BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1020| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1020 Author: Wieckowski (D) Amended: 4/19/16 Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 4/12/16 AYES: Pavley, Stone, Allen, Hertzberg, Hueso, Jackson, Monning, Vidak, Wolk SUBJECT: Land use: mitigation lands SOURCE: Author DIGEST: This bill creates a way for the East Bay Regional Parks District to fulfill its natural resources mitigation responsibilities through the possession of budget reserves combined with compliance with other specified factors and without creating a permanent endowment which would otherwise be required. ANALYSIS: Existing law: 1)Authorizes an agency required to mitigate its environmental impacts to pay for that mitigation in several ways including transferring an interest in land to a third party, providing funds to third parties to acquire land or easements or to undertake the mitigation, or to create an endowment under specified terms. (Government Code Section 65967) 2)Specifies, for mitigation that will not be completed prior to SB 1020 Page 2 the start of activities that will affect wildlife species listed under the California endangered species act, the Department of Fish and Wildlife (DFW) requires that a trust account or other form of approved security document is established to ensure that funding is available to carry out mitigation and monitoring measures in the event the applicant fails to complete these activities. DFW generally requires that the performance security be in the form of an irrevocable letter of credit, surety bond, a bank trust or escrow account, or another form of security approved in writing in advance. This bill: 1)Contains numerous findings regarding the East Bay Regional Park District. 2)States the intent of the Legislature that the DFW, as part of its mitigation and endowment practices, should not unnecessarily obligate public resources of the district that are otherwise performed as part of its ongoing responsibilities and operations. 3)Is specific to the East Bay Regional Parks District (and other regional park entities created pursuant to Section 5500 of the Public Resources Code) and allows it, as an alternative to an endowment, to satisfy its mitigation obligations by possession of budget reserves in excess of funds required to do all of the following: a) Meet mitigation obligations. b) Retain permanent stewardship and maintenance staff to manage the resource. c) Maintain mitigation obligations consistent with permit requirements. d) Ensure that if the mitigations are not maintained the state will not incur any financial liabilities from the lack of mitigation. Comments This bill continues to be a work in progress that will involve future discussions with the opposition and DFW. SB 1020 Page 3 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified4/19/16) East Bay Regional Parks District John Muir Land Trust Save Mount Diablo OPPOSITION: (Verified4/19/16) California Council of Land Trusts Center for Natural Lands Management Defenders of Wildlife Sequoia Riverlands Trust Sierra Foothill Conservancy The Nature Conservancy Wildlife Heritage Foundation ARGUMENTS IN SUPPORT: According to the author, East Bay Regional Parks District has an 80-year history of responsible fiscal and environmental governance and is organized to serve a steward of parklands in perpetuity. In his view, it is unreasonable to require districts to set aside mitigation funds which could be better used for staffing to actually manage protected land. He believes that the district should be able to rely on proven asset liquidity as an alternative form of mitigation. Save Mount Diablo works closely with the district and stated that any concern about changing the provisions in this law should not apply to the district because of its record, funding, staff, and experience that can't be matched by any other public agency. ARGUMENTS IN OPPOSITION: A coalition of land trusts and other conservation groups, including the California Council of Land Trusts (CCLT), is in opposition. CCLT and others have built California's endowment procedures in a series of 5 bills over the past several years that it considers to be the nation's SB 1020 Page 4 premier law regarding how mitigation endowments are held and managed. The coalition is very concerned that the exception for East Bay Regional Parks inevitably opens the door to a myriad of exceptions for every agency not wishing to meet mitigation endowment requirements-a policy it states has been rejected on three previous occasions in both houses of the California Legislature. The coalition points out that other funding mechanisms are specifically allowed in existing law (such as performance bonds) for the long-term stewardship of the mitigation property. It considers SB 1020 as "jumping completely past other funding mechanisms to completely exempt selected public parties from any form of dedicated financial assurance for mitigation lands." Prepared by:William Craven / N.R. & W. / (916) 651-4116 5/4/16 16:19:10 **** END ****