BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1289                   HEARING DATE: April 29, 2014   

          AUTHOR: Fuller                     URGENCY: No  
          VERSION: February 21, 2014         CONSULTANT: Toni Lee 
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Off-highway motor vehicle recreation: land transfer.
          
          BACKGROUND AND EXISTING LAW
          Existing law, the Off-Highway Motor Vehicle Recreation Act of  
          2003 (Public Resources Code (PRC) §5090.01 et seq.) provides for  
          the acquisition, management, and funding of off-highway motor  
          vehicle recreation areas or trails through the Division of  
          Off-Highway Motor Vehicle Recreation within the Department of  
          Parks and Recreation (DPR). 

          Existing law grants the State Lands Commission (SLC) statutory  
          authority to control specified state lands (PRC §6201 et seq.).  
          These lands included 5.5 million acres of school lands granted  
          to the state by the federal government in 1853. Because the  
          state sold most of these lands in the 19th century, SLC  
          currently remains in possession of 468,600 acres and retains the  
          mineral rights to an additional 790,000 acres. 

          Existing law, the School Land Bank Act (Act) (PRC §8700 et  
          seq.), created the School Land Bank Fund (SLBF) and grants to  
          the SLC authority and exclusive jurisdiction to administer the  
          fund and interest in school lands. SLC may only use SLBF monies  
          to acquire or enhance school lands. The Act contains legislative  
          findings including the declaration that management of remaining  
          school lands should provide an economic base in support of the  
          public school system. The Act requires that all sales,  
          exchanges, and acquisitions of school lands occur for revenue  
          generating purposes. Net revenues from selling school lands are  
          deposited in the SLBF (PRC §6217.7). Net revenues from leasing  
          school lands are deposited in the Teachers' Retirement Fund and  
          expended through the California Teachers' Retirement System  
          (CalSTRS) (PRC §6217.5). 
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          AB 982 (Skinner, Ch. 485, Stats. 2011) requires SLC to exchange  
          lands with the United States Secretary of the Interior to  
          consolidate school land parcels into contiguous holdings  
          suitable for renewable energy-related projects. A portion of the  
          revenues generated from renewable energy leases must cover SLC's  
          transfer-related costs. These land exchanges are designed to  
          benefit the Desert Renewable Energy Conservation Plan (DRECP),  
          which seeks to conserve desert wildlife while facilitating the  
          timely permitting of compatible renewable energy projects. The  
          Johnson Valley area is a target for renewable energy development  
          under DRECP.

          In 1980 under the Desert Conservation Area Plan, the United  
          States Congress created the Johnson Valley public lands in San  
          Bernardino County. From these lands, the U.S. Bureau of Land  
          Management (BLM) designated 188,000 acres as the Johnson Valley  
          Off-Highway Vehicle (OHV) Recreation Area (JVOA), the largest  
          OHV recreation area in the country. This site contains steep red  
          rock mountains, rolling hills, open valleys, dry lake beds and  
          sandy washes and is popular for hiking, rock hounding, wildlife  
          watching, and four-wheel drive vehicle use. The area near  
          Anderson Dry Lake and Soggy Dry Lake is employed for competitive  
          racing events, such as the popular King of the Hammers Race, and  
          OHV riding. According to DPR's OHV website, these events draw  
          thousands of visitors to the area on an annual basis. 

          The area around JVOA is home to many unique plant and animal  
          species including the threatened desert tortoise. The U.S. Fish  
          and Wildlife Service lists OHV use, military operations, and  
          loss of habitat from desert energy operations as contributors to  
          desert tortoise mortality.

          In 2004, the United States Marine Corps (USMC) identified the  
          need to train an expeditionary force of about 15,000 troops  
          periodically, which would require an expansion of the Twentynine  
          Palms Base land area to support large-scale air and ground  
          live-fire and maneuver training. In February 2013, an  
          environmental impact study of the proposed expansion offered six  
          alternative options. The USMC's preferred option, Alternative 6,  
          would have withdrawn a total of 146,667 acres from the JVOA:  
          108,530 acres exclusively for military use and 38,137 acres as a  
          restricted public access area open for recreational use when  
          military exercises were not being conducted. The OHV community  
          objected to this alternative.

          In 2014, the Twentynine Palms Marine Corps Air Ground Combat  
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          Center acquired 78,993 acres of the JVOA for exclusive military  
          use after passage of the National Defense Authorization Act of  
          2014 (HR 3304). An additional 53,231 acres of the JVOA was  
          designated as a shared area reserved for military exercises 60  
          days a year and open for recreation the rest of the year. This  
          result allows USMC access to less area than proposed in  
          Alternative 6 and reduces the total size of the JVOA. The JVOA  
          now includes 43,431 acres year round and increases in size to  
          96,662 acres for 300 days of the year when the shared areas are  
          open to recreation. The King of Hammers Race area and access to  
          Soggy Dry Lake Bed and Emerson Dry Lake Bed are maintained  
          within the boundaries of the new JVOA. This arrangement  
          terminates on March 31, 2039.

          PROPOSED LAW
          This bill would authorize the State Lands Commission to transfer  
          to the Department of Parks and Recreation unidentified parcels  
          of land owned by the state adjacent to the Johnson Valley  
          Off-Highway Vehicle Recreation Area for off-highway motor  
          vehicle recreation.

          The author has identified seven parcels of school lands for  
          inclusion into this bill, but was unable to amend the bill prior  
          to the bill being heard before the Committee. These seven parcel  
          numbers are: 0454-431-17-0-000, 0454-431-18-0-000,  
          0454-431-10-0-000, 0454-431-20-0-000, 0454-431-21-0-000,  
          0454-431-24-0-000, and 0454-431-26-0-000.

          ARGUMENTS IN SUPPORT
          The California Off-Road Vehicle Association (CORVA) argues that  
          due to the expansion of the Twentynine Palms Marine Base, loss  
          of land to the Johnson Valley OHV open area will cause the  
          cancellation of many competitive events that used to take place  
          in the area. CORVA believes that allowing the state OHV division  
          to take over control of state lands near the Johnson Valley OHV  
          may mitigate some of these negative effects. 

          Nick Benson Sr., owner of Nick's Computer Works in Barstow,  
          believes that expansion of the Johnson Valley OHV through the  
          adoption of SB 1289 would financially benefit businesses and the  
          state through increased sales and sales taxes resulting from  
          heightened recreation. Mr. Benson is an avid off-roader and  
          associates the activity with quality family time, BBQs, and  
          camping experience. 

          ARGUMENTS IN OPPOSITION
          Sierra Club California (SCC) contends that off-road use of  
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          vehicles can present serious impacts on the environment. This  
          activity can lead to erosion, denuding the area of vegetation,  
          and disturbances to wildlife and habitats. They note a 2010  
          scientific study reporting that, "Local ORV activities  
          contributed to particulate matter pollution in San Luis Obispo  
          County that exceeded threshold levels set by the U.S.  
          Environmental Protection Agency as hazardous to human health."  
          SCC states that it would not be appropriate for the legislature  
          to approve the expansion of or new ORV parks without studying  
          the full impacts on the environment and local communities. 

          COMMENTS 
           1.All seven parcels proposed for transfer from SLC to DPR are  
            targeted to become part of DRECP  . SLC is currently negotiating  
            a land exchange package with the BLM for renewable energy  
            projects pursuant to AB 982. As amended, the bill would  
            eliminate any opportunity to use the parcels for revenue  
            generation or renewable energy purposes as required under the  
            Act. 

             Simply transferring the title of school lands to DPR appears  
            to violate SLC's duties pursuant to the Act.  The legislature  
            declared that management of remaining school lands should  
            provide an economic base for the school system (PRC §8701(b)),  
            but this bill provides for no funds to change hands.  
            Additionally, there are likely to be costs to SLC associated  
            with transferring lands. 

           2.The current boundaries and conditions governing the JVOA  
            resulted from six years of negotiation between BLM, USMC, and  
            the off-road vehicle community  . This bill renews negotiations  
            with a different set of entities, DPR and SLC.

           3.It is unclear how disruptive the change in size of the Johnson  
            Valley OHV area will be for holding future sporting events as  
            over 67 square miles of terrain are available at its smallest  
            size  .  Well over double that amount is available to OHV  
            activities for 300 days of the year.  As noted above, the  
            locations used for the King of Hammers event remain in the  
            JVOA.

           4.CalSTRS' financial health  .  Although the specific amount  
            depends upon the valuation method and recent investment  
            returns, CalSTRS is widely acknowledged to be currently  
            underfunded on the order of tens of billions of dollars. 

          SUPPORT
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          California Off-Road Vehicle Association
          Nick Benson Sr. 

          OPPOSITION
          Sierra Club California










































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