BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 455
                                                                  Page  1

          Date of Hearing:   August 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 455 (Pavley) - As Amended:  August 7, 2012 

          Policy Committee:                             Natural 
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill specifies procedures and conditions by which state 
          agencies are to consider an application to convert three or more 
          acres of timber land to nontimber uses.  Specifically, this 
          bill:

          1)Requires CAL FIRE to find certain conditions in order to 
            approve an application to convert three or more acres of 
            timberland to nontimber uses, including:

             a)   Mitigation will occur within one year of the conversion.
             b)   All environmental effects are fully mitigated as, 
               determined in consultation with DFG, on California 
               timberland and in compliance with the principles codified 
               in the state's greenhouse gas (GHG) reduction law.
             c)   The mitigation accounts for the loss of carbon in 
               above-ground and below-ground biomass and future ongoing 
               carbon sequestration, consistent with GHG methodologies 
               approved by the Air Resources Board (ARB).

          2)Provides certain automatic exemptions and conditional 
            exemptions to the permitting requirements of this bill.

          3)Authorizes the CAL FIRE to collect a fee, from applicants for 
            a permit to convert three or more acres of timber land to 
            nontimber use, in an amount necessary to cover the costs of 
            CAL FIRE and the Department of Fish and Game (DFG) to approve 
            such permits and ensure mitigation is realized.

          4)Creates the Timberland Conversion Services Fund, to be 
            administered by the Natural Resources Agency, to receive 








                                                                  SB 455
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            monies from permitees, by agreement with CAL FIRE, available 
            as a continuous appropriation to fund state mitigation of 
            timberland conversions.

          5)Requires CAL FIRE to develop guidelines, in consultation with 
            and approved by ARB, for the implementation of the 
            requirements of this bill.

          6)Authorizes CAL FIRE and ARB to seek reimbursement for their 
            costs to develop the guidelines from any appropriate source, 
            including the Timberland Conversion Services Fund. 

           FISCAL EFFECT
           
          1)One-time costs to CAL FIRE and ARB, likely in the hundreds of 
            thousands of dollars, to develop timberland conversion 
            guidelines (special funds, reimbursed from revenue in the 
            Timberland Conversion Services Fund).
             
          2)Annual costs of an unknown amount, but potentially in the 
            hundreds of thousands of dollars, to CAL FIRE and DFG to 
            review applications to convert three or more acres of 
            timberland to nontimber use (special funds).  These costs 
            should be fully covered by the fee authority provided to CAL 
            FIRE.

          3)Annual minor costs, no more than the low tens of thousands of 
            dollars, to the Natural Resources Agency to administer monies 
            in the Timberland Conversion Services Fund (Timberland 
            Conversion Services Fund).

           COMMENTS  

           1)Rationale  .  The author intends this bill to provide standards 
            and processes for mitigation of timberland. The author 
            contends the bill will provide incentives to timberland owners 
            to maintain and improve their timberland, rather than convert 
            it to nontimber uses, such as vineyards.

           2)Background.   When a timberland owner proposes to convert 
            timberland to nontimberland uses, he or she must submit to CAL 
            FIRE an application for timberland conversion permit  (TCP) 
            and timberland conversion plan, unless exempted from the need 
            to so.  A TCP, which must comply with the California 
            Environmental Quality Act (CEQA), exempts the timberland owner 








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            from timber stocking requirements of the forest practice rules 
            or, where immediate rezoning is sought, grants the right to 
            obtain final rezoning from local government.  

            The Board of Forestry reports that timberland owners are under 
            increasing pressure to convert their timberlands to other, 
            more profitable uses.  From the state's perspective, such 
            conversion is potentially problematic, for a number of 
            reasons:  loss of timberland may result in destruction of 
            wildlife habitat, degradation of stream water quality and 
            flood control, and release of GHGs stored in the timber and 
            land, as well as a loss of future storage of GHGs.  Current 
            law does not explicitly require CAL FIRE to consider GHG loss 
            and mitigation when reviewing an application for timberland 
            conversion.

           3)Support.   This bill is supported by the American Federation of 
            State, County and Municipal Employees, the Nature Conservancy 
            and Pacific Forest Trust, which argue the bill brings 
            necessary clarity to the timberland conversion process, 
            especially as it concerns GHGs.  

          4)Opposition.   This bill is opposed by the California Licensed 
            Foresters Association, which contends the bill adds more 
            bureaucracy to forestry practices and that conservation of 
            timberland would be better served by reforming regulations to 
            promote in-state production of forest products.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081