The Hardwood Federation had a busy legislative yr in 2023, with a concentrate on advocacy for key developments and occasions within the trade. As we transfer into 2024, it guarantees to be simply as eventful. Outlined listed below are some highlights that can assist you monitor the trade’s focus and the place we will probably be directing our efforts within the coming yr.
Farm Invoice 2023
Entrance and middle in 2023’s advocacy was the inclusion of hardwood-friendly provisions inside the context of farm invoice laws. Political turmoil within the Home squashed hopes for an on-time 2023 Farm Invoice reauthorization, however on November 15, Congress lastly handed an extension on the expired invoice by means of September 30, 2024. The one-year extension will assure funding for key hardwood initiatives such because the Market Entry and International Market Improvement applications. It’s unclear what the precise language of the present Farm Invoice draft language appears to be like like as Home Ag Chair GT Thompson (R-PA) has indicated that he gained’t launch legislative textual content on the Farm Invoice till management schedules flooring time. However we’re assured that because the Farm Invoice strikes ahead in 2024, it would function a automobile to seize different priorities for the trade. Along with authorizing sources that promote hardwood exports, the Hardwood Federation is also leveraging the controversy to advertise associated trade targets:
Hardwood Entry Program – In an vital milestone for the hardwood sector, Reps. Tom Tiffany (R-WI) and Annie Kuster (D-NH) have agreed to sponsor the Hardwood Entry Program (HAP) invoice for introduction within the Home. Though fiscal constraints will make it very troublesome to maneuver HAP as a part of the Farm Invoice, the laws will function a high-profile automobile to teach Congress on the advantages of hardwood merchandise, laying the groundwork for enactment in future years. Keep tuned for updates because the trade invoice strikes ahead.
Timber Innovation for Constructing Rural Communities Act – This bipartisan, bicameral invoice sponsored by Senator Ron Wyden (D-OR), Senator Mike Crapo (R-ID), and Reps. Andrea Salinas (D-OR), Kristina Glusenkamp Perez (DWA), and John Duarte (R-CA) could possibly be folded right into a last Farm Invoice. The proposal contains a number of optimistic provisions for the trade, together with establishing a USDA platform measuring, amassing, and sharing knowledge associated to the carbon advantages of wooden merchandise, and recognizing the worth of carbon discount and environmental advantages of wooden in constructing design and furnishings in USDA grant applications. By the federation’s work with the Forest within the Farm Invoice Coalition, a number of really useful adjustments have been integrated into the invoice language to make sure that hardwoods are eligible for the applications.
Jobs Within the Woods Act – This fall, Senate and Home members launched the bipartisan “Jobs within the Woods Act,” (H.R. 5344, S. 3063), a invoice that would supply schooling grants ranging in measurement from $500,000 to $2 million to advertise jobs within the understaffed timber trade and U.S. Forest Service. Legislative champions embrace Reps. Lori Chavez-Deremer (R-OR) and Gluesenkamp Perez (D-WA) on the Home facet, and Senators Angus King (I-ME) and James Risch (R-ID). The invoice’s champions are decided to fold this invoice into farm invoice reauthorization in 2024.
USDA Funding and Authorizations
Though not a part of farm invoice reauthorization, the Hardwood Federation additionally advocates for payments that straight fund USDA initiatives that may increase the sector in addition to steer company authorities towards trade priorities:
Selling Efficient Forest Administration Act of 2023 – On September 22, Senate Vitality and Pure Assets (SENR) Committee heads Chairman Joe Manchin (D-WV) and Rating Member John Barrasso (R-WY) launched the “Selling Efficient Forest Administration Act of 2023” (S.2867), a invoice to direct USDA’s Nationwide Forest Service to cut back wildfire dangers and create a profession pipeline for loggers.
Transportation
Transportation is one other main situation on which the Hardwood Federation has been lively. Notably, the trade helps payments, generally known as the “provide chain package deal,” handed out of the Home Transportation Committee earlier this yr. The package deal contains:
Licensing Particular person Business Examination-takers Now Safely and Effectively (LICENSE) Act of 2023 (H.R.3013) – Codifies two waivers issued in the course of the pandemic to make acquiring a industrial driver’s license extra streamlined and environment friendly.
Ocean Delivery Reform Implementation Act of 2023 (H.R. 1836) – Builds upon the Ocean Delivery Reform Act of 2022 by permitting the Federal Maritime Fee to evaluate complaints about market manipulation and anti-competitive operations of maritime exchanges.
H.R. 3372, laws that authorizes a pilot program whereby states could decide in to permitting 91,000-pound rigs geared up with a sixth axle to journey on their portion of the federal interstate freeway system.
H.R. 3318 establishes a ten p.c axle weight variance for dry bulk supplies, which we learn as together with wooden chips.
Taxes, Treasury Regs
Though advocacy on USDA applications and provide chain initiatives have been particularly lively this yr, tax coverage and enterprise disclosures proceed to current alternatives and challenges for the trade:
Enterprise Tax Bundle – On November 2, the federation joined the Nationwide Affiliation of Producers and allies in a letter to Capitol Hill urging motion on a package deal of enterprise tax profit extensions at the moment pending on the Home flooring. It might lengthen by means of 2025 the one hundred pc bonus depreciation profit, which started cutting down in 2023. It might additionally retroactively lengthen the analysis and growth tax credit score, which was phased out in 2022, and restore extra beneficiant curiosity deductibility provisions.
Foremost Avenue Tax Certainty Act of 2023 – The Hardwood Federation additionally helps H.R. 4721, making the 20 p.c deduction for certified enterprise revenue (QBI) everlasting to learn small companies. Company Transparency Act – The federation has joined allies within the small to medium-sized enterprise group to induce Congress to delay implementation of the Company Transparency Act (CTA), a little-known federal anti-corruption legislation enacted in 2021 that was set to take impact January 1, 2024. The legislation will impose a number of reporting necessities on “useful house owners” and set off fines of as much as $10,000 for non-compliance.
Federal Company Actions
EPA, Air High quality Guidelines – In November, the federation and U.S. Chamber of Commerce met with the White Home Workplace of Administration and Funds to induce the administration to reject EPA’s proposal to tighten requirements for fantastic Particulate Matter (PM 2.5). This follows up on formal feedback submitted advocating in opposition to EPA’s plans and referenced a research by the American Forest and Paper Affiliation displaying that EPA’s proposal would impose as much as $900 million in compliance prices on the wooden merchandise sector.
EPA, Low Carbon Building Supplies – In September, EPA introduced that it could make grants out there to events to develop Setting Product Declarations (EPDs) for low carbon building supplies, starting after October 1.
European Union (EU) Deforestation Laws – The American Hardwood Export Council (AHEC) and the federation have been main the cost to blunt the impacts of the EU’s now last deforestation guidelines to require geo-location of fiber included within the manufacture of wooden merchandise. The federation and AHEC have met with administration officers, together with a gathering with the U.S. Commerce Consultant, to induce a work-around to reduce extra crimson tape for hardwood exporters to EU markets. HF and AHEC have established a working group of forest trade allies to share data associated to the rule’s implementation.
Dana Lee Cole is the manager director on the Hardwood Federation, a Washington, D.C.-based hardwood trade commerce affiliation that represents 1000’s of hardwood companies in each state in the US and acts because the trade advocacy voice on Capitol Hill. She will be reached at dana.cole@hardwoodfederation.com.
