2007 Governor’s Task Force on the Competitivenessof Minnesota’s Primary

Forest Products Industry

Minnesota Forest Resources Partnership

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Background

• 2003 - Governor convenes Primary Forest Industry Task Force

• Fall 2006 – Ainsworth lays off 410 workers in Bemidji, Grand Rapids, Cook. Hundreds of loggers, truckers and other businesses affected by layoffs.

• September 29, 2006 – Governor holds Timber Summit

• October 2006 – Governor convenes expanded Task Force

• December 2006 – Report of near-term recommendations delivered to Governor.

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2007 Background

• January 2007 – Governor reconvenes Task Force to develop long-term recommendations.

• July 2007 – Task Force recommendations presented to Governor.

• September 2007 – Governor meets with Task Force to discuss recommendations.

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Reconvened 2007 Task Force Charge

Develop long-term recommendations to retain

and increase the competitiveness of the primary forest products

industry

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2007 Task Force Members

Public Agencies: Mark Holsten – DNR Commissioner (Co-chair)Sandy Layman - IRR Commissioner (Co-chair)Mike Bull – Assistant Commissioner, CommerceBob Krepps – St. Louis County Land

Commissioner

Loggers: Tom McCabe – McCabe Forest Products (TPA)Rich Holm – Holm Logging & Trucking (ACLT)

Forest Industry: Kent Jacobson – AinsworthPete Aube – Potlatch Joe Maher – UPM Blandin PaperTom Collins – Saapi Fine Paper

Landowner: Craig Halla – Forest Capital Partners

University of Minnesota: Dr. Alan Ek – Dept of Forest Resources

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Task Force Process

4 meetings from February – May– Refined issues from 2006 report (added energy)– Developed vision and opportunities statements – Developed 16 long-term recommendations– Completed draft report to Governor

Report sent to Governor’s office in June

Report released in July

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Task Force Vision

A healthy, fully integrated forest products industry competing successfully in the dynamic global marketplace.

– Continues to attract investment– Utilizes an environmentally sustainable supply of

timber resources (state and county forests are critical)

– Fosters an efficient synergy between the forest and renewable energy sectors

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Important Opportunities

• Governor’s unique influence on forest policy and public awareness

• Renewable energy as an emerging strategic issue

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Long-term Recommendations

Forest Sector Policy

• Create forestry economy sub-cabinet consisting of DNR, IRR, DEED, MPCA, DOA, and Commerce which will:– Provide state agency policy coordination and

action– Oversee implementation of Task Force

recommendations

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Long-term Recommendations

Forest Resources Management

• Increase statewide annual timber harvest for all ownerships to 5.5 M cords by 2012

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Long-term Recommendations

Maintenance of Working Forestland Base

• Increase state investments in working forest conservation easements, financed in partnership with other funding sources.

• Expedite public and private land exchanges in effort to reduce the “checkerboard” forestland ownership pattern and increase management efficiency and access.

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Long-term Recommendations

Renewable Energy

• Direct NextGen Energy Board to:– Make existing forest product industry facilities a

priority for state cellulosic biofuels and bioenergy policies, incentives, and research.

– Ensure that current raw material supplies of established forest product firms are sustained and the existing use of biomass is enhanced.

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Long-term Recommendations

Renewable Energy (cont.)

– Provide capital incentives for high-value biomass utilization.

– Structure incentives to enable partnerships between electric utilities and forest products industry.

– Provide state investment in pilot scale projects at existing forest products facilities.

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Long-term Recommendations

Transportation

• Increase weight limits on local, state, and federal roads while protecting road and bridge infrastructure by adding axles and braking capability.

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Long-term Recommendations

Taxation

• Improve effectiveness of Sustainable Forestry Incentives Act (SFIA) and make MN forestland property tax policy more effective.

• Encourage forestland retention by adjusting current property tax classifications/rates to make them comparable to agricultural lands.

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Iron Range Resources Initiatives

• Convened the “Seizing Opportunities: Forestry and the BioEconomy” conference in late September.

• Hosting a Renewable Energy Roundtable discussion to discern opportunities and the best course of action for NE MN.

• Will aggressively pursue renewable energy pilot project if deemed appropriate.