Chapter 201
AN ACT
HB 2293
Relating to Forest Resource Trust; creating new provisions; amending
ORS 526.700, 526.705, 526.710, 526.725, 526.730, 526.735, 526.775 and 526.783;
and repealing ORS 526.715.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 526.700 is amended to read:
526.700. (1) The
(2) The members of the
State Board of Forestry shall have overall responsibility for management of the
Forest Resource Trust. The board is authorized to establish policies and
programs in addition to those created by ORS 526.700 to 526.775 to further the
purposes of the trust.
(3) The board shall
appoint an advisory committee consisting of no more than 15 members
representing the public, nonindustrial private forestland owners, the forest
products industry, forest consultants and contractors, the financial community,
environmental and conservation organizations and other related interests
including affected state agencies. The advisory committee shall assist the
board in setting policy for the best use and investment of funds available to
the trust and otherwise assist board members in the performance of their duties
as trustees.
(4) In accordance with
any applicable provisions of ORS chapter 183, the board shall adopt rules to
carry out the duties, functions and powers of the Forest Resource Trust and to
guide implementation of the [stand
establishment program created under ORS 526.705]
(5) The State Forester
is responsible for implementing board policies and programs for the Forest
Resource Trust.
SECTION 2. (1)
The State Board of Forestry shall establish a voluntary cost share program to
ensure that the purposes of the
(2) In advancing moneys
and providing other assistance for stand establishment and improved forest
management, the State Forester shall:
(a) Give priority, to
the extent possible, to lands zoned for forest use under county comprehensive
plans and to other lands with moderate to high probability of success for
long-term stand establishment and improved forest management activities; and
(b) Assist landowners in
securing payments for ecosystem services.
SECTION 3.
ORS 526.705 is amended to read:
526.705. (1) To carry
out the duties, functions and powers of the Forest Resource Trust, there is
created a voluntary [stand establishment]
loan program to finance [the
establishment and maintenance of healthy stands of trees in an environmentally
responsible manner on unstocked and underproducing nonindustrial private
forestlands. The goal of the stand establishment program is to reforest 250,000
acres by the year 2010] establishment of stands of trees and the
improved management of qualified private and local government forestlands.
(2) In advancing moneys
and providing other assistance for stand establishment, the State Board of
Forestry shall:
(a) Give priority to
lands zoned for forest uses under county comprehensive plans and to other lands
with moderate to high probability of success [in reforestation or environmental restoration] for long-term
stand establishment and improved forest management activities; and
[(b) Consider development of financial and other incentives for good
land management, compliance with plans for established stands, and for growth
to maturity and harvest.]
(b) Assist landowners
in securing payments for ecosystem services.
(3) The [board shall] State Board of Forestry
may, by rule, establish [options]
financial agreements for the repayment of [advanced] moneys advanced consistent with subsection (2) of
this section and including but not limited to the following, singly or in
combination:
(a) A revenue-sharing
proposal that guarantees the landowner a percentage of the receipts upon
harvest after payment of harvest and severance taxes;
(b) Financial
agreements; and
(c) Repayment in full
with interest if a landowner fails to get the stand free to grow as that term
is defined in the Oregon Forest Practices Act, unless said failure is through
no fault of the landowner.
(4) The terms of
repayment shall be based on considerations that represent the best use and
investment of funds including:
[(a) Reasonable assumptions regarding future timber prices and yield;]
[(b)] (a) Rates of return, as established by the State
Board of Forestry, that [sufficient
to] provide a reasonable [and prudent]
payback to the Forest Resource Trust of project costs [including, but not limited to, site
preparation, planting, animal protection, release, planning and layout of
treatment units, supervising the activities, and accounting and legal work];
[(c)] (b) [Offsets
attributable to] Measurable anticipated public benefits such as job
creation, tax revenue, increased timber supply and environmental improvement;
and
[(d)] (c) The extent to which landowner contributions of
money, labor or other resources reduce the risk to the Forest Resource Trust.
(5) Participating
landowners shall not be required to comply with forest practices beyond those
required by state and federal law with the exception [of] that planting standards for stand establishment [which] may be more than the required
minimum. [Participating landowners who
voluntarily agree to manage the established stand beyond minimum standards may be
eligible for financial and other incentives if consistent with subsections (2)
and (3) of this section. Payments to any landowner for stand establishment
shall not exceed $100,000 in any two-year period.]
(6) The State
Forester is authorized, on behalf of the
(a) Partial to full
financing to the landowner, as specified in rules of the State Board of
Forestry, from such moneys as may be available in the
(b) Any obligations of
the landowner for repayment of moneys advanced including, but not limited to:
(A) Terms for sharing
the revenue gained from the sales of timber and forest products, including
salvage, from the lands enrolled under the voluntary loan program;
(B) Acknowledgement that
the rights and obligations of the landowner and the Forest Resource Trust and
all of the terms of the contract are covenants that run with the land upon
sale, lease or transfer of the land benefiting from the voluntary loan program
until all future obligations of the contract are met;
(C) Financial terms
allowing the landowner to terminate the contract;
(D) Agreement that there
is no obligation to repay the moneys advanced prior to sale of timber and
forest products from the land;
(E) Terms to protect the
contract from modification unless both parties consent to modification;
(F) Allowance for
different prescriptions for stand management; and
(G) Repayment in full
with interest if the landowner fails to meet any terms of the contract.
(c) Acknowledgement by
the landowner that the State Forester may require a statutory lien on the
forest products.
(7) In addition to the
contracts provided for in subsection (6) of this section, the State Forester,
on behalf of the
(8)(a) The State
Forester shall record a contract described in subsection (6) of this section
with the recording officer of the county or counties in which the forestland is
located.
(b) Upon recording, the
rights and obligations of the landowner and the
(c) The interest of the
(d) A memorandum of
contract must include, but is not limited to:
(A) The date of
execution of the contract;
(B) The name of each
landowner of the forestland identified in the contract;
(C) A legal description
of the forestland subject to the contract that conforms with ORS 93.600; and
(D) If the contract is
secured by a lien as provided in ORS 526.735 to 526.775, a statement from each
landowner acknowledging the lien.
(9) As used in this
section, “eligible landowner” means a qualified private or local government
forestland owner who:
(a) Owns land that
qualifies as forestland, as defined by the State Board of Forestry.
(b) Has not received an
exemption from reforestation requirements pursuant to rules adopted by the
board under ORS 527.760.
SECTION 4.
ORS 526.710 is amended to read:
526.710. To assist the
State Board of Forestry in carrying out the duties of the Forest Resource
Trust, the State Forestry Department shall:
(1) Identify potentially
suitable lands, and [market stand
improvement services to] educate the owners of those lands on
(2) Provide technical
and other management assistance to participating landowners.
(3) Monitor compliance
with [the stand establishment program]
(4) Encourage
involvement of the landowner.
(5) Encourage the use of
private contractors, consultants,[and]
forestry extension programs, nongovernmental organizations and landowner
cooperatives.
(6) Develop project
plans in cooperation with landowners that establish clear benchmarks for
compliance with terms of the plan.
(7) Release from
financial obligation for any portion of the qualified private and local
government forestlands included under Forest Resource Trust programs and
irretrievably lost to insects, disease, fire, storm, flood or other natural
destruction through no fault of the landowner.
(8) Secure provisions
for access to the land by the State Forester.
(9) Give consideration
to conservation plans or strategies adopted by the State Department of Fish and
Wildlife when setting priorities for
SECTION 5.
ORS 526.730 is amended to read:
526.730. The State Board
of Forestry, after consultation with the advisory committee appointed pursuant
to ORS 526.700, shall prepare and submit a [biennial]
report to the Seventy-sixth Legislative Assembly [with regard to program accomplishments, the future structure of the
Forest Resource Trust, alternatives to delivery of trust services by the State
Forestry Department and changes to qualifications for landowner participation
in the program. The board shall also enter into an agreement with an
independent party to evaluate program goals, administration, problems and
outcomes. The evaluation shall be made a part of any biennial report to the
Legislative Assembly and shall be used by the board in consultation with the
advisory committee in modifying terms and policies of the Forest Resource Trust]
that contains the following information regarding the Forest Resource Trust
Fund:
(1) Program
accomplishments;
(2) Financial assistance
payments to participating landowners;
(3) Revenues received by
the fund; and
(4) Expenditures made
from the fund.
SECTION 6.
ORS 526.735 is amended to read:
526.735. As used in ORS
[526.735] 526.700 to 526.775,
unless the context otherwise requires:
(1) “Contract” means the
contract signed by the forestland owner and the State Forester, acting on
behalf of the Forest Resource Trust pursuant to ORS [526.715] 526.705.
(2) “Ecosystem
services” means environmental benefits arising from the conservation and
management of forestland, including, but not limited to, fish and wildlife
habitat, clean water and air, pollination, mitigation of environmental hazards,
control of pests and diseases, carbon sequestration, avoidance of carbon
dioxide emissions and maintenance of soil productivity.
[(2)] (3) “Forestland owner” means the individual,
corporation, limited liability company, partnership, association, joint stock
company, trustee, business trust or unincorporated organization holding fee
simple ownership of land capable of producing forest products.
[(3)] (4) “Forest products” includes, but is not limited to,
trees, logs, poles, lumber, chips or pulp that flow from investment of the
Forest Resource Trust.
(5) “Forest Resource
Trust programs” means the voluntary cost share program established by section 2
of this 2007 Act, the voluntary loan program established by ORS 526.705 and
other programs administered by the State Board of Forestry to further the
purposes of the Forest Resource Trust pursuant to ORS 526.700 to 526.775.
(6) “Qualified private
or local government forestland owner” means a private or local government
forestland owner that qualifies for a specific
SECTION 7.
ORS 526.783 is amended to read:
526.783. As a means of
consistently reporting forestry carbon offsets created through programs
established under ORS 526.725, 526.780 to 526.789, 530.050 or 530.500, the
State Forester shall develop a forestry carbon offset accounting system for the
registration, transfer or sale of forestry carbon offsets. The forestry carbon
offset accounting system shall:
(1) Use accepted
principles and standards relating to [the
creation, measurement, accounting] creating, measuring, monitoring,
marketing, verifying, registering, transferring and selling [of] carbon offsets used as mitigation
for carbon dioxide emissions; and
(2) Be consistent with
any rules adopted by the State Board of Forestry under ORS 526.786.
SECTION 8. ORS
526.715 is repealed.
SECTION 9. ORS
526.725 is amended to read:
526.725. (1) The State
Board of Forestry or the State Forester may enter into agreements with private,
governmental or other organizations and may accept contributions, gifts or
grants from any source to carry out the duties, functions and powers of the
Forest Resource Trust. All moneys received by the board or the State Forester
pursuant to this section shall be deposited in the Forest Resource Trust Fund.
(2) The board may
acquire, on behalf of the Forest Resource Trust, through exchange, lease or
purchase, land only to the extent necessary to carry out the duties, functions
and powers of the trust.
(3) Agreements with
private, governmental or other organizations under subsection (1) of this
section may specify the terms under which funds are invested and benefits
accrue to the contributing party to the extent the agreement is consistent with
the provisions of ORS 526.700 to 526.775.
(4) The State Forester
may, on behalf of the Forest Resource Trust, market, register, transfer or sell
forestry carbon offsets attributable to the lands enrolled in the stand
establishment program under ORS [526.715]
526.705. Prices for the transfer or sale of forestry carbon offsets may be
negotiated but must be at or greater than fair market value.
(5) Nothing in ORS
526.700 to 526.775 is intended to create an enforceable trust on any agency or
officer of the State of
SECTION 10.
ORS 526.775 is amended to read:
526.775. Notwithstanding
ORS 526.735 to 526.775, if the forest landowner and the State Forester entered
into a contract as provided in ORS [526.715]
526.705 and the contract is terminated or breached, and there are no
forest products or accounts receivable subject to the lien created under ORS
526.740, any judgment entered against the landowner for breach or termination
of the contract may be executed on any property of the landowner.
Approved by the Governor May 30, 2007
Filed in the office of Secretary of State May 31, 2007
Effective date January 1, 2008
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