Land Board Hearing Recap - November 18, 2025

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Land Board Hearing Recap

All board members present, Superintendent attended remotely
Review the Final Agenda
Download the Meeting Materials

Tuesday, November 18, 2025

Department Report

Timber Sales Revenue

Attachment: Trust Land – Timber Sales
October sales: 6 offered, 4 competitive; net 16% above appraisal. Sold 28,740 MBF for $10.13M.
Under contract: 496,502 MBF valued at $150.76M across Public School and Pooled endowments.
Receipts: October $7.55M stumpage; FY-to-date $37.84M; November projected $6.12M.
Market: Prices volatile but rising; six-month average up >$100/MBF year over year.
FY2026 progress: 51% of sawlog target, 87% of pole target; no failed sales.

Leases & Permits

Attachment: Trust Land – Leases and Permits
52 FY2026 leases/permits issued (Jul–Oct): grazing, land use, minerals, recreation, and misc.
Non-timber revenue YTD: $1.57M (vs. $918k expected); major sources: commercial recreation, agriculture, grazing, office/retail.
Minerals Permanent Fund revenue: $1.45M (unanticipated).
FY2026 projected non-timber revenue: $8.75M.
Real estate actions YTD: 1 deed acquired, 3 deeds granted, 3 easements granted, 9 acquired.
Key sale: Priest Lake cottage site for $1.509M.

Fire Season Update - Final

Attachment: Fire Season Update - Final

Fire suppression costs (Nov 3, 2025): $59.28M total; $18.68M reimbursable; $40.6M net.
2025 activity: 392 fires (135% of avg); 4,898 acres burned (20% of avg); normal conditions, no restrictions.
Acres burned (183,981): BLM 85,998; USFS 66,855; Private 13,569; State endowment 7,454.
Major cost drivers: aviation $3.5M; prepositioned engines $1.01M; IDL fires $34.3M total; reimbursable $18.68M.

Land Bank Fund

Attachment: Land Bank Fund
Cash balance with interest totals about $76.8M in the Land Bank.

Endowment Fund Investment Board

Attachments:
Audit: Endowment Fund financials for FY24–FY25 received a clean opinion; audits met GAAS and Government Auditing Standards; auditors confirmed independence and sufficient evidence.
Performance: Fund up +1.0% in October and +5.9% FYTD; total value $3.79B; reserves strong and FY26–FY27 distributions secured.
Market factors: Strong corporate/AI-driven tech gains, 0.25% Fed rate cut, stronger emerging markets, slight rise in 10-year yield, markets steady despite valuation and economic concerns.

Performance Review of Total Endowments

Attachment: Performance Review of Total Endowments
Since 2014, Callan calculates a total endowment return combining financial + land assets.
The 2024 Investment Policy requires annual performance reports to the Land Board.
FY2025 Performance:
- Combined return: 9.27% (↑ from 8.49%).
- Land assets: 5.50% (↑ from 3.37%).
- Financial assets: 11.31% (slightly ↓ from 11.50%).
- Return target: 3.5% real + inflation ≈ 6.06%, exceeded in FY2025.
Callan provided asset-class land return and income vs. appreciation reporting; some classes show zero appreciation because reappraisals occur every ~3 years.

Consent Agenda

Approved 5-0

August 13, 2025 Live Auction, Geothermal Lease H800110

Attachment: August 13, 2025 Live Auction, Geothermal Lease H800110
Lease Overview
- Geothermal lease H800110 covers 5,881.66 acres of Public School endowment land in Bonneville County.
- Required county consultation, public meeting, and 30-day comment period completed with no objections or comments.
Auction Results
- Live auction held August 13, 2025, properly advertised and conducted.
- Velikan Renewables LLC (Fervo Energy) submitted the winning $5,900 bid; Zanskar Geothermal registered but did not bid.
- Lease terms: 49 years, annual rent $47,053 (3% annual increase), royalty 3.5% → 4.0% (yrs 16–30) → 4.5%.
Discussion
- Governor requested stronger coordination with Idaho Department of Water Resources and local groundwater districts due to regional water concerns.
- Zanskar did not bid because its conventional geothermal approach requires water; geology and water availability were insufficient.
- Velikan/Fervo uses enhanced geothermal systems (EGS), which recycle fluids and do not rely on local groundwater, making the site viable.
- Lease rental rates set using regional market data (approx. $8/acre).
- Clarified revenue treatment: geothermal income expected to flow to earnings reserve as a renewable resource.
Compliance
- No evidence of fraud, collusion, or procedural violations

Emmett Airport Pond Surplus Property (Idaho Fish and Game)

Attachment:Emmett Airport Pond Surplus Property

Reason for Disposal
- Fishery has declined, maintenance costs rising.
- Nearby ponds offer better, deeper, more accessible fishing opportunities.
- Access unreliable due to neighboring private property changes; site is closed to the public.
- Property no longer meets IDFG management needs.
Property Details
- Acquired in 1967; former gravel pit.
- Appraised at $50,000 (Aug 2025), with highest and best use as residential/open space when combined with adjacent parcels.
- Low value due to lack of legal access.
Discussion
- Governor questioned the low appraisal; staff clarified the valuation reflects no access and limited usable acreage.
- City of Emmett expressed interest but understands IDFG must follow the statutory process.
Disposition Process (Idaho Code §§ 58-331–335)
- Property title transferred to the Land Board for disposal.
- Must first offer to state agencies, then tax-supported agencies, then public auction.
- If the auction receives no bids, a negotiated sale is allowed.

Regular Agenda

Adoption of Pending Rule IDAPA 20.03.02, Rules Governing Mined Land Reclamation

Attachment: Adoption of Pending Rule IDAPA 20.03.02
Approved 5-0
Purpose of the Rules
- Regulate exploration notifications, mining operations, reclamation, and cyanidation facilities.
- Establish financial assurance requirements.
Rulemaking Process
- Negotiated rulemaking authorized Feb 20, 2024; full rule review planned for 2025.
- Outreach included bulletin postings, postcards, emails, and 11 public meetings (75 attendees).
- 56 comments received and addressed; public hearing held Oct 7 with 1 testimony + 3 written comments.
- Proposed rule published Oct 2025.
Key Changes in the Pending Rule
- Reduced regulatory burden: 3.6% fewer words, 24% fewer restrictive terms.
- Clarified definitions; removed duplications.
- Updated terminology (e.g., director → department, disturbed → affected, shall → will).
- Minor grammar and clarity improvements; no fee increases.
Discussion
- Controller asked whether any of the 56 comments raised significant concerns; staff confirmed all issues were resolved through productive collaboration over the two-year process.

Adoption of Pending Rule IDAPA 20.03.04, Rules for the Regulation of Beds, Waters, and Airspace Over Navigable Lakes in Idaho

Attachment: Adoption of Pending Rule IDAPA 20.03.04
Approved 5-0
Rulemaking Background
- Rule governs beds, waters, and airspace over Idaho’s navigable lakes (IDAPA 20.03.04).
- Authority under Idaho Code Title 58, Chapter 13.
- Part of the statewide Zero-Based Regulation review planned for 2025.
- Negotiated rulemaking authorized Feb 20, 2024.
Rulemaking Process
- Outreach included bulletin postings, postcards, emails, and 8 public meetings (61 attendees).
- 42 comments received during negotiated rulemaking; all addressed.
- Proposed rule published Sept 2025; public hearing held Sept 11—no oral testimony, 4 written comments received.
- Minor revisions made based on comments and internal review.
Key Changes in the Pending Rule
- 13.48% reduction in total word count; 27% fewer restrictive terms; document shortened by 3 pages.
- Added definitions for common encroachments (e.g., breakwater, seawall, water line, residential area, marine fuel facility).
- Incorporated the International Fire Code by reference.
- Eliminated redundancies, reorganized sections, and updated language to reflect current practices.
Discussion
- Board asked clarifying questions; no concerns raised about the rule content or process.

Statement of Investment Policy Annual Review

Attachment: Statement of Investment Policy Annual Review
Approved 4-1
Background
- Callan’s 2014 review recommended creating a unified Investment Policy Statement (IPS) for the combined Endowment Trust.
- Policy developed jointly with EFIB and adopted in May 2016; requires annual Land Board review.
2025 Review
- IDL, EFIB, and Callan updated the IPS and appendices to clarify language, correct outdated content, and align with current practices.
- Investment Subcommittee (Director Miller, Chris Anton, Tom Wolford) approved updates unanimously on Nov. 7, 2025.
Key Updates
- Updated asset class valuations and portfolio percentages (FY25).
- Combined trust value increased by $366 million.
- Added statutory links (Forest Practices Act, prudent investor standards).
- Removed repetitive language and reorganized timberland management section.
Discussion
- Governor asked how the expected net return numbers are generated; staff will follow up with EFIB/Callan for methodology.
- Controller raised broader strategic concerns about target allocations for land assets and long-term planning for timberland, rangeland, and Land Bank assets.
- Attorney General objected to new language in Section 4, arguing it may conflict with Idaho Code § 58-133, which reserves state timberland from sale.
- Staff clarified that reclassification decisions remain Land Board-controlled, but concerns persisted; the Attorney General voted no.

Reconsideration of Disposition of Driggs 160 Endowment Parcel

Attachment: Reconsideration of Disposition of Driggs 160 Endowment Parcel
Approved:4-1
Issue
- Reconsideration of the planned public auction of the Driggs 160 (160 acres of endowment rangeland in Teton County).
- County commissioners submitted an objection letter, triggering required Land Board review.
Background
- Endowment land holdings in Teton County have declined from 46,860 acres (1890–1980) to ~1,160 acres today.
- Dispositions in recent decades have been minimal; proceeds have funded 54,000 acres of new, higher-performing timberlands.
- Board’s mandate (Idaho Constitution, Idaho Code 58-105) requires maximizing long-term financial returns, including selling lands when reinvestment yields higher value.
Department Recommendation
- Proceed with auction: parcel is isolated, surrounded by private land, and produces very low income.
- Sale proceeds could be reinvested into higher-performing land or financial assets.
Discussion
- Communication concerns: Secretary of State emphasized poor notice to the grazing lessees (they learned via Facebook). Members agreed the department must improve communication with lessees and neighbors.
- Lease considerations: Debate over attaching a condition requiring the buyer to honor the full remaining grazing lease term.
  - Secretary proposed honoring the lease and setting the minimum bid at the fee-simple appraised value, with the option to re-auction if no bids were received.
  - Concerns raised about whether this would require re-appraisal or reduce bidder interest.
- Policy concerns:
  - Attorney General highlighted statutory limits on selling timberland and broader need to ensure dispositions comply with Idaho law.
  - Governor and Secretary discussed improving policy to help keep rural communities “whole” while meeting fiduciary duties.
  - Uncertainty raised about mineral rights policy; Board agreed future sales need clearer guidance.
- First motion (to condition the sale on honoring the lease) failed.

- Second motion (to proceed with sale and require a real-estate expert to return with a detailed disposition plan—including valuation, lease issues, and mineral rights) passed.
Outcome
- Land Board voted to proceed with disposition of the Driggs 160 via public auction.
- Department must return with a real-estate advisory plan addressing next-step details before listing the property.

USFS/IDL Land Exchange Concept

Attachment:USFS/IDL Land Exchange Concept
Approved: 4-1
Context
- IDL is exploring a potential land exchange between the State and U.S. Forest Service involving 15,000+ acres of endowment land around Payette Lake.
- Parcels are considered underperforming assets (high land value, relatively low income), triggering review under the Investment Policy and Asset Management Plan.

Goals of a Potential Exchange
- Obtain equal or greater value for endowment beneficiaries.
- Consolidate endowment holdings and improve access to working lands.
- Maintain public access to Payette Lake.
- Match or increase income generation (timber, leasing, other uses).
- Achieve similar long-term land appreciation.
- Better align land management with the most appropriate owner (state vs. federal).
Process & Limits
- Current action does not authorize an exchange.
- Next steps (if concepts look promising):
- Seek Land Board approval to conduct formal due diligence.
- If due diligence supports it, return to the Land Board for final exchange approval.
- On the federal side, an exchange would likely require Congressional direction.
- Any acquired lands would be managed as endowment lands, with public recreation allowed consistent with IDL policy.
Discussion
- Secretary of State:
  - Supports exploring an exchange but flagged the scale and community impact on McCall/Valley County.
  - Stressed the need for strong public engagement (local governments, residents, user groups) once there are concrete details.
- Governor:
  - Explained that, in today’s legal environment, exchanges of this kind typically must go through Congress, unlike older administrative swaps.
  - Noted exchanges must be politically supported and can take time.
- Attorney General:
  - Expressed reservations about transferring additional land to the federal government, particularly in an area as important as McCall.
  - Board members emphasized valuing both state and federal parcels at highest and best use, not just timber, given development and recreation pressures around the lake.
Outcome
- Motion passed to direct IDL to continue evaluating a potential exchange of endowment lands around Payette Lake for federal land, incorporating the concerns raised (valuation, public engagement, scale, and long-term implications).
- Attorney General voted “no”, citing concerns about increasing federal ownership in the area.

Information Agenda

USFS-IDL Joint Shared Stewardship Presentation

Attachment: USFS-IDL Joint Shared Stewardship Presentation
Purpose: Update the Land Board on 2024–2025 progress, 2026 goals, and accomplishments under Shared Stewardship, No Boundaries Forestry, and the Good Neighbor Authority (GNA).
Major Update:
- Enhanced Shared Stewardship Agreement signed 11/14/25, increasing GNA harvest targets and strengthening cross-boundary work.
- IDL secured $13M in new grants despite earlier federal funding gaps.
- GNA agreements now exist with all 7 national forests.
Accomplishments
- Significant increases in harvesting, thinning, mastication, and prescribed fire across state, private, and federal lands.
- IDL has awarded 64 GNA timber sales, treating 16,000+ acres and generating 209M board feet—highest among western states.
- FY25 set records for acres treated, timber volume, and revenue.

2026 Goals:
- Expand cross-boundary fuel reduction and meet higher federal GNA harvest targets.
Discussion Highlights:
- Treatment costs: $150–$1,200/acre in the north; $2,500–$3,000+/acre in the south depending on terrain.
- County funding sources: Title III Secure Rural Schools funds, federal mitigation grants, and utility/partner contributions.
- Board emphasized improved wildfire resilience and continued expansion of GNA work.
Overall: Idaho continues to lead the nation in cross-boundary forest management and wildfire-risk reduction.

Executive Session

None

Adjournment

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