BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 2029 Hearing Date: June 28, 2016 ----------------------------------------------------------------- |Author: |Dahle | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |May 27, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|William Craven | | | | ----------------------------------------------------------------- Subject: Timber harvesting plans: exemptions BACKGROUND AND EXISTING LAW Pursuant to the Z'Berg-Nejedly Forest Practice Act (FPA) and other statutes, the following are existing provisions of state law: 1) There is a prohibition on timber operations unless a timber harvest plan (THP) has been prepared by a registered professional forester and approved by the Department of Forestry and Fire Protection (CDF). 2) A THP is considered a functional equivalent of an environmental impact report (EIR) under the California Environmental Quality Act (CEQA). 3) A THP is required to contain a description of the location of the planned harvest, the harvest method, measures to avoid excessive erosion, timeframe of operations, and other information required by forest practice rules (FPR) adopted by the Board of Forestry and Fire Protection (Board). 4) There are numerous statutory exemptions from the above provisions that include Christmas tree farms, rights-of-way for utility lines, conversions of less than three acres, fire prevention, defensible space, and dead, dying and diseased trees. 5) These exemptions do not require the interagency review that is required of THPs and they are often approved ministerially based only on a submission from the landowner AB 2029 (Dahle) Page 2 of ? or a registered professional forester hired by the landowner. Such submissions are called a notice of exemption (NOE). 6) Construction of roads of less than 600 feet in length may be approved as a minor deviation from a THP upon notice to CDF. 7) A separate exemption regarding the emergency removal of fuel hazards allows for trees to be removed that are up to 30 inches in diameter without a THP. 8) One of the exemptions is known as the Pilot Exemption and is subject to the following restrictions on harvesting as well as other conditions: a) Only trees less than 24 inches in stump diameter; b) Tree harvesting must decrease fuel continuity and increase quadratic mean diameter of the stand; c) No new road construction or reconstruction; d) No known sites of rare, threatened, or endangered plants or animals will be disturbed, threatened, or damaged; e) The activities are limited to the Sierra Nevada Region or the Counties of Del Norte, Humboldt, Mendocino, Modoc, Sonoma, Siskiyou, or Trinity; f) CDF is required to conduct an onsite inspection after harvest operations to determine compliance with the provisions of this exemption; g) The exemption may be used on parcels of 300 acres or less; and h) Sunsets three years after the effective date of regulations adopted by the Board which in this case is January 1, 2018. PROPOSED LAW This bill would extend the Forest Fire Prevention Pilot Project from January 1, 2018 to January 1, 2023, and expands it by allowing specified road construction to occur and expands the diameter of larger trees that could be harvested on forest land without a THP. ARGUMENTS IN SUPPORT According to the author, the pilot project has thus far treated about 2,000 acres and those who have used the exemption have AB 2029 (Dahle) Page 3 of ? reported barriers which include: (1) Lack of access to land which is why the author seeks language to include a road construction amendment; (2) Lands in counties that have some lands within the boundaries of the Sierra Nevada Conservancy but some lands not within the conservancy are unable to use the exemption on those lands not within the conservancy's boundaries; (3) The diameter limitation of 24 inches is too restrictive; and (4) the 2018 sunset is fast approaching and California continues to face a high risk of catastrophic wildfire. Note--Assembly amendments added provisions for temporary road construction on slopes of less than 40%, included the remainder of the counties' lands that are otherwise included in the Sierra Nevada Conservancy, and increased the diameter of trees that could be harvested from 24 to 26 inches. Numerous other supporters include timber companies and others in the timber business, regional organizations and land trusts from the Sierra, firefighter organizations, landowner associations, and others all of whom make basically the same points: 1) Too much of California's forests are unnaturally dense because of decades of fire suppression. The treatment authorized by the exemption could help improve the resilience of California's forests to fire, pests, and disease. 2) Forest jobs are important in rural counties and offer a counterpoint to the trend of the underground drug economy. 3) The ongoing drought is damaging forests with a huge die-off of trees. If consumed by wildfires, not only will the result be greenhouse gas emissions, but the ability of the forests to sequester carbon and provide other environmental benefits such as wildlife habitat and contributions to the state's water supply will be adversely affected. 4) Allowing temporary roads provides access to forest stands that are otherwise not accessible and allows for the use of equipment that would not otherwise be able to enter those areas. 5) Two companies that used the exemption, Beaty and Associates and Green Diamond, complained that the exemption is economically infeasible, in part because the prohibition on harvesting larger diameter trees could not then offset AB 2029 (Dahle) Page 4 of ? the costs of removing smaller diameter trees. In two other situations, the companies said that the 24 inch limitation prevented the removal of unhealthy or overstocked trees that were greater than 24 inches in diameter. ARGUMENTS IN OPPOSITION There is significant opposition to this bill from three environmental organizations with extensive forestry experience: the Sierra Club, the Environmental Protection Information Center, and the Center for Biological Diversity. Their points include: 1) The alleged benefits of thinning forests are scientifically disputed although there is general agreement that removing small diameter trees that are densely packed together have positive benefits on reducing fire risk. 2) Larger trees are more resilient to fire, and provide numerous environmental benefits, including carbon sequestration, so expanding the diameter of trees is counter-intuitive, except for their commercial value as logs. Large trees serve as a seed source following a fire. 3) Allowing road construction without environmental review is likely to lead to more erosion, with impacts to water quality and salmon. 4) The proposed increase in tree diameter smacks of commercial logging without any environmental review. 5) Removal of larger trees increases the likelihood that more flammable ground vegetation and smaller trees will proliferate. 6) Larger trees are already in short supply because of over-logging, and removing more of them will impair forest health in many stands. 7) The bill is premature and, although the exemption has been expanded by previous legislation, there has been no evaluation of the exemption by CDF. COMMENTS 1. This exemption was first created in 2004 by AB 744 (La Malfa). It allowed for removal of trees 18 inches in diameter with other provisions to reduce the risk of AB 2029 (Dahle) Page 5 of ? wildlife. Data maintained by CDF indicated that the LaMalfa exemption treated an average of 1190 acres/year. 2. AB 744 (Dahle) in 2013 expanded the exemption by allowing removal of trees up to 24 inches in diameter and expanded the geographic eligibility of the exemption to the lands covered by the Sierra Nevada Conservancy. In 2014, AB 2142 (Chesbro) expanded the range of the exemption to include northern coastal coastal counties. AB 744 resulted in the treatment of approximately 2000 acres per year. 3. As noted by some of the supporters, the purpose of AB 744 pilot project was to evaluate if an increase in the diameter of the trees that could be removed under the LaMalfa exemption would increase the use of this exemption and contribute to reducing the risk of catastrophic wildfire. That evaluation has not occurred. 4. As noted earlier, numerous exemptions from the THP requirement exist. In data maintained by CDF, the following facts emerge: a) Approximately 8000 exemptions have been processed since 2011 covering approximately 280,000 acres; b) Over the same time frame, there have been approximately 450,000 acres actually harvested under ministerial permits (no interagency review) for an average of 90,000 acres per year. c) CDF approved harvest plans covering 648,000 acres with THPs, for an annual average of approximately 130,000 acres per year. THPs have a shelf life of 7 years compared to the one year shelf life of an exemption. d) The conclusion from these numbers is that about 40% of the acres (not harvest volume) approved for harvest each year do not undergo multiagency review. e) In separate information provided by the author from the Board of Equalization, approximately 30% of the volume of timber harvested in California in 2015 was through an exemption or emergency notice. f) The department has identified 14 different types of exemptions and 8 different types of emergencies that can be conducted under a non-discretionary 'notice of operations'. 1. The above explains the rationale for a proposed AB 2029 (Dahle) Page 6 of ? amendment in AB 1958 (Wood) in which the Committee recommendations directs CDF and the other trustee agencies to make recommendations to the Legislature on how the use of these exemptions can be reduced, and how multi-agency review of harvesting activities can be increased. Staff notes that multi-agency review was the primary intent of AB 1492 (Cmte. on Budget, c.289, statutes of 2012) which established the fee on lumber products that is paid by consumers. This direction to CDF could also involve some participation by the public, which would strengthen the final work product. To the extent feasible, any agency costs for developing these recommendations should come from the fund balance in the AB 1492 special fund, and not the general fund. The recommendations would be due on or before December 31, 2017. 2. Several of the existing exemptions also target improved resiliency to fire which is one of the author's primary concerns. There are two exemptions to remove trees in order to safeguard houses (one for trees within 150 feet, another for trees out to 300 feet), two exemptions to harvest dead, dying, and diseased trees (depending on whether less than10% or more than 10% of the trees are dead or dying), a new drought mortality exemption, an exemption for substantially damaged timberland, and a forest fire prevention exemption. A homeowner who uses any of these exemptions may not be able to sell the logs commercially, but it is possible that the company that does the tree removal is able to do so. 3. On October 30, 2105, the Governor issued an executive order on the dead tree crisis in California that especially plagues high hazard fire zones across the state. That order directed the removal of dead trees, expanded the use of prescribed burns, directed several agencies to cooperate to extend contracts on biomass plants, and suspended both the California Environmental Quality Act and competitive bidding requirements to get these tasks done. Additionally, the administration proposed a significant expenditure of $130 million in the FY 2016-17 budget from cap and trade funds for its Healthy Forests initiative that is still being considered in the context of the overall cap and trade expenditure plan. AB 2029 (Dahle) Page 7 of ? 4. These comments are intended to indicate that there is a lot of ongoing activity regarding improving forest health above and beyond what occurs pursuant to the pilot project exemption, although it is safe to say that many do not believe that the state is doing enough. 5. Because the provisions of AB 744 have not been evaluated, staff recommends that the provisions of the exemption itself not be changed further, despite the Assembly amendments that increased tree diameter, expanded the geographic range of the exemption, and allow for temporary road construction. Instead, staff recommends that AB 744 be extended 2 more years which will allow time for an evaluation as well as the review contained in Comment 5. (Amendment 1) SUGGESTED AMENDMENTS AMENDMENT 1 Restore original language of exemption and extend sunset two years. SUPPORT American Insurance Association Associated California Loggers CAL FIRE Local 2881 Calforests California Cattlemen's Association California Chamber of Commerce California Farm Bureau Federation California Licensed Foresters Association California Professional Firefighters California Ski Industry Association California State Association of Counties Forest Landowners of California Forest Products Industry National Labor Management Committee Green Diamond Resource Company Lyme Redwood Forest Company Michigan-California Timber Company Pacific Forest Trust Pacific Gas and Electric Company Personal Insurance Federation of California AB 2029 (Dahle) Page 8 of ? Placer Land Trust Property Casualty Insurers Association of America Roseburg Rural County Representatives of California Sierra Business Council Sierra Foothill Conservancy Sierra Pacific Industries SMUD Soper-Wheeler Company Truckee Donner Land Trust W.M. Beaty & Associates One Individual OPPOSITION California Native Plant Society Center for Biological Diversity Ebbetts Pass Forest Watch Environmental Protection Information Center Sierra Club California -- END --