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