BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 904 (Chesbro) - Forest practices: working forest management  
          plans.
          
          Amended: August 13, 2013        Policy Vote: NR&W 7-0
          Urgency: No                     Mandate: Yes (see staff  
          comments)
          Hearing Date: August 19, 2013                     Consultant:  
          Marie Liu     
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 904 would create a working forest management  
          plan (WFMP) for non-industrial timberland owners with less than  
          15,000 acres, which would allow for limited timber harvesting  
          without a timber harvest plan (THP).

          Fiscal Impact: 
              One-time costs of at least $150,000 from the Timber  
              Regulation and Forest Restoration Fund (General) to the  
              Board of Forestry (board) for the development of regulations  
              as required by this bill.
              One-time costs of approximately $75,000 from the Timber  
              Regulation and Forest Restoration Fund to the regional water  
              quality control boards (RWQCBs) for adoption and revision of  
              general waste discharge requirements.
              Assuming five WFMPs are submitted each year, annual costs  
              of approximately $500,000 - $750,000 in FY 2014-15 and  
              growing to $600,000 to $950,000 in FY 2018-19, from the  
              Timber Regulation and Forest Restoration Fund to Department  
              of Forestry and Fire (CalFire), Department of Fish and  
              Wildlife (DFW), the RWQCBs, and Department of Conservation  
              (DOC) for the approval, then ongoing review, of WFMPs. This  
              cost will at least be partially offset by a decrease in THPs  
              submitted. 

          Background: Existing law authorizes non-industrial timber  
          management plans (NTMPs) for landowners who have fewer than  
          2,500 acres of timberland. Two of the basic considerations  
          embedded in NTMPs are (1) a ban on clearcutting or even aged  
          management), and (2) that the plans last indefinitely and  
          generally remain subject to the Forest Practices Rules and  








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          statutes that were effect at the time the NTMP was approved. 

          AB 1492 (Budget Committee) Chapter 289/2012 established a new  
          assessment on lumber products sold in California in order to  
          fund, among other activities, multi-agency review of permitted  
          Forest Practice Act activities in California. Proceeds of the  
          assessment are deposited in to the Timber Regulation and Forest  
          Restoration Fund. CalFire, DOC, DFW, State Water Resources  
          Control Board, and the RWQCBs (collectively referred to as the  
          "reviewing agencies" in this analysis) are all eligible to  
          receive support from the fund for their review of projects or  
          permits necessary to conduct timber operations.
          
          Proposed Law: This bill would allow a timberland landowner of  
          less than 15,000 acres to file with CalFire a WFMP that would  
          allow for limited timber harvesting indefinitely without a THP.  
          The WFMPs must have the objective of maintaining, restoring, or  
          creating uneven aged managed timber stand conditions, achieving  
          sustained yield, and promoting forestland stewardship that  
          protects watersheds, fisheries and wildlife habitats. This bill  
          establishes minimum elements of the WFMP including a description  
          of the land, an inventory design and timber strand  
          stratification criteria, a description and discussion of methods  
          to be used to avoid significant sediment discharge from timber  
          operations, and special provisions to protect unique areas. The  
          board would be authorized to include other criteria in its  
          regulations.

          This bill would establish procedures for the submission, filing,  
          approval, and appeal of the WFMPs. The procedures require a  
          minimum period for public comment, dependent on the size of the  
          lands under the WFMP. The procedures would also require CalFire  
          to submit a copy of a WFMP to the reviewing agencies, the  
          appropriate county planning agency, and all other agencies  
          having jurisdiction over natural resources affected by the WFMP.  
          CalFire would be required to respond in writing to comments  
          received from public agencies as well as the public. This bill  
          would also create a process to appeal CalFire's rejection of a  
          plan to the board. 

          Under an approved WFMP, the landowner must file a ministerial  
          working forest harvest notice with CalFire when a harvest is  
          planned. This bill establishes the minimum content of the notice  
          include information regarding discovery of state or federally  








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          listed species, erosion control mitigation measures and  
          certification by a registered professional forester. The board  
          may adopt regulations that require additional information.

          For harvest areas within the Southern Subdistrict of the Coast  
          Forest District, this bill would also require a 10-day  
          preoperations notice to be given to certain downstream  
          landowners. The harvest notice could not be filed until the  
          preoperations notice period is completed.

          CalFire would be required to review an approved WFMP's  
          administrative record every five years in conjunction with the  
          reviewing agencies. A field inspection may be conducted as part  
          of this review. The board would be required to adopt regulations  
          that require the development of a plan summary before each  
          review, which will be made available to the public on CalFire's  
          website.

          This bill allows for the landowner to submit a proposed  
          amendment to an approved WFMP to CalFire for approval. The board  
          would be required to specify in regulations, nonsubstantial  
          deviations from the WFMP that can be taken by reporting instead  
          of an amendment.

          Under this bill, the board may take disciplinary action against  
          a registered professional forester who made a material  
          misstatement in the preparation of a WFMP or notice of harvest.

          This bill specifies procedures to cancel the plan as well as to  
          transfer the plan to a subsequent landowner. CalFire would be  
          required to cancel an approved WFMP if it determines that the  
          objectives of uneven aged management and sustained yield are not  
          being met or if there are persistent violations that are not  
          being corrected.

          The board would be required to adopt regulations that allow the  
          transfer of a NTMP into a WFMP. A landowner with a WFMP may also  
          request a safe harbor agreement from DFW. DFW's costs incurred  
          in reviewing this request shall be paid from the Timber  
          Regulation and Forest Restoration Fund. 

          This bill would also require the board to adopt regulations to  
          create the Small Forest Unevenaged Management Plan (SFUMP) for  
          lands of less than 320 acres and follows the general structure  








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          of the NTMP. The SFUMP would be required to have restrictions  
          regarding the size and frequency of harvesting.

          Staff Comments: This bill would require the board to develop  
          regulations regarding the WFMP and the SFUMP with specified  
          elements, including elements regarding notice of receipt of a  
          proposed WFMP, required contents of the WFMP, nonsubstantial  
          deviations that can occur without amendments to a WFMP, required  
          contents of the notice of harvest, the plan summary for the  
          five-year review, and a process to file an amendment to a WFMP.  
          While the board has some existing staff that can be made  
          available to work on these regulations, it will be at the  
          expense of the development of other regulations that are  
          necessary to comply with the board and CalFire's other  
          regulatory responsibilities. Staff estimates that this bill will  
          cause a minimum workload equivalent of $150,000 in one-time  
          costs to develop the necessary regulations. 

          The Lahontan, Central Valley, and North Coast Regional WQCBs  
          will also incur some one-time costs to develop or revise general  
          waste discharge requirements covering WFMPs. Collectively for  
          these three RWQCBs, staff estimates approximately $75,000 in  
          workload will be necessary. 

          CalFire and the reviewing agencies will all incur costs in the  
          review of a WFMP application, the review of harvest notices, and  
          the five-year review of approved a WFMP. The costs to the  
          agencies depend on the number of plans submitted and approved as  
          well as the complexity of those plans. According to CalFire, 81  
          landowners have forestland acreage between 2500 and 15,000 acres  
          (although there is some dispute by interested parties on the  
          accuracy of CalFire's figure). It is unknown how many of these  
          landowners will ultimately decide to file for a WFMP and when. 

          Based on a February 2013 report from the Natural Resources  
          Agency and CalEPA that was required by AB 1492, the Resources  
          Agency, CalFire, DFW, SWRCB, and DOC collectively need  
          approximately $25 million annually and 193 positions to review  
          all discretionary harvest permits (THPs, NTMPs, etc.) received  
          each year. The actual cost to review each THP can vary greatly  
          depending on factors such as the quality of the THP submitted,  
          the size of the plan, and the complexity of the plan. Based on  
          the number of permits submitted in 2011-12, staff estimates that  
          the average cost of reviewing a TPH is in the high tens of  








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          thousands.

          Staff assumes the workload involved in reviewing and approving a  
          WFMP will be 25-50% higher than a THP as WFMP allows harvesting  
          indefinitely. Assuming five plans are submitted annually, this  
          bill will likely result in costs to the reviewing agencies in  
          the range of the mid to high hundreds of thousands of dollars.  
          Once a WFMP is approved, the reviewing agencies will incur  
          ongoing costs to review harvest notices and to conduct the  
          five-year review. Each WFMP is likely to result in costs  
          collectively across the review agencies of a couple of thousands  
          of dollars annually. Continuing with the assumption of five  
          WFMPs submitted annually, at the end of a five year period,  
          there will be review costs in the low hundreds of thousands of  
          dollars.

          Staff notes that aside from the initial costs of regulatory  
          development for the WFMP program, the initial and ongoing costs  
          caused by this bill may be at least partially offset by a  
          decrease in THPs, depending on the extent that a WFMP supplants  
          the submission of THPs. The extent to which a WFMP supplants THP  
          submission is speculative. 

          This bill changes the definition of a crime, which is a  
          non-reimbursable state mandate.