Protecting Forests with Conservation Easements

1. Protecting Forests with Conservation Easements

2. About the Western Pennsylvania Conservancy… • Not-for-profit conservation organization • Membership-based, funded by private and public sources • Founded in 1932 • Conservation,Community Greenspaces, Fallingwater • Over 227,000 acres protected • Over 900 stream miles improved

3. Protection of water quality and forestland • Protection of scenic character • Expansion of outdoor recreation opportunities • Creation of wildlife and recreation corridors • Protection of farmland

4. Johnstown Laurel Highlands Ligonier Somerset Ohiopyle

5. Land conservation “tools”: • Donated conservation easement • Agricultural easement • Purchase for re-sale with restrictions • Purchase for conveyance to state agency • Donations • Clean & Green • Agricultural Security Areas

6. Conservation easements: how they work • An easement is a voluntary legal agreement between landowner and WPC: a “conservation agreement” • Permanently limits future development and subdivision of property • Each easement is unique, written to protect the conservation values of the land and meet landowner’s conservation goals • Land remains private property • Farming and timber harvesting may continue

7. Conservation easements: how they work • Landowner continues to own the land and may sell it or pass it on to heirs • Future owners must abide by terms of agreement; conservancy is responsible for easement monitoring • Property stays on tax rolls • Owner’s use of land typically does not change • Horizontal drilling may be permitted; surface drilling permitted in very limited cases

8. State-maintained road State forest Mature forest House with views Open field 100 acres Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

9. State-maintained road State forest Mature forest Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

10. State-maintained road State forest Mature forest Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

11. State-maintained road State forest Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

12. State-maintained road State forest Open field Mature forest High –quality stream Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

13. State-maintained road State forest Open field High –quality stream Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

14. State-maintained road State forest Open field High –quality stream Steep slopes Steep slopes Possible Land Use Without Conservation Easement State forest

15. State-maintained road State forest Mature forest House with views Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use With Conservation Easement State forest

16. State-maintained road State forest Mature forest House with views Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use With Conservation Easement State forest

17. State-maintained road State forest Mature forest Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use With Conservation Easement State forest

18. State-maintained road State forest 75 acres Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use With Conservation Easement State forest

19. State-maintained road State forest Mature forest Open field Mature forest High –quality stream Mature forest Steep slopes Steep slopes Possible Land Use With Conservation Easement State forest

20. About stewardship… Stewardship ensures that the conservation easement goals are upheld in perpetuity. WPC is legally responsible for perpetual monitoring of easements. WPC’s stewardship activities: • recording baseline information utilizing photography, GIS, and GPS • annual monitoring of protected properties • upholding of easements • documenting changes to properties

21. How landowners benefit from a conservation easement… Permanent protection of the land they care about Creating a legacy for future generations Living in a conservation “neighborhood”

22. Potential tax benefits • Federal income tax deduction • Reduced estate taxes • Reduced property taxes (?)

23. Donated Conservation Easement 55 acres Somerset County

25. Clean & Green • PA Dept. of Ag. Program; administered by county tax assessment office • Adjusts property tax rate for enrolled landowners – property is assessed at current use rather than fair market value • Agricultural Use – produces a commodity • Agricultural Reserve – noncommercial open space, open to the public without a fee (other 2 categories do not require public access) • Forest Reserve – timberland

26. Clean & Green • Must have at least 10 acres; less than 10 will qualify if at least $2,000 of income is generated from the land • Landowner can withdraw from program, but penalty is payment of “roll-back” taxes for the most recent seven years, plus interest

27. Differences between Conservation Easement (CE) and Clean & Green (C&G): • CE is perpetual; C&G is not • CE effects federal income taxes; C&G effects property taxes (Estate taxes may be reduced by both) • C&G does not involve a land trust • Approx. 600,000 acres under CE in PA; approx. 9.3 million acres enrolled under C&G

28. Website: http://law.psu.edu/_file/aglaw/ Pennsylvania_Clean_and_Green.pdf

29. A landowner’s next steps… • Determine conservation goals • Talk with family, co-owners, neighbors • Talk with legal and financial advisors • Read further, ask questions • Contact WPC, your local land trust, or the county tax assessor’s office

30. Questions? Mike Kuzemchak mkuzemchak@paconserve.org (724) 238-2492