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, .t. <br /> Specific project goals: The LBI is designed to begin the formation of a Loca1 Bioenergy <br /> system, comparable to the e�isting Loca1 Food system. We envision the Upper Sangamon/Lake <br /> Decatur ��vatershed as a showcase and research platform for producing perennial energy grasses <br /> in locations, and using methods, designed to optimize co-production of bioenergy feedstock and <br /> water quality benefits. To achieve this vision, the LBI project goals are to <br /> (1) accelerate introduction of perennial energy grasses on the Central Illinois landscape, <br /> (2) demonstrate the use of renewable biomass for power and heat at a range of scales, and <br /> (3) help ensure that the transition to cellulosic bioenergy envisioned in federal energy polic�� <br /> is done in a way that enhances water quality, ecosystem health, and local economies. <br /> Strategies and activities to achieve project goals: AWI's e�isting funding agreement with the <br /> City of Decatur contains the following description of the Initiative's scope: <br /> Assist local farmers and landowners that want to begin growing energy grasses. <br /> This will include ��vorkshops, field days, fact sheets, web sites and other educational <br /> activities for prospective growers. AWI plans to coordinate an energy grass education <br /> area at the 2009 Farm Progress Show. [Note: This was successfully completed. This <br /> major outdoor farm show will retum to Decatur in 20ll.] In addition to technical <br /> assistance, AWI and our partners will provide financial and in-kind support for <br /> establishing energy grasses. AWI will work with the Ma.con County Soil and Water <br /> Conservation District to implement the Big and Long Creek subwatershed project, which <br /> includes harvestable filter strips designed to protect Lake Decatur. <br /> Develop and demonstrate landscape design concepts. Production of energy grasses <br /> involves synergies and trade-offs between multiple objectives. AWI will convene a <br /> Landscape Design Leaming Group to address questions of what to grow, where and ho�� <br /> to grow it in order to produce energy feedstock, protect water quality, and achieve other <br /> conservation objectives. AWI and our partners will develop and test planning techniques <br /> to identify optimal locations for energy grasses. We will pursue grant funding <br /> opportunities for watershed-scale R&D projects. <br /> Develop markets for energy grasses and related benefits. The most likely near-term <br /> markets for fuel made from energy grasses are home or commercial heating systems and <br /> industrial or utility boilers. AWI will work with businesses, entrepreneurs, and investors <br /> to assess options and we will conduct tests and demonstration projects on the most <br /> suitable options. AWI will work with appropriate agencies to identify and pursue <br /> biomass-related economic development opportunities such as local manufacturing of <br /> equipment to make and use grass fuel. Economic viability of energy grasses may depend <br /> on placing a value on environmental benefits derived from their production and use. For <br /> example, adoption of policies to address climate change could enhance the economics of <br /> bioenergy systems that significantly reduce CO2 emissions by increasing the value of <br /> carbon credits. T'he Initiative will include pilot tests of"green payment" mechanisms for <br /> greenhouse gas reduction, water quality, and other conservation benefits. <br /> Our work to date has shown us that the biggest challenge for the success of the Local Bioenergy <br /> Initiative is the fact that no local market presently e�ists far grass biomass, other than hay. WFF <br /> Agricultural Watershed Institute—Local Bioenergy Initiative proposal narrative—2/26/10—Page 2 <br />