1. (1) The goals of the small forestland owner minimum option vegetation retention requirements are to recognize the inherent differences in the needs and requirements of these owners while meeting the overall objectives of the Private Forest Accord Report, including but not limited to:

   1. (a) Minimizing the conversion of timberlands to other uses while recognizing conversion to other land uses may occur;
   2. (b) Minimizing the conversion of timberlands through a system of incentives, education, and regulatory stability for the small forestland owner; and
   3. (c) Providing a landowner who may face disproportionate economic impact from revised riparian vegetation retention rules with an optional prescription while providing for equal environmental outcomes and the potential for increased financial outcomes.

2. (2) For the purposes of this rule, a landowner who qualifies as a small forestland owner, as described in OAR 629-607-0200, may use one of the following riparian vegetation retention options:

   1. (a) The standard practice retention prescriptions described in Table 1 for Western Oregon and Table 2 for Eastern Oregon. The standard practice is available to optimize environmental benefits and mitigate risks to natural resources.

      [Table 1. Western Oregon Standard Practice Vegetation Retention Riparian Management Area Distances] [Table 2: Eastern Oregon Standard Practice Vegetation Retention Riparian Management Area Distances]

   2. (b) The small forestland owner minimum option vegetation retention prescriptions described in Table 3 for Western Oregon and Table 4 for Eastern Oregon, as limited by the terms of this rule and OAR 629-607-0400. The small forestland owner minimum option prescription applies to harvest types 1, 2, and 3 within the riparian areas of both Western Oregon and Eastern Oregon streams.

      [Table 3: Western Oregon Small Forestland Owner Minimum Option Vegetation Retention Riparian Management Area Distances] [Table 4: Eastern Oregon Small Forestland Owner Minimum Option Vegetation Retention Riparian Management Area Distances]

   3. (c) The forest conservation tax credit option. The standard practice riparian vegetation retention prescription with the option to apply for the forest conservation tax credit, as described in OAR 629-607-0400 through 629-607-0800. When the small forestland owner requests the forest conservation tax credit as part of a notice of operation, the State Forester shall review the request and notify the small forestland owner whether the small forestland owner is eligible for the credit. If the State Forester approves a request for a forest conservation tax credit, the small forestland owner shall receive a state tax credit for the stumpage value of this timber.

3. (3) Forest conservation tax credit. In addition to the small forestland owner minimum option, the small forestland owner may follow the standard practice vegetation retention requirements available to small forestland owners. When the small forestland owner selects the standard practice retention requirements in either Western Oregon or Eastern Oregon, the small forestland owner may apply for a forest conservation tax credit.

   1. (a) A small forestland owner who selects the standard practice shall follow the same requirements in the standard practice retention rules for the riparian management area for harvest types 1, 2, and 3.
   2. (b) A small forestland owner who selects the standard practice shall define the forest conservation area as the area between the outermost edge of the standard practice width and the outermost edge of the small forestland owner minimum option width.
   3. (c) The forest conservation tax credit is equal to 100 percent of the stumpage value of standing trees that are retained in the forest conservation area, as described in OAR 629-607-0500. A small forestland owner who receives the forest conservation tax credit shall retain the trees within the forest conservation area for 50 years as required by the forest conservation tax credit program.
   4. (d) A small forestland owner completing a harvest type 4 is not eligible to claim the forest conservation tax credit. No other limitations are in place for using a harvest type 4 within the fifth-field watershed.

4. (4) Fifth field watershed restriction for using the small forestland owner minimum option. There is a limit to the use of the small forestland owner minimum option within a fifth field watershed as delineated by the U.S. Geological Survey. It is limited to five percent of the riparian areas owned by small forestland owners in a fifth field watershed within a five-year period. The department will track the use of the small forestland owner minimum options as described in (4)(a)(C). Within 90 days after a small forestland owner completes a timber harvest adjacent to a riparian area, the small forestland owner who selects the small forestland owner minimum option shall report to the State Forester the total lineal feet of riparian area where the small forestland owner minimum option is applied within the harvest area. When reporting total lineal feet, the small forestland owner shall include each side of the stream. The small forestland owner shall report lineal feet in horizontal distance. The small forestland owner may use the small forestland owner minimum option harvest prescription in any defined fifth-field watershed based on the following criteria:

   1. (a) When there are multiple small forestland owners within a fifth-field watershed, the small forestland owners within the watershed may use the small forestland owner minimum option for harvest types 1, 2, and 3 on no more than five percent of the total horizontal lineal feet of streams in the watershed. The five percent maximum harvest limitation applies, in aggregate, to all small forestland owners within the fifth-field watershed. The five percent is measured within a five-year period.

      1. (A) For the five percent maximum harvest limitation described in (a), the State Forester shall track stream distances for Type F and Type N streams separately. For this rule’s tracking purposes, Type F streams shall include Type SSBT streams.

      2. (B) The State Forester shall calculate the five percent maximum harvest limitation per fifth-field watershed using the five-year rolling average for each stream classification. The five percent maximum harvest limitation is calculated using the total horizontal lineal feet of riparian area harvest per stream classification (Type F or Type N), divided by the total available lineal feet of Type F and Type N streams in the defined watershed. Type F and Type N restrictions may be different in a fifth field watershed.

         1. (i) Consideration of the five-year rolling average for calculating the lineal feet of riparian harvest shall be continuous.
         2. (ii) Any harvest and the associated lineal feet that is older than five years shall be excluded from tracking and from the calculation of the watershed harvest limitation for each stream classification.
      3. (C) The State Forester shall track lineal feet for each side of the stream associated with the small forestland owner minimum option tracking. Harvest occurring exclusively on one side of the stream shall be counted as one-half the lineal feet for the stream segment.

   2. (b) When the five percent maximum harvest limitation exists for a defined watershed and the small forestland owner chooses to use the small forestland owner minimum option prescription, the small forestland owner may select from either option (A) or (B):

      1. (A) Enroll on a waiting list to utilize the small forestland owner minimum option prescription at a time when the limitation has lowered below the calculation in (5)(a).

         1. (i) The State Forester shall maintain and update the list on a first come, first served basis. The department shall notify any enrolled small forestland owner when the opportunity to utilize the small forestland owner minimum option becomes available.
         2. (ii) After the State Forester provides the small forestland owner with a notification of eligibility, the small forestland owner shall elect to harvest according to the small forestland owner minimum option or forfeit priority on the waiting list.
      2. (B) The small forestland owner may use the standard practice retention requirement and apply for a tax credit for the forest conservation area at 125 percent of the value for which the small forestland owner would have been eligible under the forest conservation tax credit program in OAR 629-607-0400 through 629-607-0800.

   3. (c) OAR 629-607-0400(9) outlines a process if the forest conservation tax credit changes.

      [ED. NOTE: To view attachments referenced in rule text, click here for PDF copy.]

Statutory/Other Authority

ORS 527.710 & Section 2(1), Chapter 33, Oregon Laws 2022

Statutes/Other Implemented

ORS 527.715, 527.765 & Section 2(2), Chapter 33, Oregon Laws 2022

History

DOF 16-2024, amend filed 02/21/2024, effective 02/21/2024
DOF 1-2024, amend filed 01/03/2024, effective 01/03/2024
DOF 7-2022, adopt filed 11/21/2022, effective 01/01/2024