant programs—a Forest Service program focusing on community-based enterprises and small businesses using biomass, and a USDA program providing grants to offset the costs of purchasing biomass by facilities that use it for wood-based products or other commercial purposes; and increased the authorization contained in the Biomass Research and Development Act of 2000 from $49 million to $54 million for each of fiscal years 2002 through 2007. The American Jobs Creation Act of 2004 contained tax incentives promoting the use of woody biomass to generate electricity. Utilization of woody biomass also is emphasized in the federal government’s National Fire Plan, a strategy for planning and implementing agency activities related to wildland fire management. For example, a National Fire Plan strategy document cites biomass utilization as one of its guiding principles, recommending that the agencies “employ all appropriate means to stimulate industries that will utilize small-diameter, woody material resulting from hazardous fuel reduction activities.” Federal agencies also are carrying out research concerning the utilization of small diameter wood products as part of the Healthy Forests Initiative, the administration’s initiative for wildland fire prevention. Most of the federal government’s woody biomass utilization efforts are being undertaken by USDA, DOE, and Interior. Some activities are performed jointly. For example, USDA, DOE, and Interior signed a Memorandum of Understanding to promote the utilization of woody biomass, and USDA and DOE conduct a joint biomass grant program. Each department also conducts its own woody biomass activities, which generally involve grants for small-scale woody biomass projects, research on woody biomass uses, and education, outreach, and technical assistance aimed at woody biomass users. USDA, DOE and Interior have undertaken a number of joint efforts related to woody biomass. In June 2003, the three departments signed a Memorandum of Understanding on Policy Principles for Woody Biomass Utilization for Restoration and Fuel Treatments on Forests, Woodlands, and Rangelands. The purpose of the memorandum is “to demonstrate a commitment to develop and apply consistent and complementary policies and procedures across three federal departments to encourage utilization of woody biomass.” The departments also sponsored a 3-day conference on woody biomass in January 2004. To discuss woody biomass developments and to coordinate their efforts, the departments established an interagency Woody Biomass Utilization Group, which meets quarterly. Another interdepartmental collaboration effort is the Joint Biomass Research and Development Initiative, a joint USDA and DOE grant program authorized under the Biomass Research and Development Act of 2000. The program provides funds for research on biobased products. In fiscal year 2004, the two departments awarded $25 million to 22 projects, and cost sharing by private sector partners raised the value of the projects to nearly $38 million. While the program generally promotes all forms of biomass rather than targeting woody biomass, in 2004 the grant solicitation included woody biomass as an area of emphasis and, according to a USDA official, 10 projects emphasizing or incorporating woody biomass were funded that year, for a total of about $7.7 million. For example, the Hayfork Biomass Utilization and Value Added Model for Rural Development project in California received about $503,000 to support the design and early implementation phases of a biomass utilization facility, including a log sort yard, small log processor, and wood-fired electrical generation plant. Another California project, the Small-Scale, Biomass-Fired Gas Turbine Plants Suitable for Distributed and Mobile Power Generation, received about $242,000 to evaluate the economic benefits of using forestry residues for generating power in small-scale power plants. USDA and DOE also have collaborated on an assessment of biomass availability, including woody biomass, and have prepared a report summarizing their findings. In another interagency effort, BLM worked with DOE’s National Renewable Energy Laboratory (NREL) to identify and evaluate renewable energy resources—including biomass—on public lands, resulting in a February 2003 report titled “Assessing the Potential for Renewable Energy on Public Lands.” More recently, USDA and Interior entered into a cooperative agreement with the National Association of Conservation Districts in 2004 to promote woody biomass utilization. Activities to be performed by the association under the agreement include organizing national and regional workshops on woody biomass utilization and developing outreach materials to stimulate investment in small wood industries and bioenergy. USDA, DOE, and Interior also participate in joint activities at the field level. NREL and the Forest Service have collaborated in developing and demonstrating small power generators that use woody biomass for fuel. These generators, known as BioMax units, are being demonstrated at several sites, including a high school in Walden, Colorado, and a furniture- making business at the Zuni Pueblo in New Mexico. Figure 4 shows the BioMax 15 power generator. The Forest Service also collaborates with Interior in awarding and funding grants under the Fuels Utilization and Marketing program, a jointly funded grant program targeting woody biomass utilization efforts in the Pacific Northwest. Another collaborative effort at the field level involves a Forest Service rural community assistance coordinator specialist in the Southwest Region and includes officials from BLM and the state of New Mexico, as well as environmental group and utility company representatives. In addition to studying woody biomass availability and conducting market assessments, this biomass working group is proposing policy changes favorable to woody biomass. It also has studied barriers to biomass use and provided input on project designs so that projects are less likely to be challenged.