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 consider  and 
          refine options for streamlining and providing additional revenue 








                                                                  AB 1005
                                                                  Page  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