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Transforming Forest Health in &

Tom Schultz, VP Government Affairs Our Mission

“To enhance the lives and livelihoods of our employees, customers, partners and the communities in which we operate by providing the earth’s best renewable building products.”

2 A Glimpse at IFG’s Impact in 2018

• 1050 team members with an additional 2,000+ contractors assisting business. • Wages across the company were $70 million • Over $2 million paid in taxes within Idaho, Montana, and states • 143,553 truck loads delivered to IFG facilities. That equates to trucks lined up end to end from Coeur d’Alene to Pittsburgh, PA! • IFG supports charitable organizations that provide educational and arts and cultural opportunities and youth activities in Idaho and Montana, enhancing the communities where our employees live and raise families.

3 Overview Overview

We’re going to discuss:

• Health and mortality in Idaho and Montana’s forests

• Why forest health matters

• How we can restore our forests and how long it will take to make an impact

5 Overview

Today’s forests are not the same forests that existed before European settlement.

Their ecology has been altered by: • Fire suppression • Historically unsustainable harvest methods, without replanting • Introduction of White Pine Blister Rust and other invasive species • Climate change and drought • These impacts have created more densely populated forests with dominant tree species that are less tolerant of fire and disease and are competing for limited resources. • This has set the stage for an abundance of weak, malnourished trees that are susceptible to insect, disease, and catastrophic wildfire.

6 Overview

U.S. Volume Harvested vs. U.S. Acres Burned in Wildfires 1980-2017 14,000,000

12,000,000

10,000,000

8,000,000 Volume of Timber Harvested (MBF) 6,000,000

Acres burned 4,000,000

2,000,000

- 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

7 Fire

1910 Fire: • 3 million acres burned in Idaho & Montana • 85 people died • Current stand conditions are now similar to the conditions prior to 1910

8 Overview

Overstocked/Weakened Stands Fire Mortality

9 Insects and Disease Insects & Disease

NIDRM

• 28% of Idaho’s treed acres are at risk – ranked 1st nationally for percentage of acres at risk. • 21% of Montana’s treed acres are at risk – ranked 3rd nationally for its percentage of acres at risk. Beaverhead-Deerlodge Forest

11 Treed Acres at Risk of >25% Basal Area Loss 2013-2027

Idaho Montana Total: 7,862,018 Total: 7,655,558

223,811 493,809 409,578 258,191 1,081,556 877,950

206,624 180,406

998,833 974,152

4,955,281 4,857,385

State Lands USFS-Non Wilderness Wilderness Areas BLM Private Other Ownerships 12 Insects & Disease

Beetle Gallery Root Rot “The warming climate has allowed beetles to hang on, reproduce faster—multiple broods in a year—and access trees at higher elevations that used to be resistant because of the cold,’ says Carl Seielstad, a fire expert at the University of Montana in Missoula.”

Washington Post, January 29, 2019

Source: https://www.washingtonpost.com/graphics/2019/national/gone-in-a-generation/ forest-climate-change.html?utm_term=.3f4e862dafc6#forest. Published January 29, 2019. 13 Fire Fire

According to the US Forest Service, almost 70% of federal forests need some sort of fuels restoration treatment, which may include:

• Harvest

• Thinning

• Prescribed fire Clearwater Complex, near Kamiah, 2015 • Replanting

15 Fire

Burned Acres on National Forests 1980-2018

Beaverhead-Deerlodge

Bitterroot

Kootenai

MONTANA Lolo

Flathead

Idaho Panhandle

Boise

Nez Perce-Clearwater IDAHO Payette

0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 2000000

Total Non-Wilderness, Non-Roadless Acres Total Burned Non-Wilderness, Non-Roadless Acres 1980-2018

16 Forest Health Forest Health

One decade ago, mortality in the Intermountain Forest started to exceed growth. What defines mortality? Trees that DIED from natural causes: • Fire • Drought • Insects and Disease • Age Tree mortality is measured as trees that died from natural causes within 5 years of the measurement date. 18 Forest Health

Intermountain Region All Ownerships Softwoods, Growth, Removal, and Mortality (MCuFt) 2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1991

2011

1976

1952

1962

1996

1986

2016 2006 Net Growth Removal Mortality

Created from FIA data Intermountain Region refers to Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming. 19 Forest Health

Intermountain Region National Forests Softwoods, Growth, Removal and Mortality (Mcuft) 2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1991

2011

1976

1952

1962

1996

1986 2016 -500,000 2006 Net Growth Removal Mortality

Intermountain Region refers to Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming. 20 Forest Health: Federal Forests

Over the next 15 years, National Forests are at greatest risk of loss: 50% of treed acres are at risk and growth rates are declining.

Some forests are in critical situations: • The Beaverhead-Deerlodge is set up for a catastrophic wildfire: • Mortality is far exceeding growth • Fires have only touched 3.6% of the non-wilderness, non roadless acres • Harvest has been around 26 MMBF

• The Payette keeps burning: • Only about 13% of the forest is non-wilderness, non-roadless acres • About an eighth of the acres have already burned • Mortality has surpassed growth

• The Panhandle is succumbing to disease: • There is a 50% risk of 25% basal area loss from insect and disease • Only 2.3% of the non-wilderness, non-roadless base has burned since 1980

21 Percent Change in Forest Growth, Removal, and Mortality 1991-2016

Idaho Montana

Year Net growth Removals Mortality Year Net growth Removals Mortality

1991 607,168 258,529 182,289 1991 728,705 333,015 189,614

1996 793,597 247,041 274,016 1996 560,727 170,735 272,818

2006 597,709 245,735 374,967 2006 469,731 197,889 386,900

2011 417,388 257,803 612,835 2011 254,712 90,411 558,466

2016 441,238 230,262 616,491 2016 54,778 102,171 662,369

Percent Percent -39% -31% 225% -91% -60% 263% Change Change

22 Forest Health

Mortality is reducing the growth of the existing timber resource in Idaho and Montana over the last ten years.

Idaho Montana

23 “Montana is one of six states in the West where trees have been emitting carbon in the past decade or so, according to an analysis by David Cleaves, former climate change adviser to the chief of the U.S. Forest Service.”

“The other states are Arizona, Colorado, Nevada, Utah and Wyoming. Four of these states’ forests have flipped in recent years to become carbon emitters— with Montana showing the biggest changes of all.”

“Between 2000 and 2015, 14 million acres were damaged by beetles and other pests or diseases, more than half of the state’s total forested area.”

Source: https://www.washingtonpost.com/graphics/2019/national/gone-in-a-generation/ forest-climate-change.html?utm_term=.3f4e862dafc6#forest. Published January 29, 2019. 24 Forest Health

Idaho, Net Growth as % of BF Volume Montana Net Growth as % of BF Volume by Ownership by Ownership 5.00% 3.50% 4.50% 3.00% 4.00% 2.50% 3.50% 3.00% 2.00% 2.50% 1.50% 2.00% 1.00% 1.50% 1.00% 0.50% 0.50% 0.00% 0.00%

-0.50%

2011

2017

2015

2013

2012

2014

2016

2010

2009

2008

2011

2017

2015

2013

2012

2014

2016

2010 2009 2008 -1.00% USFS BLM State Private USFS BLM State Private

Created from FIA data

The negative percentages mean that mortality is exceeding growth. 25 Forest Health

Idaho, Net Growth as % of BF Volume Montana, Net Growth as % of BF Volume by National Forest by National Forest 5% 5%

4% 4% Private Lands Private Lands 3% 3% Panhandle Beaverhead

2% Clearwater 2% Bitterroot

1% 1% Flathead Kootenai 0% Boise 0% Payette Lolo -1% -1%

-2% -2%

-3% -3%

26 Forest Health

27 Forest Health Summary

Why do we care about Mortality? • Reduced timber supply • Depleted carbon sequestration capacity • Increased risk of catastrophic fire, smoke, and carbon emissions • Degraded water quality, reduced water supply, and increased erosion

28 Transformation Collaboration

Diverse stakeholder groups (tribes, industry, conservation, recreation, local government) using science to build consensus and take on forest projects that support economic, restoration, and conservation goals on Montana has 14 forest collaboratives, that participate in priority landscapes. the Montana Forest Collaboration Network.

Idaho has 10 forest collaboratives that participate in the Idaho Forest Restoration Partnership 30 Collaboration: Case Study

Clearwater Basin Collaborative

• Supported the development of science to guide forest restoration that recognizes current forest conditions are significantly departed from natural ranges of variation. The science enabled consensus amongst the CBC.

• With the support of the CBC, the forest has more than tripled it’s annual timber sold volume since 2008, from about 35 MMBF to 120 MMBF a year.

• The CBC was awarded the USDA’s “Abraham Lincoln” award in 2015 for “thoughtful and deliberative problem solving that resulted in accelerated restoration and ecological, social and economic benefits for the citizens of north-”.

31 Collaboration: Case Study

Since the formation of the CBC, growth rates on the Clearwater National Forest have increased the most of any forest studied (+.77%) and mortality on the Nez Perce has slowed.

Net Growth as % of BF Volume on Timberland, by National Forest (Idaho) 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Clearwater Idaho Panhandle Nez Perce Boise Payette

32 Good Neighbor Authority

• GNA enables the Forest Service to partner GNA Snapshot with the states to increase the pace and Idaho Montana scale of forest and watershed restoration Projects with Timber 14 17 Removal Completed or activities on federal forests. In-Progress 2016-2023

• Designed to be self-funding over time, Projects without Timber 29 N/A through timber sale revenue which will Removal Completed or In-Progress 2016-2023 lead to increased restoration and management in the forest. Estimated Acres Treated 13,568 10,934 by 2023

• Allows knowledge sharing between state Estimated Harvest 113,058 68,599 and federal agencies. Volume by 2023 (MBF)

33 Good Neighbor Authority

Note: Map current as of 2-25-19. Project status changes frequently. 34 Shared Stewardship

“Shared stewardship simply means we share decision space with states, partners and tribes. Together we choose the right tools, the right places and the appropriate scale to invest our resources. We jointly set priorities that incorporate each other’s knowledge, skills and personnel.”

– Vicki Christiansen Chief, US Forest Service

35 Shared Stewardship

In action, means: • A sense of interdependence and shared responsibility • Outcomes based investment strategies • Working across ownerships/boundaries • Recognition of a need to increase treatment areas (active management)

36 Active Management Active Management

Total Idaho & Montana National Forest Sold Volume (MMBF) vs. Allowable Sale Quantity (ASQ) 1990-2023 1000

900

800

700

600

500

400

300

200

100

0

Volume Sold (MMBF), Idaho and Montana ASQ Idaho and Montana 38 Idaho National Forest Suitable Acres Managed 2010-2018

250,000 On average, 1.2% 200,000

of Idaho’s 150,000 suitable acres are treated 100,000

each year Acres Treated Acres

50,000

- 2010 2011 2012 2013 2014 2015 2016 2017 2018 Wildfire Acres Deemed Beneficial 16,870 69,140 23,206 155,528 36,905 76,032 146,768 172,739 141,612 Commercial Harvest Acres 3,887 6,244 10,536 8,813 9,542 7,090 6,036 9,489 16,580 Mechanical Fuels Treatment Acres * 26,855 17,737 11,636 17,855 12,778 13,702 13,754 17,041 22,198 RX Fire Acres Treated 26,522 30,393 31,179 16,785 29,236 23,475 26,597 13,017 25,701

*Total Suitable Acres: 4,202,010 *Fuels Treatment: mechanical removal (non-commercial harvest), prescribed fire, and naturally occurring wildfire deemed beneficial to the landscape. 39 Idaho National Forest Region Comparison Acres Managed 2010-2018

Total Acres Managed between 2010-2018 Total Acres Managed between 2010-2018 ID Region 1 ID Region 4

Total Acres: 461,802 Total Acres: 831,676

13% 7% 20% 9%

71% 61% 14%

5%

RX Fire Acres Treated RX Fire Acres Treated Mechanical Fuels Treatment Acres Mechanical Fuels Treatment Acres Commercial Harvest Acres Commercial Harvest Acres Wildfire Acres Deemed Beneficial Wildfire Acres Deemed Beneficial

Total Idaho acres managed (region 1 & 4): 1,293,478 40 Montana National Forest Suitable Acres Managed 2010-2018

200,000 On average, 180,000 160,000 0.5% 140,000 of Montana’s 120,000 suitable acres 100,000 are treated 80,000 each year Acres Treated Acres 60,000 40,000 20,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 Wildfire Acres Deemed Beneficial 8,283 29,151 25,522 55,918 45,078 147,591 46,932 142,246 50,993 Commercial Harvest Acres 12,884 9,845 9,997 12,436 10,684 8,014 7,980 6,094 10,132 Mechanical Fuels Treatment* Acres 25,312 14,709 11,851 12,237 15,865 12,137 13,148 13,642 16,126 RX Fire Acres Treated 15,689 30,520 19,914 15,222 16,520 18,620 13,373 12,894 21,892

* Total Suitable Acres: 5,539,703 * Fuels Treatment: mechanical removal (non-commercial harvest), prescribed fire, and naturally occurring wildfire deemed beneficial to the landscape. 41 Montana National Forest Region Comparison Acres Managed 2010-2018

Total Acres Managed between 2010-2018 Total Acres: 939,451

18%

59% 14%

9%

RX Fire Acres Treated Mechanical Fuels Treatment Acres Commercial Harvest Acres Wildfire Acres Deemed Beneficial 42 Summary Desired Results

To increase the pace and scale of treatment on national forests, Idaho will need to commit resources to increasing activity as outlined in the Shared Stewardship agreement signed in December 2018.

Status Quo MOU 1.0 MOU 2.0 Treating the forests Treating the forests by Treating the forests at at our current pace, only doubling the double the current it will take ~121 current pace of pace (commercial years to treat commercial harvest, it harvest & hazardous Idaho’s 6.1 million will take ~103 years fuels treatments), it acres at risk. to treat Idaho’s 6.1 will take ~60 years to million acres at risk. treat Idaho’s 6.1 million acres at risk.

44 Desired Results

In Montana, a similar commitment could reduce the time needed to treat at-risk acres in half.

Treating the forests Treating the forests Treating the forests at our current pace, by only doubling at double the current it will take ~114 the current pace of pace (commercial years to treat commercial harvest, harvest & hazardous Montana’s 4.9 it will take ~93 years fuels treatments), it million acres at risk. to treat Montana’s 4.9 will take ~57 years million acres at risk. to treat Montana’s 4.9 million acres at risk.

45 Desired Results

PURPOSE • Increased forest resilience and decreased catastrophic fire risk PEOPLE • Greater collaboration between state and federal governments (cooperative federalism) and stakeholders PROCESS • Continued focus on using new technology to collect data that will drive forest management decisions • Increased sharing of data and science that can help government, private, and industry land owners better manage their forestland PERFORMANCE • A measurable increase in the pace and scale of treatment on public lands

46 Thank You

Tom Schultz, VP of Government Affairs | [email protected]

Where did this data come from?

National Insect and Disease Risk Map (NIDRM) data is a collaborative process led by the Forest Health Monitoring program (FHM) and the USDA Forest Service that can be used to identify the potential impacts of pests and pathogens to forest ecosystems throughout the US for the time frame 2013-2027. Forest Inventory and Analysis (FIA) data helps determine how much forest exists, where it exists, who owns it and how it is changing. It has been collected since 1930. The total nationwide fire acres were found on the National interagency Fire Center (NIFC) website that houses the National Interagency Coordination Center (NICC) fire data yearly reports. These can be found at https://www.nifc.gov/fireInfo/fireInfo_statistics.html. The data on harvest came from USFS Cut and Sold Reports found at https://www.fs.fed.us/forestmanagement/products/cut-sold/index.shtml.