ESFPA E-News

DEC Announces Nearly $1 Million in First Round of Community Forest Conservation Grants

New York State Department of Environmental Conservation Commissioner Basil Seggos today announced more than $956,000 in awards to four towns in western and central New York and Long Island to establish community forests. Protecting forests from potential development and establishing new forested areas helps preserve biodiversity and safeguard the ecosystem benefits forests provide, such as storm water mitigation, temperature regulation, carbon sequestration, and climate resiliency. In addition, community forests bring community benefits by creating new opportunities for public access and recreation.

“New York State continues to bolster support for conserving and sustainably managing local forests, which will provide a wide range of ecosystem, community, and climate benefits,” said Commissioner Seggos. “Thanks to Governor Hochul and the State Legislature growing the Environmental Protection Funds and providing resources for this important initiative, DEC is supporting local efforts to acquire and establish community forests.”

The inaugural round of the Community Forest Conservation Program grants represents an important step forward in providing key resources for communities to protect forest resources of local importance. The Community Forest Conservation Grants, administered by the State Department of Environmental Conservation (DEC), support New York’s ongoing initiatives to meet its Climate Leadership and Community Protection Act goals by increasing the rate of forest protection to keep forests as forests and combat climate change as recommended in the Climate Action Council’s draft Scoping Plan.

Funded projects include:

• Town of Brookhaven, Suffolk County: $225,000 to acquire 11.3 acres
• Town of Lewiston, Niagara County: $300,000 to acquire 66.9 acres
• Town of Webster, Monroe County: $270,089 to acquire 28.7 acres
• Town of Whitestown, Oneida County: $161,100 to acquire 15.9 acres

Funding for this grant program was provided by the State’s Environmental Protection Fund (EPF), a critical resource for environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, recreation access, water quality improvement, and environmental justice projects. Among the many environmental victories in the 2022-23 State Budget, Governor Hochul succeeded in increasing the EPF from $300 to $400 million, the highest-ever level of funding in the program’s history. The EPF supports climate change mitigation and adaptation efforts, improves agricultural resources to promote sustainable agriculture, protects our water sources, advances conservation efforts, and provides recreational opportunities for New Yorkers.

A second round of Community Forest Conservation Grant funding is expected to be released in the second half of 2023 to continue to support local community forest land acquisition. For more information on this program, visit here.

“Inflation Reduction Act,” Some Pros, Cons, and Unknowns

While the House has been on recess this week, Democratic senators have been racing to pass the latest version of the “Build Back Better” agenda along party lines, this time in the form of $485 billion in new spending for climate, energy and health care programs now named the "Inflation Reduction Act" (IRA).  Using a parliamentary procedure known as “reconciliation” to bypass a GOP filibuster, Democrats must win support from all 50 members of their party, or the deal falls apart. 

Our national affiliates have been providing several summaries of the 725 pages of the legislation.  See the below highlights that we've gotten from The Hardwood Federation, American Forest & Paper Association (AF&PA) and the American Forest Foundation (AFF).  It remains It remains unclear if the Senate can get the bill approved as Senator Krysten Sinema (D – AZ) remains on the fence and the Senate needs 100% support to get the 50 votes necessary and the tie breaker from Vice-President Harris.

The Pros – Buried in the bill are some programs, as stand-alone measures, that could benefit the wood products industry: 

•    Use of Low Carbon Materials – Creates a fund to be used by the federal government’s General Services Administration to purchase low carbon construction materials for new and reconstructed federal buildings.

•    Low-Embodied Carbon Construction Materials – Creates EPA program to identify and label construction materials that have low-embodied carbon.

•    Wood Stove Tax Credit - $2,000 per unit tax credit for consumer purchases and installation of wood and pellet stoves, the latter of which operate on fuel derived from sawmill residuals. This credit is extended for 10 years. The Tax credit does not include the commercial credits that we have been working with the biomass affiliates on the BTU Act.

•    Wood Innovation Grants - $100 million to provide grants under the Wood Innovation Grant program for constructing new facilities that deploy mass timber and other innovative wood products. 

The Cons – As always, the law of unintended consequences creates uncertainty, especially in large legislation that moves too quickly to undergo a thorough vetting process.  Opinions about impact vary about the following: 

•    Corporate Taxes - The bill would impose a minimum corporate tax of 15% on large companies reporting income of $1 billion or more, according to Senate Democrats.  Unfortunately, the scope of the corporate minimum tax remains uncertain. It also puts business taxes, including the 2.8% surtax on small business income proposed in July, on the table for discussion. During a meeting, Sen. John Thune (R-SD) informed the Federation that Sen. Kyrsten Sinema (D-AZ), a crucial vote to pass the Democratic bill, is working to include “safeguards” for important business deductions.  

•    Inflation – Companies impacted by the 15% minimum tax may include industrial equipment makers and energy companies, who could pass their increased costs onto small business consumers.

•    IRS Enforcement - The IRS would receive a substantial raise, far outpacing inflation, to the tune of $80 billion.  The agency would devote the new resources to collecting more tax revenue through audits and other enforcement measures.

•    Massive Green Energy Spending - The bill allocates $385 billion for climate and energy programs.  This could have unforeseen impacts on markets for wood products and other manufactured goods, making cost and savings estimates difficult to predict at this time.

The Unknowns:  There are also programs that can go either way, depending on how federal policymakers write the rules to implement them:

•    Old Growth Forests – The bill allocates $50 million for the USFS to develop tactics to protect old-growth forests on National Forest System land and complete an inventory of the same within the NFS.

•    Decarbonization – The bill earmarks $5.8 billion for the decarbonization of several industries, including pulp and paper.

•    Environmental Product Declarations – EPA program to provide grants to industry for the development of environmental product declarations for construction materials. 

•    Grants for Forest Owners - $50 million for a competitive grant program for states to pay private landowners for implementing forestry practices on private forest land that provide measurable increases in carbon storage beyond customary practices on comparable land. 

ESFPA will continue to monitor this legislation and report on all the good and the bad as it unfolds.

NYSERDA Hydrogen Initiative

The New York Energy Research & Development Authority (NYSERDA) is looking to connect with manufacturers that consume large amounts of fossil fuels and biofuels in their manufacturing processes. Organizations that meet these requirements may be interested in supporting the state’s effort to seek funding (in conjunction with New Jersey, Massachusetts and Connecticut) to develop a regional hydrogen hub, with funding coming from the federal Infrastructure Law signed in November 2021.  Under this program, the US Department of Energy will be awarding up to $8 billion to support the development of regional hydrogen infrastructures. Even without this funding NYSERDA will pursue hydrogen as an alternative to help decarbonize the industrial sector.

As part of its application process, NYSERDA is looking to identify industrial companies that would either lend general support to the effort, or make commitments for formal program participation (including, initially, provision of fuel consumption data).  As shown in the attached, NYSERDA has nearly sixty business and academic partners on this effort, but few so far in the industrial sector, and they have approached The Business Council, ESFPA and other trade associations to help them do additional outreach.

We have scheduled an informational briefing by NYSERDA staff for Thursday, August 18, from 9:30 to11 a.m. (virtual), and welcome your participation (absolutely no commitment is expected or required at this time).  

If you our someone from your company is interested in participating and learning more about this opportunity, please RSVP to gabriella@esfpa.org and we will provide you with the login information.

Also, please feel free to contact us to discuss in advance.  Thanks.

Log-A-Load for Kids Fund Drive Begins at Boonville

For 25 years, New York State Log-A-Load for Kids has participated in a nationwide program to support Children’s Miracle Network Hospitals, and the NYS Committee (i.e. the Mowrey Family) is once again reaching out to the forestry community for support.   

One way to participate is at the 2022 NYS Woodsmen’s Field Days. There will be many events going on, including fund drives and raffles. The Committee is looking for donations of goods, services, or loads of firewood to be raffled off at the Woodsmen’s Field Days as well as time at any of the booths. 

Any and all items donated are greatly appreciated and help raise thousands of dollars for children in need. Promotional items with company logos are popular and make excellent game prizes. Monetary donations will be used either for the purchase of supplies or will go directly to your local CMN Hospital. 

In celebration of New York Log-A-Load for Kids’ 25th anniversary, we are also asking our donors to please consider an additional 25% contribution. We’d like to make this a big year! 

Every donation makes a difference. If you are interested in donating or volunteering, please contact Gabriella Ferrera at gabriella@esfpa.org or Eileen Mowrey at emowrey12@gmail.com .