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Betsy Bates

Washington Policy Makers Tackle Environmental Issues

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While environmental policies have not been at the top of the Washington, D.C., news cycle lately, there are a number of changes quietly moving forward in our nation’s capital that impact forest landowners and forestry, from endangered species to water regulation and from renewable biomass energy to landowner assistance.

The Trump Administration is proposing a major overhaul of the Endangered Species Act (ESA) to provide clarity and ease regulatory burdens on landowners.  At the same time, Congress is also considering significant legislative changes to the ESA, and the Supreme Court is poised to hear arguments concerning the designation of critical habitat under the ESA on a case involving Weyerhaeuser forestland in Louisiana.

The EPA is also moving forward with its proposal to address greenhouse gas emissions—known as the Affordable Clean Energy Rule (ACE), a federal court ruling has revived the controversial Obama-era Waters of the U.S. policy—better known as WOTUS, and Congress failed to meet a Sept. 30 deadline to pass a new Farm Bill, leaving funding for landowner assistance programs for forestry and conservation programs in limbo.

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Betsy Bates

EPA Officially Recognizes Forest Biomass As Carbon Neutral

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The Environmental Protection Agency (EPA) has issued a policy statement that formally recognizes forest biomass as carbon neutral, cementing a commitment made by former EPA Administrator Scott Pruitt earlier this year.

EPA said its actions are consistent with provisions included in Congress’ recently enacted omnibus spending bill, which directed the agency to work with the departments of Energy and Agriculture to establish policies that “reflect the carbon-neutrality of forest bioenergy and recognize biomass as a renewable energy source, provided the use of forest biomass for energy production does not cause conversion of forests to non-forest use.”

The new policy signals a definitive shift at the agency, which will now treat all burning of woody biomass as carbon neutral when used for energy production at stationary sources.  The new policy is effective immediately for all regulatory programs using biomass from managed forests.

The EPA announcement said that U.S. forests have consistently served as a net sink of carbon, reporting that in 2015, the forest sector offset approximately 11.2 percent of gross U.S. greenhouse gas emissions.

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Betsy Bates

Trump Sets Aggressive Agenda

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While it may be some time before there are any major changes in forest policy under President Trump, it is very clear that the new administration is taking a sharply different approach on issues than the previous one.

Already President Trump and his new EPA Administrator, Scott Pruitt, have begun the process of rolling back the Waters of the U.S. (WOTUS) rule and the Clean Power Plan (CPP) program, both major environmental policy initiatives of the Obama administration that have a huge impact on forestry.

Trump has also tapped former Georgia Gov. Sonny Perdue to lead the Department of Agriculture. Perdue, a successful agribusiness man, will have oversight of the vast government agency that sets policy on issues ranging from agriculture, forestry, and natural resources to nutrition and rural development. He will also serve as the key liaison for the White House on the reauthorization of the Farm Bill by Congress in 2018.

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Betsy Bates

Sweeping Changes In Washington Likely To Be Felt By Forest Industry

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While the November election answered one question—who will lead the U.S. for the next four years—it raised many more.  President-elect Trump and the Republican majority in Congress are now embarking on the complicated task of implementing new domestic and foreign policy agendas.  Many of the policy changes expected to be considered are likely to have a significant impact on forestry, particularly as it relates to taxes, the environment and trade.

A major overhaul of tax laws, which has long been a goal of Congressional Republicans, could result in the elimination of several tax provisions that are very favorable to forest landowners, including the treatment of most timber sales as capital gains and deductions related to operating and management costs. It could also result in the elimination of the estate tax, otherwise known as the “death tax,” which could benefit family forests.

Forestry is expected to fare well under Trump’s pick to lead the Environmental Protection Agency.  Scott Pruitt, the current Attorney General for Oklahoma, is expected to dismantle many of the onerous rules and regulations put in place during the Obama administration.  And the administration’s new foreign trade policies could have a mixed effect on U.S. wood markets.

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Betsy Bates

Supreme Court Stays CPP

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A surprise ruling by the U.S. Supreme Court has halted implementation of the Clean Power Plan (CPP), the Obama Administration’s policy to address climate change by promoting renewable energy and reducing U.S. dependence from fossil fuels, most notably coal.

Shortly after the Environmental Protection Agency began implementing CPP in 2015, opponents—primarily coal-using utilities and mining companies—filed suit in 26 states to reverse the rule.

The U.S. Court of Appeals of the District of Columbia will now consider the merits of the multiple challenges to CPP, with the stay remaining in place for the duration of the court’s proceedings and any subsequent action by the Supreme Court.

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