PUBLIC HEARING HB 3632

 

TAPE 170, 171, AB; 172 A

 

HOUSE REVENUE COMMITTEE

MAY 20, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

 

Members Excused:                      Representative Pat Farr

                                                Representative Max Williams

 

Witness Present:                        John Hampton, Hampton Affiliates

                                                Dave Ivanoff, Hampton Affiliates

                                                Ray Wilkeson, Oregon Forest Industries Council

                                                Steve Thomas, Oregon Department of Forestry (ODOF)

                                                Ross Holloway, ODOF

                                                Janet McLennan, Former Board of Forestry

                                                Tim Josi, Tillamook County Commissioner,

                                                            Council of Forest Trust Land Counties (CFTLC)

                                                            Forest Trust Land Advisory Committee (FTLAC),

                                                Rob Freres, Freres Lumber Company

                                                Kirk Harrison, RSG Forest Products

                                                Tina Swanson, Swanson Group

                                                Paul Hanneman, Tillamook County Commissioner

                                                Mike Propes, Polk County Commissioner

                                                            County Forest Trust Lands

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Richard Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 170, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:40 a.m.

 

OPENED PUBLIC HEARING HB 3632

 

010

Richard Yates

Provided description of HB 3632, (Exhibit 1); and revenue impact (Exhibit 2).

 

027

 

 

 

030

Chair Shetterly

 

 

 

Described interest in having HB 3632 drafted, is to look at opportunities to take greater advantage of the and harvest and yield in state forest lands for benefit of economy and state, while maintaining current environmental laws.

 

Question and discussion regarding projected revenue, jobs, personal and corporate income.

 

060

 

John Hampton

 

Testified in support of HB 3632, (Exhibit 3).  Paraphrased written testimony.

 

165

Dave Ivanoff

Testified in support of HB 3632, discussed spreadsheet, (Exhibit 4).  Explained revenue losses and potential increases available with changes in the DOF approach to implementation plans.  Discussed Dr. John Sessions forest management model assumptions and policy.

 

230

Ivanoff

Discussed “Issues Relative to the Northwest Forests Management Plan (North Coast District)”, (Exhibit 4).

 

301

Ivanoff

Discussed revenue impact of HB 3632, and “Structure Based Management vs. Even Age Intensive Management (Opportunity Cost Analysis for HB 3632)”, (Exhibit 4).

 

410

 

Questions and discussion regarding terminology, including “structure based management”, and “Northwest Forest Management Plan”, “Forest Practices Act”, and “intensive even-age management”.

 

 

TAPE 171, SIDE A

 

029

Ray Wilkeson

Spoke in support of HB 3632, (Exhibit 5), represented private forest landowners.  Described state management of forest lands and how private industry would manage those lands. Discussed three differences between Northwest Forests Management Plan, (FMP), and The Forest Practices Act, (FPA).

 

082

 

Questions and discussion regarding stream buffer.

 

089

Wilkeson

Believes FPA adequately protects the environment..

 

104

Ivanoff

Clarified personal position is in opposition to the Board of Forestry approved FMP because the implementation plans fall short of its potential.  Believe principles of structure based management can be maintained and be consistent with the intent of HB 3632.

 

114

 

Questions and discussion regarding conversion to disease resistance species.

 

142

 

Questions and discussion regarding long term utilization and optimum time for harvesting trees.

 

176

Chair Shetterly

Assume sustainability must be factored into FPA to determine responsible forest practices on private land to avoid depletion.

 

183

Hampton

Answered affirmatively. Described Northwest Oregon as ideal demonstration forest for resiliency and recovery potential for productive timber lands.

 

193

Ivanoff

Described forest manager interest in reforestation and environmental impacts.

 

204

Rep. Barnhart

Requested information regarding Canada and its capacity to sustain the current level of cut over time.

 

221

Hampton

Canada will be able to sustain for the foreseeable future with the addition of surplus due to beetle infestation.  Growing capacity per acre not as good due to severe weather.

 

240

Rep. Barnhart

Under FPA what sort of additives are placed on land for new or growing timber?

 

231

Ivanoff

Described experiments with fertilization have not proved to be cost effective; herbicides are used in low doses to regenerate a site without using burns.

 

262

Rep. Verger

Are restrictive standards brought on by legislative process, administrative rules or other agencies?

 

271

 

 

 

 

284

Wilkeson

 

 

 

 

Wilkeson

The legislature has ignored statute relating to forest management, now trees are mature and have commercial value which is why legislative review is timely.  Board of Forestry direction is through legislation regarding this law, not other agencies.

 

Swiss Needle Cast (SNC) is in the bill because Department of Forestry is converting too slowly and need to get productivity back.

 

297

Rep. Barnhart

Is there a reason for disease control to get the diseased trees out quickly?

 

299

Wilkeson

Only for the reason to get the land back into a productive state.  The disease doesn’t kill the trees, just stops the growth, doesn’t add volume every year as it should.

 

304

Rep. Barnhart

Asked if a diseased tree endangers nearby trees?

 

307

Wilkeson

Believes density is a factor in impact of disease.

 

313

Ivanoff

The department’s experts would say the jury is out on stand density, thinning may exacerbate. Logic says if host species is eradicated the ability to infect would be diminished.  There should be a strategy to get lands producing in an environmentally sensitive manner.

 

331

Rep. Hass

How much of $179 million is SNC?

 

337

Ivanoff

Believes about half of Tillamook land base is impacted by SNC. 

 

359

Rep. Hass

Is it addressed by Section 2?

 

362

Ivanoff

Answered affirmatively.

 

365

Rep. Hass

In Section 3 where “the board may not allow or require more restrictive standards” are you talking about rules?  How can it do that?

 

368

Ivanoff

That section refers to FPA; it says that environmental protection standards applied on state land should be the same as applied on private lands.

 

374

Chair Shetterly

If those standards are insufficient should be addressed for all forest owners?

 

378

Ivanoff

Answered affirmatively.

 

404

Steve Thomas

Introduced forestry panel.

 

424

Ross Holloway

Spoke in opposition to HB 3632, (Exhibit 6), in its current form as it would diminish forest plans developed with public input over the past 10 years and recently adopted by DOF.  Said it would impose an approach that has not been collaboratively developed by stakeholders.

 

 

TAPE 170, SIDE B

 

073

Janet McLennan

Spoke in opposition to HB 3632, (Exhibit 7). Paraphrased written testimony on history of land acquisition, and management standards and “greatest permanent value rule”.

 

280

Commissioner Tim

Josi

Not asked by DOF to testify.  Difficult decision to testify against HB 3632 based on Tillamook County’s need for jobs and revenues (Exhibit 8).  Paraphrased written testimony.  Said FPA does a very good job of protecting private forest lands environmentally.

 

 

TAPE 171, SIDE B

 

058

Rep. Hass

Trust commission is that the same as County Forest Land Commission?

 

066

Commissioner Josi

Described capacity of FTLAC and CFTLC.

 

077

Rep. Hass

What about stepping up harvest of SNC trees?

 

085

Commissioner Josi

There are a lot of acres being harvested, Looks like clearcut.

 

098

Holloway

Discussed harvest implementation plans and studies, past, current and future.

 

124

Rep. Barnhart

What percentage of the forest is seriously infected?

 

126

Holloway

Discussed annual surveys, approximated 80,000 acres or one-third of district.

 

141

Rep. Verger

Coos County has very little SNC, is that true?

 

143

Holloway

Interior zone has little SNC.  In Coos County, there is some SNC; it appears to be increasing, but not as serious as in the fog belt.

 

158

Rep. Verger

There is criticism of the management of the Elliot State Forest, are you working to harmonize plans.

 

162

Holloway

Discussed amendment for Elliot State Forest management plan.

 

182

Chair Shetterly

Discussed that the theme of testimony has been strong deference should be given to DOF. Explained Legislature’s responsibility in directing policy and in a changing economy, it becomes an area of renewed interest in looking for new jobs and subsequent revenues to look at the prospect of converting a resource, while observing FPA and environmental laws.

 

237

Rob Freres

Spoke in support of HB 3632, as it would increase timber harvest and government contractors prefer State of Oregon as a supply source.  Feels Forest Service does a wonderful job, but is being overly conservative in management of lands.  Feels harvest can safely and environmentally be increaseed, and return revenue to the general fund.

 

287

Kirk Harrison

Spoke in support of HB 3632. Relies on ODF timber sales; discussed competition for limited log supply.  Believes any bill ensuring timber production should be an ODF priority to help keep mills running, people working and the economy going. Reiterated Ivanoff’s testimony regarding the management style in Northwest Oregon on the partial cutting of old growth stands; discussed disadvantage based on limited maximum log size

 

334

Chair Shetterly

Isn’t that the trend, are trees growing beyond capacity to be milled?

 

336

Harrison

Answered affirmatively, knows of only 1 mill that can accommodate large logs.

 

344

Freres

Added that his company mills large logs.

 

349

Tina Swanson

Spoke in support of HB 3632.  Described ability of its family mills to use 13 to 15 inch logs in its entirety; provision of living wage jobs; active ownership and management of 140,000 acres which meets or exceeds FPA standards, provides one-third of log usage for their own mills.

 

 

TAPE 172, SIDE A

 

010

Paul Hanneman

Spoke in support of HB 3632, (Exhibit 9).  Paraphrased written testimony.

 

075

Comm Propes

Spoke in support of HB 3632.  Clarified County Forest Trust Lands have not taken a position on HB 3632.  Counties to date have not agreed with the FPA plan implemented and cited disagreement among environmental groups and the DOF.  Need this legislation to protect the counties.  Described legislative history.  Discussed family wage jobs for Tillamook and Polk Counties.  Cited change to tourist industry with associated low paying jobs requiring both parents to work and resulting in family problems.

 

236

Chair Shetterly

Closed Public Hearing on HB 3632.

 

 

237

Chair Shetterly

Meeting adjourned at 10:40 a.m.

 

Tape Log Submitted by,

 

 

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Yates, “Staff Measure Summary HB 3632”, 1 page

2.       Yates, “Revenue Impact HB 3632”, 1 page

3.       Hampton, “Testimony HB 3632”, 5 pages

4.       Ivanoff, “Testimony HB 3632”, 1 page

5.       Wilkeson, “Overview Northwest Oregon State Forest Lands”, 3 pages

6.       Holloway, “Testimony HB 3632”, 3 pages

7.       McLennan, “Testimony HB 3632”, 4 pages

8.       Josi, “Testimony HB 3632”, 2 pages

9.       Hanneman, “Testimony HB 3632”, 1 page