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HomeMy WebLinkAbout20260811Bennett Lumber Et Al Response to Order No. 37064.pdf Tara Malek, ISB #8709 RECEIVED SMITH+MALEK, PLLC AUGUST 11, 2026 Dba MALEK+MALEK IDAHO PUBLIC 601 E. Front Ave, Ste. 304 UTILITIES COMMISSION Coeur d'Alene, ID 83814 P. (208) 215-2411 F. (208) 215-2416 E: service(&malekattome s BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA Case No. AVU-E-25-15 CORPORATION'S APPLICATION FOR APPROVAL OF THE 2026 BENNETT LUMBER PRODUCTS, INC., WILDFIRE MITIGATION PLAN MANULIFE INVESTMENT MANAGEMENT, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 COMES NOW, Petitioners Bennett Lumber Products, Inc., Manulife Investment Management, Molpus Woodlands Group, and Stimson Lumber Company ("Petitioners") submit this Response to supplement the record following the Commission's grant of reconsideration in Order No. 37106. Petitioners appreciate the opportunity to provide supplemental information to the Commission. Petitioners respectfully disagree with the Commission's decision to approve Avista Corporation's ("the Company") WMP as currently presented and in doing so, afford it significant statutory protections without the Wildfire Mitigation Plan including immediate implementation of certain critical recommendations made by Idaho Department of Lands. I. INTRODUCTION As set forth in Petitioners' June 30, 2026 Petition for Reconsideration, the Commission's approval of the Company's 2026 WMP failed to meaningfully consider the recommendations of BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 1 the Idaho State Forester through the Idaho Department of Lands (IDL). These recommendations represent essential, reasonable, science-based measures to protect Idaho's forestland, infrastructure, and advance the public's interest. To demonstrate the necessity of the recommended measures, Petitioners present the sworn declarations of three forestry industry experts: Andrew Stockwell (Stimson Lumber Company), Patrick Morolla (Manulife Forest Management), and Halli Hemingway (Bennett Lumber Products, Inc.) (hereinafter the declarations will be referred to as Stockwell Decl., Hemingway Decl. and Morolla Decl.'). Mr. Stockwell, Ms. Hemingway and Mr. Morolla confirm based on their own experience and expertise that the State Forester's recommendations are just and reasonable in light of the risks involved. The Company's plan leaves Petitioners and the public exposed to catastrophic wildfire risk while allowing Avista to avail itself of the statutory shield to liability that an approved Wildfire Mitigation Plan would provide. II. PROCEDURAL HISTORY On December 9, 2025, Avista Corporation ("Company") applied to the Commission requesting approval of its 2026 Wildfire Mitigation Plan ("WMP"). Following a comment period, and after the Company's Reply the Commission issued Final Order No. 37064 on June 9, 2026, approving the Company's WMP while directing it to address certain concerns and issues in its future WMP filings. On June 30, 2026, Petitioners filed their Petition for Reconsideration, identifying legal and factual errors regarding the Commission's treatment of the Idaho State Forester's recommendations. On July 28, 2026, the Commission issued Order No. 37106, granting reconsideration to allow parties to supplement the record. In accordance with the Commission's Order, Petitioners now file their supplemental information and response. BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER-2 III. LEGAL STANDARD The statutory right to petition for reconsideration serves to notify the Commission of potential errors and allow the agency to correct them. Under Idaho Code Section 61-1804(3), the Commission is required to consult with the State Forester regarding elements of a WMP related to vegetation management and fuel reduction. The statute establishes a presumption that the State Forester's recommendations are "reasonable and appropriate" and mandates that such recommendations "shall be incorporated in the decision of the commission unless the commission determines they are not just, reasonable, and in the public interest," with specific documentation of its reasoning. Furthermore, IDAPA 31.01.01.013 provides that Commission rules are to be liberally construed to secure a just determination of issues, and the Commission may permit deviation from rules when compliance is impracticable or not in the public interest. The Commission also has a weighty responsibility with significant implications for Idaho and its citizens. Specifically, the Idaho Code Section 61-1806 provides that when a company has an approved WMP ...there is a rebuttable presumption that the [company] acted without negligence if, with respect to the cause of the wildfire, the electric corporation reasonably implemented a commission-approved wildfire mitigation plan. This rebuttable presumption extends to any act or omission taken in reasonable accordance with the approved wildfire mitigation plan in effect at the time the fire ignited, regardless of the content in any prior commission-approved plan that is no longer in effect." I.C. § 61-1806(l) (emphasis added). This is a significant statutory protection against liability which is tied to the current WMP approved by the Commission, and any recommendations regarding future WMPs need not be implemented in the interim for a company to enjoy this protection. BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 3 IV. ARGUMENT Petitioners respectfully disagree with approving the Company's WMP without the WMP requiring the immediate inclusion of the recommendations advanced by IDL. If the recommendations have value for inclusion in future WMPs and that value is acknowledged by both the Company and the Commission, no persuasive reason has been identified or articulated as to why their immediate implementation should not be a condition for being afforded the statutory presumption discussed supra. A. IDL's Recommendations Should be Immediately Required and Implemented because they are Just,Reasonable, and Necessary for the Public Interest. The declarations of Andrew Stockwell, Halli Hemingway and Patrick Morolla explain why recommendations of the Idaho State Forester are vital for mitigating wildfire risk. Mr. Stockwell, Ms. Hemingway and Mr. Morolla possess decades of experience managing fire-prone timberlands in the Inland Northwest. Each agrees that the current WMP lacks critical components necessary to prevent, or effectively respond to, catastrophic fire events. Mr. Morolla in particular provides that omission of the recommendations means that decisions on wildfire mitigation are going to be made without consideration of the factors that "materially influence wildfire ignition [and] spread...".Morolla Decl. at f 11. B. Specific Deficiencies in the 2026 WMP which Pose Immediate Risks. There are several areas where the current WMP fails to protect Idahoans' immediate interests. First, the opaque modeling inputs create substantial risk. The experts emphasize that the plan lacks detail regarding modeling inputs, such as fuel loads, vegetation density, and terrain. The Company responded to IDL's comments regarding modeling input in part by stating The Company is in the process of implementing an updated geographic risk analysis approach that incorporates data inputs and considerations BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER-4 complimentary to those used by the State of Idaho in its State Forest Action Plan risk analysis. Accordingly,future iterations of the Company's WMP will include additional detail describing the modeling inputs used. Avista Reply Comments, p.6. While the Company addresses a future updated risk analysis approach that compliments that used by the State of Idaho, no further detail or clarification is provided as to the current model which the Company is currently using. It is also unclear as to when the new process will be implemented, to what extent and what that new risk analysis approach entails. This does not allow Idahoans to determine whether the modeling reflects actual forest conditions. Hemingway Decl. f 12(a). No amount of sophisticated technical modeling systems can make up for flawed data inputs and human error. Without this transparency, landowners cannot determine if the Company's risk assessments—which dictate vegetation and timber removal—are based on accurate, site-specific data nor can they be reasonably relied upon given the lack of specificity. Second, the lack of information as to the Fair Market Value (FMV) process will undoubtedly increase costs for landowners and downstream consumers of forest products. Currently, the Company lacks a formal, consistent procedure for compensating landowners for the removal of merchantable timber. As noted by Ms. Hemingway, this unpredictability creates "collateral consequences to many Idahoans". Hemingway Decl. f 12. Landowners cannot make sound business decisions and uncertainty will have downstream consequences including by creating tension and conflict. Stockwell Decl. f 19. Uncertainty as to compensation would increase the likelihood of our court systems being flooded with what could be avoidable litigation cases. In addition, such lack of transparency would eventually translate into increased costs for downstream consumers of forest products. When landowners cannot accurately forecast their assets or revenue, they are forced to factor in a "risk premium"to cover potential losses or BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 5 arbitrary removal of timber. This will inherently raise the base cost of their products before they ever hit the market. Third, Mr. Stockwell provides that without a clear cost-benefit analysis for mitigation categories, there is a risk that Avista is failing to prioritize the most effective mitigation work in the highest-risk locations. Stockwell Decl. f 18. Fourth, beyond modeling and planning deficiencies, another critical piece missing is in regards to worker qualifications. The effectiveness of a plan depends in part on its implementation. Vegetation inspections must be conducted by individuals with specific training in wildfire risk, ladder fuels, and site-specific terrain. Stockwell Decl. f 20. Mr. Morolla who is charged with overseeing timberland management and wildfire preparedness provides that he not only has a firefighter training background but continues to expand his knowledge regarding wildfire mitigation, preparedness and suppression through practical field experience and ongoing training. Morolla Decl. f f 5-6. Indeed, when private industry employees are self-imposing such training, education and requirements, the Commission should be requiring that companies do the same. Without qualified individuals who know what to look for and who are consistent in their inspections, wildfire risk in regions would remain the same, no matter how well thought out the plan. The recommendation by the State Forester for transparency as to worker qualifications is reasonable and just given the risks involved. While quantifying the specific costs involved with the State Forester's recommendations is complex, when compared to the catastrophic potential damage to landowners it remains reasonable. A single significant wildfire can result in millions of dollars in damages, including lost commercial timber, reforestation expenses, infrastructure damage, and impacts to watershed and wildlife. BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 6 The Commission has been entrusted with a duty to ensure that WMPs protect the public's health, safety, welfare and interest. Delaying implementation of recommendations from the State Forester that the Commission has effectively acknowledged the value of serves only to increase the likelihood that wildfire hazards will be missed and overlooked and those affected by wildfires will have no avenue or recourse to address their damages. Implementing these recommendations later does not serve the public's interest now during what has already been called by the State of Idaho as a challenging fire year. That is a risk that Petitioners respectfully submit is neither just nor reasonable. V. CONCLUSION For the foregoing reasons, Petitioners respectfully request that the Commission reverse its final order and modify its approval of the Company's 2026 Wildfire Mitigation Plan so that it fully incorporates the Idaho State Forester's recommendations as a condition to its approval. Implementing these science-based measures at the outset is critical to ensuring that the WMP is just, reasonable, and adequately protective of Idaho's forestland, infrastructure, and the public interest. Alternatively, if the Commission will not accept the implementation of these recommendations as necessary conditions for approval, Petitioners request that it make a finding as to how the WMP in its current form is "just, reasonable, and in the public interest" as required by I.C. Section 61-1804(3). Petitioners urge the Commission to take this necessary step to provide the transparency and accountability required to mitigate catastrophic wildfire risk during this challenging fire season prior to affording the statutory protections and presumptions pursuant to Idaho law. BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 7 DATED this 1 lth day of August, 2026. MALEK+MALEK /s/Tara Malek TARA MALEK CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 1lth day of August, 2026, 1 caused to be served in the manner noted below, a copy of the document to which this certificate is attached, on the following counsel of record: Commission Secretary ❑ By Hand Delivery Monica Barrios-Sanchez ❑ By U.S. Mail Jeff Loll ❑ By Overnight Mail Deputy Attorney General ❑ By Facsimile Idaho Public Utilities Commission 0 By Email: secretary&uc.idaho.gov PO Box 83720 Boise, ID 83720-0074 jeff.loll(a�puc.idaho.gov PotlatchDeltic Corporation ❑ By Hand Delivery Peter J. richardson ❑ By U.S. Mail Richardson Adams, PLLC ❑ By Overnight Mail 515 N. 27th St Boise, ID 83702 El By Facsimile 0 By Email: peterarichardsonadams.com Idaho Department of Lands ❑ By Hand Delivery J.J. Winters ❑ By U.S. Mail John A. Richards ❑ By Overnight Mail 300 N 6th St, STE 103 Boise, ID 83702 ❑ By Facsimile ❑� By Email:jwintersn.idl.idaho.gov j rihards&idl.idaho.gov Avista Corporation ❑ By Hand Delivery Anni Glogovac ❑ By U.S. Mail Elizabeth Andrews ❑ By Overnight Mail P.O. Box 3727 ❑ By Facsimile Spokane, WA 99220-7342 ❑� By Email: liz.andrews(a avistacory.com anni.glo govac&avi stacorp.com /s/ Pevton Gerbing PEYTON GERBING BENNET LUMBER PRODUCTS,INC.,MANULIFE INVESTMENT MANAGEMENT GROUP, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER- 8 Tara Malek, ISB #8709 SMITH+MALEK, PLLC DBA Malek+Malek RECEIVED 601 E. Front Ave, Ste. 304 AUGUST 11, 2026 Coeur d'Alene, ID 83814 IDAHO PUBLIC P. (208) 215-2411 UTILITIES COMMISSION F. (208) 215-2416 E: service(&malekattorne s BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION Case No. AVU-E-25-15 STAFF'S APPLICATION FOR APPROVAL OF A FILING PROCESS DECLARATION OF ANDREW FOR WILDFIRE MITIGATION STOCKWELL IN SUPPORT OF PLANS BENNETT LUMBER PRODUCTS, INC., MANULIFE INVESTMENT MANAGEMENT, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 1, Andrew Stockwell, declare under penalty of perjury pursuant to the law of the State of Idaho that the following is true and correct: 1. 1 am over the age of 18 and competent to testify to the matters contained herein. 2. 1 am currently employed as Director of Inland Resources for Stimson Lumber Company ("Stimson") and have served in that role since January 2023. In that role, I lead a team of professional foresters who are responsible for managing Stimson's timberland ownership in Idaho, Montana, and Washington, including approximately 370,000 acres, and oversee forest management planning, timber harvesting, reforestation, wildfire mitigation, conservation programs, and regulatory compliance. My responsibilities further include oversight of log procurement operations for Stimson's Idaho sawmills and the Inland real estate department. DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 1 3. I have worked for Stimson Lumber Company since 2002 and throughout the years have been promoted to positions involving increasing responsibility and oversight. 4. 1 have worked in the forest products industry for more than 25 years. 5. I hold a Bachelor of Science degree in Forest Resource Management from the University of Montana and have extensive experience managing forestlands in fire-prone landscapes throughout the Inland Northwest. 6. Wildfire mitigation has been a component of my responsibilities during my career. I have planned and implemented fuel reduction treatments, vegetation management projects, road and access improvements, and timber harvest activities designed to reduce wildfire risk and improve forest resilience. 7. I have observed firsthand the impacts of numerous large wildfires in Idaho, Montana, and Washington and have been directly involved in wildfire preparedness, suppression coordination, post-fire recovery, and salvage operations. 8. My experience and responsibilities over the past twenty five years have included assessing wildfire behavior, evaluating fuel conditions, coordinating with public agencies and neighboring landowners, and developing management strategies intended to reduce the likelihood and severity of catastrophic wildfire events. 9. These experiences have provided me with a practical understanding of how vegetation conditions, utility infrastructure, weather patterns, topography, and fuel loading influence wildfire risk and potential damages. 10. In the performance of my duties, I have often relied upon information, guidance, and recommendations provided by the Idaho State Forester and the Idaho Department of Lands. DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -2 11. Based upon my personal experience, I know that the State Forester possesses specialized expertise, statewide wildfire data, fire behavior modeling resources, and knowledge regarding emerging wildfire risks. I have found the State Forester's recommendations to be valuable and reliable in helping guide decisions related to wildfire preparedness, fuel management, fire response planning, and post-fire recovery efforts. I have also found the state Forester's recommendations to be just, reasonable and in the public's best interest. 12. Based upon my experience, I know that the Idaho Department of Lands routinely works with private landowners, local governments, utility providers, and fire protection organizations and therefore has a unique perspective regarding wildfire risk across the state. Because of this expertise and access to statewide information, I believe the recommendations provided by the State Forester regarding Avista's Wildfire Mitigation Plan should be given substantial weight and carefully incorporated into the final plan. The risk of not doing so could be catastrophic. 13. I have reviewed the recommendations of the Idaho State Forester as they relate to Avista's Wildfire Mitigation Plan, and I agree with those recommendations. 14. Several of the State Forester's recommendations are particularly important from a landowner perspective, including providing additional descriptive narrative details about modeling inputs, providing a cost-benefit analysis for each general mitigation category, clarifying activities and actions to reduce damage from external wildfire events, defining a formal process to determine the fair market value of timber, providing worker qualification standards and vegetation inspection practices, obtaining input from county fire planning groups, and including infrastructure and DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 3 site-specific details such as type, condition, age, vegetative layers, soil types, and damaging wind events. 15. Based on my experience managing forestland in Idaho, Montana, and Washington, there is a significant risk to private landowners, neighboring communities, utility customers, and natural resources if the State Forester's recommendations are not incorporated into Avista's Wildfire Mitigation Plan. Wildfire risk in forested landscapes is influenced by a combination of factors, including vegetation conditions, fuel loading, topography, drought, weather patterns, wind events, road access, and the type, condition, and location of utility infrastructure. If these factors are not clearly evaluated and addressed in the plan, there is a greater likelihood that wildfire hazards will not be fully identified or mitigated before an ignition occurs. 16. I know this risk exists because wildfire mitigation is a regular and important part of my work in managing industrial timberlands across the Inland Northwest. I have seen how quickly fire can spread when dry fuels, steep terrain, wind, and limited access are present. I have also seen that proactive fuel reduction, vegetation management, infrastructure awareness, qualified inspections, and coordination with local fire planning groups can materially reduce wildfire risk and improve response when fires occur. 17. Requiring additional descriptive narrative regarding Avista's modeling inputs would help landowners and agencies understand what assumptions are being used to evaluate wildfire risk. Without that information, it is difficult to know whether the model adequately accounts for site-specific conditions such as fuel types, vegetation layers, slope, soils, access limitations, wind exposure, or the condition and age of utility DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -4 infrastructure. 18. Similarly, a cost-benefit analysis for each general mitigation category would help determine whether Avista is prioritizing the right mitigation work in the right locations. Without a clear cost-benefit analysis, there is a risk that mitigation activities may not be focused on the locations or practices that would provide the greatest reduction in wildfire risk to landowners. Accurate data and modeling are crucial to determine risk accurately. 19. The State Forester's recommendation for a formal process to determine the fair market value of timber is also important. From a timberland owner's perspective, trees have meaningful monetary value, and a landowner should be appropriately compensated for any danger trees that are felled outside of the established utility right-of-way. Having a formal process to determine value will increase transparency and reduce potential conflict. Conversely without a uniform plan or system, there will be uncertainty which will likely result in conflict and tension. 20. Worker qualification standards and vegetation inspection practices are also critical. The effectiveness of a wildfire mitigation plan depends heavily on the people implementing it. Vegetation inspections should be conducted by individuals who understand wildfire risk, fuel conditions, ladder fuels, site-specific terrain, access constraints, and the relationship between vegetation and utility infrastructure. Inadequate training or inconsistent inspection practices increase the risk that hazardous conditions will be missed or not addressed in time. 21. Obtaining input from county fire planning groups is important because these groups often have practical, specific local knowledge regarding fire history, access routes, DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 5 suppression constraints, seasonal fuel conditions, and community vulnerabilities. In my experience, local coordination improves planning and helps ensure that mitigation work reflects on-the-ground conditions rather than relying only on generalized assumptions. 22. Quantifying specific costs is difficult, but based on my experience managing forestland in Idaho and throughout the Inland Northwest, the cost of implementing the State Forester's recommendations is relatively modest when compared to the potential damage resulting from a large utility-caused wildfire. The recommendations identified by the State Forester, including improved modeling transparency, better vegetation management standards, enhanced worker qualifications, formal valuation procedures for timber losses, and greater coordination with local fire planning groups, represent prudent risk-management measures that can help identify and mitigate wildfire hazards before an ignition occurs. 23. If these recommendations are not followed and wildfire risk increases, the potential costs to private landowners such as Stimson Lumber Company can be substantial. Damages may include loss of commercial timber value and future harvest opportunities, reforestation and site rehabilitation expenses, damage to roads, bridges, culverts, and other infrastructure, increased costs associated with firefighting expenses, impacts to wildlife habitat, watershed values, and recreational resources, business interruption, and reduced long-term forest productivity. 24. For large industrial timberland owners, a single significant wildfire can result in damages reaching millions of dollars depending upon the acreage affected, timber values involved, and severity of the fire. In contrast, the additional planning, analysis, and coordination measures recommended by the State Forester represent a DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 6 comparatively small investment that can substantially reduce wildfire risk and improve accountability. I declare under penalty of perjury that the foregoing is true and correct. '.DATED this 6th day of August, 2026. Xk Andrew Stockwell DECLARATION OF ANDREW STOCKWELL IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 7 Tara Malek, ISB #8709 SMITH+MALEK, PLLC RECEIVED DBA Malek+Malek AUGUST 11, 2026 601 E. Front Ave, Ste. 304 IDAHO PUBLIC Coeur d'Alene, ID 83814 UTILITIES COMMISSION P. (208) 215-2411 F. (208) 215-2416 E: service(&malekattorne s BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION Case No. AVU-E-25-15 STAFF'S APPLICATION FOR APPROVAL OF A FILING PROCESS DECLARATION OF HALLI FOR WILDFIRE MITIGATION HEMINGWAY IN SUPPORT OF PLANS BENNETT LUMBER PRODUCTS, INC., MANULIFE INVESTMENT MANAGEMENT, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 I, Halli Hemingway, declare under penalty of perjury pursuant to the law of the State of Idaho that the following is true and correct: 1. I am over the age of 18 and competent to testify to the matters contained herein. 2. I am currently employed as a Forestry/GIS Analyst with Bennett Lumber Products, Inc. 3. All twenty years of my experience in the timber industry have been with Bennett Lumber. I have held the role of Forestry/GIS Analyst with Bennett Lumber Products, Inc. in Princeton, Idaho, since August 2006. 1 assemble and maintain Bennett Lumber's geographic information system, develop map products, and perform GIS analysis to support forest management decisions. As the company's Biometrician, I assemble and maintain a forest inventory system. I am skilled in LiDAR processing, forest inventory and productivity modeling, and forest research. I serve as Bennett Lumber's company DECLARATION OF HALLI HEMINGWAY IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 1 representative to the Intermountain Forestry Cooperative, the Palouse Cooperative Weed Management Area, and the Idaho SFI Implementation Committee. My duties also include forest management planning and implementation, including coordinating and managing Bennett Lumber's Sustainable Forestry Initiative certification, and coordinating with other Bennett Lumber foresters and contractors to manage the company's forest land base. 4. In the course of my duties, I rely on the recommendations of the Idaho State Forester to inform timber supply planning for Bennett Lumber's mills and inform our own forest management decisions across the state of Idaho. For the past twenty years, I have found the Idaho State Forester's recommendations in these areas to be reasonable and in the public's interest. 5. Bennett Lumber owns land in Idaho and supplies timber to its mills, with a large majority of that supply sourced from Idaho. 6. Bennett Lumber manages timberlands to reduce fire risk, including through thinning (removing trees to restore natural forest structure, reduce wildfire risk, and improve forest health by evaluating tree density and distribution) and planning and overseeing prescribed fires. Bennett Lumber also works with private landowners and state and federal partners, to reduce wildfire risk on their properties through forest management. All this work is focused on reducing fire risk and ensuring healthy timber ecosystems. 7. Bennett Lumber, as a private company, a member of the public, and a private landowner, has an interest in reducing fire risk on state, private, federal, and industrial lands throughout Idaho. DECLARATION OF HALLI HEMINGWAY IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -2 8. Based on my training and experience in the timber management industry for over twenty years, the State Forester is well positioned to recommend actions to reduce fire risk statewide and holds the appropriate experience and knowledge regarding fire risk to make those recommendations. 9. As part of my duties and position with Bennett Lumber, I am aware that we rely on the State Forester's recommendations regarding best practices for active forest management that support timber supply to our mills. 10. I believe it is very important that A vista's Wildfire Mitigation Plan address the issues raised by the State Forester, as they are relevant and reasonable to mitigating wildfire risk. 11. I have personally reviewed the recommendations of the Idaho State Forester as they relate to A vista's Wildfire Mitigation Plan, and I find them to be just, reasonable, and in the public interest. In short, I agree with those recommendations. 12. I am able to speak to the following recommendations that were not required to be included in A vista's plan, and the resulting risks: a. Modeling inputs. Accurate wildfire risk modeling depends on sound data inputs, including fuel loads, vegetation type and density, and terrain. Avista's 2026 Wildfire Mitigation Plan states that it uses a custom risk model incorporating public and proprietary data, including vegetation, topography, weather, historical fire activity, and infrastructure location, but the plan does not describe how these inputs are weighted, calculated, or verified. The plan also states that A vista is replacing this model with a new system that was still under development at the time of filing. Without descriptive narrative detail on these modeling inputs, DECLARATION OF HALLI HEMINGWAY IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 3 landowners such as Bennett Lumber cannot evaluate whether the risk assessments guiding A vista's mitigation actions, including vegetation and timber removal on lands we manage or supply from, accurately reflect actual forest conditions. Inaccurate or unverified data inputs in a model result in inaccurate risk modeling, which helps no one. b. Fair market value of timber. A formal process to determine the fair market value of timber is an important consideration for Bennett Lumber's operations. A vista's own 2026 Wildfire Mitigation Plan confirms this gap. In its Marketable Timber section, A vista states that it does not currently have any agreements or rules with timber companies governing how payments at fair market value will be made for the removal of live, merchantable timber, and that whether payment is required, how value would be determined, and the amount owed are all resolved through conversation with the landowner at the time of removal. For a landowner and timber supplier such as Bennett Lumber, this means there is no defined methodology, no consistent standard, and no advance certainty regarding compensation when merchantable timber must be removed from private land within a right of way. Businesses cannot operate or plan around this type of uncertainty, and this uncertainty will also increase costs for Idaho consumers who use this lumber, with collateral consequences to many Idahoans in that regard. This unpredictability is precisely what a formal, published valuation process would resolve. 13. If wildfire risk is not adequately addressed, the costs to Bennett Lumber will increase due to the loss of timber on our own property, as well as losses on properties that could DECLARATION OF HALLI HEMINGWAY IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -4 otherwise serve as potential suppliers of timber to our mills. Bennett Lumber is invested in sound forest management decisions that reduce wildfire risk, and the failure to implement the State Forester's recommendations increases both the likelihood and severity of these losses. I declare under penalty of perjury that the foregoing is true and correct. Halli Hemingway Dated: 8/('0 JA 9,(.p DECLARATION OF HALLI HEMINGWAY IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 5 Tara Malek, ISB #8709 SMITH+MALEK, PLLC RECEIVED DBA Malek+Malek AUGUST 11, 2026 601 E. Front Ave, Ste. 304 IDAHO PUBLIC Coeur d'Alene, ID 83814 UTILITIES COMMISSION P. (208) 215-2411 F. (208) 215-2416 E: service(&malekattome s BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION Case No. AVU-E-25-15 STAFF'S APPLICATION FOR APPROVAL OF A FILING PROCESS DECLARATION OF PATRICK FOR WILDFIRE MITIGATION MOROLLA IN SUPPORT OF BENNETT PLANS LUMBER PRODUCTS, INC., MANULIFE INVESTMENT MANAGEMENT, MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 I, Patrick Morolla, declare under penalty of perjury pursuant to the law of the State of Idaho that the following is true and correct: 1. I am over the age of 18 and competent to testify to the matters contained herein. 2. I am currently employed as Region Manager, Inland North Region, for Manulife Forest Management. In that capacity, I am responsible for oversight of timberland management activities within the Inland North Region, including management of forest resources, operational planning, wildfire preparedness, contractor oversight, road systems activities, vegetation management, and protection of timberland assets across approximately 122,000 acres of forestland in Idaho. 3. I have worked in the forest products and timberland management sector for approximately 20 years. My responsibilities regularly require interaction with forestry DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 1 professionals, wildfire management personnel, state and federal resource agencies, contractors, and landowners regarding matters affecting timberland management and wildfire risk. This includes working with Idaho Department of Lands (IDL) and the Idaho State Forester and relying on information provided regarding ie: forest health, forest practices rules, fuels conditions, wildfire conditions, and wildfire mitigation practices. 4. Over the past 13 years, I have managed and overseen forestlands containing extensive timber and vegetation resources that are subject to significant wildfire risk. My responsibilities have regularly included evaluating wildfire hazards, implementing fire prevention and fuel mitigation projects, coordinating with state forestry agencies and fire response organizations, and assessing the impacts of wildfire on timberland assets, operations, and public safety. 5. I have received firefighter training and education in wildfire behavior and have been directly involved in wildfire mitigation activities, fuel reduction projects, and fire suppression efforts on timberlands. Through my forestry and land management responsibilities, I have gained firsthand experience observing wildfire behavior, assessing fire risk, and developing and implementing mitigation strategies throughout Idaho and the Inland Northwest. 6. As wildfire frequency, severity, and complexity have increased across the region, wildfire mitigation, preparedness, and suppression have become an increasingly important component of my professional responsibilities. I continue to expand my knowledge through ongoing training, practical field experience, and collaboration with fire management agencies and forestry professionals. DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -2 7. I am aware that wildfire can result in significant losses to timber assets, forest roads, bridges, culverts, recreational infrastructure, wildlife habitat, watershed values, and future forest productivity. Based on my experience, the risk of catastrophic wildfire increases when wildfire planning and mitigation activities are not informed by accurate local conditions, sound risk modeling, and input from individuals with specialized wildfire expertise. 8. In the course of my duties, I regularly consult with and rely upon information and recommendations provided by the Idaho State Forester and the Idaho Department of Lands (IDL) regarding forest health conditions, forest management practices rules, fire behavior, fuel loading, vegetation conditions, and wildfire risk. The State Forester and IDL possess expertise, data, and technical resources relating to wildfire risk and forestland conditions that are valuable and relevant to decisions affecting management and protection of timberland assets. 9. I have found the State Forester's recommendations to be useful because they are informed by technical expertise, statewide experience, and access to information that private landowners and timber managers often do not possess independently. 10. I have reviewed the recommendations submitted by the Idaho State Forester regarding Avista's Wildfire Mitigation Plan and understand that several recommendations were not incorporated into the approved plan, including: risk modeling inputs, cost-benefit analysis of mitigation measures, activities intended to reduce damage from wildfire events, formal timber valuation procedures, wildfire-specific worker qualifications and vegetation inspection practices, county fire planning group input, and consideration of factors such DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 3 as infrastructure condition and age, vegetation height, soil conditions and damaging wind events in wildfire risk modeling. 11. Based upon my professional experience, omission of these recommendations creates risk because it can result in wildfire mitigation decisions being made without full consideration of factors that materially influence wildfire ignition, spread, and significant impacts ti working forestlands. For example, 12. Risk Modeling- If wildfire risk models do not adequately account for vegetation types and age, soils, and damaging wind events, wildfire hazards may be underestimated, and priority mitigation efforts may not be directed to the areas of greatest risk. a. External Wildfire Events- Wildfires often originate outside utility corridors or property boundaries. Plans that do not clearly identify ways utility infrastructure will be protected from, or managed during, external wildfire threats may leave landowners and forest resources exposed to increased wildfire impacts. b. Vegetation Management- If vegetation inspections and management activities are not focused on wildfire-related hazards, conditions that contribute to ignition or fire spread may not be identified or unaddressed. c. County Fire Planning Input- County fire planning groups provide important local knowledge regarding access constraints, and fire history, fuel conditions, and suppression challenges. Excluding that input can reduce the effectiveness of wildfire mitigation planning. d. Timber Valuation- Without a clearly defined timber valuation process, it becomes more difficult to accurately quantify wildfire-related losses and damages. DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 -4 Timberland owners and managers rely on clear and defensible valuation methods when assessing impacts to timber resources. 13. Based upon my experience managing timberland assets exposed to wildfire risk, failure to adequately address the recommendations of the Idaho State Forester would increase wildfire exposure and risk to lands under my responsibility. Manulife Forest Management manages approximately 122,000 acres of timberland in Idaho, including approximately 88,411 acres located within or adjacent to Avista's service area. Wildfire affecting these lands could result in significant impacts to forest resources, infrastructure, operational activities, and long-term forest productivity. a. Examples of potential impacts include: i. Timberland and Resource Exposure 1. Damage to commercial timber resources and associated natural assets. 2. Loss of current and future forest productivity. 3. Impacts to wildlife habitat, watershed values, recreational resources, and other ecosystem benefits. 4. Reduced ability to meet long-term forest management objectives. ii. Reforestation and Rehabilitation 1. Significant post-fire reforestation and rehabilitation requirements. 2. Costs associated with site preparation, seedling establishment, planting, vegetation management, and restoration activities. 3. Delays in returning affected areas to productive forest conditions. DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 5 4. On large ownerships, post-fire recovery costs can range from millions to tens of millions of dollars depending on the extent and severity of impacts. iii. Transportation Infrastructure 1. Damage to the 1,478 miles forest roads, culverts, bridges, drainage systems, and other transportation infrastructure that support forest management and emergency response activities. 2. Increased maintenance, repair, and reconstruction requirements following a wildfire. 3. Loss of access that could hinder firefighting efforts, timber management activities, and public safety response. iv. Operational Impacts 1. Disruptions to planned harvest, silviculture, road maintenance, and resource management activities. 2. Increased costs associated with monitoring, mitigation, and remediation efforts. 3. Delays in implementing management objectives and reduced operational flexibility. 4. Loss of future management opportunities resulting from wildfire-related impacts. V. Liability and Risk Management 1. Increased exposure to property damage, environmental impacts, and recovery costs. DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 6 2. Potential legal, regulatory, and liability considerations associated with wildfire events. 3. Financial impacts extending beyond the immediate area affected by a wildfire. vi. Based on my professional experience, a major wildfire affecting commercial timberlands has the potential to result in damages and recovery costs ranging from millions to tens of millions of dollars when considering forest resource losses, infrastructure damage, reforestation requirements, operational disruptions, and long-term impacts to forest productivity. The implementation of the Idaho State Forester's recommendations would help reduce these risks and support the protection of forest resources, infrastructure, operational continuity, and public safety. 14. Concluding Statement a. Based on my professional experience managing timberland assets in wildfire-prone landscapes, I believe the Idaho State Forester's recommendations would improve Avista's Wildfire Mitigation Plan, and the costs associated with implementing these recommendations are likely to be significantly less than the potential costs associated with a major wildfire event affecting commercial timberlands, infrastructure, natural resources, public safety, and/or neighboring landowners. DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 7 b. I therefore support incorporation of the State Forester's recommendations into Avista's Wildfire Mitigation Plan and believe those recommendations are reasonable,justified, and in the public interest. I declare under penalty of perjury that the foregoing is true and correct. DATED this I Ith day of August 2026. Signature DECLARATION OF PATRICK MOROLLA IN SUPPORT OF BENNETT LUMBER PRODUCTS, INC.,MANULIFE INVESTMENT MANAGEMENT,MOLPUS WOODLANDS GROUP,AND STIMSON LUMBER COMPANY'S RESPONSE TO ORDER 37064 - 8