U.S. Forest Service, Arizona sign agreement to restore forests, protect watersheds, and support rural economies

The Kaibab National Forest and the Arizona Department of Forestry and Fire Management (DFFM) are partnering to reduce wildfire risk and improve forest health on nearly 14,000 acres of National Forest lands in northern Arizona. Through a new Good Neighbor Agreement (GNA), DFFM will administer forest restoration activities that help protect communities, strengthen water security for millions of Arizonans, conserve natural resources, and support the state’s forest products industry and rural economies.   

“The Kaibab Good Neighbor Agreement strengthens our long‑standing partnership with the State of Arizona and underscores our shared commitment to active forest management that supports healthy forests, resilient rural economies, and the working landscapes that sustain farming and ranching across the state,” said Southwest Regional Forester Michiko Martin. “Together, we are accelerating fuel‑reduction work in critical watersheds that provide water to millions across the state, while supporting a sustainable timber and forest products industry through an estimated 36 million board feet of commercial timber and the jobs it supports in rural communities.”

“This agreement represents an important step forward for the protection of forests in Arizona,” said Governor Katie Hobbs. “By bringing together the State of Arizona, the USDA Forest Service, and Salt River Project, we are leveraging funding and expertise to restore nearly 14,000 acres of forestland. The Sunflower project will reduce wildfire risk, improve watershed health, and deliver millions of board feet of timber to support rural jobs and Arizona’s forest products industry. The Kaibab Good Neighbor Agreement shows what’s possible when we work together and operate at the pace and scale Arizona’s forests require.”

DFFM is expanding the impact of the project through its partnership with Salt River Project (SRP). The Forest Service is providing $6.4 million in Infrastructure Investment and Jobs Act (IIJA) funding that is being doubled through a dollar-for-dollar match by SRP. This expanded funding significantly increases the number of acres that can be treated and strengthens watershed resilience for communities throughout Arizona. 

Timber‑sale revenue and project efficiencies realized through the agreement will be reinvested directly into new restoration work, increasing the total number of acres treated across northern Arizona. 

“SRP is proud to be a part of this historic milestone as these three partners further their commitment to restoring our forests to a healthier condition that will help ensure water reliability and protect communities and habitats,” said Jim Pratt, SRP General Manager and Chief Executive Officer. “As with all things regarding water, these milestones require critical partnerships across Arizona and that is exactly what we are seeing here today.”

Work will begin immediately on the first project under the Kaibab Good Neighbor Agreement, the Sunflower Restoration Project. DFFM will obtain forestry-related services for planning, preparation, and implementation of timber sales south of the City of Williams and Interstate 40.  

In addition to protecting water supply, communities, and infrastructure, the project will provide an estimated 36 million board feet of commercial timber to local industry, supporting jobs in rural communities. 

The Kaibab GNA is part of a broader shared‑stewardship effort between the Forest Service and the State of Arizona. Building on the 2021 Master Good Neighbor Agreement and the 2024 Shared Stewardship Agreement, both organizations continue to expand restoration efforts across Arizona’s national forests to reduce wildfire risk, strengthen watersheds, and support the forest products industry and local economies. 

The agreement area is also part of the Four Forest Restoration Initiative (4FRI), a long‑running collaborative effort across northern Arizona that brings together local governments, industry, nonprofits, and state and federal agencies to accelerate restoration. In addition to improving coordination of restoration strategies, 4FRI partners completed extensive environmental analyses under the National Environmental Policy Act, which now enables projects like the Kaibab Good Neighbor Agreement to move forward more efficiently and at a meaningful landscape scale.