R2011-10 AUTHORIZING AGREEMENT WITH AGRICULTURAL WATERSHED INSTITUTE

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THE AGRI�ULTURAL WATERSHED INSTITUTE 4004 COLLEGE PARK ROAD DECATUR, ILLINOIS C2521 TE�. (217)877-5640 FAx(217)877-5641 January 24, 2011 Mr. Keith Alexander Director of Water Management City of Decatur One Gary K. Anderson Plaza Decatur, IL 62523 Re: Proposed Agreement for Financial Support of the Local Bioenergy Initiative Dear Mr. Alexander: The Agricultural Watershed Institute (AWI) is pleased to submit this proposed agreement for consideration by the City of Decatur (City). AWI is a 501(c)(3) nonprofit organization. The City currently provides unrestricted financial support in the amount of$20,000 per year for AWPs research and educational activities in accordance with an agreement dated May 10, 2010. The City also provides project-specific financial support of $52,000 per year to AWI for the Local Bioenergy Initiative. This proposed agreement covers continuation of City support for the Local Bioenergy Initiative described herein for a period of two years. PROJECT BACKGROUND In 2006-07, AWI convened a biomass energy learning group including a broad range of stakeholders and experts. The project report, "Establishing a Grass Energy Crop Market in the Decatur Area" (on-line at www.agwatershed.org), concluded that green payments related to environmental benefits will be needed to make perennial energy crops economically viable and presented a detailed roadmap for co-production of bioenergy feedstock and ecosystem services. In 2008, AWI began a long-term project called the Local Bioenergy Initiative. The Initiative is a collaborative project to begin growing and using perennial energy grasses in Central Illinois to produce multiple environmental benefits including renewable energy, wildlife habitat, and reduction of sediment and other pollutants in Lake Decatur. The Initiative is designed to achieve economic development objectives related to production of biomass energy. AWI works with partners including farmers, land owners, large and small businesses, university scientists, extension educators, governmental units, and nongovernmental organizations to implement key elements of our energy grass roadmap. AWI envisions the Lake Decatur watershed as a showcase and research platform for producing biomass energy and also protecting water quality. This vision is reflected in the goals and strategies contained in the Sustainable Decatur Plan.