States and counties play unique roles in the governance of forests due to their direct ownership of forests, their ability to participate in federal land decision-making, their regulatory authority over private lands within their jurisdictions, and their administration of voluntary and incentive programs. Renewable energy and climate change mitigation policies are examples of new avenues for states and counties to create enabling frameworks for forest stewardship using voluntary and incentive-based approaches. Although some federal agencies and activities greatly affect individual private owners, state and county policies have a more pervasive effect on owners across the landscape. This chapter reviews the varied policy carrots, sticks, and sermons wielded by states and counties and explores the diversity across states in terms of the mix of tools employed.