R2009-03 AUTHORIZING AGREEMENT WITH AGRICULTURAL WATERSHED INSTITUTE

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� � , , � THE AGRICULTURAL WATERSHED INSTITUTE 4004 COLLEGE PARK ROAD DECATUR, ILLINOIS 62521 TE�. (217)877-5640 FAx(217)877-5641 January 8, 2009 Mr. Keith Alexander Director of Water Management City of Decatur � One Gary K. Anderson Plaza Decatur,II. 62523 Re: Pro sed A eement for Financial Su rt of the Local Bioenergy Initiative Po �' Plm Dear Mr. Alexander: The Agricultural Watershed Institute (AWI) is pleased to submit this proposed agreement for consideration by the City of Decatur. AWI is a 501(cx3) nonprofit organization. The City of Decatw currently provides unrestricted financial support in the amount of$30,000 per year for AWI's research and educational activities in accordance with an agreement dated May 7, 2008. This proposed agreement covers additional praject-specific financial support from the City to AWI for the Local Bioenergy Initiative described herein. THE LOCAL BIOENERGY INITIATIVE In 2006-07, AWI convened a biornass energy learning group including a broad range of stakeholders and experts. This project was the first Illinois demonstration of the Green Lands, Blue Waters(GLBW) model of change in which stakeholder/expert groups share knowledge and ideas to expand markets for perennial crops. The project report, "Establishing a Grass Energy Crop Market in the Decatur Area" (on-line at www.a�watershed.or�;) concluded that green payments related to ecosystem services will be needed to make perennial energy crops economically viable and presented a detailed roadmap for co-production of bioenergy feedstock and ecosystem services. The Local Bioenergy Initiative described in this agreement is the next phase of AWI's energy grass program. AWI will work with sta.keholders including farmers, landowners, entrepreneurs, scientists, governmental units, and nongovernmental organizations to implement key elements of the roadmap. In particular, the Initiative will promote the introduction of perennial energy grasses on the agricultural landscape in locations and using management practices designed to reduce soil erosion and sedimentation, enhance water quality, and achieve other environmental and economic objectives in the Lake Decatur Watershed. AWI will collaborate with public and private entities to establish markets for perennial energy grasses and related ecosystem services.