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The objectives of this project were:1.����To compare the drying cost and drying time for oak and poplar pallets for the following mold mitigation strategies for hardwood pallets: air drying, forced air drying (fan shed), kiln drying to 25% moisture content and chemical treatment, and2.����Develop and evaluate a procedure for preventing and controlling mold growth on heat treated hardwood palletsTwenty red oak pallets and twenty yellow-poplar pallets were tested for each drying method to compare costs and to determine drying times. �Additional pallets were obtained to conduct a more thorough air drying procedure. �Drying data was extrapolated to allow estimates of the drying time from green (83% moisture content for poplar and 64% moisture content for oak) to 25%. �After the pallets reached the desired 25% moisture content, they were placed in a 40�" enclosed trailer, inoculated with mold (Aspergillus, Stachybotrys, and Penicillium) and were left undisturbed for a period of 14 days. �After the 14 day incubation period, the pallets were inspected for mold using the ASTM D-4445 Standard Test Method for Fungicides for Controlling Sapstain and Mold on Unseasoned Lumber. �A comparison of drying costs was then conducted to determine which method was the most cost efficient based on the data obtained in this study. �The cost to treat the pallets with each treatment was calculated including electrical cost, labor, and tax values. �In addition to the cost comparison, a Net Present Value (NPV) was calculated to determine which method produced the best outcome over a longer period of time.Two heat treatment and drying schedules were then developed to meet both IPPC-ISPM #15 requirements and achieve the desired 25% moisture content with minimal degrade. �This was accomplished by testing several HT/drying schedules on green yellow-poplar and white oak pallets until the pallets met the criteria for being heat treated and had minimal degrade. �The schedules developed are a modified oak HT/KD schedule that required 30 hours to complete and a modified poplar HT/KD schedule that required 16 hours to complete.The results demonstrated that that mold would not grow on the pallets stored in an enclosed container when the dew point is not reached. Air-drying pallets, chemical application in conjunction with air-drying pallets, fan shed drying pallets and kiln drying pallets to a 19-24% moisture content was demonstrated to prevent mold growth on oak and yellow poplar pallets. Estimates for the time required to dry yellow-poplar and oak pallets to 19% and 25% moisture content were developed for air-drying, forced air-drying and kiln drying for the conditions experienced in Blacksburg, VA between 7/30/2008 and 11/10/2008. Air-drying pallets was found to have the lowest daily operational cost but not the lowest total drying cost. �Fan shed drying had the lowest drying cost to achieve 25% moisture content. �Kiln drying was the most expensive daily and total cost, but yielded the fastest method of drying pallets to 25% moisture content. A NPV cost comparison showed that over a 3 year (36 month) time period, fan shed drying is the most cost effective method of drying pallets based on the values used in this study. Given the environmental conditions experienced between 7/30/2008 and 11/10/2008, no mold grew on the air-dried, fan shed, and kiln dried pallets during the drying process.