Officials warn U.S. Forest Service's shift toward revenue-positive projects may reduce biomass funding

State officials and industry representatives told the Colorado Forest Health Council's legislative committee on July 25 that recent signals from the U.S. Forest Service are pushing a shift toward projects that generate revenue or are revenue-neutral, potentially reducing funding for biomass-producing fuels-management work.

Mark Morgan, speaking for industry, said the situation is "so dynamic and so fluid" and that timber-sale programs and stewardship contracts that typically produce large volumes of biomass appear to be drying up. He warned this will reduce downstream revenue and could require the industry and local programs to pivot to self-funded or revenue-neutral approaches.

Christina, representing the Colorado State Forest Service, agreed and described broader federal discussions: "It's a 20 year, stewardship agreement with Montana," she said, and added that the U.S. Forest Service chief has been meeting with state foresters about such agreements. She told the committee Colorado is different from Montana and said staff are doing scenario planning and trying to diversify funding sources.

Members urged continued information-sharing and asked staff to delay a fuller set of presentations until there is more clarity at the federal level. The committee agreed to move the August 8 meeting to August 22 to give staff and partners more time to gather information and prepare.