Pholiota nubigena occurs on conifer debris in high elevation forest in areas with deep winter snowpack. It is common in the Sierra Nevada and Cascade Range of California and Oregon, occasional in isolated peaks in the Siskiyou Range and the northern Rocky Mountains in Idaho, and rare in the Cascade Range in Washington State. It is a common snowbank fungus dependent on thick winter snowpacks to fruit. Snowbank fungi, unique to the western North American mountains, occur in areas with ample snowpack. Its habitat is being drastically affected by changing climate with warmer and drier winters having elevated and lessened the average snowfall. Stoelinga et al. (2010) state that Cascade Range spring snowpack declined 23% during 1930-2007, while Fyfe et al. (2017) cite a 21.8% loss between 1982-1993 and 2000-2010, and models suggest that the rate of snowpack decline will increase substantially by the end of the century (Mote et al. 2005, 2018; Rhoades et al. 2018). As this species is restricted to snowbanks, a population decline of over 30% can be suspected to occur over the range of three generations (30 years) taking into account past and projected loss of suitable habitat. This species is likely dependent on mycophagy (primarily eaten by small mammals) for spore dispersal, and thus, dispersal distance is limited. It is precautionarily assessed as Vulnerable A3c+4c.

The species has been recorded from high elevation forests in the Sierra Nevada, Siskiyou, and Cascade Range in California and Oregon, is rare in the Washington Cascade Range, and is occasional in the Rocky Mountains in Idaho.

Its population is widespread and locally can be very common. The species is found throughout high elevation conifer forests with ample winter snowpack in California and Oregon, with scattered localities in Washington State and Idaho. These forests are affected by changing climate; with warmer and drier winters that have elevated and lessened the average snowfall. Its habitat is being drastically affected by changing climate with warmer and drier winters that have elevated and lessened the average snowfall. Stoelinga et al. (2010) state that Cascade Range spring snowpack declined 23% during 1930-2007 while Fyfe et al. (2017) cite a 21.8% loss between 1982-1993 and 2000-2010 and models suggest that the rate of snowpack decline will increase substantially by the end of the century (Mote et al. 2005, 2018; Rhoades et al. 2018). As this species is restricted to snowbanks, a population decline of over 30% can be suspected to occur over the range of three generations (30 years) taking into account past and projected loss of suitable habitat. This species is likely dependent on mycophagy (primarily eaten by small mammals) for spore dispersal, and thus, dispersal distance is limited.

Fruiting is solitary or scattered on decaying conifer debris near melting snowbanks in spring and early summer. It has a preference for Fir (Abies spp.) forests in areas with ample winter snowpack. This species is likely dependent on mycophagy (primarily eaten by small mammals) for spore dispersal.

Pholiota nubigena is a common snowbank fungus dependent on thick winter snowpacks to fruit. Snowbank fungi, unique to the western North American mountains, occur in areas with ample snowpack. They fruit in the spring and summer, as the snow melts and recedes. As the climate changes, warmer and drier winters have elevated and lessened the average snowfall. Climate change, continued loss of habitat, declines in the area of undisturbed forests, and hotter, stand replacing fires are detrimental to this species. Snowpack decline in the western North American mountains has been well documented (Mote et al. 2005, 2018; Stoelinga et al. 2010; Zeng et al. 2018). Stoelinga et al. (2010) state that Cascade Range spring snowpack declined 23% during 1930-2007, and models suggest that the rate of snowpack decline will increase substantially by the end of the century (Rhoades et al. 2018).

No use/trade is known.

Management of habitat to reduce fire frequency and intensity is needed.