74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 879
A-Engrossed
House Bill 2293
Ordered by the House April 11
Including House Amendments dated April 11
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Forestry Department)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Identifies Forest Resource Trust programs as those authorized
by State Board of Forestry to further purposes of Forest Resource
Trust. Establishes voluntary cost share program.
{ - Establishes voluntary environmental services program. - }
Establishes voluntary loan program. { - Establishes credit for
environmental services. Clarifies financial assistance terms for
Forest Resource Trust programs. - } Clarifies State Forestry
Department's responsibility to assist State Board of Forestry in
carrying out duties of Forest Resource Trust. { - Clarifies - }
{ + Revises + } conditions for contracts between State Forester
and eligible landowners. { - Clarifies - } { + Modifies
requirements relating to + } State Board of Forestry report to
Legislative Assembly.
A BILL FOR AN ACT
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 Oregon:
SECTION 1. ORS 526.700 is amended to read:
526.700. (1) The Forest Resource Trust is established in the
State Forestry Department. The Forest Resource Trust shall
provide funds for financial, technical and related assistance to
{ - nonindustrial private - } { + qualified private and local
government + } forestland owners for stand establishment and
improved management of forestlands for timber production as well
as wildlife, water quality and other environmental purposes.
(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 - } { + Forest Resource Trust programs + }.
(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
Forest Resource Trust are achieved. The purpose of the program is
to provide financial and other incentives for stand establishment
and improved management of nonindustrial private forestlands.
(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
Forest Resource Trust, to enter into contracts with eligible
landowners to carry out the provisions of the voluntary loan
program. The contracts may include, but are not limited to:
(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 Forest Resource Trust Fund.
(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 Forest
Resource Trust, may require landowners to execute security
agreements in favor of the trust to secure any repayment or other
obligations of the landowner. Any security interest required
shall have priority from the date of recording or filing.
(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 Forest Resource Trust under the contract shall become
covenants that run with the land and shall be binding upon
successors and assigns.
(c) The interest of the Forest Resource Trust created by
recording the contract constitutes a purchaser's interest in real
property for purposes of ORS 93.640.
(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 Forest Resource Trust
programs + }.
(2) Provide technical and other management assistance to
participating landowners.
(3) Monitor compliance with { - the stand establishment
program - } { + Forest Resource Trust programs + } by
participating landowners.
(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 Forest Resource Trust programs. + }
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 Forest Resource Trust program, as
described in rules adopted by the board. + }
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
Oregon.
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.
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