BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 135
                                                                  Page 1

          Date of Hearing:  April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                    AB 135 (Jeffries) - As Amended:  April 1, 2009
           
          SUBJECT  :  Forest resources:  urban forestry:  cost-sharing.

           SUMMARY  :  Authorizes the California Department of Forestry and  
          Fire Protection (CDF) to waive landowner cost share requirements  
          for specified grant or loan programs when the funding source  
          prohibits cost share requirements.

           EXISTING LAW  :

          1)Creates the California Forest Improvement Program (CFIP)  
            (Chapter 1181, Statutes of 1978), which authorizes CDF to  
            provide technical and financial assistance to small forest  
            landowners for a wide range of forest management activities,  
            including preparation of management plans, reforestation,  
            timber stand improvement, forest land conservation, and fish  
            and wildlife habitat improvement.   Landowners are required to  
            provide at least a 10 percent cost share for grants.

          2)Pursuant to the California Urban Forestry Act of 1978 (Chapter  
            1181, Statutes of 1978), authorizes CDF to implement an urban  
            forestry program to encourage tree planting and management in  
            urban areas, to assist local governments in solving problems  
            such as tree maintenance and vandalism, to encourage  
            demonstration projects to maximize the benefits of urban  
            forests, and to prevent the introduction and spread of  
            diseases such as Dutch elm disease and pine pitch canker.   
            With the exception of grants to projects in "disadvantaged and  
            severely disadvantaged" communities, grantees must provide at  
            least a 10 percent cost share.

           THIS BILL  :  Authorizes CDF to waive cost share requirements for  
          the CFIP and the urban forestry program when the funding source  
          for a grant prohibits cost share requirements.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The American Recovery and Reinvestment Act (ARRA) of  
          2009 provides $500 million to the U.S. Forest Service (USFS) for  
          "Wildland Fire Management" activities, $250 million of which  








                                                                  AB 135
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          must be spend for hazardous fuels reduction, forest health  
          protection, rehabilitation and hazard mitigation activities on  
          federal lands.  The remaining $250 million is allocated for  
          similar activities, including ecosystem improvement, on state  
          and private lands.  Of the total amount, $50 million is  
          available for "wood-to-energy" grants to promote increased use  
          of biomass from federal, state, and private lands.  Grants of  
          any of these funds for state or private lands cannot be subject  
          to matching or cost share requirements.

           1)CDF's "shovel-ready" programs  

          CDF believes the CFIP, urban forestry, and fuels reduction  
          programs are well situated to pass-through federal stimulus  
          funding.  CFIP provides technical and financial incentives to  
          nonindustrial forest landowners for the development of  
          management plans and activities such as site preparation, tree  
          planting, thinning, and pruning, land conservation, and  
          improvement of fish and wildlife habitat.  The intent of CFIP is  
          to ensure that investments in timber stand improvement funded by  
          CFIP will yield future marketable forest products and/or  
          improved natural resources.  CDF's urban forestry program offers  
          over $3 million a year in matching grants to local governments,  
          schools, and nonprofit organizations for tree planting,  
          education, and the development of tree inventories and  
          management plans.  Two vegetation or fuels management programs  
          are currently administered by CDF:  government agencies or  
          nonprofit organizations in 15 counties located in the Sierra  
          Nevada may qualify for Proposition 40 (2002) grant funding; the  
          Vegetation Management Program (VMP) is a cost-share program that  
          uses prescribed fires and other mechanical means to reduce  
          wildland fire hazards on State Responsibility Area lands.

          At the request of the USFS, CDF has submitted a list of eligible  
          projects totaling $176 million.  This bill seeks to address the  
          ARRA's cost-share prohibition by authorizing CDF to waive such  
          requirements for the CFIP and urban forestry program.

           2)Proposed Amendments  

          Existing law requires CDF to deposit any CFIP funds in the  
          Forest Resources Improvement Fund (Fund).  In 2006, the  
          Legislature amended section 4799.13(a) of the Public Resources  
          Code as a part of the budget to restrict the use of moneys  
          deposited in the Fund to the management of state forests.  In  








                                                                  AB 135
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          order to funnel federal stimulus monies to lands other than  
          state forests, the bill should be amended as follows:

               4799.04(h)  To   A   a  ccept grants and donations of  
               equipment, seedlings, materials, or funds from  
               any source for the purpose of supporting or  
               facilitating forest resource improvement work  
               undertaken pursuant to the provisions of this  
               chapter.  Any   funds received shall be deposited  
               by the director in the Forest Resource  
               Improvement Fund established pursuant to Chapter  
               3 (commencing with Section 4799.13) of this part.

                (i) Subdivision (h) does not apply to the any  
               federal funds received pursuant to the American  
               Recovery and Reinvestment Act of 2009.
          
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092