Public Policy

“Payment Coupling” Bill Passes Ag Committee

On September 23, the U.S. House of Representatives Agriculture Committee passed a bill sponsored by Rep. Nathan Deal (R-Georgia) and Rep. Allen Boyd (D-Florida) which would guarantee federal timber-dependent counties’ school and road funds a 25% share of federal timber revenues based on historical timber sale receipt levels from the early 1980s.  The bill also stipulates that such payments be drawn from the Forest Service’s own appropriated revenues.  Thus, total county payments would be $449 million annually (adjusted for inflation), and congress (and Forest Service managers) would have continuing incentives to minimize the agency deficit by maximizing timber sale revenues.  In this way, the proposal preserves the principle of “coupling” federal payments to counties to sustainable federal timber programs, without holding counties hostage to the government’s failure to sell enough timber.  The proposal has the endorsement of the National Education Association, although there is some question of how deep NEA’s support goes.  The Administration, furthermore, has already threatened a veto.

The Greens have named this bill “Clearcutting For Kids” and are pushing Rep. Peter DeFazio’s (D-Oregon) alternative, which would provide the same revenue but draw it from the general fund—“decoupling” it from the timber sale program.  Rep. DeFazio is expected to offer his proposal as an amendment to the Deal-Boyd bill when it comes to the floor.  Industry views the DeFazio bill as dangerous, not only to timber supply and sustainable management, but to the long-term political viability of payments to counties.

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