BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2087 (Levine) - Regional conservation frameworks
          
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          |Version: June 22, 2016          |Policy Vote: N.R. & W. 6 - 2    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Narisha Bonakdar    |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 2087 authorizes the California Department of Fish  
          and Wildlife (CDFW) to approve Regional Conservation Frameworks  
          (RCF) to guide conservation of natural resources and  
          infrastructure planning. 


          Fiscal  
          Impact:  

           Approximately $675,000 in year one, and $987,000 annually  
            (special fund) to develop RCF guidelines and administer the  
            program, some or all of which may be recovered through fees.
           Unknown, potentially significant savings to state agencies  
            using the RCF framework for conservation efforts,  
            infrastructure planning, or mitigation.


        Background:1)  CDFW has jurisdiction over the conservation, protection, and  
          management of fish and wildlife, native plants, and habitat  
          necessary for biologically sustainable populations of those  







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          species.  The California Endangered Species Act prohibits the  
          taking of an endangered or threatened species, except as  
          specified. The CDFW may permit the take of listed species if the  
          take is incidental to an otherwise lawful activity and the  
          impacts are minimized and fully mitigated.
          In 2015, AB 498 (Levine, Chapter 625, Statutes of 2015)  
          established a state policy to encourage voluntary actions to  
          protect wildlife corridors and habitat strongholds.  Among other  
          findings, the bill recognized the importance of habitat  
          connectivity to protect ecosystem health and biodiversity, and  
          to improve the resiliency of wildlife and their habitats to  
          climate change. 

          Some state programs, such as the Natural Communities  
          Conservation Program (NCCP), are designed to provide  
          comprehensive regional conservation plans.  However, NCCPs are  
          regulatory in nature and often take multiple years to prepare,  
          which can discourage participation in the program. The  
          frameworks established by this bill are intended to provide a  
          less rigorous, voluntary alternative to the NCCP that can serve  
          as a foundation for future actions, including the development of  
          more comprehensive plans such as an NCCP. 

          RCF Pilots. In early 2016, a new statewide conservation  
          initiative was launched to develop an RCF intended to fill the  
          gap in existing conservation planning statutes, and provide for  
          a more timely and cost-effective conservation planning process.   
          According to the sponsor, each pilot project was selected  
          because it demonstrates a different application of the RCF. In  
          each case, there is strong NGO and public agency involvement.  
          The current RCF pilots (below) will be ready for review in  
          Fiscal Year 2016-2017 with the first draft mitigation agreements  
          potentially submitted to by mid-2017. 

           Yolo County: Building on Yolo Habitat Conservancy's Local  
            Conservation Plan, this pilot RCF will serve as a complement  
            to the Yolo County NCCP/HCP and provide important guidance for  
            a high priority multi-agency flood control and habitat  
            restoration effort in the Yolo Bypass.  If approved, this  
            project will be led by the Yolo Habitat Conservancy and have a  
            steering committee including the California Natural Resources  
            Agency, Yolo County, and others.

           Antelope Valley:  Builds on the work of the Desert Renewable  








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            Energy Conservation Plan to facilitate siting and advance  
            mitigation for renewable energy facilities and transportation  
            projects, focusing on the Los Angeles County portion of the  
            Antelope Valley.  This pilot has been convened by the Desert  
            and Mountains Conservation Authority and is guided by a  
            steering committee including Los Angeles County's Department  
            of Regional Planning and others.

           Bay Area RAMP Pilot:  In the Bay Area, a nine-county Regional  
            Conservation Assessment and two RCFs were launched earlier  
            this year, building on a commitment from the Metropolitan  
            Transportation Commission (MTC) and State Coastal Conservancy  
            (SCC) to scope and implement a Regional Advance Mitigation  
            Plan for ultimate inclusion in MTC's Plan Bay Area 2040. The  
            Santa Clara County RCF is being led by the Santa Clara Valley  
            Open Space Authority in coordination with Valley  
            Transportation Authority.  The East Bay RCF is being led by  
            The Nature Conservancy in conjunction with Caltrans and Contra  
            Costa Transportation Authority.  The RCA and two RCFs will  
            facilitate advance mitigation for transportation projects. 


          Proposed Law:  
            This bill authorizes the CDFW to approve a regional  
          conservation framework, as specified, to enhance the long-term  
          viability of native species, habitat, and other natural  
          resources; to inform infrastructure planning; and to allow for  
          the creation of mitigation credits in certain circumstances.   
          Specifically, the bill:

          1)Outlines numerous required components of an RCF.  Among other  
            things, the RCF must include: (1) important habitat, and other  
            resource conservation elements within the framework area, and  
            an explanation of the criteria used to identify those  
            elements; (2) an explanation of the conservation purpose of  
            and need for the RCF; (3) a description of the prioritization  
            of the conservation actions and habitat enhancements  
            (enhancements); and (4) a description of how the framework's  
            conservation goals and objectives aid in climate adaptation.



          2)Authorizes the CDFW to approve an RCF for an initial period of  
            up to 10 years, and allows for an additional 10 year  








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            extension.



          3)Allows an enhancement that measurably advances the  
            conservation objectives of an approved RCF to be used to  
            create mitigation credits, and outlines additional  
            requirements to use enhancements for mitigation credit, the  
            potential uses of the credits, and the process through which  
            these can be approved. 


          4)Authorizes the CDFW to collect a fee to offset costs relating  
            to the mitigation credit agreement or proposed RCF.



          5)Authorizes the CDFW to adopt guidelines and criteria, and  
            requires that any guidelines and criteria are posted on its  
            website.





          6)Outlines public notice and meeting requirements, stakeholder  
            feedback processes, and approval procedures, and requires CDFW  
            to post RCFs and other specified information on its website.



          7)Makes findings and declarations regarding the benefits of  
            regional species and habitat conservation initiatives, and  
            states the intent to promote the voluntary conservation of  
            natural resources.


            


          8)States that RCFs do not affect the authority or discretion of  
            any public agency, except as specified.










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          9)Defines several terms for the purposes of the bill.

          
          Past/Related Legislation:


          AB 1833 (Linder, 2016) creates an Advanced Mitigation Program in  
          the Department of Transportation (CalTrans) to implement  
          environmental mitigation measures in advance of future  
          transportation projects. The purpose of the program is to  
          accelerate project delivery and improve environmental outcomes  
          of environmental mitigation for transportation infrastructure  
          projects.  AB 1833 was held in Assembly Appropriations  
          Committee.


          SB 901 (Bates,2016), similar to AB 1833, creates an Advanced  
          Mitigation Program in CalTrans to implement environmental  
          mitigation measures in advance of future transportation  
          projects, and  would require CalTrans to set aside certain  
          amounts of future appropriations for this purpose.  Both bills  
          would also require CalTrans to establish an interagency  
          transportation advanced mitigation steering committee.  SB 901  
          was set for hearing in the Senate Transportation and Housing  
          Committee, but was postponed.


          AB 1321 (Eng, 2010) proposed to enact the Advance Infrastructure  
          Mitigation Program Act, which would have authorized the Natural  
          Resources Agency to adopt regional advance mitigation plans to  
          provide effective mitigation and conservation of natural  
          resources and natural processes on a landscape, regional, or  
          statewide scale, to expedite the environmental review of planned  
          infrastructure projects, and to facilitate the implementation of  
          measures to mitigate the impacts of those projects by  
          identifying and implementing mitigation measures in advance of  
          project approval.  AB 1321 was held in the Assembly  
          Appropriations Committee.  AB 2655 (Eng) of that same year would  
          also have enacted similar provisions and was also held in  
          Assembly Appropriations.









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          Staff  
          Comments:  
          Purpose. According to the author, regional conservation  
          frameworks are voluntary, non-regulatory tools to incentivize  
          pro-active conservation planning in advance of development  
          pressures.  This bill establishes common standards for regional  
          conservation planning to guide investments by state, federal,  
          local land private entities. 


          Fiscal notes. According to CDFW, this bill would require six  
          additional staff during the first two years of implementation,  
          and will likely increase in the following years. Initially,  
          staff would coordinate with stakeholders and other regulatory  
          agencies, develop standards and guidelines, and develop  
          information technology infrastructure.  Once ramped up, program  
          staff will provide technical assistance to applicants, review  
          and approve RCF applications, and negotiate the mitigation  
          agreements authorized under this bill.  The CDFW anticipates  
          five RCF applications will be submitted each year, along with 10  
          mitigation agreements. 

          Given the regional nature of this program, CDFW will need staff  
          in each of its regional offices throughout the state to conduct  
          the technical review of the RCF, and the associated draft  
          mitigation agreements. 

          Staff notes that this bill will result in a significant cost to  
          the CDFW to develop RCF guidelines, to review and approve  
          regional applications, and to negotiate mitigation credits.  The  
          bill authorizes CDFW to collect fees to offset all or a portion  
          of costs related to the proposed framework or mitigation credit  
          agreement. It is unclear whether the CDFW will be able to set  
          fees at a level necessary to recover fees without discouraging  
          participation.  Staff notes that the Fish and Game Preservation  
          Fund is in a structural deficit. This bill may result in  
          additional pressure on the fund to the extent that the CDFW has  
          to absorb implementation costs.

          Staff also notes potential savings or efficiencies created by  
          RCFs for state entities that capitalize on the RCF for  
          conservation efforts, infrastructure planning, or mitigation  
          requirements.  In particular, agencies developing large  








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          infrastructure projects, such as high Speed Rail and the  
          California Department of Transportation may experience reduced  
          mitigation costs or complexity due to the advance mitigation  
          allowed under this bill. 



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