BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 455 (Pavley)
          
          Hearing Date: 01/19/2012        Amended: 01/04/2012
          Consultant: Brendan McCarthy    Policy Vote: NR&W 9-0
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          BILL SUMMARY: SB 455 establishes a new process for landowners to 
          develop a watershed timber harvest plan (WTHP), rather than 
          completing many individual timber harvest plans (THPs).
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                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           
          WTHP review and ongoingUnknown additional costs, 
          potentiallyGeneral
             monitoring             in the millions per year

          Future THP review costsUnknown potential cost savings over 
          timeGeneral  

          Fee revenues           Potential fee revenues in the 
          hundredsGeneral
                                    of thousands to millions per year

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          STAFF COMMENTS: SUSPENSE FILE. 

          Current law requires timber harvesters to file a Timber Harvest 
          Plan (THP) with the Department of Forestry and Fire Protection 
          (CalFire). A THP lays out the scope and methods of logging and 
          any required mitigation measures to be undertaken. Under current 
          law, the THP process is considered and "in lieu" process for the 
          California Environmental Quality Act (CEQA), meaning that 
          compliance with an approved THP fulfills the project proponent's 
          obligations under CEQA. The effective duration of an approved 
          THP is three years, with the potential for two one-year 
          extensions.

          SB 455 creates a new process that allows timber harvesters to 








          SB 455 (Pavley)
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          voluntarily develop a Watershed Timber Harvest Plan (WTHP). 
          Under the bill, WTHPs would cover one or more watersheds, 
          generally not more than 100,000 acres. The WTHP would have 
          duration of twenty years. Once a WTHP had been filed and 
          approved by CalFire and other regulatory agencies, a landowner 
          would only be required to provide notification of harvesting 
          activities that are allowed under the WTHP. In order for the 
          proposed WHTP to be approved, the plan would have to include all 
          planned harvesting activities over the next twenty years, the 
          landowner would have to agree to increase overall carbon stocks 
          on the covered lands, and the bill would require mitigation for 
          the loss of carbon stocks due to the conversion of timber lands 
          to other uses. The bill requires WTHP applicants to pay a 
          one-time fee up to $100,000 for regulatory review costs. The 
          bill also specifies procedures for ongoing monitoring and review 
          of harvesting under an approved WTHP.

          The costs to review and approve a WTHP are unknown at this time, 
          but are likely to be significant. By front loading the analysis 
          of future timber harvesting, the bill is likely to increase 
          review costs by CalFire, the Department of Fish and Game, 
          Regional Water Quality Control Boards, and the Department of 
          Conservation. To some extent, these costs will be offset by the 
          fees authorized under the bill. However, it is unlikely that the 
          fees will fully offset those costs. On the other hand, it is 
          possible that, over time, the use of WTHPs will reduce future 
          THP review costs as fewer THPs are filed by large landowners. 

          The total cost for THP review across all agencies is about $19 
          million per year from the General Fund. Staff notes that THP 
          applicants currently do not pay any fees for regulatory review.