Green Building Design

HF is advocating for recognition of the environmental benefits of U.S. hardwoods and finished wood products in any Green Building legislation or administration policy. Current green building criteria remains difficult for the majority of the American hardwood industry, particularly given the limitations of certification schemes applied to private lands. To address the industry’s concerns:

·         HF worked with Congressional leaders Congressman Brad Ellsworth (D-IN) and Congressman Geoff Davis (R-KY) who introduced the “hardwood resolution”, H Res 81. This resolution recognizes the environmental benefits of U.S. hardwoods in green building criteria and serves as a clear message from Congress that hardwoods should be included in any legislation or federal program addressing green building.  

Status: H Res 81 passed the House on September 15^th, 2009.  Efforts are ongoing to introduce similar resolution in the Senate.  HF members will be contacted once a resolution is introduced to contact their Senator requesting they co-sponsor the Senate resolution and vote yes when it reaches the Senate floor.

·         HF worked with Congressman Ellsworth (D-IN) for the inclusion of a ‘hardwood’ amendment to the House-passed green schools bill HR 2187. The amendment (which passed on the House floor with only 7 votes opposing) assured that the green schools bill recognized the environmental benefits of using U.S. hardwoods in any green school construction, renovation, and rehabilitation, and requires reporting of the types of flooring used in federally assisted school construction projects, as well as whether renewable materials (such as wood) are used.  

Status: With the hardwood amendment passage on HR 2187, HF is working to include the same amendment to the Senate companion bill for green schools that resides in the Senate Health, Education, Labor, and Pensions Committee.  HF is currently working with our House sponsors for inclusion of a hardwood amendment in the Senate version.

Economic Stimulus

HF has been educating Members of Congress on the serious economic challenges this industry is facing.  We have supported proposals that would provide a boost to the hardwood industry in any economic stimulus or tax package. Specific proposals included incentives for renewable energy, tax credits for consumers to purchase hardwood products, and proposals that stimulate the housing industry. 

·         Homebuyer and Business Tax Credit: HF supported an extension of the homebuyer tax credit as a way to ease pressure on the housing market, which is hurting the hardwood industry.

Status:  Many concerns we raised on the financial condition of hardwood businesses were addressed in The Worker, Homeownership, and Business Assistance Act of 2009, signed by the President November 6^th.  This Act encompasses two important provisions for the hardwood industry:

1) Extension of the Homebuyer Credit: $8,000 for new home buyers, $6,500 for move-up buyers owning a home for 5 years, maximum incomes and home prices to qualify were raised significantly, and the credit is now available until June 2010.

 2) A net operating loss carryback for businesses losing money in 2008 and 2009: the Act expands the earlier American Recovery and Reinvestment Act of 2009 and is expected to recoup an estimated $5 billion in net operating losses for small businesses.

·      Furnishings and Building Products Credit: HF also supports the Home Improvements Revitalize the Economy Act of 2009 (the HIRE Act) sponsored by Rep. Johnson (D-GA) and Rep. Deal (R-GA) which would provide consumers and businesses tax deductions and credits to offer assistance to middle and low income families for the purchase of home furnishings and building products used to improve their homes.

Status: The HIRE Act has been introduced as HR 3382. Efforts are underway to gain more cosponsors for the bill, which is currently sitting in committee.

  rade/Competition

HF supports a level playing field in international trade and will aggressively counter unfair trade practices that put U.S. manufacturers at a competitive disadvantage. HF will continue to serve as a strong voice in Congress to keep the international competitiveness issues visible through the following initiatives: 

·         Illegal Logging Legislation:  With an unprecedented collective effort by the industry, environmental groups, and organized labor, the Lacey Act Amendment to address illegal logging was passed in the 2008 Farm Bill.  This new law addresses both the unfair advantage illegal operations have over companies that follow the rules, and the overall environmental crisis caused by illegal logging.  The Administration has released guidelines for implementation along with the timeline and product phase-in for the new declaration requirements.

Status:  Additional funding is needed to effectively implement the Lacey Act. The U.S. Senate Committee on Appropriations has been sent a request for additional funding for the Animal and Plant Health Inspection Service (APHIS) from the coalition as the Committee begins conferences on the Agriculture 2010 appropriations bill.  HF continues to work with the coalition and government agencies to ways of improving the implementation process.

·         APHIS export certification fee increase:  APHIS announced as final an increase in export certificate user fees taking effect October 1, 2009.  This rule increased the user fee for commercial exports from $50.00 to $77.00 in FY2010 with a subsequent increase raising the fee to $106.00 by FY2012.  At the urging of HF and NHLA, APHIS has agreed to reach out to foreign countries seeking their approval of the Kiln Drying process in lieu of a phytosanitary certificate, which would be a lower cost to most mills and the government.

Status: Some importing countries, particularly China and the EU, are reluctant to accept the NHLA Kiln Drying program. HF is seeking Congressional support to encourage the USDA to make this effort to gain acceptance from the importing countries a priority. Additionally, HF is meeting with APHIS officials to identify efficiencies in the export service to reduce cost to the hardwood industry.

·         International Trade Commission (ITC) Section 332:  The results of the ITC 332 study, “Wood Flooring and Hardwood Plywood: Competitive Conditions Affecting U.S. Industries,” requested by the Hardwood Federation was released in 2008. The report demonstrates the significant erosion of U.S. manufacturing market share in domestic markets with the advantage mainly focused on Chinese imports. During the rapid expansion of the U.S. market associated with the past housing boom, both U.S. hardwood plywood and hardwood flooring markets were constrained as imports took an increasing market share. Competitive pressure from illegal logging and unfair foreign subsidy programs demonstrably impacted these hardwood sectors.

Status/Next Step: HF is participating in a public-private collaboration under the US-China MOU hosted by the USTR. The objective of this steering committee is to bring together the industry and non-governmental organization stakeholders to work with USTR, focusing on the related issues of combating illegal logging and associated trade as well as promoting transparent markets for legally-harvested timber and products made with such timber. Don Finkell, President of Anderson Flooring, serves as the HF board representative on this committee. 

Energy Policy

The HF supports policies that most effectively lead to a broad definition for the type of resources that can be used in the commercialization of biomass as a renewable energy source and recognition of hardwood forests in any carbon sequestration/trading scheme. 

Climate/Renewable Energy:   The HF supports legislative language that supports the use of wood-based energy, particularly woody biomass.  The HF supports full recognition of the carbon storage attributes of hardwoods and hardwood products in any policy scheme aimed at the issue of climate change.  Particularly, HF advocates the recognition of long-term sequestration of carbon through conversion to finished hardwood products. These policies lead to increased value of secondary wood by-products and encourage continued investments in hardwoods.  The HF has not taken a position favoring or opposing the underlying concept of a cap-and-trade system for addressing climate change.

The House of Representatives passed HR2454, the American Clean Energy & Security Act of 2009 which includes the HF-supported definition of renewable biomass which is broad, covering almost all trees and plants on private lands and industry generated renewable energy in the definition.  Additionally, the House-passed bill gives the USDA rather than the EPA authority in developing and implementing the forestry and forest product related carbon offsets. 

The Senate Energy and Natural Resources committee passed S. 1462, the American Clean Energy Leadership Act of 2009 in June.  Senate Environment committee has not passed a climate bill.  Given other Congressional priorities action in the Senate (particularly on the contentious issue of climate change) is uncertain. HF concerns include the definition of renewable biomass and language for carbon offsets for forest products.

HF supports tax policy that improves the business conditions among members of the hardwood community.

·         On-site use of biomass (Sec.45): Current law states that in order to receive a tax credit for renewable energy produced, a company has to sell it to a third party. Two bills to expand the section 45 tax credit, HR 622 and S 870, would apply the credit to onsite renewable energy, such as the energy produced and used by some hardwood mills, with a credit of a penny for every kilowatt of energy produced and no requirement to sell to a third party.

Status: HF is part of a broad coalition to gain co-sponsors and ensure this legislation is passed. Additionally, HF supports amended language supporting the inclusion of thermal energy.

·         Estate Tax Reform:  HF strongly supports a repeal of this tax, however with the new Congress and Administration, a compromise is considered inevitable.  Senate Finance Chairman Max Baucus (D-MT) has a proposal to freeze the estate tax at 2009 levels rather than repeal it as is currently scheduled for 2010.  Under the new proposal, estate exemption levels of $3.5 million for individuals and $7 million for couples would be permanently extended.  Estates in excess of these amounts would be taxed at 45 percent.   President Obama supports a continuation of the estate tax.

Status: The Estate Tax business coalition members are educating members of Congress on the punitive nature of the tax on small businesses and families. If action is taken, it will have to be by the end of the year, and the coalition is watching progress. Some have suggested the “death tax” be implemented, but at a lower percentage, and that this be used to help offset health care costs. Even if it is not used in the healthcare bill, Senator Baucus has suggested it be implemented for one year at 45% as a revenue-raising tool. 

Truck Weights

Congressman Michaud (D-ME) and Congresswoman Schmidt (R-OH) have introduced HR 1799 to increase truck weight limits from 80,000 lbs to 97,000 lbs with the addition of a sixth axle.  An industry coalition HF is participating in is also seeking sponsors in the Senate for a companion bill. The Highway Reauthorization Bill expires September 30, 2009 and is the legislation to which HR 1799 will need to be attached. A measured increase in the maximum allowable weight of six-axle semi-trailers is an effective way to increase truck productivity, reduce transportation costs to the industry, and decrease fuel use and emissions. 

Status: HF is working with a broad industry coalition supporting passage of HR 1799 and introduction of a companion Senate bill.

Immigration Reform

HF supports immigration reform that creates an efficient system for employers, workers, and government agencies.

Future legislation considered should include the following: a guest worker program which will allow new workers to enter the U.S. legally when employers are unable to find U.S. workers to perform the job; a clearly defined process for allowing existing immigrant workers lacking adequate documentation to pay reasonable fines and apply for permanent residency; and continuity and expansion of H-1B and L-1 visas for professionals and highly valued workers.  Also, new immigration programs must refrain from unduly burdening employers with worker verification systems that are underfunded or unworkable.

Status: President Obama continues to promise immigration reform as one of his administration’s priorities although other issues, particularly health care, may make Congressional consideration of such a contentious issue virtually impossible until after the mid-term 2010 elections. 

Clean Water Act

HF supports current federal regulations and requirements under the Clean Water Act. The Clean Water Restoration Act (CWRA) introduced by Congressman Oberstar (D-MN) last year and Senator Feingold (D-WI) in this Congress (S 787) is opposed by the HF, however, because of the broad intrusive expansions of the Clean Water Act proposed under the legislation. The CWRA could increase litigation and costs for hardwood operations.  Additionally, increasing the jurisdiction of the 1972 Clean Water Act as proposed by the CWRA could lead to unprecedented federal control on lands undergoing timber harvests.

Status: S 787 is has been approved by the Senate Environment Committee and awaits Senate floor action. HF opposes Senate passage.