Amended in Senate August 19, 2016

Amended in Senate August 16, 2016

Amended in Senate August 1, 2016

Amended in Senate June 22, 2016

Amended in Assembly May 31, 2016

Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2087

Introduced by Assembly Member Levine

February 17, 2016

An act to add Chapter 9 (commencing with Section 1850) to Division 2 of the Fish and Game Code, relating to fish and wildlife.

LEGISLATIVE COUNSEL’S DIGEST

AB 2087, as amended, Levine. Regional conservation begin delete frameworks. end delete begin insert investment strategies. end insert

Existing law establishes the Department of Fish and Wildlife in the Natural Resources Agency. Under existing law, the department has jurisdiction over the conservation, protection, and management of fish, wildlife, native plants, and habitat necessary for biologically sustainable populations of those species. The California Endangered Species Act prohibits the taking of an endangered, threatened, or candidate species, except as specified. Under the act, the department may authorize the take of listed species if the take is incidental to an otherwise lawful activity and the impacts are minimized and fully mitigated. Existing law prohibits an entity from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, any river, stream, or lake, or from depositing certain material where it may pass into any river, stream, or lake, without first notifying the department of that activity, and entering into a lake or streambed alteration agreement if required by the department to protect fish and wildlife resources.

This bill would authorize the department, or any other public agency, to propose a regional conservation begin delete framework, end delete begin insert investment strategy, to be developed end insert in consultation with applicable local agencies that have land use authority, for the purpose of informing begin insert science-based end insert conservation actions and habitat enhancement actions that would advance the conservation of focal species and providing voluntary begin insert nonbinding end insert guidance for various activities. The bill would require the begin delete framework end delete begin insert strategy end insert to contain specified information and would authorize the begin delete framework end delete begin insert strategy end insert to include a regional conservation assessment proposed by the department or any other public agency and approved by the department. The bill would authorize the department to approve a regional conservation begin delete framework, or approve the framework with amendments, end delete begin insert investment strategy or amended strategy end insert for an initial period of up to 10 years after a public meeting and a public comment period regarding the proposed begin delete framework end delete begin insert strategy or amended strategy end insert have been held and after it finds that the begin delete framework end delete begin insert strategy end insert meets certain requirements. The bill would authorize a conservation action and a habitat enhancement action that measurably advance the conservation objectives of an approved begin delete framework end delete begin insert strategy end insert and that meet other specified requirements to be used to create mitigation credits. The bill would authorize these mitigation credits to be used to fulfill compensatory mitigation requirements established under any state or federal environmental law, as determined by the applicable local, state, or federal regulatory agency, including compensatory mitigation requirements to compensate for take or other adverse impacts of activities authorized pursuant to the California Endangered Species Act, to reduce adverse impacts to fish or wildlife resources, or both, from activities authorized pursuant to a lake or streambed alteration agreement to less than substantial, or to mitigate significant effects on the environment pursuant to the California Environmental Quality Act. To create these mitigation credits, the bill would require a person or entity to enter into a mitigation credit agreement with the department that meets specified requirements. The bill would prohibit the release of mitigation credits for use, sale, or transfer under a mitigation credit agreement unless the department approves the release in accordance with certain requirements. The bill would begin delete authorize end delete begin insert require end insert the department to collect fees begin insert or other compensation end insert from a person or entity that proposes to enter into a mitigation credit agreement, and from a public agency that proposes a begin delete framework, end delete begin insert strategy or a regional conservation assessment, end insert to pay for all or a portion of the department’s costs relating to the mitigation credit agreement, proposed begin delete framework, end delete begin insert strategy, end insert or proposed regional conservation assessment. begin insert The bill would authorize the department to partner with the California Infrastructure and Economic Development Bank to finance the development of advance mitigation credits if needed. end insert The bill would authorize the department to adopt guidelines and criteria to aid in the implementation of these provisions and would exempt the adoption of these guidelines and criteria from the Administrative Procedure Act. The bill would require the department to submit a report regarding the implementation of these provisions to the Legislature on or before January 1, 2020. The bill would prohibit the department from approving begin insert more than 15 regional conservation investment strategies before January 1, 2020, and would prohibit the department from approving end insert a regional conservation begin delete framework end delete begin insert investment strategy end insert or regional conservation assessment on or after January 1, 2020, and from entering into a mitigation credit agreement on or after January 1, 2020.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The purpose of Chapter 9 (commencing with
Section 1850) of Division 2 of the Fish and Game Code is to create
a pilot regional conservation investment strategy program through
January 1, 2020, to identify and prioritize regional conservation
through an open public process and using a science-based
approach while also encouraging investments in conservation
through advance mitigation. end insert

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Chapter 9 (commencing with Section 1850) is added
to Division 2 of the Fish and Game Code, to read:

 

Chapter  9. begin delete Regional Conservation Frameworks end delete begin insert Advance
Mitigation And Regional Conservation Investment
Strategies end insert

 

1850.  

(a) The Legislature finds and declares that it would be
beneficial to identify species and habitat conservation initiatives
at a regional scale, including actions needed to address the impacts
of climate change and other wildlife stressors, in order to guide
voluntary investments in conservation, begin delete infrastructure planning, end delete
begin insert infrastructure, end insert sustainable communities strategies, and
compensatory mitigation for impacts to ecological resources,
including impacts to threatened and endangered species, other
sensitive species, natural communities, ecological processes, and
wildlife corridors.

(b) The purpose of this chapter is to promote the voluntary
conservation of natural resources, including biodiversity and
ecological processes, and to enhance resiliency to climate change
and other threats. In order to further this goal, it is the policy of
the state to encourage voluntary mechanisms to conserve biological
and other ecological resources and to identify conservation actions,
including actions needed to promote resiliency to the impacts of
climate change and other stressors to species and habitat.

(c) It is further the policy of the state to encourage voluntary
mechanisms to identify and implement advance mitigation actions
that do the following:

(1) Can be used to compensate for project impacts, including,
but not limited to, infrastructure and renewable energy projects,
more efficiently.

(2) Are effective ecologically.

(3) Will help to conserve regionally important biological and
other ecological resources.

(d) In enacting this chapter, it is the intent of the Legislature to
promote begin insert science-based end insert conservation begin delete planning end delete that identifies species
and habitat conservation needs, including actions needed to
promote resiliency to the impacts of climate change and other
stressors. It is further the intent of the Legislature to create
nonregulatory mechanisms to guide investments in conservation,
begin delete infrastructure and land use planning, end delete begin insert infrastructure, end insert and
compensatory mitigation for impacts to natural resources, including
impacts to threatened and endangered species, other sensitive
species, natural communities, ecological processes, and
connectivity.

(e) In enacting this chapter, it is not the intent of the Legislature
begin delete to prescribe or prohibit land uses, end delete begin insert to regulate the use of land, end insert
establish land use designations, or to begin delete affect end delete begin insert affect, limit, or restrict end insert
the land use authority of any public agency.

begin insert

(f) Further, in enacting this chapter, it is not the intent of the
Legislature that an approved regional conservation investment
strategy would be binding on independent public agency action
within the strategy’s geographic scope.

end insert

1851.  

For purposes of this chapter:

(a) “Areas of Conservation Emphasis” means the biodiversity
analysis completed by the department in 2010, or the latest update
of that analysis.

(b) “Compensatory mitigation” means actions taken to fulfill,
in whole or in part, mitigation requirements under state or federal
law or a court mandate.

(c) “Conservation action” means an action to preserve or to
restore ecological resources, including habitat, natural
communities, ecological processes, and wildlife corridors, to
protect those resources permanently, and to provide for their
perpetual management, so as to help to achieve one or more
biological goals and objectives for one or more focal species.
Conservation actions may include, but are not limited to, actions
to offset impacts to focal species.

(d) “Conservation easement” means a perpetual conservation
easement that complies with Chapter 4 (commencing with Section
815) of Title 2 of Part 2 of Division 2 of the Civil Code.

(e) “Focal species” means sensitive species within a regional
conservation begin delete framework end delete begin insert investment strategy end insert area that are analyzed
in the begin delete framework end delete begin insert strategy end insert and will benefit from conservation
actions and habitat enhancement actions set forth in the begin delete framework. end delete

begin insert strategy. end insert

(f) “Habitat enhancement action” means an action to improve
the quality of wildlife habitat, or to address risks or stressors to
wildlife, that has long-term durability but does not involve land
acquisition or the permanent protection of habitat, such as
improving in-stream flows to benefit fish species, enhancing habitat
connectivity, or invasive species control or eradication.

(g) “Performance-based milestones” means specifically
identified steps in the implementation of a conservation action or
habitat enhancement action, such as site protection, initiating
implementation, completing implementation, or achieving
performance standards.

(h) “Performance standards” means observable or measurable
physical or biological attributes that are used to determine if a
conservation action or habitat enhancement action has met its
objectives.

(i) “Permanently protect” means doing both of the following:

(1) Recording a conservation easement, in a form approved in
advance in writing by the department, or establishing perpetual
protection of land in a manner begin delete substantially similar to a
conservation easement end delete begin insert consistent with draft or approved natural
community conservation plans within the area of the applicable
regional conservation investment strategy end insert and approved in advance
in writing by the department, that prevents development, prohibits
inconsistent uses, and ensures that habitat for focal species is
maintained.

(2) Providing secure, perpetual funding for management of the
land, monitoring, and legal enforcement.

(j) “Regional conservation assessment” means information and
analyses that document the important species, ecosystems,
ecosystem processes, protected areas, and linkages within an
ecoregion to provide the appropriate context for prioritized
conservation strategies and actions. Those assessments include
information critical to the identification of areas with greatest
probability for long-term ecosystem conservation success
incorporating cobenefits of ecosystem services, such as carbon,
water, and agricultural lands. A regional conservation assessment
may be used to provide context at an ecoregional or subecoregional
scale to assist with the development of a regional conservation

begin delete framework. end delete begin insert investment strategy. end insert

(k) “Regional conservation begin delete framework” end delete begin insert investment strategy” end insert
means information and analyses prepared pursuant to this chapter
to inform conservation actions and habitat enhancement actions
that would advance the conservation of focal species, habitat, and
other natural resources and to provide begin insert nonbinding end insert voluntary
guidance for the identification of wildlife and habitat conservation
priorities, investments in ecological resource conservation,
begin delete infrastructure planning, end delete identification of conservation begin delete priorities
for land use planning, end delete begin insert priorities, end insert or identification of priority
locations for compensatory mitigation for impacts to species and
natural resources. Regional conservation begin delete frameworks end delete begin insert investment
strategies are intended to provide scientific information for the
consideration of public agencies and end insert are voluntary and do not
create, modify, or impose regulatory requirements or standards,
begin delete prescribe or prohibit land uses, end delete begin insert regulate the use of land, end insert establish
land use designations, or affect the land use authority of any public
agency. The preparation and use of regional conservation
begin delete frameworks end delete begin insert investment strategies end insert for this guidance is voluntary.

(l) “Regional level” means the geographic scale of relevant
ecologically defined units such as ecoregions.

(m) “Sensitive species” means any special status species
identified by a state or federal agency.

1852.  

(a) The department may approve a regional conservation
begin delete framework end delete begin insert investment strategy end insert pursuant to this chapter. A regional
conservation begin delete framework end delete begin insert investment strategy end insert may be proposed by
the department or any other public agency, begin insert and shall be developed end insert
in consultation with local agencies that have land use authority
within the geographic begin delete scope end delete begin insert area end insert of the regional conservation

begin delete framework. end delete begin insert investment strategy. end insert

(b) The purpose of a regional conservation begin delete framework end delete
begin insert investment strategy end insert shall be to inform begin insert science-based end insert conservation
actions and habitat enhancement actions that would advance the
conservation of focal species, including the ecological processes,
natural communities, and habitat connectivity upon which those
focal species depend, and to provide begin insert nonbinding end insert voluntary
guidance for one or more of the following:

(1) Identification of wildlife and habitat conservation priorities,
including actions needed to address the impacts of climate change
and other wildlife stressors.

(2) Investments in resource conservation.

begin delete

(3) Infrastructure planning.

end delete begin delete

(4) Identification of conservation priorities for land use planning.

end delete begin insert

(3) Infrastructure.

end insert begin delete

(5)

end delete

begin insert (4) end insert  Identification of priority areas for compensatory mitigation
for impacts to species and natural resources.

(c) A regional conservation begin delete framework end delete begin insert investment strategy end insert shall
include all of the following:

(1) An explanation of the conservation purpose of and need for
the begin delete framework. end delete begin insert strategy. end insert

(2) The geographic area of the begin delete framework end delete begin insert strategy end insert and rationale
for the selection of the area, together with a description of the
surrounding ecoregions and any adjacent protected habitat areas
or linkages that provide relevant context for the development of
the begin delete framework. end delete begin insert strategy. end insert

(3) The focal species included in, and their current known or
estimated status within, the begin delete framework. end delete begin insert strategy. end insert

(4) Important resource conservation elements within the
begin delete framework end delete begin insert strategy end insert area, including, but not limited to, important
ecological resources and processes, natural communities, habitat,
habitat connectivity, and existing protected areas, and an
explanation of the criteria, data, and methods used to identify those
important conservation elements.

(5) A summary of historic, current, and projected future stressors
and pressures in the begin delete framework area end delete begin insert strategy area, including
climate change vulnerability, end insert on the focal species, habitat, and
other natural resources, as identified in the best available scientific
information, including, but not limited to, the State Wildlife Action
Plan.

(6) Major water, transportation and transmission infrastructure
facilities, urban development areas, and begin delete county and city end delete begin insert city,
county, and city and county end insert general plan designations in the
begin delete framework end delete begin insert strategy end insert area.

(7) Conservation goals and measurable objectives for the focal
species and important conservation elements identified in the
begin delete framework end delete begin insert strategy end insert that address or respond to the identified
stressors and pressures on focal species.

(8) Conservation actions, including a description of the general
amounts and types of habitat that, if preserved or restored and
permanently protected, could achieve the conservation goals and
objectives, and a description of how the conservation actions and
habitat enhancement actions were prioritized and selected in
relation to the conservation goals and objectives.

(9)  begin delete An explanation of how the framework end delete begin insert Provisions ensuring
that the strategy end insert is consistent with begin delete or end delete begin insert and end insert complements any begin insert draft
or approved end insert natural community conservation begin delete plan, end delete begin insert plan or end insert federal
habitat conservation begin delete plan, state or federal recovery plan, or other
approved conservation strategy end delete begin insert plan end insert that overlaps with the
begin delete framework end delete begin insert strategy end insert area.

begin insert

(10) An explanation of whether and to what extent the strategy
is consistent with any previously approved strategy or amended
strategy, state or federal recovery plan, or other state or federal
approved conservation strategy that overlaps with the strategy
area.

end insert begin delete

(10)

end delete

begin insert (11) end insert  A summary of mitigation banks and conservation banks
approved by the department or the United States Fish and Wildlife
Service that are located within the begin delete framework end delete begin insert strategy end insert area or
whose service area overlaps with the begin delete framework end delete begin insert strategy end insert area.

begin delete

(11)

end delete

begin insert (12) end insert  A description of how the begin delete framework’s end delete begin insert strategy’s end insert
conservation goals and objectives provide for adaptation
opportunities against the effects of climate change for the
begin delete framework’s end delete begin insert strategy’s end insert focal species.

begin delete

(12)

end delete

begin insert (13) end insert  Incorporation and reliance on, and citation of, the best
available scientific information regarding the begin delete framework end delete begin insert strategy end insert
area and the surrounding ecoregion, including a brief description
of gaps in relevant scientific information, and use of standard or
prevalent vegetation classifications and standard ecoregional
classifications for terrestrial and aquatic data to enable and promote
consistency among regional conservation begin delete frameworks end delete begin insert investment
strategies end insert throughout California.

begin insert

(d) A regional conservation investment strategy shall compile
input and summary priority data in a consistent format that could
be uploaded for interactive use in an Internet Web portal and that
would allow stakeholders to generate queries of regional
conservation values within the strategy area.

end insert begin insert

(e) In addition to considering the potential to advance the
conservation of focal species, regional conservation investment
strategies shall consider all of the following:

end insert begin insert

(1) The conservation benefits of preserving working lands for
agricultural uses.

end insert begin insert

(2) Reasonably foreseeable development of infrastructure
facilities.

end insert begin insert

(3) Reasonably foreseeable projects in the strategy area,
including, but not limited to, affordable housing.

end insert begin insert

(4) Reasonably foreseeable development for the production of
renewable energy.

end insert

1853.  

(a) The department may approve a regional conservation
assessment pursuant to this chapter. A regional conservation
assessment may be proposed by the department or any other public
agency. However, a regional conservation assessment is not
required for department approval of a regional conservation

begin delete framework. end delete begin insert investment strategy. end insert

(b) If a regional conservation assessment that encompasses the
area of a proposed regional conservation begin delete framework end delete begin insert investment
strategy end insert has already been approved by the department, the
begin delete framework end delete begin insert strategy end insert shall explain how begin insert and to what extent end insert it has
incorporated the assessment information and analysis.

(c) A regional conservation assessment shall do all of the
following:

(1) Identify and summarize relevant regional pressures and
stressors, including climate change vulnerability, and conservation
priorities, including priority conservation areas and habitat
connectivity values, included in all of the following:

(A) Conservation plans, such as the State Wildlife Action Plan
and approved natural community conservation plans.

(B) Analyses designed to identify areas of high biological
diversity, such as the Areas of Conservation Emphasis.

(C) Analyses designed to identify areas of high value for habitat
connectivity.

(2) Identify the best available scientific information and
analyses, including geospatial information regarding the
distribution of species and natural communities.

(3) Use spatial analysis to identify ecological relationships
between existing protected areas and priority conservation areas.

(4) Use standard or prevalent vegetation classifications and
standard ecoregional classifications for terrestrial and aquatic data
to enable and promote consistency among regional conservation
assessments throughout California.

(5) Compile input and summary priority data in a consistent
format that could be uploaded for interactive use in an Internet
Web portal and that would allow stakeholders to generate queries
of begin insert regional end insert conservation values within the begin delete framework end delete begin insert strategy end insert
area.

begin insert

(6) Be consistent with draft and approved natural community
conservation plans and regional habitat conservation plans, and
approved recovery plans within the ecoregion or subecoregion
included in the assessment.

end insert

(d) (1) A draft regional conservation assessment may be
submitted to the department with a draft regional conservation
begin delete framework end delete begin insert investment strategy end insert or separately.

(2) If submitted with a draft regional conservation begin delete framework, end delete
begin insert investment strategy, end insert the draft regional conservation assessment
shall be included in the review process set forth in subdivision (c)
of Section 1854.

(3) If submitted separately, the department shall have 30 days
within which to deem the draft regional conservation assessment
complete or to explain in writing to the public agency submitting
the assessment what is needed to complete the assessment. Within
30 days of deeming a draft regional conservation assessment
complete, the department shall make the draft assessment available
to the public on its Internet Web site for review and comment for
a period of at least 30 days, following which the department may
approve the assessment, approve it with amendments, or disapprove
it.

1854.  

(a) The department may prepare or approve a regional
conservation begin delete framework, end delete begin insert investment strategy, end insert or approve begin delete the
framework with amendments, end delete begin insert an amended strategy, end insert for an initial
period of up to 10 years after finding that the begin delete framework end delete begin insert strategy end insert
meets the requirements of Section 1852. The department may
extend the duration of an approved begin insert or amended end insert regional
conservation begin delete framework end delete begin insert investment strategy end insert for additional periods
of up to 10 years after begin insert updating the strategy for new scientific
information and end insert finding that the begin delete framework end delete begin insert strategy end insert continues to
meet the requirements of Section 1852. begin insert For purposes of this
section, an amended strategy means a complete regional
conservation investment strategy prepared by a public agency to
amend substantially and to replace an approved strategy submitted
by the public agency. end insert

(b) It is the intent of this chapter to establish requirements that
provide sufficient flexibility to develop each regional conservation
begin delete framework end delete begin insert investment strategy end insert based on the best available
information regarding the begin delete framework end delete begin insert strategy end insert area.

begin insert

(c) (1) A public agency shall publish notice of its intent to create
a regional conservation investment strategy. This notice shall be
filed with the Governor’s Office of Planning and Research and
the county clerk of each county in which the regional conservation
investment strategy is found in part or in whole. If preparation of
a regional conservation investment strategy was initiated before
January 1, 2017, this notice shall not be required.

end insert begin delete

(c) (1)

end delete

begin insert (2) end insert  After a draft regional conservation begin delete framework end delete begin insert investment
strategy or an amendment to a strategy end insert is submitted to the
department for approval, the department shall have 30 days within
which to deem the draft regional conservation begin delete framework end delete
begin insert investment strategy or an amended strategy end insert complete or to explain
in writing to the public agency submitting the begin delete framework end delete begin insert strategy
or amended strategy end insert what is needed to complete the begin delete framework. end delete
begin insert strategy or amended strategy. end insert Within 30 days of deeming a draft
regional conservation begin delete framework end delete begin insert investment strategy or amended
strategy end insert complete, the department shall make the draft begin delete framework end delete
begin insert strategy or amended strategy end insert available to the public on its Internet
Web site for review and comment for a period of at least 30 begin delete days. end delete

begin insert days and shall notify any public agency, organization, or individual
who has filed a written request to the department for notices
regarding draft regional conservation strategies. end insert

begin delete

(2)

end delete

begin insert (3) end insert  A public agency proposing a begin delete framework end delete begin insert strategy or amended
strategy end insert shall hold a public meeting to allow interested persons
and entities to receive information about the draft regional
conservation begin delete framework end delete begin insert investment strategy or amended strategy end insert
early in the process of preparing it and to have an adequate
opportunity to provide written and oral comments. The public
meeting shall be held at a location within or near the begin delete framework end delete
begin insert strategy end insert area. If preparation of a regional conservation begin delete framework end delete
begin insert investment strategy end insert was initiated before January 1, 2017, and a
public meeting regarding the begin delete framework end delete begin insert strategy or amended
strategy end insert that is consistent with the requirements of this section was
held before January 1, 2017, an additional public meeting shall
not be required. If preparation of a regional conservation
begin delete framework end delete begin insert investment strategy end insert was initiated before January 1,
2017, and a public meeting regarding the begin delete framework end delete begin insert strategy end insert was
not held before January 1, 2017, the public meeting required under
this section may be held after January 1, 2017, if it is held at least
30 days before the begin delete framework end delete begin insert strategy end insert is submitted to the
department for approval.

begin delete

(3)

end delete

begin insert (4) end insert  At least 30 days before holding a public meeting to distribute
information about the development of a draft regional conservation
begin delete framework, end delete begin insert investment strategy or amended strategy, end insert a public
agency proposing a begin delete framework end delete begin insert strategy end insert shall provide notice of a
regional conservation begin delete framework end delete begin insert investment strategy or amended
strategy end insert public meeting as follows:

(A) On the public agency’s Internet Web site and any relevant
LISTSERV.

(B) To each begin delete county or city end delete begin insert city, county, and city and county end insert
within or adjacent to the regional conservation begin delete framework end delete
begin insert investment strategy end insert area.

(C) To each public agency, organization, or individual who has
filed a written request for the begin delete notice. end delete begin insert notice, including any agency,
organization, or individual who has filed a written request to the
department for notices of all regional conservation investment
strategy public meetings. end insert

begin delete

(4)

end delete

begin insert (5) end insert  At least 60 days before submitting a final regional
conservation begin delete framework end delete begin insert investment strategy or amended strategy end insert
to the department for approval, the public agency proposing the
begin delete framework end delete begin insert investment strategy or amended strategy end insert shall notify
the board of supervisors and the city councils in each county within
the geographical scope of the begin delete framework end delete begin insert strategy end insert and provide the
board of supervisors and the city councils with an opportunity to
submit written comments for a period of at least 30 days.

begin delete

(5)

end delete

begin insert (6) end insert  After a final regional conservation begin delete framework end delete begin insert investment
strategy or amended strategy end insert is submitted to the department for
approval, the department shall have 30 days within which to
approve the final regional conservation begin delete framework end delete begin insert investment
strategy or amended strategy end insert or to explain in writing to the public
agency submitting the begin delete framework end delete begin insert strategy or amended strategy end insert
what is needed to approve the begin delete framework. end delete begin insert strategy or amended
strategy. end insert

(d) The department shall make all approved regional
conservation begin delete frameworks, end delete begin insert investment strategies, end insert including all
updates to scientific information and analyses used in a regional
conservation begin delete framework, end delete begin insert investment strategy and any amendments
to the strategy end insert available on its Internet Web site.

(e) The department shall require the use of consistent metrics
that incorporate both the area and quality of habitat and other
natural resources in relation to a regional conservation begin delete framework’s end delete
begin insert investment strategy’s end insert conservation objectives to measure the net
change resulting from the implementation of conservation actions
and habitat enhancement actions.

1855.  

(a) Regional conservation begin delete frameworks end delete begin insert investment
strategies end insert shall not affect the authority or discretion of any public
begin delete agency, except as specifically provided in this chapter. end delete begin insert agency and
shall not be binding upon public agencies other than parties to a
mitigation credit agreement. end insert Nothing in this chapter increases or
decreases the authority or jurisdiction of the department regarding
any land use, species, habitat, area, resource, plan, process, or
corridor. begin insert Regional conservation investment strategies are intended
to provide scientific information for the consideration of public
agencies. Nothing in this chapter requires any public agency, other
than a public agency that is party to a mitigation credit agreement,
to adopt, implement, or otherwise adhere to a regional
conservation investment strategy or a regional conservation
assessment. end insert

(b) The approval or existence of a regional conservation
begin delete framework end delete begin insert investment strategy end insert or mitigation credit agreement
pursuant to this chapter does not do any of the following:

(1) Modify in any way the standards for issuance of incidental
begin insert take end insert permits or begin delete concurrence end delete begin insert consistency end insert determinations pursuant
to Section 2081 or 2080.1, issuance of take authorizations pursuant
to Section 2835, begin delete or end delete the issuance of lake or streambed alteration
agreements pursuant to Section begin delete 1602. end delete begin insert 1602, or any other provision
of this code or regulations adopted pursuant to this code. end insert

(2)  begin delete Establish a presumption end delete begin insert Require a lead agency or
responsible agency to determine that there is substantial evidence end insert
under the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code)
begin delete that the regional conservation framework provides substantial
evidence end delete in connection with any determination of whether a
proposed project may or may not result in significant environmental
effects begin delete and does not end delete begin insert or end insert in any way limit a lead agency’s or
responsible agency’s discretion to determine, based on
project-specific information, whether a proposed project may or
may not result in significant environmental effects.

(3) Prohibit or authorize any project or project impacts.

(4) Create a presumption or guarantee that any proposed project
will be approved or permitted, or that any proposed impact will
be authorized, by any state or local agency.

(5) Create a presumption that any proposed project will be
disapproved or prohibited, or that any proposed impact will be
prohibited, by any state or local agency.

(6) Alter or affect, or create additional requirements for, the
general plan of the city, county, or city and county, in which it is
located.

begin insert

(7) Constitute any of the following, for the purposes of the
California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code):

end insert begin insert

(A) A plan, policy, or regulation adopted for the purpose of
avoiding or mitigating an environmental effect.

end insert begin insert

(B) A local policy or ordinance protecting biological resources.

end insert begin insert

(C) An adopted local, regional, or state habitat conservation
plan.

end insert begin insert

(c) The department shall not reject biologically appropriate
and adequate compensatory mitigation proposed by a project
proponent on the basis that the compensatory mitigation is not a
conservation action or habitat enhancement identified in a regional
conservation investment strategy.

end insert begin delete

(c)

end delete

begin insert (d) end insert  Nothing in this chapter shall require a project proponent
seeking to provide compensatory mitigation pursuant to Section
1602, 2080.1, 2081, or 2835 or the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of
the Public Resources Code) to undertake conservation actions or
habitat enhancement actions identified in a regional conservation
begin delete framework; end delete begin insert investment strategy; end insert implement, contribute to, fund,
or otherwise comply with the actions described in a regional
conservation begin delete framework; end delete begin insert investment strategy; end insert require or otherwise
compel a project proponent to enter into a mitigation credit
agreement; or use or purchase mitigation credits established
pursuant to this chapter to satisfy the compensatory mitigation
requirements. begin insert Nothing in this section shall prevent an applicant
from proposing mitigation consistent with one or more strategies
identified pursuant to this chapter. end insert

begin insert

(e) Mitigation credits provided by this chapter shall not be
utililized to fund or offset the costs of the design, construction, or
mitigation of new Delta conveyance facilities.

end insert

1856.  

(a) A conservation action or habitat enhancement action
that measurably advances the conservation objectives of an
approved regional conservation begin delete framework end delete begin insert investment strategy end insert
may be used to create mitigation credits that can be used to
compensate for impacts to focal species and other species, habitat,
and other natural resources, as provided in this section. The
requirements of this section apply only to the creation of mitigation
credits under mitigation credit agreements pursuant to this section
and do not establish requirements for other forms of compensatory
mitigation.

(b) For a conservation action or habitat enhancement action
identified in a regional conservation begin delete framework end delete begin insert investment strategy end insert
to be used to create mitigation credits pursuant to this section, the
regional conservation begin delete framework end delete begin insert investment strategy end insert shall include,
in addition to the requirements of Section 1852, all of the
following:

(1) An adaptive management and monitoring strategy for
conserved habitat and other conserved natural resources.

(2) A process for updating the scientific information used in the
begin delete framework, end delete begin insert strategy, end insert and for tracking the progress of, and
evaluating the effectiveness of, conservation actions and habitat
enhancement actions identified in the begin delete framework end delete begin insert strategy, end insert in
offsetting identified threats to focal species and in achieving the
begin delete framework’s end delete begin insert strategy’s end insert biological goals and objectives, at least
once every 10 years, until all mitigation credits are used.

(3) Identification of a public or private entity that will be
responsible for the updates and evaluation required pursuant to
paragraph (2).

(c) A mitigation credit created in accordance with this section
may be used to fulfill, in whole or in part, compensatory mitigation
requirements established under any state or federal environmental
law, as determined by the applicable local, state, or federal
regulatory agency, including, but not limited to, the following:

(1) To compensate for take or other adverse impacts of activities
authorized pursuant to Chapter 1.5 (commencing with Section
2050) of Division 3 within the regional conservation begin delete framework end delete
begin insert investment strategy end insert area.

(2) To reduce adverse impacts to fish or wildlife resources, or
both, from activities authorized pursuant to Chapter 6 (commencing
with Section 1600) within the regional conservation begin delete framework end delete
begin insert investment strategy end insert area to less than substantial.

(3) To mitigate significant effects on the environment within
the regional conservation begin delete framework end delete begin insert investment strategy end insert area
pursuant to the California Environmental Quality Act (Division
13 (commencing with Section 21000) of the Public Resources
Code) and Guidelines for Implementation of the California
Environmental Quality Act (Chapter 3 (commencing with Section
15000) of Division 6 of Title 14 of the California Code of
Regulations).

(d) The department shall ensure the long-term durability of a
habitat enhancement action. If a habitat enhancement action is
used to create one or more mitigation credits pursuant to this
section, the habitat enhancement action shall remain in effect at
least until the site of the environmental impact is returned to
preimpact ecological conditions.

(e) To create mitigation credits pursuant to this section, a person
or entity, including a state or local agency, shall enter into a
mitigation credit agreement with the department. The mitigation
credit agreement shall begin delete establish end delete begin insert identify end insert the type and number of
mitigation credits begin insert proposed to be end insert created begin delete by the conservation action
or habitat enhancement action end delete and the terms and conditions under
which the mitigation credits may be used. Mitigation credits shall
not be created on a site that has already been permanently protected
and has been used, or is currently in use, to fulfill compensatory
mitigation requirements for one or more projects. The person or
entity may create and use, sell, or otherwise transfer the mitigation
credits upon department approval that the credits have been created
in accordance with the agreement. To enter into a mitigation credit
agreement with the department, a person or entity shall submit a
draft mitigation credit agreement to the department for its review,
revision, and approval. The department may enter into a mitigation
credit agreement if it determines that the mitigation credit
agreement does all of the following:

(1) Provides contact information for, and establishes the
qualifications of, the person or entity entering into the agreement,
the entity that will manage the site of the conservation action or
habitat enhancement action, and any contractors or consultants.

(2) Fully describes the proposed conservation actions or habitat
enhancement actions and explains how, and to what extent, they
will measurably advance conservation objectives of the regional
conservation begin delete framework end delete begin insert investment strategy end insert that have not yet been
achieved.

(3) Identifies the location of the conservation actions or habitat
enhancement actions, including a location map, address, and size
of the site where the proposed conservation action or habitat
enhancement action will be implemented.

(4) Provides color aerial and ground-level photographs that
reflect current conditions on the site and surrounding properties.

(5) Explains how the mitigation credits will be created,
including, but not limited to, information regarding proposed
ownership arrangements, long-term management strategy, and any
phases of implementation.

(6) Identifies mitigation banks and conservation banks approved
by the department as a mitigation alternative and explains how
available mitigation credits at those banks will be purchased or
used in combination with the mitigation credits created under the
mitigation credit agreement or, if those available mitigation credits
will not be purchased or used, why they will not be purchased or
used.

(7) Includes a natural resources evaluation that documents biotic
and abiotic baseline conditions, including past, current, and
adjacent land uses, vegetation types, species information,
topography, hydrology, and soil types.

(8) Identifies public lands and permanently protected lands in
the vicinity of the conservation actions or habitat enhancement
actions.

(9) Fully describes the proposed type and quantity of mitigation
credits and the supporting rationale. begin insert Mitigation credits created
pursuant to this section shall directly correlate to the focal species
and other species, habitat, and other natural resources protected
by the conservation actions or habitat enhancement actions. end insert

(10) Identifies metrics or indicators by which the proposed
conservation action or habitat enhancement action’s contribution
to achieving the begin delete framework’s end delete begin insert strategy’s end insert conservation goals and
objectives can feasibly be measured with existing technology. The
net ecological gain from the implementation of conservation actions
and habitat enhancement actions that include habitat restoration
shall be reported using consistent metrics that measure the
increment of gain in the area and quality of habitat or other natural
resource values compared to baseline conditions described in the
regional conservation begin delete framework, end delete begin insert investment strategy, end insert and
measures the increment of gain in relation to the regional
conservation begin delete framework’s end delete begin insert investment strategy’s end insert conservation
objectives.

(11) Describes the proposed landownership of the site or sites
of the conservation actions or habitat enhancement actions.

(12) Includes a template conservation easement, or other
instrument providing for perpetual protection of land in a manner
begin delete substantially similar to a conservation easement approved in
advance in writing by the department, end delete begin insert consistent with approved
natural community conservation plans within the area of the
applicable regional conservation investment strategy, end insert for the sites
of any conservation action and an explanation of how the long-term
durability of the sites of any habitat enhancement actions will be
ensured.

(13) Ensures that the implementation of the conservation action
or habitat enhancement action will be adequately funded and that
long-term protection and management of the site will be funded
in accordance with Chapter 4.6 (commencing with Section 65965)
of Division 1 of Title 7 of the Government Code or, if a state
agency proposed to enter into a mitigation credit agreement, other
comparable funding mechanism approved by the begin delete department. end delete

begin insert department in accordance with an adopted statewide policy
regarding funding for long-term management and operations of
mitigation sites. end insert

(14) Includes a template monitoring and long-term adaptive
management plan.

(15) Explains the terms and conditions under which the proposed
mitigation credits may be sold or otherwise transferred and how
the proposed mitigation credits will be accounted for, including
the specific methods proposed for reporting and maintaining a
record of credit creation, release, and use, sale, or transfer.

(16) Includes enforcement provisions.

(17) Ensures that, for each site on which the conservation actions
or habitat enhancement actions will be implemented, begin delete the following end delete
begin insert information consistent with, pursuant to this chapter, the
information required for a mitigation bank in paragraph (2) of
subdivision (b) of Section 1798 and subparagraphs (B) to (H),
inclusive, of paragraph (2) of subdivision (a) of Section 1798.5 end insert
shall be prepared and submitted to the department for review for
adequacy and approval prior to begin delete implementation: end delete begin insert implementation. end insert

begin delete

(A) Site-specific conservation objectives of the conservation
actions or habitat enhancement actions and how they reflect a
measurable advancement of the conservation objectives of the
regional conservation framework.

(B) Preliminary natural resources surveys by a qualified biologist
that document biotic and abiotic baseline conditions, including
past, current, and adjacent land uses, vegetation types, species
information, topography, hydrology, and soil types.

(C) For conservation actions, the conservation easement, or
other instrument providing for perpetual protection of land in a
manner substantially similar to a conservation easement approved
in advance in writing by the department, that will be used to
permanently protect the site, and for habitat enhancement actions,
the instrument that will be used to ensure their long-term durability.

(D) A management plan that includes the short-term and
long-term management actions necessary to ensure that the
conservation actions or habitat enhancement actions achieve their
site-specific conservation objectives.

(E) If mitigation credits are proposed to be created from habitat
enhancement actions or conservation actions that include
restoration of ecological resources, detailed plans, including
as-built designs and ecological performance standards.

(F) A property analysis record or other comparable economic
analysis of the funding necessary to support site-specific
maintenance activities, such as monitoring and reporting, in
perpetuity.

(G) The sources for, and the terms under which, the endowment,
or for state agencies other comparable funding mechanism
approved by the department, for long-term protection, management,
and enforcement will be funded.

(H) A current preliminary report covering the site of the
conservation actions or habitat enhancement actions that identifies
the owner of the fee simple title and shows all liens, easements,
and other encumbrances and depicts all relevant property lines,
easements, dedications, and other features. Copies of
documentation of any encumbrances that may conflict with the
conservation objectives of the proposed conservation actions or
habitat enhancement actions shall be included with the preliminary
title report.

(I) A declaration of whether or not the proposed site has been
or is being used as mitigation, is designated or dedicated for park
or open-space use, or designated for purposes that may be
inconsistent with habitat preservation.

(J) Details of any public funding received for acquisition or
restoration of, or other purposes related to, the proposed site.

(K) A phase I environmental site assessment of the site dated
not more than six months prior to the date of submission to the
department. This assessment shall be performed in accordance
with the ASTM International Standard E1527-05 “Standard
Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process” or any successive ASTM
International standard active at the time of the assessment.

end delete

(18) Includes a proposed credit ledger and credit release
schedule that meets the requirements of subdivision (f).

(f) (1) The release of mitigation credits for use, sale, or transfer
under a mitigation credit agreement shall require the department’s
approval in accordance with this subdivision.

(2) The release of mitigation credits shall be tied to
performance-based milestones and achievement of ecological
performance standards. The credit release schedule for each
mitigation credit agreement shall reserve a substantial share of the
total credits for release after those ecological performance standards
are fully achieved. Performance-based milestones begin delete may end delete begin insert shall end insert
include, but are not be limited to, the following:

(A) Recording a conservation easement begin delete or establishing perpetual
protection in a manner substantially similar to a conservation
easement and approved in advance in writing by the department end delete
begin insert consistent with approved natural community conservation plans
within the area of the applicable regional conservation investment
strategy end insert on the site of a conservation action, or putting into place
measures that ensure the long-term durability of a habitat
enhancement action in accordance with subdivision (d).

(B) Completing construction of a habitat restoration action.

(C) Achieving temporal ecological performance standards for
habitat restoration, such as standards established for one year, three
years, or five years following the initiation of habitat restoration.

(D) Fully achieving ecological performance standards.

(3) The terms of the credit release schedule shall be specified
in the mitigation credit agreement. When conservation actions and
habitat enhancement actions are implemented and meet the
performance-based milestones specified in the credit release
schedule, credits shall be created in accordance with the credit
release schedule. If a conservation action or habitat enhancement
action does not meet performance-based milestones, the department
may suspend the release of credits, reduce the number of credits,
or otherwise modify the credit release schedule accordingly.

(4) In order for mitigation credits to be released, the person or
entity that has entered into a mitigation credit agreement shall
demonstrate to the department that the appropriate
performance-based milestones for credit release have been met.
The department shall determine whether the milestones have been
met and the credits may be released.

(g) (1) Mitigation credit agreements may be used to establish
the terms and conditions under which mitigation credits can be
created by projects that improve wildlife habitat, or that address
stressors to wildlife, to an extent that quantifiably exceeds
compensatory mitigation requirements established by the
department for those projects pursuant to Chapter 6 (commencing
with Section 1600) or Chapter 1.5 (commencing with Section
2050) of Division 3. Those projects may include, but are not limited
to, the construction of setback levees that result in the creation of
more floodplain or riparian habitat than is required to compensate
for construction impacts or the construction of transportation
facility improvements that remove barriers to fish or wildlife
movement and thereby improve the quality of habitat or address
stressors to wildlife to a greater extent than is required to
compensate for construction impacts. For those projects, the project
proponent may submit a draft mitigation credit agreement that
proposes the terms and conditions under which mitigation credits
may be created and used by or in conjunction with those projects
to the department for its review, revision, and approval. The
submission may occur concurrently with, or after, an application
submitted pursuant to Chapter 1.5 (commencing with Section
2050) of Division 3 or a notice submitted pursuant to Chapter 6
(commencing with Section 1600) or may occur after the application
or notice is submitted. Where a draft mitigation agreement is
submitted concurrently with the application or notice, the
department shall review the draft mitigation credit agreement
concurrently with its review of the application or notice and shall,
to the maximum extent practicable, complete its review of both
the notice or application and the draft agreement concurrently.

(2) Mitigation credit agreements submitted to the department
pursuant to this subdivision may comply with the requirements of
subdivision (f) with a credit release schedule related to construction
of the project that will improve wildlife habitat, or will address
stressors to wildlife, to an extent that exceeds compensatory
mitigation requirements quantifiably. For those projects,
construction of the project may be a performance-based milestone
required by paragraph (2) of subdivision (f).

(h) Nothing in this chapter is intended to limit or impose
additional conditions on the creation or sale of mitigation credits
by a conservation bank or mitigation bank approved by the
department pursuant to Chapter 7.9 (commencing with Section
1797).

(i) The creation of mitigation credits pursuant to this section
from a conservation action or habitat enhancement action
implemented within the plan area of an approved natural
community conservation plan shall not duplicate or replace
mitigation requirements set forth in the natural community
conservation plan and shall require the advance written approval
of the plan’s implementing entity. Mitigation credits created
pursuant to this section may be used for covered activities under
an approved natural community conservation plan only in
accordance with the requirements of the plan. begin insert Individuals and
entities eligible for coverage as a participating special entity under
an approved natural community conservation plan may use
mitigation credits created pursuant to this section only if the plan’s
implementing entity declines to extend coverage to the covered
activity proposed by the eligible individual or entity. end insert

(j) The department shall make project mitigation credit and
release information publicly available on the department’s Internet
Web site.

1857.  

The department begin delete may end delete begin insert shall end insert collect fees begin insert or other
compensation end insert from a person or entity that proposes to enter into
a mitigation credit agreement, and from a public agency that
proposes a regional conservation begin delete framework end delete begin insert investment strategy end insert
or a regional conservation assessment, to pay for all or a portion
of the department’s costs relating to the mitigation credit
agreement, proposed begin delete framework, end delete begin insert strategy, end insert or proposed assessment.

1858.  

The department may adopt guidelines and criteria to aid
in the implementation of this chapter. Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code does not apply to the development, adoption,
or amendment of guidelines or criteria pursuant to this section.
These guidelines and criteria shall be posted on the department’s
Internet Web site.

1859.  

(a) The department shall submit a report to the
Legislature on or before January 1, 2020, regarding the
implementation of this chapter.

(b) The report required to be submitted pursuant to subdivision
(a) shall be submitted in compliance with Section 9795 of the
Government Code.

begin insert

begin insert 1860. end insert   

The department may partner with California
Infrastructure and Economic Development Bank to finance the
development of advance mitigation credits if needed.

end insert begin insert

begin insert 1861. end insert   

Nothing in this chapter supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000) of the Water Code)
or Division 22.3 (commencing with Section 32300) of the Public
Resources Code.

end insert

begin delete 1860. end delete

begin insert 1862. end insert   

The department begin insert shall approve no more than 15 regional
conservation investment strategies before January 1, 2020. The
department end insert shall not approve a regional conservation begin delete framework end delete
begin insert investment strategy end insert or regional conservation assessment pursuant
to this chapter on or after January 1, 2020, and shall not enter into
a mitigation credit agreement pursuant to this chapter on or after
January 1, 2020.