R2013-48 AUTHORIZING AGREEMENT WITH AGRICULTURAL WATERSHED INSTITUTE

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Mr. Keith Alexander, City of Decatur—May 10,2013—Page 3 3. Develop markets for perennial biomass crops and related benefits. In order to get biomass crops planted in the Lake Decatur watershed and elsewhere, it must make economic sense to farmers and land owners. Market development is therefore of critical importance. Energy grasses can be used in the near term for home or commercial heating or for industrial scale heat and power generation. With funding from other sources, AWI purchased biomass densification equipment and established a cost-share program for biomass heating units to heat homes or farm buildings. During the period of this agreement, AWI will help to lead the efforts of the Illinois Biomass Working Group and the GLBW Perennial Biomass Initiative to expand production and use of grass biomass for home or commercial heating. We will work with industrial and institutional partners to conduct tests and demonstration projects for the purpose of developing a larger market for grass biomass. To enhance the economic viability of bioenergy systems, AWI will design and demonstrate "green payment" mechanisms to incentivize environmental benefits such as greenhouse gas reduction, soil conservation, water quality improvement, and wildlife habitat. The vision for the Local Bioenergy Initiative is to make the Lake Decatur Watershed a national showcase for perennial crops grown for both renewable energy & enhanced water quality. The Sustainable Decatur Plan includes Year 2020 Indicators of 10,000 acres of perennial energy crops planted mainly in the Lake Decatur watershed and 75,000 tons/year of locally-grown biomass used or exported. Our biomass work to date has identified technical and economic barriers to wide adoption of biomass crops. During the period of this agreement, AWI will help lead a GLBW regional initiative to develop and implement an action plan with strategies to overcome these barriers and expand markets for perennial biomass and ecosystem services. Bioenergy technology, public policy and programs, and economic circumstances are evolving rapidly. AWI, in consultation with City staff, will monitor developments and may make adjustments within the general scope set forth herein to meet challenges and pursue opportunities that may arise. No formal amendment of this agreement will be necessary for such adjustments unless, at the discretion of the City,they represent a significant change to the scope of work. Shared Learning Program: The proposed City funding will be used to support AWI's seminars, workshops and other educational events including an annual Sangamon Watershed Celebration. These events bring together researchers; government policy makers and program managers; agricultural producers, managers and landowners; environmental professionals and advocates; and other watershed stakeholders. Program objectives are (1) to explore ideas for economically and environmentally sound resource management and (2) to foster improved mutual understanding and cooperation among urban and rural watershed stakeholders. AGREEMENT FOR FINANCIAL SUPPORT Upon acceptance by the City, this letter shall constitute an agreement between the City of Decatur and AWI. The City agrees to provide up to $41,667 in financial support to AWI during the period from May 2013 through December 2013 for the work described,herein. This agreement may be terminated by either party provided that 5 calendar days written notice has been received by the other party.