Forestry Budget Bills Advance
Compared to the previous month, last week was relatively benign for the Oregon Department of Forestry's two budget bills, SB 5522 and HB 2214. 

 

The ODF budget after being adopted by the Ways & Means Natural Resources Subcommittee on June 19, passed the Senate last week, carried by subcommittee Co-Chair Sen. Vicki Walker, D-Eugene.  It is now waiting for approval in the House.  HB 2214, the Forest Products Harvest Tax, FPHT, carried by subcommittee Co-Chair Rep. Bob Jenson, R-Pendleton, passed the House and now awaits Senate approval. 
 
The Fire Protection budget was changed to maintain the 50-50% split of emergency fire costs between the General Fund and forest landowners, remove Administrative costs from forest landowners' share and reduce landowners' maximum emergency fire costs back to $10 million.  The General Fund will pay the remaining $15 million of the state's fire insurance deductible.  The 2009 fire season severity will determine if the $25 million deductible is met and the share forest landowners will pay, up to $10 million.
 
Forest landowners agreed to maintain their current Forest Practice Act share of the FPHT for 2010 and 2011 as long as the extra funds supported field administration of the FPA and didn't change the historical 60-40% split between the General Fund and timber harvesters.
 
HB 2214, being a revenue generating bill, requires a super majority, 36 in the House and 18 in the Senate, to be approved.  The FPHT passed unanimously in the House after legislators double checked with forest landowners to insure that they supported the tax.
 
One beneficiary of the end of session trading was the adoption of HB 2940, a bill that passed the House 59-0 last month before environmentalists became hysterical over it.  The bill requested by the Oregon Forest Industries Council, would allow biomass cogen plants built before 1995 to qualify as renewable under the Renewable Portfolio Standard the legislature adopted in 2007.  After House passage, environmental and wind energy advocates ranted that the change would undermine Oregon's RPS goals.
 
The biomass renewable energy plants constructed prior to 1995 would add only 7% renewable electricity towards meeting the 25% renewable goal by 2025.  Failing to stop the legislature from penalizing biomass early adopters, the opponents will now turn to Governor Kulongoski and ask for a veto of HB 2940.
 
No Means No!
A major eruption occurred in the halls of the Capitol last week when Democratic legislative leaders adopted amendments to an election bill that would have changed the meaning of Yes and No for a ballot measure if the tax hikes are referred to voters. After a rash of critical newspaper editorials, telephone calls and emails overloaded Capitol phones and computers, legislators tabled their proposed changes.  The yes/no switch back to common definition will reportedly be made before the legislature adjourns.
 
Summoning the fog - OregonLive.com
 
Business Plans for Tax Referral
Oregon businesses have begun planning to overturn the legislature's Corporate and Personal Income tax increases.  The action was sparked by frustration over the legislators' refusal to accept tax increase proposals supported by business and most importantly, upset that the corporate and personal tax increases are permanent rather than a temporary response to the recession.  Included in the tax increase legislation is replacement of the 1930's era $10 Corporate Minimum Tax with a gross receipts tax on Oregon sales, regardless of the company's income.
 
Before adjournment, the legislature is planning to pass a bill setting a special election date in January 2010 for a possible tax increase referral.
 
Business coalition to fight Oregon tax increases - Oregon, Northwest and National Politics & Elections News - Oregonlive.com

Climate Change Bill Enacted
HB 2186, which passed the House the last month, squeaked by the Senate 16-14, with Senators Joanne Verger, D-Coos Bay, and Martha Schrader, D-Canby, joining all Republicans  in opposing the bill.  HB 2186 is a greenhouse gas complimentary measures bill that gives DEQ authority to study regulations affecting transportation including tires, aerodynamic modifications and fuels.  Log trucks and some farm vehicles are exempt from the Low Carbon Fuel Standards that HB 2186 requires.
 
HB 2186 supporters put on the record that the Low Carbon Fuel Standard, as yet undefined, would not be implemented in Oregon until July 2011, following legislative sessions in 2010 and 2011.  Bill proponents also pointed to the off ramps in HB 2186 if LCFS fuel prices became prohibitive.
 
Low-carbon fuel bill wins Ore. Senate's OK - NewsFlash - OregonLive.com