FOREST SERVICE HANDBOOK PACIFIC SOUTHWEST REGION (R5) VALLEJO, CALIFORNIA R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY Amendment No.: R5 6509.22-2015-1 Effective Date: 10/2/2015 Duration: This amendment expires 5 years from the effective date unless superseded or removed earlier. Approved: Randy Moore, Regional Forester Date Approved: 9/11/2015 Posting Instructions: Amendments are numbered consecutively by title and calendar year. Post by document; remove the entire document and replace it with this amendment. Retain this transmittal as the first page(s) of this document. Last Change: 6509.22-2014-01 to Chapter 20 New Document: 6509.22_20, 12 Pages Superseded Document(s): 6509.22-2014-1, Chapter 20 Digest: Completed 5-year review and converted to a 508 compliant format. CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 21 - INTRODUCTION The authority to issue a bill for damages resulting from a trespass fire has been delegated to the Claims Officer at the Albuquerque Service Center (ASC). Following a fire, it may be necessary to complete a Resource Damage Assessment. The Forest Supervisor is responsible for determining and documenting BAER and all other resource damages and associated costs, collectively called the Resource Damage Assessment. Upon receipt of a Report of Investigation of the fire’s cause and origin, or upon other notification of a potential trespass fire, the Claims Branch in the Albuquerque Service Center will send a letter to the Forest Supervisor requesting a Resource Damage Assessment. The Forest’s assessment of damages and costs should be started as soon as practicable following control of the fire, and should be completed in a timely manner after consultation with the Regional Forester and Claims Branch personnel. The Claims Branch will determine total suppression costs using transaction register records. Those costs will be supported with documents collected from the incident forest and other units that provided suppression resources to the fire. Suppression costs will not be a part of the Resource Damage Assessment conducted by the forest. This chapter and Chapters 30, 40 and 50 describe the methodologies for specific aspects of the Resource Damage Assessment. This chapter also identifies the specific components of and the overall requirements for planning and funding the completion of a damage assessment including managing the process, the documentation and recordkeeping, and the format of the final report. 22 - RESOURCE DAMAGE ASSESSMENT RESPONSIBILITY As previously noted, the Forest Supervisor is responsible for the timely completion of the Resource Damage Assessment following a fire. Exhibit 01 below outlines key steps for completing the assessment. 22 - Exhibit 01: Steps for Completing a Resource Damage Assessment 1. Fire Occurs 2. Albuquerque Service Center (ASC) Collects Suppression Costs 3. ASC Sends Letter to the Forest Requesting a Resource Damage Assessment 4. Forest in Consultation with the Region Develops a Plan for Completing the Resource Damage Assessment 5. Forest in Consultation with the Region Develops a Plan for Cruising Killed or Severely Damaged Timber 6. Region in Consultation with the Forest Completes an Appraisal of the Timber Using Standard Forest Service Appraisal Methods 7. Region in Consultation with the Forest Completes an Ecosystem Services Loss Valuation 8. Forest Prepares a Draft Resource Damage Assessment 9. Forest, Region and OGC Meet to Review Draft Resource Damage Assessment Page 2 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 10. Forest Prepares a Final Resource Damage Assessment Report and Submits it to ASC 22.1 - PURPOSE A Resource Damage Assessment is a critical component of the Agency’s determination of total damages incurred as a result of a trespass fire that burns on National Forest System lands. The major components of a typical Resource Damage Assessment include the loss of timber, BAER costs; restoration costs; and other resource loss and damage. These other resources include the loss of ecosystem services, loss of or damage to improvements and heritage resources, work necessary to address the exposure of abandoned mine sites and loss of income. They also include the costs of the assessment and administrative costs associated with all of the above activities. 22.2 - RAPID ASSESSMENT OF TIMBER LOSSES AND REFORESTATION NEEDS The Forest may want to make a quick assessment of timber losses. Therefore, the Pacific Southwest Region has developed rapid assessment techniques to quickly and efficiently determine the loss of timber. While it may be useful in determining future actions, it is not a substitute for the detailed timber appraisal that is required as part of the damage assessment. The techniques for this rapid assessment are in the appendix in Chapter 60. 23 - ELEMENTS OF A RESOURCE DAMAGE ASSESSMENT This section describes the components of a typical Resource Damage Assessment. However, fire-specific issues may cause additions to or subtractions from this generalized example. 23.1 - SUPPRESSION COSTS Suppression costs are not part of the Resource Damage Assessment. They include all costs directly related to the suppression and management of the fire. These costs are obtained by ASC through other processes. 23.2 - BAER COSTS This information, obtained from the Forest BAER coordinator, should be part of the damage assessment, and is based upon the findings of the BAER Survey Team as reported in the 25008, “Burned Area Report.” The information will be updated, as applicable, with any changes resulting from implementation of the BAER Plan. 23.3 - RESTORATION COSTS In a forested landscape that burns, the greatest costs for restoration are typically the reforestation costs. The costs of restoration reflect the anticipated costs to reforest areas within the fire that have burned into a deforested condition. The methodology for determining the need for reforestation and the costs for the damage assessment are found in Chapter 30 of this handbook. Restoration costs may also include costs associated with stream bank restoration or other watershed work that did not qualify for BAER as well as range vegetation restoration, culvert and ditch cleaning, added road maintenance, etc. Restoration costs may also include treatment of invasive species or treatment to restore special areas. Page 3 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 23.4 - NATURAL RESOURCE LOSSES Natural resource losses may include the total or partial loss of vegetation including merchantable timber, advanced regeneration, sub-merchantable timber, range vegetation and rare and endangered plants. Losses may also include wildlife, wildlife habitat and forage as well as aesthetic value, dispersed recreation opportunities, air quality, and water quality, flow and timing. This summary of potential natural resource losses is not all-inclusive and may expand or contract depending upon the specific conditions following a fire. Specific methodologies for determining valuation of these losses are found in Chapters 40 and 50 of this handbook. 23.5 - LOSS OR DAMAGE TO HERITAGE RESOURCES Heritage Resources encompass the evidence of human presence and activity from the past. The sites of these activities include both historic and pre-historic evidence ranging from lithic scatters to mining cabins. Fires may damage, destroy, expose or otherwise put at risk irreplaceable relics of the past. The government is obligated to protect these resources and following a fire, additional protection may be necessary. Depending upon the type of resource and the nature of the damage or disturbance, protection may require a wide range of activities. These protection activities may include stabilization, data recovery, restoration or some other appropriate technique. See Chapter 50 for more detail. 23.6 - ABANDONED MINE SITE HAZARD ABATEMENT Abandoned mines are scattered across the landscape on many national forests. Fires may eliminate the vegetation providing the natural concealment of hazardous mines thus requiring the Forest Service to expend funds to abate the hazard. 23.7 - LOSS OR DAMAGE TO IMPROVEMENTS Improvements include but are not limited to roads, trails, bridges, drainage structures, fences, buildings, recreation facilities, property boundaries and survey monuments, etc. The loss or damage should be appraised by determining replacement or repair costs. 23.8 - LOSS OF INCOME Loss of income to the government as a result of the fire may occur and may be appropriate to include in a Resource Damage Assessment when the source of the income is damaged or destroyed or otherwise limited by the fire. Examples include revenue from a ski resort special use permit, grazing fees forgone until the fire area is again suitable for grazing, etc. The value should be calculated as the present value of a future stream of income for the time necessary to rebuild or restore the source of the income. Present value is considered to be at the time of the fire. 23.9 - ASSESSMENT COSTS Each of the elements of a Resource Damage Assessment may have expenditures associated with determining the cost or loss to those resources. These costs may be compensable, and cost records should be maintained for each section of the Resource Damage Assessment. 23.10 - ADMINISTRATIVE COSTS Reasonable administrative costs may be incorporated in a Resource Damage Assessment; therefore, standard national and regional assessments for overhead apply to all contracts used to arrive at the damage assessment and to complete all restoration work. Standard “cost to government” wage rates for employee time are also appropriate as are vehicle costs, necessary Page 4 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 travel, etc. These costs should be tracked and linked to the specific activities identified in the damage assessment. 24 - COMPLETION OF THE RESOURCE DAMAGE ASSESSMENT If ASC requests an assessment of resource damages as a result of a fire, the Forest Supervisor will develop a plan for completing a detailed damage assessment. The Forest Supervisor as a minimum will consider and include as appropriate, the following: 1. Detailed summary of BAER costs 2. Detailed appraisal of the loss of timber 3. Detailed summary of the loss of other natural resources 4. Detailed summary of the costs of reforestation and other restoration 5. Detailed summary of loss or damage to improvements 6. Detailed summary of costs to protect, stabilize or recover data from heritage resources 7. Detailed summary of the costs necessary to abate abandoned mine hazards 8. Detailed summary of the loss in income 9. Detailed summary of the costs to complete the damage assessment 24.1 - RESOURCE DAMAGE ASSESSMENT PLAN The Resource Damage Assessment Plan will identify the lead person for the Forest, the estimated funding needs and a schedule for completion of the final damage assessment similar to the example (exhibit 01). Once the plan is agreed upon, the Regional Forester will identify the Regional Forester’s contact person, the lead OGC attorney and the ASC Claims Specialist assigned to the case. The Forest Supervisor shall develop appropriate project work plans and job codes to assure accurate planning and cost accounting by damage assessment activity. All financial records should d be maintained in hard copy format as well as electronically. 24.1 Exhibit 01: Summary of Planned Costs and Schedule for Completion of the XYZ Fire Resource Damage Assessment (example) Type of Loss, Cost or Damage to be Assessed BAER Costs Restoration Costs (reforestation ) Restoration Costs other (be specific) Timber Volume Timber Valuation Ecosystem Services Loss Valuation Costs to Determine the Amount of Damages or Costs of Restoration Completion Date Page 5 Contact person CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 Type of Loss, Cost or Damage to be Assessed Heritage Resources Costs and Damages Abandoned Mine Hazard Abatement Loss or Damage to Improvements (bridges, trails, buildings etc.) Loss of Income Invasive Species Treatment Other (be specific) Total Costs to Assess Loss, Damage, and Costs of Restoration Costs to Determine the Amount of Damages or Costs of Restoration Completion Date Contact person 24.2 - OTHER COSTS All other post-fire costs should be charged based upon the Primary Purpose principle. The costs for each of these activities undertaken should be charged to a unique job code established after consultation with the Regional Office. 25 - FINAL RESOURCE DAMAGE ASSESSMENT REPORT The Resource Damage Assessment produced by the Forest Supervisor will be submitted to the Albuquerque Service Center as a final document as of the date of submittal. The Resource Damage Assessment Report summarizes the reasonable determination of the value of all losses and costs incurred as of the date of the report and the reasonably foreseeable costs that will occur in the future as a result of the fire. Additionally, it summarizes all costs expended to develop the Resource Damage Assessment. Data used to develop costs and losses will be either in the body of the Report, the Appendix or the Record. Following is a sample format for the report. 25.1 - INTRODUCTION Include a brief description of the event, including the location of the fire, the date and time the fire started, when it was contained, when it was controlled and when it was declared out. Identify the weather and other notable facts, the number of acres within the fire perimeter identified by general ownership (national forest, private industrial, BLM, etc.) It is also desirable to include a map and representative photographs. The Forest Supervisor should prepare a thorough narrative that describes the losses in qualitative terms. The narrative should convey the impacts to the resources damaged or destroyed. It should identify the significance of the damages such as the importance of habitat lost or particular species lost, impact to downstream water users, other impacts to the local communities, etc. This is the Forest Supervisor’s opportunity to clearly describe the damage done by the fire to the public’s resources and the significance of those losses. Page 6 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 25.2 - COST AND DAMAGE SUMMARY The summary is a listing of all the damages and costs incurred to date and those reasonably foreseeable costs as a result of the fire. Following is an example of a summary: 25.2 Exhibit-01: ABC FIRE XX/XX/XXXX Resource Damage Assessment Summary Big Piney National Forest Fire Damage or Fire Cost Category Damage or Cost Incurred Through (date) BAER Costs Reforestation Costs Other Restoration Costs Value of Killed or Severely Damaged Timber (minus the value of any salvage timber sold) Value of Damaged or Destroyed Improvements Costs to Restore or Protect Heritage Resources Costs to Abate Abandoned Mine Hazards Value of Lost Ecosystem Services Other (be specific) Assessment Costs Sub-Totals Net Total Resource Damage and Costs Estimated Reasonably Foreseeable Costs Beginning on (date) 25.3 - SUPPRESSION COSTS ASC Claims is responsible for determining suppression costs and for verifying and documenting them in coordination with the Forest. Suppression costs are not a part of this assessment. 25.4 - BAER COSTS Include a table summarizing all the funds expended to complete the BAER analysis plus all the costs of work completed and planned in the BAER implementation effort. Copies of all approved issues (Initial, Interim, and Final) of the BAER report, with associated correspondence, will be included in the Appendix. All supporting documentation for the BAER reports and BAER expenditures will also be included in the Record. 25.5 - RESTORATION COSTS For reforestation costs, include Tables1, 2, 3, 4, and 5 (section 34, exhibits 01, 02, 03, 04, and 05) from Chapter 30 with a brief narrative describing the process for developing the costs. Page 7 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 34 - Exhibit 01: Estimate of Reforestation Costs on the XYZ Complex (example) Standard Direct Per Acre Treatment Costs $540 Site Preparation $10 Cone Collection $15 Seed $90 Seedling $100 Planting $290 Release $20 Survival Survey $20 Natural Regeneration Survey TOTAL REFORESTATION COST ESTIMATE XYZ Complex Treatment Acreage (nearest thousand) 20,000 20,000 20,000 20,000 20,000 50,000 50,000 0 Cost Estimate $10,800,000 $200,000 $300,000 $1,800,000 $2,000,000 $14,500,000 $1,000,000 $0 $30,600,000 For other restoration work, summarize the costs in a table similar to section 35, exhibit 01. Also include a brief narrative describing the restoration activities and costs. For all restoration work, include the appropriate references regarding the location of the supporting data. 35 - Exhibit 01: Summary of Non-Reforestation Restoration Costs (example) Activity Watershed Restoration (headcut repair) Supplemental Road Maintenance (5 years) Invasive Species Treatment Range Vegetation Restoration (bitterbrush replanting and protection) Sensitive Plant Rehabilitation Total Estimated Cost $240,580 $180,000 $85,000 $220,000 $25,000 $750,580 25.6 - TIMBER LOSS Include tables similar to section 43, exhibits 01, 02, and 03 from Chapter 40 with a brief explanation of each. Specifically describe the condition of the timber being included in the assessment (e.g. dead, severely damaged - expected to die within 3 years, etc.) Briefly describe the methodology used to cruise and appraise the timber. Include information regarding any salvage effort. Also include the appropriate references regarding the location of the supporting data. 43 - Exhibit 01: Final Volume and Value of the Timber Resources Severely Damaged or Destroyed (example) Land Classification General Forest Wilderness Wild and Scenic River Acres Volume (CCF) Volume (MBF) Page 8 Delivered Log Value Logging and Haul Costs Estimated Stumpage CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 Land Acres Classification Other (only include congressional designations) Totals Volume (CCF) Volume (MBF) Delivered Log Value Logging and Haul Costs Estimated Stumpage $2,000,000 43 - Exhibit 02: Volume and Value of Salvage Timber Sold (example) Salvage Sale Volume Stumpage Value Received ABC Salvage DEF Salvage GHI Salvage Totals 1.2 mmbf .8 mmbf .4 mmbf 2.4 mmbf $70,000 $45,000 $13,000 $128,000 Costs to plan, Prepare, Sell and Administer Sales $14,000 $12,000 $26,000 $52,000 Net Return $56,000 $33,000 ($13,000) $76,000 43 - Exhibit 03: Table 3. Net Unrecovered Value of Killed or Severely Damaged Timber (example) Damaged Timber Description Estimated Value of All Killed or Severely Damaged Timber Net Value of Salvage Timber Sold Following the Fire Estimated Net Unrecovered Value of Killed or Severely Damaged Timber (include this value in the summary table in the Resource Damage Assessment) Value $2,000,000 $76,000 $1,924,000 25.7 - LOSS OR DAMAGE TO IMPROVEMENTS Include Table 1 (section 52.1, exhibit 01) from Chapter 50 with a brief explanation. Also include the appropriate references regarding the location of the supporting data. 52 - Exhibit 01: Loss or Damage to Improvements including Replacement Costs, Loss of Income and Added Costs for Temporary Use (example) Improvement 9 miles range fence Trail Bridge District Office Sub-total Total Cost Replacement Cost $12,000 Restoration Cost NA Lost Income Added Cost Totals $4,000 NA $16,000 $150,000 $1,200,000 $1,362,000 $1,996,000 NA $30,000 $30,000 NA NA $4,000 NA $600,000 $600,000 $150,000 $1,830,000 $1,996,000 Page 9 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 25.8 - LOSS OR DAMAGE TO HERITAGE RESOURCES Include Table 2 (Exhibit 53.1 - 01) from Chapter 50 with a brief explanation. Also include the appropriate references regarding the location of the supporting data. 53 - Exhibit 01: Heritage Resource Restoration and Protection Costs (example) Site Number 1 1 2 3 4 Total Protection Activity Stabilization Data Recovery Added Protection Data Recovery Costs Incurred $30,000 NA $8,000 Estimated Future Costs NA $15,000 $3,000 Total Costs $30,000 $15,000 $11,000 25.9 - ABANDONED MINE HAZARD ABATEMENT Describe how the change in vegetation as a result of the fire necessitates a need to expend funds to abate the hazard to a pre-fire level. Display costs in table form and include a narrative that explains the development of the costs. 25.10 - ECOSYSTEM SERVICES LOSS VALUATION Include Table 3 (54.1 - Exhibit 01) from Chapter 50. Also include a brief explanation of the concept and a qualitative description of the resources lost or damaged. This should include an explanation of the relative importance of the lost resources to the public. Also include the appropriate references regarding the location of the supporting data. 54 - Exhibit 01: Table 3.Valuation of Lost Ecosystem Services (example) Protected Acres 363,150 Acres of Additional Fuels Treatment Required 72,630 Cost per Acre Total Costs $500 $63,315,000 25.11 - ASSESSMENT COSTS Include a table summarizing the costs to assess the damages caused by the fire (Exhibit 25.10 01). Provide a brief explanation of basis for the costs. 25.11 - Exhibit 01: Table xx. Costs to Complete the Resource Damage Assessment for the XYZ Fire (example) Type of Loss Cost or Damage Assessed BAER Costs Restoration Costs (reforestation ) Actual Costs to determine the amount of Loss Damage or Cost Completion Date P a g e 10 Contact person CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 Type of Loss Cost or Damage Assessed Restoration Costs(hazard tree falling, skidding and decking) Restoration Costs Other (be specific) Volume of Killed or Severely Damaged Timber Value of Killed or Severely Damaged Timber Valuation of Lost Ecosystem Services Heritage Resources Costs and Damages Loss or Damage to Improvements (bridges, trails, buildings etc.) Loss of Income Other (be specific) Total Costs to Assess Loss, Damage and Costs of Restoration Actual Costs to determine the amount of Loss Damage or Cost Completion Date Contact person 25.12 - RETENTION OF DOCUMENTS If a forest is requested to conduct a Resource Damage Assessment, the Forest Supervisor must preserve all documents specifically related to the fire or the assessment of damages. This may include hard copies, email or other electronic documents as well as personal notes 25.13 - APPENDIX Include in the Appendix data and analyses that support the results and conclusions that are presented in the body of the appraisal. The Appendix is a part of the Resource Damage Assessment Report. 25.14 - RECORD Include in the Record additional supporting data, supporting documentation, analyses and other information used to develop the results and conclusions in the body of the appraisal that are not already included in the Appendix. All information will be filed in the Record that corresponds to the section in the body of the appraisal. The Record is not a part of the Resource Damage Assessment Report and remains at the Forest until specifically requested by ASC or OGC. P a g e 11 CHAPTER 20 - PLANNING AND FINANCING FOR COST RECOVERY R5 FSH 6509.22 - FIRE DAMAGES AND COST RECOVERY PROCEDURES Amendment No.:R5 6509.22-2015-1 - Effective Date: 10/2/2015 26 - RESOURCE DAMAGE ASSESSMENT DOCUMENTATION, MONITORING AND UPDATING, AND RECORDKEEPING It is important to keep careful records regarding all information used to determine the values for damages and costs used in the Resource Damage Assessment. 26.1 - DOCUMENTATION Adequate documentation for a Resource Damage Assessment includes all information used to determine the value of damages and costs incurred as a result of the fire with the exception of suppression costs. This material should be in either the body of the Resource Damage Assessment Report, the Appendix or the Record. In general, the body of the Report and the Appendix should contain all of the values for damages to resources and costs incurred and the narrative explanation of each value. The Report with all appendices will be forwarded to ASC when requested. The Record includes supporting data and analyses and references used to complete the Resource Damage Assessment and Report. The Record will remain on the Forest until requested by the Albuquerque Service Center or the Office of General Counsel. Along with data and reports, it may be appropriate to include photographic documentation of the damage and loss of resources and improvements. If available, GPS reference would provide additional supporting information. 26.2 - MONITORING AND UPDATING Costs will be updated quarterly as necessary and the changes will be transmitted to ASC. These updates will continue until the Forest is notified by ASC that they are no longer necessary. 26.3 - RECORDKEEPING For all information developed for the Resource Damage Assessment, there should be one complete set of records maintained in locked files on the forest. A copy will be transmitted to ASC Claims upon request. Each chapter identifies the specific record keeping requirements. The specific records to be maintained for the work described in Chapter 20 include: 1. Final costs for completing the Resource Damage Assessment (Body of the Appraisal) 2. The Resource Damage Assessment Plan (Appendix) 3. Quarterly updates that reflect actual expenditures for completing the damage appraisal (Record) 4. All supporting documentation for all costs estimated and incurred to complete the assessment work. (Record) P a g e 12