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Land Board Hearing Recap

Tuesday, October 15, 2024

• Governor Little was absent, all other board members were present
• Review the Final Agenda
• Download the Meeting Materials

Department Report

Timber

• Attachment: Trust Land – Timber Sales

• Attachment: Trust Land – Leases and Permits

• In September, the department issued 24 instruments in the Trust Lands division, including leases and land use permits.
• No real estate transactions occurred in September.
• Non-timber revenue as of September exceeds $1.1 million, ahead of projections due to factors like sporadic income.
• Residential lease category income is ahead of projections, boosted by admin fees from VAFO auctions (Payette Lake in August, Priest Lake in September).
• $570,000 came in earlier than expected from the Idaho Fish and Game access agreement in the commercial recreation category.
• The FY25 non-timber revenue target is over $8 million, and revenue is tracking with the three-year average.
• The first quarter of FY25 yielded over $633,000 in revenue deposited into the Permanent Fund, tracking close to the three-year average.

Fire Season Report

• Attachment: Fire Season Report
• 2024 fire season has been significant, especially in Southern Idaho.
• Estimated fire suppression expenditures are $62.3 million as of October 9th.
  • Net obligation: $51.5 million after recovering $10.8 million in reimbursable costs.
  • Contracted aircraft and engines were key in fire response efforts.
• 2023 obligation at the same time was $17.4 million, highlighting the severity of this year's season.
• Major fire: Valley Fire (started October 4th).
  • Burned almost 10,000 acres, 76-79% contained.
  • Cause: power line infrastructure, investigation ongoing.
• Fire stats: 323 fires and almost 50,000 acres burned within Idaho Department of Lands (IDL) protection.
• Extended fire season due to warm and dry fall, minimal precipitation forecasted.
  • Closed fire seasons extended beyond October 20th; permits required for burning on private land.
• Almost 1 million acres burned across Idaho in 2024, a significant increase.
• Fire suppression spending breakdown for 2024: $62.3 million total, with $51.5 million net obligation.
• AG Labrador inquired about fire data discrepancies due to updated protection boundaries in Idaho’s fire agreement.
• Director Miller explained boundary changes in the new master fire agreement (April 2023) affecting data and highlighted a shift toward agencies protecting more of their own land.
• Josh Harvey mentioned a slight increase in fires but said more data is needed for definitive trends.
• AG Labrador raised concerns about federal agencies allowing fires to burn longer and preventing private assistance, prompting Miller to explain resource prioritization and the state's differences in protection strategies.
• Harvey mentioned ongoing collaboration with federal partners and challenges with fire management on federal lands.
• Concerns about federal firefighter pay increases and the potential financial impact on fire resources were raised by Secretary McGrane and addressed by Harvey.
• Superintendent Critchfield asked about budget concerns, to which Miller and Harvey stressed flexibility in the state’s fire program and funding conversations with the legislature.
• AG Labrador asked about the Idaho Power responsibility for the Valley Fire, with Miller and Harvey explaining past procedures for billing private entities for fire suppression.
• The board discussed possible collaboration with private contractors and landowners to improve fire response on private lands.
• Secretary asked for an economic assessment of timber loss from fires, which Miller committed to compiling.
• The team highlighted a mission supporting the Department of Agriculture’s Quagga Mussel project using state helicopters.

Land Bank Aging Report

• Attachment: Land Bank Aging Report
• Quarterly Land Bank aging report: $72.5 million in the account (including interest).
• Money expiring in Q1 and Q2 of FY26; options for using funds include land acquisition or rolling into the permanent fund.
• Recent $11 million from Priest Lake cabin site auctions not yet reflected in the report.
• Discussion on identifying productive land for acquisition, particularly after Idaho lost 1 million acres to fires.
• Secretary requested updates on projects being evaluated for acquisition to maintain or expand harvest capacity.
• Director committed to providing further details on current acquisition projects and updates at future meetings.

Endowment Fund Investment Board

• Attachments:
  • EFIB Manager's Report
  • EFIB Investment Report

• September saw solid performance: both stocks and bonds increased, leading to a 1.4% portfolio gain.
• Fiscal year-to-date (Q1) performance: up 5.7%, driven by favorable Federal Reserve policy changes.
• The Fed began reducing interest rates, cutting the Fed funds rate by 50 basis points in September as inflation nears target and the labor market stabilizes.
• China's authorities initiated economic stimulus through fiscal and monetary policies, including mortgage rate cuts and increased bank lending.
• Despite ongoing global issues (Middle East tensions, Ukraine, upcoming elections), financial markets have remained steady with potential for future volatility.

Consent Agenda

• Approved - 4-0

Forest Legacy Project–International Selkirk Loop 

• Attachment: Forest Legacy Project–International Selkirk Loop
• The Forest Legacy Program seeks approval for the International Selkirk Loop project.
• This project involves conserving over 10,847 acres of working forests in Bonner and Boundary counties.
• The land is owned by Stimson Lumber Company, which is selling its development rights to protect the forests.
• The project received $7 million in grant funding from the Land and Water Conservation Fund, with a $20 million budget shortfall.
• Stimson Lumber has agreed to donate part of the shortfall, and additional funds may be sought from the U.S. Forest Service.
• The project will ensure unfragmented working forests, supporting local timber industry jobs and protecting critical wildlife habitat.
• It will connect over 50,000 acres of previously conserved land and contribute to wildfire risk mitigation.
• The project has broad support from public and private entities and faces no known opposition.

Disclaimer of Interest Request DI600335–William C. Clayton LLC, Boise River

• Attachment: Disclaimer of Interest Request DI600335

• Background:

  • River movement due to accretion results in changes to the title of the riverbed.
  • Land Board policy requires IDL to work with landowners to clear titles for accreted land.

• Application Details:

  • Applicant: William C. Clayton, LLC.
  • Parcels: Two accreted parcels totaling 78.44 acres along the Boise River.
    • Parcel B: Located within original surveyed river meander lines, adjacent to the applicant's property in the southeast quarter of Section 14 and southwest quarter of Section 13.
    • Parcel D: Located within original surveyed river meander lines, adjacent to the applicant's property in the southeast corner of Section 13 and northwest quarter of Section 24.

• Easement:

  • William C. Clayton, LLC will grant a 25-foot wide easement for public use along the existing ordinary high watermark of the Boise River.
  • Will also grant a disclaimer of interest for two parcels of land below the ordinary high watermark, totaling 22.39 acres.

• Recommendation: Approve the issuance of the disclaimer of interest for the two parcels totaling 78.44 acres.

Regular Agenda

Arco Wind and Solar Energy Lease M800070

• Attachment: Arco Wind and Solar Energy Lease M800070
• Approved: 3-1
• Lease Overview:
  • Size: Approximately 11,160 acres with a 49-year term.
  • Components: Expected 10 to 12 wind turbines; solar field size (2,000 to 5,000 acres) is dependent on transmission upgrades.
  • Land Use: 34% of the project is on endowment lands; all solar panels will be on endowment lands.
• Revenue Potential:
  • Projected annual revenue of $1.5 to $2 million once in production.
  • Current agricultural revenue: approximately $0.59 per acre; projected revenue post-lease: $200 to $300 per acre.
• Lease Development Process:
  • Completed public meeting and consultation with Bingham County Commissioners; no public comments received.
  • Conditional use permits granted by the county for both wind and solar components.
  • Support from local landowners and agencies for mitigation of biological and cultural impacts.
• Safeguards:
  • Lease structured in phases; developer must complete due diligence before construction.
  • Robust decommissioning and reclamation terms with bonding to cover potential project failures.
• Concerns Raised:
  • Attorney General expressed skepticism based on past failures of similar projects.
  • Discussions on potential costs and risks if the company or project goes bankrupt.
• Responses to Concerns:
  • Assurances of protections built into the lease and bonding measures to ensure reclamation.
  • Comparison with similar projects in other Western states to determine fair lease rates.
• Outcome:
  • A motion was made to direct the department to finalize the lease; Attorney General indicated intention to vote against the motion but appreciated the efforts made.

Adoption of Pending Rule IDAPA 20.04.01, Rules Pertaining to Forest Fire Protection 

• Attachment: Adoption of Pending Rule IDAPA 20.04.01
• Approved 4-0

• Rule IDAPA 20.04.01 Overview:

  • Governs fire suppression on private timberlands, endowment timber, and rangelands.
  • Identifies responsible personnel and enforcement authorities for forest protective districts.
  • Establishes assessment rates to fund personnel and equipment for fire protection.
  • Provides rules for efficiency and guidelines for fire protection agreements with other entities.

• Negotiated Rulemaking Process:

  • Department received approval on August 15, 2023, for rulemaking.
  • Outreach included notices in the Idaho Administrative Bulletin and engagement with stakeholders (logging contractors, environmental agencies, etc.).
  • Held two public meetings; minimal attendance with no public comments received.
  • Written comments were received from industry stakeholders and addressed accordingly.

• Next Steps: If approved, the Department will submit the Notice of Adoption for the 2025 legislative session.

• Recommendation: The Land Board is advised to adopt the pending rule for IDAPA 20.04.01 related to Forest Fire Protection.

Adoption of Pending Rule IDAPA 20.04.02, Rules Pertaining to the Idaho Forestry Act and Fire Hazard Reduction Laws 

• Attachment: Adoption of Pending Rule IDAPA 20.04.02
• Approved 4-0

• Rule IDAPA 20.04.02 Overview:

  • Establishes a consistent process for assessing and completing hazard fuel reduction.
  • Sets bond rates for ensuring compliance and penalties for non-compliant contractors.
  • Scheduled for repeal and replacement in 2024, with review in the 2025 legislative session.

• Negotiated Rulemaking Process:

  • Approval received from the State Board on August 15, 2023, to enter into rulemaking.
  • Extensive outreach included notices in the Idaho Administrative Bulletin, social media announcements, and consultations with stakeholders (logging contractors, environmental agencies, etc.).
  • Two public meetings held; minimal attendance with no public comments.
  • Written comments received from industry stakeholders and addressed in rule revisions.

• Next Steps: If approved, the Department will submit the Notice of Adoption for the 2025 legislative session.

• Recommendation: The Land Board is advised to adopt the pending rule changes for IDAPA 20.04.02.

Information Agenda

White Pine Public Access Easement 

• Attachment: White Pine Public Access Easement 

• Approved 4-0

• Project Overview:

  • Two properties located between Lick Creek Rd, Payette Lake, and Ponderosa State Park in McCall.
  • Application for a public trail easement across endowment lands to improve recreational access.

• Background:

  • Increasing demand for recreational opportunities in Idaho has strained local resources.
  • Governor Little established the Outdoor Recreation Fund Advisory Council (ORFAC) in 2023 to enhance recreation access on state and public lands.

• Project Details:

  • ORFAC evaluated proposals and recommended a trail to provide access to Ponderosa State Park, benefiting public and future occupants of White Pine Heights and Lick Creek Endowment parcels.
  • The trail will cross parts of the two parcels, surrounded by Ponderosa State Park and private development.

• Financials:

  • The project will generate revenue through the sale of a public right-of-way easement, valued at $289,000, to be executed under the Director's authority.

• Concerns Raised:

  • Potential impact of the easements on future development opportunities and access for residents.
  • Consideration of logging activities and their potential interference with trail users.

• Reassurances:

  • Access from the easement may enhance property value for future residential development.
  • Timber harvesting would involve temporary area closures for safety, minimizing user conflict.

• Conclusion: The project is seen as beneficial for public access and aligns with community recreation needs, despite some concerns about future uses.

Executive Session

None

Adjournment