The Haines Borough is no longer in the market for a wood chipper.
The borough is relinquishing nearly $100,000 in grant money from the U.S. Department of Agriculture, after the agency informed the borough that a wood chipper bought with the funds could not be used for any commercial activities other than making fuel for a municipal biomass boiler.
The borough had hoped to lease the chipper out to a community business who could produce wood chips for other customers. But with the biomass project still far from completion, the Department of Agriculture’s requirement means that the chipper might sit idle for years before it could be used.
“It’s certainly a little bit of a setback,” said public facilities director Brad Ryan.
A report commissioned by biomass company Wisewood Energy found that wood chip heaters in Haines public buildings, such as the pool and school, would have significant environmental and economic benefits—provided the heaters’ fuel was produced locally.
The biomass project is still years away, but the $92,136 grant was due to expire in August. Expecting that the machine could be used to generate chips for commercial purposes, the Haines Borough Assembly voted last month to put out a request for proposals (RFP).
The borough released the RFP just two hours before being informed of the agency’s stipulations, said executive assistant to the manager Krista Kielsmeier.
But the loss of the grant money does not spell the end of the boiler project, said Ryan. The borough would be eligible to apply again for the same grant in the future, or could put up the money itself once the biomass plan is closer to completion.
Or it’s possible that someone else in Haines could step up to produce the fuel, Ryan said. “If there is a market for chips, my inkling is someone will supply (them),” he said.