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
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          |Author:    |Dahle                  |           |                 |
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          |Version:   |May 27, 2016                                         |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|William Craven                                       |
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                   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  







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               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  








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          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  








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               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  








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               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  








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               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. 









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             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








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          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
                                          



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