BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1005
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          Date of Hearing:  January 9, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                  AB 1005 (Dickinson) - As Amended:  January 4, 2012
           
          SUBJECT  :  Forest practices:  timber harvesting plan

           SUMMARY :  Requires the Secretary of the Natural Resources Agency 
          to convene a timber harvest working group and to provide a 
          report to the Legislature recommending options for streamlining 
          and providing additional revenue for the state's timber harvest 
          regulatory program.

           EXISTING LAW  : 

          1)Pursuant to the Z'Berg-Nejedly Forest Practice Act of 1973 
            (FPA):

             a)   Declares that it is the policy of the state to encourage 
               prudent and responsible forest resource management 
               calculated to serve the public's need for timber and other 
               forest products, while giving consideration to the public's 
               need for watershed protection, fisheries and wildlife, 
               sequestration of carbon dioxide, and recreational 
               opportunities alike in this and future generations.

             b)   Requires the State Board of Forestry and Fire Protection 
               (Board) to adopt rules and regulations (Forest Practice 
               Rules or FPR) to assure the continuous growing and 
               harvesting of commercial forest tree species and to protect 
               the soil, air, fish and wildlife, and water resources, 
               including but not limited to, streams lakes and estuaries.  
               The Board is required to ensure that the FPR, where 
               applicable, consider the capacity of forest resources to 
               sequester carbon dioxide emissions sufficient to meet or 
               exceed the state's greenhouse gas reduction requirements 
               for the forestry sector.

             c)   Requires the Department of Forestry and Fire Protection 
               (CalFire) to oversee the FPA and the FPR in consultation 
               with other public agencies and the interested public.  The 
               FPA and FPR specifically govern, among other things, timber 
               harvest plans (THPs), Nonindustrial Timber Management Plans 
               (NTMPs), Program Timber Harvesting Plans (PTHPs), and other 








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               types of plans related to timber operations on private 
               lands in California.

             d)   Requires the Director of CalFire to establish 
               interdisciplinary review teams to review timber operation 
               plans to assist in the evaluation of the plans and their 
               impacts on the environment.  In general, each review team, 
               when possible, shall consist of a representative from (a) 
               the appropriate California Regional Water Quality Control 
               Board, (b) the Department of Fish and Game, (c) the 
               Department of Conservation, Division of Mines and Geology, 
               (d) a representative of county government when the county 
               government so requests, (e) the California Coastal 
               Commission (for plans in the coastal zone), (f) the 
               California Tahoe Regional Planning Agency (for plans in the 
               Tahoe Basin), (g) the Department of Parks and Recreation 
               (for plans that may affect values in publicly owned parks), 
               and (h) CalFire.

             e)   Preserves the power of any state agency (such as a 
               Regional Water Quality Control Board or Department of Fish 
               and Game) in the enforcement or administration of any 
               provision of law (such as the Porter-Cologne Water Quality 
               Control Act or Fish and Game Code Section 1600 et seq.) 
               that is specifically authorized or required to be enforce 
               or administer.

          2)Pursuant to the California Environmental Quality Act (CEQA), a 
            THP or other plan required under the FPA or FPR may be 
            submitted in lieu of an environmental impact report if the 
            Secretary of the Natural Resources Agency finds that the plan 
            is in compliance with standards in CEQA.  The Secretary of the 
            Natural Resources Agency has made such findings.

           THIS BILL:  

          1)Requires the Secretary of the Natural Resources Agency to 
            convene a timber harvest working group to consider and refine 
            options for streamlining and providing additional revenue for 
            the state's timber harvest regulatory program.

          2)Requires that the timber harvest working group consist of the 
            following persons:

             a)   Five representatives from environmental organizations, 








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               with one appointed by the Governor, two appointed by the 
               Speaker of the Assembly, and two appointed by the Senate 
               Committee on Rules.

             b)   Five representatives from the timber industry, with one 
               appointed by the Governor, two appointed by the Speaker of 
               the Assembly, and two appointed by the Senate Committee on 
               Rules.

             c)   The chairperson and vice chairperson, or their 
               designated representatives, of the Assembly Committee on 
               Natural Resources, the Assembly Committee on Accountability 
               and Administrative Review, the Assembly Committee on 
               Budget, the Senate Committee on Natural Resources and 
               Water, and the Senate Committee on Budget and Fiscal 
               Review.

          3)Authorizes the Secretary of the Natural Resources Agency to 
            designate one or more individuals representing CalFire, the 
            Department of Fish and Game, the California Coastal 
            Commission, the California Geological Survey, and the State 
            Water Resources Control Board to serve on the working group.

          4)Requires the Legislative Analyst to provide technical 
            assistance to the working group.

          5)Requires the working group to submit a report containing its 
            recommendations to the Legislature on or before June 1, 2013.  


           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

           1)Background.   According to a 2008 report prepared by the 
            Legislative Analyst, that fiscal year's funding for timber 
            harvest review and enforcement across all state agencies was 
            $24 million, with about $23 million supported by the General 
            Fund.  Since 2008, there have been funding reductions to the 
            timber harvest program, such as Governor Schwarzenegger's 2010 
            line-item veto in the state budget bill that cut $1.5 million 
            from the Department of Fish and Game's timber harvest review 
            program.  The current General Fund costs for this fiscal year 
            are approximately $18 million.  









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             Since at least 1999, the Legislative Analyst has been 
            recommending legislation to establish a new, single timber 
            harvest review fee paid by timber operators to fully fund 
            timber harvest review and enforcement across all agencies.  
            This recommendation is based on the "beneficiary pays" funding 
            principle that is utilized by many other state programs.  

            Several parties, including timber companies, professional 
            foresters, loggers, and forest land owners have voiced concern 
            over the Legislative Analyst's recommendation.  They argue 
            that higher fees will further reduce timber operations in the 
            state and significantly hurt an industry that has already been 
            hit hard by the recession.  As such, they warn that this will 
            cause additional job loss, further incentivize forest land 
            conversion, and create a heavier reliance on out-of-state 
            timber, which is likely harvested in a manner less 
            environmentally protective as California timber and will 
            produce greater import-related air emissions.  

            The timber industry has also argued that it should not have to 
            pay the entire cost of a program that it believes is 
            inefficient, duplicative, and more costly than necessary.  
            While there may be inefficiency, one could argue that the 
            agencies are actually underfunded given their duties and 
            responsibilities, especially as they relate to reviewing the 
            cumulative watershed effects of timber harvest activities and 
            to protecting species listed under the federal and state 
            Endanger Species Acts.  This is especially true for the 
            Department of Fish and Game, which, as referenced above, 
            recently lost $1.5 million in General Fund support.  This cut 
            resulted in lost funding for the majority of the Department of 
            Fish and Game's timber harvest review positions (16 out of 
            25).

            In discussions with members of the environmental community, 
            there is a general belief among them that the state's timber 
            harvest regulatory program has deficiencies that put into 
            question whether a THP should be considered the functional 
            equivalent of an environmental impact report under CEQA.  This 
            is articulated in part by the Center for Biological 
            Diversity's September 20, 2011 letter to the Secretary of the 
            Natural Resources Agency, John Laird, which demands Secretary 
            Laird to find that the state's timber harvest program no 
            longer qualifies for certification under CEQA because of the 
            Department of Fish and Game's budget cut.  








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            The budget issues involving the state's timber harvest program 
            will likely intensify in the near future as (1) the 
            Legislature is faced with making further General Fund cuts, 
            (2) the industry deals with a recession and the threat of 
            increased fees, (3) the agencies, with their budget 
            constraints, face challenges to implementing their legal 
            duties and responsibilities, and (4) the environmental 
            community tries to protect, improve, and, in some cases, 
            restore the various types of timber harvest environmental 
            reviews.

           2)Timber Harvest Working Group.  The Assembly Accountability and 
            Administrative Review Committees, chaired by Assemblyman Roger 
            Dickinson, held a hearing on September 27, 2011 to review the 
            fees and costs associated with the state's timber harvest 
            review program.  At the hearing, the chairman of the Assembly 
            Natural Resources Committee, Assemblyman Wesley Chesbro, 
            expressed his interest in convening a timber harvest working 
            group with the various stakeholders to explore a balanced 
            solution to the budget problems associated with the state's 
            timber harvest regulatory program.  Assemblyman Chesbro and 
            Assemblyman Dickinson are co-chairing this working group, 
            which had its first meeting on December 5, 2011 and will 
            continue to meet regularly throughout the year.  

            This bill will create a similar working group in 2013 that 
            will be led by the Secretary of the Natural Resources Agency.

           3)Doubled-referred.   This bill has also been referred to the 
            Assembly Water, Parks and Wildlife Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          California Native Plant Society
           

          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092 








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