HOUSE BILL REPORT

HB 55

BYRepresentatives Sutherland, B. Williams, Peery, Holm, Hargrove, Vekich, Cooper, Sayan, Basich, Fisch, Baugher and Kremen

Modifying the determinations of sustainable harvest.

House Committe on Natural Resources

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (12)

     Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Basich, Belcher, Bumgarner, Fuhrman, Hargrove, Haugen, R. King, Meyers, Sayan and Spanel.

Minority Report:     Do not pass.  (6)

     Signed by Representatives Amondson, Beck, Cole, Schmidt, C. Smith and S. Wilson.

House Staff:Bill Koss (786-7129)

AS REPORTED BY COMMITTEE ON NATURAL RESOURCES JANUARY 27, 1987

BACKGROUND:

The Department of Natural Resources (DNR) manages 2.1 million acres of timberland for trusts which were created at statehood.  DNR sells timber from these lands on a sustainable harvest basis -- a sales level that could be sustained in perpetuity.  State managed lands provide funds for construction of school buildings, university construction, the capitol campus, social and health services, and for county operations.

During the late 1970's and early 1980's, purchasers bid very high prices for DNR timber.  As the contracts reached their expiration dates, purchasers defaulted on them.  The sales became financially inoperable because of reduced housing demands.  The quantity of timber defaulted amounted to over 1.1 billion board feet.

During the early 1980's, DNR chose not to sell a portion of its planned timber sales due to low bid prices.  The quantity deferred from sales amounted to 0.6 billion board feet.

SUMMARY:

SUBSTITUTE BILL:  The Department of Natural Resources is directed to calculate a sustainable harvest level.  It will also calculate a timber sale arrearage, defined as the total of any defaulted timber sales plus the difference between actual and planned timber sales in the previous planning decade.  If an arrearage exists at the beginning of any planning decade, the Department will evaluate whether or not it is in the best interest of the trusts to sell the arrearage in addition to the regularly scheduled sales program for the decade.  In its evaluation, the Department will consider existing and forecasted economic factors as well as environmental impacts associated with selling the arrearage.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The definition of arrearage is clarified.  The Department has the flexibility to evaluate whether or not to sell any arrearage that develops rather than being required to sell any arrearage.

Fiscal Note:    No Impact.

House Committee ‑ Testified For:     Gus Kuehne, Northwest Independent Forest Manufacturers.

House Committee - Testified Against: Pat McElroy, DNR; Steve Gano, WFPA.

House Committee - Testimony For:     DNR needs direction on how to deal with any arrearage that develops in the future.

House Committee - Testimony Against: DNR needs flexibility to market timber in the manner that represents the best interests of the trusts.