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