BILL REQ. #:  H-3616.4 

Prefiled 01/05/10. Read first time 01/11/10.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to maximizing the ecosystem services provided by forestry through the promotion of the economic success of the forest products industry; amending RCW 76.09.010 and 76.09.040; adding a new section to chapter 76.09 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that commercial forestry produces jobs and revenue while also providing clean water, clean air, renewable energy, wildlife habitat, open space, and carbon storage. For these reasons, maintaining a base of forest lands that may be utilized for commercial forestry is of utmost importance to the state.

Sec. 2   RCW 76.09.010 and 1999 sp.s. c 4 s 901 are each amended to read as follows:
     (1) The legislature hereby finds and declares that the forest land resources are among the most valuable of all resources in the state; that a viable forest products industry is of prime importance to the state's economy; that it is in the public interest for public and private commercial forest lands to be managed consistent with sound policies of natural resource protection; that coincident with maintenance of a viable forest products industry, it is important to afford protection to forest soils, fisheries, wildlife, water quantity and quality, air quality, recreation, and scenic beauty.
     (2) The legislature further finds and declares it to be in the public interest of this state to create and maintain through the adoption of this chapter a comprehensive statewide system of laws and forest practices rules which will have a balanced focus of voluntary, incentive-based measures, provide meaningful incentives for landowners, and achieve the following purposes and policies:
     (a) Promote and foster the economic success of the forest products industry with the goal of keeping forestry as a priority land use, and helping to secure the timber managing, growing, harvesting, transporting, and manufacturing jobs made possible by a vibrant working forest land base;
     (b) Afford protection to, promote, foster and encourage timber growth, and require such minimum reforestation of commercial tree species on forest lands as will reasonably utilize the timber growing capacity of the soil following current timber harvest;
     (((b))) (c) Afford protection to forest soils and public resources by utilizing all reasonable methods of technology in conducting forest practices;
     (((c))) (d) Recognize both the public and private interest in the profitable growing and harvesting of timber;
     (((d))) (e) Promote efficiency by permitting maximum operating freedom consistent with the other purposes and policies stated herein;
     (((e))) (f) Provide for regulation of forest practices so as to avoid unnecessary duplication in such rules;
     (((f))) (g) Provide for interagency input and intergovernmental and tribal coordination and cooperation;
     (((g))) (h) Achieve compliance with all applicable requirements of federal and state law with respect to nonpoint sources of water pollution from forest practices;
     (((h))) (i) To consider reasonable land use planning goals and concepts contained in local comprehensive plans and zoning regulations;
     (((i))) (j) Foster cooperation among managers of public resources, forest landowners, Indian tribes, and the citizens of the state; and
     (((j))) (k) Develop a watershed analysis system that addresses the cumulative effect of forest practices on, at a minimum, the public resources of fish, water, and public capital improvements of the state and its political subdivisions.
     (3) The legislature further finds and declares that it is also in the public interest of the state to encourage forest landowners to undertake corrective and remedial action to reduce the impact of mass earth movements and fluvial processes.
     (4) The legislature further finds and declares that it is in the public interest that the applicants for state forest practices permits should assist in paying for the cost of review and permitting necessary for the environmental protection of these resources.

Sec. 3   RCW 76.09.040 and 2009 c 246 s 1 are each amended to read as follows:
     (1)(a) Where necessary to accomplish the purposes and policies stated in RCW 76.09.010, and to implement the provisions of this chapter, the board shall adopt forest practices rules pursuant to chapter 34.05 RCW and in accordance with the procedures enumerated in this section that:
     (((a))) (i) Promote and foster a sound economic future for the forest products industry;
     (ii) Establish minimum standards for forest practices;
     (((b))) (iii) Provide procedures for the voluntary development of resource management plans, including voluntary conservation measures proposed under section 4 of this act, which may be adopted as an alternative to the minimum standards in (a)(ii) of this subsection if the plan is consistent with the purposes and policies stated in RCW 76.09.010 and the plan meets or exceeds the objectives of the minimum standards;
     (((c))) (iv) Set forth necessary administrative provisions;
     (((d))) (v) Establish procedures for the collection and administration of forest practice fees as set forth by this chapter; and
     (((e))) (vi) Allow for the development of watershed analyses.
     (b) Forest practices rules pertaining to water quality protection shall be adopted by the board after reaching agreement with the director of the department of ecology or the director's designee on the board with respect thereto. All other forest practices rules shall be adopted by the board.
     (c) Forest practices rules shall be administered and enforced by either the department or the local governmental entity as provided in this chapter. Such rules shall be adopted and administered so as to give consideration to all purposes and policies set forth in RCW 76.09.010.
     (2)(a) The board shall prepare proposed forest practices rules. In addition to any forest practices rules relating to water quality protection proposed by the board, the department of ecology may submit to the board proposed forest practices rules relating to water quality protection.
     (b)(i) Prior to initiating the rule-making process, the board must both satisfy the requirements of section 4 of this act and submit any proposed rules ((shall be submitted)) for review and comments to the department of fish and wildlife and to the counties of the state. After receipt of the proposed forest practices rules, the department of fish and wildlife and the counties of the state shall have thirty days in which to review and submit comments to the board, and to the department of ecology with respect to its proposed rules relating to water quality protection.
     (ii) After the expiration of ((such)) the thirty day period, the board and the department of ecology shall jointly hold one or more hearings on the proposed rules pursuant to chapter 34.05 RCW. ((At such hearing(s))) Any county representative may propose specific forest practices rules relating to problems existing within ((such)) the county at the hearings.
     (iii) The board may adopt and the department of ecology may approve such proposals if they find the proposals are consistent with the purposes and policies of this chapter. However, if the board is presented with two or more alternative proposed rules for adoption, the board must adopt the rule that retains the greatest economic value to forestry while achieving the minimum standard necessary requirements if the level of environmental protection achieved by one of the alternative rule proposals cannot be shown to substantially have more benefits to the resource.
     (3)(a) The board shall establish by rule a program for the acquisition of riparian open space and critical habitat for threatened or endangered species as designated by the board. Acquisition must be a conservation easement. Lands eligible for acquisition are forest lands within unconfined channel migration zones or forest lands containing critical habitat for threatened or endangered species as designated by the board. Once acquired, these lands may be held and managed by the department, transferred to another state agency, transferred to an appropriate local government agency, or transferred to a private nonprofit nature conservancy corporation, as defined in RCW 64.04.130, in fee or transfer of management obligation. The board shall adopt rules governing the acquisition by the state or donation to the state of such interest in lands including the right of refusal if the lands are subject to unacceptable liabilities. The rules shall include definitions of qualifying lands, priorities for acquisition, and provide for the opportunity to transfer such lands with limited warranties and with a description of boundaries that does not require full surveys where the cost of securing the surveys would be unreasonable in relation to the value of the lands conveyed. The rules shall provide for the management of the lands for ecological protection or fisheries enhancement. For the purposes of conservation easements entered into under this section, the following apply: (((a))) (i) For conveyances of a conservation easement in which the landowner conveys an interest in the trees only, the compensation must include the timber value component, as determined by the cruised volume of any timber located within the channel migration zone or critical habitat for threatened or endangered species as designated by the board, multiplied by the appropriate quality code stumpage value for timber of the same species shown on the appropriate table used for timber harvest excise tax purposes under RCW 84.33.091; (((b))) (ii) for conveyances of a conservation easement in which the landowner conveys interests in both land and trees, the compensation must include the timber value component in (a)(i) of this subsection plus such portion of the land value component as determined just and equitable by the department. The land value component must be the acreage of qualifying channel migration zone or critical habitat for threatened or endangered species as determined by the board, to be conveyed, multiplied by the average per acre value of all commercial forest land in western Washington or the average for eastern Washington, whichever average is applicable to the qualifying lands. The department must determine the western and eastern Washington averages based on the land value tables established by RCW 84.33.140 and revised annually by the department of revenue.
     (((4))) (b) Subject to appropriations sufficient to cover the cost of such an acquisition program and the related costs of administering the program, the department must establish a conservation easement in land that an owner tenders for purchase; provided that such lands have been taxed as forest lands and are located within an unconfined channel migration zone or contain critical habitat for threatened or endangered species as designated by the board. Lands acquired under this section shall become riparian or habitat open space. These acquisitions shall not be deemed to trigger the compensating tax of chapters 84.33 and 84.34 RCW.
     (((5))) (c) Instead of offering to sell interests in qualifying lands, owners may elect to donate the interests to the state.
     (((6))) (d) Any acquired interest in qualifying lands by the state under this section shall be managed as riparian open space or critical habitat.

NEW SECTION.  Sec. 4   A new section is added to chapter 76.09 RCW to read as follows:
     (1) Prior to adopting new forest practices rules under RCW 76.09.040, the board is required, when appropriate, to propose related incentives for landowners to provide voluntary conservation measures. The proposed voluntary conservation measures must include criteria for evaluating whether or not the intended outcomes of the measures are being achieved, and the identification of the party or parties responsible for conducting the evaluation.
     (2) Proposed voluntary conservation measures that require public funding for a new or expanded landowner incentive program or a similar initiative only satisfy the requirements of this section if adequate funding for the initiative has been secured concurrently with the adoption of the proposal.