Green Scissors 2001
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The Great Timber Experiment

Stewardship Contracting for Forests

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"[F]ew [stewardship pilot programs] have actually operated long enough to produce an adequate or reliable basis for final assessment. Preliminary experience to date has already identified a number of substantial issues and obstacles in how the expanded [stewardship contracting] authorities are applied and/or implemented, suggesting the possible need for significant adjustments before they are made permanent."

FY2002 National Team Report,
USDA Stewardship Contracting Pilots,
Pinchot Institute, December, 2002, p. 3

Stewardship contracting is the first step toward placing the management of federal lands in the hands of private timber interests. This program allows the Department of Agriculture's U.S. Forest Service and the Department of the Interior's Bureau of Land Management (BLM) to use taxpayer-owned trees as payment for services such as road building, prescribed burning, watershed restoration, or any other regularly contracted activities. It also authorizes many other provisions that undermine the fiscal accountability of federal land management agencies.

Historically, stewardship projects were funded through general service contracts and revenue generated through timber sales. Due to continued reductions in timber sales and unreliable appropriations, the Forest Service introduced a five-year stewardship contracting demonstration program in 1999 to test alternative funding mechanisms and increase administrative efficiency of these projects. Unfortunately, many of the practices utilized in these pilot projects make it nearly impossible to track financial losses, undermining Congress' ability to monitor spending. As of 2002, there were 84 pilot programs underway. Most pilot projects are still in the early stages of implementation. To date, only five have reached completion reporting few if any accomplishments.

In 2003, Congress tacked a rider onto the fiscal year 2003 Omnibus Appropriations Act that drastically expanded the pilot program to a ten-year program applicable to more than 450 million acres of Forest Service and BLM land. Expansion of stewardship contracting sets a dangerous precedent by expanding untested authorities in the management of our public lands.

Green Scissors Proposal

Repeal the stewardship contracting program as passed by the 2003 Omnibus Appropriations Act and allow the current pilot demonstration program to run its full five-year course. No extension of the stewardship contract program should occur until evaluation of the 84 pilot programs is complete. Additionally, any provisions that permit removal of the largest, most fire-resistant trees for commercial profit or limit agency accountability for taxpayer dollars should be eliminated.

Current Status

The 2003 Omnibus Appropriations Act expanded stewardship contracting from a limited demonstration program on Forest Service land to a ten-year program of unlimited projects applicable to both Forest Service and BLM lands.

Program Hurts Taxpayers

Stewardship contracting is the first step towards privatizing the management of public lands, reduces congressional and public accountability and oversight of federal funds, and establishes another off-budget trust fund. With the Forest Service's history of money losing timber sales and poor fiscal accountability, expansion of the untested stewardship program as well as reductions of congressional oversight is likely to lead to additional taxpayer losses. Special interest provisions that have been added to the program through the 2003 Omnibus Appropriations Act will further encourage the extraction of under-valued taxpayer timber. One provision will allow timber companies to pick the trees they log rather than government officials, which could lead to bigger, more profitable trees being cut; another will allow logging companies to trade trees for services they provide to the federal government. These and similar provisions will make it nearly impossible to evaluate and monitor the financial costs of stewardship contracts and related timber extraction, setting the stage for massive increases in logging subsidies and undercutting the Forest Service's ability to account for the public resources with which it is entrusted.

Program Hurts the Environment

More than half of our national forests have been degraded through poor management, and an emphasis on timber sales instead of preservation. The stewardship program would make this problem worse by giving the timber industry even more control over national forest management. This program could dramatically increase the amount of logging in our national forests, resulting in increased water pollution, habitat destruction and reduced opportunities for recreation such as hiking, hunting and fishing.

Contacts

Mike Leahy, Defenders of Wildlife, (202) 682-9400
Sean Cosgrove, Sierra Club, (202) 675-2382
Tiernan Sittenfeld, U.S. Public Interest Research Group, (202) 546-9707
Amy Mall, Natural Resources Defense Council, (202) 289-2365
Shannon Collier, Taxpayers for Common Sense, (202) 546-8500 x 127
Cena Swisher, Taxpayers for Common Sense, (202) 546-8500 x108.

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