BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 455                    HEARING DATE: January 10, 
          2012  
          AUTHOR: Pavley                     URGENCY:  No  
          VERSION: January 4, 2012           CONSULTANT: William Craven  
          DUAL REFERRAL:  No                 FISCAL:  Yes  
          SUBJECT: Forestry: watersheds: timber harvesting plans.  
          
          BACKGROUND AND EXISTING LAW
          1. The Z'berg-Nejedly Forest Practice Act (Act) of 1973 
          (commencing with Section 4511 of the Public Resources Code) 
          prohibits any commercial harvesting of timber unless a timber 
          harvest plan  (THP) has been prepared by a registered 
          professional forester and approved by the California Department 
          of Forestry and Fire Protection (CDF).  Generally, a THP must 
          contain a description of the location of the planned harvest, 
          the harvest method,  measures to avoid excessive erosion, 
          timeframe of operations, and other information required by 
          forest practice rules (FPR)  adopted by the Board of Forestry 
          (Board). Most THPs from industrial landowners involve a few 
          hundred acres although the acreage can vary. The Forest 
          Practices Act contains various exemptions and provides other 
          requirements for lawful timber harvest operations. 

          The effective period of a THP is three years but may be extended 
          for two, one year extensions under certain conditions.  

          The California Environmental Quality Act (CEQA) covers timber 
          harvesting activities because discretionary permits from public 
          agencies are required and the activities have potential 
          environmental impacts that must be mitigated. However, instead 
          of an environmental impact report, the timber harvest 
          environmental review process is considered "functionally 
          equivalent" to CEQA pursuant to the CEQA Guidelines. As such, 
          approved applications are granted a THP and therefore do not 
          need to prepare an EIR. 

          2. Timber harvesting may also occur pursuant to a programmatic 
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          timber environmental impact report (PTEIR) in which an EIR is 
          prepared. Rarely used, a PTEIR could cover an entire large 
          ownership of commercial timberlands.  Subsequent harvesting 
          activities could use the baseline document as the foundation for 
          subsequent harvesting activities. However, a PTEIR requires 
          subsequent harvesting to be authorized pursuant to a THP. 

          3. Small landowners of 2,500 acres who harvest trees through 
          uneven age management techniques (i.e., not clearcutting) may 
          harvest timber pursuant to a non-industrial timber management 
          plan (NTMP) that does not require a THP. Harvesting activities 
          are authorized pursuant to an expedited notice procedure. 

          4. Other timber harvesting activities are authorized pursuant to 
          a narrow range of exemptions from the normal THP process. Some 
          are complete exemptions and some are partial exemptions. These 
          exemptions cover such activities as the removal of dead and 
          dying trees, fuel reduction, and other specified actions. 

          5. Existing law requires permits conversion of timberlands into 
          non-timber purposes. THPs are required to remove the timber and 
          conversion permits are required for the change in land use. 
          Those permits do not expressly take into account the loss of 
          carbon or the foregone ability to sequester carbon into the 
          future nor is mitigation for that loss required. 

          PROPOSED LAW
          1. This bill would create a voluntary, optional method to 
          harvest timber on a watershed (or multiple watershed) scale. The 
          permit would be called a Watershed Timber Harvest Plan (WTHP). 
          The overarching requirement of the WTHP is to maintain lands in 
          timber production and to ensure that those lands are managed in 
          a way that increases sequestered forest carbon and improves the 
          resilience of the landscape to climate change and naturally 
          occurring fires. 

          As a quick summary of the proposed law, the duration of 
          harvesting permits would be extended to 20 years and annual 
          operations would be triggered through a notice provision 
          (similar to those used in NTMPs). The various reviewing agencies 
          (CDF plus in most cases the Departments of Fish and Game, 
          Conservation, and a regional water quality board) would be 
          required to synchronize their permits to coincide with the 
          20-year term. The applicant would pay a fee of up to $100,000 to 
          pay for the initial environmental review of the WTHP. The 
          landowner would disclose all harvest activities planned over the 
          next 20 years with refined mapping every 4 years. Reports on 
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          attaining structural retention (trees remaining on the land for 
          habitat or other environmental purposes) goals would be filed 
          every 5 years. Also on a five-year schedule is the requirement 
          to report on planned harvesting activities, methods of harvest, 
          and other related items. Every two years, the landowner would 
          file a compliance report with CDF. 

          The bill would also impose a requirement that a landowner must 
          increase carbon stocks on the land to help mitigate the effects 
          of climate change. This must be demonstrated by the landowner 
          and conveyed to CDF every fifth year. Another provision would 
          require mitigation for the loss of carbon stocks for the 
          conversion of more than one acre of timberland into 
          non-timberland purposes. 

          2. The WTHP would include all information required by current 
          law for a THP, and in addition, specifically require mitigation 
          of environmental impacts to a less than significant level. All 
          other applicable provisions of habitat protection laws, water 
          quality laws, and all other provisions of state law that apply 
          to timber harvesting activities would not be affected and would 
          remain in effect. 

          The environmental analysis, although on a larger expanse of land 
          than historic THPs, would be required to contain sufficient 
          information that the need for further environmental review for 
          purposes of annual harvesting activities would not be needed. 
          However, the bill does allow plans to be amended in the event of 
          new information or if reviewing agencies discover compliance 
          problems. 

          A WTHP would cover one or more designated watersheds but would 
          normally not exceed 100,000 acres. Watersheds are already 
          designated in California and mapped by the Department of Water 
          Resources and that methodology is referenced in and incorporated 
          into the bill. 

          3. Additionally, three separate elements would be included in a 
          WTHP: a sustained timber production assessment, a fish and 
          wildlife assessment, and a watershed assessment. 

          The sustained timber production assessment would detail all the 
          relevant information about the composition of the forest 
          structure and how the proposed harvesting activities would be 
          consistent with the protection of wildlife, water quality, 
          carbon sequestration, and the projected economic activity within 
          a region. 
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          The fish and wildlife assessment must contain all the provisions 
          in the plan that address all wildlife and endangered species 
          issues. This assessment must disclose impacts to wildlife and 
          what management techniques will be used to retain necessary 
          forest structure for affected wildlife. 

          The watershed assessment and the planning assessment requires an 
          integrated analysis of all the potentially significant adverse 
          environmental impacts within a proposed WTHP. This analysis will 
          be on a watershed basis, or on a multiple watershed basis where 
          appropriate. This is assessment that will disclose erosion and 
          landslide risks, how the WTHP will comply with water quality 
          laws, a schedule for road repair, and related issues. This 
          assessment must also include a discussion of the range of 
          projected impacts of climate change in the region covered by the 
          WTHP. 

          4. As drafted, the proposed structural retention language is in 
          the fish and wildlife assessment. These provisions are subject 
          to future negotiations by the parties, but in their current form 
          would do the following:

          A. Require an unspecified increase in the total volume of forest 
          carbon over the life of the permit and have these increases 
          demonstrated to CDF every five years. 

          B. Intent language that the structural diversity of the 
          landscape is enhanced and that the landscape becomes more 
          resilient throughout the area comprising the WTHP. 

          C. Mandatory retention of trees of specified sizes in each 
          clearcut harvest unit that is along a federal or state highway 
          corridor that could be as much as a mile wide.  This retention 
          would vary depending on the topography of the specific corridor. 


          D. For other areas outside of the highway corridors, additional 
          retention requirements would apply. Two basic models would apply 
          depending on how the landowner plans to comply with the 
          retention requirements. Where retention is dispersed across the 
          landscape, it would be based on a per acre minimum that would be 
          based on a specific percentage of minimum stocking standards in 
          the California Code of Regulations. The author and the 
          stakeholders have not resolved the specific percentage at this 
          time. 

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          Where retention is to be aggregated into groups, retention would 
          be based on a minimum size within each harvest unit. Again, 
          those percentage numbers have been resolved as of yet. 

          5. The bill contains several provisions related to the agency 
          review and public availability of a proposed WTHP. The WTHP 
          would be reviewed by CDF and all of the other reviewing agencies 
          in a coordinated fashion. The public would be provided 
          electronic access to all documents. The review of the proposed 
          WTHP will be paid for by a maximum $100,000 fee paid by the 
          applicant. All of the reviewing agencies must agree to the WTHP 
          prior its approval. All of the reviewing agencies must 
          participate in comprehensive field review prior to approval of 
          the WTHP.

          If after a regularly scheduled compliance review inspection, the 
          WTHP is found to be out of compliance, the director of CDF must 
          suspend the WTHP until it is brought into compliance either by 
          changes in operation or by an amendment. 

          At the tenth year, there shall be another full field review with 
          all of the reviewing agencies. If the WTHP is not in compliance, 
          the WTHP shall be suspended and the WTHP must be brought into 
          compliance or amended as provided in the Forest Practices Act. 

          The bill contains an appeals process for landowners whose WTHP 
          application is denied. 

          6. There are several provisions related to the notice of 
          operations pursuant to a WTHP. It must be filed 30 days before 
          operations, available to the public electronically, and must 
          describe all proposed operations for a period of 12-18 months. 
          The notice must also certify the operations will be conducted 
          pursuant to the WTHP and that there have been no substantial 
          changes or new information that would alter the information or 
          analysis of the WTHP. Minor deveiations from the WTHP as defined 
          in the Forest Practice Rules would be permitted with the 
          approval of the director. 

          Within 10 days of the receipt of the notice, the director shall 
          contact the reviewing agencies to determine if a field review is 
          necessary. Operations can commence provided that no reviewing 
          agency objects. 

          If there is an objection, the bill provides a mechanism for 
          resolving the objection, and in addition, the director may 
          initiate consultation among the reviewing agencies to try to 
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          resolve the dispute which, if successful, would then be 
          memorialized in an amendment to the WTHP.

          At the point the notice is determined by CDF to be consistent 
          with the WTHP, the director is required to approve the notice. 

          7. The bill contains enforcement provisions that require the 
          suspension of the WTHP if persistent violations are detected, 
          the terms of permits are being violated, and other conditions. 
          While suspended, no operations pursuant to the WTHP may 
          continue. 

          8. After operations are completed, all areas on which operations 
          occurred must be inspected by CDF  with one year. 

          9. Timberland conversions of greater than one acre shall be 
          fully mitigated, including the depletion of current and future 
          carbon stocks. 


          ARGUMENTS IN SUPPORT
          According to the author, the bill has two purposes: First, it 
          should be possible to create a new voluntary approach to timber 
          harvesting that provides for improved environmental review, 
          reduced permitting costs to industry, and emphasizes forest 
          management that will help meet the state's climate objectives.  
          Second, California needs to ensure that biological carbon on the 
          state's timberlands is maintained into the future and that 
          mitigation is required for losses of current and future carbon 
          stocks when timberland is converted to other uses. 

          The author notes that the January 4, 2012 version of the bill 
          reflects the state of negotiations that have occurred over the 
          past two years, largely with industry representatives. The 
          Comments section reflects the remaining open issues that have 
          been flagged so far from specific stakeholders. Going forward, 
          the author is committed to continuing discussions on these 
          issues as well as working with the administration to ensure that 
          its agencies are comfortable with the technical issues in the 
          bill. 

          In general, the bill proposes a longer term permit that covers 
          more territory based on one or more watersheds and discloses all 
          logging activities that will occur over the next 20 years. The 
          larger geographic scope and more complete disclosure should 
          enable a more robust environmental analysis and reduce industry 
          permitting costs. State agency approval costs would be covered 
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          (at least in part) by a fee paid by applicants. The enrolled 
          lands would be managed for harvesting but also to increase 
          biological carbon and forest complexity on the landscape. This 
          approach would not be mandatory, but would be available on a 
          voluntary basis to the state's large timberland operations. 

          Pacific Forest Trust and The Nature Conservancy are co-sponsors 
          of the bill. In a joint letter, these groups not that the loss 
          of forests is a major source of carbon emissions amounting to 
          nearly 20% of global carbon emissions annually. They note that 
          the California Air Resources Board has identified preventing and 
          mitigating further loss of California's forests is a key element 
          of meeting California's emission reduction goals. SB 455 would 
          discourage conversion of timberland and when timberland is 
          converted, the bill would require full mitigation the climate 
          impacts. The mitigation requirement would apply only to 
          timberlands, not other lands that are not capable of generating 
          a commercial timber product. 

          In addition to mitigating the loss of timberland, SB 455 creates 
          a voluntary alternative to the current timber harvesting process 
          for landowners who are willing to commit to increasing forest 
          carbon stocks and retaining more complex forest structure than 
          otherwise required by current law. By extending the duration of 
          the plan and by disclosing operations over the 20-year period 
          while at the same time expanding a plan to a watershed scale, 
          the cumulative impact analysis will be improved and the 
          reviewing agencies and the public will be able to more 
          effectively evaluate and respond to the proposed permit. 
          Following this more robust environmental review, landowners 
          would be able to take advantage of a more streamlined annual 
          harvesting process coupled with regular monitoring, reporting, 
          and reviews. 

          These supporters recognize in their letter that elements of the 
          bill will continue to be discussed and negotiated with the 
          various interested parties. 

          The California Forestry Association has a support if amended 
          position. It is in basic agreement with the intended outcome of 
          the bill, and several key points requested by the timber 
          industry have been resolved in negotiations with the co-sponsors 
          over the past year or two and are reflected in SB 455. The 
          industry and the opposition agree that multiple issues remain 
          open at this point. The industry has its own take on the 
          structural retention questions and is keenly interested that the 
          bill recognize the retention that is required by numerous 
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          voluntary agreements. Several major timber landowners have 
          agreements with state and federal wildlife agencies such as 
          natural community conservation plans, habitat conservation 
          plans, and others. Additionally, the industry has raised several 
          technical questions about the various timelines and other 
          provisions in the bill, whether the schedules for reporting can 
          be compressed, and how the mitigation portion of the bill will 
          ultimately be written. The industry wants clarification on the 
          relationship the requirement to sequester additional carbon and 
          how that might relate to claims for carbon offsets under AB 32.  




          ARGUMENTS IN OPPOSITION
          An environmental coalition consisting of Forests Forever, Sierra 
          Club California, and the Center for Biological Diversity have an 
          oppose unless amended position. These groups believe that the 
          bill, if intended to strengthen the state's approach to 
          sustainable forestry, should prohibit clearcutting. These groups 
          also state that the bill does not provide any specific 
          enhancements in the way cumulative effects are assesses by state 
          agencies. Of these groups, only The Center for Biological 
          Diversity has offered constructive comments. CBD asks for 
          clarification on the mapping provision to ensure that sufficient 
          specificity is provided of the areas that will be harvested. It 
          asks for clarification on when lands outside the ownership 
          covered by WTHP would be included in the environmental analysis 
          covered by the WTHP. It (along with the sponsors and the 
          supporters) recognizes that the current language on retention is 
          incomplete and it has great interest in making sure the final 
          retention language is acceptable.  It asks for clarification on 
          the current language concerning making forests more fire 
          resistant that distinguishes between all tree removal as 
          compared to logging that legitimately makes forests more 
          resilient to natural fire. 

          The letter concludes by lamenting the budget cuts that have 
          affected the reviewing agencies of regular THPs and notes that 
          some of the issues still to be negotiated are significant enough 
          that the signatories desire the bill to be held in committee. 

          In a separate letter the Environmental Protection Information 
          Center also supports a ban on clearcutting, and wants stronger 
          language on cumulative impacts analyses.  

          COMMENTS
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          The author, in communications with the opposition and the 
          supporters, has committed to continue negotiations with the 
          various stakeholders and it is evident that the bill will be 
          amended to reflect those discussions. Therefore, no amendments 
          are suggested by staff at this time. If circumstances require 
          it, the author has committed to returning the bill to this 
          Committee assuming it is approved in the Assembly. 

          SUPPORT
          Pacific Forest Trust
          The Nature Conservancy
          California Forestry Association (if amended) 

          OPPOSITION
          Forests Forever (unless amended) 
          Environmental Protection Information Center (unless amended) 
          Sierra Club California (unless amended) 
          Center for Biological Diversity (unless amended)





























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