BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1300
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 1300 (Fletcher)
          As Amended  May 6, 2009
          Majority vote 

           NATURAL RESOURCES   8-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Skinner, Gilmore,         |Ayes:|De Leon, Nielsen,         |
          |     |Chesbro,                  |     |Ammiano,                  |
          |     |De Leon, Hill, Huffman,   |     |Charles Calderon, Davis,  |
          |     |Knight, Logue             |     |Duvall, Fuentes, Hall,    |
          |     |                          |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner,                  |
          |     |                          |     |Solorio, Audra            |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Krekorian                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the California Department of Forestry (CAL  
          FIRE) to develop and implement a fuels reduction grant program.   
          Specifically,  this bill  :

          1)Authorizes CAL FIRE to develop and implement a fuels reduction  
            program that provides competitive grants or other financial  
            incentives to communities located in the wildland-urban  
            interface or very high fire hazard severity zones to conduct  
            fuel reduction efforts that minimize the risk or decrease the  
            intensity of a wildfire in or around a community.  CAL FIRE  
            may structure a grant or offer additional incentives to offset  
            the costs of transporting fuels to a biomass energy facility.

          2)Authorizes CAL FIRE to make grants to cities, counties,  
            districts, and nonprofit organizations.  The department must  
            develop criteria for the review and approval of grant  
            applications.  CAL FIRE may waive or reduce the cost sharing  
            requirements for projects that directly benefit or occur in a  
            disadvantaged community or if the funding source prohibits a  
            cost sharing requirement.

          3)Requires an eligible community to meet all of the following  
            criteria and any other criteria the department deems  








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            appropriate:

             a)   Be a wildland-urban interface community at high risk of  
               wildfire;

             b)   Be designated as a "firewise" community or have a  
               community wildfire protection plan approved by CAL FIRE; 

             c)   Have a plan approved by CAL FIRE or the State Fire  
               Marshal to reach full compliance with existing defensible  
               space requirements; and,

             d)   Partner with a community-based nonprofit organization  
               that has among its primary objectives wildfire prevention,  
               planning, or education.

          4)Requires CAL FIRE to seek funding for the grant program from  
            new state, federal, or private funds dedicated to fire  
            prevention efforts, to the extent the funds are available for  
            those efforts.  The program must not be funded through the  
            General Fund. 

          5)Requires CAL FIRE, if it develops and implements a fuels  
            reduction grant program, to report to the Legislature no later  
            than 12 months after the program's initiation, and every 12  
            months thereafter, including a summary of the amount of grants  
            awarded, grant recipients, funding sources, program  
            accomplishments and effectiveness, and any legislative or  
            other recommendations.

          EXISTING LAW  :

          1)Creates the California Forest Improvement Program (Chapter  
            1181, Statutes of 1978), which authorizes CAL FIRE to provide  
            technical and financial assistance to small forest landowners  
            for a wide range of forest management activities, including  
            preparation of management plans, reforestation, timber stand  
            improvement, forest land conservation and fish and wildlife  
            habitat improvement.   Landowners are required to provide at  
            least a 10% cost share for grants.

          2)Proposition 40 (2002) makes eligible for grants nonprofit  
            organizations and public agencies that implement projects that  
            protect or enhance watershed values through the manipulation  








                                                                  AB 1300
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            of vegetation to reduce fuel loading and fire risk on  
            nonfederal lands in 15 Sierra Nevada counties.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, cost pressures to CAL FIRE, potentially in the  
          millions of dollars annually, to make grants for fuels reduction  
          and to administer their award.

           COMMENTS  :  According to the author's office: despite existing  
          laws, programs and grants to reduce fuel loads in the  
          wildland-urban interface (WUI) "?more can be done to reduce the  
          threat and protect the environment by incentivizing the removal  
          of brush and so-called ladder fuels in the WUI.  Existing  
          programs funded by the Sierra Nevada Conservancy, for example,  
          provide a financial incentive to remove this type of foliage;  
          however, there isn't a concerted effort or program dedicated to  
          this purpose.  This program will enhance the commercial value  
          for small timber, shrubbery or chaparral by subsidizing the  
          transportation of the brush to biomass facilities."

          The recent catastrophic fires in the state have highlighted the  
          significant increase in residential development in the WUI and  
          the association between climate change and more intense or  
          frequent fires.  In response, 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.

          Despite these efforts, there is concern that fuels loads in the  
          WUI remain at unsafe levels and that existing programs or  
          regulatory exemptions do not provide sufficient economic  
          incentive to encourage more fuel reduction work.  This bill  
          gives CAL FIRE express authorization to make grants to  
          communities located in the wildland-urban interface or very high  
          fire hazard severity zones to conduct fuel reduction efforts  
          that minimize the risk or decrease the intensity of a wildfire  








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          in or around a community.  CAL FIRE may structure a grant or  
          offer additional incentives to offset the costs of transporting  
          fuels to a biomass energy facility.

          While the bill does not specify a funding source for these  
          grants, one possible source is the American Recovery and  
          Reinvestment Act (ARRA) of 2009, which 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 activities on federal lands.  The remaining  
          $250 million is allocated for similar activities, including  
          ecosystem improvement, on state and private lands.  Of the total  
          amount, $50 million is available for "wood-to-energy" grants to  
          promote increased use of biomass from federal, state, and  
          private lands.

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

           
          Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092 


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