Oregon's hard-hit timber counties

Oregon's hard-hit timber counties are 'eating our seed corn' as budget problems grind on

 By Eric Mortenson, The Oregonian 

View full sizeJamie Francis/The Oregonian 2009Oregon counties say more logging will help solve their budget problems, critics aren't so sure.

In case anyone wondered, Oregon's timber counties are still suffering from broken budgets, unemployment, and bureaucratic, environmental, political and legal gridlock. 

Representatives made that clear in testimony Thursday before the Joint Legislative Task Force on County Payments. Perhaps six to 12 Oregon counties could cease offering basic services unless they find money to replace federal timber payments; some have closed departments, used reserve funds and even released jail prisoners to cut costs. 

"We're eating our seed corn," Coos County Commissioner Fred Messerle told committee members Thursday in Salem. "Deferring maintenance and capital investments is killing us, and we're managing for the future on a crisis basis." 

The county funding problem stems from the steep reduction in timber harvests on federal forests, which makes up 53 percent of the land in Oregon. Counties receive no property tax revenue from federal land, so the U.S. Forest Service and Bureau of Land Management for decades provided a share of timber sale money to county governments and schools. 

Messerle and many other county and industry officials believe increasing timber harvests on federal land is the answer, because counties get a share of harvest revenue. Conservationists and other critics argue the counties have had decades to diversify their economies and find other funding sources. 

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Continuing coverage of the county payments program created in 2000 to reimburse counties for lost income from the sale of timber on federal lands.

Messerle applauded Gov. John Kitzhaber's search for a solution but said many rural timber counties may be "broke" by the time it comes about. 

"We need an advocate at the state level to push it forward," he said. "We've got the tools to responsibly use our resources, but we need to have the will to do it. 

"Rural Oregon is on the edge of a cliff," Messerle concluded. "We don't want to leave a legacy of poverty and failure, and of being referred to as the Appalachia of the West." 

Timber harvests and revenue declined because of policy changes, recessions and environmental restrictions, so the federal government attempted to fill the gap with the Secure Rural Schools and Community Self-Determination Act of 2000. The act was renewed twice but expired in 2012. 

Congress passed a bill that provided one more year of funding, but the $100 million included for Oregon counties is less than half of what they previously received annually. 

One of the proposed solutions involves what are called the O&C Railroad lands, about 2.3 million acres of timber scattered in a checkerboard pattern over 18 counties. The land was granted to a railroad company that folded; the federal government took the land back and put it under the control of the Bureau of Land Management. 

Logging on O&C land has been curtailed like everywhere else, but U.S. Rep. Peter DeFazio, D-Ore., and others have proposed a policy change. Half the land, containing the best old growth, would be left alone, preserved except for thinning or other work needed to keep the forest healthy. The other half would be logged over time; some of it on 60- to 80-year harvest rotations and some on 120-year rotations. Timber sale revenue would be distributed to the counties and schools. 

"We have a solution in front of us, we've got to get it implemented," Douglas County Commissioner Doug Robertson said. 

Tom Tuchmann, the governor's adviser on the issue, agreed national forest policy needs work, but starting with the O&C lands makes sense. "It's a lot easier to stop things in Washington (D.C.) than it is to get them passed," he said. 

--Eric Mortenson

Congress must protect water quality, forestry jobs in Oregon

Congress must protect water quality, forestry jobs in Oregon
 By Guest Columnist
By Bruce Hanna and Arnie Roblan

There's an environmental success story in Oregon's timber industry you may not know about -- one that's helped forest owners protect our rivers and streams from pollution for more than 35 years while supporting tens of thousands of critical jobs in Oregon. That success story is the Oregon Forest Practices Act. Since 1971, this policy has helped protect soil, air, water, fish and wildlife, as well as forest resources, while also supporting one of Oregon's top-producing industries: timber. But this balance between protecting our environment and supporting a critical natural-resource-based economy is at risk. 

In 2010, the 9th U.S. Circuit Court of Appeals reversed more than 30 years of practice and ruled that forest roads are a "point source" of water pollution. That new classification would require forest owners to undergo an unnecessary, rigorous permitting process intended for other point sources such as sewage plants and factories. 

The court's decision to reclassify forest roads represents a break from judicial precedent, which has upheld the Environmental Protection Agency's authority under the Clean Water Act to identify the industries that present the greatest pollution threats to our waterways. The EPA has determined that forest roads are not a major contributor to pollution and are better managed by best forest practices established in each state -- such as Oregon's Forest Practices Act. 

The current regulatory process is working and the timber industry needs certainty that it can continue, but if the 9th Circuit's ruling is allowed to stand, Oregon would lose more than 5,000 jobs and $150 million in wages in our already depressed rural communities. The result would be new, unnecessary rules that do nothing to strengthen Oregon's already stringent water quality protections, thousands of jobs lost and a further blow to an already struggling industry. Under this ruling, there would be no benefit to Oregon, only hardship. 

Last week the EPA tried to address the uncertainty this ruling presents with a proposal for an administrative rulemaking process. While the stated intent is laudable, administrative rulemaking is not the answer. First, rulemaking does not protect the industry from the inevitable lawsuits that litigators are waiting to file, which are costly and would put an indefinite halt to timber-related business activity in Oregon. Second, rulemaking does not address the issue of forest roads as "non-point sources" of pollution. Third, there is still the option that a new rule could require new and unnecessary industrial discharge permits, which would cost Oregon jobs and wages. 

At this point, the only true path to protect a regulatory system that works and supports a sustainable timber industry in Oregon and across the nation is an act of Congress. Congress and the Obama administration have provided leadership on this issue before, and they need to again. Last December, Congress passed legislation that temporarily prevented the 9th Circuit's ruling from taking effect, but that protection expires in September. We need Congress and the president to make that legislation permanent, providing legal certainty for an important American industry and the tens of thousands of workers it employs. Anything short of permanent legislative action would lead to ongoing and costly litigation, lengthy administrative processes and lingering uncertainty for the timber industry, our state and our nation. 

Oregonians are committed to maintaining healthy, sustainable forests. It's not only the right thing to do, but it's necessary for the long-term viability of the timber industry and rural communities. These unnecessary threats of increased costs, lost jobs and years of litigation could force forest owners to convert their land into other uses with far fewer benefits to water quality and our economy. 

The bottom line is that rules exist that have protected rivers and streams in forestland from pollution for more than 30 years. Congress needs to protect these rules, rather than allow an uncertain rulemaking process to be subject to years of court battles or to allow the 9th Circuit's misguided decision to muddy the water. 

Bruce Hanna and Arnie Roblan are the co-speakers of the Oregon House of Representatives. 

Ninth Circuit decision further hamstrings Oregon's economy

By Arnie Roblan and Bruce Hanna Guest Columnists

The Oregonian reported on a decision by the U.S. 9th Circuit Court of Appeals that overturns 35 years of established Environmental Protection Agency policy for regulating forest roads under the Clean Water Act ("Oregon will appeal ruling aimed at curbing logging road pollution," July 25). This court case decision creates immediate problems for Oregon's timber economy – problems which our state simply cannot afford.

As Co-Speakers of the Oregon House, we know that Oregon has a rich history of responsible use of its natural resources, and has in place a strong regulatory system through the Oregon Forest Practices Act and various administrative rules. In Oregon, we have a very successful track record of protecting water quality and aquatic habitat. These "Best Management Practices" are updated regularly and strengthened in  response to new scientific research. We take great pride in the way private landowners and foresters are protecting our state's natural resources.

The 9th Circuit court decision would put new burdens on both the small and large owners of Oregon's 11 million acres of private forestlands. The forest products industry is a vital part of Oregon's economic survival. With unemployment lingering close to ten percent statewide, and up in to the teens in our forestry-dependent counties, the threats presented by the 9th Circuit Court's short-sighted opinion will only further depress economic recovery.

The Court's decision potentially creates legal paralysis threatening 120,000 forest related jobs (with payroll totaling $4 billion) and $130 million in state income and severance tax revenues that pay for vital public services. The new court ruling will not achieve its intended environmental benefits. The uncertainty could force some forest landowners to convert their forests to other uses, like commercial or residential developments. And perhaps most importantly, if this decision stands, Oregon's forestry industries and those employed by it will lose market share to competitors overseas or in other regions of the country who are not subject to these burdensome permit requirements and their resulting legal exposure.

We cannot imagine a worse time to implement unnecessary and bureaucratic regulations on such a critical contributor to our state's economy. Senator Ron Wyden and Congressmen Kurt Schrader and Greg Walden have stepped up for Oregon and introduced federal legislation aimed at correcting this flawed court decision. Their legislation will restore the long-standing, sensible, state oversight that has encouraged sound stewardship and provided good jobs and clean water for Oregonians.

It is our hope that Congress will pass this legislation, and that the Obama administration will work with Congress to protect much needed jobs in our state.

Arnie Roblan, D-Coos Bay, and Bruce Hanna, R-Roseburg, are co-speakers of the Oregon House of Representatives.

Agreement on parks, lottery money falters amid politics in evenly split Oregon House

Published: Friday, February 25, 2011, 8:31 PM    

By Kimberly Melton, The Oregonian

Fearing two key political allies were headed for war, Oregon House Speaker Dave Hunt brokered an agreement last summer that helped pass Measure 76, which dedicates a portion of state lottery proceeds to parks and natural resources.

Conservationists wanted the measure and the state teachers union dropped their opposition after Democratic lawmakers agreed to put a second measure on the May ballot that would protect schools and other state programs.

It was a win-win solution, said Hunt, D-Gladstone. That was then.

Democrats lost their supermajority and Hunt lost his speaker's gavel. And this week what was assumed to be an easy legislative fix instead became a prime example of the new political realities in Salem, where the House is evenly split between 30 Democrats and 30 Republicans. At stake are issues most Oregonians care about: the protection of our natural landscape and strong schools.

The agreement that Hunt brokered unraveled Tuesday when the Nature Conservancy, the primary backer of Measure 76, objected to proposed May ballot language. And Republicans made it clear that they were not in a rush to keep promises they didn't make or even know about until this month.

Speaker Bruce Hanna, the Roseburg Republican who now shares the title with Democrat Arnie Roblan from Coos Bay says it's problematic to make a commitment like that on behalf of future leaders.

"It's like writing a check you can't cash," he said.

Lawmakers and conservationists insist they're committed to finding a solution though it's uncertain whether the fix will be done in time to make the May ballot and avoid negative financial impacts in next year's budget.

For more than a decade, 15 percent of revenue generated by the Oregon Lottery has been diverted to Oregon parks and natural resources, in total more than $800 million. That money has financed new parks, recreation areas and park repairs. And it has supported efforts to keep rivers cleaner and safer for native salmon and wildlife.

Measure 76 continued this set-aside indefinitely. But as new parks open while state services diminish and school days are cut short, some, including then-Gov. Ted Kulongoski and the Oregon Education Association, questioned whether Oregon should make the allocation permanent. The measure also shifted more of the money to regional and local grants, a move that lawmakers said would create an $8 million gap for state-run natural resources programs in the 2011-13 biennium.

"The lottery was only down slightly or up slightly, whereas the general fund was off the cliff," Hunt said. "So schools and health care and public safety were getting whacked and even natural resource programs funded by the general fund were getting whacked, but parks and salmon were getting increased... That's where we sat down with them and said, 'We've got policy challenges.'"

The powerful state teachers lobby planned to oppose the measure and Hunt as well as conservationists wanted to avoid a public and expensive battle between conservationists and schools supporters.

"The most important thing for the campaign was to get that agreement done in order to be successful," said Jon Isaacs, executive director of the Oregon League of Conservation Voters, which ran much of the Measure 76 campaign. "This agreement makes Measure 76 better and adds fiscal accountability. It's good public policy and avoided funded opposition from the OEA."

In August, Hunt, Rep. Jules Bailey, D-Portland, and Sen. Jackie Dingfelder, D-Portland, signed the agreement with three conservation groups pledging to support Measure 76 and also stating that House leaders would draft legislation in 2011 to put more limits on the law, establishing a funding cap, a sunset provision and the ability for the Legislature to override the funding formula during an economic crisis.

No Republican legislators signed the agreement or were involved in the discussion. Hunt said he didn't feel he needed to include anyone from the other party.

"The key was getting the environmental groups to agree," he said.

A majority of Oregonians in every county supported Measure 76 in November, totaling more than 69 percent statewide.

But as the specifics of the second proposed measure, House Joint Resolution 29, emerged earlier this month, Nature Conservancy officials say the proposal didn't reflect the earlier agreement. On Tuesday, Nan Evans, government relations director for the Nature Conservancy, told the House Energy, Environment and Water committee that her organization was surprised to see language that reduced natural resources grants, which ensure individual projects in local Oregon communities.

In a statement later, Russell Hoeflich,</cq> Oregon director of the Nature Conservancy, said his group is "committed to keeping our agreements and to keeping faith with Oregon voters, who rightly expect the measure they voted for to be implemented fully and fairly."

Hunt accuses the Nature Conservancy of reneging on their deal.

Meanwhile, Republicans are playing catch-up on the agreement and the intricacies involved.

"I came to the party after it was over," said Rep. Cliff Bentz, a Republican from Ontario, who is part of a group working to resolve some of the issues raised by Measure 76 and its aftermath.

Rep. Vic Gilliam, a Silverton Republican and co-chair of the House Environment committee closed Tuesday's hearing with a clear message that he's not going to be rushed into a measure for the May ballot that might also need to be fixed.

"I didn't know for the first time in 152 years we would be even-steven," he said. "This is a different climate, one that we didn't create individually but one we are in."

-- Michelle Cole
-- Kim Melton

Biomass Moving to the Front

Governor John Kitzhaber and the Oregon legislature are both trying to use biomass production to help jump-start job creation.  The legislature held a hearing on HB 2936, the bill would grant a $10/ton tax credit for transporting biomass.  The bill includes sponsorship by House Speakers, Reps. Hanna, R-Roseburg, and Roblan, D-Coos Bay.  Reps. Jim Thompson, R-Monmouth, Sherrie Sprenger, R-Albany, and Mike Schaufler, D-Portland, crafted the bill.

Timber industry testimony from the Oregon Forest Industries Council and Associated Oregon Loggers clearly pointed out that biomass production can only be successful when timber harvests include sawtimber to help pay for biomass removal.  The biomass tax credit hearing coincided with an earlier in the week visit from President Barack Obama.

Mr. President, don't restrict biomass

Kitzhaber's biomass strategy faces hurdles

At the Capitol

Legislature Re-Starts

Oregon’s legislature returned to the Capitol February 1 to begin deliberations for the 76^th legislative session.  They previously met for three days in January to organize, elect leaders and introduce 1,600 bills.  Under a voter-approved referral, the legislature will meet annually with the 2011 session scheduled to end June 30, 2011.

Legislative hearings began on some of the thousands of bills and issues that have been or will be introduced under the tight deadlines to move the session along.  Observers noted that the first week felt like May proceedings of previous sessions.

After super-majorities of Democratic control in 2009, the 2011 legislature is much more evenly balanced with the Senate’s 16-14 Democratic majority and the House split evenly 30-30.  The House will operate under a first of its kind power-sharing agreement, with two Speakers, Representative Bruce Hanna, R-Roseburg, and Representative Arnie Roblan, D-Coos Bay.

Bruce Hanna and Arnie Roblan: The new buddy act running the Oregon House of Representatives

Governor Meets with Business Group

Governor John Kitzhaber set the tone for the legislative session by joining The Oregon Committee at their weekly meeting.  Kitzhaber spoke about the budget he released the day before.  The Oregon Committee is the coalition of businesses that began as a political committee and is now focused on policy matters for the legislative session.

Clearly, the Governor wants help from the business community to move his budget and the rest of his legislative agenda forward.  Kitzhaber, Version 1 & 2, and the business community frequently disagreed about issues.  These disagreements and Republican control of both the House and Senate led to the Governor earning the Dr. No moniker for the former Emergency Room Physician.

In response to a question, the Kitzhaber, Version 3, addressed timber and biomass issues.  See below link.

Governor Kitzhaber Talks Timber

Rubber will meet the Road

Despite the thousands of introduced bills, the 2011 session is going to be characterized by how the Governor and the legislature deal with the significant revenue shortfall for the 2011-2013 Biennium.

Kitzhaber and the legislature must reduce public employee positions, compensation, benefits or a combination of the three to adopt a balanced budget.  The public employee unions, which helped elect the Governor, will not be pleased that “Oregon’s budget is balanced on the backs of state workers.”  Public employee union reaction could determine whether Kitzhaber Version 3.0 is his final term.

After years of growth, Oregon's budget is set to fall

DEQ Water Quality Standards Shake the Halls

Legislative leaders expressed concern over the DEQ proposed new Water Quality Standards that address water toxins.  The DEQ is set to adopt the strictest standards in the Nation.  Neither municipal or industrial wastewater dischargers can meet the new standards.

The House Business & Labor Committee has scheduled an informational hearing for February 11 to hear from the DEQ, EPA and wastewater discharges concerning the proposed standards.

DEQ Proposes Revisions for Water Quality Standards to Help Reduce Toxic Pollutants in State’s Waterways