BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 744 (Dahle) - Timber harvesting plans: exempt activities. Amended: September 11, 2013 Policy Vote: NR&W 5-1 Urgency: No Mandate: No Hearing Date: September 12, 2013 Consultant: Marie Liu This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 744 would allow trees of up to 24 inches to be harvested for the purpose of fuel reduction without a timber harvest plan or other similar harvesting permit. Fiscal Impact: One-time costs of up to $70,000, from the State Responsibility Area Fire Prevention Fund (special fund), to the Board of Forestry in FY 2013-14 for the development of regulations. Unknown, but likely absorbable, increased inspection costs from the State Responsibility Area Fire Prevention Fund for timber operations under the Forest Fire Prevention Pilot Project Exemption in FY 2013-14 through FY 2019-2020. Background: Existing law generally requires timber operations to be permitted through a timber harvest plan (THP) or other similar permit that is prepared by a registered professional forester and approved by the California Department of Forestry and Fire Protection (CalFire). There are some exemptions from the permitting process, including for the removal of trees for utility lines, removal of dead and diseased trees of any size, the removal of trees for the creation of defensible space for habitable structures, and the harvesting of trees for the purpose of reducing the rate of fire spread and fuel ignitability. The existing exemption for fuel reduction activites, known as the Forest Fire Prevention Exemption or the "La Malfa Exemption," must meet various conditions including: The parcel harvested must be 300 acres or less. The harvesting must decrease vertical and horizontal fuel AB 744 (Dahle) Page 1 continuity. The harvesting must result in making the average diameter of the trees that remain in the stand larger than the average diameter of the trees in the stand prior to the fuel reduction activities. The level of residual stocking must be consistent with maximum sustained production of high-quality timber products. Only trees that have a diameter less than 18 inches in stump diameter, measured at eight inches above the ground level, may be removed. In specific situations, trees up to 24 inches in diameter may also be removed to achieve the goal of fuel reduction. CalFire is required to conduct an onsite inspection after the La Malfa Exemption is used to determine whether enforcement actions are needed. Proposed Law: This bill would create the Forest Fire Prevention Pilot Project Exemption which would allow trees with up to a 24-inch diameter to be harvested for the purpose of fuel reduction under the Forest Fire Prevention Exemption. The pilot project would be valid for the Sierra Nevada Region, including Modoc, Siskiyou, and Trinity counties. In addition to meeting the conditions under the existing exemption, the harvest activity must: Leave a residual stocking that is consistent with maximum sustained production of high-quality timber products. Increase the average diameter of the remaining trees, consistent with existing provisions of the Forest Practice Rules. Occur in areas of high, very high, and extreme fire threat zones. (Note: As noted in the analysis of the Natural Resources and Water Committee, the "extreme" zone is incorrect and should read "moderate.") The Forest Fire Prevention Pilot Project Exemption would sunset on January 1, 2019. Staff Comments: This bill would necessitate the Board of Forestry changing their regulations. These regulations will have some costs to develop, though it will most likely be accomplished by existing staff at the Board of Forestry at the expense other non-statutorily required regulations which will be AB 744 (Dahle) Page 2 delayed. Existing law requires that CalFire conducts an onsite inspection after an exemption is used. Timber activities under this pilot project exemption would also be subject to this inspection. To the extent that this exemption is used, there will be a workload increase for CalFire inspectors. It is not known the expected use of this exemption, but based on the usage of the existing La Malfa Exemption (8400 acres since 2005), this workload increase is likely absorbable. Staff notes that the supporters of the bill have expressed intent to increase the range for the use of this pilot project next year beyond the Sierra Nevada. Staff notes that such an expansion would be inappropriate until the pilot project is completed and evaluated. Recommended Amendments: This bill declares that it is the intent of the Legislature that CalFire maintain adequate records to evaluate this pilot project. Staff believes that this requirement should be in statutory language. This bill intends to create a pilot project to improve fuel reduction projects. The committee may wish to consider whether a 2-year sunset is more appropriate than five to better understand potential impacts to CalFire.