BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1300
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1300 (Fletcher) - As Amended:  May 6, 2009 

          Policy Committee:                              Natural  
          ResourcesVote:8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill expressly authorizes the Department of Forestry and  
          Fire Protection (CalFire) to develop and implement a grant  
          program for fuel reduction in the wildland-urban interface (WUI)  
          or very high fire hazard severity zones.  Specifically, this  
          bill:

          1)Authorizes CalFire to develop and implement a grant program to  
            local government and nonprofits for fuels reduction in the WUI  
            or very high fire hazard severity zones.

          2)Specifies that CalFire may award grants to offset the costs of  
            transporting fuels to a biomass energy facility.

          3)Limits the size of trees that may be removed pursuant to a  
            grant award and prohibits processing harvested logs into  
            lumber.

          4)Disallows funding from the General Fund for these grants.

          5)Limits departmental administrative costs to 5%.

           FISCAL EFFECT  

          1)Cost pressures to CalFire, potentially in the millions of  
            dollars annually, to make grants for fuels reduction and to  
            administer their award.  (Special funds or bond funds)

           COMMENTS 

           1)Rationale.   The author is concerned that fuel loads in the WUI  








                                                                  AB 1300
                                                                  Page  2

            continue to present a serious fire danger, despite recent  
            efforts to reduce that danger.  The author argues that more  
            can be done to reduce the threat and protect the environment  
            by encouraging the removal of brush and other fuels.  The  
            author contends that, despite the threat, there is no  
            statewide effort or program dedicated to encouraging fuels  
            reduction.  The author intends this bill to create such an  
            effort by explicitly authorizing CalFire's authority to  
            establish a grant program to encourage fuels reduction.

           2)Background.   

              a)   Addressing Fire Danger at the WUI.   In response to  
               recent fires that highlighted the fire danger present in  
               the WUI (areas where development abuts or intermingles with  
               forests and other wildlands), the state has, among other  
               things, adopted building codes to lower the risk of fire  
               ignition, increased enforcement of defensible space  
               requirements, and funded fuel reduction efforts in at-risk  
               communities.  Since 2003, the state has awarded over $16  
               million in grants to Fire Safe Councils, local governments,  
               fire districts for various fuels reduction and forest  
               health projects.  The federal government has provided  
               nearly $9 million in federal funds and lowered local  
               government match requirements to reduce hazardous fuels in  
               California.  These efforts have resulted in the treatment  
               of thousands of acres annually on state and federal lands  
               in the WUI.

              b)   Fuel is Fuel.  While biomass in the WUI-trees, branches,  
               shrubs, and other organic matter-is potential fuel for  
               fire, it is also a potential source of usable energy.  The  
               California Energy Commission (CEC) estimates there to be  
               about 14 million bone-dry tons of biomass available each  
               year in California's forests on a sustainable basis.  There  
               are 33 biomass plants across the state.  These plants,  
               which are fueled by forest, mill, agriculture, and urban  
               residues, report operating at below capacity.  
          
             c)   Federal Stimulus Includes Money for Fire Fuel Reduction.   
                The American Recovery and Reinvestment Act (ARRA) of 2009  
               provides $500 million to the U.S. Forest Service (USFS) for  
               "Wildland Fire Management" activities, $250 million of  
               which must be spent for hazardous fuels reduction, forest  
               health protection, rehabilitation and hazard mitigation  








                                                                  AB 1300
                                                                  Page  3

               activities on federal lands.  The remaining $250 million is  
               allocated for similar activities, including ecosystem  
               improvement, on state and private lands.  Of that $500  
               million, $50 million is available for "wood-to-energy"  
               grants to promote increased use of biomass from federal,  
               state, and private lands.

               CalFire has submitted to the USFS a list of potentially  
               eligible projects totaling $176 million.  On this list is a  
               "Biomass Woods-to-Power-Plant Transportation Incentive"  
               valued at $6 million.

           3)Supporters  , including representatives of the forestry industry  
            and rural counties, contend this bill will reduce the threat  
            of fire in the WUI through encouraging fuels reduction.  
           
             There are no registered opponents to this bill. 

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081