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SB 5157

Concerning the direct sale of valuable materials for habitat restoration projects.

2025-2026 Regular Session Introduced by Mike Chapman and 1 co-sponsor

Allows DNR to sell large wood for habitat restoration directly at up to $250,000 appraised value, bypassing public auction under strict safeguards.

Effective date 7/27/2025.
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Bill Summary · SB 5157

Summary — SB 5157 (Chapter 121, 2025 Laws)

Concerning the direct sale of valuable materials for habitat restoration projects. Effective July 27, 2025.

Purpose

Allow the Washington Department of Natural Resources (DNR) to sell valuable materials from state lands by direct sale—rather than public auction—at higher appraised-value thresholds when those materials will be used in qualifying habitat restoration projects. The goal is to improve access to large wood and similar materials commonly needed for aquatic and riparian restoration.

Key provisions

  • Raises the appraised-value threshold for direct sales used in habitat restoration from the statutory $25,000 cap to $250,000, when specified conditions are met (new RCW 79.15.050(3)).
  • Conditions for eligibility:
    • DNR determines the direct sale is in the best interest of the state or the affected trust.
    • The project proponent holds all required permits and approvals.
    • The proponent submits a department-defined report describing intended use of the materials.
    • Materials may not be resold or remanufactured for other uses; resale or remanufacture of timber is treated as a violation of RCW 79.02.320 (subject to penalties, including treble damages).
    • DNR must collect required fees, including those under RCW 79.38.050.
  • Appraisal standard:
    • DNR must appraise using an “arms-length market value,” defined as the cost to acquire similar materials used in aquatic restoration projects within the previous 24 months.
    • If that value cannot be determined, appraisal is based on the average minimum bid for similar-quality logs from the previous 12 months of DNR product sales contract harvest sort auctions (RCW 79.15.540).
  • All other statutory rules requiring public auction or sealed bid for sales exceeding $25,000 remain in force except as provided above.

Who is affected

  • Department of Natural Resources: new direct-sale authority, appraisal responsibilities, and enforcement duties.
  • Habitat restoration project proponents (e.g., tribes, local governments, nonprofits, restoration contractors): improved access to large-wood and similar materials for in-stream and riparian restoration.
  • Beneficiaries of state trust lands: potential impacts on receipts and trust valuation — DNR must determine sales are in the best interest of the state/affected trust.
  • Timber market participants: potential reduction in auction-available material and added restrictions on resale/remanufacture.

Procedural/timeline notes

  • Passed Senate: Feb 26, 2025 (46–1). Passed House: Apr 9, 2025 (97–0).
  • Governor signed: Apr 22, 2025. Chapter 121, 2025 Laws.
  • Effective date: July 27, 2025 (90 days after adjournment).

Fiscal & legal considerations

  • No new appropriation; a fiscal note is available.
  • Emphasis in committee testimony on restoration benefits (fish habitat, flood/erosion control) and on ensuring accurate valuation to protect trust obligations.
  • Enforcement: unauthorized resale/remanufacture of timber is treated as a statutory violation with enhanced damages under existing law (RCW 79.02.320).

Context / Rationale (from hearings)

Supporters argued that restored large wood materially improves salmon habitat and that sourcing material from adjacent DNR lands is cost-effective and efficient for grant-funded projects. Other testimony cautioned about properly valuing materials and potential supply constraints given legal and operational limits on DNR harvests.

Compiled from official sources — confirm details with the bill’s official record.

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