DSHW-2024-008865

Brian Speer <[e-mail]>
Sandbox Application Notice
McKayla Caress <[e-mail]>Fri, Sep 20, 2024 at 4:01 PM
To: Douglas Hansen <[e-mail]>, Brian Speer <[e-mail]>, Bryan Watt <[e-mail]>, Jalynn
Knudsen <[e-mail]>
Cc: Dane Ishihara <[e-mail]>
Dear Mr. Hansen:
The Utah Office of Regulatory Relief (“UORR”) received an application from Woodcache PBC to demonstrate an
offering under the General Regulatory Sandbox Program created in Utah Code §63N-16-201. Under the supervision of
UORR in the Regulatory Sandbox, Woodcache PBC has requested that Title R315 under Waste Management and
Radiation Control be suspended during a one-year demonstration period with a possible 12-month extension.
As part of the application process described in Utah Code §63N-16-201, our office is directed to consult with each
applicable government agency that regulates the applicant’s business to solicit a recommendation from the agency
regarding the applicant’s entrance into the Regulatory Sandbox and to determine whether more information is needed
to make said recommendation.
Pursuant to Utah Code §63N-16-201(9), your agency has 30 days from the date you receive the complete application to
provide a written report and recommendation to UORR. You may also request an extension of five business days to
deliver your written report by providing notice to the UORR director. Should your agency fail to deliver a written
report to our office within the time frame described above, then pursuant to Utah Code §63N-16-201(9)(f), our office
shall assume that your agency does not object to the temporary waiver or suspension of the law(s) or regulation(s) cited
above and will proceed to take Woodcache PBC’s application to the advisory committee for review and deliberation.
If your agency determines that you need additional information before making a recommendation, please advise our
office of what information is needed and we will solicit that information from Woodcache PBC. The 30-day timeline
to provide a recommendation will begin anew upon receipt of the requested information.
Within this report, you must address and describe any identifiable, likely, and significant harm to the health, safety, or
financial well-being of consumers that the relevant law(s) or regulation(s) protect against, and include a
recommendation to UORR that the applicant be admitted, in whole or in part, or be denied entrance into the Regulatory
Sandbox. If you recommend that Woodcache PBC be denied entrance into the Regulatory Sandbox, the written report
shall include a description of the reasons for the recommendation, including why a temporary waiver or suspension of
the relevant laws or regulations could significantly harm the health, safety, or financial well-being of consumers or the
public, or create unreasonable expenses for taxpayers in the state, and the likelihood of such harm occurring.

Alternatively, based on your agency’s sole discretion, you may reject an application on the grounds that the offering
described therein fails to comply with standards or specifications required by federal law or regulation, or that were
previously approved for use by a federal agency. Any such recommendation need not adhere to the same requirements
for a recommendation to deny an applicant previously described.
However, if your agency determines that the consumers’ or public’s health, safety, or financial well-being can be
protected through less restrictive means than the existing relevant laws or regulations, then your agency shall provide a
recommendation of how that can be achieved pursuant to Utah Code §63N-16-201(9)(e).
Thank you,
MCKAYLA CARESS
Policy Analyst, Office of Regulatory Relief
w 702 767 9324
BUSINESS.UTAH.GOV
Note: All communication not protected under UCA 63G-2-305 may be subject to public disclosure.
regulatory-sandbox-application.docx.pdf
353K
Application Questionnaire and Demonstration Proposal
Please respond to each of the following questions and prompts in this or a separate document.
Read each question or prompt carefully and refer to the Frequently Asked Questions on the Utah Office
of Regulatory Relief website for additional guidance.
Submit your completed document with your application using the online portal (located at
utahecon.secure.force.com/econ).
1.Business’s full,legal name and company URL(s).
Woodcache PBC
90 North 400 East
Provo,UT 84606
(Registered in Kansas,headquartered in Provo)
woodcache.org
2.Identify key personnel and their positions.
Serge Bushman,CEO
Ray Bongiovanni,COO
Whit Childs,CRO
Diane Bushman,Administration
3.Have you or any of your participating personnel been convicted of a crime or are currently under
investigation of a fraud or business-related crime?If yes,please explain.
No
4.Please provide an overview of business operations.
Woodcache PBC provides a constructive business model for wildfire risk reduction,by creating demand
for unmerchantable wastewood.Currently,due to human policies to suppress wildfire,dead and living
wastewood builds up in forests and around homes.Removing it from standing forests is expensive and
currently there is limited financial motivation to do so.We support forest thinning and fuels reduction
by paying for the wood,which would otherwise either be left in place,removed and burned in a
slashpile,or carted to a landfill.
We also create jobs in forestry,transportation,and excavation in our operations.Forestry “hand
crews”remove waste wood from standing overgrown forests,teamsters gather the wood and transport
it to a burial location,and excavators open and backfill a burial pit.We store wood underground to
separate it from potential wildfire risk,and also to stop wood decomposition,which prevents
greenhouse gasses from forming in the environment.
We also create a non-penalizing business model for agricultural landholders.We pay landholders per
tonne of wood to bury clean wastewood under their fields or pastureland.Our process requires them to
remove only an acre of agricultural land at a time,and then return virtually all of it to agricultural
production within months.The clean wastewood stays buried underground for thousands of years,
creating a durable carbon sink.
Corporations,governments,and individuals buy the results of this work in the form of carbon credits.
Their purchases fund growth and development of the Woody Biomass Storage (WBS)industry.WBS
has the potential to scale to a gigatonne of carbon stored per year around the world.
5.Describe the product or service proposed for testing and how it functions.Explain the
innovation included in the product or service and the nature or features of it that distinguish it
from any similar product or service available in the state.
Woody Biomass Storage (WBS)is an emerging Carbon Dioxide Removal (CDR)technology useful in the
global effort to achieve net zero carbon emissions by 2050.To reach this goal,and to reduce current
ambient CO2 from about 450 to about 300 parts per million,a vast range of decarbonization and carbon
removal technologies must be developed and scaled.
Two key innovations in WBS are a)Engineered burial pits that keep buried wood cool,dry,and anoxic,
which allows the clean wood to stay underground for thousands of years without decomposing,and b)
The high carbon efficiency,low cost processes that convert wastewood to a carbon sink at 1.5x the dry
weight of wood (and potential to increase that rate within five years to about 1.8x).
A current similar technology available in Utah is biochar,which is gaining traction around the world.
This is a good technology,but WBS is far superior in the following circumstances:a)When using the
woody part of softwood feedstock,WBS is ~3x more efficient at long-term removal of carbon dioxide
from the air and;b)When working in remote locations,WBS can be deployed more efficiently.
6.What stage of development is the product or service currently at?
We completed a pilot project in Colorado in 2023,and have sold the carbon credits.We are working to
scale operations in the 4-corner states this year and next on five selected sites.
7.List every government agency that you know of which regulates your business.
The primary regulatory authority in Utah is the Department of Environmental Quality,particularly the
Department of Solid Waste.
(https://deq.utah.gov/waste-management-and-radiation-control/solid-waste-program)
We maintain an excellent working relationship with the team there.They are constrained by current
regulation to classify our work as a “landfill,”which creates difficulty for Woodcache for three reasons:
●Using the term “landfill”creates needless public mistrust,and raises barriers to our work down
the road.
●In most Utah counties,classification as “landfill”immediately restricts operations to
“Industrial”zones.
●Certain “landfill”classes require state legislative and even gubernatorial approval,and such
approvals are not easily nor quickly forthcoming.
8.Cite the specific sections or subsections of code that you are seeking relief from and would
otherwise prevent you from operating outside of the Regulatory Sandbox.Explain why a waiver
from each law or regulation is necessary.
Broadly,the proposed project is governed under Title R315 -Waste Management and Radiation
Control,Waste Management.
●https://casetext.com/regulation/utah-administrative-code/environmental-quality/title-r315-w
aste-management-and-radiation-control-waste-management
For lack of more appropriate legal instruments,the proposed project is governed under Rule R315-310
-Permit Requirement for Solid Waste Facilities.
●https://casetext.com/regulation/utah-administrative-code/environmental-quality/title-r315-w
aste-management-and-radiation-control-waste-management/rule-r315-310-permit-require
ments-for-solid-waste-facilities
Various types of solid waste facilities are defined in R315-301.
●https://casetext.com/regulation/utah-administrative-code/environmental-quality/title-r315-w
aste-management-and-radiation-control-waste-management/rule-r315-301-solid-waste-au
thority-definitions-and-general-requirements/section-r315-301-2-definitions
In 2025 or 2026,we plan to propose legislation that creates a carveout for Woody Biomass Storage,
similar to that found in Rule R315-312 -Recycling and Composting Facility Standards.
●https://casetext.com/regulation/utah-administrative-code/environmental-quality/title-r315-w
aste-management-and-radiation-control-waste-management/rule-r315-312-recycling-and-
composting-facility-standards
In the meantime we seek relief under the Utah office of Regulatory Relief from the following
aspects of Rule R315-310:
●For the project to be called a “Timber Storage Facility”,rather than any of the terms described
in R315-310-1.
●For the project to be considered “Non-Commercial”as regards to section R315-310-3-3.
●For purposes of regulatory regime,be regulated like a Class IV (?)landfill,because the material
to be buried is most similar to “yard waste”.
9.Describe the proposed demonstration plan,including each of the following points:
a.Estimated periods for beginning and ending the demonstration in the Regulatory Sandbox
We would operate in the Spring and Summer of 2025,and specific dates are dependent on snow in
Soldier Summit,Utah County.Over the course of 3 months we would thin forests on the property,move
wastewood to a burial location on premises,and then excavate,bury,cap,revegetate,and audit.
b.Who the anticipated consumers of the offering are,and how the offering will benefit them
The consumers of the offering are businesses,governments,and individuals who buy the carbon credits
we produce.The credits would be certified by Puro.earth,perhaps the most reputable worldwide
auditor today.Buyers will fulfill their explicit net zero commitments or give them the opportunity to
work towards their own net zero goals.
c.An outline of the anticipated consumer experience
The consumer (buyer)experience is a)They purchase a carbon credit on a carbon credit exchange like
patch.com,and either retire it or resell it at a different price and;b)Access long-term performance
data about their carbon credit through our industry-leading Measurement,Reporting and Verification
(MRV)system.
d.What risks might exist for consumers who use or purchase the offering
For consumers buying carbon credits,the risk of reversal is the most important.Reversal occurs when,
say,a credit based on a standing forest is meaningless when the forest burns down.Our risks of
reversal are lower than many other forms of carbon credit,because we have already de-risked many
technological uncertainties,and are committed to fixing or replacing a reversed carbon credit.For
example,if a burial pit starts leaking greenhouse gases into the environment,we fix it by repairing the
leak.
e.How participating in the Regulatory Sandbox would enable a successful demonstration of
the offering
The regulatory sandbox will enable execution of the first Woody Biomass Storage (WBS)project in Utah
a)free from the stigma of being called a landfill,b)free from county and local zoning restrictions
resulting from being classified as a landfill,and c)free from state legislative and gubernatorial approval
process as a landfill.For clarity,we welcome and encourage normal regulatory scrutiny of this project
by the Solid Waste Program regarding ground water,soil,air,and the environment.
f.What your consumer protection plan is (i.e.,how will you monitor and assess the testing of
the product or service to protect consumers from any potential harm resulting from
offering the product or service in the sandbox?)
Consumer protection is embodied in a)Our commitment to create a financial trust intended to repair
any reversals any time in the future,b)participation in insurance programs that replace compromised
credits with others,and;c)Full buyer access to fundamental Measurement,Reporting and Verification
(MRV)performance data.
g.Your anticipated next steps upon completion of the demonstration in the Regulatory
Sandbox (e.g.,how you plan to terminate the demonstration,plans to pursue necessary
licensure or authorization,plans to request a change to the laws or regulations,etc.)
Our intention is to leave the wood from this pilot project buried and monitor it in perpetuity.We will
obtain a perpetual easement and conditional use permit that allows us to monitor and make
improvements as needed.We will register the deed with the county.All of this work will go forward
with agreement from the landowner and county.
10.How will you measure the success of your demonstration?What specific metrics will you use?
Success will be measured by:
1.Showing that greenhouse gas re-emissions from the project are limited and declining,just as
they are in other states where we have established a project like this.
2.Demonstrating that any concerns about adverse environmental effects are unfounded.If any
are identified,Woodcache will exhume the wood and refund buyers or replace with other carbon
credits..
11.If applicable,how is the offering subject to licensing,legal prohibition,or other authorization
requirements outside of the Regulatory Sandbox?
The offering is subject to auditing,registration and methodology imposed by a credible third party,
which in this case is Puro.earth.Puro registration signals to the market that the Woodcache PBC
project delivers the carbon removal it purports to deliver.While not required,this certification reduces
friction in the marketplace.
Woodcache PBC has obtained this kind of certification on a previous project in Colorado,and is
confident similar certification would be forthcoming in the proposed project.
12.Is your company offering the same or a similar product or service through a sandbox program
in a different state?If so,please identify which state and sandbox program.
Woodcache PBC is offering the same or similar product or service in Colorado,but it is not
through Colorado’s sandbox program.There,we were able to operate based on a Colorado law
allowing landholders to bury their own woody materials on their own land.