HOUSE BILL REPORT

HB 2058

BYRepresentatives Sayan, Cantwell, Basich, Van Luven, Jones, Dorn, Ferguson, Rayburn and P. King 

Directing a study of the hardwood industry by the University of Washington.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendment.  (12)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; G. Fisher, Kremen, Moyer, Rasmussen, Raiter, Rector, Tate, Walk and Youngsman.

House Staff:Charlie Gavigan (787-7340)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 1, 1989

BACKGROUND:

The forest products industry remains a key part of Washington's economy, providing about one fifth of the manufacturing jobs in the state and contributing to many jobs in other areas of the economy. This industry has traditionally relied on softwood timber, such as Douglas fir trees.  Hardwood timber, such as alder, has been a much smaller part of the economy than softwood, with a 10 year annual average of 231 million board feet harvested in Washington state in hardwoods and an annual average of six billion board feet harvested in softwoods. However, while the softwood inventories are declining, hardwood inventories have been increasing.

The inventory of softwood timber in Washington in 1980 was 236 billion board feet. The inventory of hardwood timber in Washington in 1980 was 18 billion board feet.

SUMMARY:

BILL AS AMENDED:  The College of Forest Resources is to conduct a study of Washington's hardwood forests and hardwood industry. The study shall:  (1) inventory the hardwood forests and assess the quality of those forests; (2) assess the value-added (processing) industries currently operating in the Pacific Northwest and Europe; (3) analyze target areas for development of hardwood forests; (4) catalogue potential hardwood products and research potential markets for hardwood products; and (5) analyze the prospects for increasing the supply of hardwood timber.

The results of the study are to be presented to the legislature by July 1, 1990, with a preliminary report due in November 1989.

AMENDED BILL COMPARED TO ORIGINAL:  Language is added to direct the study to place emphasis upon the predominant commercial hardwood species grown in Washington state rather than all species of hardwoods.

Appropriation:    The sum of one hundred twenty-five thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the college of forest resources at the University of Washington for the biennium ending June 30, 1991, to carry out the study.

Fiscal Note:      Requested March 2, 1989.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Representative Doug Sayan, Prime Sponsor; Dave Sweitzer, Western Hardwood, Association, Portland, Oregon; Dave McCullam, Northwest Hardwoods, Federal Way, Washington; David Thorud, Dean of Forestry, University of Washington; David Briggs, College of Forest Resources, University of Washington; Marlin Smith, Quality Lumber Company; Jack Lundberg, HMC Industries, Incorporated, Lynnwood, Washington; Paul Kriegel, Goodyear-Nelson Hardwoods; Lawrence Johnson and Warren Bailey, Cascade Hardwood, Chehalis, Washington.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The shortage of raw timber has resulted in closed mills and other businesses, especially in rural areas.  More uses are being found for alder and other hardwoods by manufacturers and new markets are opening.  Additional knowledge of how much hardwood exists, where it is located, and who owns it is necessary to address questions about management goals and expansion of markets.

House Committee - Testimony Against:      None Presented.