FINAL BILL REPORT
SSB 5911
PARTIAL VETO
C 424 L 89
BYSenate Committee on Ways & Means (originally sponsored by Senators Amondson, Stratton, Hayner, Owen, McDonald, Newhouse, Anderson, Matson, Johnson, Smith, Lee, Bailey, Cantu, Thorsness, Patterson, Benitz, Nelson, Saling, Sellar, Craswell, Barr, McCaslin, Conner, Rasmussen, DeJarnatt and Bauer)
Providing for the sale of state timber.
Senate Committee on Ways & Means
House Committe on Natural Resources & Parks
Rereferred House Committee on Appropriations
SYNOPSIS AS ENACTED
BACKGROUND:
The national forest supervisors in Washington have been preparing a new forest management plan for each forest. Lower timber sale levels are part of several of these plans. During December 1988, the Forest Service determined that to protect habitat for spotted owls there is a need to withdraw certain timberlands from further harvest. This decision affects the entire state, and particularly the Olympic Peninsula. It is estimated that 1,655 jobs directly relating to the timber industry may be lost by 1990 due to the decline in timber sales.
The state, through the Department of Natural Resources (DNR), manages approximately 69,000 acres of old growth in the Hoh-Clearwater drainage of the Olympia Peninsula. Most of these lands are held in trust for the common schools, with the proceeds from timber sales going to school construction. Approximately 6,305 acres containing timber worth $87 million have been deferred from sale on these lands. DNR manages approximately 541,000 acres of Forest Board transfer land for the benefit of the counties. The nature of the trust relationship between the state and the counties is prescribed by the Legislature. This is different from the seven state trust land categories, such as the agricultural school grant lands and the normal school grant lands which are governed by the Enabling Act of 1889, which requires a more limited fiduciary responsibility.
Some of these lands had been scheduled to be cut in 1988 and 1989 and the harvest is now delayed. The Commissioner of Public Lands has appointed an "Old Growth Alternatives Commission" to study the matter, make recommendations and prepare a report in June 1989.
SUMMARY:
In response to emerging timber management concerns, the Legislature finds that additional information is needed to anticipate issues and support a process that encourages counties and the state to develop a joint decision-making process affecting timber sales from Forest Board transfer lands. The Legislature therefore establishes programs which: (1) allow counties to sell timber to certain eligible firms; (2) require several reports from the Department of Natural Resources; and (3) offer economic development assistance.
Counties with Forest Board transfer lands may petition the Board of Natural Resources to have a portion of the Forest Board transfer timber sold to firms that meet the following criteria: (a) at least 50 percent of its volume of timber was bought from state and federal lands during the past three years; (b) 85 percent of the volume of timber purchased during the last year was processed in Washington into lumber, veneer, plywood, shakes, shingles, ports, poles or pilings. Participating firms must prepare annual reports to the Department of Natural Resources (DNR) regarding timber purchased under this program. The DNR shall report annually to the House and Senate on the accomplishments of the program. This program expires June 30, 1994.
The Department of Trade and Economic Development will contract with the Northwest Policy Center. The Northwest Policy Center will report to the Legislature on: (a) the present economy of areas of the state impacted by federal timber sale reductions; (b) the economic losses associated with reductions in federal timber sales; and (c) potential methods for increasing economic development in these areas. A $200,000 appropriation is made from the general fund to the Department of Trade and Economic Development to contract for these services.
The Department of Community Development will provide technical and financial assistance to communities adversely impacted by reductions in timber harvested from federal lands. This assistance will include the formation and implementation of community economic development plans. The Department of Community Development will utilize existing state technical and financial programs, and aid communities in seeking private and federal financial assistance.
The Department of Natural Resources will conduct a study of state-owned hardwood forests, emphasizing management policies to increase the supply of commercially harvestable hardwoods on state lands.
An Olympic Institute for Old Growth Forest and Ocean Research is established to demonstrate innovative forest management methods which integrate environmental and economic interests into pragmatic management. It will be jointly administered by the College of Forest Resources and the College of Ocean and Fishery Science at the University of Washington. A $150,000 appropriation is made to the University of Washington to prepare the Institute's development plan. Recommendations of the Old Growth Commission appointed by the Commissioner of Public Lands shall guide the development.
The Board of Natural Resources will maintain a sustainable harvest sale level. Should the proposed harvest be decreased by nondepartment actions, the department shall offer additional timber sales from state-managed lands.
The Commissioner of Public Lands and the Governor will report quarterly to the Senate and House concerning any state responses to federal government decisions, court decisions, or other developments which would affect the availability of timber for harvest or for processing in Washington State. By August 1, 1989, the Governor and the Commissioner of Public Lands will jointly develop an official state position for all federal forest management plans and shall report these to the House and Senate.
A joint select committee is formed with six members: three from the Senate appointed by the President of the Senate, and three from the House appointed by the Speaker of the House. Two members shall be from the majority and one from the minority caucuses.
The committee will: (1) review other states' legislative actions on domestic processing and log exports; (2) develop recommendations in response to federal legislation on log exports; (3) review mill closures or reduction in production due to lack of timber; (4) work with Washington State congressional delegation in developing domestic processing laws and programs; (5) review state and private log export policy on the state's economy and citizens; (6) review present federal policy that permits the substitution of state logs for private logs; (7) analyze the impact of log exports on timber supply as well as all aspects of finished wood products and wood chips; (8) request DNR to provide information relating to all aspects of timber harvesting and sales procedures; (9) study all aspects of domestic timber processing; (10) analyze the effect of domestic processing on the timber supply; (11) analyze the effect of domestic processing on the economy; (12) recommend methods to encourage more domestic processing; and (13) prepare relevant legislation for the 1990 legislative session.
The committee will prepare a report for the appropriate legislative committees by January 1, 1990, and will terminate June 30, 1991.
Appropriation: $800,000 from the general fund consisting of the following: (1) $150,000 to the University of Washington for a development plan for the proposed Olympic Institute for Old Growth Forest and Ocean Research; (2) $200,000 to the Department of Trade and Economic Development to contract with the Northwest Policy Center at the University of Washington for economic studies; and (3) $450,000 to the Department of Community Development for technical and financial assistance to communities adversely affected by timber harvest reductions.
VOTES ON FINAL PASSAGE:
Senate 30 15
House 77 19 (House amended)
Senate (Senate refused to concur)
Free Conference Committee
House 94 0
Senate 46 0
EFFECTIVE:July 1, 1989
Partial Veto Summary: The sections requiring the Governor and Land Commissioner to report to the Legislature on responses to federal timber decisions and to prepare a specific response by August 1, 1989, are removed. (See VETO MESSAGE)