December 2016December 2016December 2016December 2016

Overtime Rule on Hold.…………………....2Overtime Rule on Hold.…………………....2Overtime Rule on Hold.…………………....2Overtime Rule on Hold.…………………....2

No Forest Roads Challenge……………….3No Forest Roads Challenge……………….3No Forest Roads Challenge……………….3No Forest Roads Challenge……………….3

Tax Tips for Forest Landowners.….......3Tax Tips for Forest Landowners.….......3Tax Tips for Forest Landowners.….......3Tax Tips for Forest Landowners.….......3

KFIA Holiday Hours………….………....……3KFIA Holiday Hours………….………....……3KFIA Holiday Hours………….………....……3KFIA Holiday Hours………….………....……3

Kentucky BMP Changes to Take Kentucky BMP Changes to Take Kentucky BMP Changes to Take Kentucky BMP Changes to Take Effect.…………..………………….….……….…….4Effect.…………..………………….….……….…….4Effect.…………..………………….….……….…….4Effect.…………..………………….….……….…….4

Election Outcome Likely To Result In Election Outcome Likely To Result In Election Outcome Likely To Result In Election Outcome Likely To Result In Major Tax Law Changes..…………………..5Major Tax Law Changes..…………………..5Major Tax Law Changes..…………………..5Major Tax Law Changes..…………………..5

2016 KFIA Sponsoring Member………..62016 KFIA Sponsoring Member………..62016 KFIA Sponsoring Member………..62016 KFIA Sponsoring Member………..6

Wood Powered Jets…….…………………….7Wood Powered Jets…….…………………….7Wood Powered Jets…….…………………….7Wood Powered Jets…….…………………….7

KFIA Membership Dues .………..………...7KFIA Membership Dues .………..………...7KFIA Membership Dues .………..………...7KFIA Membership Dues .………..………...7

106 Progress Drive,

Frankfort, KY 40601

Tel: 502/695-3979 Fax: 502/695-8343

Website: www.kfia.org

Bob Bauer, Executive Director

Bob@kfia.org

Michele Brewer, Administrative Assistant

Michele@kfia.org

“Serving the Industry Since 1965”

NO WOOD FOR CHRISTMAS

Santa awoke to get ready for a big Christmas run, And quickly found out a world without wood is no fun.

It was a cold morning with his suit by the fireplace hanging on a wire,

But his clothes were ice cold because he had no wood for a fire.

As he prepared for the big trip he ran to the bathroom with little haste,

When he went to brush his teeth things started bad with no toothpaste.

As he gathered himself and sat down to take care of an important need,

He reached down for his toy magazine and the paper but could find nothing to read.

Once he finished up on the throne and was ready for the Christmas hype,

He was sorely disappointed when he could not find any paper to wipe.

He then hustled off to get dressed and his feet felt like they were really sore,

Which made perfect sense when he realized he was walking on dirt with no wooden floor.

Once dressed he was all excited to meet with the elves and see

all that they had made, But they were not very happy with no wood for the shop and

only plastic toys to trade.

The excitement was building as he went out in the snow to fire up his giant sled,

But had another setback when it was covered with snow because of no wood for the shed.

They dug the sled out and hooked up the reindeer and hoped things would get funner,

But again were disappointed since they only had tires with no strong wood for the runner.

Santa worried that he was going to run late with no pallets to load the many toys on his sled,

He yelled for Rudolph to pull, wondering surely next year will bring wood as he thought in his head.

We thank all of our members for the many things that they do to make this world good,

And are thankful this Christmas that you all supply Santa and the world with plenty of wood.

We encourage all to help friends and some of the many people who sometimes have little reason,

And please take time to give thanks for all the many blessings we have this wonderful Holiday Season.

Jim Burris

Sales Representative

Cell: 919/270-2464 jimburris@corleymfg.com

PO Box 471

Chattanooga, TN 37401

Tel: 423/698-0284 Fax: 423/622-3258

Tyrone-Berry Lewis Controls

Carriage Drives Optimization

Page 2

WANTED

Hardwood Inspector for kiln dry lumber and mill manager

Contact: Arkie Fouts

Paintsville Wood Products

606/297-2612

2017 ANNUAL

MEETING

APRIL 4, 5 & 6,

2017

Embassy Suites Lexington, Kentucky

MERRY CHRISTMAS

&

HAPPY NEW YEAR

From: Bob & Michele

OVERTIME RULE ON HOLD

A

Texas U.S. District Judge has temporarily halted the U.S. Dept. of Labor’s contentious overtime rule from going into

effect on Dec. 1. The judge issued a temporary injunction to give the courts more time to evaluate the Department’s authority to issue the rule along with the merits of the rule.

The rule also provided for an automatic change to the threshold every three years without a formal rule-making process. The judge said the Labor Department regulation exceeded the authority granted it by Congress, which he said gave Labor the right to define which workers are considered salaried but only based on the duties they performed, not by how much they made. The Labor Department regulation raised the salary threshold for receiving mandatory overtime from $23,660 to $47,476 a year, or from $455 to $913 a week. The change would have cost employ-ers in Kentucky $19 million in added labor and compliance costs.

U.S District Judge Amos Mazzant of the Eastern District of Texas blocked the Department of Labor rule on overtime pay that made more than 4 million private-sector workers eligible for mandatory extra pay or time off. The imposed injunction was made at the request of 21 states, the U.S. Chamber of Commerce and other business groups.

The temporary injunction is significant because review of the rule by the courts will likely stretch into the next administration and session of Congress. This will give Congress time to act on the regulation such as by passing the Protecting Workplace Advance-ment and Opportunity Act that has been proposed to address the issue. The legislation would stop the rule from taking effect and require the U.S. Dept. of Labor to consider economic implications of the rule. Additionally, President-elect Trump could choose not to defend the rule in court. The overtime rule is one of many regu-lations President-elect Trump voiced opposition to during the campaign.

American Wood Fibers

Four Generations of Experience

Buyers of Red Cedar Logs,

Pine Logs and Slabs

800/662-5459

Visit our web site at

www.awf.com

Page 3

NO FOREST ROADS CHALLENGE

T

he deadline has passed for challenges to the determination by the U.S. Environmental Protection Agency (EPA) against

further regulation of forest roads under the Clean Water Act (CWA). “Forest owners are pleased EPA exercised its broad discretion under the CWA by keeping management of water quality programs at the local level through state Best Manage-ment Practices (BMPs),” said Dave Tenny, National Association of Forest Owners President and CEO. “BMPs are a proven tool for protecting the quality of our nation’s rivers and streams while taking into account the diversity of forest landscapes.”

Timber harvesting will not require additional stormwater regula-tion. In 2014, Congress included in the final Farm Bill a provision that forest roads and forest management continue to be regulated through state BMPs under the CWA. The action ended litigation that began in an Oregon district court in 2006. Congress did not address EPA’s authority to adopt a regulatory program for storm-water discharges but saw no need for regulatory action. KFIA worked on this issue with many of our partners at the national level to make sure that new regulations did not come down on the logging industry in Kentucky.

KFIA HOLIDAY HOURS

The KFIA office will be closed:

December 23 & 26 - in observance of Christmas

January 2, 2017 - in observance of New Years Day

TAX TIPS FOR FOREST LANDOWNERS

W

hile very few of us may look forward to completing our 2016 tax returns that doesn't mean we can avoid it. In order to

assist woodland owners, loggers, foresters, and tax accountants deal with the tax implications of timber transactions the US Forest Service's Linda Wang has prepared the "Tax Tips for Forest Landowners for the 2016 Tax Year" which is available for free. If you have been involved in any timber related transactions make sure to review this publication BEFORE filing your taxes. You should also visit the National Timber Tax Website to make sure you are properly addressing the tax treatment of timber related activities.

Visit this link for more information: https://forestry.ca.uky.edu/sites/forestry.ca.uky.edu/files/

tax_tips_for_forest_landowners_2016.pdf

Page 4

MARK YOUR CALENDARS/

UPCOMING EVENTS

KFIA Annual Meeting

April 4-6, 2017

Embassy Suites, Lexington, KY

Kentucky Master Logger

3-Day Course

All 2016 KML classes are complete.

We will post the 2017 Schedule once it is

available.

Kentucky Master Logger

Continuing Education

All 2016 classes are complete.

We will post the 2017 Schedule

once it is available.

TARGET ARSON HOTLINE

(1-800-27ARSON)

Callers could be in for a cash reward

of up to $1,000 if the

information leads to an arrest and

indictment.

KENTUCKY BMP CHANGES TO TAKE EFFECT

B

est management practices (BMP's) have been in effect for a number of years in Kentucky as part of the Forest

Conservation Act. The Kentucky Forestry Best Management Practices Board has been involved with all types of issues related to logging inspections and the Conservation Act since it became law over 15 years ago. Earlier this year the Board approved some minor changes to the state BMP's that will go into effect in January, 2017. The changes were recommended based on input from the logging community and a wide range of forestry partners and are based on a large water quality study which took place on the University of Kentucky's Robinson Forest. The study looked at how actual logging can affect stream quality and judged the effec-tiveness of BMP"s to prevent sedimentation from reaching streams and degrading water quality.

A number of continuing education classes have been offered since summer to make loggers aware of the changes and the information has appeared in the KFIA link. The time for the new changes is here and goes into effect on January 1, 2017. As mentioned the changes are not major but do affect some things on the ground that need to be considered when logging. The major changes include the following:

• Roads Trails and Landings- Must be constructed to stop or minimize muddy water runoff reaching the streams and the streamside management zones (SMZ's). SMZ’s have in-creased to 50 feet on flat ground and 100 feet on steep ground where feasible. Also the trout stream SMZ has increased to 100 feet.

• Stream Crossings- when using a ford you must use a natural rock bed or place something across the bed to firm it up and loose dirt associated with all crossing must be immediately stabilized.

• Temporarily Inactive – temporary water control must be in-stalled with the job or a part of a job when not being used for more than 14 days.

• Retirement – the areas that need to be retired are the roads, trails, landings, and other areas of bare ground that can result in muddy water runoff entering streams or channels.

• Seeding – when seeding one or more practices must be done to help with germination and revegetation including: seeding in to loose soil or using fertilizer, lime and/or mulch.

A new pocket guide for loggers explaining all BMP requirements is in the process of being revised. A brochure is available on the front page of the KFIA website (www.kfia.org) which offers additional details on the changes. The brochure will also be sent out to all KFIA logging members in December along with member-ship renewal information. Please feel free to contact the KFIA office with any questions.

Page 5

RoundTree Corporation

43 years of non-stop buying

Walnut & White Oak

Veneer Logs and Saw Logs

Contact: John Willmott

859/582-1753

Richmond/Irvine, KY

DISCOUNT FOR

KFIA MEMBERS

Forestry Suppliers

is offering a

discount for KFIA

Members.

Online orders at http://forestry-

suppliers.com/ during check out

enter key code KKY and receive a

7% discount or call 800/647-5368 to

order and just give the key code.

This offer expires 12/31/2016

ELECTION OUTCOME LIKELY TO RESULT IN MAJOR

TAX LAW CHANGES

T

he unexpected election of Donald Trump as President of the United States, along with Republicans retaining control of

both chambers of Congress, will likely result in an overhaul of the U.S. tax code. Based on Trump's tax reform plan released earlier this year, tax law changes may include a reduction in tax rates for some individual taxpayers and corporations, the elimination of several tax breaks, a restructuring of U.S. taxes on income from abroad, the elimination of the estate tax, and a partial or full repeal of the Affordable Care Act.

Republicans retain control of the Senate but didn't reach the 60 members necessary to become filibuster-proof. So their simple majority won't be enough to pass legislation in the Senate. In the House, Republicans retain control by a margin similar to their current one. This outcome likely will result in less opposition from Democrats and a greater opportunity to enact significant tax law changes in the coming year. Yet it also likely will require Republicans to compromise on some issues in order to get their legislation through the Senate.

President-elect Trump's tax reform plan could possibly include the following changes that would affect individuals:

• Reducing the number of income tax brackets from seven to three, with rates on ordinary income of 12%, 25% and 33%, and adapting the current rates on long-term capital gains and qualified dividends for the new brackets,

• Eliminating the head of household filing status,

• Abolishing the net investment income tax,

• Eliminating the personal exemption (though expanding child-

related breaks),

• More than doubling the standard deduction, to $15,000 for singles and $30,000 for married couples filing jointly,

• Capping itemized deductions at $100,000 for single filers and $200,000 for joint filers,

• Abolishing the alternative minimum tax, and

• Abolishing the federal gift and estate tax, but disallowing the step-up in basis for estates worth more than $10 million.

Proposed changes that would affect businesses include: • Reducing the top corporate income tax rate from 35% to 15%, • Abolishing the corporate alternative minimum tax, • Allowing owners of flow-through entities to pay tax on business income at the proposed 15% corporate rate rather than their own individual income tax rate, although there seems to be ambiguity on the specifics of how this provision would work, • Eliminating the Section 199 deduction, also commonly referred to as the manufacturers' deduction or the domestic production activities deduction, as well as most other business breaks - but, notably, not the research credit, • Allowing U.S. companies engaged in manufacturing to choose the full expensing of capital investment or the deductibility of

Continued in next column

interest paid, and

• Enacting a deemed repatriation of cur-rently deferred foreign profits at a 10% tax rate.

Bare in mind that uncertainty has surrounded the details of President-elect Trump's tax reform plan. However, during the course of the campaign, some of its provisions have gelled with the House Republicans' tax plan.

With President-elect Trump soon to be in the White House and continued Republican control of the Senate and the House, major tax law changes likely are on the horizon. However, at this time it's difficult to determine which provisions of the ambitious tax reform plan will be signed into law. This uncertainty makes tax planning difficult in the upcoming year and KFIA will continue to work with the Hardwood Federation at the federal level to make sure that our wood industry in the state is at the table concerning any tax changes.

Page 6

2016 KFIA SPONSORING MEMBERS

M

embership is the heartbeat of any association and your participation is especially appreciated. We want to express our gratitude for the following

sponsors that go above and beyond to support KFIA and our activities.

PLATINUM LEAF $2000

Roy Anderson Lumber Co. Inc. Tompkinsville, KY

Domtar Paper Co., LLC

Hawesville, KY

Pennsylvania/Indiana Lumbermen's Mutual Insurance - Philadelphia, PA

Van Meter Insurance

Bowling Green, KY

GOLD LEAF $1000

Assured Neace-Lukens Insurance

BPM Lumber LLC.

Brandeis Machinery

Dunaway Timber Co.

eLIMBS, LLC

Forest Products, Inc.

Gay Brothers Logging & Lbr.

Stella Jones Inc.

Kentucky Thermal Inspections

McCreary County Hardwoods

Patterson Chip Co.

Rudd Equipment Co.

Somerset Wood Products

U-C Coatings Corp.

Whayne Supply Co.

SILVER LEAF $800

Beshear Sawmill Inc.

Crawford Tie & Lumber, LLC

Evergreen Packaging

La-Z-Boy Corp.

Powell Valley Millwork

Harold White Lumber, Inc.

Richard White Wood Products

BRONZE LEAF $600

American Stave Co. American Wood Fibers

Corley Manufacturing Co. Diamond Forest Resources

DuraFlame East, LLC

Estill Wood Products Inc. Feldman Lumber Co.

Fowler Lumber Company

Glatfelter Kingsford Manufacturing

Lebanon Oak Flooring

Maxwell Brothers Lumber Co. May Brothers Lumber Co. Inc.

Frank Miller Lumber Co. National Lumber

Robinson Stave Inc. Wayne Lumber Co. Inc. Woodstock Mills, Inc.

Young Manufacturing Co. Inc. Zak, Ltd.

Monte Pope

District Sales Supervisor

416 East Brooks Road

Memphis, Tennessee, USA 38109

Phone: 800/238-2523

KFIA ADVERTISING AVAILABLE

Advertising is available in the KFIA “LINK” newsletter and on the web-site at www.kfia.org. Running an ad in these outlets is a very affordable way to put your company in the spot-light while supporting the associa-tion. We are sure your company will benefit from its exposure in these resources.

Newsletter:

Business Card Size - $30/month 4 inch x 2 inch - $55/month 4.5 inch x 3 inch - $80/month

For more details contact Michele at 5 0 2 / 6 9 5 - 3 9 7 9 o r e - m a i l : Michele@kfia.org.

Page 7

KFIA MEMBERSHIP DUES

W

e want to say thank you to all members that have continued

their membership with KFIA some for over 50 years now. Our members are the backbone of KFIA and are greatly appreciated.

We will be sending out the Dues Request during the month of December and we encourage you to continue as a member during 2017. We expect some exciting things to happen in the new year with new congressional administration. If you have any ques-tions concerning your membership please don’t hesitate to contact the KFIA office at 502/695-3979.

We are here for you.

WOOD POWERED JETS!

A

project to demonstrate that jets could someday be powered by logging leftovers from Northwest forests got a good first test. A

Boeing 737 took off with fuel tanks filled partly with a wood-based jet fuel. Alaska Airlines fueled a regularly scheduled cross-country flight from Seattle to Washington, DC with a blend of 80 percent regular jet fuel and 20 percent "biojet." In a sign of how safe the makers think this fuel is, the test flight carried newly reelected members of Congress back to Washington, D.C., for a lame duck session.

A $40 million, five year grant from the USDA funded the consortium of university labs and private industry that refined the biofuel. Washington State University Professor Ralph Cavalieri, project director at the Northwest Advanced Renewables Alliance, said dozens of previous test flights have taken off with alternative jet fuel. "What is unique about this one is that in the past the alternative jet fuels have been made from vegetable oil or animal oil or reclaimed fats and so on,” Cavalieri said. “But we are using woody waste, forest slash piles.” Cavalieri said slightly more than 1,000 gallons of biojet fuel were pro-duced for this project using limbs and branches left over from Weyer-haeuser Company and Muckleshoot and Flathead Nation tribal logging operations.

The processing, conversion and purification of that wood waste into highly refined jet fuel borrowed elements from pulp and paper production and ethanol manufacturing. It involved companies in Oregon, Colorado, Missouri, Texas and Canada. He said another aspect of the project looked at the availability of woody debris to supply a potential renewable jet fuel industry in the Pacific Northwest. "The answer is unequivocally yes," Cavalieri said. "It's clear that there is sufficient resource in the region to supply SeaTac and other airports in the area." "Can you do this economically? At the moment the answer is no, but we are continuing to work on that," Cavalieri said.

Alaska Airlines said its planes do not have to be adapted to use the renewable fuel blend. "From the pilot's standpoint there is no differ-ence," Alaska Senior Vice President Joe Sprague said. Sprague noted the Seattle-based airline participated in biofuel test flights with various partners starting in 2011 to show there is demand for renewable avia-tion fuels. Sprague speculated that we are probably some number of years away from jet biofuel being available broadly across the country, but he said it might become routine sooner in the Pacific Northwest.

106 Progress Drive

Frankfort, Kentucky 40601

Tel: 502/695-3979

PO Box 1779 * 1240 Fair Way St.

Bowling Green, KY 42102-1779

Tel: 270/781-2020

Still Standing behind a firm handshake

Specializing in

Business Insurance,

Including Life, Health,

Property/Casualty

and Workers’ Comp

Self-insurance.

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