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ASSOCIATION NEWS
FRA Report on Appropriations Omnibus and Tax Extenders
On December 9, Congress announced a deal to fund most of the government through September 2015. The Forest Resources Association (FRA) published a summary of the action within the Omnibus under key FRA priorities. Here are a few items that pertain to the Northwest:
Forest Inventory and Analysis Program
The bill funds the U.S. Forest Service’s Forest Inventory and Analysis (FIA) program—a high priority for the forest industry—at $70 million for the fiscal year, which is at the high end of expectations and an improvement over recent years’ funding. Improving the basis on which to understand forest inventory on all ownerships has received increased emphasis because of the need to validate the effects of carbon management programs on standing timber, as well as for the guidance it provides for sustainable wood sourcing and understanding regional wood markets.
Clean Water Act
The bill directs EPA to withdraw its controversial “interpretive rule” that was an attempt by the agency earlier this year to clarify which water bodies are covered by its new “Waters of the United States” rule.
The bill also reiterates existing law, that neither the Corps of Engineers nor EPA may require wetland permits for the activities listed in section 404(f)(1)(A) and (C) of the Clean Water Act. This prohibition includes normal silviculture and forest roads in wetlands.
Market Promotion
The legislation directs the Forest Service to improve management of “stressors” impacting forests, development of markets to offset the cost of forest management, and to promote markets for high-volume, low-value wood, stipulating “nanotechnology,” energy, and green building, including advancing the use of wood in high-rise construction.
Hazardous Fuels Management
The bill increases the Forest Service’s budget for hazardous fuels management on federal lands by more than $55 million over 2014 levels, to $361,749,000. A portion ($15 million) will be dedicated to biomass utilization grants to expand commercial markets for harvested biomass to facilitate increased removals in designated regions.
Tax Extenders
We are now awaiting Senate action on the House-passed Tax Increase Prevention Act of 2014 (HR 5771), which reauthorizes (among other credits) the Section 179 business expensing credit. This feature of the IRS Code allows businesses to deduct the full purchase price of qualifying equipment and/or software bought or financed during the tax year. The list of qualifying equipment is broad, covering vehicles, manufacturing machinery, software, computers, furniture, and tangible personal property used in business. The 2014 deduction limit is $25,000.
HR 5771 also revives the bonus depreciation tax deduction, enabling businesses to claim an additional first-year depreciation tax deduction equal to 50 percent of the value of qualified property investments, such as machinery and equipment.
To read more of the report, go to: http://www.forestresources.org/fra/IssueUpdateDec112014.pdf
AFF Announces Improved Tree Farm Certification Standards
The American Forest Foundation (AFF) announced the release of its updated Standards of Sustainability for Forest Certification under the American Tree Farm System (ATFS). The Standards, which are revised every five years, are the result of a rigorous, multi-stakeholder process and based on international guidelines for sustainable forest management and conservation.
ATFS works to sustain America’s family-owned forests and the clean water and air, wildlife, wood products, and recreational opportunities these forests provide. ATFS does this by empowering woodland owners to be effective stewards of the land and by setting sustainable forest management standards that are used by thousands of family-owned forests certified by ATFS.
“As stewards of millions of acres of forests, small woodland owners have a credible and independently audited conservation tool in these updated standards,” said Sarah Crow, senior director of certification at AFF. “This is a comprehensive, internationally recognized approach that puts family forest owners on the leading edge of conservation principles.”