Committee Summary for Carbon Sequestration Programs Study Commission (10/22/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:02:35.040 - 9:01:16 AM	General Working Session	Unclear

Unclear: Chairman (Arie) Information Only00:02:35.040 - 9:01:16 AM; The chairman calls the meeting to order, thanks attendees despite bad weather, leads the Pledge of Allegiance, and has the clerk read the roll call. Attendees include Representatives Davis, Tierney, Wlette, Michael Phelps, Chris F, Eric Murphy, Matt Mayberry; Senator Roachford; Jennifer Ramsey; Patrick Hackley; Will Gwyn; Mark Brady; Commissioner Gorman. Charlie Le is excused.
Unclear: Chairman (Arie) Information Only00:04:03.599 - 9:02:44 AM; The chairman discusses approval of minutes from the September meeting. A correction is requested by Mr. Thomas Han regarding his affiliation with the Granite State Division of the Society of American Foresters. The correction clarifies that Han is a member of a subcommittee studying the timber yield tax and current use forest land tax assessment formula, aiming for fair and equitable forest land and timber taxation. He is not representing the division but offers detailed knowledge and potential presentation. The motion to amend and approve the minutes as amended passes unanimously.
Unclear: Chairman (Arie) Information Only00:06:42.000 - 9:05:23 AM; The chairman notes last-minute cancellations from scheduled speakers including Mr. Birdie, Mr. Lamir, American Forestry Foundation, and a landowner from New Hampshire's Coos County. He reads a letter from Ross Karen, a log buyer, forester, and landowner in Coos County with 28 years of experience. Karen opposes the sale of carbon credits due to 'leakage,' where removed products are replaced elsewhere, negating benefits. He favors diverse local markets, healthy forests, and stable supply chains over carbon sales.
Unclear: Aean Kelly, Landowner Representative for White Mountain Lumber, Coos County Oppose00:08:56.000 - 9:07:37 AM; Aean Kelly, representing White Mountain Lumber (a third-generation sawmill in Berlin, NH, operating since 1945) and speaking as a landowner in Coos County, provides testimony on behalf of landowners. He notes many landowners expressed interest but couldn't attend due to commitments, relying on trade groups. Kelly reports that numerous groups (town forests, conservation groups, forest managers, industrial owners) have been approached for carbon credits but mostly declined, not for economic reasons (offers equated to decades of traditional income) but because they conflict with New Hampshire's legacy of forest stewardship. He highlights declining forest industry jobs (less than 3% of state employment) and worsening economics for traditional harvesting, with booming alternative markets like carbon due to lack of regulation. Kelly urges action to level the playing field with traditional harvesting by imposing fiscal penalties on carbon activities to equalize with timber income, similar to the 1948 10% timber tax designed to offset lost property taxes and promote uniform statewide practices. He suggests including carbon in current use assessments by existing forest groups. During Q&A, Kelly elaborates on timber tax history: Established in 1948 to prevent clear-cutting driven by high property taxes on standing timber, assessed at harvest to offset town taxes, creating a statewide standard to avoid inconsistent local assessments leading to poor practices. He confirms towns subsidize landowners via lower property taxes until harvest. White Mountain Lumber owns ~2,000 acres; other landowners range from community forests (80-200 acres) to larger parcels. Discussions predate 2021 Connecticut headquarters issues by years. Kelly opposes long-term agreements (40-100 years) as they lock land without true sequestration if no harvest was planned, and multi-lifecycle terms harm local economies. He notes carbon incentivizes locking land, using municipal funds via higher taxes, and differs from timber harvesting by not supporting mills/jobs (citing 1:2.2 job multiplier). Carbon could fund better management for higher-value timber but inaction favors locking land over stewardship. Concerns include prioritizing stockholder ambitions over best practices, habitat, and knock-on effects like restricting ATVs or water access under future soil/water contracts.
Unclear: Committee Members (Various) Information Only00:13:25.839 - 9:12:06 AM; Committee members engage in extensive Q&A with Aean Kelly on timber tax history, landowner subsidies, project lengths (40 vs. 100 years), economic impacts, incentives for carbon vs. traditional forestry, conservation alternatives, and best practices. Key points include: No intent in 1948 to stop logging but to stabilize tax base; past legislation faced opposition for being premature or inconsistent with untaxed activities like hunting; carbon agreements prohibit harvesting unlike others; natural market forces already conserve via uneconomic harvesting; Coos County not at development risk; long agreements risk enforceability and economic ripple effects (e.g., job losses); potential for carbon to extend rotations for higher-value timber but needs policy to incentivize shorter/harvesting-inclusive deals over lockups.
Unclear: Chairman (Arie) Information Only00:46:47.359 - 9:45:28 AM; The chairman apologizes for few speakers due to cancellations, notes future hearings for landowners in carbon projects. He distributes and discusses a letter from Mark Kelly (president, Randolph Community Forest, >11,000 acres) supporting the committee. No new business raised except notifications and introductions (e.g., Matt Mayberry, CEO of NH Homebuilders Association). The chairman outlines a roadmap for future agendas, including DRRA, municipal association, tax implications, separating small/large landowners or by project length, potential field hearings, and a possible Zoom presentation by Charlie Le on carbon. Representative Wlette shares intent of his LSR legislation: Ensure proper forest management and animal habitat on carbon project properties without stopping or taxing carbon, respecting landowner rights. The next meeting is scheduled for November 18th at 10 AM. Motion to adjourn passes.