BILL ANALYSIS AB 1321 Page 1 Date of Hearing: May 28, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 1321 (Eng) - As Amended: May 6, 2009 Policy Committee: Natural ResourcesVote:6-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill authorizes the Natural Resources Agency (NRA) to develop a program to mitigate the effect of infrastructure projects regionally or statewide and in advance of those projects. Specifically, this bill: 1)Defines "infrastructure planning agency" to mean the Department of Transportation (Caltrans), the Department of Water Resources (DWR), a metropolitan planning organization, a regional transportation planning agency, or other public agency that implements infrastructure projects. 2)Authorizes NRA to (a) implement regional advance mitigation plans (RAMPs) for planned infrastructure projects that identify and implement mitigation measures before the relevant projects are approved, (b) acquire, restore, manage, monitor, and preserve lands, or fund those activities in accordance with a RAMP, and (c), establish or fund the creation of mitigation banks. 3)Use, or allow infrastructure planning agencies to use, mitigation credits to fulfill the mitigation requirements of planned infrastructure projects. 4)Creates an Advance Infrastructure Mitigation Fund (AIMF) for receipt of reimbursement payments provided by infrastructure planning agencies pursuant to this bill. FISCAL EFFECT 1)One-time costs, ranging from $500,000 to $875,000 in 2009-10 AB 1321 Page 2 and 2010-11, to Department of Fish and Game (DFG), on behalf of NRA, to implement the bill. Those costs include five new Staff Environmental Scientists-four based regionally and one in headquarters to determine the scope of workload and identify areas of the state where RAMPs may occur. (Advance Infrastructure Mitigation Fund (AIMF), created by this bill.) 2)Ongoing annual costs of as much as $875,000 to DFG, to the extent RAMPs are developed and implemented. (AIMF) 3)Minor, absorbable costs to NRA. AB 1321 Page 3 COMMENTS 1)Rationale . The author contends federal and state agencies, working together before infrastructure projects reach approval, can better identify regional mitigation opportunities that will satisfy anticipated mitigation requirements. The result, the author argues, will be avoided project delay and increased cost effectiveness resulting from early action and economies of scale. 2)Background . a) Regional Advanced Mitigation . According to proponents of regional advanced mitigation, RAMPs allow planning agencies to estimate and combine impacts from multiple projects in a similar region or watershed prior to implementation, aggregate those impacts, and then mitigate by restoring or acquiring larger or more cohesive habitat. i) Ramping Up for RAMPs in California. Since 2008, a working group of state and federal agencies, including Caltrans, DWR, DFG, Parks and Recreation, U.S. EPA, Army Corps of Engineers, U.S. Fish and Wildlife Service, and the Nature Conservancy have been exploring the potential for implementing regional advance mitigation in California. A pilot program in the Central Valley will begin this fall to assess whether certain DWR and Caltrans projects share similar impacts that can be mitigated in advance on a regional basis. ii) Other State Have Ramped Up Too . North Carolina, Georgia and Florida have implemented variations on the RAMP concept. According to the North Carolina Department of Transportation, 90% of its wetlands mitigation needs have been fulfilled through its RAMP and no projects have been delayed due to mitigation issues since the start of the program. b) Mitigation You Can Bank On . Mitigation or conservation banking allows a project developer to purchase mitigation credit instead of the developer undertaking the mitigation him. The value of the mitigation credit is priced according to the amount needed to undertake habitat restoration or acquire acreage in an existing conservation AB 1321 Page 4 project. Because mitigation banking transfers liability for mitigation from the developer to the banker, it is oftentimes preferred by developers. At the same time, regulators frequently prefer mitigation banking because it provides regulatory certainty in that money for mitigation is secured and the mitigation projects are proven. California state agencies already use mitigation banking. According to the policy committee analysis of this bill, the California Department of Forestry and Fire Protection (CalFire) has approved roughly 35 public and private mitigation and conservation banks in the state. Credits can be purchased for impacts to wetlands, vernal pools, burrowing owls, Giant Garter Snakes, Swainson's Hawk, Red-legged Frogs, and San Joaquin Kit Fox. Caltrans also is a bank developer, having approved a 67-acre wetland bank in Sacramento County, and a purchaser of credits from private banks. c) Supporters , including the Nature Conservancy (sponsor) and several other environmental organizations, cite the purported advantages of RAMPs mentioned above-allowing planning agencies to estimate and combine impacts from multiple projects in a similar region or watershed prior to implementation, aggregate those impacts, and then mitigate by restoring or acquiring larger or more cohesive habitat. There is no registered opposition to this bill. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081