BILL ANALYSIS Ó
AB 1492
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1492 (Budget Committee)
As Amended August 7, 2012
2/3 vote. Urgency
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|ASSEMBLY: | |(March 22, |SENATE: |27-9 |(September 1, |
| | |2012) | | |2012) |
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(vote not relevant)
Original Committee Reference: BUDGET
SUMMARY : This bill makes various changes related to Timber Harvest
Plans (THPs) and revenues to implement the budget actions as part of
the 2012-13 budget package.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Allow a THP approved after July 31, 2012 to be in effect for a
period of not more than five years with extensions authorized for a
two-year period.
2)Establish the Timber Regulation and Forest Restoration Fund in the
State Treasury and imposes a new assessment on lumber as follows:
a) Imposes an assessment on lumber products and engineered wood
products at a rate of 1% of gross receipts from the sale of those
products.
b) Funds are required to be available upon appropriation for
administrative costs, and for purposes relating to the regulatory
activities of the Department of Forestry and Fire Protection, and
other state and local agencies involved in the management of
forest lands.
c) Funds may be made available for management of forest lands,
the cost of managing forest resource programs in the state, and
for certain grants to state and local public agencies for fire
protection, fire suppression and restoration activities.
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d) Retailers may be reimbursed for costs to set up collection
systems. The fee may be itemized on receipts.
3)Require the Secretary of the Natural Resources Agency annually to
submit a report to the Joint Legislative Budget Committee on the
activities of all state departments, agencies and boards relating to
forest and timberland regulation.
4)Allow civil action by a public agency to recover pecuniary and
environmental damages caused in a fire to be reasonable and
quantifiable. The enhancement of damages is restricted as
specified.
5)Declares this bill take effect immediately as an urgency statute.
AS PASSED BY THE ASSEMBLY , this bill expressed the intent of the
Legislature to enact statutory changes relating to the Budget Act of
2012.
FISCAL EFFECT : This bill should not result in any changes to the
Budget Act in related budget actions.
COMMENTS : This bill provides the necessary statutory references to
enact the 2012-13 Budget related to THPs. Specifically, the bill
enacts measures proposed by the timber industry and incorporated by
the Governor in the May Revise to 1) reform wildfire liability
damages, 2) extend the life of THPs, and 3) impose a lumber assessment
for timber harvest review.
With regard to wildfire liability damages, California law allows for
the doubling or tripling of damages for "wrongful injuries to timber,
trees, or underwood upon the land of another." Only recently has the
federal government used this law to enhance damages related to
wildfires. In one case, the federal government claimed $662,480,066
in damages, $331,240,033 of which comprised of "double damages." In
addition, the federal government has sought intangible environmental
damages in a manner analogous to emotional distress damages. Such
damages are determined in the absence of a formula dictating the
proper amount of an award.
This bill seeks to reform wildfire liability by requiring damages to
be reasonable and quantifiable. Specifically, the proposal allows a
public agency plaintiff to claim pecuniary damages (e.g., restoration
and rehabilitation costs) and environmental damages (e.g., lost
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recreational value, damage to wildlife, and lost aesthetic value) that
are quantifiable and not unreasonable. The prefire fair market value
of the property is one factor to consider when determining the
reasonableness of environmental damages. If environmental damages are
sought, the public agency plaintiff will not be permitted to seek
double or triple damages. The proposal does not limit a public
agency's ability to collect its costs arising from a fire (e.g., fire
suppression, rescue, and emergency medical services costs).
With regard to extending the life of THPs, this bill extends the life
of a THP from three years with two one-year extensions (five years
total) to a five-year plan with one two-year extension (seven years
total). A temporary change that allowed for three year plans to have
two, two-year extensions (seven years total) sunsetted on January 1,
2012.
With regard to the lumber assessment for timber harvest review, the
Natural Resources Agency has certified the THP as the "functional
equivalent" of an Environmental Impact Report (EIR) under the
California Environmental Quality Act (CEQA). THPs are required to
undergo interagency review involving agencies such as the Department
of Forestry and Fire Protection (CAL FIRE), the Department of Fish and
Game (DFG), Regional Water Quality Control Boards, and the Department
of Conservation.
Recent General Fund (GF) cuts, including a $1.5 million line-item veto
to DFG's THP budget in 2010, have compromised the interagency review
process required by CEQA. As a result, some environmental groups have
questioned whether a THP can be considered the functional equivalent
of an EIR. If there is a legal challenge and the THP program is
decertified, there will likely be devastating effects on forest
management activities in the state.
This bill creates an assessment imposed on lumber retailers at the
rate of 1% of the gross receipts from the sale of lumber products.
The bill will generate $30 million annually, which will fund
"functional equivalent" timber harvest review, offset $15.5 million in
GF expenditures, offset timber harvest permitting fees to lower the
timber operator's cost of preparing a THP, pay for related
administrative costs, and fund forest restoration projects in the
state. For this budget year, the assessment will take effect
on January 1, 2013, and the revenue will offset $7.8 million in GF
expenditures as well as support an immediate augmentation of $1.5
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million for DFG's timber harvest review program.
Analysis Prepared by : Gabrielle Meindl / BUDGET / (916) 3192099
FN: 0005914