BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 455|
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                                 THIRD READING


          Bill No:  SB 455
          Author:   Pavley (D)
          Amended:  1/4/12
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COMM  :  8-0, 1/10/12
          AYES:  Pavley, Cannella, Evans, Fuller, Kehoe, Padilla, 
            Simitian, Wolk
          NO VOTE RECORDED:  La Malfa

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 1/19/12
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NO VOTE RECORDED:  Walters, Emmerson, Runner


           SUBJECT  :    Forestry:  watersheds:  timber harvesting plans

           SOURCE  :     Author


           DIGEST  :    This bill establishes a new process for 
          landowners to develop a watershed timber harvest plan 
          (WTHP), rather than completing many individual timber 
          harvest plans (THPs).

           ANALYSIS  :    Existing law:

          1.The Z'berg-Nejedly Forest Practice Act of 1973 
            (commencing with Section 4511 of the Public Resources 
            Code) prohibits any commercial harvesting of timber 
            unless a THP has been prepared by a registered 
            professional forester and approved by the California 
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            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  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. 

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

          3.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. 

          4.Timber harvesting may also occur pursuant to a 
            programmatic 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. 


          5.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 that does not require a THP.  Harvesting 
            activities are authorized pursuant to an expedited notice 
            procedure. 

          6.Other timber harvesting activities are authorized 

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            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. 

          7.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. 

          This bill:

          1.This bill creates 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 non-industrial timber 
            management plans).  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 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 

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            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 

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               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.  

            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.  

          1.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.  

          2.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 

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            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 deviations 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 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.  

          3.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.  

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

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

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

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           Major Provisions                2012-13     2013-14    
           2014-15   Fund
           

          WTHP review and ongoing                           Unknown 
          additional costs, potentially                          
          General
             monitoring            in the millions per year
          Future THP review costs                                
          Unknown potential cost savings over time               
          General  
          Fee revenues                                      Potential 
          fee revenues in the hundreds                           
          General
                              of thousands to millions per year

           SUPPORT  :   (Verified  1/19/12)

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

           OPPOSITION  :    (Verified  1/19/12)

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

           ARGUMENTS IN SUPPORT  :    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.  This bill 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 

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          timber product. 

           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.  The Center for Biological Diversity 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.  
           

          CTW:nl  1/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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