BILL ANALYSIS Ó AB 1005 Page 1 Date of Hearing: January 19, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1005 (Dickinson) - As Amended: January 13, 2012 Policy Committee: Natural ResourcesVote:6-3 Water, Parks and Wildlife 8-2 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the Secretary of Natural Resources to convene a stakeholder group-comprised of representatives of public agencies, private industry and policy advocates, and supported by the Legislative Analyst's Office-to develop and produce a report to the Legislature on recommended changes to the state's timber harvest plan (THP) regulatory program. FISCAL EFFECT Minor one-time costs of less than $50,000 to agency staff and the LAO to participate in and staff the working group and to produce the report. (Special funds and General Fund.) COMMENTS 1)Rationale . The author's office has indicated this bill is intended to serve as a vehicle for yet-to-be-determined legislative changes to the THP program. 2)Background. The Forest Practices Act of 1973 requires logging operations to comply with an approved THP-a document that describes the proposed logging operation and measures the logger will undertake to prevent environmental damage or mitigation measures to compensate for such damage. A THP must be approved by the Department of Forestry and Fire Protection (Calfire) and reviewed by several other state agencies-the Department of Conservation, the State Water Resources Control Board and the Department of Fish and Game (DFG). An approved THP is considered "functionally equivalent" under the California Environmental Quality Act (CEQA), meaning timber harvesting consistent with an approved THP is not subject to AB 1005 Page 2 an environmental impact report under CEQA. The THP program is one of the only state regulatory programs not funded mainly or entirely by fees on the regulated parties. For over a decade, the LAO has recommended the Legislature implement a THP fee on the timber industry to cover regulatory costs, which recently have ranged from approximately $17 million to $22 million annually, almost all of which is paid from the General Fund. Industry generally opposes the LAO's fee proposal, contending the THP program is more costly than necessary and increased fees will reduce in-state logging. Environmentalists generally claim the THP program is insufficiently stringent to warrant functional equivalence under CEQA. In late 2007, the Assembly Committee on Accountability and Administrative Review, of which the author serves as chair, heard testimony related to the THP program, including the LAO fee recommendation. Subsequent to that hearing, the author and the chair of the Assembly Committee on Natural Resources convened an ongoing THP working group similar to the working group described by this bill. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081