BILL ANALYSIS Ó AB 904 Page 1 ASSEMBLY THIRD READING AB 904 (Chesbro) As Amended April 22, 2013 Majority vote NATURAL RESOURCES 8-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Chesbro, Grove, Bigelow, |Ayes:|Gatto, Harkey, Bigelow, | | |Garcia, Muratsuchi, | |Bocanegra, Bradford, Ian | | |Patterson, Skinner, | |Calderon, Campos, | | |Williams | |Donnelly, Eggman, Gomez, | | | | |Hall, Ammiano, Linder, | | | | |Pan, Quirk, Wagner, Weber | | | | | | ----------------------------------------------------------------- SUMMARY : 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. Specifically, this bill : 1)Creates the WFMP for nonindustrial timberland owners that commit to uneven aged management and sustained yield. 2)Allows landowners with Nonindustrial Timber Management Plans (NTMP) to expand total timberland ownership to 2,500 acres or more and transition into an expanded WFMP through an amendment to the plan. 3)Creates a modified WFMP for landowners with 160 or fewer acres of timberlands in the Coast Forest District and 320 or fewer acres of timberlands in the Northern Forest District or Southern Forest District. 4)Requires the Board of Forestry (Board) to adopt regulations to tailor the modified WFMP to incentivize small landowners to develop modified small working forest management plans. 5)Precludes denial of a restoration grant application submitted by a WFMP or NTMP landowner on the sole grounds that the restoration work is a condition of an approved harvesting plan. AB 904 Page 2 EXISTING LAW : Pursuant to the Z'Berg-Nejedly Forest Practice Act (Forest Practice Act): 1)Establishes 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, 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 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. FISCAL EFFECT : According to the Assembly Appropriations Committee, absorbable costs to CALFIRE and unknown, likely absorbable, inspection costs to the Department of Conservation and the State Water Resources Control Board. This bill applies to a small universe of nonindustrial landowners, potentially under 80, who may be interested in this program and are likely currently operating under timber harvest plans (THP). COMMENTS : The NTMP (which is what the WFMP is modeled off of) was created by the Legislature in 1990 to allow landowners with AB 904 Page 3 no more than 2,500 acres to apply for a timber harvesting document that would allow for long-term approval 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 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. 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 additional timberland acreage 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 NTMP landowners near the 2,500 acre limit have indicated that they plan to acquire more timberlands if the WFMP program is enacted. Benefits to the State . In 2003, CALFIRE issued a report on the AB 904 Page 4 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 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 AB 904 Page 5 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 this recommendation by allowing larger nonindustrial timberland owners to participate in the WFMP program. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092 FN: 0000979