1. Larry Arnett, Deputy Commissioner Department for Natural Resources Steve Kull, Assistant Director Division of Forestry Environmental Quality Commission Annual Meeting June 5, 2013 Division of Forestry Update

2. Morgan County Nursery

4. August 2012

5. January-March 2013

6. May 3, 2013 After a comprehensive review, Governor Steve Beshear has directed the Division of Forestry to rebuild the Morgan County Nursery after its destruction from a tornado in March of last year that also ravaged the town of West Liberty. “We will rebuild the nursery to improve the efficiency and cost effectiveness of the production and processing of the more than 3 million tree seedlings each year. The nursery is an important resource for our forest industry, mine and stream reclamation efforts, and land owners and it impacts the regional economy all around Morgan County.” May 3, 2013

7. Rebuilding a Nursery Schematic and Cost Estimate – May Design Development – June Submission for Review and Bidding – July & August Award Contract - September Permits and Construction – September thru January 2014 February 2014

8. Forestry in the Hole FY13$1.2 Million FY13 $1.2 Million FY14$1.3 Million FY14 $1.3 Million

11. Department for Natural Resources Division of Forestry - Director’s Office Administrative Services Branch Forest Resources Branch Fire Management Section Timber Harvest Compliance & FRU Section State Forest & Land Acquisition Section Stewardship & Education Branch Forest Inventory & Analysis Section Stewardship Section Education Section Field Operations Branch Northeast District Eastern District Southeast District Kentucky River District Bluegrass District Central District South Central District Green River District Western District Assistant Director John P. Rhody & Morgan County Nurseries John P. Rhody & Morgan County Nurseries

12. Department for Natural Resources Division of Forestry Director’s Office Reforestation and State Forest Branch Stewardship Branch Field Operations Branch Administrative Services Branch Fire Management Branch State Forest Section Morgan County Nursery John P. Rhody Nursery Forest Resources Section Southeast Region Northeast Region North Central Region Central Region West Region Effective 2/16/13

13. 154

14. http://uknowledge.uky.edu/forestry_report/1/

15. Forestry’s Impact The total economic impact of the forestry sector to the Commonwealth of Kentucky in 2012 was $9.992 billion. Direct revenue including income from the sector resulted in $6.357 billion with an additional $3.635 billion in indirect and induced contributions to Kentucky’s economy. Kentucky’s forest industries directly employed 24,262 and the sector was responsible for a total employment of 51,928 or 2.7 percent of Kentucky’s jobs and $1.25 billion in earned income in 2012. http://uknowledge.uky.edu/forestry_report/1/

16. Forestry’s Impact http://uknowledge.uky.edu/forestry_report/1/

17. Forestry’s Impact http://uknowledge.uky.edu/forestry_report/1/

18. Forestry’s Outlook http://uknowledge.uky.edu/forestry_report/1/ Forest data indicating declines in timber quality combined with stresses on our forest from weather and the continued presence of insect and disease problems indicate the need for improvement in forest management by the private sector. It is critical that Kentucky’s capacity to assist woodland owners and provide for long-term sustainability of forests and timber resources not be diminished. Other federal and state budget cuts also are affecting the capacity of the University of Kentucky, Department of Forestry that provides forestry research, teaching, and extension activities in support of forestry and the wood industry.

19. EQC Questions Are communities involved in or impacted by the issue(s)? 473,000 private landowners across the state directly manage 11 million of the state’s 12.4 million acres of forestland.

20. EQC Questions Kentucky Revised Statutes (KRS) 149.010, specifies the Division of Forestry “shall initiate such projects as will promote public appreciation of forest protection and of reforestation; encourage tree planting in general and on the public highways in particular; grow, collect and distribute seedlings;…” KRS 149.015 states, “There shall be established and maintained within the nursery or nurseries of the Energy and Environment Cabinet a section or sections for the propagation of blight- resistant chestnut tree seedlings. Such seedlings shall be distributed to the landowners and citizens of the Commonwealth at a reasonable cost and under and subject to such rules and regulations as may be established by the secretary for energy and environment.” What local, state or federal policy or Act is related to this issue(s)?

21. EQC Questions What direct role can EQC play in resolution or advancement of this issue(s)? The Commonwealth’s economy can grow along with its forests.