BILL ANALYSIS Ó AB 1005 Page 1 Date of Hearing: January 10, 2012 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Jared Huffman, Chair AB 1005 (Dickinson) - As Amended: January 4, 2012 SUBJECT : Timber Harvest Plans SUMMARY : Directs the Secretary of the Natural Resources Agency to convene a timber harvest working group to consider options for streamlining and providing additional revenue for the state's timber harvest regulatory program. Specifically, this bill : 1)Requires the working group to be composed of the following: a) One timber industry representative and one environmental representative appointed by the Governor; b) Two timber industry representatives and two environmental representatives appointed by the Speaker of the Assembly, and two of each appointed by the Senate Committee on Rules; c) The chairperson and vice chairperson or their designees from the Assembly Committee on Natural Resources, the Assembly Committee on Accountability and Administrative Review, and the Senate Committee on Natural Resources and Water. 2)Authorizes the Secretary of the Natural Resources Agency to designate one or more individuals representing the Department of Forestry and Fire Protection, the Department of Fish and Game (DFG), the California Coastal Commission, the California Geological Survey, and the State Water Resources Control Board to also serve on the working group. 3)Requires the Legislative Analyst to provide technical assistance to the working group. 4)Requires the working group to report its recommendations to the Legislature by June 1, 2013. EXISTING LAW: 1)Prohibits the conducting of timber operations unless a timber harvest plan (THP) prepared by a registered professional forester is submitted to the Department of Forestry and Fire AB 1005 Page 2 Protection (CalFire). 2)Gives the Director of CalFire final authority over whether a THP conforms with rules and regulations pertaining to timber harvesting. Requires CalFire and the Board of Forestry to consult with and consider recommendations from DFG relating to protection of fish and wildlife, the State Water Resources Control Board and regional boards relating to water quality, the Air Resources Board and local districts relating to air quality, and the Coastal Commission relating to protection of natural and scenic coastal zone resources. 3)Authorizes the Secretary of the Natural Resources Agency to certify certain regulatory programs as "functional equivalents" to the California Environmental Quality Act (CEQA), thereby exempting projects under such programs from the CEQA requirement for preparation of an environmental impact report or negative declaration. The Forest Practices Act has been certified by the Resources Agency as a CEQA functional equivalent program. The THP review process calls for involvement of a multi-agency team that includes CalFire, DFG, the Regional Water Quality Control Board, the California Geological Survey, and other agencies. FISCAL EFFECT : Unknown COMMENTS : California's timber harvest regulatory program is currently funded primarily by the General Fund. The program remains one of the few regulatory programs in the state that is not funded by regulatory fees under the "beneficiary pays" concept. Consequently, the Legislative Analyst's Office for years has recommended that THP fees be assessed to fund the program. The timber industry, on the other hand, has argued that the program lacks efficiency and needs to be streamlined, and that the imposition of fees would increase costs for the industry and consumers. The Timber Harvest Review program in California has also been the subject of extensive litigation, including a number of cases regarding cumulative impacts. The Assembly Accountability and Administrative Review Committee in November of this year held an oversight hearing on the state's timber harvest review program. The hearing examined concerns regarding the underfunding of California's timber harvest review program, and concerns of industry representatives regarding the cost of the program and the need for efficiencies. After that hearing the committee chair, the chair of the Assembly Natural AB 1005 Page 3 Resources Committee, and other interested parties agreed to form a working group to discuss ways to streamline the timber harvest review process, without compromising or reducing environmental protections, and to identify a more stable and appropriate funding source for the overall program. An ad-hoc working group was formed and met a couple of times in November and December of 2011. This bill is intended to serve as a vehicle for that working group process and whatever recommendations they may come up with. The THP regulatory review process has been certified by the Secretary of the Natural Resources Agency as a "functional equivalent" program under CEQA. The certification was based at least in part on the fact that the THP review process involves a multi-agency team approach that includes DFG, the Water Boards, the Geological Survey and others. Since 2010, however, the involvement of DFG, which is the public trustee agency for fish and wildlife resources under CEQA, in the THP program has largely been defunded. In 2010 then Governor Schwarzenegger struck $1.5 million from DFG's budget for THP review, effectively reducing DFG's THP biologists from 17 to 2. In 2011 the Legislature sought to restore DFG's funding for THP review by appropriating $1.5 million from the surplus in the Hatcheries and Inland Fisheries Fund for that purpose. However, those funds were again vetoed by Governor Brown. Issues: This bill as amended provides that members of the working group would be officially appointed by the Governor, and by the Assembly Speaker and Senate Rules Committee. A report with recommendations would not be due to the Legislature until June of 2013. However, in actuality an ad hoc working group has already started meeting. In addition, it would be most constructive for the Legislature and the Administration if recommendations of the working group could be received prior to the June 2013 date contained in this bill. What the work product and timing of the working group discussions will be, however, remains unclear at this time. Proposed Amendment: Should the committee agree to approve this bill, the author is proposing an amendment which would change the first sentence of the bill to read as follows: SECTION 1. (a) The Secretary of the Natural Resources Agency shall convene a timber harvest working group to considerand refine options for streamlining and providing additional revenue AB 1005Page 4 for the state's timber harvest regulatory program how to improve the health of California's forests, continuing California's commitment to the environment, and supporting the state's climate and energy goals . The amendments would also add Assembly Member Chesbro as a co-author. Policy Committee Double-referral: This bill is double-referred to the Assembly Natural Resources Committee and the Assembly Water, Parks & Wildlife Committee. The Assembly Natural Resources Committee is scheduled to hear this bill on January 9, 2012. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096