1. Regulatory Prescription to create healthy forests and a healthy economy Rep. Richard DeBolt, Washington State Legislature

2. Timber and Washington’s Economy Forest products manufacturing is the second largest sector in the state. Forest products manufacturing account for more than 15% of total manufacturing income in the state. Employment in the logging, wood product & paper product sectors has been in decline. Unemployment in timber dependent counties remains higher than in urban counties

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4. Timber Industry Employment – 1990 to present

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6. Forestland Ownership

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8. Volume of Timber Harvested by Ownership FY 2002 In millions of board feed While the federal government manages 43.6% of the timberlands, only 2% of the timber harvested comes from federal forestlands.

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10. Statewide Washington Harvests 1970 - 2002 Total Hardwoods

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12. Forest Products Gross Business Income Trends

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14. Timber Industry Regulations in Washington 1949 - Hydraulics Code GuidelinesWDFW 1969 - National Environmental Policy ActEPA 1970 - Federal Clean Air ActEPA 1971 - Wash. Clean Air ActDNR/DOE 1971 - State Environmental Policy ActDOE 1971 - State Shorelines Management ActDOE 1971 - Wash. Pesticide Control ActWSDA 1972 - Insecticide, Fungicide & Rodenticide ActEPA 1972 - Federal Clean Water ActEPA 1973 - State Water Pollution Control ActDOE 1973 - Federal Endangered Species ActUSFW/NMFS 1974 - State Forest Practices ActDNR 1997 Habitat Conservation Agreement with Feds 1999 Forest & Fish LawDNR Forest practices rules have been amended and strengthened thirteen times since they were implemented in 1975.

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16. Impact of environmental regulations Deterioration of forest health Higher costs to taxpayer Fire suppression Lost revenue for trust beneficiaries Lost revenue for local government Higher risk of fire damage to public and private property

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18. Prescription for a healthier forest Recent Legislative Efforts to Improve Forest Health  Changes to the Forest & Fish Law  Stormwater fees on timberlands prohibited  Contract harvesting program implemented Statewide forest health legislation

19. Prescription for a healthier forest DNRs new preferred alternative plan 10-year plan Increase in sustained yield Increase in net revenue Precommercial thinning in riparian areas (mainly where hardwoods exist) No management in riparian areas other than road access Adoption expected this summer

20. Outlook for timber harvest (DNR preferred alternative)

21. Prescription for a healthier forest Streamline the environmental appeals process Improve accountability in rulemaking Expand “contract harvesting” Provide emergency powers to remove of fuel loads in conservation areas Allow more flexibility for harvesting of hardwoods in riparian areas.

22. Prescription for a healthier forest Fully fund the Forest Riparian Easement Program to compensate landowners Review Forest Practices Act to determine if desired outcomes are being achieved Verify federal acceptance of Forest & Fish law by June 2005. Revisit and revise Forest & Fish Law to resolve unintended consequences

23. Regulatory Prescription to create healthy forests and a healthy economy Rep. Richard DeBolt, Washington State Legislature