Text of the 1999 Virginia Legislature Chip Mill Study Bill

HOUSE JOINT RESOLUTION NO. 730

Establishing a joint subcommittee to study the impact of satellite chip mills on Virginia's economy and environment.

Agreed to by the House of Delegates, February 25, 1999
Agreed to by the Senate, February 23, 1999

WHEREAS, the forest resources of the Commonwealth are abundant, covering over 15 million acres, with over three-fourths of this land being owned by private landowners not connected with either government or the forest industry, whose individual goals and stewardship values have the greatest impact on the viability and health of Virginia's forest lands; and

WHEREAS, the forests of Virginia are invaluable assets and vital to its citizens because they provide timber and useful wood products and employment throughout all regions of the Commonwealth; filter air and water pollution; protect soil and water resources; provide fish and wildlife habitat, outdoor recreation and tourism opportunities; and support the general health and quality of life for present and future generations; and

WHEREAS, in 1991 the Department of Agriculture and Consumer Services predicted that "an increase in competition in the Southeast for low-grade hardwood resources and resulting inflated stumpage prices will inevitably make Virginia's forests more attractive and competitive," and "the abundance of hardwood inventory and excellent deep-water ports make Virginia a prime site for hardwood-chip export market development," providing additional economic incentives and management options to private landowners to continue to sustainably maintain this forest land base; and

WHEREAS, a number of forest products operations, referred to as satellite chip mills, are located in Virginia; and

WHEREAS, these mills have as their primary purpose the chipping of wood, with the resulting wood chips used in a multitude of such manufactured products as composite wood, paper and related products; and

WHEREAS, the Commonwealth has a vested interest in the manufacturing of value-added forest products; and

WHEREAS, data is insufficient to resolve current concerns over forest and natural resource policy issues, diverse economic and ecological values, differences in desired forest uses, and interpretations of scientific and factual information; now, therefore, be it

RESOLVED by the House of Delegates, the Senate concurring, That a joint subcommittee be established to study the impact of satellite chip mills on Virginia's economy and environment. The joint subcommittee shall be composed of 13 members, which shall include 6 legislative members and 7 nonlegislative citizens and ex officio members as follows: four members of the House of Delegates to be appointed by the Speaker of the House in accordance with the principles of Rule 16 of the Rules of the House of Delegates; two members of the Senate to be appointed by the Senate Committee on Privileges and Elections; two members representing the environmental community and two members representing the forest products industry, one of whom shall represent the solid wood industry and one of whom shall represent the pulp and paper industry to be appointed by the Speaker of the House; two members representing the private forest owners, one of whom shall represent the Virginia Farm Bureau to be appointed by the Senate Committee on Privileges and Elections; and the State Forester to serve ex officio. A legislative member shall serve as chairman of the joint subcommittee.

In conducting its study, the joint subcommittee shall examine the:

        1. Experiences in other states with the operation of satellite chip mills;

        2. Current and potential impacts of satellite chip mills on Virginia's economy, natural resources and environment;

        3. Potential impact on private forest landowners, including long-term profitability, the availability of markets and forest management options;

        4. Sustainability of Virginia's forest resources to accommodate current and potential satellite chip mill production, including methods to improve forest management by private landowners;

        5. Practical methods for assuring economic and environmental sustainability of the forest, including the need for adequate resources for the Department of Forestry and other government agencies charged with the conservation of Virginia's forest lands.

The direct costs of this study shall not exceed $12,000.

The Division of Legislative Services shall provide staff support for the study. Technical assistance shall be provided by the Department of Forestry and the Departments of Wood Science and Forestry of the College of Forestry and Wildlife Resources, at Virginia Polytechnic Institute and State University. All agencies of the Commonwealth shall provide assistance to the joint subcommittee, upon request.

The joint subcommittee shall complete its work in time to submit its findings and recommendations to the Governor and the 2001 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.