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From the Executive Director: The November elections are roughly 4 months away, summer has arrived in D.C. and the political pundits are busy analyzing what can get done in the few legislative days left on the calendar before the people head to the voting booth.
In the 20 or so weeks between now and the election, one or both Houses of Congress will be in session for only about half of them. Both Chambers are scheduled to be in recess for the month of August as is tradition. Less traditional and more political are plans to also be on recess for the month of October, the run up to the November election. The first two weeks of July are also scheduled for non-D.C. activities, including the Republican National Convention and the July 4th holiday. Members of Congress will be out and about in their home states a lot in coming months…this is an excellent opportunity to let them know what you think…about hardwood policy issues!
As Congress returns to the states for the Fourth of July recess, be on the lookout for your federal lawmakers as they make the rounds in your community. They will be everywhere…community celebrations, parades, professional and recreational club events. When you see your elected officials, it is an opportunity to echo the Federation’s key policy positions and underscore messages delivered during the Fly-In in May. Below are a few talking points to get you started:
Congress Must Pass the Farm Bill! As lawmakers debate competing priorities for the farm bill, tell your federal elected officials that the final package must include:
- Hardwood Exports - Double funding for USDA export promotion. Fortunately for industry, the House version of the bill and the Senate framework include this key provision, which lawmakers must push across the finish line!
- Biomass - Legally binding biomass carbon neutrality language as part of the Farm Bill reauthorization effort.
- Workforce – The “Jobs in the Woods Act,” sponsored by Reps. Chavez-Deremer (R-OR) and Gluesenkamp-Perez (D-WA) on the House side and Sens. King (I-ME) and Risch (R-ID) in the Senate. This bipartisan bill (H.R. 5344, S. 3063) provides education grants ranging in size from $500,000 to $2 million to promote jobs in the understaffed timber industry and U.S. Forest Service.
For details, please click here.
Support the Hardwood Access and Development Program Act - Tell your House lawmakers to cosponsor the bipartisan H.R. 6880, the “Hardwood Access and Development Program Act.” Sponsored by Reps. Tom Tiffany (R-WI-07) and Ann Kuster (D-NH-02), this bill creates a competitive grant program to support consumer education about the sustainability, low carbon footprint, domestic production and rural economic impacts of U.S. made hardwood products. For details, please click here.
Taxes – The Senate must pass the House tax package, the “Tax Relief for American Families and Workers Act” (H.R. 7024), which restores 100% bonus depreciation of equipment, the depreciation and amortization (EBITDA) business interest deduction and an R&D tax credit. It also increases the limits on expensing depreciable business assets under Sec. 179 to $1.29 million.
Two additional provisions must be added to provide much needed relief to our small and medium companies:
- · Making permanent the 20% small business deduction for QBI earned by a pass-through entity.
- · Preserving estate tax exemptions included in the 2017 tax reform law.
For details, please click here.
Remember to always share information about your business, your employees and your contributions to your community. By making it personal, you will make it harder for them to forget you…and your concerns.
Issues:
Administration Officials Urge EU to Delay Deforestation Regulations
On May 30, USDA Secretary Tom Vilsack, Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai sent a letter to the E.U. Commission requesting that they delay the now final deforestation rules specifically citing timber in their communication. This action is the culmination of several months of outreach from industry, urging the Administration to weigh in with the EU to push back on the rules. The new regulations, if imposed as currently planned, will, among other things, require geo-location of fiber included in the manufacture of wood products, imposing trade restrictions on exports of hardwoods. The Administration’s action echoes messages conveyed by the hardwood industry to the USTR in a meeting in late November. The Federation will keep you posted on developments related to the Administration’s action.
House Lawmakers Unveil Bipartisan “Fix Our Forests Act”
On June 18, Rep. Bruce Westerman (R-AR), Chairman of the House Natural Resources Committee teamed up with Rep. Scott Peters (D-CA) to introduce the “Fix Our Forests Act,” (H.R. 8790), a bipartisan bill intended to reduce the amount of time it takes to process a National Environmental Policy Act (NEPA) permit for forest management projects. So far, the bill has 11 Republican and five Democratic cosponsors. The lawmakers cite the growing threat of wildfires, which Rep. Peters points out as the largest source of air pollution in his home state of California, as a key motivator for pushing the legislation. Committee staff briefed the Hardwood Federation team prior to dropping the bill to answer questions and concerns. The bill is in line with Hardwood Federation policy positions. Chairman Westerman stated that he will plan a mark-up of the legislation in the Natural Resources Committee in the near future to move the bill forward.
Sen. Shaheen Spearheads Red Oak Truck Bed Initiative for U.S. Military
At the request of the Hardwood Federation, Sen. Jeanne Shaheen (D-NH) has begun circulating a letter to be sent to the U.S. Department of Defense and U.S. General Services Administration (GSA) among her Senate colleagues to encourage the rapid adaption of domestic red oak for use in U.S. military truck beds. GSA recently approved use of red oak for these applications. Currently, critically endangered Apitong hardwood from tropical rainforests is used for these purposes. The Hardwood Federation is working with the Shaheen team to reach out to a bipartisan group of Senators to sign on to the letter to build momentum for rapid use of domestic red oak.
Senate Republicans Offer Farm Bill Framework
On June 10, Senate Agriculture Committee minority staff reached out to the Hardwood Federation to brief them on a farm bill framework which was released the following day by Agriculture Committee Ranking Member John Boozman (R-AR). In the Senate, this is the most important step forward on the farm bill front since Agriculture Committee Chair Debbie Stabenow (D-MI) unveiled the Democrat framework on May 1. You will recall that on the House side, Agriculture Committee Chairman GT Thompson (R-PA) released the House version of the bill on May 17.
While the legislative frameworks in the Senate don't include specific text, the GOP version lays out some key priorities for the hardwood industry, which were discussed during the meeting with Agriculture Committee staff:
- Doubling funding for USDA’s trade promotion programs, the Market Access Program and the Foreign Market Development Program. These vital programs support the American Hardwood Export Council’s work around the world and have not been increased since 2002. The House passed version of the Farm Bill also includes this increase.
- The framework modernizes the Forest Inventory and Analysis program which collects, processes, analyzes, and reports on data necessary for assessing the extent and condition of forest resources in the United States. While not explicitly noted in the framework, staff assures us that considering the carbon storage value of wood products is also a high priority for the Ranking Member and will most likely be made clear in future language.
- Increases funding for the Community Wood Facilities Program and Wood Innovation Program, both of which have funded hardwood projects. Accelerating adoption of wood in the built environment and identifying ways the federal government can utilize wood projects in their facilities are also priorities for Mr. Boozman.
According to GOP staff, Sen. Boozman's framework includes input from a broad base of stakeholders and is intended to jump start the legislative process, which has stalled this spring over funding issues. We will continue to review proposals and language as they emerge from both Senate Democrats and Republicans…and we look forward to a bipartisan Senate bill emerging at some point in the next several months. The Federation will keep you posted on next steps.
USFS Proposes “Old Growth” Plan Amendment
On June 20, the U.S. Forest Service (USFS) released a draft guidance document that would open existing forest plans to amendment, creating opportunities to remove more acreage from timber harvest. The latest agency action ignores industry comments submitted in 2023, urging federal regulators to avoid treatment of old growth and mature forests in a manner that undermines forest management. According to the USFS, the proposal seeks to provide consistency with respect to the “stewardship, conservation, and recruitment of old growth across national forests.” The USFS further states that “the proposed amendment highlights the importance of proactive stewardship actions in managing threats to old growth forests, and to reduce wildfire risk.” The agency’s initiative constitutes the most recent step to implement the Biden Administration’s Executive Order on mature and old growth forests issued in April 2022. The Federation is reviewing the proposal and will submit comments during the 90-day comment period.
Senators Criticize USFS for Reducing Timber Harvest in Black Hills
On May 28, Sens. Cynthia Lummis (R-WY), John Barrasso (R-WY), John Thune (R-SD) and Mike Rounds (R-SD) submitted a letter to USFS Chief Randy Moore criticizing the agency for removing timber from harvest, actions resulting in sawmill closures in the Black Hills region of Wyoming and South Dakota. The senators go on to point out that the Administration’s efforts to “lock up public lands and restrict multiple use mandates” are resulting in the sawmill closures and harming local economies. The letter also points out that the problem is nationwide, exceeding the Black Hills National Forest. “Since 2020, more than 20 mills near national forests have been forced to curtail production.”
SEC Climate Disclosure Rule Faces Legal Challenges
In March, the SEC finalized a rule that requires publicly traded companies to disclose their greenhouse gas (GHG) emissions, marking the first time the SEC has issued a rule requiring companies to submit climate-related information. The U.S. Chamber of Commerce and other business groups have filed lawsuits challenging the new rule, claiming that the SEC bypassed Congress through an unlawful regulatory action. The Federation will keep you posted on developments as they unfold.
OSHA Prepares to Propose Workplace Heat Standards
The Occupational Safety and Health Administration (OSHA) has sent a draft, proposed rule on workplace heat standards to the White House for review in its final steps toward drafting a formal notice on which industry may submit comments. The agency cites record-breaking temperatures, especially during the summer months, as a rationale for moving forward with new heat regulations. Although specifics related to the proposal are not yet known, an OSHA spokesperson has described a standard of care to require “adequate cool water, rest breaks and shade or a cool rest area.” The Federation will keep you posted on details as the process moves forward.
Senators Conduct Hearing on Workforce Issues
On June 12, the Senate Health, Education, Labor and Pensions Committee conducted a hearing to receive public input on the “Workforce Innovation and Opportunity Act” (WIOA), our nation’s bedrock statute that authorizes and funds workforce development and apprenticeship programs, including those for the forest industry. The House passed its version, “A Stronger Workforce for America Act” this spring by an overwhelming margin with broad bipartisan support. While a comprehensive Senate companion has not been unveiled, the hearing is a step in the right direction. We are close to the process and will update you on this effort as soon as we know more.
Rep. Wenstrup Introduces Small Business Tax Relief Measure
On June 4, Rep. Brad Wenstrup (R-OH), a member of the House tax-writing panel, introduced the S Corporation Modernization Act of 2024 (H.R. 8614), a bill that would simplify tax rules for small businesses and help them remain in the family. The bill seeks to help small businesses by increasing their access to capital and growing the list of eligible shareholders to include more employees, non-resident aliens and retirement accounts. While a path forward for the bill is uncertain, the pro-business measure could be attached to a broader end-of-year tax package following the November election.
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