Date: Sat, 15 Aug 1998 13:29:31 -0400 (EDT)
Message-Id: <199808151729.NAA17015@p2.acadia.net>
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=====================_903212445==_"
To: lorax@citcom.net
From: coastwatch@acadia.net (Ron Huber)
Subject: NC Study info summary
Cc: cielosand@mindspring.com

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Content-Type: text/plain; charset="us-ascii"

Ron Huber's edited notes from AUGUST 13,14 1998 telephone calls between Ron
Huber, Dogwood Alliance, and Bill Fluornoy, NCDENR concerning the North
Carolina woodchip study I have also attached the summary as a wordperfect
5.1 file entitled  "Fluornoy".

--------------------------------------------
The following is a summary of two telephone calls Ron Huber had with Bill
Fluornoy of North Carolina Department of Environment and Natural Resources
on August 13 and 14.   The Summary has been broken down into topical
sections for clarity

TOPICS:

BIll FLUORNOY PROFILE
OVERSIGHT COMMITTEE ORGANIZERS
WHO'S IN, WHO'S OUT.
DENR ROLE IN WOODCHIP STUDY
THREE MORE ISSUES GIVEN PRIORITY
DENR'S STATE FUNDING CONSTRAINTS
LESS FEDERAL MONEY THAN EXPECTED
REGIONWIDE STUDY VITAL TO QUALITY OF NC WOODCHIP STUDY
LEGISLATIVE ANALYSIS IS UNDERBUDGETED 


BILL FLUORNOY NC DENR CHIPSTUDY MANAGER
His DENR title is "Environmental Analysis Program
Manager".  Fluornoy is in charge of several "Special
Projects" for DENR, and is thus wearing several hats
simultaneously.  The woodchip study is one of these. 
One reason he was picked to run the woodchip study is
his proven ability to wring the most results from
underbudgeted state environmental programs. DENR's 
policy is that 'if it has no money, send it to
Fluornoy'.  

Fluornoy's negotiating style seems like that of a
blackjack cardgame dealer:
*Bring people to the table.
*Distribute the action proposal/agenda.
*"Push the envelope"; if any group leaves the table,
then that's one less interest to have to deal with.
*Keep pushing the envelope until everyone has either
folded and left the table, or has come to agree with
the proposal-as-evolved.

Bill can be stubborn. For example, he successfully faced
down the US DoD and Federal Aviation Administration over
whether or not the Air Force must get state permits to do
bomb testing on NC coastal islands.  Now they are
applying to lease the bomb-islands, but Fluornoy is
holding out for DOD to clean up all the existing bomb
debris and other military wastes first.  He will be a
tough negotiator re the woodchip study. Let's hope he's
on our side.  He has a very high opinion of Bill Holman

OVERSIGHT COMMITTEE ORGANIZERS
Professors Fred Cubbage and Steve Smutco (who is also
part of the Natural Resource Leadership Institute (NRLI)
of NC State, part of  the economics dept, or extension
service?)  are setting up the Oversight Committee  They
are still fleshing out the structure and membership of
the citizen steering/advisory** committee, which is more
a 'stakeholders oversight committee', including industry
reps as well.

**It is still unclear to what extent the committee will
be a steering committee or an advisory committee.
Fluornoy prefers advisory role for the committee.
  
WHO'S OUT, WHO'S IN  Fluornoy attended a meeting on 
August 12 with Cubbage and Smutco.  Dan Richter was not
there.  During the meeting they made a first cut of
organizations or persons that will NOT be included in the
Committee.  Fluornoy said each decision rests on the
answer to the question: "Is this person a bombthrower or
someone who can work in a group?"  

By 'bombthrower' he seems to mean someone who would waste
committee time/energy attacking other participants in the
committee, or in the overseen study, for their 'opposing'
point of view or philosophy.  

While Fluornoy gave no details of groups (or individuals
from groups)  that have been blackballed, I believe they
come from across the spectrum.  [NOTE: This is
information that we are entitled to under North
Carolina'S  Open Meetings Law  and  Public Records Law.]

COMMITTEE MAKEUP Fluornoy said the committee membership
process is still very early on.  Organizations that WILL
be on the oversight committee include Dogwood Alliance
(selection process is presently considering either Cielo
or Andrew George); and two out of the following three
industry groups: NCFA, Multiple Use Council; Forest
Landowners Association. He said that other forest
industry associations are trying to get on the Oversight
Committee, but Fluornoy says they are members of the
Multiple Use Council, so would be redundant. In terms of
persons,  NCFA and MUC are both Bob Slocum, the Forest
Landowners Association has Ronald Bost, so likely it'll
be the FLA and one of the other two that are on the
Oversight Committee.

The reason for the preference for having representatives
of coalitions or associations on the oversight committee
is that they have resources to bring the table: the
ability to network and to provide information to the
study.  Another criterion is that they be "reasonable
people" that can compromise.

Again, the ultimate membership and structure of the
Oversight Committee are still in development.

DENR'S ROLE IN CHIPSTUDY  Fluornoy said DENR's role is as
the contracting/funds disbursing agency.  After Governor
Hunt gave DENR the task, DENR worked out the list of
priorities, and has put together the funding, which goes
to the two Principal Contractors,  Fred Cubbage and Dan
Richter.  Fluornoy expects updates from the Contractors
every two months.  He is pushing them to get a draft to
him in time to do something with it, such as prepare
legislation for the next legislative session.  

He says that DENR is not playing a passive role in the
study. Process is set up where this is evolving out of
the public meetings. DENR can require that certain
elements MUST be in the study. See "Thre more issues
given priority" ,  below.

DENR presently has 75% of the funding that they
requested. DENR is going to EPA for another 60,000
dollars. [Note: Dogwood reviewed that proposal and sent
a letter of support.]

Fluornoy is still filtering through the proposals.  He
said there are more than can be funded.  He said to get
anything 'added' to the study will cost about 15 thousand
dollars.  $15K is the "magic number"   Used to be $10K,
now its $15 thousand. So most proposals for additions
must come with own funding attached.

THREE MORE ISSUES GIVEN PRIORITY
Last time they met, 5 weeks ago, DENR reviewed the
categories and issues that Cubbage and Richter have
developed,  and directed that three more issues be added
to the study.- 

* Onsite surface water quality impacts at chipmill
operations.  They want to get info from touring chipmill
sites.  Relative to this issue, he said DENR did a kind
of "hat trick" -  moving chipmills from the general  to
the individual stormwater permit category, but this is
now being subjected to administrative appeal, and thus
may not have a lasting effect.  When the study is
completed, they want data out of study to help inform
further decisions on the individual vs general stormwater
permit question re chipmills.
 
*Noise from chipmill operations.  They are hearing
complaints that the noise of chipmills is "making life
unbearable" for nearby homes or neighborhoods.  The
challenge is that North Carolina has no state law that
deals with off-site noise pollution; only the federal
OSHA noise standards for on-site noise. It must be
addressed through literature reviews and information that
comes from other states with noise pollution laws.

* Biological invasions from woodchip chip ballast water
discharges.   Fluornoy 'talked to the Contractors' and
told them it must be addressed.  Would prefer it be more
than just a survey of existing generic information; can
use Duke grad student Heather Walton's studies. 

As new additions to the woodchip study, review of these
three  issues will be limited to "whatever can be done
with $15,000".

DENR'S STATE FUNDING CONSTRAINTS
DENR's limited budget for the chip study is rooted in
last years removal of the state Health department from
the DEHNR agency. (DEHNR to DENR)  When the "H" went,  it
turns out Health had been providing the majority of
DENR's administrative overhead funding.  DENR
administrators are going to the divisions, saying 'Ante
up to pay the administrative overhead'. 

LESS FEDERAL MONEY THAN EXPECTED
DENR now also expects less money from the federal
government than they had hoped for.  "The well is
starting to dry up."

He said that at first, North Carolina was "the only game
in town",  i.e. the only statewide woodchip study taking
place for the feds to grant money to. It was a historic
first.

Now, with Missouri, possibly other states proposing
similar statewide woodchip studies, PLUS the nascent
Regionwide study, all consuming the extant federal monies
available, the amount per study will be significantly
lower than if the NC study were the only one occurring. 
 
In short:

The recent proliferation of woodchip studies across the
Southeastern United States, at both state levels and at
the regionwide level, is increasing consumption of a slow
growing/stable federal funding resource. This will likely
reduce the federal woodchip study funds resource
available to North Carolina. 

Another issue re federal funding:  DENR is somewhat in
the doghouse with EPA for previously spending too much of
their grant monies on administrative overhead.  A review
a few years ago showed that around half a million dollars
of grant money had been inappropriately reprogrammed into
administrative budgets.  The DENR head at the time, now
gone, who came from a university position, had upped the
administrative percentage of the budget to reflect the
university budget priorities he was accustomed to.

The combined result of DENR's budgetary contraction 
thanks to its restructuring, and the ensuing funding
reallocations, plus the increased demand on existing
federal monies brought about by woodchip studies
elsewhere is going to be a smaller, shallower North
Carolina Woodchip Study, Fournoy thinks.

REGIONWIDE STUDY VITAL TO QUALITY OF NC WOODCHIP STUDY
While worried about potential NC woodchip study funding
reductions  at the same time, Flournoy says he hopes the
regionwide study gets funded.  DENR really needs results
from it to begin 'unfolding the layers' of the chipmill
issue.  The regionwide study  will enhance their
understanding of this type of forestry in North Carolina.

DENR has heard "all these horror stories' about a
tremendous amount of clearcutting happening in Alabama
and other states, and about how for example there are
timber buyers that chase  funerals to get the bereaved
ones to sell off the dearly departed's woodlots.

Fluornoy said they really need to know what's happening
there.  He said NC is very early on in having a sizeable
chipmill industry.  He wants to know if there's a state
with a 15 year history of chipmilling to use for
comparison: Can we say that in 15 years we'll be like
that?   Without a comparison state, we don't have a way
to predict what North Carolina forests will be like after
fifteen years of chipmill operations, a goal of the study

LEGISLATIVE ANALYSIS IS UNDERBUDGETED  He said they don't
have the time or resources to do an in-depth comparison
of North Carolina's  laws, policies, incentives etc,
relating to the chipmill/woodchip industry with those of
other states.  This comparison work will be vital,
however, for developing a legislative agenda for North
Carolina. 

AFTERTHOUGHTS  It appears that DENR is looking for help
in compiling information on a number of issues, including
longterm impacts of chipmill-directed forestry,
legislative and regulatory options, and  information on
noise issues.  Fluornoy seems sympathetic to our point of
view; he is limited in his authority in some respects,
but quite strong in others, including control over   
funding, the ability to require that issues be included
or excluded, and authority to have a final say over the
membership and structure of the Oversight Committee.

He is following woodchip study developments as they are
posted on the world wide web, and says he also gets much
of his information from a highranking Sierra Club person
(Bill Holman).   He seems much more open to queries than
the two Contractors, and as such will be a valuable
source of information and advice concerning the ongoing
study.  We will continue our discussions once I'm in
Raleigh.


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--=====================_903212445==_--