BILL ANALYSIS                                                                                                                                                                                                    



                                                               AB 1504
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 1504
           AUTHOR:     Skinner
           AMENDED:    June 23, 2010
           FISCAL:     Yes               HEARING DATE:     June 28, 2010
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CARBON SEQUESTRATION

            SUMMARY  :    
           
            Existing law  :

           1) Under the Z'Berg-Nejedly Forest Practice Act of 1973,  
              establishes procedures for submitting a timber harvest plan  
              (THP) to the Department of Forestry and Fire Protection  
              (CDF) when conducting timber operations.  An application  
              for conversion must be filed with the State Board of  
              Forestry and Fire Protection (BFFP) if timberlands are to  
              be converted.  The BFFP is authorized to adopt regulations  
              to assure the continuous growing and harvesting of  
              commercial forest species and to protect certain resources.  
               (Public Resources Code 4511 et seq.).

           2) Under the California Global Warming Solutions Act of 2006  
              (CGWSA), requires the California Air Resources Board (ARB)  
              to determine the 1990 statewide greenhouse gas (GHG)  
              emissions level and approve a statewide GHG emissions limit  
              that is equivalent to that level, to be achieved by 2020.   
              ARB must adopt regulations for reporting and verification  
              of GHG emissions, monitoring and compliance with the  
              program, and achieving GHG emission reductions from sources  
              or categories of sources by January 1, 2011 to be operative  
              on January 1, 2012, subject to certain requirements.   
              (Health and Safety Code 38500 et seq.).

           3) Under the California Forest Legacy Program Act of 2007,  
              authorizes CDF to acquire conservation easements by  
              entering into a contract with the Wildlife Conservation  
              Board to administer the purchase of conservation easements  









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              based on certain eligibility criteria (e.g., be subject to  
              potential conversion, owned by willing and interested  
              sellers or conservation donors, 10% forestry canopy).   
              (Public Resources Code 12200 et seq.).

           4) Under the California Environmental Quality Act (CEQA):

              a)    Requires lead agencies with the principal  
                 responsibility for carrying out or approving a proposed  
                 project to prepare a negative declaration, mitigated  
                 declaration, or environmental impact report (EIR) for  
                 this action, unless the project is exempt from CEQA  
                 (CEQA includes various statutory exemptions, as well as  
                 categorical exemptions in the CEQA guidelines).  (Public  
                 Resources Code 21000 et seq.).  A state agency  
                 regulatory program required plan or other written  
                 documentation containing environmental information may  
                 be submitted in lieu of an EIR if the Secretary of the  
                 Resources Agency has certified the regulatory program  
                 pursuant to certain requirements.  (21080.5).

              b)    Requires the Office of Planning and Research (OPR),  
                 on or before July 1, 2009 to prepare, develop, and  
                 transmit to the Resources Agency amendments to the CEQA  
                 guidelines to assist public agencies in the mitigation  
                 of GHG's or the effects of GHG's as required under CEQA,  
                 including the effects associated with transportation and  
                 energy consumption, and requires the Resources Agency to  
                 certify and adopt those guidelines by January 1, 2010.

            This bill  , under the Z'Berg-Nejedly Forest Practice Act of  
           1973:

           1) Requires BFFP to ensure that its rules and regulations for  
              harvesting of commercial tree species, where applicable,  
              consider the capacity of forest resources to sequester  
              carbon dioxide emissions sufficient to meet or exceed the  
              state's GHG reduction goals consistent with the ARB adopted  
              CGWSA scoping plan.

           2) Requires a timber harvest plan to include an estimate of  
              carbon dioxide emissions from timber operations, including  










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              emissions from aboveground and belowground carbon pools,  
              such as biomass and soil.

           3) Revises legislative intent to encourage sequestration of  
              carbon dioxide and consider values relating to  
              sequestration of carbon dioxide with the goal of maximum  
              sustained production of high-quality timber products, while  
              adding legislative intent regarding climate change carbon  
              dioxide sequestration.

           4) Makes clarifying and technical amendments.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "The Forest  
              Practices Act became law at a time when the threat of  
              climate change was essentially non-existant.  AB 1504  
              modernizes the Act by acknowledging the critical and  
              cost-effective role forests play in sequestering GHGs and  
              combating climate change, and the threat that climate  
              change can pose to this role."

           The author notes that "According to ARB's AB 32 Scoping Plan,  
              California's forests currently sequester approximately 5  
              million metric tons of carbon dioxide annually.  This means  
              that the atmospheric uptake and sequestration of carbon  
              from forest growth is greater than emissions from fires,  
              harvesting, land conversion, and decomposition.  There were  
              significant limitations (e.g., temporal, spatial, and  
              methodological), however, to the study that formed the  
              basis for the above sequestration rate so ARB is planning  
              on updating its assessment next year.  Nonetheless, the  
              Scoping Plan tasks CDF and BOF with evaluating how its  
              current regulations and programs will continue to achieve  
              the 5 MMT target by 2020."

           Finally, according to the author, "AB 1504 gives the Board of  
              Forestry and CDF the tools it needs to ensure that this  
              sequestration rate is maintained or exceeded through its  
              forest practices rules.  Pursuant to its responsibilities  
              under the California Environmental Quality Act, CDF is  
              requiring certain large landowners to analyze the GHG  










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              impacts of their preferred timber harvest management  
              regimes across their entire ownership.  AB 1504 essentially  
              codifies this requirement by directing THP filers to submit  
              an estimate of carbon emissions from timber operations."

            2) Scoping plan forest recommendations  .  According to the  
              climate change scoping plan prepared by the ARB pursuant to  
              CGWSA requirements, "The 2020 Proposed Scoping Plan target  
              for California's forest sector is to maintain the current 5  
              MMTCO2E of sequestration through sustainable management  
              practices, including reducing the risk of catastrophic  
              wildfire, and the avoidance or mitigation of land-use  
              changes that reduce carbon storage.  [CDF] has the existing  
              authority to provide for sustainable management practices,  
              and will, at a minimum, work to maintain current carbon  
              sequestration levels.  The Resources Agency and its  
              departments will also have an important role to play in  
              implementing this measure."

           According to the scoping plan, "Monitoring carbon sequestered  
              on forest lands will be necessary to implement the target.   
              The Board of Forestry and Fire Protection, working with the  
              Resources Agency, the Department of Forestry and Fire  
              Protection and ARB would be tasked with developing a  
              monitoring program, improving greenhouse gas inventories,  
              and determining what actions are needed to meet the 2020  
              target for the Forest sector.  Future climate impacts will  
              exacerbate existing wildfire and insect disturbances in the  
              Forest sector.  These disturbances will create new  
              uncertainties in reducing emissions and maintaining  
              sequestration levels over the long-term, requiring more  
              creative strategies for adapting to these changes.  In the  
              short term, focusing on sustainable management practices  
              and land-use issues is a practical approach for moving  
              forward."

           The scoping plan also notes that "Future land use decisions  
              will play a role in reaching our greenhouse gas emissions  
              reduction goals for all sectors.  Loss of forest land to  
              development increases greenhouse gas emissions levels  
              because less carbon is sequestered.  Avoiding or mitigating  
              such conversions will support efforts to meet the 2020  










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              goal.  When significant changes occur, the California  
              Environmental Quality Act is a mechanism providing for  
              assessment and mitigation of greenhouse gas emissions."

           CEQA provides for the Secretary of Resources to certify a  
              state agency regulatory program required plan or other  
              written documentation containing environmental information  
              to be submitted in lieu of CEQA environmental documents if  
              the Secretary has certified the regulatory program pursuant  
              to certain requirements.  Regulation of timber harvesting  
              operations by CDF pursuant to the Z'Berg-Nejedly Forest  
              Practice Act of 1973 has been certified by the Secretary as  
              meeting these requirements.  By amending the Z'Berg-Nejedly  
              Forest Practice Act of 1973, AB 1504 may also provide an  
              opportunity for this CEQA functional equivalent program to  
              address the CGWSA scoping plan forest sector  
              recommendations.

            3) Opposition and support concerns  .  According to the  
              California Licensed Foresters Association (CLFA) in  
              opposing AB 1504, this bill "will add to regulatory burdens  
              on an economic sector already depressed by the current  
              economy and the chronically higher cost of growing and  
              harvesting trees in our state."  CLFA asserts that "Trees  
              take in atmospheric carbon and convert it to woody biomass.  
               Both standing trees and harvested wood products store  
              carbon.  We need more, rather than less, forest management  
              in California."

           According to supporters, "some - including the U.S. Forest  
              Service - fear that current California forest practices  
              have a dangerous possibility of leaving the state forests  
              as a net emitter of carbon.  AB 1504 helps ensure that we  
              have some way of measuring whether California forests are -  
              as we all hope - net sequesters of carbon, giving us time  
              to fix the problem before it overwhelms us if it is not." 

            4) Clarification needed .  Clarification is needed on page 5,  
              line 4, by striking "goals" and inserting "requirements."

            SOURCE  :        Assemblymember Skinner  











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           SUPPORT  :       EPIC, Forests Forever, Sierra Club California 

           OPPOSITION  :    California Licensed Foresters Association