Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Agriculture & Natural Resources Committee
SSB 5667
Brief Description: Concerning eligibility, enrollment, and compensation of small forestland owners volunteering for participation in the forestry riparian easement program.
Sponsors: Senate Committee on Agriculture, Water, Natural Resources & Parks (originally sponsored by Senators Muzzall, Van De Wege, Short, Wagoner and Wellman).
Brief Summary of Substitute Bill
  • Reduces the duration of easements under the Forestry Riparian Easement Program (FREP) from 50 years to 40 years.
  • Increases the amount the Small Forest Landowner Office (SFLO) must offer a small forest landowner from 50 percent to 90 percent of the value of qualifying timber in the FREP.
  • Increases payments for qualifying timber on unstable slopes from $50,000 to $150,000.
Hearing Date: 2/20/24
Staff: Robert Hatfield (786-7117).
Background:

Forestry Riparian Easement Program. 
The Forestry Riparian Easement Program (FREP) is managed by the Small Forest Landowner Office (SFLO) in the Department of Natural Resources (DNR) and acquires 50-year easements along riparian and other sensitive aquatic areas from small forest landowners who are willing to sell or donate easements to the state.  The DNR may purchase easements from small forest landowners and hold the easements in the name of the state.  Small forest landowners are generally landowners who harvest less than an average of 2 million board feet per year.  The easements are restrictive only and allow landowners to engage in activities except as necessary to protect the riparian functions of the habitat for the term of the easement. 
 
The easements represent 50 percent of the value of the unharvested trees, plus participation compliance costs.  Once a contract under the FREP is executed, the DNR is required to reimburse the landowner for the actual costs to establish streamside buffers and timber marking. 
 
The value of the easement is determined by the DNR based on the fair market value of the timber volume covered by the easement.  This calculation is made by the DNR after it conducts a timber cruise of the entire proposed easement.  The data gathered in the timber cruise are then applied to a stumpage value table to calculate the fair market value.  Value is calculated only on qualifying timber.  Compensation for qualifying timber on potentially unstable slopes or landforms may not exceed $50,000.

For approved forest practices applications for which the regulatory impact is greater than the average percentage impact for all small forestland owners as determined by an analysis by the DNR under the Regulatory Fairness Act, the compensation offered will be increased to 100 percent for that portion of the regulatory impact that is in excess of the average.  
Summary of Bill:

Forestry riparian easements shall be effective for 40 years, rather than 50 years.

Subject to availability of funding, the amount of compensation the Small Forest Landowner Office (SFLO) shall offer for qualifying timber in the Forestry Riparian Easement Program (FREP) is increased from 50 percent to 90 percent of the value.  The SFLO may utilize landowners' actual mill receipts to help determine fair market value but may not require these documents in any valuation process. 
 
Compensation for qualifying timber on potentially unstable slopes or landforms may not exceed $150,000, up from $50,000 under current law. 

At least semiannually, the Department of Natural Resources (DNR) must consult with the Small Forest Landowner Advisory Committee (Committee) to review landowner complaints, administrative processes, rule recommendations, and related issues where the DNR is actively seeking the Committee's advice on potential improved efficiencies and effectiveness.
  
 The intent of the Legislature is stated that the SFLO complete FREP application transactions within two years of the application receipt.
  
The provision allowing for approved forest practices applications for which the regulatory impact is greater than the average percentage impact for all small forestland owners to receive up to 100 percent for that portion of the regulatory impact that is in excess of the average is repealed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.