TONGASS 

NATIONAL FOREST

Forest Service's 

Actions Related to Its 

Planned Timber 

Program Transition

Report to Congressional Requesters

April 2016

GAO-16-456

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-16-456, a report to 

congressional requesters

April 2016

TONGASS NATIONAL FOREST

Forest Service's Actions Related to Its Planned 

Timber Program Transition

Why GAO Did This Study

The Tongass National Forest, 

managed by the Forest Service within 

USDA, is located in southeast Alaska 

and is the nation’s largest national 

forest. Since the early 20th century, the 

Tongass has had a timber program 

based on harvesting old-growth trees, 

which are generally more than 150 

years old. In 2010, USDA announced 

its intent to transition the Tongass 

timber program to primarily harvest 

young growth, in part to help conserve 

remaining old-growth forest while 

maintaining a viable timber industry. As 

part of the planned transition, the 

Forest Service and other federal 

agencies identified actions they would 

take to support several economic 

sectors in southeast Alaska.

This report describes (1) steps the 

Forest Service has taken to assess 

whether its planned transition will meet 

the agency’s goal regarding a viable 

timber industry in southeast Alaska, 

(2) the status of actions the Forest 

Service and other federal agencies 

stated they would take to support the 

timber industry and other economic 

sectors during the transition, and 

(3) options suggested by agency 

stakeholders for improving the Forest 

Service’s management of the Tongass 

timber program. GAO reviewed laws 

and agency documents related to the 

Tongass and interviewed federal 

agency officials and representatives 

from a nongeneralizable sample of 

30 stakeholder organizations—

including tribal, state, and local 

governments and industry and 

conservation entities—selected to 

provide a range of perspectives. 

The Forest Service generally agreed 

with GAO’s findings.

What GAO Found

The Forest Service has initiated some steps to assess whether its planned 

transition to young-growth harvest on the Tongass National Forest will support a 

viable timber industry in southeast Alaska—a goal the Department of Agriculture 

(USDA) established as part of the transition. For example, the Forest Service 

reported refining the data it uses to estimate the amount of young-growth timber 

to be available for harvest over the next 100 years. Forest Service officials stated

the agency also began a study in 2015, partly in response to a recommendation 

that year from a USDA-convened advisory committee, to compare potential 

market prices for young-growth timber or products to the cost to harvest and 

process the timber, information that may help the agency assess the economic 

viability of a young-growth industry in the region. The agency expects the initial 

results from the study to be available in 2017.

USDA and the Forest Service identified various actions they and other federal 

agencies would take to support four economic sectors—timber, fishing and 

aquaculture, tourism and recreation, and renewable energy—during the transition 

to young-growth harvest on the Tongass, and the agencies have taken steps to 

implement some of these actions. For example, USDA stated that the Forest 

Service would improve its planning processes to assist the owners of small 

timber mills in the Tongass. According to Forest Service officials and documents, 

the agency has lengthened the duration of some timber sales to provide small 

timber mills some flexibility on when to harvest in the Tongass. However, the 

agencies have not implemented other actions identified. For example, the Forest 

Service has not implemented proposed funding increases for improving fish 

habitat and tourism facilities in the Tongass because of other spending priorities, 

according to Forest Service officials. 

Representative from the 30 stakeholder organizations GAO interviewed identified 

options they said would improve the agency’s management of the Tongass 

timber program. These options include improving the predictability of timber 

available for sale and increasing the agency’s focus on small timber mills and 

other timber-related businesses. Forest Service officials said they have taken 

some steps to address these options. For example, the majority of the timber 

industry stakeholders GAO interviewed emphasized the importance of the Forest 

Service offering a predictable amount of timber for sale from year to year for the 

timber industry to be able to make decisions about how to retool to accommodate 

smaller-diameter trees—which they said is important given potential changes to 

the industry with the planned transition to harvest young-growth trees. In an effort 

to improve predictability, the Forest Service has coordinated with the Alaska 

Division of Forestry on the timing of timber sales to try to ensure a more 

predictable and even flow of timber. However, stakeholders also expressed 

divergent opinions regarding the overall direction of the Tongass timber program, 

including the volume and location of timber to be harvested.

View GAO-16-456. For more information, 

contact Anne-Marie Fennell at (202) 512-3841 

or fennella@gao.gov. 
Page i GAO-16-456 Tongass Timber Program

Letter 1

Background 5

Forest Service Has Initiated Steps to Assess the Economic 

Viability of a Young-Growth Timber Industry in the Tongass 14

Federal Agencies Have Taken Steps to Implement Some Actions 

They Identified to Support the Timber Industry and Other 

Economic Sectors during the Transition 20

Stakeholders Identified Options They Said Would Improve 

Management of the Tongass Timber Program While Expressing 

Divergent Opinions about the Program’s Overall Direction 28

Agency Comments 31

Appendix I Forest Service Stakeholder Organizations GAO Interviewed 33

Appendix II Selected Characteristics of the Forest Service’s Alternatives for 

Transitioning the Tongass National Forest to Young-Growth 

Harvest 35

Appendix III Comments from the Department of Agriculture 36

Appendix IV GAO Contact and Staff Acknowledgments 37

Tables

Table 1: Estimated Annual Timber Harvest Levels for the Tongass 

National Forest under the Forest Service’s Draft 

Environmental Impact Statement Preferred Alternative 12

Table 2: Forest Service Stakeholder Organizations GAO 

Interviewed 33

Table 3: Selected Characteristics of the Forest Service’s Draft 

Environmental Impact Statement (EIS) Alternatives for 

Transitioning the Tongass National Forest to YoungGrowth Harvest 35

Contents
Page ii GAO-16-456 Tongass Timber Program

Figures

Figure 1: Map of Southeast Alaska, Showing the Boundaries of 

the Tongass National Forest 6

Figure 2: Volume and Acreage of Tongass National Forest Timber 

Harvest by Decade, 1910 through 2014 9

Figure 3: Timeline of Events Associated with the Forest Service’s 

Transition to Young-Growth Timber Harvest in the 

Tongass National Forest 11

Abbreviation List

CMAI culmination of mean annual increment of growth

EIS environmental impact statement

USDA Department of Agriculture

This is a work of the U.S. government and is not subject to copyright protection in the 

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Page 1 GAO-16-456 Tongass Timber Program

441 G St. N.W.

Washington, DC 20548

April 25, 2016

The Honorable Raúl M. Grijalva

Ranking Member

Committee on Natural Resources

House of Representatives

The Honorable Alan Lowenthal

Ranking Member

Subcommittee on Energy and Mineral Resources

Committee on Natural Resources

House of Representatives

The Honorable Peter DeFazio

House of Representatives

The Tongass National Forest, located in southeast Alaska, covers 

approximately 17 million acres and is the nation’s largest national forest. 

Managed by the Forest Service within the Department of Agriculture 

(USDA), the Tongass since the early 20th century has had a timber 

program based on harvesting old-growth trees—generally, trees more 

than 150 years old—that can be a source of high-quality lumber. Oldgrowth forests also can provide high-quality habitat for many wildlife 

species. In 2010, USDA announced its intent to transition the Tongass 

timber program to one based predominantly on the harvest of young 

growth—generally consisting of trees that have regrown after the harvest 

of old growth—in part to help conserve the remaining old-growth forest. A 

2013 memorandum from the Secretary of Agriculture stated that within 10 

to 15 years, the “vast majority” of timber harvested in the Tongass would 

be young growth.1 The memorandum also stated that the transition must 

be done in a manner that “preserves a viable timber industry” in southeast 

Alaska. The Forest Service announced in May 2014 that it would amend 

 1

USDA, Secretary’s Memorandum 1044-009: Addressing Sustainable Forestry in 

Southeast Alaska (Washington, D.C.: July 2013). 

Letter
Page 2 GAO-16-456 Tongass Timber Program

the forest plan for the Tongass to accomplish the transition.2 As part of 

the decision-making process for the amendment, in November 2015 the 

Forest Service released for public comment its proposed forest plan 

amendment and accompanying environmental analyses.3 The agency 

estimates that it will complete the forest plan amendment describing the 

agency’s final decision regarding how it will implement the planned 

transition in December 2016.

Some timber industry and conservation organization representatives have 

raised questions about the Forest Service’s management of its timber 

program, including its planned transition to young-growth harvest. For 

example, some timber industry representatives—citing the cost of 

retooling the industry to accommodate young-growth trees and the 

generally lower value of young-growth timber—have questioned whether 

a timber industry based on young growth is economically viable.4 In 

contrast, some conservation organizations have expressed concern that 

in its efforts to support the timber industry, the Forest Service will allow 

levels of old-growth harvest during and after the transition that are 

environmentally detrimental.

Because the Tongass comprises approximately 80 percent of the land 

base in southeast Alaska, its resources are important to the economic 

health of the region.5 For example, in addition to providing timber, the 

 2

79 Fed. Reg. 30,074 (May 27, 2014). The National Forest Management Act of 1976, Pub. 

L. No. 94-588, as amended, requires the Forest Service to develop a plan to manage the 

lands and resources of each national forest and revise each plan at least every 15 years. 

A forest management plan provides a framework for integrated resource management and 

for guiding project and activity decision making on the forest. Plans also include standards 

and guidelines that affect how, when, and where activities can occur and usually include 

provisions intended to protect specific resources such as cultural and historical resources 

and wilderness areas. 

3

USDA, Forest Service, Proposed Land and Resource Management Plan, R10-MB-769c 

(Washington, D.C.: November 2015), and Tongass Land and Resource Management Plan 

Amendment: Draft Environmental Impact Statement, R10-MB-769a (Washington, D.C.: 

November 2015). 

4

Old-growth timber generally has different wood characteristics than young-growth timber, 

such as more attractive grain patterns that make it suitable for use in higher-end finished 

products. 

5

The Forest Service has reported that the Tongass comprises 78 percent of the land base 

in southeast Alaska. See USDA, Forest Service, Tongass Land and Resource 

Management Plan: Final Environmental Impact Statement, R10-MB-603a (Washington, 

D.C.: January 2008). 
Page 3 GAO-16-456 Tongass Timber Program

Tongass’s lands and surrounding waters help support fisheries and 

tourism—two economic sectors that together represent approximately 25 

percent of employment in the region, according to Forest Service 

statistics. In announcing its planned young-growth transition, USDA 

recognized that the transition could reduce timber industry employment 

because it would shift the timber program away from its historical reliance 

on old-growth harvest. The department stated that four agencies—

USDA’s Forest Service, Farm Service Agency, and Rural Development 

and the Department of Commerce’s Economic Development 

Administration—would take steps to assist the timber industry and other 

economic sectors in southeast Alaska as part of the transition. These 

other sectors include fishing and aquaculture, tourism and recreation, and 

renewable energy.

You asked us to review the Forest Service’s management of the Tongass 

timber program. This report describes (1) steps the Forest Service has 

taken to assess whether its planned transition will meet the agency’s goal 

regarding a viable timber industry in southeast Alaska, (2) the status of 

actions the Forest Service and other federal agencies stated they would 

take to support the timber industry and other economic sectors during the 

transition, and (3) options suggested by agency stakeholders for 

improving the Forest Service’s management of the Tongass timber 

program.

To conduct our work, we reviewed relevant laws and agency policies, 

guidance, and other documentation related to the management of the 

Tongass in general and to the planned transition in particular. We also 

reviewed data on historical timber harvest from publicly available Forest 

Service reports and information on related agency expenditures and 

revenues for the Tongass. We interviewed officials and obtained 

information from the Forest Service’s Alaska Region and the Tongass 

National Forest, USDA’s Farm Service Agency and Rural Development, 

and the Department of Commerce’s Economic Development 

Administration. We also interviewed representatives of a nonprobability 

stratified sample of 30 Forest Service stakeholder organizations, including 

tribal, state, and local government officials; representatives of the timber, 

fishing and aquaculture, and tourism and recreation industries; and 

representatives of conservation organizations. We selected stakeholders 

to provide a range of perspectives on the Forest Service’s management 

of the Tongass timber program. Because this is a nonprobability sample, 

the views of the stakeholders interviewed are not generalizable to all 

potential stakeholders, but provide illustrative examples. Appendix I lists 

the stakeholders we interviewed. Interview questions were designed to 
Page 4 GAO-16-456 Tongass Timber Program

obtain officials’ and stakeholders’ views on the Forest Service’s 

management of the Tongass timber program and the agency’s planned 

transition to young-growth harvest.6

To describe steps the Forest Service has taken to assess whether its 

planned transition to young-growth harvest in the Tongass will meet the 

agency’s goal of preserving a viable timber industry in southeast Alaska, 

we reviewed Forest Service and stakeholder documents related to the 

potential economic effects of the transition. Documents reviewed included 

the Forest Service’s November 2015 draft forest plan amendment and 

accompanying environmental analyses, studies conducted by the Forest 

Service’s Pacific Northwest Research Station, and documents from 

timber industry and conservation organizations. To obtain additional 

context on these issues, we interviewed agency officials and stakeholders 

as described above. We also visited locations in the Tongass in March 

and July 2015, including previously harvested areas and active harvesting 

sites, as well as sites on nearby lands owned by the Sealaska 

Corporation,7 to observe timber management practices in the region.8

To describe the actions USDA and the Forest Service stated the agencies 

would take to support the timber industry and other economic sectors in 

and around the Tongass, we reviewed USDA and Forest Service 

documents and, in consultation with Forest Service officials, identified 

three key documents identifying agency steps intended to support the 

transition. The three documents were USDA’s 2011 investment strategy 

 6

In this report, we use the following qualifiers when summarizing stakeholders’ views: 

“few,” which we define as two or three stakeholders; “some,” which we define as four or 

more stakeholders; “the majority,” which we define as at least half of the stakeholders; and 

“most,” which we define as at least three-quarters of the stakeholders. 

7

On December 18, 1971, the Alaska Native Claims Settlement Act was enacted to resolve 

long-standing aboriginal land claims and to foster economic development for Alaska 

Natives. This federal law directed that corporations be created under Alaska state law to 

be the vehicles for distributing the settlement’s land and monetary benefits to Alaska 

Natives. Sealaska is one such corporation. It conducts substantial timber harvesting and 

other forest management activities. For more information on Alaska Native corporations, 

see GAO, Regional Alaska Native Corporations: Status 40 Years after Establishment, and 

Future Considerations, GAO-13-121 (Washington, D.C.: Dec. 13, 2012). 

8

We selected harvest sites to visit to observe the effects of different types of silvicultural 

treatments (e.g., thinning of previously harvested stands) on growth and the practices 

required to be taken to protect environmentally sensitive areas (e.g., not harvesting trees 

adjacent to streams). 
Page 5 GAO-16-456 Tongass Timber Program

for southeast Alaska, which the department developed to support the 

transition; a 2013 “leader’s intent” statement from Forest Service 

leadership in Alaska; and a 2013 memorandum from the Secretary of 

Agriculture.9 To determine the status of the actions identified, we 

reviewed documents, including meeting minutes from an interagency 

working group that included the four agencies involved, and interviewed 

officials from each of the four agencies. We also interviewed 

representatives of the 30 stakeholder organizations to obtain perspectives 

on the actions.

To identify options for improving the Forest Service’s management of the 

Tongass timber program, we interviewed representatives of the 30 

stakeholder organizations to identify their views on concerns and 

challenges associated with the Forest Service’s management of the 

Tongass timber program and its planned transition and options for 

addressing the challenges identified. We also interviewed agency officials 

to obtain their insights on the options stakeholders identified.

We conducted this performance audit from November 2014 to April 2016 

in accordance with generally accepted government auditing standards. 

Those standards require that we plan and perform the audit to obtain 

sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe that 

the evidence obtained provides a reasonable basis for our findings and 

conclusions based on our audit objectives.

The Tongass, one of 154 national forests managed by the Forest Service, 

is located in southeast Alaska and is the largest national forest in the 

country (see fig. 1). Given its size, the Tongass, within the Forest 

Service’s Alaska Region, is divided into 10 ranger districts. The Tongass 

 9

USDA, USDA Investment Strategy in Support of Rural Communities in Southeast Alaska 

2011-2013 (Washington, D.C.: November 2011); Forest Service, Leader’s Intent: Forest 

Stewardship and Young Growth Management on the Tongass National Forest (Juneau: 

January 2013); and USDA, Secretary’s Memorandum 1044-009: Addressing Sustainable 

Forestry in Southeast Alaska (Washington, D.C.: July 2013). 

Background
Page 6 GAO-16-456 Tongass Timber Program

is approximately 16.7 million acres, about 10 million acres of which are 

forested.10 Of the forested acres, the Forest Service classifies 

approximately 5.5 million acres as being “productive forest.”11

Figure 1: Map of Southeast Alaska, Showing the Boundaries of the Tongass 

National Forest

Note: Non-national forest system land includes land owned by the State of Alaska, Alaska Native 

corporations, and individuals.

 10Nonforested areas of the Tongass include areas covered by rock, ice or snow, or brush. 

11The Forest Service defines productive forest as forested areas that contain or can 

produce a minimum volume of timber per acre—specifically, either a volume of 8,000 

board feet of standing timber or an annual per-acre production of 20 cubic feet of timber. A 

board foot is a common measure for timber volume, equivalent to a board 12 inches long, 

12 inches wide, and 1 inch thick. 
Page 7 GAO-16-456 Tongass Timber Program

Like other national forests, the Tongass is managed for multiple uses, of 

which timber harvest is one. Timber harvest on national forests is 

generally carried out under timber sales conducted by the Forest Service. 

To conduct a timber sale, the Forest Service identifies a sale area, 

conducts the required environmental analyses, appraises the timber, and 

solicits bids from buyers interested in purchasing the timber. The Forest 

Service then prepares the timber sale contract and marks the sale 

boundary and the trees to be cut or left. The purchaser is responsible for 

cutting and removing the timber, with the Forest Service monitoring the 

harvest operations.

The Forest Service expends funds to prepare, manage, and oversee 

timber sales and to conduct required environmental analyses. It also 

receives revenues for the timber it sells.12 The Forest Service reported an 

average of $12.5 million annually in timber-related expenditures for the 

Tongass from fiscal years 2005 to 2014.13 During that period, it reported 

receiving an average of $1.1 million in revenues associated with timber 

harvested from the Tongass.

The National Forest Management Act requires the Forest Service to 

develop forest plans to govern management activities such as timber 

harvesting. For timber harvest activities, forest plans typically identify 

areas where timber harvest is permitted to occur and set a limit on the 

amount of timber that may be harvested from the forest. The Forest 

Service is required by the act to update forest plans at least every 15 

years and may amend a plan more frequently to adapt to new information 

or changing conditions. Under the current Tongass forest plan, as 

amended in 2008,14 the Forest Service authorized up to 267 million board 

feet to be harvested annually from the Tongass. The 2008 plan generally 

prohibits timber harvest in roadless areas and in certain environmentally 

sensitive areas, such as near streams and beaches. Forest plans are 

 12Revenues from timber sales are generally deposited into the General Fund of the U.S. 

Treasury or directed to Forest Service funds and accounts established for specific 

purposes. 

13These expenditures include funds related to the planning and administration of timber 

sales, information that was provided to us by Forest Service budget officials and reported 

in the agency’s annual State of the Tongass report. They do not include agency 

expenditures related to road construction and maintenance.

14USDA, Forest Service, Tongass National Forest: Land and Resource Management 

Plan, R10-MB-603b (Washington, D.C.: January 2008). 
Page 8 GAO-16-456 Tongass Timber Program

subject to the National Environmental Policy Act, under which the agency 

evaluates the likely environmental effects of its actions using an 

environmental assessment or, if the actions likely would significantly 

affect the environment, a more detailed environmental impact statement 

(EIS).15

The Forest Service began offering timber sales in the Tongass in the 

early 1900s. Timber harvest increased substantially in the 1950s, 

according to Forest Service statistics, as construction of pulp mills in 

Ketchikan and Sitka generated higher demand for Tongass timber (see 

fig. 2). Timber harvest peaked at an annual average of approximately 

494 million board feet in the 1970s. Harvest has since declined, to an 

annual average of approximately 46 million board feet for 2000 through 

2009 and to approximately 33 million board feet for 2010 through 2014. 

Timber industry employment has also declined, from approximately 2,500 

in 1982 to 249 in 2014, according to Forest Service documents.

 15Pub. L. No. 91-190 (1970), as amended. The National Environmental Policy Act has 

dual objectives: (1) requiring an agency to consider the significant environmental effects of 

a proposed action and (2) ensuring that the agency informs the public that it has 

considered environmental concerns in its decision-making process. While the act imposes 

these procedural requirements, it does not establish substantive standards. 
Page 9 GAO-16-456 Tongass Timber Program

Figure 2: Volume and Acreage of Tongass National Forest Timber Harvest by Decade, 1910 through 2014

Notes: Data come primarily from the Forest Service’s Forest Products Cut and Sold reports, 

accessible at http://www.fs.fed.us/forestmanagement/products/sold-harvest/cut-sold.shtml.

A board foot is a measure of timber volume equivalent to a board 12 inches long, 12 inches wide, and 

1 inch thick.

A number of laws and regulations have reduced the number of acres 

where timber harvest is allowed on national forests, both nationwide and 

in the Tongass. Specifically, according to statistics provided to us by 

Forest Service officials,16 of the approximately 5.5 million acres of 

productive forest in the Tongass, approximately 2.4 million acres are not 

available for harvest because of statutory provisions, such as wilderness 

 16A Forest Service official told us in March 2016 that the agency expects the number of 

acres where timber harvest will not be allowed in the Tongass to increase for a variety of 

reasons, which the agency refers to as “falldown.” We discuss this issue in greater detail 

later in this report. 
Page 10 GAO-16-456 Tongass Timber Program

designations, and another 1.8 million acres are not available for harvest 

because of other factors, such as USDA adopting the roadless rule.17

From the early 1900s through 2014, approximately 462,000 acres of 

timber were harvested in the Tongass, according to Forest Service 

officials, a figure representing approximately 8 percent of the productive 

forest originally found in the Tongass. Larger trees, which are important 

for wildlife habitat and biodiversity, have been harvested at a higher rate; 

the Forest Service has reported that 20 percent of Tongass acres 

containing the largest classes of trees have been harvested.18 Many of 

the areas in southeast Alaska with the largest classes of trees, however, 

are located on lands not managed by the Forest Service, such as lands 

owned by Alaska Native corporations or the State of Alaska. Across all 

land ownerships, the Forest Service reported that 32 percent of the acres 

in southeast Alaska with the largest trees had been harvested.

In 2010, USDA announced its intent to transition the Tongass timber 

program to one predominantly based on young growth. The Secretary of 

Agriculture subsequently said that the transition would allow for more 

ecologically, socially, and economically sustainable forest management. 

In November 2015, the Forest Service released for public comment a 

draft EIS that analyzed five alternatives for undertaking the transition to 

young-growth harvest in the Tongass.19 The Forest Service expects to 

 17The roadless rule, 66 Fed. Reg. 3244 (January 12, 2001), issued by USDA, generally 

prohibits timber harvesting in inventoried roadless areas within National Forest System 

lands nationwide, including the Tongass. The State of Alaska challenged the rule in court, 

arguing that USDA’s decision to issue the rule violated, among other statutes, the National 

Environmental Policy Act, Alaska National Interest Lands Conservation Act, and the 

Tongass Timber Reform Act. USDA settled the suit by agreeing to propose an 

amendment to the rule that would exempt the Tongass and issued such an amendment in 

2003. In 2009, in response to a challenge brought by the Native Alaskan village of Kake, 

among others, a federal district court struck down the exemption, holding that USDA had 

failed to provide a reasoned basis for issuing it. The State of Alaska’s effort to have this 

decision reversed in federal appellate court was unsuccessful. The state sought Supreme 

Court review, which the Court denied in March 2016. A separate challenge by the State of 

Alaska to the roadless rule, filed in 2011, is pending in federal court as of April 2016.

18USDA, Forest Service, Tongass Land and Resource Management Plan: Final 

Environmental Impact Statement. 

19USDA, Forest Service, Tongass Land and Resource Management Plan Amendment: 

Draft Environmental Impact Statement. We reviewed the draft EIS to identify the 

management alternatives the Forest Service identified and the outcomes the agency 

projected would result from each alternative, but we did not assess the economic or 

scientific information the Forest Service presented in the document. 
Page 11 GAO-16-456 Tongass Timber Program

issue a final EIS describing the agency’s final decision regarding how it 

will implement the planned transition in December 2016. Figure 3 shows 

a timeline of events associated with the planned transition to young 

growth.

Figure 3: Timeline of Events Associated with the Forest Service’s Transition to Young-Growth Timber Harvest in the Tongass 

National Forest

The draft EIS concluded that a substantial reduction in old-growth harvest 

relative to what the Forest Service allowed under the 2008 forest plan 

(e.g., by transitioning to young-growth harvest) would enhance the Forest 

Service’s old-growth conservation strategy for the Tongass over the long 

term. In reaching this conclusion, the draft EIS noted that while many 

wildlife species in the Tongass are associated with more than one habitat 

type, most inhabit old-growth forests or prey on species that inhabit oldgrowth forests, and that certain areas of old-growth forest that are 

particularly important to many wildlife species had been heavily 

harvested.20 It also recognized that recent legislation had removed from 

the Tongass certain old-growth reserves that had been designated as 

part of the agency’s old-growth conservation strategy.21

The five alternatives described different time frames for making the 

transition (see app. II). In developing the alternatives, the Forest Service 

established 46 million board feet as the projected annual timber sale 

 20Specifically, the draft EIS reported that low-elevation old-growth forests hold the highest 

value for many wildlife species because they remain relatively accessible during winter 

and that these types of old-growth forests had been disproportionately harvested in the 

Tongass. 

21In 2014, Pub. L. No. 113-291, § 3002, directed the conveyance of approximately 

70,000 acres of the Tongass to the Sealaska Corporation, subject to certain conditions. 
Page 12 GAO-16-456 Tongass Timber Program

quantity—the estimated quantity of timber that the agency expects to sell 

each year during the first 15 years of the transition. The Forest Service 

considered different mixes of old- and young-growth harvest over a 100-

year period, with the proportion of old-growth harvest decreasing over 

time until it reached the agency’s target of 5 million board feet.22 In the 

draft EIS, the Forest Service evaluated the five alternatives on a number 

of factors, including the time the agency projected it would take to reduce 

the annual old-growth harvest to 5 million board feet, and identified its 

“preferred alternative,” which the agency projected would allow it to make 

the transition within 16 years after adopting the forest plan amendment 

(see table 1).23

Table 1: Estimated Annual Timber Harvest Levels for the Tongass National Forest 

under the Forest Service’s Draft Environmental Impact Statement Preferred 

Alternative

Million board feet

Type of timber harvested Years 1-5a Years 6-10a Years 11-15a Years 16-20a

Young growth 9.0 9.4 25.0 66.0

Old growth 37.0 36.6 21.0 5.0

Total 46.0 46.0 46.0 71.0

Source: GAO presentation of information in Forest Service, Tongass Land and Resource Management Plan Amendment: Draft 

Environmental Impact Statement. | GAO-16-456

Notes: The Forest Service generally defines old-growth forests in southeast Alaska as those older 

than 150 years. Young growth generally consists of trees that have re-grown after the harvest of old 

growth.

A board foot is a measure of timber volume equivalent to a board 12 inches long, 12 inches wide, and 

1 inch thick.

a

Years are measured from the date the Forest Service adopts the forest plan revision for the Tongass 

National Forest.

To achieve the young-growth harvest levels projected in the preferred 

alternative, the Forest Service stated that it would allow some harvest in 

areas where it is not allowed under the 2008 forest plan, such as certain 

areas near streams and beaches. According to Forest Service officials, 

these areas were often among the first to undergo old-growth harvest in 

 22As noted, approximately 33 million board feet of timber was harvested annually from 

2010 through 2014, nearly all of which was old growth. 

23In preparing an EIS, an agency is to describe the action it is proposing as well as any 

alternatives it is considering. The EIS must also identify the agency’s preferred alternative 

if one or more exists. 40 C.F.R. § 1502.14.
Page 13 GAO-16-456 Tongass Timber Program

the 20th century and contain some of the most mature young-growth 

stands in the Tongass. Without access to these areas, Forest Service 

officials told us, it will be difficult for the agency to achieve the younggrowth harvest levels associated with the preferred alternative. As a 

result, Forest Service officials said, allowing limited harvest in these areas 

is needed for the agency to increase its harvest of young-growth timber in 

the early years of the transition sufficiently to reduce the harvest of oldgrowth timber.

Timber harvest in the Tongass also affects other economic sectors in 

southeast Alaska that depend on natural resources—including fishing and 

tourism, which, as noted, represent approximately 25 percent of 

employment in the region. For example, salmon, which spawn in streams 

in the Tongass, are key species for the commercial fishing industry, and 

timber harvest can alter water flow and sediment runoff, both of which can 

affect salmon. Timber harvest may also diminish the scenic and natural 

values that attract some visitors to the region, potentially affecting the 

tourism industry. Conversely, roads that are constructed as part of timber 

sales may provide easier access to hunting and berry-picking sites in the 

Tongass. In addition, numerous small communities are located in or 

adjacent to the Tongass. The Forest Service, in its draft EIS, recognized 

that its management decisions affect those communities and also that 

some communities may be disproportionately affected by these 

decisions.24

The USDA Investment Strategy in Support of Rural Communities in 

Southeast Alaska 2011-2013 identified four federal agencies with diverse 

missions—the Forest Service, Farm Service Agency, and Rural 

Development within USDA and the Economic Development 

Administration within the Department of Commerce—involved in actions 

 24The draft EIS noted that 22 of the 32 communities in southeast Alaska lost population 

from 2000 through 2014 and that declining population is often accompanied by declining 

local tax bases and school enrollments. The State of Alaska has a 10-student minimum for 

a school to receive state funding, and the Forest Service reported in the draft EIS that five 

schools in southeast Alaska had closed since 2000 and eight schools were close to 

dropping below the 10-student threshold. 
Page 14 GAO-16-456 Tongass Timber Program

to help support the timber industry and other economic sectors as part of 

the planned transition to young-growth harvest.25

• The Forest Service manages 154 national forests and 20 national 

grasslands for multiple uses, including timber, recreation, and 

watershed management and to sustain the health, diversity, and 

productivity of these lands to meet the needs of present and future 

generations.

• The Farm Service Agency administers a variety of programs 

benefitting farmers and ranchers, including farm commodity programs, 

farm loans, and conservation programs.

• Rural Development administers financial programs to support public 

facilities and services such as water and sewer systems, housing, 

health clinics, and emergency service facilities. It also provides grants, 

loans, and loan guarantees to farmers, ranchers, and rural small 

businesses to assist in developing renewable energy systems and 

improving energy efficiency.

• The Economic Development Administration fosters regional 

economic development efforts by, for example, offering grants to 

support development in economically distressed areas.

The Forest Service has initiated some steps to assess whether its 

planned transition to young-growth harvest in the Tongass is likely to 

support a viable timber industry in southeast Alaska—one of the key 

goals laid out in the Secretary of Agriculture’s 2013 memorandum 

discussing the transition. The Forest Service has estimated the volume of 

young-growth timber available for harvest over the next 100 years and 

has also identified a number of factors that may affect the viability of a 

young-growth timber industry in southeast Alaska. Forest Service officials 

told us the agency has also begun an effort to compare the potential 

market prices for young-growth timber or products to the cost to harvest, 

transport, and process the timber.

 25In addition to the four agencies identified in the Investment Strategy, Forest Service 

officials told us that another USDA agency, the Natural Resources Conservation Service, 

later joined the department’s efforts to support southeast Alaska during the young-growth 

transition by, for example, providing technical and financial assistance to private 

landowners for conservation actions. 

Forest Service Has 

Initiated Steps to 

Assess the Economic 

Viability of a YoungGrowth Timber 

Industry in the 

Tongass
Page 15 GAO-16-456 Tongass Timber Program

One key factor in the viability of the timber industry in southeast Alaska is 

the volume of timber—both young growth and old growth—available to be 

harvested.26 To support its planned transition to young-growth harvest, 

the Forest Service identified the number of acres of young-growth forest 

suitable for timber production in the Tongass—251,000 acres—and used 

a model that projects forest growth to estimate the volume of timber those

acres will contain over the next 100 years. Using this information, the 

Forest Service in November 2015 published its draft EIS that evaluated 

five alternatives for amending the forest plan for the Tongass to facilitate 

the transition to young-growth harvest.

In its draft EIS, the Forest Service reported taking a number of steps to 

refine its data on the amount of young-growth timber available for harvest 

in the Tongass. For example, it reported updating its young-growth timber 

inventory, including removing from agency databases those lands 

previously managed by the Forest Service that have been conveyed to 

other parties.27 It also reported contracting with a consultant to develop 

the model used to project future growth and timber yields from younggrowth timber stands in the Tongass.

The Forest Service also recognized that a number of factors could reduce 

the harvest of young-growth timber below the volume the agency 

estimated to be available and took steps to account for this potential 

reduction—referred to as “falldown”—in its estimates of young growth 

availability. Agency data on young-growth volume used in the draft EIS 

include some timber that will not be economically feasible to harvest or 

that is located in areas where harvest will not be allowed. For example, a 

Forest Service official told us that some young-growth areas consist of 

small or isolated areas where the volume of timber is insufficient to 

warrant the cost of harvesting it. In addition, timber harvest is not allowed 

in proximity to fish-bearing streams, and some young-growth areas may 

contain fish-bearing streams that were not previously identified by the 

agency. The official explained that factors such as these are likely to 

reduce the volume of young-growth that will be harvested but are often 

 26An industry’s dependence on the availability of inputs into its production is consistent 

with economic principles. 

27As noted, in 2014, Pub. L. No. 113-291, § 3002, directed the conveyance of 

approximately 70,000 acres of the Tongass to the Sealaska Corporation, subject to certain 

conditions. 

Forest Service Has 

Estimated the Volume of 

Young-Growth Timber 

Available for Harvest in the 

Tongass
Page 16 GAO-16-456 Tongass Timber Program

not discovered until the agency begins to prepare a timber sale in a 

particular area. In developing the alternatives for the draft EIS, the Forest 

Service reduced its estimate of the volume of young-growth timber 

available to be harvested to account for such falldown. The Forest 

Service also identified factors—such as the agency’s cost of preparing 

timber sales and potential delays because of appeals and lawsuits—that 

could affect its ability to sell the volume of timber it projected in the draft 

EIS.

The Tongass Advisory Committee—a group convened by the Secretary 

of Agriculture under the Federal Advisory Committee Act—also 

recognized the uncertainty surrounding the volume of timber that will be 

able to be harvested, and recommended in December 2015 that the 

Forest Service support a stakeholder group that would monitor progress 

in achieving the timber harvest levels proposed in the draft EIS.28 In 

January 2016, Forest Service officials told us they agreed that monitoring 

would be important to help the agency and its stakeholders understand 

the extent to which the agency was meeting its projected harvest levels, 

but had not decided on how they would do so. The officials said that they 

expected the final forest plan amendment to describe the agency’s 

planned monitoring activities. Officials also told us that the Forest Service 

intends to continue refining its young-growth timber data, noting, for 

example, that in July 2015 the agency signed a cost-share agreement 

with the State of Alaska to survey additional young-growth areas.

In addition to the supply of timber available, the viability of a younggrowth timber industry in southeast Alaska is affected by the demand for 

young-growth wood, which in turn is affected by the value (i.e., market 

price) of the wood products made from it; the value of these products 

depends in part on the cost of producing them. Young growth has 

 28The Secretary of Agriculture established the Tongass Advisory Committee in 2014 to 

provide advice and recommendations for “developing an ecologically, socially, and 

economically sustainable forest management strategy on the Tongass National Forest.”

The committee issued draft recommendations in May 2015 and final recommendations in 

December 2015. The committee has 15 members representing tribal organizations; 

conservation organizations; the timber industry; federal, state, and local governments; and 

other users of the Tongass. For more information, see 

http://www.fs.usda.gov/detail/tongass/home/?cid=stelprdb5444388. The committee was 

established under the Federal Advisory Committee Act, which articulates certain principles 

regarding advisory committees, including broad requirements for balance, independence, 

and transparency. Pub. L. No. 92-463, 86 Stat. 770 (1972), as amended. 

Forest Service Has 

Identified Factors Affecting 

the Viability of a YoungGrowth Timber Industry
Page 17 GAO-16-456 Tongass Timber Program

different wood characteristics, such as appearance, than old growth, 

which can affect its value. According to the draft EIS, southeast Alaska is 

one of the few places in western North America that produces wood from 

slow-grown, large trees (i.e., old growth). Wood from such trees may 

have more attractive grain characteristics and be used for higher-value 

products—such as musical instruments or certain types of window frames 

and doors—where appearance is important. In contrast, the draft EIS 

reported that wood from young-growth trees from the Tongass is more 

likely to be used for lower-valued products, such as dimension lumber 

(i.e., lumber used for structural framing), where appearance is not as 

important. With regard to production costs, the Forest Service has 

identified several challenges facing the timber industry in southeast 

Alaska—including higher labor and energy costs and the industry’s 

distance from markets in the contiguous United States—that raise its 

costs compared to other timber-producing areas of North America. On the 

other hand, southeast Alaska is closer to Asia—historically a significant 

market for timber from southeast Alaska—than these other timberproducing areas, which Forest Service officials told us could result in 

lower relative costs to ship timber from the Tongass to Asian markets. 

Forest Service officials told us they recognized these factors, and that 

both the agency and the industry are exploring the types of products that 

can be produced in an economically viable manner from Tongass young 

growth.

Young-growth timber harvested from the Tongass can be either shipped 

unprocessed out of the region or processed into lumber or other products 

in southeast Alaska. In either case, timber and products from the Tongass 

compete in broad economic markets and are likely to face challenges 

competing in those markets, according to the Forest Service’s draft EIS. 

For example:

• Young-growth logs for export.

29 Exporting sawlogs (i.e., 

unprocessed logs) is likely to be a major component of the southeast 

Alaska timber industry during the transition, according to the draft EIS. 

The draft EIS reported that most timber harvested in southeast 

Alaska, including from the Tongass and from lands owned by Alaska 

Native corporations and the State of Alaska, is exported as sawlogs to 

 29The Forest Service and stakeholders use the term “exported” to refer to timber shipped 

outside of southeast Alaska, regardless of whether that wood is shipped to other countries 

or to other parts of the United States. 
Page 18 GAO-16-456 Tongass Timber Program

Asia. The transition to young-growth timber may affect this market 

(e.g., by increasing the proportion of lower-value timber harvested), 

but the draft EIS indicates that the agency expects that timber 

purchasers are likely to continue to rely heavily on exporting sawlogs 

overseas. However, the Forest Service also recognized that the ability 

of purchasers to export sawlogs harvested from the Tongass is limited 

under current Forest Service policy to 50 percent of timber volume 

sold.30

• Young-growth lumber. The Forest Service, in its draft EIS, 

concluded that demand for lumber (as opposed to unprocessed logs) 

produced in southeast Alaska was relatively low. The existing export 

market for lumber produced in southeast Alaska is primarily for 

higher-graded lumber made from old-growth trees, while the major 

use for young-growth lumber processed in southeast Alaska is likely 

to be for dimension lumber (i.e., lumber used for structural framing), 

for which demand may be lower, according to the Forest Service. In 

its draft EIS, the Forest Service assumed that Asian purchasers would 

not be willing to substitute dimension lumber produced from younggrowth trees for the higher-graded lumber they had previously been 

purchasing. Dimension lumber produced in southeast Alaska could 

also be used within southeast Alaska or shipped to the contiguous 

United States.31 However, Forest Service officials and stakeholders 

told us that these markets are already served by relatively large, 

efficient mills located in the Pacific Northwest and that because 

production costs are higher in southeast Alaska, it will be challenging 

for dimension lumber from the Tongass to compete with lumber from 

existing suppliers. In addition, the Forest Service has reported that 

existing southeast Alaskan mills have limited capacity to process 

young growth and will likely have to invest in new milling equipment if 

they are to significantly expand their production of lumber produced 

from young growth. Forest Service officials and industry 

representatives also told us the industry is unlikely to invest the 

needed funds without more certainty about the amount of timber that 

will be offered for sale and harvested.

 30In 2007, the Alaska Regional Forester approved the Limited Interstate Shipment Policy, 

which generally allows purchasers to ship up to 50 percent of the total volume of a timber 

sale out of state, including to foreign markets, in whole log form. 

31The Forest Service, citing an estimate by a forest products consulting group, reported 

that the market for dimension lumber in southeast Alaska could total approximately 

100 million board feet annually. 
Page 19 GAO-16-456 Tongass Timber Program

• Young-growth utility logs. Another potential use for Tongass younggrowth noted in the draft EIS is as “utility logs”—that is, logs of 

insufficient quality to use for dimension lumber but suitable to be 

made into chips or used as biofuel. Increasing the use of biofuels in 

southeast Alaska could increase demand for utility logs from the 

Tongass and contribute to the viability of the timber industry in the 

region, according to the draft EIS. Doing so, however, would require 

investment in new infrastructure to produce and use these products. 

Forest Service officials told us that such investment is likely to be 

difficult because of both the uncertainty of demand in the region and 

the availability of large quantities of biofuel produced by facilities in 

the Pacific Northwest. Consistent with these statements, the Forest 

Service reported in a document developed to support the draft EIS 

that it found no evidence of market demand for utility logs from the 

Tongass.32

The viability of the timber industry depends upon the relationship between 

the market price of the final product (whole logs, dimension lumber, 

biomass, or other products) and the cost of producing it, including the 

cost to harvest, transport, and process it. In preparing the draft EIS, the 

Forest Service analyzed information regarding the economics of the 

Tongass timber industry. In 2015, the Forest Service also initiated a 

separate study of the costs of producing products from young-growth 

wood and the resulting value. These officials told us they initiated the 

study partly in response to the May 2015 draft recommendations from the 

Tongass Advisory Committee and said they expect to finalize the scope 

and time frames for the study in spring 2016 and to receive initial results 

in 2017. The Forest Service scientists leading the study told us the 

agency plans to harvest young-growth timber from randomly selected 

sites within the Tongass and process the timber in several mills in 

southeast Alaska and the Pacific Northwest. They said the agency 

intends to evaluate both the mills’ efficiency in processing the younggrowth wood and the strength and appearance of the resulting products 

and to obtain information related to the processing costs and value of the 

 32J. M. Daniels, M. D. Paruszkiewicz, and S. J. Alexander, Tongass National Forest 

Timber Demand, Projections for 2015 to 2030, Gen. Tech. Rep. PNW-GTR-934 

(forthcoming). 

Forest Service Has Begun 

an Effort to Compare the 

Potential Prices for YoungGrowth Products to the 

Cost of Producing Them
Page 20 GAO-16-456 Tongass Timber Program

products.33 Forest Service officials said the study’s results may help the 

agency assess the economic viability of a Tongass young-growth timber 

industry. Even with these steps, however, in its November 2015 draft EIS 

the Forest Service stated that there is a high degree of uncertainty 

surrounding its goal of preserving a viable timber industry.

USDA and the Forest Service identified various actions they and other 

federal agencies would take to support the timber industry and other 

economic sectors during the transition to young-growth harvest in the 

Tongass, and the agencies have taken steps to implement some of these 

actions. These actions, which are identified in three documents issued by 

USDA and the Forest Service since 2010,34 focus on four economic 

sectors in southeast Alaska: timber, fishing and aquaculture, tourism and 

recreation, and renewable energy.35 However, the agencies have not 

implemented other actions they said they would take, because of other 

priorities or consideration of other approaches, according to agency 

officials.

USDA and the Forest Service have taken steps to implement some of the 

actions they stated they would take to support the timber industry in 

southeast Alaska during the young-growth transition. For example:

 33The study will not examine the cost of harvesting and transporting young-growth timber 

because the size and location of harvest sites (which affect harvest and transport costs) in 

the study are not representative of typical timber sales, according to Forest Service 

officials. One of the officials told us that the agency already has estimates of these costs. 

34Our review focused on actions the agencies identified in three documents: USDA, USDA 

Investment Strategy in Support of Rural Communities in Southeast Alaska 2011-2013; 

Forest Service, Leader’s Intent: Forest Stewardship and Young Growth Management on 

the Tongass National Forest; and USDA, Secretary’s Memorandum 1044-009: Addressing 

Sustainable Forestry in Southeast Alaska. 

35Forest Service and Rural Development officials told us the agencies contracted with the 

Juneau Economic Development Council to work with regional interests related to these 

sectors. The Juneau Economic Development Council is a private nonprofit corporation 

that receives assistance from the City and Borough of Juneau and the Juneau Chamber of 

Commerce. 

Federal Agencies 

Have Taken Steps to 

Implement Some 

Actions They 

Identified to Support 

the Timber Industry 

and Other Economic 

Sectors during the 

Transition

Timber
Page 21 GAO-16-456 Tongass Timber Program

• The USDA Investment Strategy in Support of Rural Communities in 

Southeast Alaska 2011-2013 stated the Forest Service would improve 

its Tongass timber planning processes by simplifying small timber 

sales to assist small-mill owners.36 Forest Service officials told us the 

agency has met with small-mill owners to discuss ways to address the 

mill owners’ needs. As a result of this outreach, the Forest Service 

lengthened the duration of some timber sale contracts for small sales; 

according to Forest Service officials, small sale contracts typically last 

from 1 to 3 years, but the agency lengthened the duration to 4 to 

6 years for 8 of the approximately 60 small sales in the Tongass in 

fiscal years 2014 and 2015. This action provided small-mill owners 

with flexibility to harvest at more-advantageous times, according to 

Forest Service officials.

• The 2013 Secretary’s Memorandum 1044-009: Addressing 

Sustainable Forestry in Southeast Alaska stated that USDA would 

continue to work with Congress to exempt a limited amount of young 

growth in the Tongass from the general prohibition on harvesting a 

stand until it reaches its maximum growth rate.37 The memorandum 

said providing this flexibility is essential for developing economically 

viable young-growth projects within the timeframe of the transition. In 

2014, Congress approved additional flexibility, which gave the 

Secretary of Agriculture authority to allow the harvest of these younggrowth trees in areas that are available for commercial timber 

harvest.38

 36According to the Forest Service, all but one mill in southeast Alaska have 12 or fewer 

employees, and a Forest Service official told us the agency considers these to be small 

mills. The remaining mill employs about 40 people and is considered medium-sized by the 

Forest Service. 

37The National Forest Management Act generally prohibits harvesting of tree stands that 

have not reached their culmination of mean annual increment of growth (CMAI). 16 U.S.C. 

§ 1604(m)(1). This is the age in the growth cycle of an even-aged stand of trees at which 

the average annual rate of increase of volume is at a maximum—meaning that once a 

stand of trees reach CMAI, its annual growth rate begins to slow. According to USDA 

documentation, CMAI may be thought of as the most efficient time to harvest with respect 

to tree growth. 

38Specifically, the legislation authorizes the harvest of trees prior to reaching CMAI in 

areas that are available for commercial timber harvest under the Tongass forest plan to 

facilitate the transition from commercial timber harvest of old growth stands. Pub. L. No. 

113-291 § 3002(e)(4)(A). This authority is subject to certain limitations, including that 

covered timber sales may not exceed 15,000 acres during the 10-year period beginning 

on the law’s enactment date (December 19, 2014), with an annual maximum of 3,000 

acres sold. Id. at § 3002(e)(4)(B)(i). 
Page 22 GAO-16-456 Tongass Timber Program

• The 2013 Leader’s Intent: Forest Stewardship and Young Growth 

Management on the Tongass National Forest document, signed by 

officials from the Forest Service’s Alaska Region and the Tongass, 

stated the Forest Service would expand collaborative projects and 

partnerships with local communities, businesses, and nonprofit groups 

to support job creation through sustainable forest management. In 

2015 the Forest Service entered into a partnership with the Native and 

Rural Student Center, which provides leadership training and 

academic support to Native Alaskan college students on University of 

Alaska campuses, and the Hoonah Indian Association, a tribal 

government in southeast Alaska. Forest Service officials told us that 

under this partnership, a local work crew is being developed to gain 

forestry skills and complete projects such as tree thinning in the 

Tongass. The officials said the first projects under this partnership are 

expected to be completed in 2016 or 2017.

• Documents on the transition issued by USDA and the Forest Service 

stated that the Forest Service would support the transition by studying 

young-growth supply, the cost of harvesting, transporting, and 

processing young-growth timber, and the value of the resulting 

products. As discussed previously, the agency has taken steps to 

study these issues.

The agencies have not implemented other actions they said they would 

take because of other priorities or consideration of other approaches. For 

example:

• The Investment Strategy stated that the Forest Service would promote 

and facilitate the use of young-growth timber in southeast Alaska by 

using young-growth wood for cabins and other recreational structures, 

and that the Forest Service would request an additional $1 million in 

funding to construct cabins made from young-growth timber in highvisibility campgrounds. However, Forest Service officials told us that 

the agency did not request funding because of other spending 

priorities, and that no cabins have been built since the Investment 

Strategy was published in 2011.39 A few conservation organization 

stakeholders we interviewed told us that the Forest Service’s limited 

progress in using young-growth timber in its own facilities hinders the 

 39Forest Service officials identified two cabins that were built using young-growth timber 

before the Investment Strategy was published: one in the Sitka Ranger District in 2008 

and one in the Wrangell Ranger District in 2010. 
Page 23 GAO-16-456 Tongass Timber Program

agency’s ability to achieve its goal of demonstrating the economic 

viability of producing young-growth products in southeast Alaska. 

Forest Service officials told us that other approaches, such as 

demonstrating the demand for dimensional lumber, might be a better 

option than constructing cabins for showing the economic viability of 

young-growth products. Forest Service officials told us the agency is 

collaborating with the National Forest Foundation to work with a local 

conservation group to demonstrate uses for young-growth timber, 

including the construction in 2012 of a private home built primarily 

from young-growth timber.40

• The 2013 Secretary’s Memorandum asked the Forest Service to work 

with Rural Development to develop a plan by December 31, 2013, for 

providing financial assistance to help the timber industry retool to 

handle young-growth timber. As of December 2015, the agencies had 

not developed such a plan because they had been focusing on other 

priorities related to the transition, such as completing the draft EIS, 

according to Forest Service officials. Forest Service officials told us in 

January 2016 that they were developing a request for proposal for an 

outside party to conduct an assessment of the industry’s retooling 

needs and estimated that results from the assessment might be 

available in 9 to 12 months. They also said that the study the agency 

initiated in 2015 on the economic viability of the young-growth timber 

industry would provide information to inform retooling options. Rural 

Development officials told us the agency could provide loans to help 

the industry retool.

The agencies have taken steps to implement some of the actions they 

stated they would take to support fishing and aquaculture in southeast 

Alaska. For example:

• USDA’s Investment Strategy stated the agencies would strengthen 

the aquaculture industry in southeast Alaska by providing support to 

entrepreneurs in the industry. Rural Development officials reported 

that in fiscal years 2012 and 2013 the agency guaranteed four loans, 

totaling about $1.4 million, that supported fishing and aquaculture 

development in the region. Similarly, the Economic Development 

 40The National Forest Foundation is a nongovernmental organization chartered by 

Congress that works with communities to restore and enhance national forests and 

grasslands. 

Fishing and Aquaculture
Page 24 GAO-16-456 Tongass Timber Program

Administration reported awarding approximately $1.4 million in grants 

in fiscal years 2013 and 2014 to support fishing and aquaculture in 

southeast Alaska, most of which was awarded to the Hydaburg 

Cooperative Association, a tribe in southeast Alaska, for the 

renovation of a cold-storage facility to develop a specialty seafood 

processing plant.

• The Investment Strategy also stated the agencies would identify and 

promote ways to include aquaculture development among traditional 

USDA agriculture programs. Farm Service Agency officials told us the 

agency used an existing farm loan program to provide five loans since

2011 to parties entering the shellfish industry. These loans totaled 

about $160,000 and were used to fund operational and capital 

expenses, according to these officials.

• The Investment Strategy also stated the agencies would take steps to 

restore degraded salmon streams in an effort to increase salmon 

productivity. Forest Service officials estimated, based on budget 

documents, that the agency’s annual funding for watershed 

restoration in the Tongass averaged approximately $1.1 million for 

fiscal years 2011 through 2015. Restoration projects included 

replacing and resizing road culverts to improve fish passage and 

placing woody debris into streams to improve fish habitat.

In contrast, the Forest Service did not implement a proposed increase in 

funding for fishing and aquaculture because of other priorities. The 

Investment Strategy stated that the Forest Service proposed tripling the 

annual funding for watershed restoration (i.e., actions intended to improve 

fish habitat in streams and thereby support the health of fish populations) 

in the Tongass to $4.6 million annually. As noted, however, Forest 

Service officials estimated that agency funding for such activities 

averaged approximately $1.1 million for fiscal years 2011 through 2015. A 

Forest Service fisheries official told us that it has been difficult to increase 

funding for watershed restoration in Alaska because watershed conditions 

in Alaska are generally better than elsewhere and the region is therefore 

a lower priority for the agency.

The agencies have implemented some of the actions they stated they 

would take to support tourism and recreation in southeast Alaska. For 

example:

Tourism and Recreation
Page 25 GAO-16-456 Tongass Timber Program

• The Investment Strategy stated that the Forest Service would 

increase guided access to public land. Since 2012, the Forest Service 

has increased the amount of commercial outfitting and guiding 

services it allowed in the Mendenhall Glacier Recreation Area, near 

Juneau, to meet increased demand for guided services and access to 

this site. This change has increased visitation to the Mendenhall 

Glacier by an estimated 15,000 visitors annually and, from 2012 

through 2015, generated an additional $5 million in revenues for tour 

companies, according to a contractor hired by the Forest Service.41

• The Investment Strategy also stated that USDA agencies would take 

steps to develop recreation infrastructure. Forest Service officials told 

us the agency conducted trail improvement projects in 2015 on the 

Juneau, Petersburg, and Craig Ranger Districts.

In contrast, the Forest Service did not request an increase in funding for 

agency projects supporting tourism and recreation as proposed in 

USDA’s Investment Strategy. Specifically, the strategy identified 

$1.9 million in planned expenditures for fiscal years 2012 and 2013 and 

recommended $8.4 million in additional funding for those 2 years. Forest 

Service officials told us, however, that they did not request additional 

funding for the Tongass and that the budget for the agency’s Alaska 

Region declined during this time. They estimated that the region’s budget 

for tourism and recreation decreased from $8.8 million in fiscal year 2010 

to $6.7 million in fiscal year 2013—a decline of about 24 percent.42 The 

officials estimated that the budget for fiscal year 2014 was $7.1 million, 

which was an increase of about 4 percent over the previous year’s level 

but lower than the 2010 funding level of $8.8 million. The selected tourism 

and recreation industry representatives we interviewed expressed 

concern about reduced funding, as they did not think the Forest Service 

would be able to maintain the current inventory of cabins, trails, and other 

recreation facilities. Forest Service officials told us the agency has 

focused on maintaining existing facilities rather than constructing new 

 41From December 2011 through June 2015, the nonprofit Juneau Economic Development 

Council was contracted by the Forest Service to conduct economic development research. 

The council worked with the Forest Service and other federal and state agencies to 

support economic development in southeast Alaska. 

42Officials provided estimates of these amounts because funds for tourism and recreation, 

which include funds from two larger “budget line items,” are not separately identified in the 

Forest Service’s accounting system. 
Page 26 GAO-16-456 Tongass Timber Program

ones but determined in 2014 that it would close up to 10 of the 143 cabins 

in the Tongass given budget reductions.43

The agencies have taken steps to implement some of the actions they 

identified to support renewable energy development in southeast Alaska 

during the transition.44 For example:

• USDA’s Investment Strategy stated that the Forest Service would 

provide technical assistance related to the planning and installation of 

biomass energy systems. The Forest Service reported providing such 

assistance from 2011 through 2015 to at least 19 localities, 

businesses, tribal entities, and individuals. Assistance included 

identifying potential biomass projects in communities, evaluating the 

design and economic viability of projects, answering questions about 

biomass technology use, and identifying funding sources for projects. 

Forest Service officials highlighted a project at the Ketchikan 

International Airport as an example of the agency’s efforts. The Forest 

Service provided technical assistance and a $143,000 grant to 

convert the airport terminal to a biomass heating system. The project 

was scheduled to be completed in 2016, according to a Forest 

Service official. Similarly, the agency reported providing various types 

of assistance—including public presentations and education, fuel 

assessments, and design reviews of plans—to support the 

development of a biomass system for community facilities in Haines.

• The Investment Strategy also stated the USDA agencies would work 

to develop demand for biomass energy. Agencies have taken steps to 

do so. For example, Rural Development officials said that in fiscal 

years 2012 through 2014 the agency provided at least three grants, 

 43The Senate committee report accompanying the Department of the Interior, 

Environment, and Related Agencies Bill for fiscal year 2016 noted that funding for 

recreation, trails, and facilities in the Alaska Region had declined at a disproportionately 

higher rate compared to other regions. The report directed the Forest Service to prioritize 

such funding for the Tongass and to bring investments in the Alaska Region more in line 

with funding nationwide. S. Rep. No. 114-70 at 63 (2015). 

44Renewable energy refers to the generation of electricity, fuels, or heat through the use 

of resources that are continually replenished. Sources of renewable energy include 

biomass fuel, hydropower, solar, and wind. For more information on the development of 

renewable energy on federal lands, see GAO, Renewable Energy: Agencies Have Taken 

Steps Aimed at Improving the Permitting Process for Development on Federal Lands, 

GAO-13-189 (Washington, D.C.: Jan. 18, 2013). 

Renewable Energy
Page 27 GAO-16-456 Tongass Timber Program

totaling about $1.2 million, to support renewable energy development 

in southeast Alaska.

• In the Investment Strategy, USDA said the Forest Service would 

approach the Southeast Conference organization about sponsoring 

the development of a biomass energy plan for the region.45 The 

Forest Service has worked with the Southeast Conference to assess 

the potential for increasing the use of biomass energy in southeast 

Alaska and, in September 2015, published the Community Biomass 

Handbook, which offers instructions on designing and planning 

biomass projects as well as information on where biomass systems 

are being used in the region.46 The agency’s partnership with the 

Southeast Conference resulted in about 30 feasibility studies funded 

predominantly by the Forest Service and approximately 10 biomass 

systems in southeast Alaska, according to Forest Service officials.

• Also in the Investment Strategy, USDA said the Forest Service would, 

where feasible, substitute woody biomass for diesel fuel to meet the 

energy needs of southeast Alaska. The agency has taken some initial 

steps to do so. For example, officials told us that the agency was 

converting its facility in Sitka from diesel fuel to biomass energy, a 

project they expect the agency to complete in summer 2016. The 

Forest Service had previously converted a visitor center in Ketchikan 

to a wood-fueled heating system, although the building is no longer 

using this system, which the agency reported was too large for the 

facility and had high operating costs.47

The agencies, however, no longer plan to implement some actions they 

previously identified, according to agency officials. For example, the 

Investment Strategy stated that, to help “kick start” the biomass energy 

industry in southeast Alaska, the Farm Service Agency would encourage 

the use of a nationwide program that provides financial incentives to the 

 45The Southeast Conference, a nonprofit organization composed of 180 member 

organizations from 32 regional communities, advocates for resource management and 

economic development planning issues in southeast Alaska. 

46Forest Service, Community Biomass Handbook, Volume 2: Alaska, Where Woody 

Biomass Can Work, PNW-GTR-920 (Portland, OR: 2015). 

47Forest Service officials told us in January 2016 that the agency was working with the 

General Services Administration in an effort to connect the visitor center to an existing 

biomass heating system. 
Page 28 GAO-16-456 Tongass Timber Program

biomass industry. A Farm Service Agency official in southeast Alaska, 

however, told us the nationwide program is not being used in the region 

because funding is limited and national program officials had decided to 

target existing biomass industry businesses rather than new ones, and 

there were no such businesses in southeast Alaska.

Representatives we interviewed from the 30 selected Forest Service 

stakeholder organizations identified a variety of options they said would 

improve the agency’s management of the Tongass timber program. 

These stakeholders also expressed strong differences of opinion 

regarding the overall direction of the Tongass timber program.

Options stakeholders identified for improving the Forest Service’s 

management of the Tongass timber program included:

• Improving predictability of timber available for sale. The majority 

of the seven timber industry stakeholders we interviewed told us the 

Forest Service does not offer a predictable amount of timber for sale 

from year to year. These stakeholders emphasized the importance of 

predictability for the timber industry to be able to make decisions 

about how to retool to accommodate young-growth trees—which they 

said is important given potential changes to the industry as a result of 

the planned transition. Options for improving predictability identified by 

these timber industry stakeholders ranged from offering timber sales 

under longer-term contracts—as a means of providing greater 

certainty over the quantity of timber they will be allowed to harvest in 

future years—to transferring significant acreage from the Tongass to 

the State of Alaska, an entity some timber industry stakeholders 

viewed as offering a more predictable timber supply than the Forest 

Service. On the other hand, one of the conservation organization 

stakeholders we interviewed said that the Forest Service could 

Stakeholders 

Identified Options 

They Said Would 

Improve Management 

of the Tongass Timber 

Program While 

Expressing Divergent 

Opinions about the 

Program’s Overall 

Direction

Stakeholders Identified 

Various Options for 

Improving the 

Management of the 

Tongass Timber Program
Page 29 GAO-16-456 Tongass Timber Program

improve the predictability of supply by reducing the volume of timber it 

offers for sale and offering timber for sale in locations where there will 

be less environmental impact, steps the stakeholder said could 

reduce opposition to proposed timber sales and increase the 

likelihood of sales being implemented in a timely manner.48

In an effort to improve the predictability of its timber supply, the Forest 

Service is participating in the collaborative “all lands, all hands” effort 

with other southeast Alaska landowners to explore ways of achieving 

greater economic efficiency by sharing infrastructure and jointly 

planning projects. As part of this effort, Forest Service officials told us 

they have coordinated with the Alaska Division of Forestry on the 

timing of timber sales to try to ensure a more predictable and even 

flow of timber offered to the timber industry. Alaska Division of 

Forestry officials told us that this effort has been helpful but that 

continued work will be needed to improve collaboration among 

landowners on issues such as sharing costs for maintaining roads and 

other infrastructure.

• Increasing focus on small timber operators.49 Some of the 

30 stakeholders we interviewed said that the Forest Service could do 

more to support the small operators that also play a role in local 

economies throughout the Tongass by harvesting small amounts of 

old-growth timber. These stakeholders suggested the Forest Service 

take steps such as offering smaller sales and making other changes—

such as allowing small operators greater use of roads constructed in 

conjunction with larger sales—to make it easier for smaller operators 

to access timber. As previously discussed, Forest Service officials told 

us they had taken several steps to assist smaller operators, including 

 48In 2013, the Forest Service approved the Big Thorne timber sale, which was designed to 

provide the southeast Alaska timber industry with a steady supply of old-growth timber for 

several years and thus help sustain the industry until more young-growth timber was 

available for harvest. The Big Thorne timber sale is being challenged in court by 

conservation organizations. There are three cases challenging the sale: Southeast Alaska 

Conservation Council, et al. v. U.S. Forest Service, et al., No. 1:14-cv-00013-RRB; In re 

Big Thorne Project and 2008 Tongass Forest Plan, 1:14-cv-0014-RRB; Cascadia 

Wildlands et al. v. Cole, No. 1:14-cv-00015-RRB. The district court consolidated these 

cases and dismissed them. Plaintiffs’ appeal is pending before the Ninth Circuit. 

Southeast Alaska Conservation Council, et al. v. U.S. Forest Service, et al., Nos. 15-

35232, 15-35233, 15-35244.

49Timber operators include not only mills but also others involved in the timber sector, 

such as loggers and truck drivers. 
Page 30 GAO-16-456 Tongass Timber Program

lengthening the duration of some small timber sales. Officials told us 

that for two timber sales in 2012 and 2013, they kept several roads 

open for approximately 2 years after the sales were completed to 

allow access to remaining timber by smaller operators.

• Improving Forest Service collaboration. Some of the stakeholders 

we interviewed also said the Forest Service needed to collaborate 

more with the industries and communities affected by the transition—

for example, by involving community leaders earlier in the decisionmaking process and better considering the effects of management 

decisions on specific locations—if the young-growth transition is to be 

successful. Similarly, the Tongass Advisory Committee emphasized 

the need for the Forest Service to become more flexible and 

responsive to timber industry and community interests for the 

transition to be successful. To help achieve that goal, the committee 

said Forest Service leadership needed to provide clear and consistent 

direction to agency staff, and the agency needed to increase the use 

of collaborative processes in its management decisions.

Forest Service officials identified various approaches the agency uses 

to collaborate with the industries and communities affected by the 

transition. For example, they said that the agency has participated in 

the Tongass Collaborative Stewardship Group, a region-wide forum 

for communities and landowners to work together to align Forest 

Service projects with local and regional priorities. The Forest Service 

has also participated in a number of smaller collaborative groups 

relating to specific geographic areas in the Tongass, including the 

communities of Hoonah, Kake, and Sitka, and the Staney Creek 

watershed on Prince of Wales Island. One such group, the Hoonah 

Native Forest Partnership, includes the Forest Service, nonfederal 

landowners in the area, and other entities, such as the Hoonah Indian 

Association.50 The partnership formed in 2015 and is still in the early 

stages of planning and identifying specific work, according to a Forest 

Service official. The partnership is taking a watershed planning 

approach intended to balance economic, social, and ecological 

outcomes and consider both timber harvest and other important 

resources, such as salmon and deer, that rely on forests.

 50Seven entities are members of the partnership: the Sealaska Corporation, the Hoonah 

Indian Association, the Huna Totem Corporation, The Nature Conservancy, the City of 

Hoonah, the Alaska Department of Fish and Game, and the Forest Service. 
Page 31 GAO-16-456 Tongass Timber Program

In discussing their views on possible options for improving the Forest 

Service’s management of the Tongass timber program, stakeholders we 

interviewed also expressed strong differences of opinion regarding the 

overall direction of the program. Stakeholders expressed differing 

opinions on such diverse topics as the volume of timber that should be 

harvested, the locations where harvest should be allowed, and the 

proportion of harvest that should be young growth. For example, 

regarding harvest locations, some of the stakeholders we interviewed 

were concerned that the Forest Service is considering harvesting timber 

in environmentally sensitive areas such as near streams and beaches, 

which provide important wildlife habitat. In contrast, the majority of timber 

industry stakeholders and a few local government stakeholders we 

interviewed told us that the Forest Service already placed too much 

emphasis on minimizing the environmental effects of timber harvest and 

that the agency did not need to take additional steps to consider the 

environmental effects of the transition. Regarding the proportion of 

harvest that should be young growth, the majority of the timber industry 

stakeholders we interviewed stated that the harvest should continue to 

consist of old-growth trees in order to be economically viable for the 

timber industry, while other stakeholders stated that old-growth harvest 

should end entirely or be reduced to a small amount.

We provided a draft of this report for review and comment to the 

Departments of Agriculture and Commerce. The Forest Service, 

responding on behalf of the Department of Agriculture, generally agreed 

with our findings and described actions it is taking in an effort to support 

various economic sectors in southeast Alaska (see app. III). The 

Economic Development Administration, responding on behalf of the 

Department of Commerce, stated in an email sent April 11, 2016, that it 

had no comments on our draft report.

We are sending copies of this report to the appropriate congressional 

committees, the Secretaries of Agriculture and Commerce, the Chief of 

the Forest Service, the Administrator of the Farm Service Agency, the 

Under Secretary for Rural Development, the Chief Operating Officer of 

the Economic Development Administration, and other interested parties. 

In addition, the report is available at no charge on the GAO website at 

http://www.gao.gov.

If you or members of your staff have questions about this report, please 

contact me at (202) 512-3841 or fennella@gao.gov. Contact points for 

our Offices of Congressional Relations and Public Affairs may be found 

Stakeholders Expressed 

Divergent Opinions 

regarding the Overall 

Direction of the Tongass 

Timber Program

Agency Comments
Page 32 GAO-16-456 Tongass Timber Program

on the last page of this report. Major contributors to this report are listed 

in appendix IV.

Anne-Marie Fennell

Director, Natural Resources and Environment
Appendix I: Forest Service Stakeholder 

Organizations GAO Interviewed

Page 33 GAO-16-456 Tongass Timber Program

In conducting our work, we interviewed representatives from a 

nonprobability stratified sample of Forest Service stakeholder 

organizations. Table 2 lists the 30 stakeholder organizations whose 

representatives we interviewed. We selected stakeholders to provide a 

range of perspectives on the Forest Service’s management of the 

Tongass National Forest timber program. Because this is a nonprobability 

sample, the views of the stakeholders interviewed are not generalizable 

to all potential stakeholders, but they provide illustrative examples.

Table 2: Forest Service Stakeholder Organizations GAO Interviewed

Category of stakeholder Name of stakeholder organization

Alaska Native corporation Klawock Heenya Corporation

Sealaska Corporation

Shaan Seet Incorporated

Conservation organization National Audubon Society

Greater Southeast Alaska Conservation Community

Natural Resources Defense Council

The Nature Conservancy

Sitka Conservation Society 

Southeast Alaska Conservation Council

Fishing and aquaculture industry United Fishermen of Alaska

State and local government City and Borough of Sitka 

City of Craig

City of Hoonah

City of Ketchikan

City of Klawock

State of Alaska, Division of Forestry

State of Alaska, Mental Health Trust Land Officea

State of Alaska, Office of the Lieutenant Governor

Timber industry Alaska Forest Association

Alaska Specialty Woods

Alcan Forest Products

Icy Straits Lumber and Milling, Incorporated

Tongass Forest Enterprises

Viking Lumber Company, Incorporated

The Working Forest Group 

Tourism and recreation industry Alaska Travel Industry Association

Tribal government Central Council of Tlingit and Haida Indian Tribes of 

Alaska

Appendix I: Forest Service Stakeholder 

Organizations GAO Interviewed
Appendix I: Forest Service Stakeholder 

Organizations GAO Interviewed

Page 34 GAO-16-456 Tongass Timber Program

Category of stakeholder Name of stakeholder organization

Craig Tribal Association

Hoonah Indian Association

Klawock Cooperative Association

Source: GAO. | GAO-16-456

a

The Mental Health Trust Land Office manages 130,000 acres of commercial forest land.
Appendix II: Selected Characteristics of the 

Forest Service’s Alternatives for Transitioning 

the Tongass National Forest to Young-Growth 

Harvest

Page 35 GAO-16-456 Tongass Timber Program

In November 2015, the Forest Service released for public comment a 

draft environmental impact statement that analyzed five alternatives for 

undertaking the transition from old-growth harvest to young-growth 

harvest in the Tongass National Forest.1 Table 3 summarizes these 

alternatives, which described different time frames for making the 

transition and projected various numbers of acres from which timber 

would be harvested.

Table 3: Selected Characteristics of the Forest Service’s Draft Environmental Impact Statement (EIS) Alternatives for 

Transitioning the Tongass National Forest to Young-Growth Harvest

Source: GAO presentation of information in Forest Service, Tongass Land and Resource Management Plan Amendment: Draft Environmental Impact Statement. | GAO-16-456

Note: The Forest Service generally defines old-growth forests in southeast Alaska as those older than 

150 years. Young growth generally consists of trees that have re-grown after the harvest of old 

growth.

a

The Forest Service defined full transition as occurring when 41 million board feet of young-growth 

timber could be harvested annually on a sustained basis. All alternatives also envision a minimum 

annual harvest of 5 million board feet of old-growth timber. A board foot is a common measure for 

timber volume, equivalent to a board 12 inches long, 12 inches wide, and 1 inch thick.

b

The Forest Service identified alternative 5 as the “preferred alternative” in the draft EIS.

 1

USDA, Forest Service, Tongass Land and Resource Management Plan Amendment: 

Draft Environmental Impact Statement, R10-MB-769a (Washington, D.C.: November 

2015).

Appendix II: Selected Characteristics of the 

Forest Service’s Alternatives for Transitioning 

the Tongass National Forest to YoungGrowth Harvest

Alternative described in the 

Forest Service’s draft EIS

Years for full 

transitiona Projected acres harvested over 25 years

Projected acres harvested over 

100 years

Old growth Young growth Old growth Young growth

Alternative 1 32 40,140 7,271 62,413 201,003

Alternative 2 12 12,927 69,362 30,017 330,517

Alternative 3 13 13,856 52,094 31,198 304,792

Alternative 4 16 22,636 37,073 42,831 223,813

Alternative 5b 16 23,223 37,390 43,167 261,850
Appendix III: Comments from the Department 

of Agriculture

Page 36 GAO-16-456 Tongass Timber Program

Appendix III: Comments from the 

Department of Agriculture
Appendix IV: GAO Contact and Staff 

Acknowledgments

Page 37 GAO-16-456 Tongass Timber Program

Anne-Marie Fennell, (202) 512-3841 or fennella@gao.gov

In addition to the contact named above, Steve Gaty (Assistant Director), 

Greg Campbell, Jonathan Dent, Patricia Farrell Donahue, Holly Hobbs, 

Richard P. Johnson, Ben Nelson, Timothy M. Persons, and Anne Stevens 

made key contributions to this report.

GAO Contact

Staff 

Acknowledgments

(361616)

Appendix IV: GAO Contact and Staff 

Acknowledgments
Page 38 GAO-16-456 Tongass Timber Program

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