A REPORT ON THE ECONOMICS OF FOREST RESTORATION
IN THE SIERRA NEVADA
 
December 1998 revised February 2002
 
by Dominic Roques
Roques Wildland Resources
roqueswild@vdn.com
805 550 7915
and
Tom Gaman
East-West Forestry Associates
415 669 7100
 
tgaman@forestdata.com
 
or
www.forestdata.com/sierra.htm
 

Background.
 
This report was prepared for and funded by a California non-profit which wishes to remain anonymous on our website.  Recognizing the importance and timeliness of this information, that group has authorized its release or consideration by the various groups who may find it useful. The report consists of the enclosed report, attached tables, and a number of watershed maps, showing land ownership, use, urbanization, fire probability, and impacts of mapped roads on mapped riparian systems in the 26 major Sierra watershed.   The information herein is solely the responsibility and the work of its authors and does not reflect an agreement with the opinion, policy, or position of any organization.

Tables and maps not found can be supplied on request.
 
 
 


TABLE OF CONTENTS

ABSTRACT
 
ISSUES SUMMARY

Summary Report with Maps in PDF format

PART I.   FOREST RESTORATION NEEDS ASSESSMENT

    1. Introduction and Objectives
    2. Assessing Forest Restoration Needs in the Sierra Nevada
        The Spatial Analysis
            River Basins and Subregions
        Experimental Design
            Land Protection Status
            Urbanization & Human Settlement
          Road Impacted Waterways
          Fire Return Intervals
             Forests
          Restoration Goals

    3. Forest Restoration Needs
        Land Protection Status
        Vegetation
        Impacts of Urbanization, Roads, Fire Suppression  
        Forest Restoration needs

PART II.   ECONOMIC EFFECTS OF FOREST RESTORATION
 
    4. The Sierra Nevada Economy
        Overview of population, income, poverty, employment
        Resource vs. amenity-based ecomonies
 
    5. The Economic Enterprise of Forest Restoration
        Costs, Accumulating Benefits and Types of Activities

    6. Financing Forest Restoration
        Existing and New Sources of Funding
        Market Based Approaches

Tables

Table 2-1: Twenty-Six Primary River Basins of the Sierra Nevada>

Table 2-1: Twenty-Six Primary River Basins of the Sierra Nevada

Table 2-2: GIS Data Analysis Procedure

Table 2-3: Vegetation Classifications for Data Analysis and Map Displays (Holland, 1986)

Table 2-4: Residential Density Classifications

Table 3-1: Land Ownership in the Sierra Nevada

Table 3-2: Acres of Forests in Sierra Nevada River Basins

Table 3-3: Settled Forestland

Table 3-4: Percentage Cover on Two Land-use Types Associated with Human Settlement

Table 3-5: Decreases in Canopy Cover at Varying Lot Densities

Table 3-6: Forest Roads in Riparian Zones in Selected Hydrologic Sub-Areas

Table 3-7: Forest Roads in Riparian Areas by Land Protection Status

Table 3-8: Acres by Fire Return Interval less than 250 years

Table 3-9: Acres by Fire Return and Land Protection Status

Table 3-10: Acres by Fire Return and Dominant Forest Type

Table 3-11: Summary of Forest Restoration Needs in Sierra Nevada

Table 4-1: Projected Population Growth for Sierra Nevada Counties

Table 4-2: Poverty Rates in Sierra Nevada Timber Counties

Table 4-3: Small Business in the Sierra Nevada

Table 4-4: Travel and Tourism-related Employment in the Sierra Nevada

Table 4-5: Annual Ecosystem Use Values for the Sierra Nevada

Table 4-6: Annual Hydroelectric Production and Value for Sierra Nevada River Basins

Table 5-1: Estimated Costs of Fuels Treatments

Table 5-2: Estimated Costs of Roads Treatments

Table 5-3: Estimated Costs of Immediate Fuel Management Needs

Table 5-4: Estimated Costs of Addressing Impacts from Roads in Riparian Areas

Table 5-5: Wages for Selected Occupations in Natural Resources Management

Table 5-6: Average Socioeconomic and Community Capacity Scores by Region

Figures

Maps


PART I. FOREST RESTORATION NEEDS ASSESSMENT
 
 

1. INTRODUCTION AND OBJECTIVES
 

The principal goal of this study is to explore the economic implications of pursuing restoration of Sierra Nevada forests. A spatial analysis that identifies and quantifies areas likely to be candidates for restoration is required for the economic assessment to be founded on factual information about forest conditions throughout this highly varied landscape.
 

We have identified three primary stressors on forest ecosystems which have impacted Sierra Nevada forests to the point where restoration is needed. These stressors include: road-building in forest riparian environments, suppression of natural fire regimes, and human settlement. Fire suppression and roading in forests are significant stressors associated with timber harvesting, as is the removal of trees. The effects of tree removal on the structure and composition of forests are not directly addressed here because accurate and timely information is not available for the whole region. Information on the current management of forest lands is included however, and is used to infer where harvesting has occurred.
 

Forest restoration is the focus of this study and should be distinguished from the broader term Òwatershed restoration.Ó A broad range of impacts and needs affects entire watersheds in the Sierra Nevada. Watershed restoration emphasizes the linkage between upstream and downstream conditions in aquatic environments and must examine many issues not addressed by this more focused analysis of forest restoration.
 

The spatial analysis conducted for this study required the assembly of a Geographic Information System (GIS) constructed from digital files obtained through the Sierra Nevada Ecosystem Project (SNEP) and other sources. This information supports the first spatially-explicit estimates of regional forest restoration needs ever reported and will significantly advance conservation management, planning and research efforts underway throughout the region.
 

Using the spatial data, we examined the costs of forest restoration, potential sources of funding for restoration, and the potential for restoration to stimulate local economies. These issues are addressed in the context of key Sierra Nevada economic indicators. The indicators reveal a region in transition toward greater economic diversification. The quality of life in the region supports the trend toward diversity by attracting the social capital that supports enterprise. Forest restoration will be essential to preserving the quality of life in the region.
 

2. ASSESSING FOREST RESTORATION NEEDS
 

When we examine large landscapes with an eye toward solving environmental problems, the watershed presents itself as a uniquely valuable unit on which to base a wide array of analyses. The simple reason being that the impacts of human activity on the land flow downhill and inevitably become apparent in the quality of aquatic and riverine environments. The integrity of forest ecosystems is without question a fundamental determinant of watershed health, since forests buffer the effects of natural and human-caused disturbances, regulate water flow, and protect water quality. Large watershedsÑthe river basins of the Sierra NevadaÑare used here to report forest restoration needs in the Sierra Nevada.
 

Human culture has delineated boundaries across the landscape which reflect the values of early inhabitants and the social and political structure of contemporary society. Similarly, other terrestrial mammals have ranges and habitat often irrespective of watershed boundaries. From the ecological perspective the watershed is a compelling way to approach environmental understanding and protection. But it is critical that we recognize human communities as artifacts of ecology as well, and that we are careful not to ignore community boundaries based on a perceived ecological imperative. In promoting a river basin perspective on Sierran forest restoration, this report recognizes the link between forest protection and water quality and aquatic ecosystem health.
 

This section of the report describes the approach we took to develop a spatially explicit assessment of forest restoration needs in the Sierra Nevada. The experimental design shows what specific questions we asked, what data we used, and how we manipulated them. The goals of forest restoration as they relate to a regional analysis such as this are also discussed.
 

2.1 Discussion of Spatial Analysis
 

The spatial analysis phase of this project was designed to objectively identify forests in need of restoration and offer an alternative to the anecdotal, popular, and disparate views on regional forest restoration priorities. There is a recognized need to expand the information sources used for conservation management, planning, and research beyond site-level characteristics to provide a consistent means for placing localized information into regional and range-wide contexts (Jennings, 1997). This analysis yields findings which complement, rather than substitute for, local assessments for forest restoration.
 

A spatially explicit and partially complete environmental information system for the entire Sierra Nevada was assembled for the Sierra Nevada Ecosystem Project (SNEP). Our analysis benefited from the SNEP effort and observed the boundaries established by that project for the Sierra Nevada Ecoregion (SNEP, 1996).
 

We constructed a Geographic Information System (GIS) from digital files obtained through the Sierra Nevada Ecosystem Project (SNEP) and other sources. A river basin template was selected for organizing the GIS and reporting findings. Subregions were further defined to group river basin findings. These subregions reflect both the natural and social character of different parts of the Sierra Nevada.
 

The principal management activities which impact forest ecosystems, include timber harvesting, fire suppression, road construction, and residential development. Our purpose was to identify the location and character of forests altered by these activities. The experimental design for characterizing these forests is based on the availability of range-wide data produced by SNEP scientists and other researchers. For example, forest areas in need of restoration from grazing impacts are not identified in this study, since no system-wide assessment of forest grazing effects has been performed. This analysis does not seek to identify areas to be targeted for protection, as does GAP analysis, but rather to describe forests that can be enhanced or preserved through active restoration.
 

Map: River Basins of the Sierra Nevada
 

2.1.1 River Basins and Hydrologic Subareas
 

The river basins we selected for analysis were derived from Hydrologic Areas and Hydrologic Sub-Areas in the CalWater classification system currently in use by public resource agencies (Map 1). CalWater is a set of standardized watershed boundaries, nested into larger previously standardized watersheds, meeting standardized delineation criteria (Brandow, 1994). Along the western side of the Pacific Crest, the river basins of the Sierra Nevada form the headwaters of the Sacramento-San Joaquin River Delta. South of the San Joaquin Basin, Sierran rivers feed the Tulare Lake Hydrologic Region which is an enclosed basin. The North and South Lahontan Hydrologic Regions drain the east side of the Sierra Nevada into extensive internally drained valleys in California and Nevada.
 

Only portions of the basins within the Sierra Nevada Ecoregion (SNEP, 1996) and within California are considered in this report. Several basins on the east side, including the Tahoe Basin are truncated by the State line. Hydrologic Sub Areas (HSAs), identified on maps with a five-digit number, are subwatersheds within each river basin, and are used to more precisely characterize restoration needs within a river basin.
 

The twenty six primary river basins of the Sierra Nevada, broken into five subregions in this report, range in size from 274,344 to 1,751,590 acres (Table 2-1). Eighteen Sierra counties intersect these river basins as illustrated in Map 2.
 

2.1.2 Subregions
 

Subregions were delineated based in part on the diverse natural character of the Sierra Nevada as well as on cultural features which give even greater distinction to more and less populated areas.
 

North

The North includes five river basins belonging to the Feather (North Fork, East Branch North Fork, Middle Fork), Sacramento (Mill, Big Chico, and Butte Creeks), and Susan (Honey and Eagle Lakes) Rivers. Lassen, Plumas and portions of Tehama and Butte Counties are located in this heavily forested region of the Sierra Nevada.
 

North Central

The North Central subregion includes the Yuba, Bear, American, and Consumnes River Basins west of the Pacific Crest, and the Truckee River and Lake Tahoe Basins on the east side. The Bear and North Fork American Rivers are combined in this analysis. Sierra, Nevada, Placer, El Dorado Counties, and a portion of Yuba County comprise the political landscape of the North Central Region. Heavily populated (more than 70% of all Sierra Residents) and possessing world renown rivers and lakes, this subregion experiences the greatest forest stress.
 

Map 2: Counties and River Basins of the Sierra Nevada
 
 
 
 

Table 2-1: Twenty-Six Primary River Basins of the Sierra Nevada
 

SUBREGION ACRES
NORTH
Mill-Big Chico-Butte Creeks 658,454
North Fork Feather 783,417
East Branch North Fork Feather 656,980
Middle Fork Feather 871,789
Honey-Eagle Lakes 1,422,459
4,393,100
NORTH CENTRAL
Yuba 842,731
North Fork American-Bear River 928,961
South Fork American-Consumnes 946,790
Truckee 274,344
Lake Tahoe Basin (CA only) 325,337
3,318,164
SOUTH CENTRAL
Mokelumne 506,179
Stanislaus-Calaveras 873,314
Tuolumne 1,055,720
Merced 699,089
3,134,301
SOUTH
Chowchilla-Fresno 597,713
San Joaquin 1,098,744
Kings 1,159,038
Kaweah 552,532
Tule 639,779
Kern 1,751,590
5,799,396
EAST SIDE
Carson 290,058
Walker 584,272
Mono Basin 430,589
Crowley Lake 1,188,401
Owens Lake 876,319
Mojave 609,566
3,979,206
 
TOTAL ALL RIVER BASINS 20,624,166
Source: CalWater, Version 2.0.
 

South Central

The South Central Subregion comprises the Mokelumne, Calaveras, Stanislaus, Tuolumne and Merced River Basins. Amador, Calaveras, Tuolumne, and Mariposa Counties are located in this subregion. While not as populated as the North Central Subregion, many of the same impacts to forests are found here, but more than a quarter of the subregion is protected in Yosemite National Park.
 

Southwestern

The largest subregion, Southwestern comprises six river basins, including the Chowchilla and Fresno, San Joaquin, Kings, Kaweah, Tule, and Kern. This rugged, more arid subregion is less forested and less populated than other west slope subregions. A significant portion of the subregion is in the Sequoia-Kings Canyon National Parks and adjacent wilderness areas.
 

East

Dropping abruptly from the Pacific Crest to the valleys of the Eastern Sierra, the East Subregion includes the California portions of the Carson River, Walker River, and Mono Basins, and all of the Crowley Lake, Owens Lake, and Mojave Basin. Alpine, Mono, Inyo and portions of Kern Counties constitute the political landscape of this subregion. Sparsely forested but possessing superlative alpine landscapes, the East Subregion confronts fewer pressures on its forests than the forests of other subregions.
 

2.2 Experimental Design and Data Quality
 

Table 2-2 describes the GIS data analysis procedure followed for this report. It identifies the function of data, the specific digital coverages used, how we manipulated or treated the data, the key map products, and the tabular data prepared by analyzing the digital coverages. Throughout this procedure we followed the conventions of GIS development and were constrained by the analytical flexibly inherent in ARCInfo and ARCView software for PC.
 

Table 2-2: GIS Data Analysis Procedure
 
data Function digital Coverage Treatment of data MAPS TABLES
Select forest areas At-Risk to management with Sierra Nevada 1. Land Mgmt/Ownership (Davis, Stoms, 1996); 

2. GAP Vegetation (Holland, 1986) 

3. Calveg (Parker, Mathias, 1977) 

4. SNEP Boundary  

5. CalWater Version 2 (CDF) 

6. USGS 7.5 min. Topo Index (USGS, 1993)

7. Maintain original 5 Land Mgmt/Ownership classes 

8. Aggregate forest veg into forest types for map (further aggregated into 6 classes for data analysis) 

9. Remove all large bodies of water using CALVEG water layer.  

10. Make consistent with SNEP boundary 

11. Select, modify, superimpose Hydrologic Sub Area (HSA) and River Basin boundaries 

12. Overlay USGS 7.5 minute topo index

River Basins; Land Protection Status; 

Forest Vegetation

Acres in each river basin; 

Acres in Land Protection Classes; 

Acres in Forests by basin

 
HUMAN SETTLEMENT
 
Evaluate forests affected by human settlement 1. Residential Density, 1990 (Duane, 1996) 

2. Forest Type

1. Reclassify by original 11 density classes (0 to >640- units/sq. mi) 

2. Select polygons for higher densities (20 to >640 units/sq. mi.) 

3. Intersect with forest types  

4. Assign coefficients for density, based on forest type (McBride, et al, 1996)

Residential Density, 1990 (acres/dwelling unit) Acres of forest type affected by human settlement 

(canopy loss)

 
ROAD-IMPACTED WATERWAYS
 
Identify riparian areas potentially affected by roads 1. Streams (USGS, 1993) 

2. Rivers (USGS, 1993) 

3. Lakes (USFS, 1:24K) 

4. Roads (USGS, 1993) 

5. CalWater Version 2 (CDF) 

6. Forest Type (Holland, 1986) 

7. Land Protection Status (Davis, Stoms, 1996)

8. Fix waterways buffer at 46 m (150 ft) 

9. Overlay roads onto buffered waterways 

10. Calculate road and lengths where adjacency occurs 

11. Overlay HSAs  

12. Overlay land protection status 

13. Overlay Forest Type

Roads within 150 feet of Waterways Miles of Road in Riparian Areas; Land Protection Status of Miles of Road affecting Riparian Areas; Forest type and Road effects.
 
FIRE SUPPRESSION
 
Identify candidate areas for high priority fuel management 1. Fire Return Intervals (Sapsis, et al, 1996) 

2. Forest Type (Holland) 

3. Land Protection Status (Davis, Stoms, 1996) 

4. CalWater Version 2 (CDF)

5. Overlay with Land Protection Status 

6. Overlay with Forest Vegetation 

7. Conduct analysis only for FRI 1-100 and 100-250 years in Basins and HSAs

Fire Return Interval Acres in FRI 1-100 and 100-250; FRI acres in dominant forest types; FRI acres by Land Protection Status
 
FOREST ASSETS
 
Identify where assets occur relative to restoration needs 1. LS/OG (Franklin, Fites-Kaufmann, 1996) 

2. Ecologically Significant Areas (Millar, et al, 1996) 

3. Sequoia groves (SNEP; USFS) 

4. CalWater Version 2 (CDF)

Giant Sequoia Groves; 

LS/OG ; 

Significant Natural Areas

 

2.2.1 Land Protection Status and Vegetation Base Coverages
 

Land Management And Ownership

Land management and ownership for the Sierra Nevada were described in SNEP based on work completed by Frank Davis and David Stoms in a collaboration between SNEP and the National Biological Service Gap Analysis Project (NBS GAP). Their classification is available for 73 percent of the SNEP core area. The databases used in the SNEP/NBS GAP analysis comprise the most spatially detailed land management maps ever assembled for the region as a whole (Davis, Frank W., Stoms, David M., 1996). These data were not modified for this report. Areas described in this report which are not covered by the Davis and Stoms analysis were assigned classifications based on land ownership which provides a more coarse description of management activity. Those areas with less detailed management information include the Mill/Big Chico/Butte Creeks Basin, a portion of the North Fork Feather River Basin, the Honey-Eagle Lakes Basin, and almost the entire East side below the Carson River Basin.
 

Vegetation in the Sierra Nevada Ecoregion

Vegetation types for the Sierra Nevada Ecoregion are derived from Holland (1986) which classifies vegetation based on overstory described by one to three species, each contributing more than 20% of the relative canopy. These species are classified into natural plant community types used by the California Department of Fish and Game, Natural Heritage Division. We aggregated Holland forest vegetation to simplify map displays and data analysis. We used greater detail (less aggregation) for the maps than for data analysis (Table 2-3). Vegetation maps are not included in this report because of budget limitations.
 

Vegetation for areas outside of the Sierra Nevada Ecoregion was derived from Calveg (Parker and Mathias, 1977) as provided in a current CDF digital file. We made some assumptions in translating the Calveg types into the Holland types, but we do not expect these assumptions to appreciably affect the results of our analysis.
 

2.2.2 Human Settlement Data
 

These data are 1990 census-based and are for residences onlyÑcommercial and industrial uses would increase the developed area significantly. Thus, the map provides a proxy for where urbanization is occurring in the Sierra Nevada. Housing density was calculated by dividing 100% housing count by the land area of the census blocks. We eliminated the low density classes (<20 dwelling units/square mile). The majority (89%) of housing throughout the Sierra Nevada occurs in densities of 20 units/square mile and greater (Duane, 1996). We chose a threshold value of 1du/32ac to distinguish wildlands from urban-intermix areas. Thus, the five classes used in this report represent only the densities found in urban and urban-intermix areas (Table 2-4). To our knowledge, the forest impacts of areas developed at lower densities have not been quantified by previous authors and are therefore not addressed in this report.
 

Densities are accurate to within 1,000 square meters. Census block boundaries should be within 51 meters of their actual position. Individual census blocks are aggregated into five classes starting with 20-40 dwelling units/square mile and ending with over 640 du/sq.mi. Errors are likely to exist in the largest and most heterogeneous census blocks. This is because census blocks are not evenly distributed across the region. For example, one census block may include areas with two very different densities, yet they are averaged across the block. The occurrence of these errors is low and most census block boundaries should contain relatively homogeneous units (Duane, 1996).
 

Table 2-3: Vegetation Classifications for Data Analysis and Map Displays (Holland, 1986)
 

Vegetation Categories for Data Analysis Vegetation Categories for Map
Oak Woodland Oak Woodland
Oregon Oak Woodland Oregon Oak Woodland
Black Oak Woodland Black Oak Woodland
Valley Oak Woodland Valley Oak Woodland
Blue Oak Woodland Blue Oak Woodland
Interior Live Oak Woodland Interior Live Oak Woodland
Broadleaf Forest Broad Leaf Forest
Canyon Live Oak Forest Canyon Live Oak Forest
Interior Live Oak Forest Interior Live Oak Forest
Black Oak Forest Black Oak Forest
Tan-Oak Forest Tan-Oak Forest
Aspen Forest Aspen Forest
Mixed Conifer Mixed Conifer
Ultramafic Mixed Coniferous Forest Ultramafic Mixed Coniferous Forest
Sierran Mixed Coniferous Forest Sierran Mixed Coniferous Forest
Lower Cismontane Mixed Conifer-Oak Forest Lower Cismontane Mixed Conifer-Oak Forest
Upper Cismontane Mixed Conifer-Oak Forest Upper Cismontane Mixed Conifer-Oak Forest
Westside Ponderosa Pine Conifer Woodland
Westside Ponderosa Pine Forest Open Foothill Pine Woodland
Serpentine Foothill Pine-Chaparral Woodland
Conifer Woodland Non-Serpentine Foothill Pine Woodland
Open Foothill Pine Woodland Foothill Pine-Oak Woodland
Serpentine Foothill Pine-Chaparral Woodland Juniper-Oak Cismontane Woodland
Non-Serpentine Foothill Pine Woodland Pinyon Pine-Oak Woodland
Foothill Pine-Oak Woodland Cismontane Juniper Woodland
Juniper-Oak Cismontane Woodland Oak-Pinyon Woodland
Pinyon Pine-Oak Woodland Northern Juniper Woodland
Cismontane Juniper Woodland Great Basin Pinyon-Juniper Woodland
Oak-Pinyon Woodland Great Basin Pinyon Woodland
Northern Juniper Woodland Great Basin Juniper Woodland and Scrub
Great Basin Pinyon-Juniper Woodland Mojavean Pinyon and Juniper Woodland
Great Basin Pinyon Woodland Mojavean Pinyon Woodland
Great Basin Juniper Woodland and Scrub Mojavean Juniper Woodland and Scrub
Mojavean Pinyon and Juniper Woodland
Mojavean Pinyon Woodland Ponderosa Pine
Mojavean Juniper Woodland and Scrub Eastside Ponderosa Pine Forest
Westside Ponderosa Pine Forest
Conifer
Knobcone Pine Forest Lodgepole Pine
Eastside Ponderosa Pine Forest Lodgepole Pine Forest
Sierran White Fir Forest
Big Tree Forest Jeffrey Pine
Modoc White Fir Forest Jeffrey Pine Forest
Jeffrey Pine Forest
Red Fir-Western White Pine Forest Jeffrey/Fir
Jeffrey Pine-Fir Forest Jeffrey Pine-Fir Forest
Red Fir Forest
Lodgepole Pine Forest White Fir
Whitebark Pine-Mountain Hemlock Forest Sierran White Fir Forest
Whitebark Pine-Lodgepole Pine Forest
Foxtail Pine Forest Red Fir
Bristlecone Pine Forest Red Fir Forest
Whitebark Pine Forest
Limber Pine Forest Red Fir/White Pine
Red Fir-Western White Pine Forest
Knobcone Pine
Knobcone Pine Forest
Big Tree
Big Tree Forest
Whitebark Pine Group 
Whitebark Pine-Mountain Hemlock Forest
Whitebark Pine-Lodgepole Pine Forest 
Whitebark Pine Forest
Foxtail/Bristlecone/Limber Pine
Foxtail Pine Forest
Bristlecone Pine Forest
Limber Pine Forest
 
 
 

Table 2-4: Residential Density Classifications
 

Density in sq. miles >> equivalent to >> Density in acres
20-40 du/sq.mi. (32 ac/du -16 ac/du)
40-80 du/sq.mi. (16 ac/du -8 ac/du)
80-160 du/sq.mi. (8 ac/du -4 ac/du)
160-640 du/sq.mi. (4 ac/du -1 ac/du)
>640 du/sq.mi. (<1 ac/du)
 

2.2.3 Road-Impacted Waterway Data
 

These data were derived from United States Geological Survey (USGS) 100,000 Scale Digital Line Graph (transportation and hydrology) data available from USGS, Menlo Park. The roads were subdivided into groups based on their DLG road labels (USGS, 1993).

· Major Highways: Interstate highways, U.S. Routes, State Routes, County Routes

· Primary and Secondary Routes: (undivided, divided by centerline, divided lanes separated, one way other than divided highway, and class 3 roads and streets)

· Undifferentiated Forest Roads: Class 4 roads and streets; Four-Wheel-Drive Trails.
 

We converted all the roads data to Albers projection and overlaid them onto the SNEP River Basin map and the Hydrologic Sub Areas (HSAs). Then we created a spatial buffer of 150 feet (46 meters) each side of the centerline of a lake, creek or river and analyzed them to determine which roads entered the riparian buffers. This analysis was then overlaid onto forest vegetation in the Sierra Nevada to examine the extent of the problem in forested areas only.
 

The resulting map indexes the possible extent of damage to forest riparian areas caused by roads. Where there is a high density of riparian intrusion by roads, we would expect a smaller network of skid trails to occur on lands managed for timber harvest, as well as Òghost roadsÓ known to exist but not on maps.
 

2.2.4 Data on Fire Return Intervals for Large Fires
 

These data show the expected annual frequency of large (300+ acres) fires on a grid of 10-acre cells as determined by Sapsis and others (1996) for the SNEP report. The areas depicted in the two classes with highest return frequency (1-100 years and 100-250 years) are areas that would be high priority candidates for the reintroduction of fire and other fuel management efforts.
 

The primary data from which these maps were derived are fire history records (39,986 fire records from the period 1981-93). They describe ignition history ratio of large fires to ignitions, and estimates of mean fire size within nine strata. Strata are based on life form (grass, brush, timber, red fir), National Weather Service fire weather zones, and population density class. The resulting fire data and map:

Òare perhaps more reliable for describing current and near term future risk. ...a paucity of fire incidence over substantial areas in the data period could translate into unreasonably low fire frequency estimates for these areas. One should assume that actual fire frequency in areas where fires were scarce in the data period may be higher than the map indicates...We are confident that the relative frequency and regional trends evinced by the map are a reflection of actual likelihood of large fire, and are hence useful information in interpreting risk across the study area.

--Sapsis, et al, 1996.
 

2.2.5 Data on Forest Assets
 

The Sierra Nevada Ecosystem Project was charged with identifying specific high value attributes of Sierra Nevada forests. Teams of scientists were assembled to provide assessments of Late Successional/Old Growth (LS/OG) forests, Giant Sequoia groves, and Ecologically Significant Natural Areas. The assessments were compiled as digital coverages and associated data bases for these important and rare forest features. We secured the digital information on these three types of forest assets from the Alexandria Web Site which serves as a clearinghouse for SNEP data. The maps we produced represent no manipulation of source data other than to overlay our hydrologic boundaries onto the original coverages.
 

2.3 Forest Restoration Goals
 

This assessment of forest restoration needs identifies impacts to Sierra Nevada forests that can be reasonably approached through local restoration strategies. These strategies could include road repair or obliteration, thinning of forests to permit the safe reintroduction of fire, and using fuel management techniques in settled areas that offer maximum protection of biodiversity. An assessment of restoration needs at the scale of actual interventions requires space- and time-specific restoration goals. For example, restoring the role of fire in a 500-acre catchment requires that actual fuel loads be determined, and that the natural fire return interval for that catchment be understood and targeted in pre-treatments (e.g. thinning from below), prescribed burns, and managed wildfires. Similarly, to restore the complexity and diversity of riparian habitat impacted by a forest road, the specific stream flows, needed to erode banks and deposit point bars which in turn permit lateral migration of meandering channels, would need to be estimated and provided. And finally, where the goal of restoring the forest to its condition prior to the arrival of European-American settlers may be appropriate in certain locations, such a target state is no longer feasible in a west slope forest with an extensive human community. From these examples it is clear that both spatial and temporal scales of a finer grain than possible in this regional analysis determine the range of actual treatments.
 

The assessment of forest restoration needs for the entire 20 million acres and 26 major river basins of the Sierra Nevada ecosystem requires that restoration goals be more general. At the regional scale, we define restoration as Òcoordinated actions designed to return an impacted ecosystem to a prior, more natural target stateÓ (Hrubes, 1997), and leave to those who implement restoration at the local scale, the designation of the specific target state and the natural processes to emphasize (e.g. burning, reducing ground fuels, natural pathogens). Restoration needs at the regional scale are then stated more generally in terms of location and quantity of acres of forest or miles of stream that require finer level analysis before specific treatments are selected. This regional analysis serves to focus the work of developing those specific strategies on the areas that need it most.
 

3. FOREST RESTORATION NEEDS BY RIVER BASIN
 

The following analysis of forest restoration needs in the Sierra Nevada specifically examines the effects of human settlement, roads located in riparian areas, and fire suppression. In each case we quantify the area affected based on information available for the whole region. The structure and forests in the Sierra Nevada have been altered by these activities as well as a broad range of other activities from timber harvesting to intensive recreation. The data presented here are therefore not a full accounting of forest impacts in the region. They do however represent the principal problem areas that can reasonably be addressed through the work of forest restoration, and in that sense can be taken as a basis for both prioritizing and for estimating the costs of this work.
 

3.1 Land Protection Status
 

Approximately 65 percent of the Sierra Nevada is under public ownership. The USDA Forest Service alone manages 42 percent of the entire Sierra Nevada ecosystem (Table 3-1). The type of management within each one of these ownerships determines to a great extent the condition of the forests and watersheds in the region. For example, the Bureau of Land Management and USDA Forest Service manage for a variety of uses that range from full wilderness protection to timber production and the condition of these lands reflect this.
 

Table 3-1: Land Ownership in the Sierra Nevada
 

LAND OWNERSHIP ACRES PERCENT OF TOTAL
Private 6,705,506 33%
State 190,594 1%
USDA Forest Service 8,672,735 42%
Bureau of Land Management 2,242,491 11%
National Park Service 1,644,225 8%
Other Public 521,208 3
Lakes 453,105 2%
Source: USDA, USFS.
 

Land Protection Status provides a more meaningful description of land management than simple land ownership can convey. Each class of Land Protection Status profiles both ownership and management and provides a crude measure of risk of development or resource over-exploitation (Davis and Stoms, 1996). Classes distinguish land based on permitted use and assume that the most pervasive land uses affecting the status and trends of terrestrial biodiversity in the Sierra Nevada are grazing, fire suppression, timber harvest, and urban, residential, and agricultural development. The existing management affecting forests of the Sierra Nevada ultimately dictates the options available for forest restoration. For example, restoration on private unprotected forest lands will likely require some mix of incentives and education to promote voluntary action by landowners, whereas restoration on public lands will require in some cases a shift in policy or an augmentation of funds to undertake it, or both.
 

The pattern of protection and ownership mirrors topography somewhat, with greater levels of protection and federal ownership at higher elevation, grading into more vulnerable unprotected private lands at lower elevation (Maps 3a-3e). Central and southern portions of the range have more protected lands than the north. Forests of the Yuba, Truckee, and North Fork American River Basins have a more complex arrangement of protection status, in part due to the checkerboard of public and private lands that remain as a legacy of the disposition of federal lands to transcontinental railroads (Map 4).
 

The five Land Protection Status classes are as follows (Davis and Stoms, 1996):

Class 1 Full Protection

Public or private land formally designated for conservation of native biodiversity and within which timber harvests are precluded. Natural disturbance events are generally allowed to proceed without interference or are mimicked through management. The areas may include national parks, national monuments, ungrazed lands within USDA Forest Service wilderness areas, research natural areas, and wild and scenic rivers, Blue Ridge National Wildlife Refuge, The Nature Conservancy preserves, and state parks and ecological reserves.

Class 2 Mostly Protected--no grazing

National forest land that is generally managed for its natural values but is not formally designated for conservation of native biodiversity. Development and grazing are excluded, and timber harvest is generally excluded because it conflicts with other multiple-use objectives. Wildfires are generally suppressed. The distribution of recreational activities on Class 2 lands is unknown, but a small fraction of the land is developed for recreational facilities.

Class 3 Mostly Protected--some grazing

Public land that is generally managed for its natural values, is treated in existing management plans as unsuitable for timber harvest, and may be grazed. Wildfires may be actively suppressed. Examples include grazing allotments within USFS wilderness areas, grazing allotments on national forest lands classified as unsuitable for timber harvest, the San Joaquin Experimental Range, Bureau of Land Management (BLM) areas of critical environmental concern, and BLM wilderness areas.

Class 4 Other Public Lands

Public lands not included in Classes 1-3, mainly multiple use federal lands managed by the Bureau of Indian Affairs (BIA), Bureau of Reclamation, BLM, and USFS. National forest lands in this category include areas that are classified in existing plans as suitable for timber harvest. These USFS areas can also be within existing grazing allotments. Wildfires are actively suppressed.
 
 

Class 5 Private and Unprotected

Private lands other than those in Class 1. In the absence of more detailed zoning data, we assume that these lands are potentially available for development, timber harvest, and grazing and that wildfires are actively suppressed.
 

3.2 Forest Vegetation
 

Regional forest vegetation maps convey an incomplete picture of a regionÕs forest in that they do not describe the actual ground covered by trees. Anyone who has visited the Sierra Nevada is aware of the great variability in tree density there. Maps assign a forest type to a vast landscape which may actually be treeless in areas up to several acres in size. This is an essential fact to consider when forest vegetation maps are used to quantify the extent of a problem such as the need for forest restoration.
 

The six forest types used in this report include: west-side ponderosa pine, mixed conifer, conifer woodland, other conifers, broadleaf forests, and oak woodlands (see section 2.2.1 for complete descriptions of forest types). Their distribution is shown in Table 3-2.
 

Table 3-2: Acres of Forests in Sierra Nevada River Basins
 

Westside Ponderosa Pine Other Conifer Broadleaf Forest Oak Woodland Mixed Conifer Conifer Woodland TOTAL Forest Vegetation
 
ACRES 1,000s ACRES
 
North Mill/Big Chico/Butte Creek 0 0 0 219,538 313,613 2,359 536
No. Fork Feather 47,351 94,160 22,468 11,465 457,767 11,581 645
E. Br. No.Fk.Feather 48,005 235,059 935 3,074 230,309 7,238 525
Middle Fork Feather 57,769 297,888 25,801 940 232,351 13,782 629
Honey-Eagle Lake 686 187,074 0 12,980 213,661 93,515 508
North Central Yuba 37,012 175,416 74,578 35,254 369,143 35,039 726
Bear River/ North Fork American 76,199 115,570 114,616 46,140 330,626 93,817 777
S.Fork American/Consumnes 190,236 115,466 39,898 64,583 259,910 109,669 780
Truckee 0 208,909 0 2,145 2,356 3,182 217
Lake Tahoe Basin  0 110,290 11 0 4,940 907 116
South Central Mokelumne 109,907 130,821 45,699 18,667 104,882 19,912 430
Stanislaus/Calaveras 89,515 202,055 27,965 103,886 169,879 131,172 724
Tuolumne 118,102 278,163 56,189 84,306 118,617 85,461 741
Merced 46,449 209,795 74,685 49,921 87,563 38,072 506
Southwest Chowchilla-Fresno 13,921 0 86,101 260,224 51,669 81,244 493
San Joaquin 95,802 384,598 39,539 65,530 167,974 65,252 819
Kings 60,418 380,831 48,754 159,754 128,130 46,240 824
Kaweah 21,446 81,261 48,712 243,845 69,972 560 466
Tule 27,820 36,256 32,391 338,256 66,301 27,664 529
Kern 75,548 483,344 33,194 110,519 121,613 443,526 1,268
East Carson 0 181,030 2,188 0 447 38,055 222
Walker 0 90,069 645 0 55,497 231,417 378
Mono Basin 0 45,731 560 0 15,136 84,922 146
Crowley Lake 0 201,885 3,307 0 1,602 237,789 445
Owens Lake 0 54,286 0 0 0 101,290 156
Mojave 0 8,405 1,883 11,197 4,735 185,505 212
13,815
Source: GAP Veg and UCB FTP site, based on Holland (1996), and Calveg, provided by CDF, based on Mathias, Parker (1977).

Note: See Section 2.2.1 for definition of forest types.
 

3.3 Impacts on Sierra Nevada Forests
 

3.3.1 Human Settlement
 

Human settlement in forest ecosystems results in a variety of effects on wildlife habitat, hydrology and fire behavior. In Sierra Nevada forests human settlement has resulted in a decrease in crown canopy cover, a reduction in tree density, and an introduction of exotic tree species (McBride, Russell, and Kloss, 1996). The decrease in crown canopy cover is examined here to infer effects on fire hazard, hydrology, and wildlife habitat value that could be addressed through forest restoration.
 

Human settlement affects fire protection costs and losses by changing fire risk, fire hazard, and exposure of high value forest assets. For example, increases in population, automobile traffic, and recreation come with increases in the frequency of human-caused fires. Also, settlement changes vegetation, in turn changing the behavior of fire. For example, ladder fuelsÑsmall trees and brush which carry fire into the canopyÑare often eliminated, lots are thinned to improve access and views, and large, woody ground fuels are removed in higher use areas. Added roads can improve access for fire suppression resources, but they can also host more roadside fires.
 

Higher density settlements increase fire ignition frequency. Regression analysis of ignition frequency and population by the California Department of Forestry and Fire Protection Fire and Resources Assessment Program (CDF FRAP) found a 189% increase in annual fire starts per thousand acres when residential densities went from 50-acre parcels to one-acre parcels (FRAP Website, 1998). Conversely, most fire behavior theory predicts an increase in fire hazard with increasing crown canopy cover. Thus the fragmentation occurring in the forest canopy of the Sierra Nevada as a result of human settlement could actually lead to a reduction in fire hazard if development extends over a large enough area (McBride, Russell and Kloss, 1996).
 

Runoff of precipitation from settled forest areas is greater than runoff from undeveloped forests, since interception of precipitation by tree canopies is lower in developed areas and more precipitation reaches the ground faster. Fewer trees results in less duff and woody debris on the forest floor, reducing the absorptive capacity of the land. Human settlements also introduce impervious surfaces like roofs, driveways and streets that eliminate or greatly reduce infiltration of precipitation, further altering the natural drainage of a forest.
 

Loss of canopy contributes to the observed decline in wildlife species diversity along gradients of increasing urbanization, while some well-adapted urban species increase in abundance. Where canopy losses occur, understory vegetation is altered as well. Introduced species, induced dominance of understory vegetation by opportunistic shade intolerant species, or simply lots void of brush are alterations seen commonly in settled areas (McBride, Russell and Kloss, 1996).
 

Residential Density

Throughout the Sierra Nevada approximately 32% of the land is outside of residential parcels, 62% is in parcels with densities below a wildland threshold of 1du/32ac, and 6% is parceled and settled at urban densities from less than 1 du/ac up to 1du/32 ac (Duane, 1996). This analysis focuses only on forest lands where densities are above the wildland threshold where forest impacts are known to be most significant. Approximately 87% of the regionÕs population lives within the areas settled at densities above 1du/32.
 

The most heavily settled river basins have over 90% of their population living at urban densities typically on 15% or less of the total land area. The Truckee River basin represents the extreme case in which 98% of the population is living on about 16% of the land area. The Walker River is the other extreme with 44% of its population living on 1% of the watershed.
 

Housing densities generally reflect the location of major urban centers in the Central Valley and the highways that link them to the Sierra Nevada (Map 5). The most dense areas are found in the Sierra Nevada foothills in Amador, El Dorado, Calaveras, Placer, and Nevada counties. Lake Tahoe Basin and Mammoth Lakes also reflect the higher density of Sierran recreational centers (Duane, 1996).
 

River basins with a large portion of their forested lands settled at urban densities (greater than 1du/32ac), include the Truckee (forest lands in urban densities occur in 14% of the basin), Chowchilla-Fresno (13%), Carson (12%), Mokelumne and South Fork American (11%), North Fork American/Bear River (10%) and the Yuba (8%) (Table 3-3, Figure 3-1). The South Fork American/Consumnes basin has the most forest land (over 100 thousand acres) settled in the higher density classes (Map 6). The larger river basins (over one million acres), including the Tuolumne, San Joaquin, Kings, and Kern have relatively small portions of their forests dedicated to residential use (between 0.2 and 3.7%).
 
 
 
 
 
 
 
 

Table 3-3: Acres of Sierran Forest Settled at Densities Greater than

One Dwelling Unit/32 Acres, 1990
 

Region River Basin Acres Of Settled Forest (Acres)
North Mill-Big Chico-Butte Creeks 21,221 
North Fork Feather 15,298 
E. Branch Of N. Fork Feather 9,429 
Middle Fork Feather 20,817 
Honey-Eagle Lake 4,311 
North Central Yuba 75,272 
N. Fork American-Bear River 134,042 
S. Fk. American-Consumnes 145,629 
Truckee River 38,027 
Lake Tahoe Basin (CA only) 15,276 
South Central Mokelumne 58,976 
Stanislaus-Calaveras 61,404 
Tuolumne 59,419 
Merced 16,012 
Southwest Chowchilla-Fresno 79,239 
San Joaquin 32,847 
Kings 20,697 
Kaweah 13,763 
Tule 16,825 
Kern 18,316 
East Side Carson 504 
Walker 21 
Mono 1,080 
Crowley Lake 11,127 
Source: Duane 1996, based on 1990 Census; GAP Vegetation (Holland, 1986).

Figure 3-1: Settlement of Sierra Nevada Forests, 1990
 
 

Source: Vegetation: GAP Vegetation and UCB FTP Site (based on Holland, 1986), and Calveg (based on Parker and Mathias, 1977) provided by CDF, 1997. Residential: Duane, 1996 based on 1990 Census.
 

Forest Structure Affected

The measurement of canopy loss in settled areas was undertaken for SNEP in a study of woodlands and forests occurring in portions of Sacramento, El Dorado, Amador, Nevada, and Calaveras Counties (Table 3-4). The characteristics of the forests and woodlands in these counties are typical of those farther north and south, and are similar in direction to those reported for areas of human settlement in Jeffrey pine forests in the Lake Tahoe Basin (McBride, Russell, and Kloss, 1996). The SNEP study compared canopy cover on developed lots and undeveloped lots and found measureably less canopy in developed lots. The study did not address the fact that canopy in undeveloped lots may have been affected by fire suppression. If undeveloped sites have higher canopy cover because fire has not entered them in recent times, then the measured differences between developed and undeveloped parcels would exaggerate the effects of residential development on canopy loss.
 

Table 3-4: Percentage Cover on Undeveloped and Developed Property Associated with Human Settlement (adapted from McBride, Russell and Kloss, 1996)
 

Percentage of Ground Covered by Tree Canopy
 
Parcel Size= <1 acre 3-5 acres 10-20 acres Average Cover
Foothill Woodland Developed 43% 70% 52%a
Undeveloped 69% 90% 74% 78%
Lost Coverb 35% 8% 26%
. Ponderosa Pine Developed 62% - -
Undeveloped 90% - -
Lost Cover  28%
Mixed Conifer Developed 64% - -
Undeveloped 92% - -
Lost Cover  28%
Notes

Foothill Woodland: Elevation 500-2,500 ft.; dominated by blue oak (Quercus douglasii); other common trees include maul oak (Q. chrysolepis), interior live oak (Q. wislizenii), and foothill pine (Pinus sabiniana)

Ponderosa Pine: Elevation 2,000-2,500 ft. in central Sierra Nevada; dominated by ponderosa pine (Pinus ponderosa); common trees include California black oak (Q. kelloggi) and incense cedar (Calocedrus decurrens) at higher elevations

Mixed conifer: Elevation 2,500-6,000 ft. in central Sierra Nevada; trees include ponderosa pine, incense cedar, white fir (Abies concolor), Douglas fir (Pseudotsuga menziesii), and sugar pine (P. lambertiana); California black oak is common.

a 52% is average of cover loss on area immediately around structures (houses, farm buildings, sheds) and the portion of property not adjacent to structures

b =(Average cover of undeveloped lots) - (cover on developed lot)
 

Based on these measured values we extrapolated cover losses in settled areas of oak woodland, ponderosa pine, and mixed conifer vegetation types (Table 3-5). Conifer woodland, while extensively settled in the northern and central Sierra Nevada, was not examined, since no empirical data are available about the effects of residential development in this forest type. The extrapolated cover losses were then used to quantify average acres of canopy remaining in areas developed at five residential densities (See Appendix Table A-1: Total Acres in Residential Development, and Average Acres Under Forest Canopy Prior to, and Remaining After Development).
 

Table 3-5: Extrapolated Decreases in Percentage of Ground Covered by Tree Canopy at Various Lot Densities
 

Decrease in Percentage of Ground Covered by Canopy
 
Parcel Size= <1 acre 1-4 acres 4-8 acres 8-16 acres 16-32 acres
Foothill Woodland 30% 29% 22% 15% 8%
Ponderosa Pine 28% 22% 16% 10% 2%
Mixed conifer 28% 22% 16% 10% 2%
 

Approximately 62,700 acres of forest canopy are estimated to have been removed in these three forest types throughout the Sierra Nevada. Mixed conifer forests bare the brunt of residential development in the Sierra Nevada. Over 50 percent of settled forest lands (over 250,000 acres excluding Tahoe and Big Chico-Mill-Butte basins) are mixed conifer which occurs in a broad band between approximately 2,500 feet and 6,000 feet elevation in the central portion of its range. The proportion of mixed conifer supporting housing is greatest north of the Tuolumne River Basin. Over 29,000 acres of mixed conifer are settled at densities above 1du/32 acres in the South Fork American and Consumnes Basins alone. This has resulted in an estimated 23,366 acres of canopy loss. Over 51,000 acres are estimated to have been lost in the North Fork American and Bear River Basins (Figure 3-2).
 

Development of the westside ponderosa pine forests is greatest in the American, Bear, Consumnes, Tuolumne and Mokelumne River Basins where almost 85,000 acres of this forest type are settled with densities greater than 1 du/32ac. An estimated 18,000 acres of ponderosa pine canopy loss has occurred range-wide. The Truckee River Basin has lost an estimated 3,572 acres and the South Fork American approximately 3,000 acres. The Tahoe Basin has also seen substantial impacts (approximately 1,836 acres) in ponderosa pine canopy loss just on the California side. Broadleaf forests are settled principally in Central and Southern portions of the Sierra with the Chowchilla/Fresno Basin having the most acres of housing in this forest type (36,141 acres). Five southern river basins are the only ones in the Sierra where the majority of housing at urban densities occurs in non-conifer forest types; these include, the Merced, Chowchilla/Fresno, Kings, Kaweah, and the Tule River Basins. A prevalence of oak woodland explains this trend except in the Merced and the Chowchilla/Fresno where the broadleaf forest supports about 27% and 48% of the denser housing in forested areas.
 

The non-coniferous forests of the Southwest Basins have been affected the most by human settlement. Oak woodlands support the higher residential densities on more than 158,000 acres (not including Tahoe and Big Chico-Mill-Butte Basins) throughout the range. We estimate that approximately 21,273 acres of canopy loss has occurred in oak woodlands throughout the Sierra Nevada. The American, Bear, and Consumnes River Basins have over 48,000 acres of Oak Woodlands developed at densities greater than 1 du/32 acres, resulting in almost 8,000 acres of canopy loss in these basins (Figure 3-3). Oak woodland canopy loss is also significant in the Chowchilla-Fresno (approximately 2,877 acres lost), the Kaweah (approximately 1,298 acres lost) and the Tule (approximately 1,234 acres lost) Basins.
 

Approximately 4,500 acres of broadleaf forest are developed at densities of 1/16-1/32 du/ac in the dispersed development around Bootjack, in the Chowchilla-Fresno Basin (Figure 3-3). In the Fresno River watershed alone, almost 20,000 acres of oak woodland around Oakhurst and areas to the immediate south and west along highway 49 are no longer wildlands, having been developed at densities greater than 1du/32ac. The FresnoÕs watershed also has the greatest impacts in conifer and mixed conifer within the basin.
 

3.3.2 Road-Impacted Waterways
 

Forest riparian systems are adversely affected by road construction and maintenance. Roads cause the direct loss of acreage of riparian areas, the direct loss of large trees, reduced structural complexity of riparian and aquatic environments, reduced supply of large woody debris to aquatic systems, reduced base flows with increased peak flows in streams and rivers, gully development and accelerated downstream sedimentation.
 

The type, distribution, and total miles of roads that have impacted waterways in Sierra Nevada forests will never be entirely known because of the regionÕs size. Nevertheless, we undertook to estimate the overall scale of the problem using data available for the whole region. Where there is a high density of riparian intrusion by roads included in our source data (USGS 1:100,000 Scale Digital Line Graph Maps), we infer the existence of a smaller network of skid trails on lands managed for timber harvest, as well as other Òghost roadsÓ known to exist but not on maps. The coarseness of the source data limits the use of our results to that of indexing where further analysis of road problems is required within the regionÕs 26 major river basins. When combined with local knowledge of the condition of road networks, the results will aid in prioritizing future analysis.
 

Figure 3-2
 

Figure 3-3
 

Where roads are less than 150 feet from a waterway we infer their potential to impact the waterway. The use of a fixed 150-foot buffer for an entire ecosystem is highly simplistic since road effects are so variable. At a finer scale of analysis it would be appropriate to employ variable widths based on: community area (the area which provides for the living requirements of those organisms dependent for their survival on the special conditions of the riparian area); energy area (the area that supplies organic material and attenuates the affects of solar radiation); and an index of slope distance around the aquatic system equivalent, for example, to the height of a mature tree in that location; and possibly other measurable risk factors (Kondolf, Kattelmann, Embury and Erman, 1996).
 

Additionally, the effects of a road on a stream can extend a considerable distance downstream from the road. The estimates presented here focus on the source of the problemÑthe roadÑand do not attempt to quantify the full extent of riparian impacts caused by the road over time. Restoration efforts that eliminate the source of the problem are the essential first step in restoring the area impacted. The potential for a full recovery of the area is also dependent on the inherent conditions on the site (geology, soils, slope, and climate) and historical and current land use disturbance upslope of the site (e.g., impervious cover, reduced vegetation). If natural recovery processes do not occur at a rate deemed acceptable, further intervention can be pursued. Such intervention could require that many issues unrelated to forest management be addressed (e.g., flow releases from reservoirs, grazing in forest meadows).
 

Distribution of Waterways Affected by Roads

Figure 3-4 shows the occurrence of roads in forest riparian areas is most common in North Central Basins, particularly the North Fork American/Bear, South Fork American/Consumnes, and Stanisluas/Calaveras River Basins. These data are screened for the six Sierra Nevada forest types and do not include roads in lands classified as non-forest vegetation. Forest roads (includes minor streets but is principally composed of roads and trails in wildlands) are the most likely to occur in sensitive riparian areas due largely to their sheer abundance. However major roads (e.g. interstate highways) and primary routes (e.g. undivided and divided paved roads and streets) are significant in the North Central Basins particularly.
 

Figure 3-4: Major, Primary, and Forest Roads in Riparian Zones by Basin!
 

Restoration needs associated with roads in the Sierra Nevada are greatest on roads built for harvesting timber. The installed timber road base was not located, constructed, nor has it been maintained, with adequate attention to protecting riparian and aquatic environments. On the other hand, roads and streets constructed for other purposes (e.g., select recreational routes, trans-Sierra routes, utility service roads, fire roads, and roads and streets associated with human settlement) are typically maintained for continued use and are managed in a manner to minimize impacts beyond initial construction impacts.
 

The Feather River Basin has the most miles of mapped forest roads within the 150-foot buffer of all the basins of the Sierra Nevada (Map 7a, Table 3-6). Also heavily roaded are the North Fork American/Bear and South Fork American/Consumnes Basins (Map 7b) (See Appendix Table A-2 for breakout by HSA). The Mount Harkness (North Fork Feather River Basin), South Fork American, and North Fork Consumnes Hydrologic Sub Areas each have more than 80 miles of road entering riparian areas
 

The South Central and Southwest subregion HSAs have approximately 450 and 470 miles of forest roads in riparian areas, respectively (Map 7c, 7d). The upper Mokelumne has the most miles of riparian roads of all HSAs in these subregions (approximately 85 miles). However, the riparian areas in the Calaveras, Clavey, and Tuolumne River basins suffer significant incursions by forest roads as well (Table A-2). The riparian areas of the more arid and less forested East Subregion have fewer miles of roads than other subregions (Map 7e).
 

Table 3-6: Forest Roads Within 150 feet of Riparian Areas in Select Hydrologic Sub-Areas
 

RIVER BASIN HSA MILES
North Fork Feather 518.40 Mount Harkness  94.7
518.60 N. Fk. W. Br. Feather 17.4
518.90 19.8
131.9
E. Branch No. Fk. Feather 518.51 11.2
518.52 38.1
518.53 25.6
518.54 26.6
518.55 19.5
518.56 11.4
132.3
Middle Fork Feather 518.20 Little Grass Valley (S.Fk. Feather) 16.7
518.30 Frenchman Lake (M. Fk. Feather) 13.4
518.32 29.3
518.33 39.1
518.35 32.4
518.80 7.6
138.6
North Fork American 514.20 Auburn  3.9
514.45 1.9
514.49 31.9
514.50 N Fk. American (Blue Canyon) 32.2
514.60 N. Fk American (Hell Hole) 5.5
514.90 Snow Mountain  7.5
Bear River 516.20 15.1
516.30 Upper Bear (Rollins Reservoir) 59.3
157.3
S. Fk. American/Consumnes 514.30 S. Fk. American (Union Valley) 82.5
514.40 M. Fk. American (Kyburz) 31.2
514.80 1.9
532.20 North Fork Consumnes  97.7
213.3
Source: Source: 150-Foot buffer applied to Roads and Hydrology: USGS 100K Digital Line Graph, 1993; Vegetation: GAP Vegetation and UCB FTP Site, Holland, 1986, and Calveg (Parker and Mathias, 1977) provided by California Department of Forestry and Fire Protection, 1997.
 

Land Protection Status of Roads Affecting Waterways

An examination of the distribution of potential road problems relative to forest protection status offers insight into the likely condition of the roads, as well as the options available for restoration. With 61 percent of the regionÕs total miles of riparian roads occurring in private and unprotected lands, restoration strategies will necessarily involve a full compliment of approaches that advance the interests of private landowners (Table 3-7). Such approaches will vary according to stakeholder interests which include everything from industrial timber management to quality of life for residents. Approximately 23 percent of riparian roads are currently under management permitting timber harvest and other multiple uses by the USDA Forest Service and other federal land management agencies (Figure 3.5). The condition of roads under these different regimes varies considerably. For example, USDA Forest Service roads experience intense use beyond timber harvesting for recreation and other uses. Their condition is often worse than roads in private areas where access is controlled.
 

Table 3-7: Forest Roads in Riparian Areas by Land Protection Status (Miles)
 

REGION RIVER BASIN Class 1: Full Protection Class 2: Mostly Protected  

(no grazing) 

Class 3: Mostly Protected  

(some grazing) 

Class 4: Other Public Land  Class 5: Private and Unprotected TOTALS
 
North Mill/Big Chico/Butte 8.2 0.0 0.0 13.0 50.4 72
No. Fork Feather 1.3 3.0 7.6 39.1 80.7 132
E. Br. No.Fk.Feather 0.4 13.9 27.9 58.0 32.2 132
Middle Fork Feather 0.7 8.1 26.2 52.8 50.7 139
Honey-Eagle Lakes 1.6 0.3 4.4 25.4 47.6 79
North Central Yuba 0.0 14.3 9.1 23.8 69.5 117
North Fork American/Bear 0.0 4.6 15.2 12.8 124.7 157
S. Fk. American/Consumnes 0.0 13.2 22.7 31.4 144.7 212
Truckee 0.2 0.4 10.1 13.2 24.0 48
Lake Tahoe Basin  2.3 8.2 1.7 0.0 8.2 20
South Central Mokelumne 0.0 2.1 6.4 10.8 106.3 126
Stanislaus/Calaveras Rivers 0.8 10.3 28.3 20.0 130.5 190
Tuolumne 2.2 4.6 9.9 19.6 53.0 89
Merced 4.0 0.9 7.8 9.4 23.5 46
Southwest Chowchilla/Fresno Rivers 0.0 0.0 5.1 2.1 79.8 87
San Joaquin 0.9 1.6 12.0 14.0 29.0 58
Kings 0.7 1.0 8.5 6.8 47.9 65
Kaweah 2.6 0.0 0.3 1.6 44.6 49
Tule 0.0 1.5 8.5 1.6 57.7 69
Kern 0.2 2.4 12.4 27.1 94.2 136
East Carson 0.2 0.0 3.5 19.5 4.2 27
Walker 0.0 0.0 0.1 34.0 7.0 41
Mono Basin 1.0 0.6 0.4 7.9 0.3 10
Crowley Lake 3.9 4.0 0.2 29.8 1.3 39
Owens Lake 0.3 0.2 1.6 0.1 0.0 2
Mojave 0.1 0.0 1.9 24.9 22.7 50
TOTALS 31.6 95.2 231.8 498.7 1,334.7 2,192
Source: 150-Foot buffer applied to Roads and Hydrology: USGS 100K Digital Line Graph, 1993; Vegetation: GAP Vegetation and UCB FTP Site, Holland, 1986, and Calveg (Parker and Mathias, 1977) provided by California Department of Forestry and Fire Protection, 1997; Land Protection Status, Davis and Stoms, 1996.
 
 
 

Figure 3-5: Forest Roads in Stream Zones by Land Protection Status
 

Forest Types and Roads Affecting Waterways

The forest type in which riparian roads occur further characterizes the potential for road damage, and consequently, constrains the selection of restoration activities. Oak woodlands, for example are a forest type affected extensively in the South Basins. The Kern River Basin has 35 percent of its forest riparian roads in the Oak Woodlands where slopes are more gentle and canopy cover is less than higher elevation conifer forest (Figure 3-6). Roads constructed on gentle slopes require fewer drainage structures (e.g., culverts), less cut and fill, and less costly restoration. Additionally, the extensive network of relic roads, unmapped skid trails, and haul roads associated with commercial conifer forests and old mining areas is far less common in broadleaf, oak woodland, and the non-commercial conifer woodland forests.
 

The Yuba, North Fork American/Bear, and Stanislaus/Calaveras River Basins represent a range of forest types in which roads potentially impact riparian areas. Mixed conifer is the most common forest type where these potential impacts occur, followed by the conifer woodland type. West side ponderosa pine, other conifers, and oak woodland, are all host to potential riparian road impacts in these basins (Figure 3-6).
 

Figure 3-6: Potential Riparian Road Impacts among Forest Types in Select Basins
 
 

Source: 150-Foot buffer applied to Roads and Hydrology: USGS 100K Digital Line Graph, 1993; Vegetation: GAP Vegetation and UCB FTP Site, Holland, 1986, and Calveg (Parker and Mathias, 1977) provided by California Department of Forestry and Fire Protection, 1997.
 

3.3.3 Fire Suppression
 

The Sierra Nevada is a fire-adapted system. However, fire suppression throughout most of the twentieth century, combined with landuse intensification, has dramatically altered the natural fire regimes of the Sierra Nevada. These regimes, while variable from place to place, are generally characterized as supporting high frequency, low intensity fires. In lower elevations and in canyons on the west slope, fire returned every three to five years in dry ponderosa pine forests, and every 15-35 years or more in moist fir forests. In some true fir and lodgepole stands above 10,000 feet, these low-intensity surface fires occurred every 200-300 years (McKelvey, et al, 1996, USDA Forest Service, Pacific Southwest Region, 1997).
 

Both live and dead fuels in todayÕs conifer forests are more abundant and continuous than in the past. And while there is insufficient evidence to deduce a precise pattern of fire frequency or severity in presettlement times, there is a recognized need to restore aspects of a more natural fire regime to promote the health of the forest ecosystem (SNEP, Volume 1, 1996). Forest restoration with respect to the role of fire will require fuel reduction through a combination of mechanical treatments and burning.
 

Fire frequency is often expressed in terms of Fire Return Interval, or the period of time between fires. Large fires (greater than 300 acres in size) occur throughout the Sierra Nevada at varying Fire Return Intervals (FRI). This variability in frequencies as well as in fire intensities has contributed to the current mosaic of vegetation. One probabilistic analysis performed for SNEP identified FRIs based on 39,986 fire records from the period 1981-93. The relative frequency and regional trends identified in this analysis are believed to be a reflection of actual likelihood of large fire, and contribute to our understanding of the risk of fire throughout the Sierra Nevada (Sapsis, et al, 1996).
 

Fire Return Intervals range from less than 100 years to greater than 10,000 years in the Sierra Nevada. The two most frequent FRIs in the SNEP analysis are 1-100 years, and 100-250 years. Since these FRIs are of the same temporal scale as are human activities (including fire suppression) that have altered fire regimes of the region, we infer that the landscapes on which they occur are those whose fire regimes have been most affected by fire suppression policies and land use disturbance. Areas with infrequent fire are less likely to have had fire suppression activities occur on them and are therefore less likely to have un-natural or excessive fuel accumulations.
 

We conclude that from the regional perspective, these 1-250 year Fire Return Interval areas capture the portion of the landscape over which fuels management should be a high priority. Specific fuels management prescriptions can not be derived from regional data, but a range of options, from assessment to biomass removal, can be defined when these data are combined with vegetation type, land management status, and adjacency to high value forest assets such as late successional forests.
 

The Distribution of Areas with High Probability for Large Fires

The North Central river basins have the greatest number of acres in the two frequent FRI classes (Table 3-8). The North Fork American-Bear and South Fork American-Consummes have over 300,000 acres each in the two FRI classes. However, the Truckee River Basin has approximately 75,000 acres where 300 acre fire is expected to occur in the next 250 years. This area is centered around the most intensively settled portion of the basin. The Stanislaus-Calaveras and San Joaquin Basins farther south have over 260,000 acres each on which large fires are expected at least once every 250 years. Both of these basins reveal a more dispersed pattern of areas with greater likelihood of experiencing large fires (Maps 8c, 8d). See Appendix Table A-2 for distribution of FRIs among river basins and HSAs.
 

Table 3-8: Acres within Fire Return Intervals of 1-100 Years and 100-250 Years- Including Non-Forest Vegetation (300-acre+ fires)
 

1-100 Yr 100-250 Yr 544,625
NORTH 124,629 419,996
Mill/Big Chico/Butte Creek 28,812 63,579
No. Fork Feather 52,649 94,050
E. Br. No.Fk.Feather 0 49,797
Middle Fork Feather 38,288 107,371
Honey-Eagle Lake 4,880 105,199
NORTH CENTRAL 333,113 738,971 1,072,084
Yuba 107,232 124,023
N. Fk. American/Bear 118,454 267,049
S.Fork American/Consumnes 92,187 245,339
Truckee 15,240 59,909
Lake Tahoe Basin (CA only) 0 42,651
SOUTH CENTRAL 130,931 636,947 767,878
Mokelumne 10,964 140,407
Stanislaus/Calaveras 45,291 239,646
Tuolumne 64,058 163,372
Merced 10,618 93,522
SOUTHWEST 246,404 785,178 1,031,582
Chowchilla-Fresno 46,972 106,097
San Joaquin 47,812 221,361
Kings 68,676 137,025
Kaweah 36,022 97,087
Tule 34,532 77,026
Kern 12,390 146,582
EAST SIDE 15,010 196,916 211,926
Carson 0 38,071
Walker 0 25,100
Mono Basin 1,130 28,230
Crowley Lake 13,470 98,112
Owens Lake 410 6,760
Mojave 0 643
TOTAL 3,628,095
Source: Sapsis, et al, 1996.
 

Land Protection Status and Large Fire Probability

The landscape in which large fires are more frequent is mostly private. Almost 77 percent of all acres in the 1-100 Year FRI class are in the private and unprotected Land Protection Status (Figure 3-7). Less than six percent of all acres in either FRI class are under a land protection status which emphasizes the natural role of fire and allows prescribed burns and managed wildfires (Class 1). This percentage would be higher if only forest vegetation were examined. (Table 3-9). Some basins however do have a larger portion of their total landscape under management that supports natural fire regimes. The Kaweah Basin, for example, includes over 25,000 acres in Sequoia National Park which is expected to burn at less than 100-year intervals. Compared to other basins the Kaweah Basin would be a lower priority for aggressive fuel reduction activities.
 
 

Figure 3-7: FRI<100 histograms
 

Table 3-9 (landscape format FRI/MgmtClass)
 

Forest Type and Large Fire Probability

Forest vegetation type determines to a great degree fuels management approaches, irrespective of the assumed frequency of large fires. For example, the strategy for restoring natural fire to an oak woodland will be very different from the strategy applied to a west side ponderosa pine forest. We further stratified the findings of the FRI analysis by overlaying forest vegetation onto the areas in the two most frequent FRIs. Approximately 30 percent of acres with 1-100-year FRI, and 24 percent of acres with 100-250-year FRI, are broadleaf and oak woodland forests, respectively (Table 3-10). Fuel management in these forests will typically involve less treatment of ground fuel and less thinning than management in conifer forests. However, human settlement in the lower elevation oak woodlands, broadleaf forests, and conifer woodlands will create more complexity in fuel management strategies due to the presence of people and structures.
 

Mixed conifer forests contain 30 percent of the acres with calculated fire return intervals of less than 250 years region-wide (Table 3-10). The North Fork Feather, Yuba, and North Fork American/Bear River Basins contain the most acres of mixed conifer with these fire frequencies. More than 160,000 acres of conifer woodland are in the 1-100-year FRI range-wide, making it the second most common forest type with a propensity to burn at this frequency. From these data we conclude that the distribution of candidate areas for high priority fuel management is concentrated in the North Central and Southwest Basins, and that the proportion of non-coniferous forest types within the distribution increases southward.
 
 

Table 3-10: acres in forest type Outveg
 
 

3.4 Estimated Restoration Needs
 

3.4.1 Problem Summary
 

The northern and central portions of the Sierra Nevada are in greatest need of forest restoration. In these areas, less land is under protective status, extensive human settlement is occurring, and the combined effects of human disturbance have undermined the biological integrity of forests. Nearly 66,000 acres of canopy loss in three dominant forest types is estimated to have occurred as a result of residential development in the entire Sierra Nevada (Table 3-11). Canopy loss is an indicator of where the structure and composition of the forest has been altered from its natural state, and points to areas that could be improved through restoration. The greatest need for conifer forest restoration in settled areas is in the American, Mokelumne and Yuba River Basins. Over 21,000 acres of canopy loss are estimated in oak woodlands alone, with greatest impacts in the American River Basin and certain southwestern river basins.
 

A minimum of 2,000 miles of forest roads are located in the sensitive riparian areas of the Sierra Nevada. The potential for these roads to require major improvements, relocation, or closure is significant, particularly in areas which are part of the active timber base (23% are on lands managed for timber). Restoration needs, as well as the opportunities to address them, may be fewer on the 61% of road miles located on private lands. The greatest need to address the problem is found in the Feather, American and Stanislaus River basins.
 

Throughout the Sierra Nevada there are almost 3.5 million acres of land to which fire returns at 250 year intervals. These areas include both wildland and urban intermix areas where fire suppression and other land use activities of the past century have likely resulted in altered fuel profiles making these forests a high priority for fuels management. Before fire is allowed to reenter many of these areas, fuel loads will need to be reduced mechanically.
 

3.4.2 Prioritizing Restoration
 

The estimates in Table 3-11 represent areas in greatest need of attention and do not necessarily capture all areas that could benefit from restoration. For example, there are certainly some roads in protected areas that need restoration, but they are not included in the total miles, since the existing management emphasis in these areas is assumed to exclude higher intensity uses, and to address restoration needs as they are identified. Furthermore, we recognize that assessments of the need for restoration made at the local, or, project level, will determine the final pattern of forest restoration. Nevertheless, these figures provide the regional view that has not been available before now.
 

The location of high value forest assets, including giant sequoia groves (Map 9), late succession/old growth forests (Map 10), and other ecologically significant natural areas (Map 11), should be considered in prioritizing restoration activities. (Also see Appendix Table A-3 for a list of giant sequoia groves and their sizes in each river basin). For example, fuel management should be pursued first in areas where the risk of high intensity fire threatens to damage nearby assets.
 

The arrangement of data by river basin also permits a comparison of forest restoration needs with more encompassing watershed restoration needs. Aquatic ecosystems of many Sierra Nevada watersheds have been evaluated in previous studies. The findings of these studies could also aid in prioritizing where forest restoration activities should happen first. The maps of forest assets presented in this report enable the reader to examine the question of proximity. However, it is beyond the scope of this report to consider this issue in greater detail.
 

Table 3-11 : Summary of Forest Restoration Needs in the Sierra Nevada
 
AREA REQUIRING FUEL MANAGEMENT  

ACRES

RIPARIAN ROAD in 

MILESc

CANOPY LOSS in 

ACRES

 
RIVER BASIN TOTAL Urban Intermixa Wildlandsb 
 
NORTH 532,662  16,203  3% 516,459  97% 516  8,592 
Mill-Big Chico-Butte 88,368  4,287  5% 84,081  95% 63  5,316 
North Fork Feather 143,146  5,083  4% 138,063  96% 127  1,591 
E. Br. N. Fork Feather 49,810  932  2% 48,878  98% 118  1,122 
Middle Fork Feather 141,632  5,169  4% 136,463  96% 130  366 
Honey-Eagle Lake 109,706  732  1% 108,974  99% 77  197 
NORTH CENTRAL 1,070,176  215,756  20% 854,420  80% 511  31,618 
Yuba 231,130  35,042  15% 196,088  85% 102  5,294 
N. Fork American/ Bear 385,428  80,027  21% 305,401  79% 153  9,739 
S. Fk. Amer.-Consum. 337,008  79,797  24% 257,211  76% 199  10,987 
Truckee River 74,782  13,518  18% 61,264  82% 47  3,692 
Lake Tahoe Basin (CA) 41,828  7,372  18% 34,456  82% 10  1,906 
SOUTH CENTRAL 732,548  102,508  14% 630,040  86% 425  13,644 
Mokelumne 151,309  28,515  19% 122,794  81% 123  4,868 
Stanislaus-Calaveras 282,590  31,516  11% 251,074  89% 179  3,943 
Tuolumne 209,148  36,692  18% 172,456  82% 83  3,933 
Merced 89,501  5,785  6% 83,716  94% 41  900 
SOUTHWEST 866,356  41,537  5% 824,819  95% 453  10,772 
Chowchilla-Fresno 153,039  18,918  12% 134,121  88% 87  3,939 
San Joaquin 263,452  11,052  4% 252,400  96% 55  1,557 
Kings 152,524  7,176  5% 145,348  95% 63  1,758 
Kaweah 47,161  1,530  3% 45,631  97% 47  1,441 
Tule 108,757  2,344  2% 106,413  98% 68  1,750 
Kern 141,423  516  0% 140,907  100% 134  327 
EAST 202,421  2,543  1% 199,878  99% 159  1,089 
Carson 37,709  132  0% 37,577  100% 27  66 
Walker 25,100  0% 25,099  100% 41 
Mono 28,670  16  0% 28,654  100% 191 
Crowley Lake 103,504  2,394  2% 101,110  98% 31  832 
Owens 6,780  0% 6,780  100%
Mojave 658  0% 658  100% 50 
3,404,163  378,546  11% 3,025,617  89% 2,065  65,714 
a Urban/Intermix=(percentage of private lands settled at densities exceeding 1du/32ac.)X(Total acres of private land in 1-250 Year FRI).

b Wildlands=(Total private wildland acres in 1-250 Year FRI) + (Total 1-250 Year FRI in the non-private Land Protection Classes 2, 3 and 4). Class 1, Protected Lands, are not included in total, since fire is currently used as a management tool and the need for fuels reduction is assumed to be less.

cIncludes only miles of riparian roads (within the 150-foot buffer) in Land Protection Status Classes 3, 4 and 5. Classes 1 and 2 (Protected and Mostly Protected Lands) are not included, since management emphasis in these areas is assumed to allow lower intensity use.
 
 
 
 
 
 

PART II. ECONOMIC EFFECTS OF FOREST RESTORATION
 
 
 
 

4. THE SIERRA NEVADA ECONOMY
 

The remainder of this report is devoted to exploring the economic implications of conducting forest restoration in the Sierra Nevada. We do this by first presenting an overview of the regionÕs economy in order to understand the context in which restoration will happen. We also describe the Sierra NevadaÕs shift away from a resource extraction based economy toward one in which other ecosystem contributions are increasingly important.
 

4.1 Overview of RegionÕs Economy
 

Recent assessments of the Sierra Nevada economy describe the region as one that has undergone considerable change in the past two decades. Of greatest significance is the change toward increasing diversification in economic activity as measured in both employment and business enterprise. Many of the findings of these previous assessments are reviewed here along with more recent data on population, employment, and the value of ecosystem services and commodities.
 

4.1.1 Population
 

As population increases within a region, so does economic activity. Conversely, as economic conditions falter, population growth will slow, or even reverse. The Sierra Nevada has seen rapid growth in population since 1970 and it is expected to continue growing at a rate faster than that of California as a whole (Table 4-1 and Figure 4-1). Most of the growth has occurred in and around the existing population centers along the western foothills and in a few towns on the East Side.
 

Table 4-1 Projected Population Growth for Sierra Nevada Countiesa
 

1996 631,960
2000 717,400
2010 918,400
2020 1,110,200
Source: California Department of Finance

aSee Appendix Table A-4 for counties included in Sierra Nevada and for individual county populations since 1970.
 

Recent population trends in the Sierra Nevada reveal a strong link to the StateÕs economy. When compared to the rest of California, the Sierra Nevada is the only region where net domestic in-migration remained positive throughout the 1990-96 period (Stewart, 1997). The movement of people out of coastal areas to the Sierra Nevada or other states, driven by the loss of jobs in coastal counties during the recession of the 1992 and 1993, explains most of the change in population across the state. The other main components of population change (births, deaths, and foreign immigration) were less significant. As the coastal economies improve, the contribution of domestic in-migration to the Sierra NevadaÕs growing population can be expected to lessen.
 

Figure 4-1: Increasing Population in Sierra Nevada
 
 
Source: California Department of Finance on-line data
 

4.1.2 Personal Income
 

Personal income, a critical indicator of the populationÕs social and economic well-being, has remained high in the Sierra Nevada, but is derived less from local employment today than in the past. The Sierra Nevada has seen increases in commute wages, earned by residents who leave the county, as well as increases in unearned income from capital payments (interest, dividends, rental income), and transfer payments (social security, welfare, disability, unemployment insurance) (Figure 4-2). This shift in personal income sources in the past twenty years is driven primarily by the movement of new residents into the region (Stewart, 1996). These regional figures on personal income are strongly affected by rapid growth in three North Central counties, Nevada, Placer, and El Dorado, in the Yuba and American River Basins (See Map 2 of Counties and River Basins of the Sierra Nevada). The relative changes in sources of personal income are smaller in the less populous regions of the Sierra Nevada.
 

Figure 4-2: Changing Composition of Personal Income for Sierra Nevada
 
 

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Information System On-Line
 

4.1.3 Poverty
 

Poverty in the Sierra Nevada increased from the period 1980 to 1990 (Table 4-2). Throughout this period half of the forest counties had poverty rates above the state average. Nonmetro poverty rates exceed those of metro areas in the Sierra Nevada, as is typical in the West (Hoffmann and Fortmann, 1996). In 1989, 5.2 percent of the people in CaliforniaÕs nonmetro areas were in deep poverty (defined as a family income of less than 50% of the poverty level) (Hoffmann and Fortmann, 1996). Alpine and Tehama Counties were two of ten nonmetro counties which had poverty rates above the 1990 average. Yuba, Butte, Tulare, and Madera CountiesÑwhose economic conditions are strongly tied to Sacramento-San Joaquin Valley agricultureÑhad 1990 poverty rates above the state average for metro counties. These county-level data suggest that while low incomes often prevail in the Sierra Nevada, the population generally is not afflicted by deep poverty.
 

4.1.4 Employment
 

Job growth continues to outpace population growth in the region, but at a slower rate since 1993 (Figure 4-3). The overall strong trend in job growth suggests that the Sierra Nevada will continue producing jobs for local residents even as population growth and other sources of personal income continue to rise.
 

Since 1978, half of the regionÕs local work force has been employed in small businesses (less than 20 people) adding diversity to employment opportunities as well as producing a broad range of goods and services for the region (SBC, 1996). The number of small businesses has nearly doubled since 1978 (Table 4-3).
 

Overall unemployment rates in the Sierra Nevada have dropped from what had been some of the highest in the state. However, with the exception of the three North Central counties, the jobless rate is still higher than that of the state as whole (Figure 4-4). Improved unemployment rates in the Sierra Nevada follow the pattern of California as it emerges from the recession earlier in the decade of the 1990s.
 

Table 4-2: Poverty Rates in Sierra Nevada Timber Counties
 

Countya Metro/ 

Nonmetro

Poverty Rate 

1980  

(State Average, 11.8%)

Poverty Rate 1990 

(State Average, 12.5%; Metro Average, 12.4%; Nonmetro Average, 14.9%)

Deep Poverty  

1989b  

(Nonmetro Average, 5.2%)

NORTH
Tehama Nonmetro 12.9 15.3 5-7%
Lassen Nonmetro 10.3 13.3 <5%
Yuba Metro 16.1 19.5 Ñ
Butte Metro 15.0 18.9 Ñ
Plumas Nonmetro 9.7 11.9 <5%
Sierra Nonmetro 12.9 9.2 <5%
NORTH CENTRAL
El Dorado Metro 8.7 7.7 Ñ
Nevada Nonmetro 8.7 7.7 <5%
Placer Metro 8.6 7.1 Ñ
SOUTH CENTRAL
Amador Nonmetro 9.0 8.4 <5%
Calaveras Nonmetro 10.1 10.1 <5%
Mariposa Nonmetro 11.5 12.7 <5%
Tuolumne Nonmetro 11.9 9.1 <5%
SOUTH
Tulare Metro 16.5 22.6 Ñ
Madera Metro 15.7 17.5 Ñ
EAST
Alpine Nonmetro 18.8 18.1 5-7%
a Subregions in this table include only counties that in 1980 had a forest cover of more than 50%, or in which 3% or more of the wages came from forest-sector industries, and in which timber was cut commercially.

b Nonmetro counties only. Deep poverty is defined as a family income less than 50% of the poverty level.

Metro areas usually include an urbanized area with a population nucleus of 50,000 or more, as well as nearby communities that are economically and socially integrated with that nucleus.

Source: Hoffmann and Fortmann, 1996: based on Bureau of Census 1983; and Nord, 1995.
 

Figure 4-3: Job Growth Outpacing Population Growth in Sierra Nevada

Source: Jobs: U.S. Department of Commerce, County Business Patterns (Total for all Industries), on-line data; Population: California Department of Finance, on-line data.
 
 
 

Table 4-3: Small Businesses in the Sierra Nevada 1978-1995a
 

North North Central South Central East Sierra Total
1978 488  5,019  1,853  739  8,099 
1981 522  5,505  1,983  841  8,851 
1985 664  8,091  2,812  1,010  12,577 
1988 651  9,330  3,074  1,001  14,056 
1993 703  10,526  3,293  1,087  15,609 
1995 714  10,780  2,733  1,018  15,245 
a Includes only those counties whose populations are principally located in the Sierra Nevada ecoregion.

Source: U.S. Department of Commerce, County Business Patterns.
 
 

Figure 4-4: Annual Unemployment in Sierra Nevada, 1992-1997

 
 
Source: California Economic Development Department.
 

Subregions with high unemployment include the more remote, less populated areas of the Sierra Nevada. In theses regions, seasonal unemployment accounts for most of the high annual rate (Figure 4-5). The seasonality of employment reflects the fact that both timber and recreational activities decline in the winter months due to the difficulty caused by harsh weather. Many forest restoration activities would also be constrained by winter weather and as a result may do little to offset high seasonal unemployment rates. The Sierra Nevada Ecosystem Project concluded that economic diversification through growth in less seasonal industries appears to be critical for reducing unemployment throughout the region (Stewart, 1996).
 

Figure 4-5: Average Seasonal Unemployment in Sierra Nevadaa

 
 
Source: California Economic Development Department.

aAverage of 1993, 1995 and 1997.
 

Gender Representation in Regional Employment
 

The proportion of men working in occupations throughout the region is greater than that of women. Data from the 1990 Census indicate that men dominate in every occupational category except retail and technical, sales, and administrative support (Figure 4-6). The pattern is even more pronounced in occupations tied to resource extraction like forestry and logging (Figure 4-7).
 

Figure 4-6: Gender Participation in Occupations in the Sierra Nevada


Source: 1990 Census as compiled by California Economic Development Department, Labor Market Information Division, on-line data.
 

Figure 4-7: Gender Representation in Timber Employment, Subregions of Sierra Nevada

 
 
Source: 1990 Census as compiled by California Economic Development Department, Labor Market Information Division, on-line data.
 

4.2 Shift Away from Resource Commodity-Based Economy
 

Economic diversification in the Sierra Nevada has resulted in a shift away from resource commodity-based activities towards the production of goods and services that are not directly tied to the regionÕs natural resources. Over the past twenty years, the timber, ranching, agriculture, and mining sectors remained relatively stable while the rest of the economy doubled (Stewart, 1996).
 

One effect of increased economic diversification is to buffer the region's economy from changes that occur within any one sector. Direct ecosystem commodity and service sectors remain large components of the Sierra Nevada economy and distinguish this region from others in the state. However, the possibility that a downturn in any single industry could send the region into a recession is considered to be remote (Stewart, 1996). Diversification, and the strength it implies for the economy, is what we see when we broaden the scale of our analysis, but it is less evident when we focus on smaller regions or the community level. What holds for the entire region then, does not necessarily hold for subregions and more local areas of the Sierra Nevada.
 

4.2.1 Producing Goods and Services
 

Overall, the region in 1990 generated goods-producing and service-producing employment in the same proportion that it did in 1970, but the emphasis shifted away from jobs directly linked to resource commodities and towards other types of manufacturing and non-commodity based recreation and tourism (Figure 4-8). Still, ecosystem-related wages constituted over 40% of all basic wages in 1990 (Stewart, 1996). The expanded personal income and demand for a broader range of goods and services that have accompanied population growth, are key factors in explaining this shift, as are changes in commodity prices and governmental policies affecting resource extraction.
 

Figure 4-8: Sierra Nevada Goods- and Service-Producing Employment, 1990

Source: 1990 Census as presented by Stewart, 1996.

aGoods Producing: Agriculture and mining, manufacturing, and construction. Service Producing: High wage, low wage, public administration.

Goods/ServiceSectors
 

High wage service jobs are those with above average compensation. They include: communications, transportation, wholesale trade, finance, insurance, real estate, health, education and other professional services. Low wage (below average) service jobs are retail dominated and include: entertainment, recreation, business repair, retail trade, lodging and related services.
 

In parts of the less populous South Central and the East Sierra Nevada, the regional trend did not hold from 1970 to 1990 and local goods-producing jobs declined, from 31 to 27 percent, and 28 to 20 percent, respectively (Stewart, 1996). For the individual worker this could mean a drop in wages, since service jobs pay less than equivalent-level goods-production jobs. In other words, a worker shifting form goods-production to services would have to move into a higher-skilled service job to make the same money (Powers, 1996). However, there are many more higher-skill jobs in services than in goods so the effect may be less apparent when local employment is examined overall. In the Sierra Nevada, every region but the East has more high wage service jobs than low wage service jobs (Figure 4-9) (SBC, 1996).
 

Figure 4-9: High and Low Wage Service Sector Jobs in Sierra Nevada Subregions, 1990
 

Source: 1990 Census as presented by SBC, 1996.
 

4.2.2 Lumber and Wood Products
 

Timber has been an important resource commodity in the Sierra Nevada since the middle of the last century. There are currently some 2.4 million acres of private timber lands and 4.6 million acres of federal land on which commercial timber harvesting is allowed in the region (Stewart, 1996). Harvest levels reached a nadir in 1982 due to large fluctuations in timber markets (Figure 4-10). After peaking again in the later part of that decade, total harvest volume began dropping and has been at relatively stable levels since 1994. The portion of the harvest from federal land has declined in the 1990s more or less in proportion to total harvest (Figure 4-11).
 

Figure 4-10: Total Timber Harvest for the Sierra Nevada by Subregion, 1978-1997

Source: California State Board of Equalization data, provided by Russell Henley, CDF FRAP.
 
 

Figure 4-11: Timber Harvest from Federal Lands, 1991-1997

Source: California State Board of Equalization data, provided by Russell Henley, CDF FRAP.
 

TodayÕs timber harvest continues to drive employment in lumber and wood products by providing the basic raw material for the industry. However, todayÕs lumber and wood products industry is structured in such a way that the direct relationship between harvest and employment has become more variable from place to place. Lumber and wood products employment includes logging, sawmills and planing mills, and production of millwork, plywood and structural members, wood containers, mobile homes, prefabricated wood buildings, wooden furniture, and fixtures (Office of Management and Budget, 1987). The industry largely restructured during the early 1980s as material prices fluctuated in the market and industry was forced to make changes that resulted in greater consolidation, higher efficiency at the mill, and a new emphasis on remanufacturing of wood products which are farther downstream in the path from raw material to finished product (Stewart, 1993).
 

Throughout the period 1984-1994, lumber and wood products employment as a percentage of total county employment ranged from less than four percent to as much as 25 percent in individual Sierra Nevada counties. Amador, Plumas, Sierra and Tehama Counties saw rates of 10-25 percentÑall showing a declining percentage except for Sierra County which ended the decade at around 20 percent. Lumber and wood products employment was at or below four percent in Butte, El Dorado, Nevada, Placer, Calaveras, Mariposa, Madera, and Tulare Counties. Tuolumne County saw slightly higher employment in the sector through most of the period 1984-94, but ended the decade at approximately four percent (Hoffmann and Fortmann, 1996).
 

Logging and sawmilling employment, one component of all lumber and wood products manufacturing, has been variable across the region but has declined significantly in the 1990s after the previous decade saw both increases and decreases in the north and south (Figure 4-12).
 

Figure 4-12: Logging and Sawmilling Employment in the Sierra Nevada, 1978-1994

Source: California Employment Development Department, as presented by Stewart, 1996.

North includes Lassen County.
 

By comparison to logging and sawmilling, the remanufacturing portion of total lumber and wood products employment demonstrates the increasing importance of remanufacturing in attenuating the effects of fluctuations in harvest levels (Figure 4-13). This is due in part to the fact that remanufacturing facilities draw on sources for raw material beyond the Sierra Nevada, including the states of Oregon and Washington.

Figure 4-13: Remanufacturing Employment in the Sierra, 1978-1994

Source: California Employment Development Department as presented by Stewart, 1996.

North includes Lassen County.

RemanJobs
 

4.2.3 Recreation and Tourism
 

The SNEP Economic Assessment concluded that the recreation and tourism industry is the single largest employment sector in the Sierra Nevada. The report examined employment in private businesses involved in recreation and tourism, including: lodging, restaurants, retail, direct recreational services such as ski resorts, rafting companies, sports equipment suppliers, and guide services. Employment in travel includes many jobs unrelated to tourism and recreationÑit is pulled out of the total to isolate the contribution of jobs from non-travel recreation and tourism (Table 4-4). According to SNEP, approximately one-third of employees and expenditures relating to travel and recreation are derived from local residents, while the remaining two-thirds come from visitors to the region (Stewart, 1996). This estimate does not include the hundreds of state and federal employees serving tourist in the region. The Tahoe region supplies more than half of the recreation and tourism related jobs in the entire Sierra Nevada while relatively few jobs are provided by the foothill and conifer zones on the west side of the Pacific Crest.
 

Table 4-4 Travel and Tourism Related Employment
 

Travel, Recreation and Tourism Recreation and Tourism Only
 
Lodging, Recreation Restaurants TOTAL Lodging, Recreation Restaurants TOTAL
North 2,397  1,027  3,424  932  399  1,331 
North Central 4,427  1,897  6,324  1,258  539  1,797 
South Central 3,625  1,554  5,179  2,054  880  2,934 
South 1,639  702  2,341  658  282  940 
East 1,885  808  2,693  1,444  619  2,063 
Tahoe 10,955  4,695  15,650  9,772  4,188  13,960 
TOTAL SIERRA 24,928  10,683  35,611  16,118  6,907  23,025 
Source: Stewart (1996) compiled as follows: lodging and recreation employment - 1990 Census; restaurants - ProPhone (1995), and Census of Retail Trade (1994).
 

The Sierra Nevada economy continues to produce both goods and services to meet the needs of its own growing population and to supply surrounding regions. The increasing importance of economic sectors not based on resource extraction is evident in employment figures reviewed here. In particular, tourism and recreation is the largest single employment sector for the region as a whole. The resource extraction-based activities of ranching, agriculture, and timber harvesting, while still strong in some areas of the North and South Central Sierra Nevada, make up a decreasing portion of total economic activity in the region.
 

4.3 Ecosystem Contribution to Regional Economy
 

Aside from the substantial contribution of ecosystem-related employment to the regional economy, the economic benefits of ecosystems also include commodities (e.g., water timber and agriculture), noncommodity uses (e.g., recreation and tourism) and environmental and landscape amenities for residents and visitors. Sustaining the flow of these benefits should help sustain the long-term vitality of local and regional economies. This will require investments like forest restoration, watershed protection and recreation management. The scale of these investments is ultimately a societal choice, but should reflect to the extent possible the scale of benefits society receives from the diversion or use of natural resources for commodity and non-commodity purposes.
 

4.3.1 Commodity and Non-Commodity Ecosystem Uses
 

This section summarizes the scale of the economic benefits of ecosystems as estimated by resource economists in previous assessments of the Sierra Nevada. These estimates focus on net value of commodities and non-commodity uses. It is the net ecosystem value which is most appropriate to consider relative to an investment in the ecosystem like forest restoration. Commodity values derived from the regionÕs ecosystems include: hydroelectric power, agricultural and municipal water, forest products, agricultural products, and minerals. Non-commodity use values include: commercial recreation, non-commercial recreation, amenities, biodiversity and landscape preservation value.
 

The Sierra Nevada ecosystem contributes an estimated $1.9 billion to the economy both inside and outside of the region (Table 4-5). A large portion of this value is derived from the use of water for agriculture and municipal purposes outside the region. Non-commercial recreation in national forests, national parks, and state parks, is estimated to account for 23 percent of this total, with most of this value in the southern Sierra Nevada. Winter sports, followed by hunting and fishing are the leading activities in non-commercial recreation.
 

Table 4-5: Estimated Annual Ecosystem Use Values for the Sierra Nevada
 

 
 
 
 

COMMODITY USES

TOTAL 

Sierra 

($1,000s)

Percent of Total
Water: Agricultural/Municipala 740,000 40%
Hydropowera 167,647 9%
Timberb 177,820 10%
Agriculturec 8,218 <1%
NON-COMMODITY USES
Commercial Recreationd 225,000 12%
Non-Commercial Recreationd 434,000 23%
Residential Amenitiese 100,117 5%
TOTAL $1,852,802 100%
Sources:

a See Stewart, 1996 for source and explanation of how estimated.

b California State Board of Equalization for harvest value, minus 34.4277 percent of harvest value as input costs (FRAP, 1998).

c Summary of County Agricultural CommissionersÕ Reports, 1994-95. Five percent of total values for field and seed crops, vegetables, fruit and nuts, nursery and apiary, livestock, livestock products, and poultry (FRAP, 1998).

dThis is the average of two wide ranging estimates of commercial and non-commercial recreation based on different assumptions about portion of USDA Forest Service budget allocated to recreation (Stewart, 1996 and FRAP, 1998). The higher of these estimates is based in part on Forest Service published market-clearing prices for recreational activities applied to state and national parks as well as national forests.

e Source for housing and population data was California Department of Finance. Only counties with both population growth and housing growth higher than the state average were included in calculation of average housing rent (value) for each county (FRAP, 1998). Includes ten percent of this value of housing assumed to be associated with amenities that make people move to the Sierra Nevada.
 

Hydroelectric power and timber each provide approximately ten percent of the total contribution from ecosystem uses. However, unlike timber and other uses of water, hydroelectric power is a consumptive use of resources only along the diverted portion of the river where it is located. The most productive rivers in the Sierra Nevada for hydroelectric power are the Feather and San Joaquin Rivers (Table 4-6). The entire region produces over 24 billion kilowatt hours of electricity worth over $450 million in the market place. The net ecosystem value of this resource is over $167 million.
 

Residential amenities are the site-specific attributes of a region which impact peoplesÕ well-being and contribute to their decision to live there. They are estimated to have a net ecosystem value of over $100 million in the Sierra Nevada, contributing about five percent of the total contribution of ecosystem goods and services (Table 4-5).
 

Table 4-6: Annual Hydroelectric Production and Value of Sierra Nevada River Basins
 

Average Annual Output  

(Million KWH)

Market Valuea ($1,000s) Ecosystem Valueb ($1,000)
North Feather  5,904  110,344  40,412 
Honey-Eagle Lakes, Truckee, Carson, Walker 17  318  116 
5,921  110,662  40,528 
North Central Yuba-Bear  2,669  49,876  18,267 
American  3,573  66,783  24,459 
6,242  116,659  42,725 
South Central Mokelumne  1,195  22,338  8,181 
Calaveras  58  21 
Stanislaus  1,394  26,050  9,541 
Tuolumne  2,385  44,568  16,323 
Merced  342  6,388  2,340 
5,319  99,403  36,405 
South San Joaquin  4,158  77,704  28,458 
Kings  1,487  27,794  10,179 
Kaweah  52  964  353 
Tule  44  813  298 
Kern  493  9,210  3,373 
6,233  116,485  42,661 
East Mono, Crowley, Owens 778  14,545  5,327 
24,492  $457,754  $167,647 
aMarket value based on prevailing (October 14-November 10, 1996) price of electricity of 1.869 cents/KWH.

bEcosystem Value calculated by subtracting 0.5 cents/KWH from the price for operating costs, and assuming that 50% of remaining value pays for capital costs.

Sources: FRAP, 1998, based on Federal Energy Regulatory Commission, and California Department of Water Resources Bulletin 160-93.
 

4.3.2 Environmental and Landscape Amenities
 

Environmental and landscape amenities in the Sierra Nevada contribute values that flow to society at large, not just to the residents of the region. Wild and scenic rivers, old growth trees, and biodiversity are examples of environmental values which clearly have value to all of society. Voter approval of environmental protection legislation and bond issues for parks are a clear indication of societyÕs willingness to pay for these ecosystem values. However, these values have thus far eluded our ability to accurately quantify and express them in monetary terms.
 

One consequence of this shortcoming is that full cost accounting of forest management does not occur. For example, the environmental externalities associated with industrial timber management are costs that accrue to all who could potentially gain from the ecological benefits of intact forests. Yet these costs are deferred and do not factor into the accounting that serves as the basis for deciding if a timber harvest is cost-effective. This problem is at the core of the debate over how to finance the fuel reduction treatments needed in some Sierra Nevada forests. The prevailing economic argument states that, because of the depressed market for biomass, treatments which remove commercially valuable dead, dying, and collateral green trees are the only ones that cover costs. However, if the values of environmental and landscape amenities were quantifiable and fungible, we would likely see a broader selection of cost-effective treatment options available.
 

Quantifying the value of environmental and landscape amenities is challenging, yet it alone can not resolve the kind of dilemma just described. Once values are assigned to things like intact ecosystems, a mechanism for exchanging these values must exist. ÒCreatingÓ markets for such values has so far been the most widely used approach. Some of these ideas are discussed further in Section 6.
 

Californians have led the nation in efforts to balance protection of the natural environment with continued use of the goods and services it produces. But in the Sierra Nevada, as well as other forested regions of California and the United States, the two economic values, the extractive and the environmental, continue to stand in contrast to one another. And the real trade-offs inherent in extending greater protection to the environment continue to be expressed in terms of losses in jobs, productivity, and dollars.
 

This overview of the Sierra Nevada economy has demonstrated the importance of environmental quality in the economic conditions of the region. Whether or not a full accounting of environmental and landscape amenities is ever achieved, we must recognize that actions to protect the natural landscape are economic acts which have clearly positive implications to be considered alongside of the negative ones.
 

5. THE ECONOMIC ENTERPRISE OF FOREST RESTORATION
 

The costs and benefits of forest restoration derive from a wide variety of activities and effects which constitute a unique form of economic enterprise. This section of the report examines the economic enterprise of forest restoration through the activities of restoration, the intended outcomes of those activities, and their associated costs. It also describes the potential economic benefits of restoration and presents a framework for understanding their employment-related impacts.
 

5.1 The Costs of Forest Restoration
 

Previous estimates of the cost of doing restoration in the Sierra Nevada have focused on smaller subregions, or, have been based on assumptions about how much restoration is needed without specifying where it is needed. Most estimates do not isolate the costs of forest restoration from the broader problem of watershed restoration. As a result, there is neither a generally accepted estimate of the total costs associated with restoring the regionÕs forests, nor, a statement of the relative importance of restoration needs in the different subregions of this diverse ecosystem. The spatial analysis conducted for this study make both possible. While the final determination of the level of intervention to undertake in a particular location will occur at the project level, estimates with a basis in both place and forest condition, can be made with the results of this analysis.
 

The costs of specific treatments will vary from place to place and over time as well. However, using examples of these costs from real projects throughout the state, a reasonable estimate can be made of required outlays of capital for the initial phase of forest restoration. The resulting cost estimates are examined independent of any potential revenues the restoration activities may produce. These potential revenues, which could off-set costs considerably in some cases, are discussed in a following section of this report. Readers are invited to adjust these estimates based on assumptions about cost of individual treatments, or the total area needing treatment, that differ from those stated here.
 

5.1.1 Forest Restoration Activities
 

The fundamental challenge of forest restoration is to bring about the recovery of structure, composition, and function within a human disturbed forest ecosystem. Forest structure and composition are a reflection of the functioning of many ecosystem processes, including disturbance, plant succession, and the broad array of interactions of other life forms with forest vegetation. Our ability to alter forest structure and composition is most apparent in the practice of timber harvest, but is also evident in the effects of human settlement in the forest ecosystem. Where we have most profoundly altered the forestÕs structure and compositionÑas we have where the largest, oldest trees were removed, or where intense fire resulting from un-natural accumulations of fuel has eliminated entire forest stands and rendered soils sterileÑthe challenge of restoration is inter-generational.
 

The activities of forest restoration described here are those currently employed in forests around California and the West. They include:

1. Assessment of Need, Type and Strategic Location of Interventions

2. Interventions

3. Long-term Maintenance and Monitoring

4.

These activities focus less on direct measures to reproduce past forest structure and composition, and more on restoring ecosystem function. The theoretical reasons for this are that the treatments will first cease the disturbance which interrupts the function of the ecosystem, and if successfully restored, the function can begin to produce the targeted structures and composition. The practical reason for this is that outside of a very few exceptional circumstances, we simply can not restore large vegetative structures and composition in the environment. Forest restoration activities as we perform them today then are really the initial steps in a long-term process which relies on natureÕs own potency to bring about a desired end-state. Additional costs will accrue as this process continues, making any estimate of cost both initial and preliminary.
 

Restoring Fire to Sierra Nevada Forests

Restoring the natural disturbance function of fire in Sierra Nevada forests will require a wide range of activities. The choice of treatment will reflect the risks inherent in vegetation fires. As the regionÕs population increases and wildlands become intermixes of settlement and wildland, vegetation fires have a higher probability of crossing into developed areas and inflicting damage on both ecological and social systems. The most destructive and costly fires in recent history have occurred when fire crossed over and burned into communities, overwhelming the response capabilities of urban fire departments.
 

The emphasis in fire management in California is greatest at the interface of communities and wildlands. In these environments fire can cross readily between structural fuels and vegetation fuels. The California Department of Forestry and Fire Protection describes two types of interfaces, both of which are well represented in the Sierra Nevada. The Classic Interface occurs where clusters of buildings along a fringe of developed area are vulnerable to wildfire on adjacent wildlands (housing densities range form 1 unit/5 acres to 1 unit/160 acres). The Mixed Interface occurs where rural homes are intermixed among expanses of vegetation. The majority of the Sierra Nevada landscape is in the mixed interface fire management environment (CDF, 1995). This interface fuel environment actually occurs over a substantial portion of the landscape and is found intermixed among fuel types composed exclusively of wildland vegetation and those composed principally of synthetic structural materials in more dense urban environments. The intermixed landscapes retain significant wildland values, supporting many native or relatively undisturbed plant communities, wildlife habitat, and productive, high quality watersheds.
 

The use of prescribed fire in these environments will encounter enormous challenges. In wildlands, the risk of using prescribed fire will be too high in some places because of accumulated live and dead fuels. Aggressive efforts to grow extensive mature forest as quickly as possible has resulted in heavy and continuous fuels on some areas of the commercial timber base (Sapsis, Brandow, 1997). Where prescribed fire is an option, some of the problems associated with it include: fire escaping, air quality impacts, damage to historic structures, loss of threatened and endangered species habitat, and the visual effects of fire. Some of the potential advantages of prescribed fire include the following:

· reduce the probability of stand-replacing fires by introducing low intensity and low damage stand-maintenance fires

· prevent changes to species composition that occur when fire-resistant species are replaced by fire-intolerant species

· prevent less controllable and more costly fires

· reduce danger to firefighters

· reduce potential for higher particulate matter emissions as fuel loads and understory biomass decrease

· reduce effects of wildfire suppression including use of motorized vehicles in sensitive areas, use of fire retardant, and rehabilitation activities.
 

Where pre-treatments of fuels are required, several mechanical treatment options exist. The costs of restoring the natural disturbance function of fire in Sierra Nevada forests will be higher in intermix areas, therefore we have separated the costs into two categories, one for wildlands and one for intermix/urbanized areas (Table 5-1).
 

Restoration in Areas Affected by Canopy Loss from Residential Development

Perhaps the greatest challenge in forest restoration in the Sierra Nevada is in the urban/intermix. Canopy loss associated with residential densities of 1 dwelling unit/32 acres and greater are described in this study to approximate the extent to which the structure, composition and functioning of forest ecosystems has been altered. Addressing these impacts is challenging because only slight alterations in the use of residential areas is feasible. The uses of a residential parcel, including buildings, roads and driveways, yards, and storage lots, represent costly improvements that residents are not inclined to remove. The measures to make properties Òfire safeÓ effectively extend the reach of the used portion of the site by removing trees, plants and forest ground fuels. It is in this second area of protecting property from loss to fire that there is an opportunity for restoration. The opportunity lies in designing and implementing more biodiversity sensitive fuel management strategies. However, current direction to landowners from state and local fire officials is very clear about the required actions for maintaining fire safety. Additionally, the insurance industry is developing approaches which reward aggressive fuels management in fire prone areas, further reinforcing the negative effects on biodiversity that residential development has on Sierra Nevada forests.
 

Fire safe strategies typically require that a defensible space be established around protected structures. These spaces can be as great as 200 feet on sloped areas. Within the defensible space, both live and dead fuels are removed either partially or entirely. Fire management organizations recommend breaking up the horizontal continuity of vegetation by removing plants to form islands of plant materials (Smith and Adams, 1991). Additionally, standing dead trees, down dead trees, and dead shrubs, are to be removed from within the defensible space, with the exception of one or two snags for wildlife limbed to a height of 15 feet. Many residents who have settled in the region to be closer to the natural environment find it difficult to implement these measures in their immediate surroundings. However, alternative approaches which balance fire protection with greater protection of forest biodiversity are not widely available. Such alternatives are needed for the region and probably represent the greatest potential for achieving some restoration of functioning forest ecosystems.
 

Estimating the need and cost of restoration in these areas is complicated by conflicting goals. On one hand these environments need fire restored to them to maintain fuels at natural levels, and since prescribed fire can not be used on a wide scale, mechanical treatments are needed to prevent costly fires. On the other hand, mechanical treatments have lead to reduced canopy and related loss of biodiversity which also needs to be restored. We have made cost estimates based on the first goal, since mechanical treatments costs are known (Table 5-1). This also avoids the problem of double counting that would occur if costs were summed both for interventions in the 1-250-Year FRI and interventions where canopy loss has resulted from residential development. It is assumed however, that adapting these interventions to optimize biodiversity would increase the overall costs of restoration in the intermix areas.
 

Table 5-1: Annualized Costs of Fuel Treatments
 

Wildlands  

(Cost/Acre Basis)  

$

Intermix/Urbanized Forests 

(Cost/Acre Basis) 

$

Wildlands ($/Acre)  Intermix/Urbanized Forests 

($/Acre) 

A. Assess for Need, Type, and Strategic Location of Treatments - - -
B. Interventions
Burning - - 240 
Management-Ignited Prescribed Burn 45
Prescribed Natural Fire 50
Under Burning 120
Mechanical Treatments 6,000  500  2,000 
Pile and Burn (understory fuels treated; surface woody and duff fuel not treated) 650
Cut and Scatter (increases the surface fuel load and depth) 100
Feller Buncher 380
Mastication 280
Thinning for woodchip biomass (fell, buck, limb, skid, chip, overhead, and stumpage) 590 724 
Manual Thinning 970
C. Long-Term Maint. & Monit. of Reduced Fuel Loads - 25  75 
Estimates derived from the following sources:

Cousar, et al, 1996

Elliott-Fisk, et al, 1996

For the Sake of the Salmon, 1995

Klamath Forest Alliance, 1998

NEOS Corporation, 1997

Dennis, 1997.

Pacific Rivers Council, 1995

Spreiter, Terry A. 1990

USDA, Forest Service, 1996.

USDA, Forest Service, 1997a

Watershed Management Council, 1997
 

Road Restoration in Sierra Nevada Forests

The effects of a road on a stream can extend a considerable distance downstream from the road. The treatments presented here focus on the source of the problemÑthe roadÑand do not address the full extent of riparian impacts of roads. Restoration efforts that eliminate the source of the problem are the essential first step in restoring the area impacted. Additionally, many roads in riparian zones have not resulted in significant impact yet have the potential to do so in the future. The assessment phase of road restoration work is important in identifying these possible future problem areas and prescribing preventative measures.
 

Closure and removal decisions requires consideration of how the road is currently used and what potential future uses there may be for the road. Roads serving recreational access, forest management, and fire management needs are unlikely to be eliminated even if they are in riparian areas. The level of roading can determine the options for fire management, since prescribed burning is easier to control where roads occur. The two principal activities of forest restorationÑfuels management and road treatmentsÑmust be examined together to balance the impact of roads against the benefits of prescribed burns. The road density in most non-wilderness wildlands is such that any proposed construction of new roads for the purported purpose of facilitating fuel and fire management would need to be seriously scrutinized.
 

The most expensive treatment for a road is decommissioning. A typical decommissioning treatment involves removing culverts, ripping the road surface, removal of unstable fills, and configuration for long-term drainage, which includes measures such as outsloping or recontouring of road sections. Experience in Redwood National Park indicates that the cost of obliteration is approximately the same as that required to upgrade roads to a standard at which they can be safely maintained (Furniss, 1995). Many less expensive treatments are available which address the majority of road problems (Table 5-2). Where roads travel along streams for a great distance and encourage intensive use of sensitive riparian environments, the option to eliminate the disturbance may exist. In some cases the fencing of riparian areas offers adequate protection, eliminating the need for more expensive road treatments.

Table 5-2: Annualized Costs of Road Treatments
 
Wildlands  

(Cost Basis in $/mile or noted)

Wildlands 

($/mile or noted)

 
A. Assess for Need, Type, and Strategic Location of Treatments
Road Assessment 360 360 
Riparian Reforestation Assessment 10 ac 10/ac 
B. Interventions
Road decommissioning/erosion control (culvert, fill removal, decompaction (ripping), recontour to original slope) 11,218 

53,493 

67,142 

155,344

60,439 
15,000 
Blading, shaping, outsloping, improving drainage 17,276 

6,000

25,858 
54,297 
Road sediment reduction (excavate crossings, log string bridges, remove road bench where failing, replace culvert, install ditch-relief culverts, reconstruct headwall, remove road bench where failing). 55,446 

60,377 

8,892

41,572 
Riparian Restoration/Revegetation 1,425/ac
Site Prep 7,399 mi
2,037 ac
Planting 2,175 ac
630 ac
Fencing 4,856 mi
Riparian Reforestation 180 ac 
C. Eliminate Disturbance
Fencing 4,856 mi 4,856 
D. Long-Term Monitoring and Maintenance of Restored Areas 1,032 ac 1,032 
Sources: See above
 

5.1.2 Aggregate Forest Restoration Costs
 

A total cost of $374,955,896 is estimated for conducting fuel management and road restoration in the Sierra Nevada (Tables 5-3 and 5-4). This cost estimate is based on area totals derived from the spatial analysis conducted for this study. Several assumptions about the types of activities which would be required were made. Changing these assumptions would obviously change the cost, therefore this estimate represents a single scenario for addressing forest restoration needs in the Sierra Nevada. No assumptions were made as to the time period over which this work would be completed. However it is assumed that these are to some extent recurring costs. It is highly speculative to attempt to estimate the on-going maintenance costs for Sierran forests, before the actual costs of treating current restoration needs have been calculated. We have included however, long-term maintenance cost estimates for the areas treated in this initial phase of work.
 

Perhaps the greatest uncertainty in making estimates of fuel management costs is in the degree to which fire will actually be used in the Sierra Nevada. Air quality regulations and the presence of human settlements in the forest will constrain the use of fire, but it is impossible to predict how at this time. When mechanical treatments are as much as ten times the cost of burning, the sensitivity of cost estimates to how much of each intervention is used, is very high. We assumed that fire would be the intervention of choice on 40 percent of wildland areas in the 1-250 year fire return interval. Ten percent would have management-ignited prescribed burns, 20 percent would have prescribed natural fire, and 10 percent would receive underburning. The resulting costs would be over $80 million for burning alone (Table 5-3). This estimate assumes no burning in urban intermix areas. We assumed that ten percent of the acres with 1-250 year FRIs would require mechanical treatments, and made no assumption as to the type of treatment. We broke out the costs of mechanical treatments in intermix urban areas from wildlands, since interventions in urban intermix areas cost approximately four times those in wildlands. Estimated costs of long-term monitoring and maintenance also recognize the higher cost of working in urban intermix areas.
 

In calculating road restoration costs we assumed that the entire 2,065 miles of roads in riparian areas would need to be assessed for the need, type, and strategic location of treatments. These assessments would also reveal the extent of roads and road impacts that are not ÒseenÓ by the digital, 1:100,000 scale maps used in the spatial analysis. We based the costs of interventions on these assumptions: 25 percent of the road miles would require decommissioning; 25 percent would require blading, shaping and otherwise improving drainage; and 50 percent would require sediment reduction work (Table 5-4). Riparian restoration would be needed on an estimated 20 percent of the road impacted areas, at an assumed ratio of five acres per mile of road repaired or decommissioned. We assumed five percent of road miles would need to be fenced to eliminate disturbance, and that long-term monitoring and maintenance would be required on just over a thousand acres of riparian areas where road work is needed.
 

Restoration is both planned and actively taking place in many parts of the Sierra Nevada and the costs identified here should not be viewed entirely as an augmentation to current or future expenditures. The static nature of this analysis inherently constrains our ability to quantify the degree to which funds already allocated for restoration work would off-set the costs estimated above.
 
 

Table 5-3 Fuel Mgmt costs
 
 

Table 5-4 Road costs
 

5.2 Accumulating the Benefits of Restoration
 

The estimated $375 million investment required to address the major restoration needs of Sierra Nevada forests has the potential to produce a broad array of benefits. Because this investment could enhance all forms of capitalÑincluding natural, social, and financial capitalÑthe benefits are potentially greater than those yielded by other investments, like recreational development or timber production.
 

It is difficult to accurately quantify the enhancements in social capital that we expect would result from investments in forest restoration. Similarly, enhancement of the natural capital of the region through forest restoration is difficult to directly quantify. But, as discussed earlier, the flow of goods and services from forest ecosystems is substantial, generating both financial capital and intangible values such as landscape and environmental amenities (See Section 4.3). This section of the report examines the primary benefits of restoration in the Sierra Nevada.
 

5.2.1 Understanding the Effects of Forest Restoration-Related Employment
 

Although labor input costs are built in to the costs estimated above, this study makes no attempt to quantify the number of jobs that could potentially result from a major forest restoration initiative in the region. Such an attempt would necessitate far too many assumptions about labor dynamics and the actual restoration activities that would occur. We believe that assumptions of this nature would result in estimates of employment that lack any useful value. Assumptions would be required for several factors, including:

· the duration and seasonality of employment opportunities

· the occupational requirements and skill level of potential workers

· labor supply

· labor efficiency

· the proportion of additional jobs created, relative to jobs filled by workers shifting from one activity to another (e.g. from commercial logging to thinning for fuel management)

· the commodity stream and the proportion of value added manufacturing jobs
 

Additional factors which would be useful to understanding the employment impacts of restoration, include the level of compensation for workers, gender participation, and specifically what populations or communities are likely to be affected. Compensation for the kinds of occupations likely to be demanded by restoration work range so broadly (e.g. from under $10/hour to over $25/hour) (Table 5-5). Accurate estimates would require specific knowledge of the occupations that is not available. The pattern of gender participation in resource management-related occupations (Table 4-7) is overwhelmingly skewed toward males. In the absence of evidence that restoration jobs provide more opportunity to women than conventional resource management occupations, it is difficult to imagine how new jobs in the field of forest restoration would measurably off-set this pattern.
 

Table 5-5 : Wages for Select Occupations Related to Natural Resource Management, 1996
 

HOURLY WAGE  

(dollars)

Median Mean
Surveyors and Mapping Scientists 23.71 25.08
Foresters and Conservation Scientists 21.31 22.16
Log-Handling Equipment Operators 15.20 14.64
Logging Tractor Operators 15.02 14.47
Choke Setters 12.11 12.73
Forest and Conservation Workers 9.35 9.41
Forestry, Fishing, and Related Workers 8.68 9.82
Source: California Employment Development Department, Labor Market Information, Occupational Employment and Wage data 1996 - State of California.
 
 
 

The populations or communities likely to be affected by the economic stimulus of a restoration project could be identified with relative precision if the project itself were clearly defined. Where such projects are proposed for public lands, a participatory process required under federal law almost guarantees that affected parties are identified. However, the affects themselves could be much harder to predict. In particular, it is difficult to anticipate the degree to which the well-being of certain communities could be enhanced by an infusion of new jobs in the field of forest restoration. This quite simply is because well-being, while clearly influenced by employment, is a reflection of many other factors including, aesthetic, symbolic and non-commodified values of life in rural environments. Knowledge of the conditions and opportunities which determine community well-being is at best rudimentary when we examine the issue at a scale larger than the individual community. However, some insights into the effects of resource-related employment on povertyÑcentral to anyoneÕs notion of well-beingÑcan be gleaned from county-level data analyzed for the Sierra Nevada Ecosystem Project. The SNEP study is useful to consider in trying to understand the effect of forest restoration related employment, since it focused on closely related lumber and wood products employment.
 

The results of the SNEP analysis suggest a negligible effect of employment in lumber and wood products on poverty levels in Sierra Nevada timber counties when measured by demand for the poverty assistance program, Aid to Families with Dependent Children (AFDC). Indeed, one possible explanation for the findings on AFDC and employment offered by the authors was that the findings may Òreflect poverty that persists for structural reasons, such as age distribution of the population or the wage structure of particular industries, that would not necessarily be affected by variations in employmentÓ (Hoffmann and Fortmann, 1996). Specific findings of the SNEP analysis, include:

· employment variation in the lumber and wood-products industry over time does not Òcause(1)Ó variation in other employment in the long term (defined as 18 months)

· employment variation in the lumber and wood products industry over time does not ÒcauseÓ variation in AFDC caseload except in El Dorado and Plumas Counties

· annual growth in lumber and wood products employment ÒcausesÓ annual growth in other employment only in Tulare County, where there is less than two percent of total employment in lumber and wood products
 

While emphasizing that their findings evinced regional trends, and that individual experiences in local communities may be different, the SNEP authors concluded that Òincreasing lumber and wood-products employment is not likely to have significant long-run impact on either other employment or on AFDC caseloads in the Sierra Nevada.Ó And that Òpolicies which might increase lumber and wood-products employment in general and timber harvesting in particular would provide a crude and probably ineffective lever for addressing these issues (AFDC dependency and employment).Ó (Hoffmann and Fortmann, 1996).
 

The experience of local communities will certainly vary from this county-level characterization. Another assessment from SNEP which looked beyond the issue of poverty at a broader array of indicators of community well-being, rejected county-level data in favor of a more socially relevant unit, the census block aggregation (Kusel, 1996). This study made considerable effort to make the aggregations closely representative of locally defined communities. Evaluating 180 census block aggregations throughout the region using new metrics of social and economic well-being, the SNEP authors found considerable variability in both socioeconomic status and community capacity (Doak and Kusel, 1996).
 

Socioeconomic status was based on five factors derived from 1990 Census data, including housing tenure, poverty, education, employment, and children in homes with public assistance income. It was scored on a scale of 1 to 7. Community capacity, described as the collective ability of community members to respond to stress, to create and exploit opportunities, and to meet their needs, was assessed through local expert knowledge and given a score on a scale of 1 to 5. Community capacity is described as consisting of three forms of capital: physical capital, which includes financial capital and other physical elements and resources in a community (e.g., sewer systems, open space, business parks, housing stock, schools); human capital, which includes the skills, education, experiences and general abilities of residents; and social capital, which includes the ability and willingness of residents to work together for community goals (Doak and Kusel, 1996).
 

Lower socioeconomic scores were found in areas where higher percentages of individuals and families lack sufficient socioeconomic resources to maintain a reasonable standard of living. Low capacity scores indicate areas that have a reduced ability to effectively address the needs of local residents and take advantage of local development opportunities to improve local well-being, including socioeconomic status. Table 5-6 presents average scores for these metrics of community well-being in six regions of the Sierra Nevada (See SNEP, 1996 for scores for all 180 aggregations).
 

Table 5-6: Average Socioeconomic and Community Capacity Scores for

Sierra Nevada Regions (Doak and Kusel, 1996)
 

REGION Average Socioeconomic Score (1-7) Average Capacity Score (1-5) Population
Northern 2.5 2.5 128,984
West-Central North 4.8 3.4 221,258
West-Central South 3.7 3.1 144,341
Southwest 3.8 2.8 60,528
Greater Lake Tahoe 3.5 3.9 64,218
Southeast 3.8 3.1 27,440
Regions defined:

Northern: southern half of Lassen, all of Plumas and Sierra and foothill areas of Yuba and Butte Counties.

West-Central North: western portions of Nevada and El Dorado and the central portion of Placer Counties.

West-Central South: Amador, Calaveras, Tuolumne, Mariposa and eastern portion of Madera County.

Southwest: eastern portion of Fresno and Tulare Counties and north-central portion of Kern County.

Southeast: Mono and Inyo Counties, southeastern portion of Tulare County.

Greater Lake Tahoe: easternmost portions of Nevada, Placer, and El Dorado Counties; all of Alpine County; southwestern portion of Washoe County and northwestern portion of Douglas County in Nevada.
 

The individual communities within each region are the relevant unit of analysis when attempting to understand the actual effects of new jobs in restoration on community well-being. Nevertheless, on the regional level, an unavoidable implication of these findings is that in the region where the need for economic stimulus from something like new restoration jobs appears greatest, the North region, the community capacity there may be insufficient to realize its benefits.
 

These subregional findings seem to parallel the conclusion drawn above about AFDC dependency and employment, that policies which would increase lumber and wood-products employment would provide a crude and probably ineffective lever for addressing those issues. As described earlier, another feature of employment in forest work of all kinds is its seasonality. This feature is critical to recognize when looking to alleviate unemployment, poverty, and low levels of community well-being. Where winter unemployment rates are highest, additional jobs in restoration would probably do little to offset those rates, since the bulk of this work is not done in winter months.
 

Absent specific information about employment dynamics in forest restoration occupations, and accurate assessments of community capacity and socioeconomic status, estimates of the number and effect of new jobs in forest restoration are likely to be spurious. Estimates of indirect effects, such as job gains in tourism and recreation that theoretically result from improvements in the forest environment, would inherit the same assumptions used in making estimates of direct effects and would be equally unreliable.
 

Two things should be apparent from the above discussion however. The first is that an increasingly diverse economy in the Sierra Nevada will greatly attenuate the effects of employment gains in any one resource-related sector. The second is that the effects of gains in timber employment, or in forest restoration employment, while potentially significant at the community level, are extremely case-specific and no overall conclusion can be drawn that gains in this sector will result in increased community well-being.
 

The SNEP report laid important groundwork in designing methods of socioeconomic assessment that could be useful in evaluating the effects of specific restoration projects. Such projects would benefit from this kind of assessment, particularly in the area of predicting a projectÕs effects on employment and community well-being.
 

5.2.2 Goods and Services
 

Forest restoration has the potential to help sustain the flow of ecosystem goods and services that are the backbone of the Sierra Nevada economy. The following is a cursory review of the primary sources of ecosystem goods and services with examples of direct benefits that could result from forest restoration. As described above, the beneficiaries include all consumers of these goods and services.

· Agricultural and municipal water (annual use value, $740 million): water sources are best protected by intact forested watersheds; reservoir life-span could potentially be extended by minimizing siltation.

· Hydropower (annual use value, $168 million): reservoir life-span could potentially be extended by minimizing siltation.

· Timber (annual use value, $177 million): fuel reduction protects investments in timber management that are at risk to stand-terminating fires.

· Commercial and non-commercial recreation (combined annual use value, $659 million): riparian restoration could enhance recreational fishing; improved forest health could sustain the high level of interest in forest-based recreation.

· Residential amenities (annual use value, $100 million): maintain the quality of life in residential developments by slowing or reversing the loss of forest cover and composition. The avoided costs of catastrophic fires in settled areas is a financial gain for residents and taxpayers.
 

The most tangible products of forest ecosystems are trees and biomass. Forest restoration is intended to restore the structure, composition and function of a forest ecosystem and by definition precludes the harvesting of green lumber where it conflicts with that intent. However, growing demand for wood products is a cause of forest degradation throughout the world and timber production will continue contributing to the Sierra Nevada economy by supplying that demand. The Natural Resources Defense Council has estimated that each U.S. citizen consumes on average approximately 75 cubic meters of solid wood every yearÑabout one ancient tree (NRDC, 1998). Biomass is often viewed as a byproduct of restoration. In fact it is conventionally viewed as a disposal problem in the Sierra Nevada where its presence seriously limits the possibility of reintroducing fire. Both timber and biomass markets as they relate to forest restoration are considered below.
 

Timber Certification
 

Certification of wood products is designed to address both production and consumption of forest products, thereby approaching the problem of forest degradation at both of its sources. These words from the Institute for Sustainable ForestryÕs landowner and forester handbook for Pacific Certified Ecological Forest Products (PCEFP) describes the way this works.
 

Our stamp on a piece of lumber identifies wood harvested with care from a forest managed for wood, wildlife, and community. We track the wood from forest to consumer, and guarantee the buyer that his or her purchase is from a sustainable forest. We only certify wood from California landowners. We know that people are ready to pay a little more for good wood, and that PCEFP landowners should receive a little more for their extra care and stewardship.

ÑInstitute for Sustainable Forestry, 1994.

While still not widely known and accepted, the concept of wood product certification is being promoted by an increasingly wide array of organizations and industry groups. Collins Pine Company, an industrial timber products company with large holdings in the Feather River Basin, is a producer of certified lumber that supplies consumers throughout the United States. And recently, NRDC launched a major forest initiative whose aim is to make certification as widely known and accepted, in ten years, as recycling and organic produce are today.
 

By emphasizing the long-term sustainablity of timber production, certification promotes many of the goals of restoration that have been absent form industrial scale timber management. Its potential to improve forest management in areas that are part of the commercial timber base is not possible to predict at this time. Nevertheless, it represents one of many approaches that will need to be more closely examined to achieve improvements in private and public timber management.
 

Market Opportunities for Biomass
 

There are presently no viable market outlets for the large quantities of biomass that would be produced by fuel management activities envisioned as part of forest restoration in the Sierra Nevada. The range of biomass products, includes; liquid fuels, electricity production and cogeneration, industrial and commercial boilers for process heat and/or steam, and residential thermal energy for heating. Other potential wood-based products include: posts and poles, crafts, pulp, oriented strand board, waferboard, medium density fiberboard, composite wood products, charcoal, and compost (NEOS Corporation, 1997). Transportation and processing costs combined with the low costs of coal and natural gas, are the key reasons why these products can not be brought to market.
 

The technologies for manufacturing liquid fuels, including ethanol, methanol, and biocrude (oil derivatives of wood, wood waste or other low value biomass residues) are currently in the precommercial phase. Methanol and biocrude both appear unlikely to play a role in the use of biomass, since the economies of scale of natural gas-based processes make that approach more cost-effective. The feasibility of ethanol production from wood is being examined by the Quincy Library Group. However future trends in ethanol consumption are difficult to predict, creating uncertainty in the face of potentially large capitalization costs.
 

Electricity production and cogeneration offer some potential for biomass utilization; the most promising being Ògreen powerÓ programs. This option is now feasible because of green pricing programs resulting from the deregulation of the California electric utility industry. It is based on the concept that biomass-burning cogeneration facilities produce electricity from renewable energy, and consumers will pay more, effectively subsidizing the use of biomass. Another option is in-woods integrated energy production and value-added product creation. This involves converting biomass to electricity in the forest with small turbines, thus minimizing processing and transportation costs. Value added products (like pallets) could then be produced in Òmini-millsÓ on-site, and excess electricity could be sold to a local utility (possibly as green power).
 

The accumulated benefits of restoration will include higher value timber products and certain biomass products, as well as an array of social benefits like amenities, water for cities and crops, hydroelectricity, and recreation. Central to the question of who should bear the burden of funding restoration is the need to fairly characterize this stream of benefits derived from ecosystem use. Beneficiaries exist all along this stream, receiving varying amounts of value from the resource. The difficulty in fairly characterizing widely dispersed benefit streams occurs since benefits are usually exploited (and valued) to varying degrees by different users, and are often taken for granted by beneficiaries. However, the more widely dispersed the benefits of a particular ecosystem use, the greater the number of potential contributors to investments in preserving the flow of benefits.
 

A greater understanding of how benefits are dispersed to the population is key among the factors which will contribute to emerging strategies for funding ecosystem management. In particular, beneficiaries must be identified and then made aware of how they benefit; the justification for spending restoration dollars must be made clear; and finally, mechanisms for collecting investment resources from only the beneficiaries must be developed.
 

6. FINANCING FOREST RESTORATION
 

Both existing and new sources of funding for restoration are examined below. Existing sources include state and federal government spending and new sources include some market-based strategies described by others. Because of the diversity of ownerships, management objectives, vegetation types, financing Sierra Nevada forest restoration will require several strategies that fit many local situations.
 

Decisions about funding forest restoration will be improved if they follow some basic principles. Proposed projects could be evaluated according to such guidelines and greater integration and efficiency would likely result. The following general principles for forested watershed restoration investments, prepared by Robert Hrubes, are a good example of this (PCL Foundation, 1997a):

· Restoration efforts need to be goal-driven and must emerge from and be guided by watershed-level analysis and planning that generates definable targets or desired future conditions.

· Investments must first be made in developing and expanding community capacity for restoration to be effective in the long term.

· Project-level investments should be locally driven watershed-level decisions made by multi-stakeholder decision-making bodies possess local knowledge of the resource base.

· Highest priority should be on securing protection of least-damaged ecosystems and watersheds before efforts are expanded into areas already impacted.

· Restoration projects should be recognized as having bio-physical, political, and economic dimensions

· The most effective efforts are those that address the root causes rather than the symptoms of ecological degradation.

· New investments should seek to leverage other sources of funding and should result in a net increase in total restoration funding, rather than merely substituting for other sources of funding.

· Effective long-term restoration efforts must manifest cooperation and collaboration amongst all stakeholders, including land owners, regulators, non-government organizations, residents, and consumers of forest ecosystem goods and services.

· Prevention is almost always more cost effective than restoration.
 

6.1 Existing Sources of Restoration Funding
 

6.1.2 Government Appropriations for Ecosystem Management
 

Appropriations of federal and state funds to purchase lands for parks, restore rivers, protect and enhance wildlife habitat, and assist landowners in conservation and stewardship, is the principal source of existing funding for forest restoration. Investments derived from federal and state treasuries are not tied to the productivity, or the value, of the ecosystem where they are made. Examples of the disconnection between ecosystem values that flow out of a bioregion, and investments flowing in, are numerous. Two examples in the federal domain, include the receipts from timber harvests on National Forests and those from National Park visitor fees which get deposited directly into the U.S. Treasury; National Forest and Park budgets generally do not account for these receipts. The temporary changes in the National Park fee structure, which have now been extended to December 1999, would allow parks to keep 80 percent of any additional fees they charge for projects in the park of origin.
 

Despite the absence of a systematic approach to conducting ecosystem protection activities, public investment results in restoration work:

1. Restoration and enhancement of biodiversity and commodity values is the most common activity undertaken. Examples occur on public and private land and take the form of: direct interventions; stewardship (improving regular management activities as part of commodity production). Actual projects include: river and riparian restoration, reforestation, habitat improvement, sediment and erosion control, Habitat Conservation Plans, eradication of exotic species, species protection/re-introduction, wildlife management (hunting, predation control, release, relocation), and fisheries maintenance (fish screens, hatcheries, flow management).

2. Reserve management (national parks and monuments and wilderness protection) is a major expense for both the federal and state governments.

3. Research and assessment activities are not as broadly performed as restoration and enhancement. Some examples include SNEP, USDA Forest Service California Spotted Owl NEPA process, determining in-stream flow requirements, Timber Harvest Plan monitoring by CDF.

4. The activities of landowners who perform fire pre-suppression work remain poorly compensate as the state works to evaluate the outcome of up-front investments in planning and pre-fire management, versus the deferred costs of suppression, disaster relief, and rehabilitation.
 

The federal and state share of ecosystem investments in the region were calculated for an analysis conducted for the California Department of Forestry and Fire Protection (FRAP, 1998). That study reported that 61 percent of federal expenditures on the Sierra Nevada environment go toward reserve management (National Parks and Monuments). The State portion is distributed over a broader variety of programs (Table 6-1).

Table 6-1: Federal and State Ecosystem Investments in Sierra Nevada from a Partial Inventory of Government Programs (Average Annual Expenditures, 1990s)
 

$1,000s
FEDERAL
USEPA 127
NPS 5,865
BIA 1
USFWS 1,127
USDAFS (FIP) 43
USDAFSA 2,402
USDAFS (K-V/TSI)a 2,000
9,565
STATE
CDF CFIP/VMP 740
CDF&G 32
Coastal Conservancy 0
USDANR 4,724
CalTrans 778
6,275
Sources:

a USDA Forest Service, Timber Sale Program Annual TSPIRS Report: PSW, Fiscal Year 1994, includes Lassen and Modoc with among all other National Forests in the Sierra Nevada; all other data from FRAP, 1998.

Most ecosystem and resource management paid for by the State of California is conducted by various departments of the Resources Agency. The principal source of the Resources Agency's budget is the State General Fund and Special Funds. General Obligation Bond Funds and federal funds together contribute 14 percent of the agencyÕs budget statewide (Table 6-2). The Governor's FY 1996-97 Budget for the Resources Agency is $1.9 billion. An analysis of State environmental spending by the Planning and Conservation League Foundation (1997b) estimates that state-wide only 0.53 percent of General Fund revenue is allocated to actual protection, enhancement or promotion of the environment. Fire suppression costs of over $260 million were not included in this estimate.
 

Special Funds

Special Funds account for revenues from taxes, licenses and fees and their use is restricted to particular government functions and activities. Actual statewide expenditures of Special Funds amounted to $12.5 Billion in FY 1995-96 (Governor's Budget Summary, 1997-98). The various departments within the Resources Agency receive between two percent and ninety-six percent of their total funding from Special Funds (FRAP, 1998). Overall, 44 percent of the Resources Agency FY 1996-97 budget comes from Special Funds (Table 6-2). By contrast, a larger portion (68 percent) of the CalEPA budget is derived from Special Funds. CalEPA is less reliant on the State General Fund for funding (13 percent), relative to the Resources Agency (42 percent). These differences in agency financing reflect the different missions of the two agencies; a greater portion of funding for the regulatory CalEPA is derived from the permit fees, licenses, and taxes on the businesses and individuals it regulates.

Table 6-2: Estimated FY 1996-97 Resources Agency and CalEPA Expenditures ($1,000s)
 

General Fund Special Funds Selected Bond Funds Federal Funds Total Expenditures
 
Resources Agency 809,543 42% 842,692 44% 179,480 9% 93,262 5% $1,924,977
CalEPA 90,188 13% 478,587 68% 59,118 8% 79,811 11% $707,704
 
State-Wide $48,443,087 $13,592,694
Source: The Governor's Budget Summary, 1997-98, Schedule 9, as presented in FRAP, 1998.

Special Funds have several important features that make them appropriate for funding ecosystem management. Many of them have fund matching requirements, enabling the State to leverage money from both federal and private sources. Additionally, many funds are administered under the advice of parties knowledgeable of the resources affected by fund spending. For example, the Salmon Trollers Advisory Committee reviews candidate restoration projects seeking funding from the Commercial Salmon Stamp Fund. Special Funds are impermanent however, offering no lasting arrangement by which to fund ecosystem work. Special Funds can also be redirected to cover statewide budget shortfalls like the one California experienced in the early 1990s (FRAP, 1998).
 

The California Environmental License Plate Fund

The California Environmental License Plate Fund (ELPF) has a projected expenditure of $23 million in 1996-97. A closer look at this Special Fund reveals the manner in which such funds target specific objectives. It also demonstrates how this program has created an opportunity for exchange where one did not exist before, by allowing individuals to purchase license plates to support specific environmental goals.
 

The ELPF is financed from the sale of personalized license plates by the Department of Motor Vehicles. While the majority of such license plates are not "cause-related", many are purchased to support environmental goals, like the protection of Yosemite National Park, Lake Tahoe, the California Coast, or, social programs for children and veterans. For example, when a Yosemite Plate is sold, administrative fees are deducted by the Department of Motor Vehicles, then revenues are split evenly between a special account for Yosemite National Park, and the ELPF. Thus, while the $23 million from the ELPF will be spent to fund state-wide environmental programs, an additional fraction of revenues from the sale of license plates will go toward specific projects at Yosemite National Park. In 1995, the private, non-profit Yosemite Foundation received $635,400 (almost 25% of its annual revenues) from the sale of license platesÑa significant contribution to the one million dollars spent that year on over 30 separate projects in the Park (The Yosemite Fund, 1995).
 

The California Environmental Protection Program, which receives the bulk of revenues from the sale of personalized license plates, allocates funds to various divisions of state government for the following purposes:

· the control and abatement of air pollution

· the acquisition, preservation, restoration, of natural areas or ecological reserves

· environmental education

· protection of non-game species and threatened and endangered plants and animals

· protection, enhancement, and restoration of fish and wildlife habitat and related water quality

· the purchase of sensitive natural areas for the state park system and for local and regional parks

· reduction of the effects of soil erosion and the discharge of sediment into the waters of Lake Tahoe region

The following divisions of state government receive ELPF funds to implement the Program (dollar amounts indicated only for programs where FY 1996-97 allocation is greater than $500,000):
 

Secretary for Resources

Special Resource Programs
 

California Envir. Resources Eval. System (CERES) $804,000

California Conservation Corps

Colorado River Board

Department of Conservation

Department of Forestry and Fire Protection

Vegetation Management $3,227,000

Department of Fish and Game

Non-game Fish and Wildlife Activities $4,397,000

Departmental Administration $1,841,000

Wildlife Conservation Board

Transfer to the Habitat Conservation Fund $7,578,000

California Coastal Commission

Coastal Management Program $830,000

State Coastal Conservancy

Department of Parks and Recreation

Santa Monica Mountains

San Joaquin River

Delta Protection Commission

Coachella Valley Mountains

Department of Water Resources

Department of Pesticide Regulation

State Water Resources Control Board

Timber Harvest Plan Reviews $736,000

Office of Environmental Health Hazard Assessment

Source: Governor's Budget, 1997-98, Section 3210.

General Obligation Bond Funds

The State will drew approximately one billion dollars from General Obligation Bonds in 1996-97 to finance government operations (Governor's Budget Summary, 1997-98). Approximately $28 million were to finance CalEPA and the Resources Agency. The use of bond funds by the Resources Agency is principally for acquisition and protection of park land; CalEPA applies bond funds to an array of water, air and waste programs.
 

Bonds used specifically to fund natural resources and environmental protection represent 18 percent ($5.1 billion) of the State's general obligation bond authorizations with outstanding balances as of Dec. 31, 1996. Of these environmental bonds, 58 percent of the original authorizations are for programs in water quality, conservation, and reclamation. The remaining 42 percent are dedicated to parks and recreation programs which include land acquisitions and park development. Just over two billion dollars in authorized environmental and resource bonds have been redeemed, while $1.8 billion remain outstanding.
 

6.2 New sources
 

The Sierra Club advocates a restoration financing approach that eliminates the reliance on commercial harvesting to cover costs. This approach requires that new sources of funding be identified. The first option to consider for covering the approximately $375 million expense of forest restoration is to expand existing sources of funding. Beyond that, funding strategies new to the Sierra Nevada could be pursued.
 

6.2.1 Government Financing
 

Ecosystem investments derived from federal and state treasuries, are generally not tied to the productivity or value of the specific ecosystem in which the investment is made. Examples of the disconnection between ecosystem values that flow out of the ecosystem and investments flowing in are numerous. New investments should attempt to make this connection in order to develop sustainable flows of ecosystem commodities and values. This is particularly important in ecological restoration, since the costs are recurring costs and permanent funding is required.
 

Special Funds in the State budget are designed to address specific funding needs. The Environmental License Plate Fund described above is an example of the scale of funding that would go along way toward addressing restoration needs in the Sierra Nevada. That fundÕs annual $23 million expenditure, accumulated over ten years, would provide the appropriate scale of funding for restoration. A new Special Fund would be required of course, but this is an established mechanism for financing environmental protection and has fewer associated risks than many other options. Innovation would still be required in defining the beneficiaries of ecosystem values who would fill the fundÕs coffers. Attaching a fee to the license plate creates a large class of potential contributors, but other types of fees, stamps, and licenses can be created and attached to specific activities like recreation, forest road use, and commodity extraction. The cost of administering Special Fund programs, and the absence of political will among State Assembly members, may make this option less desirable than market-based approaches.
 

Fire cost recovery funds collected by the State are another potential source of money for forest restoration. Money collected by the California Department of Forestry and Fire Protection from fines, penalties, payments and reimbursements for the cost of fighting fires, is now deposited into the State General Fund. Between $2 and $4 million is collected annually in both northern and southern California. A policy change proposed by PCL Foundation would require that these funds be directed back to CDF for fire prevention activities (PCLF, 1997c).
 

New federal sources of restoration funding are few and far between in the current fiscally conservative era of governance. Proposals which shift federal costs to the private sector generally receive more favorable reception in Congress. One such proposal is that of the stewardship contract. An analysis of stewardship contracts conducted for the NRDC, describes their objective as improving the efficiency of timber management over that achieved under USDA Forest Service management. This would effectively eliminate the subsidy currently awarded timber companies when the Forest Service covers the costs of restoring areas impacted by timber harvesting. Driven by the opportunity to make a profit, timber companies would manage the forest in the most efficient way possible, subject to the constraints imposed on them by the Forest Service contract (Haxthausen, 1995). Under a stewardship contract, the Forest Service would contract with a timber company to maintain riparian zones, for example, in areas where harvests are occurring. The NRDC report estimates that if applied in the matrix lands of Sierra Nevada national forests (areas not under protection, and not old growth), approximately $1million could be generated for restoration annually.
 

The same report evaluated user fees for recreation on national forests. Given the total estimated annual ecosystem use values of $225 million for commercial recreation and $434 million for non-commercial recreation, there is a compelling basis for such fees. Revenues from developed campsites on National Forests are currently returned to the U.S. Treasury, rather than to the Forest where they are collected. If the fee revenue were paid directly to the Forest it would create an incentive for the USDA Forest Service to maximize recreation opportunities and increase revenues. Congressional action would be required before use fees for non-developed recreation could be established. Additional legislative action would probably be necessary before the revenues could be diverted from the Treasury back to the Forest. The NRDC concluded that recreational user fees provide an excellent potential source of revenue (as much as $100 million in gross annual revenues) for forest habitat restoration and other Forest Service needs (Haxthausen, 1995).
 

6.2.2 Market-based Approaches
 

The examples provided above of certified forest products and green power from biomass fuels rely on a market mechanism whereby environmental values are made purchasable in products in the market place. They require no government intervention in the market. A value added tax on recreation equipment offers a similar approach to generating revenues for parks in the state of Texas. The potential for these strategies to produce sustained funding for forest restoration can not be predicted and experimentation will be necessary.
 

Another untested funding strategy involves trying to integrate commodity production and biodiversity protection goals. Since forest restoration is a long-term effort in which desired end-states could take decades to produce, economists have reasoned that integrating the goals of restoration with sustainable timber management techniques could be made economically viable. This approach assumes that society values a particular kind of forest enough to encourage landowners to manage for its creation. It requires incentives to compensate landowners for creating forest biodiversity.
 

An approach examined by researchers in the Pacific Northwest looks at biodiversity management regimes to produce specific habitat and forest structures. It includes a sequence of thinning operations over longer rotations with retention requirements for snags and woody debris. Researchers models predicted that forest structures fairly quickly take on the characteristics found in late seral structures and produce larger trees of higher quality for timber markets (Lippke and Fretwell, 1997). An incentive contract, made between a government agency and a landowner, would spell out how the landowner would be compensated for their loss (foregone harvest revenues) and guaranteed the right to harvest in exchange for reaching certain habitat goals.
 
 
 
 

Financing of forest restoration in the Sierra Nevada will likely occur through a set of approaches which reflects the diversity of forest conditions and recognizes the range of forest ownership and management regimes. The approaches will rely most heavily on government sourcesÑboth existing and futureÑ but should also include market-based approaches which will require some experimentation. Funding mechanisms which make the connection between values flowing out of the forest ecosystem and investments flowing in, are more likely to provide sustainable funding. While biomass is a forest commodity with some value, incentives and subsidies will be required to bring this product to the market place at a scale commensurate with the volume of material that could be produced by aggressive fuel reduction approaches.
 
 

1. 1 We retained the use of the term ÒcauseÓ within quotation marks as a short hand for ÒGranger-causeÓ as it appears in the SNEP report. The purpose of the quotations is to signal the reader that caution should be observed in interpreting the results of the analysis of causal relationships as conducted using Granger causality methodology. The SNEP authors stress that, ÒGranger causality explores causality in a purely statistical sense. By itself, it does not imply that one phenomena causes another in an economy or society. However, it does provide evidence about the plausibility of hypotheses about causation drawn from experience, observation, or theory.Ó They further note that while Granger causality methodology cannot explain structurally how economic adjustment occurs, its estimates of economic impact are based on how the economy has actually responded in the past (time-series data being its basis), rather than on assumptions about the structure of the economy commonly used in input-output analyses.