BILL ANALYSIS                                                                                                                                                                                                    





           ----------------------------------------------------------------- 
          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
           ----------------------------------------------------------------- 

          BILL NO: SB 281                    HEARING DATE: April 28, 2009   

          AUTHOR: Runner                     URGENCY: No  
          VERSION: As Introduced             CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Endangered species: incidental take.  
          
          BACKGROUND AND EXISTING LAW
          1. The California Endangered Species Act (CESA) authorizes the  
          California Department of Fish and Game (DFG) to issue permits  
          under specified conditions that may result in harm to species  
          that are listed as threatened, endangered, or candidate.  In  
          such situations, the project proponent is required to undertake  
          mitigation for the harm caused to the species. 

          Specifically, Section 2081 of the Fish and Game Code provides  
          that the take of these rare species may be approved by the DFG  
          if: 

             1.   The take is incidental to an otherwise lawful activity.
             2.   The impacts of the take shall be minimized and fully  
               mitigated. DFG is required to limit the mitigation  
               obligation to actions that are "roughly proportional" to  
               the impacts on the species. 
             3.   DFG is also required to develop mitigation measures that  
               maintain the applicant's objectives to the greatest extent  
               possible. 
             4.   The mitigation measures must be capable of successful  
               implementation. 
             5.   Permits may not be issued if they would jeopardize the  
               continued existence of a species, which is a biological  
               determination that must be based on the condition of the  
               species, threats to the species, and other reasonably  
               available scientific information. 

          2. Governor Schwarzenegger, in Executive Order S-15-08, directed  
          that 33 percent of the state's electricity come from renewable  
                                                                      1







          energy sources by 2020. He formed a "Renewable Energy Action  
          Team" and directed this entity to develop a Desert Renewable  
          Energy Conservation Plan for the Mohave and Colorado Desert  
          regions. This plan is essentially a large-scale Natural  
          Community Conservation Plan for the affected regions that could  
          be finished by the end of 2010, if all goes well. The Executive  
          Order also directed DFG to establish a new division for  
          permitting renewable energy facilities and directed DFG and the  
          California Energy Commission to establish "one-stop shopping"  
          for permitting renewable energy power facilities. 

          3. The U.S. Bureau of Reclamation issued its West Mojave Plan  
          (WMP) in 2006. It covers 9 million acres of land in the Mojave  
          Desert, and is intended to protect over 100 species. The WMP  
          focuses on using an adaptive management approach to protect the  
          desert tortoise and the Mojave ground squirrel, two of the major  
          species covered by the plan. The plan streamlines the incidental  
          take permitting process under federal and state law for listed  
          species and allows development, resource extraction, and  
          recreation on disturbed lands within the planning area. 

          PROPOSED LAW


          This bill would create a new mitigation provision in CESA for  
          renewable energy projects that are permitted after 1/1/08 but  
          prior to the adoption of the final Desert Renewable Energy  
          Conservation Plan (DRECP) required in the Executive Order. The  
          mitigation standard would require compliance with the federal  
          Bureau of Land Management 2006 Record of Decision, West Mojave  
          Plan, Amendment to the California Desert Conservation Area Plan.  
          This document, according to the author, establishes differing  
          mitigation ratios based on the acreage of the project. For  
          example, depending on the condition of the habitat, mitigation  
          ratios could range from .5 acres/acre of the project up to 3  
          acres of mitigation for each acre occupied by the project. Some  
          of the proposed larger solar arrays would occupy many hundreds  
          of acres and the purchase of the mitigation lands is obviously a  
          key financing component of the proposed new plants. 


          This proposed new section would sunset when the plan required by  
          the Executive Order is final and certified. 

          ARGUMENTS IN SUPPORT
          According to the author, this bill is intended to allow solar  
          energy projects already in the permitting pipeline to continue  
                                                                      2







          while various agencies are developing the DRECP. The author  
          notes that mitigation ratios of 3 acres for each acre of the  
          project have been imposed on occasion. He considers this ratio  
          too high on lands that are disturbed or already planned or zoned  
          for development. 

          The author is also concerned that higher mitigation ratios are  
          expensive. This bill, he notes, provides certainty with a  
          mandated mitigation ratio. 

          As one example, the author points to a solar-natural gas power  
          plant in Victorville. The solar array would occupy 250 acres,  
          and the natural gas part of the plant would occupy 25 acres. The  
          City has purchased 300 acres of land for $7 million for the  
          project. 

          The California Energy Commission permit required 3:1 mitigation,  
          according to the author, which would have required the city to  
          purchase another 1000 acres, and provide funding for the habitat  
          benefits of the listed species, in this case, the desert  
          tortoise, the Mohave ground squirrel, and the burrowing owl.  
          According to the author, a survey discovered 3 desert tortoises  
          and no ground squirrels on the site. The city asked for a 1:1  
          mitigation ratio for mitigation lands, but was denied. 
          
          ARGUMENTS IN OPPOSITION 
          Defenders of Wildlife state that the bill undermines the "fully  
          mitigate" standard of state law, applies a federal conservation  
          standard that has not been analyzed as to its sufficiency under  
          state law, applies across vast reaches of the desert including  
          lands not included in the federal West Mojave Plan that the bill  
          uses as a template for its recommended mitigation ratio, and  
          would undermine an incomplete Desert Renewable Energy  
          Conservation Plan that DFG and the CEC are developing. This  
          group points out that bill could end up shifting mitigation  
          responsibilities for one project to another. Its letter was  
          joined by Audubon California. 


          COMMENTS 
          1. Staff suggests that the Committee should consider whether  
          this bill would undermine the "full mitigation" requirement of  
          CESA in the context of providing renewable energy. Currently, as  
          set forth above, all projects must fully mitigate impacts on  
          species. This determination relies on the best available  
          scientific information that is available to DFG and is a  
          fundamental requirement of state law. Sec. 2081 was carefully  
                                                                      3







          negotiated in 1997 and was enacted with the support of  
          developers and other landowners, and modest support in the  
          environmental community.  It was considered for the first time  
          by the California Supreme Court and the "full mitigation"  
          standard was described by that court in language that recognized  
          completely the trade-offs that were considered in Sec. 2081.   
          Environmental Information Protection Center v. California  
          Department of Forestry. This bill, perhaps unintentionally,  
          would require re-opening Sec. 2081 at least in the context of  
          renewable energy development. 

          2. In the "Preliminary Staff Assessment" for a desert solar  
          facility in the Ivanpah Valley, the applicant proposed a 1:1  
          mitigation ratio. The referenced Energy Commission document  
          noted that such a mitigation ratio may be appropriate on federal  
          lands within the Northern and Eastern Mojave Planning Area that  
          are not designated as Desert Wildlife Management Areas. However,  
          the document noted that such a ratio would not likely meet the  
          mitigation requirements of the California Environmental Quality  
          Act which requires an applicant to avoid or mitigate to a level  
          of insignificance all direct, indirect, and cumulative impacts  
          of biological resources. Most important for the consideration of  
          this bill, however, is the conclusion that the proposed 1:1  
          mitigation ratio "fails to meet the state's full mitigation  
          standard?" 

          3. Various mitigation standards are in place for desert  
          tortoises and Mojave ground squirrels in the West Mojave Plan  
          Habitat Conservation Plan and the California Desert Conservation  
          Area Plan. These ratios depend on the land's conservation values  
          and how the land is classified in the various desert  
          conservation habitat plans. According to the petition to list as  
          the Mohave ground squirrel as an endangered species, mitigation  
          ratios of 3:1 and 5:1 have been required by federal agencies.  
          The lowest required ratio was 2.3:1 for the private sector  
          Hyundai Habitat Conservation Plan, according to materials  
          submitted by the petitioners. 

          4. In addition to the ongoing work by various state and federal  
          agencies to expedite the Governor's Executive Order, Senator  
          Diane Feinstein has announced her intention to develop a new  
          Desert National Monument that would, if adopted, permanently  
          conserve the designated acreage and preclude development. At the  
          same time, an ongoing effort to identify acreages that would be  
          acceptable for renewable energy development is underway. 

          5. Staff had a series of productive conversations with the  
                                                                      4







          sponsors of this bill and the author's staff. Ultimately,  
          however, we were not able to reach agreement on the CESA  
          provisions, especially in light of the unfinished activities of  
          the state regulatory agencies to implement the Executive Order  
          and the implications of Senator Feinstein's proposal for a new  
          federal monument. The author has generously agreed to present  
          his bill to the Committee with the intention of making it a  
          two-year effort in the hope that some resolution can occur in  
          the ensuing months. 

          Staff recommendation: The author's request is completely  
          reasonable. 

          SUPPORT
          None Received
          OPPOSITION
          Audubon California
          Defenders of Wildlife





























                                                                      5