R2014-44 AUTHORIZING WATERSHED RESEARCH AND EDUCATION AGREEMENT WITH AGRICULTURAL WATERSHED INSTITUTE

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2. Develop and demonstrate landscape design concepts. Concept development was a major focus in 2013 and a solid foundation was put in place to ramp up on-the-ground research and demonstrations in 2014 and beyond. AWI worked with one local farmer to plan conversion of a sloping field near Cerro Gordo to perennial hay Perennial biomass crops on Central Illinois farms crops including alfalfa and native prairie 10 grasses as shown in this diagram. This field is crops will be laMawnClbepla tedonia# � nted on a being planted in 2014 with cost-share assistance a. sloping site for forage and ``•'"••enhanced water quality: from City funding. The EIU on-farm i w '. . • Alfalfa demonstration plot will also be planted in 2014. Easterngamagrau • Warm season grass mix The Multifunctional Perennial Cropping System ° """" ," develop,grasses and alta#fa stems may be project (Attachment 1, #8) will kick off in 2014 usedasteedstock for and continue for five years. During 2013, Steve :, broencrgvor broproducts" John helped to form the Midwest Conservation ✓' Biomass Alliance (MCBA) and continued to lead the Green Lands Blue Waters (GLBW) Mind rwarrnaoason#ruses biomass working group. Co-production of '" �» = : -g=• biomass and ecosystem services (water quality, wildlife habitat, greenhouse gas reduction, etc.) is a principal goal. In 2013,AWI wrote a discussion paper on this topic. 3. Develop markets for perennial biomass crops and related benefits. AWI takes very seriously the Sustainable Decatur Plan goal of 10,000 acres of biomass crops in the Lake Decatur watershed by the year 2020. We recognize the challenges to developing a market that size in that time frame and are taking important steps to meet the challenge. During 2013, we worked closely with GLBW and MCBA on strategic planning. To achieve the 2020 goal, local farmers will need a significant market for biomass crops grown animal feed, bioenergy, or bio- based products. We maintain communication with ADM and other corporations and we are cautiously optimistic about prospects for a local market for perennial grasses in the next few years. We also continue to work with EN and other potential markets for grass biomass. Use of biomass for residential, commercial, or farm heating is another possibility. AWI provided grass biomass to several equipment manufacturers for testing and prepared a report on available units. We are assisting a WIU researcher in a market study of biomass heating(Attachment 1,#5). "Green payments" for environmental benefits related to perennial biomass crops will be needed to make these crops economically viable in prime agricultural areas. AWI is collaborating with GLBW partners to develop the "landlab" concept for watershed-scale experimentation with biomass production, energy conversion technologies, and innovative policies to support bioenergy. This will be a major emphasis of the GLBW Perennial Biomass Initiative, which Steve John is co-leading. To provide additional information on 2013 progress and plans for 2014 and beyond, a poster AWI prepared for the GLBW annual conference and the goals/outputs/outcomes from AWI's 2014 Walton Family Foundation grant are attached. Attachments: 1) AWI Lake Decatur and biomass-related project list(1 page) 2) Local Bioenergy Initiative poster,prepared for 2013 Green Lands Blue Waters conference (original large poster edited to fit on 2 letter size pages) 3) Outputs and outcomes for Walton Family Foundation grant to AWI for Local Bioenergy Initiative (1 page) 3