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

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I 1 2.The Challenge of Market Development Transformational Change: Perennial Biomass,Clean Water, & A local stakeholder learning group convened by AWI in 2006-07 Wildlife concluded that making grass pellets for residential heating or co- firing biomass with coal in industrial boilers was not economically viable without significant incentives to make perennial biomass price The Local watershed Bioenergy Initiative is advancing to s vision of the Lake competitive with fossil fuels. The Local Bioenergy Initiative is Decatur watershed as a laboratory r which to study and demonstrating production,processing,and use of perennial grasses demonstrate continuous living cover systems. Scientists sometimes lessons that can be approach AWI,or vice versa,about collaborative research in the for heating on a small scale in order to learn applied when economic conditions for scale le are in place. watershed. Several such projects are underway or have pending proposals. The city-farm partnership and the extensive data record from Illinois State Water Survey monitoring are big pluses. 7T'17 ? When small,affordable pellet sA mills and heating appliances designed for grass biomass AWI,ISWS,and the Macon and Champaign County SWCDs are A become readily available, conducting a project,with Illinois EPA and City of Decatur funding � .. Local Bioenergysystems to develop Total Maximum Daily Load implementation plans for comparable to Local Food nutrients in two Lake Decatur subwatersheds.Perennial crops and systems will be able to expand the Green Economy.This cover crops are among the scenarios being modeled by ISWS. biomass fumace was manufactured in Taylorville,IL. It is good to remind ourselves that cropping patterns have changed over the past century and may be about to change again.Climate A Community Supported Energy farmer could grow energy grasses and make change,the shift from fossil fuels to renewables,and Gulf hypoxia pellets or briquettes for homelfarm heating.AWI has cost-shared installation may represent drivers of change an a par with the introduction of of grass-buming heating units for two homes and one farm building. inorganic fertilizer after World War li. We also support development If so,there is a window of opportunity to make sure we are moving of larger potential markets. For toward greater sustainability and resilience. GLBW envisions a example,Eastern Illinois University,in Charleston,a, transition to a more sustainable Midwestern landscape as a new replaced its old coal-firedgeneration of multifunctional agricultural systems,including more } heating plant with a Renewable continuous living cover,gain acceptance. Perennial biomass crops Energy Center. It is initially 3 used for animal feed,renewable energy,or bio-based products can burning wood chips. Elu is play an important role in making this vision a reality. working with FDC Enterprises and AWI on steps toward testing a grass—wood blend. photocredK:r-w � Current farm and energy policies may actually discourage adaption of perennial biomass crops.For example,crop insurance may result AWI works with state and regional networks including the Illinois Biomass in floodprone or poorly drained acreage remaining in annual crops Working Group and Green Lands Blue Waters to overcome barriers so that instead of being converted to perennials that can thrive in wet Midwestern grass energy markets can get past the chicken-and-egg problem, conditions. On the energy side,perhaps Renewable Fuel Standard regulations could do more to incentivize perennials managed for clean water and wildlife habitat in addition to bioenergy feedstock. 3. Multifunctional agricultural landscapes Incentives to Lake Decatur watershed producers funded by the City are in effect green payments for source water protection. To achieve the transformational potential of perennial biomass crops Introduction of perennial biomass crops in corn-soybean on a large scale,public policies and private market mechanisms are watersheds like the Upper Sangamon offers great opportunities to needed to incentivize their environmental benefits. apply and evaluate the Green Lands Blue Waters(GLBW)vision for multifunctional agriculture.Through 2013,the Local Bioenergy Initiative has provided incentives and technical assistance for 10 Heart of the Sangamon Ecosystem Partnership members: energy grass plots totaling about 50 acres,not including the Farm City of Decatur•Macon County Conservation District•Macon, Progress Show and Caterpillar demonstration plots.Most producers Platt,and Champaign County Soil&Water Conservation Districts• are not interested in planting bioenergy crops until they know there Natural Resources Conservation Service•Agricultural Watershed will be a market. Institute•University of Illinois Extension•Macon and Platt County Farm Bureaus•Sanitary District of Decatur•Prairie Rivers Network Perennial biotnassaopsmtCentralldincNs�rats with no bioenergy market ; .Decatur Audubon Society•Pheasants Forever•The Nature yet in place,AWI encourages I � �• producers to consider Conservancy+Allerton Park•Millikin University•Illinois State Water Survey enharxeA.wmraw.kv harvesting their plots as Y pn warm season forage.At our j 2013 field days,we began Additional participants in the(ACaI Bioenergy Initiative: offering assistance and Cooperating farmers&landowners•Caterpillar Inc.•Illinois Biomass Working Group University t,. incentives for perennial •Eastern Illinois Univers •FDC "- on..wsr.ucv,uaM,. crops,including alfalfa, • g Enterprises*Chip Energy•Energy Biosciences Institute Argonne planted for forage plus water quality benefits. National Laboratory•Richland Community College ew..v�.r..r _�•;' Funding:City of Decatur•Walton Family Foundation•Illinois Environmental Protection Agency Plans are proceeding for forage crops to be planted in at least two locations in 2014. The 27-acre sloping site shown here is expected to be planted mainly in Disclaimer; Opinions,findings,conclusions,and recommendations expressed alfalfa,with warm season prairie grasses in swales and floodprone areas. herein are those of the author and may not reflect the views of partner Forage may be a transitional use until bioenergy markets develop. Or forage organizations and funders. may tum out to be the best use for these crops. In either case,such sites create opportunities for on-farm studies of the economic and environmental xxos outcomes of multifunctional perennial cropping systems. THE AGRICULTURAL Preparedfarthe Green Lands Blue waters WATERSHED INSTTTUTE AnnualConferenc4Movember2Dr3