ESFPA E-News

Finally, A Budget Emerges!

Just in time for the holiday weekend, the SFY 2026 State Budget finally emerged from the Leadership of the Governor and State Legislature. Starting with the Article VII legislative Bills, Last Thursday came the Public Protection & General Government (PPG) legislation followed by the Education, Labor & Family Assistance (ELFA), and this morning Transportation, Economic Development & Environmental Conservation (TED). We will continue to break down these bills and eventually others, as well as provide more details on the Appropriation Bills. In the meantime, here is a quick summary:

Public Protection & General Government (PPG) - Included a lighter version of Governor Hochul's auto insurance reform proposals. Lawmakers approved some of the less thorny aspects of the broader changes on Thursday, including a provision to prevent insurance “red lining” that Hochul had not originally included. The budget will prohibit insurers from using consumer data like zip code, education level, and homeownership to set individual premiums. The approved bill also will end a provision that has allowed insurers to unilaterally raise rates by up to 5%, another measure added by legislators. 

The final budget included the assessment fee for covering the cost of County expenses related to investigating workers compensation claims.

The adopted budget also included the Governor's proposal to increase government procurement amounts by which agencies may conduct discretionary purchases or to purchase from pre-approved contracts from $85,000 to $150,000, thus avoiding delays in purchases.

Education, Labor & Family Assistance (ELFA) - The state mandate for schools to only buy or lease electric school buses was pushed back five years to 2032. The deadline for districts to solely operate and maintain zero-emissions buses and vehicles was extended to 2040. The change was opposed by environmental advocates.

Total school aid will again hit all-time highs, with the final budget including about $39 billion in education funding. That includes a guaranteed 2% increase to Foundation Aid in every school across the state for a total of over $27 billion. That amounts to a $200 million increase compared to last year’s budget, with $143 million of that increase going to New York City.

The budget also has an updated funding formula for statewide universal pre-K based on enrollment, full-day or half-day programs and other factors. All districts must provide full-day pre-K access to eligible 4-year-olds by the 2028–29 school year.

Transportation, Economic Development & Environmental Conservation (TED) - Perhaps the most positive item in this year's budget are the amendments to the Climate Leadership & Community Protection Act (CLCPA). As we have communicated over the past few months, Governor Hochul has committed to amending the CLCPA to better align emissions accounting and reporting with other states and countries, correct accounting with respect to biogenic sources (including wood) and to reduce the risk of double counting emissions from out of state reporting required under New York's Act. This was attempted three years ago and met with strong pushback, but with more experience and new economic and practical data the Governor has remained committed to "righting the ship" on the CLCPA. Here is what the final budget amendments to the CLCPA include:

• Changes GHG accounting from 20GWP to 100GWP, making us comparable to the UN, USEPA and other states.

• Excludes biogenic (e.g., organic matter like wood, although they don’t add a definition, nor can I find one in statute or regulation) emissions from our GHG limit (again matching other jurisdictions).

• Requires separate reporting for biogenic emissions “consistent with” treatment by the IPCC.

• Eliminates from our state GHG limit emissions from the out of state extraction and transportation of fossil fuels, while keeping out of state emissions from generation of electric power imported to NYS.

• Modifies the charge to the Climate Action Council to developing a plan “toward” rather than “for” achieving the state’s GHG limits, requires an undated Climate Action Plan in 2028, then updates every six years, rather than an update every five years (under current law, the Plan would have been updated in 2026).

• Requires DEC, by 12/31/28 to adopt regulations that “to the maximum extent feasible and cost effective” to achieve a 60% reduction in GHG by 2040, from a 1990 baseline. DEC is required to consider the feasibility of a cap and invest program that could be linked to other jurisdictions, including its affordability for residents, business and other entities, its impact on economic development and energy costs, and other factors. DEC is required to issue a report on recommended GHG reduction measures four years after the adoption of these regulations.

• Requires that climate-related state funds be spent with a goal of 40% in or for the benefit of disadvantaged communities, with a goal of 45% (up from 30% and 35%, respectively).

These amendments to the CLCPA are very good for our sector and should result in a much more favorable regulatory environment relative to climate policy. They do not, however, address biomass as a "renewable energy system" in the electric power generation system in support of the grid. They also do not address the use of biofuels fuels use in an alternative compliance mechanism. Either way, these are good amendments for our sector.

The TED bill also includes amendments to the State Environmental Quality Review Act. While there are some timeline amendments that may have some benefit to our sector, these changes largely relate to housing considerations the Governor wanted. While some changes she was asking for relating to certain undeveloped lands (e.g. fallow agricultural lands) were not included, her proposals were largely included.

We have not seen other Article VII bills or Appropriation Bills yet, but we will over the remainder of this week. Hopefully we will have a final Budget report to you by next Monday. The Legislative Leaders remain committed to wrapping up the Legislative Session on June 4^th so while they will pass Budget Bills this week, they will also be working on other legislation and will have a flurry of bills to get through next week if they intend to end a week from Thursday. 

Federal Bill Introduced to Aid Private Forest Landowners

In late April, a bipartisan, bicameral group of lawmakers introduced the Save America’s Family Forests Act (SAFFA) (H.R. 8538 / S. 4442) to help private forest landowners recover after hurricanes, wildfires, tornadoes, and other federally declared natural disasters. The bill updates federal tax law so landowners can finally deduct the value of destroyed timber—bringing parity with other agricultural producers.

Under current law, forest landowners can only deduct up to $10,000 in reforestation costs in the year they are spent. Any remaining costs must be spread out over the next seven years. Supporters of the bill say this structure makes it harder for landowners to replant quickly after disasters. The legislation would triple the immediate deduction from $10,000 to $30,000 for all landowners. It would also allow those affected by federally declared disasters to deduct up to $500,000 in reforestation costs immediately.

The Forest Landowners Association is circulating a sign-on letter for state associations to sign on in support of this legislation, and ESFPA is asking if we should be supporting this.  

NYS Log-A-Load for Kids

From Trevor Keough, Chairman of NYS Log-A-Load for Kids

As many of you know, Mark Mowrey has officially handed over the reins of Log-A-Load for Kids to me. It is a great honor, and I want to sincerely thank Mark for his years of dedicated service to such a meaningful cause.

As we look ahead, this is our opportunity as an industry to give back, make an impact, and truly change lives. I have always understood the importance of this cause, but as a new father, it has taken on an even deeper meaning. It brings greater passion, purpose, and energy.

Log-A-Load for Kids is more than an opportunity for our industry to come together. It is a chance to make a real difference in the lives of children and families facing unimaginable challenges. As foresters, loggers, landowners, and industry professionals, we are always thinking about the next generation of forests we are managing. In the same way, this cause calls on us to support the next generation of people.

Our forests face constant pressure from pests, invasive species, deer browse, and more. The children we support through Log-A-Load face pressures far more serious. They are dealing with life-changing challenges that no child or family should face alone. This is where we step in.

While I am reaching out to each of you individually, I am also calling on our industry as a whole. Individually, we make an impact, but together, we become a movement. A movement that changes lives, strengthens our communities, and brings hope to those who need it most.

There is no denying that this has been a challenging year. Rising fuel costs, tighter markets, and ongoing uncertainty surrounding tariffs on forest products have impacted us all. Yet, in times like these, it is more important than ever that we come together. The challenges we face are real, but so are the needs of the families we are working to support.

A key purpose of this letter is to ask for your support, both through donations and through your engagement. I invite each of you to join this movement, to get involved, and to give back in whatever way you can.

As we approach Woodsmen’s Field Days, our largest fundraising event, we need your help. We are looking for volunteers to support the booth, donations for raffle items, and financial contributions to benefit the charity and the community. My personal goal this year is to raise $35,000 to donate directly to Log-A-Load for Kids.

Please feel free to reach out to me if you have any questions or would like to get involved. Your support, whether through time, resources, or leadership, will make a meaningful difference.

Thank you for your continued commitment to this important cause.