Issuu

Vol. XII No. 2

March /April 2018

Serving Soil, Mulch, Compost & Wood Pellet Producers www.SoilandMulchProducerNews.com

Attention Readers !

NEWS

Cover photo courtesy of Mulch Manufacturing.(www.mulchmfg.com)

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Transportation Issues, Retail Price Wars Affecting Mulch/Soil Industry

By Ken McEntee

or almost 40 years, Hardwood Mulch Corp., located about 35 miles southeast of Richmond, Va., hauled loads of wood mulch to a loyal customer in Maryland. That ended this year because of new interstate trucking regulations that mandate the use of electronic logging devices (ELDs) to monitor a driver’s hours of service, said Garland Anderson, owner of the company. ELDs synchronize with a vehicle’s engine to automatically record driving time. “We gave up on hauling mulch out of the state,” Anderson said. “I can’t be sure every day that my driver is going to be at his finish point when his time runs out. When you keep a customer for 39 years, you’re doing something right. He’s 140 miles away and I’ve even encouraged him to buy something closer, but he’s always been willing to pay the freight because he couldn’t find a product that matched my quality. But now I’m only going to haul to customers in Virginia.”

Transportation issues, including the new ELD regulations and a nationwide driver shortage, are problematic for the mulch and soil business, said Robert LaGasse, executive director of the Mulch and Soil Council (MSC), of Shallowater, Tex. “The ELD regulations have gotten everybody crazy,” LaGasse said. Trucking is one of several challenges cited by mulch producers moving into the busiest season of the year. Others include price erosion caused by increased competition and a flood of inferior quality products in the market, according to survey responses and conversations with producers from around the U.S. However, most producers contacted for this article are optimistic that sales this year will exceed last year’s numbers. About half of the respondents to a market survey by Soil and Mulch Producer News reported a decline in bulk sales in 2017 relative to 2016, while about 30 Continued on page 3

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Transportation Issues, Retail Price Wars Affecting Mulch/Soil Industry PUBLICATION STAFF Publisher / Editor Rick Downing Contributing Editors / Writers Kenneth Artz H. Sterling Burnett Bonner R. Cohen P.J. Heller Ken McEntee Sandy Woodthorpe Production & Layout Barb Fontanelle Christine Mantush Advertising Sales Rick Downing Subscription / Circulation Donna Downing Editorial, Circulation & Advertising Office 6075 Hopkins Road Mentor, OH 44060 Ph: 440-257-6453 Fax: 440-257-6459 Email: downassoc2@oh.rr.com For subscription information, please call 440-257-6453. Soil & Mulch Producer News is published bimonthly by Downing & Associates. Reproductions or transmission in whole or in part, without written permission of the publisher, is prohibited. Annual subscription rate U.S. is $19.95. Outside of the U.S. add $10 ($29.95). Contact our main office, or mail-in the subscription form with payment. ©

Continued from page 1

percent reported higher bulk sales. The opposite was true in the bagged mulch market, with about half reporting better sales in 2017 and almost 40 percent reporting a decline.

Trucking issues

“E

LDs have been around for a number of years,” LaGasse said. “But a mandate was implemented in December with a firm compliance date of April 1, so now all trucks are supposed to have ELD devices. Allowable hours of service have been reduced from 14 to 12 and driving time is limited to 10 hours.” Although the ELD compliance is for interstate truckers, individual states are expected to adopt similar regulations for intrastate trucking. Texas was the first state to issue an ELD requirement, with a compliance date of December 19, 2019. Trucks carrying agricultural products during harvest season who stay within a 150-air-mile radius are exempt from the Texas mandate. Exceptions to the new federal rule include drivers who require logs no more frequently than eight days per 30-day period and drivers of vehicles manufactured before the model year 2000. According to DAT Solutions, a Beaverton, Ore.-based marketplace of news, trends and analysis of the truckload freight business, ELDs are likely to have a 3 to 5 percent impact on carrier productivity overall, but not all hauls and carriers will be affected equally. “The impact will be felt disproportionately on longer, one-day hauls of more than 450 miles and also on short-haul operations that push the current 14-hour limits today,” DAT said. “Any time ELD requirements cause trips to spill over into a second day, it means rescheduled appointments, missed reloads and a host of operational issues.” For mulch producers, LaGasse said, probably the biggest problem with the new mandate is that the time a driver waits to be loaded and unloaded counts toward his driving time. “If a driver drives an hour to a big supplier and has a long line, he could be waiting two hours to get loaded, before sitting for another hour while they load him up,” LaGasse said. “That waiting around cuts into the driving time. (MSC) has a committee looking to apply for an exemption with the Federal Motor Carrier Safety Administration (FMCSA) to let mulch haulers go back to 14 hours of service. Exemptions have been made to other industries like perishable goods. The nursery industry is applying for an exemption based on the perishability of its plants. The concrete and asphalt businesses have gotten exemptions because of the seasonality of their businesses.

Because we are such a heavy seasonal business, we hope to get a similar exemption.” LaGasse said MSC also is looking into getting a credit for the time a driver waits for loading and unloading. “But that isn’t going to make more trucks available,” he added. Because of a shortage of drivers across the country - estimates range between 300,000 and 1 million short - trucking will continue to be a problem not only for the mulch business, but for all businesses, says Larry Doose, Silva Corp., Princeton, Minn. “We’ve had a challenge getting drivers here over the past few years because the pool of available drivers is shrinking, but as far as the electronic logging, we were ready for that back in December and it is not impacting us. I understand that it is impacting some other people,” Doose said. Pete Adkins, of Columbia Cedar, Kettle Falls, Wash., said the ELD rules may drive up the price of shipping. “When the driver is sitting at a destination to get loaded or unloaded it is counting all their time regardless of whether they are driving or not,” he said. “It is causing less trips for the drivers and therefore they need to get paid more, so its just a big battle to pay for freight.” The result, at least in some cases, is higher prices for mulch. “The availability of trucks is a growing problem and it’s going to make things more expensive,” LaGasse said. “High demand and low availability equals a big price.” “People have been used to paying a certain price and now it has gone up quite a bit,” Adkins added. “One of our larger accounts said he has had to send a message out to all his customers and explain why the prices have to come up.”

Big boxes and downward prices

eanwhile, according to Eric Laszewski, of Waupaca Northwoods LLC, of Waupaca, Wisc., low prices of colored mulch at national chains are devaluing the business. “The big box boys are going at it and making colored mulch a commodity item,” he said. “Walmart is out there everyday at $1.96 and Lowes and Home Depot go head to head with their five bags for $10. Small players in the market can’t compete at $1.96 a bag. And the big boxes aren’t creating new consumers for the product. They’re just taking existing consumers and giving them a cheaper product.” Private labels of national chains are increasingly taking a larger market share of the retail mulch market, Laszewski said. “If you walk into a Lowes or a Home Continued on page 8 March /April 2018 Soil & Mulch Producer News

Soil

Mulch Producer NEWS

Another Carbon Dioxide Tax Proposal Fails in Washington State By H. Sterling Burnett

he state of Washington’s latest attempt to pass a carbon dioxide tax has failed, with its sponsors withdrawing the bill from consideration. Senate Bill 6023 would have imposed a tax of $12 per metric ton of carbon emissions on the sale or use of fossil fuels such as gasoline and natural gas beginning in 2019. Under the bill, in 2021 the carbon tax would have started increasing by $1.80 per ton annually until it reached $30.00 per metric ton. A legislative analysis indicated the tax would increase gasoline prices in the state by 10 cents per gallon by 2020.

Setback for Inslee

he Senate’s decision against the bill was a new setback for Washington Gov. Jay Inslee, who has pushed for a carbon dioxide tax since becoming governor in 2013. Although some other states have imposed cap-and-trade schemes on their economies, raising the price of fossil fuels in an effort to reduce carbon dioxide emissions, SB 6023 would have made Washington the first to impose a direct tax on fossil fuels based on the amount of greenhouse gases they emit. Inslee has said a carbon dioxide tax would be less complicated to administer than the cap-and-trade approach adopted in California and several Northeastern states.

gain enough support for the tax. In a last-minute attempt to garner enough votes for passage, the bill’s sponsors reduced the proposed tax from $20 per metric ton of carbon dioxide emitted, as Inslee had called for, to $12.00 per metric ton, but the effort still fell short. Todd Myers, environmental director at the Washington Policy Center, says the fact the carbon tax failed to proceed to a vote this year is particularly striking. “Gov. Inslee has proposed some kind of carbon tax almost every year of his administration, and none of them have even received a vote in any legislative chamber,” Myers said. “Notable about the failure this legislative session is that Democrats control both legislative chambers and the governor’s mansion.”

Goal of ‘Expanding Government’

yers says Washington state politicians’ efforts to impose a carbon tax are not primarily about protecting the environment. Instead, he says, the proposed tax is about increasing the power of government and environmental special interests to control the state’s economy. “After opposing Washington’s revenue-neutral carbon tax two years ago, it is clear expanding government is more important to the environmental community than climate change, which they claim is an ‘existential threat’ to the planet,” said Myers. “The priority is not with reducing environmental impacts but on growing government by creating new programs to direct Washington’s economy. “Ironically, with funding from out-of-state billionaires, the environmental community is now proposing a carbon tax with a price tag even more expensive than the proposal that failed in February, one which would raise gas prices 15 cents per gallon, increasing by an additional two cents per gallon every year, plus inflation,” Myers said. “Although the groups pushing the tax claim it and the revenue it would raise are intended to reduce carbon dioxide emissions, the spending is governed by an ‘Environmental and Economic Justice Panel’ that requires money be spent for a range of special-interest projects not limited to climate mitigation.”

Party Takeover Changes Nothing

H. Sterling Burnett, Ph.D. (hsburnett@heartland.org) is a research fellow at The Heartland Institute. This article was reprinted with permission from heartland.org, a product of The Heartland Institute (https://www.heartland. org/news-opinion/news/another-carbon-dioxide-tax-proposal-fails-in-washington-state).

Prior Efforts Failed

revious efforts to impose a carbon tax in Washington stalled for a variety of reasons. When Republicans controlled the legislature, they refused to take up the Democrat Inslee’s proposals for a carbon dioxide tax. Inslee attempted to impose a carbon dioxide tax administratively in 2017, directing the state’s Department of Ecology (DOE) to enact a Clean Air Rule requiring large industrial carbon dioxide emitters to pay a fee for their emissions. Affected industries challenged the rule in court and won when Thurston County Superior Court Judge James Dixon struck down the rule on December 15, 2017. Dixon ruled DOE lacked authority to impose the fee without legislative approval. In addition, Washington voters rejected a ballot measure to impose a carbon tax in 2016.

ven with Democrats taking control of the legislature in November 2017, giving the party control of both the House and Senate for the first time since Inslee became governor, proponents were unable to

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Oregon Proposes Expensive Carbon Cap Legislation By Kenneth Artz

regon lawmakers unveiled draft companion bills in the state Senate and House designed to force reductions of greenhouse gas emissions. Senate Bill 1507 and House Bill 4001, the Clean Energy Jobs Bill (CEJB), would set strict limits on greenhouse gas emissions from three economic sectors accounting for 80 percent of carbon dioxide emissions in Oregon. Carbon dioxide emitters in transportation, electric and gas utilities, and industry would be required to purchase allowances for their output. The amount of carbon-dioxide-equivalent greenhouse gas emissions permitted by the state, known as the carbon cap, would be reduced over time. The “cap-and-invest” bill attempts to reduce the state’s greenhouse gas emissions to 45 percent below 1990 levels by 2035 and 80 percent below 1990 levels by 2050. News reports estimate the annual revenues generated from the allowance auctions will top $700 million annually.

High Costs, Financial Support

estimates show Oregonians would pay higher prices for energy Economic and goods and services if CEJB becomes law. Economic analyses indicate Oregon drivers would see an immediate 0.16 cents per gallon increase in the price of fuel, adding $50 to $125 more per month to drivers’ fuel bills, depending on where in the state they live. Portland General Electric (PGE), one of the largest utilities in Oregon, estimates CEJB would raise the price of electricity for residential ratepayers by 6.6 percent in 2021 and by as much as 27 percent by 2030, with businesses facing even steeper increases. The proceeds of the allowance auctions would be divided among a variety of programs, with portions of the revenues directed toward homeowner energy efficiency upgrades, rate credits for lower-income households, and to provide financial support, mental health services, and job training for workers and investment in communities affected when companies close or move to other states without carbon restrictions and hence with lower energy costs.

‘No Impact on the Environment’

state Sen. Alan Olsen (R-Canby) says the bill will do nothing Oregon to fight climate change. “If cap and invest passes in Oregon, it will have no impact on the environment at all, because in a global environment Oregon produces one-tenth of one percent of the global emissions,” Olsen said. “Reducing Oregon’s emissions by 1.4 million metric tons per year will be insignificant in the large scale of world emissions. “Under the Paris climate agreement, China will emit 250 million metric tons of CO2 per year while we [in the United States] reduce our emissions,” said Olsen. “Even if Oregon could go to zero emissions tomorrow, it would have absolutely no impact on climate.” Tim Benson, a policy analyst for The Heartland Institute, which publishes Environment & Climate News, says CEJB will have no effect on climate change. “Because Oregon isn’t even responsible for 1 percent of U.S. greenhouse gas emissions, even if the state eliminated all of its greenhouse gas emissions its climate impact would be infinitesimal,” Benson said.

Forecasts High Costs

lsen says Oregonians will pay a high price for the CEJB. O “The bill is designed to make any producer of CO2 over 25,000 metric tons pay for allowances for the privilege of emitting,” said Olsen. “Electricity prices would rise significantly due to this bill. “At full value, Pacific Power would have to pay over $136 million for their allowances, PGE would have to pay over $103 million, while natural gas suppliers would have to pay over $195 million for their greenhouse gas output,” Olsen said. Olsen says provisions in the bill to reduce the cost to low-income residents will push others’ energy costs even higher. “The bill would give power companies some free allowances to sell to help mitigate the huge price rise faced by Oregonians with low or fixed incomes,” said Olsen. “If you do not fall into that category, you will face much higher electric bills. “Because fuel prices will rise under cap-and-invest by as much as $0.19 per gallon, transportation costs will go up, which limits peoples’ free choice of mobility,” Olsen said. “Higher electricity and heating costs and other higher prices resulting from the bill will limit peoples’ ability to pursue a good life, liberty, and happiness.”

Hitting Rural Families

says California’s experience shows CEJB would hit rural Benson households especially hard. “From what we’ve seen in California, Oregonians will likely see instantaneous gas price increases of up to 0.20 cents a gallon from CEJB,” Benson said. “This will mean immediate cost-of-living increases, especially for rural families who, naturally, use more gasoline.”

‘Do No Harm’

n written testimony submitted to the House Environment and Energy ICommittee Committee and the Senate Environment and Natural Resources for hearings on Oregon’s cap-and-invest bills, John Charles, president of the Cascade Policy Institute, says even if legislators believe greenhouse gas emissions must be limited, legislation is unnecessary. “[Even] assuming that reducing carbon dioxide has some local benefit, the relevant trends are already moving in the right direction,” Charles stated in his testimony. “According to the most recent legislative report from the Oregon Global Warming Commission, the ‘carbon intensity’ of Oregon’s economy—that is, greenhouse gas emissions/unit of state GDP—dropped 64% from 1990 through 2015. “This is a spectacular achievement, and it is driven almost entirely by market forces,” said Charles in his testimony. “There is no crisis in Oregon regarding carbon dioxide emissions. This is a case where you should simply ‘do no harm’ by staying out of the way.” Kenneth Artz (kartz@heartland.org) is a news reporter for The Heartland Institute. Artz has more than 20 years’ experience in nonprofit organizations, publishing, newspaper reporting, and public policy advocacy. This article was reprinted with permission from heartland.org, a product of The Heartland Institute (https://www.heartland.org/news-opinion/news/oregon-proposesexpensive-carbon-cap-legislation). March /April 2018 Soil & Mulch Producer News

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Mulch Producer NEWS

Transportation Issues, Retail Price Wars Affecting Mulch/Soil Industry Continued from page 3

Depot, they are going to push their private label, they’ll maybe carry a Scotts product or a regional supplier,” he said. “What we’re seeing more and more is that the private labels are eating up more of the volume, because from the average consumer’s perspective, why would I pay more for a Scotts bag when I can get this other stuff for a fraction of the price.” It isn’t only national retailers pushing prices down, according to Anderson. He said he pays $500 to $600 a load for a clean, pre-ground raw material - mainly from logging operations and bark from sawmills. Now, he said, he is competing with new players who charge a tipping fee for yard debris and other material and undercut him on the price of their product. “One of my most rapidly growing customers has just cut his purchase from me by well over half,” Anderson said. “The bottom line of it was it was a dollar a yard cheaper. What are you going to do? Can I cut my price? Sure. Then the new guy that came in will cut his price. Who wins? The customer. He’s getting it for less and less. But what gets thrown under the bus is quality. I’ve been doing this for 43 years and I am not the new kid on the block. If people don’t want quality then I’m the wrong person to call. I am not cutting my price… there’s no future in that.”

Strong Building Industry

espite a rainy spring in some regions and late snows in others, most survey respondents are generally optimistic about a strong year for bagged mulch sales, with slightly less optimism about bulk sales. “We had a relatively good year last year, Doose said. “Now we have

12 inches of snow on the ground as we speak so we’re going to be four to six weeks behind last year’s schedule. Hope we can catch up. We talked with other people further south and they had a slow start too, but they are already caught up. I think the season will be crammed into a shorter time period.” Doose said he is optimistic about the economy. “Short of having a major world event out there I think things will go just fine,” he said. According to Beau Gibney, of Green Vision Materials, Newbury, Ohio, “We already see an increase in the demand for packaged material. We also anticipate bulk to increase but we expect a drop as we are seeing more folks getting into the business largely due to the availability of raw materials.

A Good Business

espite the challenges of trucking and product price pressure, Anderson said mulch sales is still a good business to be in. “I started this business with my brother more than 40 years ago and it isn’t getting any easier,” he said. “Every morning when I wake up I don’t feel like I’m cursed. I go out to a business that I own. It’s all mine and I still like it.” Ken McEntee is editor and publisher of Composting News (www. compostingnews.com). He can be reached at ken@recycle.cc.

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ubstituting various amounts of biochar for peat moss in greenhouse and nursery growing applications – including the total elimination of peat from the potting substrate and replacing it with biochar – resulted in similar plant growth, according to a recent study. “Biochar is a promising substitute for peat . . .” researchers reported. The study, conducted at the University of California-Davis, was initially spurred by a graduate student looking into various combinations of non-traditional organic components of potting substrates, such as sawdust, bark and biochar. That eventually led to a yearlong study into substituting biochar for widely used peat moss in potting mixes. Andrew Margenot, formerly at UCDavis and now an assistant professor in the Department of Crop Sciences at the University of Illinois Urbana-Champaign, said the key to the study was substituting biochar for peat, rather than simply adding it to the soil-free substrate. “The majority of studies look at the addition of biochar as an amendment, where they add biochar on top of an already made peatbased substrate,” he explained. “Substitution is different, because it means that the final mass or volume of the substrate is the same. We’re going to swap out part of that substrate for another component. That’s why we looked at substitution explicitly. We’re substituting out the peat moss component of the substrate.” Researchers took a standard mix of 70 percent peat moss and 30 percent perlite and substituted biochar in 10 percent total volume

increments for the peat (i.e. 10 percent biochar to 60 percent peat and 30 percent perlite all the way to 70 percent biochar, 0 percent peat and 30 percent perlite). Other studies have used relatively low substitution rates, Margenot noted. Biochar is similar to charcoal and can be created from agricultural, farm or animal waste through gasification or pyrolysis, a form of incineration that chemically decomposes organic materials by heat in the absence of oxygen. The study used commercially available biochar produced from softwood via pyrolysis. That combination would have an extremely high pH and would allow researchers to see what effect a high biochar substitution rate had on marigolds grown from seed. The biochar had a pH of 10.9, which Margenot described as “ridiculous for trying to grow things.” In contrast, peat has a pH of 4 or 5, he said. “One hypothesis that we had was there might be a negative effect if you use biochar at very high rates,” Margenot said. That proved not to be the case. Marigolds grew and flowered just fine, even when biochar replaced all of the peat moss in the potting mix, he reported. “Full substitution of biochar for peat in soil-free substrate did not have negative impacts on marigold growth and flowering,” the study said. “This study demonstrates that softwood biochar can be considered as a full replacement for peat in soil-free substrates, and even at high rates (70% total substrate volume) does not require pH adjustment for marigold production.” Continued on page 12

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Study Claims Biochar Viable Substitute for Peat Moss in Greenhouses Continued from page 10 Marigolds were chosen because they are a flowering plant and a common type of ornamental that might be grown in greenhouses. The plants did struggle during the early growing stages, the study noted. “You could see that the plants took a hit in the early stages of growth - the first two to three weeks. They were shorter and had less chlorophyll, indicative of a nitrogen deficiency, which you’d expect at such a high pH. But these plants caught up by the end. By flowering stage, there was no negative effect of biochar versus peat moss,” Margenot said. He noted that the pH in the pots neutralized by the end of the study. One explanation given for that was that the study used fertigation, a common irrigation system which adds nutrients such as nitrogen, phosphorus and potassium to the plants. “I think that’s important,” Margenot said. “If you were to grow anything without any fertilizer, either directly or via fertigation, it wouldn’t grow that well.” Based on the results with the marigolds, he said he would expect the same results with other plants grown under similar greenhouse conditions. Biochar could also be used on crops as long as they were not pH sensitive, he added. “Because we used a softwood biochar known for its high pH, we really tested the worst case scenario,” Margenot said. “If it could work in this case, it could probably work with others.”

Margenot said he and others involved in the study would be interested in conducting additional biochar research, although nothing is currently planned. Among areas to look at is organic matter feedstocks from different areas. “I think it would be good to look at regionally relevant biochars,” Margenot said, noting that a major source of biochar feedstock in the Midwest is corn stover. “Those properties are going to be very different from softwood based biochars. I think that would go for most parts of world. They might have a particular organic matter feedstock that’s more suitable.” The study noted that since biochars can vary widely in properties such as pH, “additional biochars should be investigated for their potential to fully replace peat moss in soil-free substrates.” Another area of study could be the use of biochar on other crops. “It’s one thing to grow ornamental flowering crops, like marigolds,” Margenot said. “Another issue is food crops, horticultural high-value crops.” “Crop- and biochar-specific considerations and economic potential should be investigated for wider application,” the study said. While the study suggested that biochar could replace peat moss in the greenhouse and nursery industry, Margenot noted that partial substitution was also a viable option. Continued on page 15

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Study Claims Biochar Viable Substitute for Peat Moss in Greenhouses Continued from page 12

He said he did not know if enough biochar could be produced to totally replace peat and whether it would be economical to do so. “I’m speculating that there are a lot more feedstocks for biochar than probably peat reserves readily mineable,” he said. “Biochar can be made from any type of biomass, if you’ve got corn stover, lumber shavings, dead trees in a forest, poultry bedding. If you consider all the possible biomass sources for feedstock, I think you might be able to meet demand. The current supply might not be enough, but if there’s economic demand, people will rise to the occasion.” One of the issues cited in the study was that the peat industry was unsustainable. Paul Short, president of the Canadian Sphagnum Peat Moss Association, dismissed those concerns. Canada is the world’s largest producer and exporter of sphagnum moss for horticultural use. It harvests some 1.14 million tons annually and has sales of approximately $337 million. “Canada has 113 million hectares of peatland,” Short said, explaining that “peatland” was the living ecosystem and “peat” was the decaying material that accumulates over time and is harvested. “Our use to date totals 29,000

hectares, both in past and in current operations, which works out to be about .02 percent of the total peatland in Canada . . . The question is, are we using more than is being produced by those 113 million hectares? and the answer is no.” He added that the industry has the ability to restore peatland within a reasonable time frame. “If they’re saying we cannot restore the peatlands, that it’s unsustainable, that’s wrong,” he said. “We as an industry know we can restore peatland well within a time frame of 25 to 30 years . . . It will be pretty close to pre-harvest status. They are renewable. If they’re saying our peat is not renewable, that’s wrong. It’s slowly renewable . . . 100 to 110 years. We cannot replace the amount that we harvest within a lifetime. We know that.” Short said there were still issues to be resolved about biochar and its production, such as environmental, biodiversity and economic questions. “I’m not going to speak negatively about biochar. I think there is a place in the horticultural industry in North America and globally for more than one substrate,” he said. “Biochar seems to have its own specific capabilities that may give certain results better than others.”

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Soil

Mulch Producer NEWS

Loggers and Truckers Group Opposes Minnesota Biomass Plant Shutdowns

uluth, MN — The Associated Contract Loggers and Truckers (ACLT) of Minnesota have filed a lawsuit against three power companies that had received approval from the state legislature to move forward with shutting down three biomass energy plants, reports DuluthNewsTribune. To remain competitive in the electricity market, Xcel, Benson Power and Laurentian Energy had sought state approval to begin negotiations for closing the plants. Minnesota Gov. Mark Dayton signed the bill that contained the proposal; however, he said that not enough study had been done to assess economic impacts on logging, mills and landowners. According to ACLT Executive Director Scott Dane, Minnesota’s biomass industry accounts for $27 million in direct biomass purchases annually. The Minnesota Environmental Rights Act requires an environmental impact statement or analysis be conducted to determine the environmental impacts that will result from the loss of the biomass market. A major concern is keeping the state’s forests healthy by removing low-grade, unmerchantable timber such as damaged wood from blowdowns. This wood is typically chipped and used for making paper as well as energy. Dane said they hope with the lawsuit to, if anything, establish an orderly timeline to transition away from the biomass markets. “Those contracts were expected to be in effect for another 10 years, so the loss of these markets will cost the forest logging industry $207 million over the next 10 years directly, and that’s not including the economic multiplier factor,” he said.

Burning Debate Over Wood Chips in Nova Scotia

ova Scotia, Canada — Environmentalists and mill owners are objecting to the felling of old-growth hardwood stands to supply wood chips for biomass energy here and abroad, reports TheChronicleHerald.ca. Eight years ago, public support for Nova Scotia’s 60-megawatt Point Tupper power plant was based on the proposal to use sustainable logging practices and wood waste from the area’s mills, which was seen to generate jobs and revenue for the region. Now, the news that the Department of Natural Resources is approving harvesting of hardwood for the power plant has sparked controversy. Although loggers must adhere to sustainable harvest practices and guidelines, such as stand-improvement, and the power plant can buy only from such harvesters, opponents say removing old growth trees will further hurt the area’s only remaining mill and wood product manufacturers. Concerned about further tightened access to hardwood, they cite the closing of two Nova Scotia hardwood flooring manufacturers the biomass boiler opened. The only hardwood sawmill left is down to one shift, they say. The Point Tupper facility has been running below capacity since the province dropped its ‘must run’ designation two years ago, however. Last year, the plant ran 78 per cent less than it did in 2015, according to Nova Scotia Power. Since October, however, high natural gas prices and demand for electricity have resulted in steadier biomass burning. A power company spokeswoman told the Chronicle Herald that 25 per cent of the plant’s total consumption has come from wood chips, while the rest has been bark and mill waste from sources like the Port Hawkesbury Paper wood yard.

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Soil

Emerald Ash Borer Infestation Expands Into Vermont

ontpelier, VT – In late February, the Vermont Department of Forests, Parks & Recreation (VTFPR) issued a statement reporting detection of emerald ash borer (EAB) in the state’s northern forests. Officials with the USDA Animal & Plant Health and Inspection Service (APHIS) confirmed the identification of a beetle found in Orange County, Vermont. The insect was reported through the vtinvasives.org website. Immediately, state and federal forest health officials began developing an emergency action plan and implementing a multi-agency delineation survey effort. The VTFPR, in conjunction with Vermont Agency of Agriculture, Foods and Markets (VAAFM), APHIS, US Forest Service and the University of Vermont Extension are investigating the extent of the EAB infestation. The survey, which continued into April will be used to make decisions on whether the quarantine will be statewide, or county by county. This EAB is known to be established in 32 states and three Canadian provinces and is responsible for widespread decline and mortality of hundreds of millions of ash trees in North America. Two other species are threatening Vermont forests, the hemlock woolly adelgid, Adelges tsugaea, a tiny aphidlike insect, and the Asian long-horned beetle (ALB). The adelgid has been identified in Windham County and in Windsor and Bennington counties, while the long-horned beetle was discovered and has been contained in Worcester, MA since 2008. Ash trees comprise approximately 5 percent of Vermont forests and are also a very common and important urban tree. EAB threatens white ash, green ash and black ash in Vermont. Hemlock is the third most common tree species in Vermont. The ALB is considered a danger to the state economy because it devours and kills Norway, red and sugar maples. Infestations of this insect have the potential to do billions of dollars’ worth of damage to the state’s maple sugar industry. The ALB is regarded as a national priority pest, thus efforts to contain it are managed by the USDA. In Worcester, the agency implemented a program to remove 35,000 trees surrounding an ALB infestation area. This solution literally starves the insect. The number of trees found to be infested fell from a high of nearly 12,000 the year after the beetle was found, to only 94 in 2016. Colder winters and bans on transport of firewood from one area to another have helped the effort to control ALB infestation. The emerald ash borer stands out among the three insects because it has no natural predator, or proven means of control in a forest environment. Ash trees are common urban plantings, and the ash is second only to maple in the number of board feet of hardwoods harvested in Vermont. White pine, spruce and balsam harvests are greater; however, Vermont senators have asked for funding to help fight EAB infestation, including $60 million for the USDA’s Tree and Wood Pest program and plans are on the table to establish a research grant program focused on protecting native species.

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Soil

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The Promise of North Carolina Swine Biogas Project is Powerful

urham, NC – A biogas project that uses anaerobic digestion to turn hog manure into electricity could power the equivalent of 1,000 homes for a year in Eastern North Carolina, according to a WUNC.org report. Taking advantage of gas pipeline infrastructure, the Optima KV Project is a collaboration between Duke University and Duke Energy. Five Duplin County hog farms are connected to the nearby Duke Energy power plant. Buying the biogas helps the utility meet a state mandate for 0.2 percent of energy to come from hog waste by 2023. Likewise, the university, which has its own renewable energy mandates, uses steam heat for buildings on campus year-round and wants to convert its boilers from burning natural gas to burning swine biogas. In 2010, Duke University and Google began a pilot biogas project to turn hog waste into electricity. That facility, which is still running, captures and burns methane that results from the process. Additionally, both Duke University and Google earn carbon credits to offset their energy footprints. Another biowaste production facility, called the Carbon Cycle Project, was slated to come online this summer, but no firm date has been released to the public. The project is to produce enough electricity to power 32,000 homes annually, with about a quarter of that energy coming from swine waste.

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Discovery of Significant Sources of Nitrogen Rocks the Foundations of Environmental Science

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ot all the nitrogen on the planet comes from the atmosphere, according to a new study published in the April 6 issue of Science (the journal), and reported in ScienceDaily.com. By analyzing ancient rocks and using geospatial mapping, University of California, Davis researchers have calculated that up to a quarter (26 percent) of atmospheric nitrogen comes from Earth’s bedrock. The gamechanging discovery challenges current thinking related to the carbon cycle and climate change, such that it is expected to improve the accuracy of climate change projections. Referred to as “nitrogen weathering,” the release of the gas is considered a globally significant source of nutrition to soils and ecosystems worldwide, the study authors explain. What’s more, they think that nitrogen may allow forests and grasslands to sequester more fossil fuel CO2 emissions than previously thought. The leaching of nitrogen through weathering can be physical, such as through tectonic movement, or chemical, such as when minerals react with rainwater. Mapping nitrogen nutrient profiles in rocks could greatly improve climate change projections, which now rely on understanding the carbon cycle. The newly identified source of nitrogen could also feed the carbon cycle on land, allowing ecosystems to pull more emissions out of the atmosphere, the authors said. Areas with higher levels of rock nitrogen weathering may be able to sequester more carbon. In addition, the research sheds light on the “case of the missing nitrogen.” For decades, scientists have recognized that more nitrogen accumulates in soils and plants than can be explained by the atmosphere alone, but they could not pinpoint what was missing. The UC California researchers say the work does not hold immediate implications for farmers and gardeners, who rely on nitrogen in natural and synthetic forms to grow food. Past work has indicated that some background nitrate in groundwater can be traced back to rock sources, but further research is needed to better understand how much. The study was funded by the National Science Foundation’s Division of Earth Sciences and its Division of Environmental Biology, as well as the Andrew W. Mellon Foundation.

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Soil

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Virginia Tech Researchers Say Wooden Pallets Are Being Recycled Now More Than Ever

lexandria, VA — Data from a new Virginia Tech study shows that 95 percent of wooden pallets are being recycled and diverted from landfill, according to an article published on PalletCentral.com. The study, which tracked the flow of pallets into municipal and solid waste (MSW) and construction and demolition (C&D) landfill facilities, was funded in part by the USDA Forest Service and The Pallet Foundation. Among the findings were that landfill facilities have increased their wood and wood pallet recovery areas over the past two decades. For MSW facilities, this number increased from 33 percent to 62 percent of facilities, while for C&D facilities, the number increased from 27 percent to 45 percent. Overall, the number of wooden pallets sent to landfills in MSW and C&D landfills dropped to 25.39 million from 178.5 million over the same period. The study also found that the number of pallets entering the landfill went down by 86 percent since 1998, for both MSW and C&D facilities. Reasons for the increase in pallet recovery include heightened environmental awareness, limited disposal space, and a desire to be more waste-efficient, the researchers found. Despite concerns about insecticides used to eradicate invasive species ending up in gardens or other animal bedding, a previous Virginia Tech study showed that those chemicals do not pose health threats from the recycled pallets. Additionally, many pallet manufacturers use heat instead of chemicals.

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Soil

Mulch Producer NEWS

Peat Moss Plant Will Be Rebuilt After Fire

aie-Sainte-Anne, New Brunswick, Canada – A fire that began after midnight in late March destroyed a large building at Theriault and Hachey Peat Moss facility, but owners said they would continue operations in another building and keep all employees working, reports CBC.ca. The damaged building and the equipment inside were estimated to be worth millions of dollars. The company had recently purchased new packaging equipment using grant funding from ACOA. The equipment had not been delivered or installed yet, however. About 22 firefighters from the Baie-Sainte-Anne and Miramichi fire departments battled the blaze. The fire chief of the Baie-Sainte-Anne Fire Department reported no injuries. Nobody was inside the building when the fire broke out. Firefighters remained on scene until about daybreak. The fire directly affects 24 employees, according to the plant’s owners. When the business is in full production, about 70 people work at the plant. The company has ample inventory of product on hand because the 2017 summer harvest was good and will be accepting help from other peat moss plants in packaging raw material.

Advertiser News

Ten Bobcat Locations Join Bandit’s Dealer Network

en locations of The Bobcat of St. Louis dealer network across Missouri, Indiana, Illinois, Kentucky and Tennessee have joined Bandit Industries’ growing network of authorized dealers. Bandit customers will have access at the following locations to provide service, parts and sales for the following product lines: The Beast® Horizontal Grinders Columbia, MO 573-886-9435 O’Fallon, MO 636-240-9020 St. Louis, MO 636-225-2900 Marion, IL 618-985-8920 Fairview Heights, IL 618-397-1847 The Beast® Horizontal Grinders • Hand-fed & Stump Grinders Evansville, IN 812-442-8200 Clarksville, TN 931-436-9555 Nashville, TN 615-941-4000 Bowling Green, KY 270-842-4253

“ O u r c u s t o m e r s t h ro u g h o u t t h e s e territories are very familiar with the quality and commitment of these dealer locations,” said Bandit Sales Manager Jason Morey. “Adding them to our always-growing dealership network gives our customers an incredible local option for full service, support, parts and sales.” Bandit Industries also announced that Krystowski Tractor Sales, Inc. (based in Wellington, OH) has joined its growing network of authorized Bandit dealers, offering handfed chippers, stump grinders and skid-steer attachments. Krystowski Tractor Sales was established by Ed & Agnes Krystowski in 1967 and is now owned and operated by two of their sons, Ed and Larry Krystowski. Their reputation is built on quality service, large inventory selections and honest deals. Visit www.krystowskitractor.com to learn more, or call 440-647-2015. Learn more about Bandit’s complete lineup by visiting www.banditchippers.com or by calling 1-800952‑0178.

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Product/Equipment Profiles

Rotochopper Launches 1,000 Horsepower B-66E Electric Horizontal Grinder

o help customers process increased volumes of waste materials, Rotochopper introduces a new 1,000 horsepower dual-motor d r i ve o p t i o n fo r t h e B-66 E electric-powered horizontal grinder. The dual-motor drive is designed to reduce operating and maintenance costs compared to a single-motor drive, as well as minimize amperage surges at start-up. Benefits of a dual motor drive over a single motor drive include lower start-up amperage surges and lower repair costs in the event of downtime. Major downtime is rare with industrial electric motors. Yet should a breakdown occur, the dual motor drive decreases the lead time and cost of replacement parts compared to a single larger motor. “The 600 to 700 horsepower range has been a great fit for customers from a broad range of industries,” said Rotochopper CEO Art de St. Aubin. “But the growth in yard waste composting, municipal waste, and other high-volume markets is driving increased demand for bigger electric grinders with higher horsepower.” Headquartered in St. Martin, Minn., Rotochopper manufactures industrial wood waste grinding equipment including horizontal grinders, slow speed shredders and mobile baggers.

WCCO Belting Launches Patented Soybean Oil Rubber Belt Technology

CCO Belting a n n o u n c e d the launch of a patented rubber technology made with soybean oil, the first innovation in its new TerraTech™ line of belting products made with sustainable materials. This technology uses soybean oil instead of aromatic (petroleum) oil in a rubber compound that can be used in many applications. The technology was developed in part using the United Soybean Board’s Soy Checkoff dollars, which funds research and promotion impacting soybean farmers. It grew out of WCCO’s desire to further differentiate its products in a way that benefits its end-users, and in this case, soybean growers. In fact, the new belt showed 20 percent more abrasion resistance than a petroleumbased belt in testing. WCCO Belting creates custom belts using specialized equipment and proprietary processes. The company focuses on the technological advancement of each raw material and belt component to provide a superior finished product. For example, its patented RAPTOR® Draper Belting, used to harvest soybeans and other small grains, has become the gold standard in the draper header, swather, merger, and windrower market worldwide. For more information visit www.wccobelt.com and follow the company on LinkedIn.

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Vermeer Announces New Full Track Option for CT718 Compost Turner

he Vermeer CT718 compost turner can now be equipped with fulllength steel tracks, an option best suited for rough and muddy ground conditions. The new full track option is one of four drive systems available for the CT718 compost turner that also include two-wheel drive, four-wheel drive and two-wheel plus two short tracks drive system. The Vermeer CT718 compost turner is efficient and highly productive at turning windrows up to 18 feet (5.5 m) wide. The compost turner uses a mechanical belt-drive system and a Flexxaire fan that automatically adjusts based on temperature to help maximize performance. An optimized drum design with long flails ensures proper aeration while minimizing material drag and providing protection to the drum skin. The operator-controlled rear curtain also aids with controlling material deflection. The comfortable operator’s cab of the CT718 compost turner features programmable, preset controls that allow the user to adjust height with a single touch and a control display that shows the sides and rear of the machine through mounted cameras. For more information on the Vermeer CT718 compost turner, visit Vermeer.com or contact your local Vermeer dealer.

26 Soil & Mulch Producer News March /April 2018

Amerimulch® Announces Its Latest Innovation: Plus™ Formulation

merimulch® h a s developed its new Plus™ fo r m u l at i o n fo r use with all of the Bold and Vibrant Heartland® product lines to deter mold growth in the colorants. Plus enhanced colorants are applied through the same process used today, and there is no special labeling or handling required. Amerimulch provides landscape colorants and equipment for the production of profitable, in-demand color-enriched mulches. Our colorants are formulated for superior bonding, coating, and coverage and our equipment is designed for producers who want simple, effective, high-volume production. Established in 1998, the ChromaScape™ family of brands is recognized as one of the leading producers of color dispersions and specialty additives. For more information about AMERIMULCH or other ChromaScape brands, contact a Customer Service Associate at 888-556-3304, or visit us at amerimulch.com and chromascape.com.

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March /April 2018 Soil & Mulch Producer News 27

www.SoilandMulchProducerNews.com

VOL. XII NO. 2

6075 Hopkins Road • Mentor, OH 44060

PRSRT STD

Ph: 440-257-6453 • Fax: 440-257-6459 Email: downassoc2@oh.rr.com

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PAID

MAR / APR 2018

Inside This Issue Transportation Issues, Retail Price Wars Affecting Mulch/Soil Industry PAGE 1

Another Carbon Dioxide Tax Proposal Fails in Washington State PAGE 4 Oregon Proposes Expensive Carbon Cap Legislation PAGE 7 Study Claims Biochar Viable Substitute for Peat Moss in Greenhouses PAGE 11 Discovery of Significant Sources of Nitrogen Rocks the Foundations of Environmental Science PAGE 20 Virginia Tech Researchers Say Wooden Pallets Are Being Recycled Now More Than Ever PAGE 23