Center For Sustainable Economy, Resps V. Wa State Dept Of Natural Resources, Apps

Court of Appeals of Washington·Decided April 13, 2026·No. 86667-2·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE

CENTER FOR SUSTAINABLE ECONOMY, LEGACY FOREST No. 86667-2-I DEFENSE COALITION and SAVE THE OLYMPIC PENINSULA, ORDER DENYING MOTION FOR RECONSIDERATION,

Respondents, WITHDRAWING OPINION, AND SUBSTITUTING

v. OPINION

WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES, BOARD OF NATURAL RESOURCES, WASHINGTON STATE DEPARTMENT OF ECOLOGY; and COMMISSIONER OF PUBLIC LANDS HILARY FRANZ, in her official capacity,

Appellants.

The Respondents have moved for reconsideration of the published opinion filed on February 17, 2026. The panel has considered the motion and has determined that the motion should be denied, the opinion should be withdrawn, and a substitute opinion be filed.

Now, therefore, it is hereby ORDERED that the respondent’s motion for reconsideration is denied; and it is further ORDERED that the published opinion filed on February 17, 2026, is withdrawn; and it is further

No. 86667-2-I/2

ORDERED that a substitute published opinion be filed.

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

CENTER FOR SUSTAINABLE ECONOMY, LEGACY FOREST No. 86667-2-I DEFENSE COALITION and SAVE THE OLYMPIC PENINSULA, DIVISION ONE

Respondents, PUBLISHED OPINION v.

WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES, BOARD OF NATURAL RESOURCES, WASHINGTON STATE DEPARTMENT OF ECOLOGY; and COMMISSIONER OF PUBLIC LANDS HILARY FRANZ, in her official capacity,

Appellants.

COBURN, J. — One hundred acres of forest-land held in trust by the State are subject of this appeal. The State proposed harvesting this land as part of an approved, long-term sustainable harvest level decade plan. That plan was based on a final environmental impact statement that considered climate change impacts from a landscape perspective of all Western Washington forested land held in trust. The Department of Natural Resources (DNR) issued a determination of nonsignificance for the harvest, which several environmental groups challenged. The superior court rejected the determination and ordered the state agency to (1) assess site-specific climate change impacts; and (2) to consider, as required under RCW 43.21C.030(2)(e),

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proposed alternative uses for the specific subject resources. We conclude the determination of nonsignificance was not clearly erroneous and strike the superior court’s order requiring DNR to conduct a site-specific climate impact assessment but hold that DNR must comply with RCW 43.21C.030(2)(e) before any future sale can be approved. Accordingly, we reverse in part, affirm in part, and remand.

BACKGROUND

The Washington State Department of Natural Resources (DNR) and the Board of Natural Resources (Board) manage approximately three million acres of forested state- owned lands. Conservation Nw. v. Franz, 199 Wn.2d 813, 817, 514 P.3d 174 (2022). Pursuant to the Omnibus Enabling Act of 1889, ch. 180, 25 Stat. 676 (Enabling Act), the federal government granted to the State of Washington several hundreds of thousands of acres of land. Conservation Nw., 199 Wn.2d at 817. “This significant land grant was made ‘for the support of common schools’ and other state institutions.” Id. Our state Supreme Court determined that the Enabling Act “make[s] clear that the federal government intended to create a trust whereby the State accepted control of the granted lands with the express understanding that the lands were not its absolute property but, instead, were to be held and used exclusively for the enumerated purposes.” Id. at 826. Additionally, pursuant to RCW 79.22.040, individual counties have granted land to the State “with the explicit understanding that they are held in trust for the benefit of those counties.” Id. at 817.

“The creation of a trust imposes several key duties on the trustee.” Id. at 829.

“With respect to trusts in land, specifically, the trustee owes a general duty ‘to use reasonable care and skill to make the trust property productive’ through leasing or

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managing it to generate income.’” Id. at 829-30 (citing RESTATEMENT (SECOND) OF TRUSTS § 181 & cmt. a (A.L.I. 1959)).

The Enabling Act did not restrict the State to a specific actual use of granted lands. Id. at 833. Rather, the state legislature requires DNR to utilize a “multiple use” concept in administering public lands. RCW 79.10.120. Accordingly, “[t]here appear to be myriad ways DNR could choose to generate revenue from the state and forest board lands or otherwise put them to use for the benefit of the enumerated beneficiaries.” Conservation Nw., 199 Wn.2d at 833-34.

One such way was through the Habitat Conservation Plan (HCP), which DNR created in 1997 to conserve habitat for endangered species. This plan was submitted to the United States Department of Fish and Wildlife and the National Marine Fisheries Service for review to determine whether the plan complied with the Endangered Species Act of 1973, 16 U.S.C §§ 1531-1544. The HCP covers around 1.6 million acres of DNR-managed state forest-land, conserving the habitat of the marbled murrelet, riparian-dependent species, and other species. As a result of creating the HCP, the U.S. Department of Fish and Wildlife granted DNR an “incidental take permit,” shielding it from liability under the Endangered Species Act. The incidental take permit allowed DNR to harvest land under the HCP without violating the Endangered Species Act.

The HCP was amended in 2019 based on a long-term conservation strategy for the marbled murrelet, known as “Resolution No. 1559,” and a new incidental take permit was granted to DNR. Conservation Nw., 199 Wn.2d at 819. DNR based its selection of Resolution No. 1559 on the “Long-Term Strategy for the Marbled Murrelet Final Environmental Impact Statement” (Marbled Murrelet FEIS). The Marbled Murrelet FEIS

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considered eight conservation alternatives, including a “no action” alternative that represented a range of conservation strategies for the marbled murrelet on DNR- managed land. At the time the Marbled Murrelet FEIS was conducted, 1.38 million acres of DNR-managed lands were analyzed and under each alternative it was approximated that between 576,000-743,000 forest acres would be protected. The Board selected the eighth alternative, known as “Alternative H,” which conserved 604,466 acres. 1 The legislature also specifically directs DNR to “manage the state-owned lands under its jurisdiction which are primarily valuable for the purpose of growing forest crops on a sustained yield basis” so that timber is harvested “on a continuing basis without major prolonged curtailment or cessation of harvest.” RCW 79.10.310, .320. “To this end, the department shall periodically adjust the acreages designated for inclusion in the sustained yield management program and calculate a sustainable harvest level.”2 RCW 79.10.320.

For the stated purpose of meeting its obligations under local, state, and federal laws consistent with its policies, including the HCP, DNR proposed to establish a sustainable harvest level for the 2015-2024 planning decade for forested state trust lands in western Washington. In compliance with the State Environmental Policy Act (SEPA), ch. 43.21C RCW, DNR issued the 2019 final environmental impact statement (FEIS) on alternatives for the establishment of a sustainable harvest level to assist in establishing a sustainable harvest level. Under the 2019 FEIS, DNR analyzed six

1 Notably, the Marbled Murrelet Strategy included 441 additional acres to Alternative H located in southwest Washington. Therefore, the total acres conserved under the Marbled Murrelet Strategy was 604,907.

2 RCW 79.10.300(5) defines “[s]ustainable harvest level” as “the volume of timber scheduled for sale from state-owned lands during a planning decade as calculated by the department and approved by the board.”

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