BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1334
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Byron D. Sher, Chairman
                              2003-2004 Regular Session
                                           
           BILL NO:    SB 1334
           AUTHOR:     Kuehl
           AMENDED:    March 31, 2004
           FISCAL:     Yes               HEARING DATE:     April 19, 2004
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :       CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  , under the California Environmental Quality Act  
           (CEQA), requires lead agencies with the principal  
           responsibility for carrying out or approving a proposed  
           project to prepare a negative declaration, mitigated  
           declaration, or environmental impact report (EIR) for this  
           action, unless the project is exempt from CEQA.  CEQA includes  
           various statutory exemptions, as well as categorical  
           exemptions in the CEQA guidelines.  CEQA also clarifies that  
           certain types of projects are subject to the act (  e.g.  , Napa  
           Valley rail service, certain higher education facilities).

            This bill  :

           1) Under CEQA:

              a)    Specifies that CEQA applies to timberland conversions  
                 and oak woodland conversions, but does not apply to oak  
                 woodland conversions under the Conversion of Oak  
                 Woodlands Law (#2 below).

              b)    Requires the State Board of Forestry and Fire  
                 Protection to adopt regulations by January 1, 2006, to  
                 implement above requirement.

              c)    Requires an alternative to mitigating the conversion  
                 of timberland to include a monetary contribution to the  
                 California Forest Legacy Program, if certain conditions  
                 are met (  e.g.  , mitigation includes at least the same  
                 amount of acreage as proposed for conversion, landowner  









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                 provides appraisal funds).

              d)    Requires a county, in a provision of its oak  
                 woodlands management plan or by ordinance, to require  
                 mitigation as specified (  e.g.  , monetary contribution to  
                 Oak Woodlands Conservation Fund, planting replacement  
                 trees, onsite mitigation, offsite mitigation).  Certain  
                 state entities are authorized to establish a mitigation  
                 bank that may be used to fulfill the offsite mitigation  
                 requirements.

              e)    Authorizes a county to charge a fee to cover  
                 administrative, monitoring, and mitigation enforcement  
                 costs.


              f)    Authorizes the oak woodlands management plan or  
                 ordinance to exempt certain activities (  e.g.  , conversion  
                 of less than three acres, harvesting of fuelwood for  
                 noncommercial use by the landowner, removal of dead and  
                 diseased trees posing risks).

              g)    Defines certain terms (  e.g.  , conversion, oak, oak  
                 woodlands).

              h)    Provides that the above requirements cannot prohibit  
                 a county from adopting a plan or ordinance that is more  
                 protective of oak trees or oak woodlands. 

           2) Enacts the Conversion of Oak Woodlands Law that:

              a)    Requires conversion of oak woodlands from an  
                 agricultural use to another use to meet certain  
                 requirements under CEQA added by the bill (#1 d above),  
                 regardless of whether an oak woodlands management plan  
                 or local ordinance has been adopted.

              b)    Requires a landowner or project proponent to give  
                 notice of a proposed agricultural oak woodlands  
                 conversion to the county agricultural commissioner.

              c)    Requires the commissioner to provide notice of the  
                 conversion and make a finding that the mitigation  









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                 alternative under CEQA has been implemented.

              d)    Authorizes the commissioner to require a licensed  
                 arborist or registered forester to oversee mitigation.

              e)    Requires the commissioner to provide a biennial  
                 report commencing January 1, 2006, regarding oak  
                 woodlands conversions.

              f)    Provides fee authority for the commissioner's  
                 administrative costs.

              g)    Provides related legislative intent.

              h)    Authorizes the Secretary of the Resources Agency to  
                 revoke the applicability of the Law to a county that  
                 does not adequately supervise or mitigate oak woodlands  
                 conversions.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "The conversion  
              of oak woodlands and timberlands in California into  
              residential ranchettes and intensive agriculture has  
              created an unprecedented threat to California's signature  
              landscapes.  More than one million acres of California's  
              oak woodlands have been lost since 1950 along with nearly  
              90 percent of riparian woodland statewide.  Other threats  
              to oak woodlands include the fragmentation of large ranches  
              into small exurban lots.  For example, in Nevada County,  
              the median size of landholdings in 1957 was 550 acres, and  
              by 2001 had been reduced to just 9 acres.  The  
              fragmentation leads to an increase in roads, invasion of  
              exotic plant and animal species, and fencing, all of which  
              causes harm to indigenous wildlife.  Vinyard expansion in  
              coastal counties and some areas of the Sierra foothills  
              also seriously contributes to the loss of oak woodlands."

           The author notes that CEQA "is supposed to require mitigation  
              for the loss of oak woodlands.  However, local governments  
              often fail to enforce this aspect of CEQA.  Local  
              ordinances dealing with oak woodlands are often voluntary.   
              In reality, there is no effective mechanism in existing law  









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              to mitigate for the loss of oak woodlands."

           According to the author, in response to the above concerns,  
              "Rather than create a new mandate for state agencies to  
              enforce CEQA, this bill provides a menu of options for  
              landowners to mitigate for projects that affect oak  
              woodlands.  The bill will be administered at the county  
              level.  It does not prohibit any projects."  The author  
              notes the options available under the bill, the numerous  
              exemptions, and indicates that "Agricultural conversions  
              will be handled separately, by the county agricultural  
              commissioner or another local official.  Lands within city  
              boundaries are also exempted.  Counties with strong oak  
              woodland ordinances may be exempted from the bill upon  
              certification by the Secretary of Resources."

            2) Brief background on CEQA  .  CEQA provides a process for  
              evaluating the environmental effects of a project, and  
              includes statutory exemptions, as well as categorical  
              exemptions in the CEQA guidelines.  If a project is not  
              exempt from CEQA, an initial study is prepared to determine  
              whether a project may have a significant effect on the  
              environment.  If the initial study shows that there would  
              not be a significant effect on the environment, the lead  
              agency must prepare a negative declaration.  If the initial  
              study shows that the project may have a significant effect  
              on the environment, the lead agency must prepare an EIR.

           Generally, an EIR must accurately describe the proposed  
              project, identify and analyze each significant  
              environmental impact expected to result from the proposed  
              project, identify mitigation measures to reduce those  
              impacts to the extent feasible, and evaluate a range of  
              reasonable alternatives to the proposed project.  Prior to  
              approving any project that has received environmental  
              review, an agency must make certain findings.  If  
              mitigation measures are required or incorporated into a  
              project, the agency must adopt a reporting or monitoring  
              program to ensure compliance with those measures.

           If a mitigation measure would cause one or more significant  
              effects in addition to those that would be caused by the  
              proposed project, the effects of the mitigation measure  









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              must be discussed but in less detail than the significant  
              effects of the proposed project.

            3) Seeking to provide guidance  .  Current law allows a state  
              agency regulatory program plan or other documentation  
              containing certain information to be submitted in lieu of  
              an environmental impact report (EIR) if the program has  
              been certified by the Secretary of the Resources Agency  
              (commonly referred to as a "functional equivalent").  The  
              CEQA guidelines provide that a timber harvesting plan is a  
              discretionary action under the Z'berg-Nejedly Forest  
              Practice Act of 1973 (CEQA guidelines 15357), and  
              specifies that regulation of timber harvesting operations  
              is a functional equivalent program (CEQA guidelines  
              15251(a)).  For a timber conversion, all timber must be  
              cut in accordance with an approved conversion pursuant to a  
              timber harvesting plan, with the exception of certain  
              requirements (Public Resources Code 4622).  Therefore, a  
              conversion should currently be addressed through the  
              functional equivalent program.  SB 1334, however, specifies  
              that a timberland conversion is subject to CEQA and  
              provides certain procedures for mitigating the effects of a  
              timberland conversion.  This bill also sets procedures for  
              mitigating oak woodland conversions.

            4) Clarification needed  .  SB 1334 enacts the Conversion of Oak  
              Woodlands Law (COWL), which sets requirements for  
              conversion of oak woodlands from an agricultural use to  
              another agricultural use, and adds requirements under CEQA  
              relating to the conversion of oak woodlands and timberland.

           Clarification is needed in the above provisions.  For example,  
              a) COWL requires compliance with one of the new mitigation  
              requirements under CEQA (Public Resources Code 4811),  
              (assuming "of Section 21083.4" on page 3, lines 5 and 6,  
              should not be stricken) but 21083.4(a) prohibits CEQA from  
              applying to COWL; b) 21083.4(d)(3) provides for  
              contributions to the Oak Woodlands Conservation Fund, while  
              the Oak Woodlands Conservation Act prohibits grants from  
              the fund to be used for acquiring land to mitigate project  
              impacts (Fish and Game Code 1366(b)); c) 21083.4(d)(4)  
              authorizes a mitigation alternative of planting replacement  
              trees on up to 10 acres, while 21083.4(d)(5) requires  









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              mitigation options to "double in acreage the land  
              converted"; d) 21083.4(d)(5) allows counties to reduce the  
              required mitigation acreage for "superior quality  
              mitigation lands" but this term is undefined and there is  
              no guidance on the reduced amount; e) 21083.4(d)(5) allows  
              a equal amount of mitigation land in certain areas with  
              undefined terms or cross references (  e.g.  , urban reserve  
              line, urban services line); f) 21083.4(d)(9) allows  
              exemptions for certain purposes (  e.g.  , harvesting of  
              fuelwood by the landowner, projects within oak woodlands  
              with no oak trees greater than five inches in diameter),  
              but sets no acreage limits for the exemptions; and g)  
              allows stricter local ordinances under CEQA  
              (21083.4(d)(10)), but not under COWL.

           If the committee believes that procedures should be specified  
              for mitigating the conversion of oak woodlands, then terms,  
              mitigation alternatives, and exemptions in SB 1334 should  
              be clarified, and it may be appropriate for the bill to  
              focus on oak woodlands conversions.

            5) Support and opposition concerns  .  Supporters generally note  
              the value of the state's oak woodlands (  e.g.  , support  
              thousands of plants and animals, watershed functions,  
              scenery that supports tourist industry), problems  
              associated with the conversion of oak woodlands, and the  
              importance of mitigating conversion impacts and  
              establishing appropriate mitigation options.

           Opponents assert that SB 1334 expands CEQA for oak and timber  
              conversions, requires the Board of Forestry and Fire  
              Protection to develop duplicative regulations for  
              timberland, requires up to two-to-one mitigation, creates a  
              quasi-CEQA process for converting oak woodlands on  
              agricultural lands, and conflicts with the Oak Woodlands  
              Conservation Act of 2001.

            SOURCE  :        Senator Kuehl  

           SUPPORT  :       California Oak Foundation, Defenders of  
                          Wildlife, Endangered Habitats League, Natural  
                          Resources Defense Counsel, Planning and  
                          Conservation League, Sierra Club California  









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           OPPOSITION  :    Agricultural Council of California, Association  
                          of California Water Agencies, California  
                          Agricultural Commissioners and Sealers  
                          Association, California Association of  
                          Realtors, California Association of Winegrape  
                          Growers, California Building Industry  
                          Association, California Business Properties  
                          Association, California Cattlemen's  
                          Association, California Chamber of Commerce,  
                          California Farm Bureau Federation, California  
                          Forestry Association, California Grain and Feed  
                          Association, California Manufacturers and  
                          Technology Association, California Association  
                          of Counties, California Wool Growers  
                          Association, Consulting Engineers and Land  
                          Surveyors of California, Family Winemakers of  
                          California, Forest Landowners of California,  
                          Kern County Water Agency, Lumber Association of  
                          California and Nevada, Regional Council of  
                          Rural Counties, Resource Landowners, Coalition,  
                          Transportation Corridor Agencies of Orange  
                          County, Tulare County Farm Bureau, Wine  
                          Institute