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Land Board Hearing Recap

Tuesday, June 17, 2025

• All board members present, with the Superintendent joining remotely
• Review the Final Agenda
• Download the Meeting Materials

Department Report

Timber

• Attachment: Trust Land – Timber Sales

• May Timber Sales:

  • 6 endowment timber sales sold at auction; 5 had competitive bidding.

  • Net sale value: $8.9 million, representing a 23% upbid over appraisal.

  • Total volume sold: 31.8 million board feet at $279.31 per thousand board feet.

• GNA Program:

  • Sold Flat Fire salvage sale (2024 fire near Centerville, ID).

  • Volume: 2.4 million board feet.

• June Offerings:

  • 11 sales offered, totaling 59.2 million board feet.

  • Appraised value: $8 million.

• Active Contracts (Page 2):

  • 168 contracts totaling 491+ million board feet.

  • Valued at $140.3 million.

• FY25 Receipts and Forecast:

  • FY-to-date timber receipts: $77+ million.

  • Expected June receipts: $6.2 million+.

  • FY25 program: 324.5 million board feet sold or in process (99% of plan).

• Performance Metrics:

  • Exceeding cedar pull target.

  • Timber harvest receipts at 108% of 3-year average.

  • Volume harvested at 103% of 3-year average.

• Market Trends (Page 4):

  • Softwood lumber prices down 4.8% month-over-month, but up 12% year-over-year.

  • 30-year mortgage rates ~6.8%, housing starts slow but steady.

  • Six-month average stumpage price above last year’s level.

• Attachment: Trust Land – Leases and Permits

• Issued 3 instruments in May.

• Acquired 2 deeds for Lewiston Seed Orchard; purchase closed at $700,000.

• Granted 2 easements: Avista Corporation and Syringa Networks.

• Leasing revenue slightly above projections at $8.2 million fiscal year to date.

• Permanent Fund revenue exceeds 3-year average, with over $2.5 million deposited.

• Sand and gravel leases make up 80% of Permanent Fund deposits.

• Lewiston Seed Orchard acquisition completed; water rights issues resolved.

• Orchard will support in-house seedling production for sustainable harvest of 330 million board feet annually.

Endowment Fund Investment Board

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

• Both portfolios saw strong performance in May, up 4% for the month.

• Fiscal year-to-date return is 8.1%, rising to 9.7% as of mid-June.

• Performance driven by easing of U.S.–China tariffs (reduced from 145% to 30%) and progress with the EU on trade.

• Markets rebounded due to improved trade outlook and a sharp rise in consumer confidence.

• President Trump's proposed "One Big Beautiful Bill" passed the House, under Senate review.

  • Aims to make 2017 tax cuts permanent, increase SALT deductions, and boost border and military spending.

  • Expected to increase the federal deficit, pressuring the bond market and raising long-term interest rates.

  • Equity markets responded positively due to expected economic stimulus and job creation.

• Overall market and portfolio outlook remain strong heading into fiscal year-end.

Consent Agenda

• Approved 5-0

Strategic Plan FY2026-FY2029

• Attachment: Strategic Plan FY2026-FY2029

• The draft FY26–FY29 IDL strategic plan is ready; submission deadline is August 29, 2025, not July 1 as previously noted.

• The plan is structured around four foundational goals: financial stewardship, customer focus, people, and process.

• Secondary "stretch" (future-proofing) goals include:

  • Classification and compensation

  • Office and seasonal housing facilities

  • Wildland fire program modernization

  • Integrity in policy and procedure

• Plan updates reflect progress made and keep the strategy current.

• The plan includes the department’s mission, vision, goals, and strategies, and meets DFM requirements.

• Though not explicitly stated, collaboration with the federal government (e.g., USFS) is ongoing, particularly on forest health and fire mitigation.

• Governor’s executive orders and federal initiatives (e.g., forest management, increased federal timber cuts) are partially reflected in current priorities but not fully integrated into the written plan.

• Recommendation: Submit the plan early and ensure future iterations align more clearly with federal opportunities and executive direction.

• Follow-up discussions among IDL staff will focus on leveraging federal partnerships and enhancing alignment with evolving policy landscapes.

State Membership in Timber Protective Associations

• Attachment: State Membership in Timber Protective Associations

• IDL annually reviews the readiness of the Clearwater Potlatch and Southern Idaho TPAs per Idaho Code §38.

• Reviews in May found no significant deficiencies; both TPAs are prepared for the fire season.

• Evaluation criteria included governance, equipment condition, insurance coverage, and training.

• Recommendation: Authorize continued state participation in both TPAs.

Deficiency Warrant Authority for FY2026 Fire Suppression

• Attachment: Deficiency Warrant Authority for FY2026 Fire Suppression

• Idaho Code §38-131 allows the Land Board to authorize deficiency warrants if fire suppression costs exceed appropriated funds.

• Due to unpredictable suppression costs, a minimal annual budget is appropriated; deficiency warrants act as a financial backstop.

• FY25 fire suppression costs have not yet exceeded current funding, but preemptive authorization is sought.

• Attorney General questioned legality of approving authority before exceeding costs, suggesting statutory conflict.

• Governor and other members noted this has been standard practice, especially given reduced pre-funding from the legislature.

• Fixed annual costs are estimated at $15–18 million, with potential for $40M+ in heavy fire years.

Information Agenda

Proposed Rule IDAPA 20.03.08, Easements on State-Owned Lands

• Attachment: Proposed Rule IDAPA 20.03.08, Easements on State-Owned Lands

• Rulemaking was initiated following the December 2024 Land Board meeting, in compliance with Executive Order 2020-01.

• Public outreach included three stakeholder meetings in Coeur d’Alene, Idaho Falls, and Boise during March and April, with a written comment period.

• Two entities submitted comments, primarily focused on definitions and text improvements.

• A significant change was the removal of the easement compensation limits rubric, which had restricted long-term revenue potential.

• The proposed rule will be published in the August 6 Administrative Bulletin; a second public comment period will follow.

• The final version will be brought to the board in late 2025 before being submitted to the Legislature.

• Fiscal impact from removing small processing fees is minimal, as fees collected were low and didn’t cover administrative costs.

Proposed Rule IDAPA 20.03.08, Easements on State-Owned Lands

• Attachment: Proposed Rule IDAPA 20.03.08

• Proposed rule IDAPA 20.03.08 follows Executive Order 2020-01 for Zero-Based rulemaking, scheduled for 2026 legislative review.

• Department held outreach with three stakeholder meetings (Coeur d’Alene, Idaho Falls, Boise) and open comment period.

• Two entities submitted comments focusing on definitions and text improvements.

• Key change: removal of easement compensation limits ($50-$100 fee cap) to better align with department mission and Idaho Constitution.

• Removal of fee cap may reduce upfront revenue but increases full compensation on easement grants; overall fiscal impact minimal.

• Current fees are low and don’t fully cover administrative costs; appraisal fees are the primary costs paid by applicants.

• Proposed rule to be published August 6 for further public comment; final rule to return to Board for approval in late 2025.

Pre-Season Fire Forecast and Update

• Attachments:
  • Predictive Services Forecast

  • Pre-Season Fire Forecast and Update

• Fire Season Overview - Julia Lauch

  • The fire season is already underway; this briefing provides a current outlook rather than a preseason forecast.

  • There is strong coordination with federal partners amid nationwide staffing shortages.

  • There are normal staffing levels for incident management teams, though bench strength is thinner, especially in mid-to-upper-level roles.

  • Federal partners face shortages in non-fire collateral duty roles, procurement, resource advisors, and incident business staff.

  • Despite gaps, agencies are working collaboratively to fill roles and maintain safety.

• Predictive Services Forecast—Jim Wallmann, Meteorologist, BLM
  • Southern Idaho faces increased risk due to high grass loading from a wet winter and early snowmelt.
  • Snowpack in northern and central Idaho was above average but melted 2–3 weeks early, exposing fuels sooner.
  • Drought conditions are expected to intensify across southern Idaho, while Panhandle drought has improved somewhat.
  • The climate outlook projects a warmer, drier summer across much of Idaho and the Northwest.
  • Above-normal fire potential is forecast for most of the state, especially from July through September.
  • Past years with similar conditions (e.g., 2000, 2006, 2017, 2021) experienced active fire seasons.
  • The potential will be realized if dry lightning events occur; a wet August like 2023 could help reduce fire activity.
• Resource Readiness/Rangeland Fire Protection Associations

Fire Strategic Plan

• Attachment: Fire Strategic Plan
• Strategic Plan Update
  • This is the first update to its Wildland Fire Strategic Plan, including Appendix A with planned actions, costs, and timelines for 2027–2028.
  • The plan addresses increasing wildfire risks and population growth and will be updated regularly.
  • Emphasis on strengthening partnerships with federal agencies, fire chiefs, emergency management, and neighboring states.

• Board Requests & Feedback

  • Board requested more precise goals and cost details in April.

  • Emphasis on involving more stakeholder input (e.g., logging contractors, local fire groups).

• Response to Challenges

  • Addresses increased wildfire risk, population growth, and staffing/resource issues.

  • Focus on flexibility and statewide resource coordination.

• Partnerships & Coordination

  • Stronger collaboration with federal and local agencies (e.g., Forest Service, BLM, OEM).

  • Expanded participation in multi-state compacts (e.g., Northwest Compact).

• Incident Management Teams (IMTs)

  • Goal: Build in-state Type 3 IMT capacity for quicker, localized wildfire response.

• Federal Coordination Issues

  • Concerns about delayed payments and under-staffed federal procurement teams.

  • Proposal to potentially deploy state procurement staff to support incident logistics.

• Next Actions

  • IDL to provide board with specific guidance to improve federal support and coordination.

  • Continued refinement of plan based on partner input and seasonal lessons.

Regular Agenda

Legal Representation Policy

• Attachment: Legal Representation Policy
• Approved - 4-1

• Senate Bill 1292 (2024) changed legal counsel rules for Idaho Department of Lands (IDL), creating an independent General Counsel appointed by the Director and approved by the Land Board.

• General Counsel operates independently from the Attorney General’s office but may consult or contract with them as needed.

• The new policy clarifies roles and legal authority between IDL attorneys and the Land Board, maintaining Board oversight and constitutional authority.

• Prior to this, the Land Board and IDL shared unified legal representation; no formal policy existed under the new law.

• The Attorney General opposed the policy, arguing it contradicts state law and constitution, emphasizing the Board controls the IDL as an instrumentality and should have unified legal counsel via the Attorney General.

• The Governor supported the policy, stressing the need for a single legal counsel representing the Board collectively for fiduciary responsibilities.

Executive Session

Performance Evaluation—Director, Department of Lands

Regular Agenda

Personnel Matter - Dustin Miller, Performance Evaluation

• No Attachments
• Approved: 4-0

• The Land Board evaluated Director Dustin Miller’s performance and expressed appreciation for his leadership and team.

• A motion was made and seconded to increase Director Miller’s pay by $1.30 per hour, raising it from $76.38 to $77.68, effective June 8, 2025, for the July 3, 2025 payday.

• The pay increase was unanimously approved by the Board.

• Director Miller thanked the Board and expressed eagerness for another productive year of collaboration.

Adjournment