ASSEMBLY APPROPRIATIONS COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4358
with committee amendments
STATE OF NEW JERSEY
DATED: DECEMBER 8, 2011
The Assembly Appropriations Committee reports favorably Assembly Bill No. 4358, with committee amendments.
As amended, this bill directs the Department of Environmental Protection (DEP) to develop a forest harvest program to provide for the harvest of forest products on State-owned lands, excluding State-owned lands located in the Pinelands area, for which a forest stewardship plan has been developed. The program will allow forest management activities on State-owned lands identified by the department.
The program to be directed by the DEP will require the commissioner to select a project manager to implement and supervise the program after public advertisements for bids therefor. A contract will be awarded to the bidder whose bid is most advantageous to the State. The duration of a contract will be five years. The duties of the project manager will include: (1) adopting a management plan developed through a public process, consistent with the provisions of the forest stewardship plan for the State-owned lands identified by the commissioner; (2) providing for the cutting and sale of wood on that land; (3) obtaining the best price for the wood; (4) obtaining all permits and approvals necessary to engage in forestry activities; (5) assuring that activities concerning the implementation of the forest stewardship plans on State-owned lands are consistent with the rules and regulations adopted pursuant to P.L.2009, c.256 (C.13:1L-29 et seq.) (which establishes standards for forest stewardship plans); and (6) developing a strategy for the creation of a viable economic market for forest products, including, but not limited to, the processing of forest products into wood pellets or other forms useful in producing alternative energy. The bill will require the project manager annually to prepare a written report concerning the program, and submit it to the Governor, the Legislature and the Chairpersons of the Senate Environment and Energy Committee and the Assembly Environment and Solid Waste Committee.
The bill also will require that all revenues be deposited into a dedicated, nonlapsing special account within the DEP for use by the DEP to cover the reasonable costs of implementing the program. Any remaining revenues will be deposited into a dedicated nonlapsing special account in the New Jersey Natural Lands Trust and be used only for restoration projects to increase biodiversity, or to enhance habitat for rare, threatened or endangered flora or fauna, on lands held or managed by the New Jersey Natural Lands Trust, in State parks and forests, or in State wildlife management areas. To assure that the revenues are used for the purpose stated in the bill, the bill includes a “poison pill” provision.
FISCAL IMPACT:
The Office of Legislative Services (OLS) does not have sufficient information, data, or resources to fully determine the fiscal impact of this bill. However, according to informal information provided by the DEP, at the end of the five-year contract for the forest harvest program, a $2.7 million net operating deficit is projected. In addition to the selection of a project manager, the DEP estimates three positions will be needed to help develop and administer the program. The bill stipulates that all revenue from the program will be deposited into a dedicated, nonlapsing special account within the DEP for use by the DEP to cover the reasonable costs of implementing the program, and provide that any remaining revenues be deposited into a dedicated nonlapsing special account in the New Jersey Natural Lands Trust and be used only for restoration projects to increase biodiversity, or to enhance habitat for rare, threatened or endangered flora or fauna, on lands held or managed by the New Jersey Natural Lands Trust, in State parks and forests, or in State wildlife management areas.
The OLS notes that numerous factors, variables, and limitations unique to New Jersey forests, and the potential market for harvested forest products, will have to be studied and analyzed in order to make any accurate fiscal projections. In addition, it is unknown if a viable market and demand for harvested forest products currently exists. Therefore, the OLS cannot make a determination as to the estimated overall fiscal impact a forest harvest program will have on the State.
The bill includes a “poison pill” provision to assure that the revenues are used for the purpose stated in the bill.
COMMITTEE AMENDMENTS:
The amendments add provisions that direct the Department of Environmental Protection, in developing the forest harvest program pursuant to the bill, to:
1) require that forest harvesting activities in the preservation area of the Highlands Region comply with all provisions of the “Highlands Water Protection and Planning Act”;
2) require that any staging area for equipment, machinery, or removal of logs be located, to the maximum extent practicable, in existing clearings, fields, or areas close to existing paved roads; and
3) require that all forest harvesting activities be conducted in accordance with forestry best management practices and the New Jersey Forestry and Wetlands Best Management Practices Manual issued by the Department of Environmental Protection.
The committee amendments delete:
(1) a provision limiting forest harvesting activities to lands subject to a deer density reduction program or in areas surrounded by deer exclusion fencing, and
(2) a provision that will have required Highlands Water Protection and Planning Council Approval of harvesting activities in the preservation area of the Highland Region.
The committee amendments also provide that revenues from the forest harvest program will be deposited into a dedicated, nonlapsing special account within the DEP for use by the DEP to cover the reasonable costs of implementing the program, and provide that any remaining revenues be deposited into a dedicated nonlapsing special account in the New Jersey Natural Lands Trust for use as specified in the bill, rather than directing all revenue for that purpose.