BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 904
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          Date of Hearing:  April 29, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 904 (Chesbro) - As Amended:  April 22, 2013
           
          SUBJECT  :  Forest practices:  working forest management plans

           SUMMARY  :  (1) Creates the Working Forest Management Plan (WFMP)  
          program, which is a long-term forest management plan for  
          nonindustrial landowners with less than 15,000 acres of  
          timberlands if the landowner commits to uneven aged management  
          and sustained yield; (2) creates a modified WFMP for very small  
          nonindustrial landowners; and (3) expands opportunities for a  
          person with a WFMP or a Nonindustrial Timber Management Plan  
          (NTMP) to apply for restoration grant funding.

           EXISTING LAW  :  Pursuant to the Z'Berg-Nejedly Forest Practice  
          Act (Forest Practice Act): 

          1)Establishes the Department of Forestry and Fire Protection  
            (CALFIRE), which is responsible for the fire protection, fire  
            prevention, maintenance, and enhancement of the state's  
            forest, range, and brushland resources, contract fire  
            protection, associated emergency services, and assistance in  
            civil disasters and other nonfire emergencies.

          2)Establishes within CALFIRE the Board of Forestry (Board),  
            which consists of nine members appointed by the Governor.  The  
            Board is required to protect the state's interest in forest  
            resources on private lands, which includes establishing  
            adequate forest policy and determining general policies for  
            CALFIRE.

          3)Authorizes a nonindustrial tree farmer (an owner of timberland  
            with less than 2,500 acres) with the long-term objective of an  
            uneven aged timber stand and sustained yield to file an NTMP  
            with CALFIRE.  An NTMP shall be prepared by a registered  
            professional forester and is considered to be the functional  
            equivalent of an Environmental Impact Report (EIR) for the  
            purposes of the California Environmental Quality Act (CEQA).

          4)Requires CALFIRE, within 45 days from the completion of the  
            preharvest inspection, to review the NTMP to determine if the  
            plan is in conformance with the Forest Practice Act and Forest  








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            Practice Rules.  If CALFIRE determines that the plan is not in  
            conformance with the Forest Practice Act and Forest Practice  
            Rules, CALFIRE shall return the plan, stating its reasons and  
            advising the plan submitter of the person's right to a hearing  
            before the Board.

          5)Requires a nonindustrial tree farmer with an NTMP to file a  
            nonindustrial timber harvest notice with CALFIRE when he or  
            she plans to harvest timber.  The notice shall be effective  
            for a maximum of one year and include information that  
            indicates whether the harvesting complies with the Forest  
            Practice Act and Forest Practice Rules and conforms to the  
            approved NTMP.





           THIS BILL  :

           1)WFMP.  

              a)   The WFMP Program.   Creates the "WFMP," which is a  
               management plan for nonindustrial timberland owners with  
               less than 15,000 acres that commit to uneven aged managed  
               and sustained yield.

               i)     Defines "uneven aged management" as the management  
                 of a specific forest, with the goal of establishing a  
                 well-stocked stand of various age classes, which permits  
                 the periodic harvest of individual or small groups of  
                 trees to realize the yield and continually establish a  
                 new crop.

               ii)    Defines "sustained yield" as the yield of commercial  
                 wood that an area of commercial timberland can produce  
                 continuously at a given intensity of management  
                 consistent with required environmental protection and  
                 that is professionally planned to achieve over time a  
                 balance between growth and removal.  Sustained yield  
                 management implies continuous production planned so as to  
                 achieve, at the earliest practical time, a balance  
                 between growth and harvest.

              b)   Objectives and Plan Requirements.   Requires a WFMP that  








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               is filed with CALFIRE to be prepared by a registered  
               professional forester.  The WFMP shall be public record and  
               shall include all of the following information:

               i)     The name and address of the timberland owner;

               ii)    A description of the land on which the plan is  
                 proposed to be implemented, as specified;

               iii)   A description of the silviculture methods to be  
                 applied and the type of yarding equipment to be used;

               iv)    A description and discussion of the methods to be  
                 used to avoid significant sediment discharge to  
                 watercourses from timber operations.  This shall include  
                 disclosure of erosion sites, erosion control  
                 implementation plans, and an erosion control  
                 implementation schedule.  To avoid duplicative work, this  
                 subdivision does not apply to the extent that the working  
                 forest landowner does both of the following:

                  (1)       Comply with substantially similar requirements  
                    in existing law; and

                  (2)       Submit information to CALFIRE that details how  
                    they are complying with existing law.

               v)     Special provisions, if any, to protect any unique  
                 area within the boundaries of the proposed working forest  
                 management plan;

               vi)    A description of the existing stand, its current  
                 projected growth, how long-term sustained yield will be  
                 achieved, alterations required to achieve the management  
                 objectives, projected timber volumes and tree sizes to be  
                 available for harvest, and projected frequencies of  
                 harvest.  This description shall include disclosure of  
                 existing or expected late seral habitat and how it will  
                 be managed sustainably to preserve its late seral  
                 characteristics;

               vii)   A delineation of stand types and planning units.  To  
                 develop an adequate estimate of current growth and  
                 potential long-term growth based on the sustained yield  
                 policy, major stand types shall have an inventory  








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                 precision as measured by the standard error that is no  
                 greater than 15 percent of their respective inventory  
                 estimate.  For other stand types that individually  
                 represent 10 percent or more of the working forest  
                 management plan, the inventory precision as measured by  
                 the standard error shall be no greater than 25 percent of  
                 their respective inventory estimate;

               viii)  A certification by the registered professional  
                 forester preparing the plan that the forester or a  
                 designee has personally inspected the plan area; and

               ix)     Any other information the Board requires by  
                 regulation to meet applicable rules and standards.

              c)   Notice of Receipt.   Requires the Board to adopt  
               regulations regarding the notice of receipt of the proposed  
               WFMP.  The notice shall be given within two working days  
               following submission of the proposed management plan and  
               shall be consistent with all applicable laws.  In adopting  
               the regulations, the Board shall take account of the extent  
               of the administrative burden involved in giving the notice.  
                The method of notice shall include, but not be limited to,  
               mailed notice.  The regulations may require the person  
               submitting the WFMP to provide to CALFIRE a list of the  
               names and addresses of persons to whom the notice is to be  
               mailed.

              d)   Notice of the Filing.   Requires CALFIRE to provide  
               notice of the filing of WFMPs to any person who requests in  
               writing that notification.  

              e)   Public Inspection and Interdisciplinary Review.   Upon  
               receipt of the WFMP, requires CALFIRE to place the plan, or  
               a true copy of the plan, in a file available for public  
               inspection in the county in which timber operations are  
               proposed under the plan.  For the purpose of  
               interdisciplinary review, CALFIRE shall also transmit a  
               copy to the Department of Fish and Wildlife, the  
               appropriate California regional water quality control  
               board, the county planning agency, and all other agencies  
               having jurisdiction by law over natural resources affected  
               by the plan.  CALFIRE shall invite, consider, and respond  
               in writing to comments received from public agencies to  
               which the plan has been transmitted and shall consult with  








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               those agencies at their request.  

              f)   Review Time and Public Comment.   

               i)     Requires CALFIRE to provide a public comment period  
                 of 90 days from the date of the receipt of a WFMP.   
                 Before a WFMP may be approved, all of the following  
                 requirements shall be met:

                  (1)  Within 20 days of the receipt of a WFMP, or within  
                    30 days of the receipt of a plan to which a road  
                    management plan is appended, CALFIRE shall determine  
                    if the plan is accurate, complete, and in proper  
                    order, and if so, the plan shall be filed;

                  (2)  The initial inspection shall be conducted within 20  
                    days from the date of filing of the WFMP;

                  (3)  Upon completion of the initial inspection, CALFIRE  
                    shall have 30 days to conduct the final interagency  
                    review of the plan;

                  (4)  The public comment period shall end 20 days after  
                    the completion of the final interagency review of the  
                    plan;

                  (5)  After the final interagency review and public  
                    comment period has ended, CALFIRE shall have up to 30  
                    days to review the public input, to consider  
                    recommendations and mitigation measures of other  
                    agencies, to respond in writing to the issues raised,  
                    and to determine if the plan is in conformance with  
                    the applicable rules adopted by the board;

               ii)  If CALFIRE determines that the plan is not in  
                 conformance with the rules and regulations of the Board  
                 or the Forest Practice Act, requires CALFIRE to return  
                 the plan, stating the reasons for the return and advising  
                 the person submitting the plan of the person's right to a  
                 hearing before the Board;

               iii) If CALFIRE does not act within the time periods  
                 specified, requires CALFIRE and the working forest  
                 landowner submitting the working forest management plan  
                 to negotiate and mutually agree upon a longer period for  








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                 CALFIRE to review the plan.  If a longer period cannot be  
                 mutually agreed upon, the WFMP shall be deemed denied and  
                 returned to the working forest landowner submitting the  
                 plan.

               iv)  Authorizes a working forest landowner to whom a plan  
                 is returned, within 10 days from the receipt of the plan,  
                 request the Board for a public hearing before the Board.   
                 The Board shall schedule a public hearing to review the  
                 plan to determine if the plan is in conformance with the  
                 Forest Practice Act and Forest Practice Rules.

               v)     Requires Board action to take place within 30 days  
                 from the filing of the appeal, or a longer period  
                 mutually agreed upon by the Board and the person filing  
                 the appeal.

               vi)  If the plan is not approved on appeal to the Board,  
                 authorizes CALFIRE, within 10 days of Board action, to  
                 determine that the plan is in conformance if the working  
                 forest landowner revises the plan to bring it into full  
                 conformance with the Forest Practice Act and Forest  
                 Practice Rules.

              g)   Plan Amendments.   Authorizes the working forest  
               landowner to submit a proposed amendment to the approved  
               plan and requires the landowner not to take any action that  
               substantially deviates, as defined by the Board, from the  
               approved plan until the amendment has been filed with  
               CALFIRE and CALFIRE has determined either of the following:

               i)     The amendment is in compliance with the current  
                 Forest Practice Act and Forest Practice Rules; or

               ii)  The amendment is in compliance with the Forest  
                 Practice Act and Forest Practice Rules that were in  
                 effect at the time the WFMP was approved.  CALFIRE may  
                 only make this determination if it finds both of the  
                 following:

                  (1)  The adherence to new or modified rules or laws  
                    would cause unreasonable additional expense to the  
                    working forest landowner; and

                  (2)  Compliance with the Forest Practice Act and Forest  








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                    Practice Rules that were in effect at the time the  
                    WFMP was approved will not result in any significant  
                    degradation to the beneficial uses of water, soil  
                    stability, forest productivity, or wildlife. 

              h)   Nonsubstantial Deviations.   Authorizes the working  
               forest landowner to take actions that do not substantially  
               deviate from the approved plan without the submission of an  
               amendment, but those actions shall be subsequently reported  
               to CALFIRE.  The Board shall specify, by regulation, those  
               nonsubstantial deviations that may be taken.  The Board  
               shall specify the requirements for reporting those  
               deviations.  

              i)   Change of Ownership.   In the event of a change of  
               ownership of the land described in the WFMP, requires the  
               plan to expire 180 days from the date of change of  
               ownership unless the new timberland owner notifies CALFIRE  
               in writing of the change of ownership and his or her  
               assumption of the plan.  

              j)   The Landowner's Cancellation of a Plan.   Authorizes the  
               working forest landowner to cancel the WFMP by submitting a  
               written notice to CALFIRE. Once timber operations have  
               commenced pursuant to a working forest harvest notice,  
               cancellation is not effective on land covered by the notice  
               until a report of satisfactory completion has been issued.   
                 
                 
               aa)  Working Forest Harvest Notice.   Requires the working  
               forest landowner who owns, leases, or otherwise controls or  
               operates on all or any portion of any timberland within the  
               boundaries of an approved WFMP, and who plans to harvest  
               any of the timber during a given year, to file a working  
               forest harvest notice with CALFIRE in writing.  A notice  
               shall be filed prior to the harvesting of any timber and  
               shall be effective for a maximum of one year from the date  
               of filing.  If the person who files the notice is not the  
               owner of the timberland, the person filing the notice shall  
               notify the timberland owner by certified mail that the  
               notice has been submitted and shall certify that mailing to  
               CALFIRE.  The notice shall be a public record and shall  
               include all of the following information:

               i)     The name and address of the timber owner;








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               ii)  The name and address of the timber operator;

               iii) The name and address of the registered professional  
                 forester preparing the working forest management plan;

               iv)  A description of the land on which the work is  
                 proposed to be done; 

               v)     A statement that no archeological sites have been  
                 discovered in the harvest area since the approval of the  
                 WFMP;

               vi)  A statement that rare, threatened, or endangered plant  
                 or animal species have not been discovered in the harvest  
                 area since the approval of the WFMP.  Prior to submitting  
                 the notice, a review for any species listed as  
                 threatened, endangered, or rare, or species that meet the  
                 criteria of endangered or rare as provided in state  
                 regulations, shall be conducted after the initial year  
                 after the plan is approved.  Any changes to the plan's  
                 species, species status, habitats, or protection measures  
                 for species or habitats shall be submitted to CALFIRE as  
                 an amendment to the plan before commencing operations;

               vii) A statement that there are no physical environmental  
                 changes in the harvest area that are so significant as to  
                 require any amendment of the WFMP;

               viii)A certification by the registered professional  
                 forester that states either of the following:

                  (1)  The notice as carried out will implement best  
                    management practices for protection of the beneficial  
                    uses of water, soil stability, forest productivity,  
                    and wildlife as required by the current operational  
                    rules of the Forest Practice Act and Forest Practice  
                    Rules; or

                  (2)  Compliance with the Forest Practice Act and Forest  
                    Practice Rules that were in effect at the time the  
                    WFMP was approved will not result in any significant  
                    degradation to the beneficial uses of water, soil  
                    stability, forest productivity, or wildlife.  This  
                    shall only apply if the forester certifies that  








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                    adherence to current or modified rules or laws would  
                    cause unreasonable additional expense to the working  
                    forest landowner.

               ix)  Special provisions, if any, to protect any unique area  
                 within the area of timber operations;

               x)     The expected dates of commencement and completion of  
                 timber operations during the year;

               xi)  A statement that the harvesting notice conforms to the  
                 provisions of the approved management plan.  If any  
                 aspects of the proposed operation are less protective  
                 than the current Forest Practice Act or Forest Practice  
                 Rules, an explanation of the deviation and how resource  
                 values will be adequately protected; and 

               xii) Any other information the Board provides by regulation  
                 to meet Forest Practice Act and Forest Practice Rules.

              bb)    Periodic Monitoring.   For an approved working forest  
               management plan, requires CALFIRE to convene a meeting with  
               the interdisciplinary review team every five years to  
               review the plan's administrative record and any other  
               information relevant to the plan.  If at this meeting a  
               member of the review team determines that a field review is  
               necessary to verify the plan's compliance with the  
               appropriate rules and regulations, then a field review may  
               be conducted.  

              cc)    Reporting Deviations that Threaten the Plan's Resource  
               Conservation Standards.   Requires the registered  
               professional forester who prepares the WFMP or prepares the  
               notice of harvest, or any other registered professional  
               forester who is employed by the owner or operator, to  
               report to the owner or operator if there are deviations  
               from the plan that, in the forester's judgment, threaten  
               the attainment of the resource conservation standards of  
               the plan.  

              dd)    Forester Misstatements.   If the Board finds that a  
               registered professional forester has made any material  
               misstatement in a working forest harvest notice, working  
               forest management plan, or report pursuant to this chapter,  
               requires the Board to take disciplinary action against the  








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               forester.  
                
               ee)    When Harvesting Can Commence.   Allows timber  
               operations to commence immediately if a registered  
               professional forester certifies by written declaration, on  
               behalf of the timber owner or operator, that the working  
               forest harvest notice conforms to and meets the  
               requirements of the approved WFMP under which it is filed.   
               If the notice has been filed by mailing, operations may  
               commence three days after the notice has been mailed.  

              ff)    The State's Cancellation of a Plan.   If CALFIRE  
               determines that the objectives of uneven aged management  
               and sustained yield are not being met by a working forest  
               landowner, or there are other persistent violations  
               detected that are not being corrected, requires CALFIRE to  
               cancel a previously approved WFMP and any further timber  
               operations under the plan shall be terminated. 

              gg)    Transition from NTMP to WFMP.   If a landowner with an  
               NTMP wishes to expand his or her total timberland ownership  
               to 2,500 or more acres, authorizes the landowner to  
               transition into a WFMP for more than 2,500 acres through an  
               amendment to the plan. The Board shall adopt regulations  
               that establish this amendment process.    

           2)Modified Small WFMP  . 

             a)   To encourage smaller landowners to engage in long-term,  
               sustainable forest management, requires the Board to adopt  
               regulations that tailor the WFMP program for landowners  
               with 160 or fewer acres of timberlands in the Coast Forest  
               District and landowners with 320 or fewer acres of  
               timberlands in the Northern Forest District or Southern  
               Forest District.  These regulations shall establish  
               rebuttable presumptions, including presumptions related to  
               sustained yield and cumulative effects, that err on the  
               side of conservation but provide the cost savings to  
                                                                                       incentivize small landowners to develop modified small  
               working forest management plans.

             b)   Requires the board to adopt regulations that are  
               necessary to support the rebuttable presumptions regarding  
               cumulative effects and sustained yield.  At a minimum, the  
               regulations shall include the following provisions:








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               i)     Harvest shall not exceed 80 percent of growth over  
                 any 10-year period, nor exceed 20 percent of harvestable  
                 inventory, whichever is less;

               ii)Harvesting operations shall result in the full range of  
                 age classes and species of trees appropriate to the  
                 location, well distributed across the ownership.   
                 Retention of trees should prioritize those with  
                 significant value to wildlife; and

               iii)Any road construction or reconstruction on slopes over  
                 50 percent shall include consultation with a registered  
                 engineering geologist.  

           3)Grant Programs.   If a person with a WFMP or an NTMP applies  
            for state restoration grant funding for a restoration project  
            that has a significant public benefit, precludes the  
            application from being summarily denied on the basis that the  
            project is a required condition of the harvesting plan.  

           4)Regulations.   Requires the Board to adopt the regulations  
            needed to implement this bill by January 1, 2016

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)A Multi-Stakeholder Process.   In December 2011, a  
            multi-stakeholder timber harvest working group was convened to  
            discuss various ways to address timber harvesting issues in  
            the state.  The author of this bill co-chaired the working  
            group.  The working group has held 18 meetings, seven of these  
            meetings, including a two-day workshop in the North Coast,  
            focused solely on improving the NTMP program.  This bill is a  
            product of these working group meetings.  The bill includes  
            provisions that were suggested by landowners, foresters,  
            agency staff, and members of the environmental community.  The  
            working group will continue to meet this year to discuss this  
            bill.

           2)NTMPS and WFMPs.  The NTMP (which is what the WFMP is modeled  
            off of) was created by the Legislature in 1990 to allow  
            landowners with no more than 2,500 acres to apply for a timber  
            harvesting document that would allow for long-term approval  








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            with certain conditions under a known set of forest practice  
            rules. The program requires the use of uneven aged forest  
            management and proof that operations provide for sustained  
            yield.  Through an NTMP, a nonindustrial timberland owner  
            first prepares a management plan that is subject to a  
            multi-agency review process and acts as the functional  
            equivalent of an EIR under CEQA.  The cost of preparing this  
            management plan is about 25 to 50% more than a typical timber  
            harvest plan (THP), much of which comes from the required  
            sustained yield analysis.  However, unlike a THP, which is  
            good for no more than seven years, an NTMP lasts in perpetuity  
            and the additional cost is recaptured over time because  
            subsequent NTMP harvest entries can be conducted under a much  
            simpler notice to CALFIRE that is tiered off of the NTMP.
             
             By relieving these landowners of some of the costs and burdens  
            of meeting the regulatory requirements designed for industrial  
            timber companies, NTMPs help keep ranches and other  
            non-industrial forest properties economically viable and make  
            them less likely to be subdivided for housing or converted  
            into golf courses or vineyards.  By prohibiting large  
            clear-cuts and requiring a long-term, conservation approach to  
            logging, NTMPs help preserve scenic values, protect water  
            quality, and preserve habitat for fish and wildlife.

            According to 2003 figures, of the 7.4 million acres of private  
            forestlands in California, nonindustrial timberland owners  
            (generally defined as owners who do not own a sawmill)  
            collectively own about 3.2 million acres (41%), with the  
            remainder being held by industrial owners (and non-industrials  
            with more than 5,000 acres).  Today, NTMPs cover approximately  
            333,512 acres of California forests.  Raising the acreage  
            limit to 15,000 acres through the WFMP will make hundreds of  
            thousands of acres of additional timberlands eligible for  
            long-term, sustainable management.  A preliminary review of  
            timberland ownership shows that there are at least 81  
            landowners who would qualify under the new WFMP program.  Of  
            these 81, at least 60 used even aged management (i.e. clear  
            cutting) at some point.  These landowners would have an  
            incentive to commit to long-term uneven aged management under  
            the WFMP.

            Additionally, NTMP landowners who are close to the NTMP's  
            2,500 acreage limit will have an incentive to purchase  
            additional timberlands by transferring to the WFMP.  Several  








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            NTMP landowners near the 2,500 acre limit have indicated that  
            they plan to acquire more timberlands if the WFMP program is  
            enacted.

           3)Benefits to the State.   In 2003, CALFIRE issued a report on  
            the NTMP program.  The report explained that the NTMP program  
            provides significant benefits to the state in terms of  
            regulatory cost savings and societal and economic benefits.
             
             The report states that "[a]lthough more time may be invested  
            by the agencies in the up-front review of the NTMP, this is  
            soon offset by not having to process individual THPs each time  
            the property is entered.  The inspections and enforcement of  
            timber operations do not differ however, and are triggered  
            each time a Notice of Operation is filed."

            As for societal benefits, the report states that "[r]etaining  
            our non-industrial private forest lands in forest use provides  
            tremendous?benefits, including retention of open space,  
            protection of watersheds, water quality and forest soils,  
            maintenance of diverse habitat for fish and wildlife,  
            preservation of important cultural and historical sites, and  
            promotion of recreational opportunities." 

            The "[e]conomic benefits include wood products from  
            sustainable sources, income for timber owners, and jobs for  
            employees and contractors working to harvest, transport, and  
            process forest products.  Sales by local businesses of  
            equipment used for the management of forest lands; and the  
            profits of manufacturers, wholesalers, and retailers of forest  
            products - which are then converted into houses, commercial  
            buildings and consumer products - generate  much additional  
            economic activity."

            "These benefits are all enhanced by the commitment of forest  
            landowners to the long term stewardship and sustainable  
            production requirements of a NTMP.  On the broad statewide  
            scale, the overarching public benefit is in encouraging owners  
            of these small wooded parcels to take advantage of their rich  
            forest soils, to enrich and improve their timber stands, to  
            manage them sustainably into the future, and cumulatively  
            retain that part of the state's rural, working landscape that  
            characterizes California's private timberlands."

            The 2003 report concluded that "the NTMP program is meeting  








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            the uneven-aged management requirement of the Forest Practice  
            Act?[and given] sufficient time to implement current NTMP  
            management prescriptions, landowners will also be able to show  
            that they are meeting the sustained yield requirement.   
            Therefore, [CALFIRE] has determined that the NTMP program is  
            improving California's timberlands and recommends that the  
            program be continued."  Additionally, the report recommended  
            that the NTMP acreage limit be increased to bring more  
            timberlands into the program.  "This change would benefit both  
            landowners and the state by providing an opportunity for these  
            additional timberlands to be placed into a sustained yield and  
            uneven-aged management regime."
            This bill essentially implements the advice of this report by  
            allowing larger nonindustrial timberland owners to participate  
            in the WFMP program, which is modeled off of the NTMP program  
            but includes additional requirements to ensure environmental  
            protection.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Big Creek Lumber Company
          Brian C. Dietterick, Director, Swanton Pacific Ranch, CAL POLY  
          State University
          California Council of Land Trusts
          Central Coast Forest Association
          Pacific Forest Trust
          Redtree Properties, L.P.
          Redwood Empire
          The Buckeye
          The Nature Conservancy
          4 Individuals

           Opposition 
           
          Forest Products Industry National Labor Management Committee
           

          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916)  
          319-2092 












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