BILL ANALYSIS Ó AB 1005 Page 1 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 AB 1005 Page 2 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, AB 1005 Page 3 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. AB 1005 Page 4 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. AB 1005 Page 5 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 AB 1005 Page 6