BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 135                    HEARING DATE: July 6, 2009  
          AUTHOR: Jeffries                   URGENCY: Yes  
          VERSION: May 29, 2009              CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Public resources: forest protection: urban forestry:  
          cost sharing.   
          
          BACKGROUND AND EXISTING LAW
          The Department of Forestry and Fire (CDF) is authorized to enter  
          into contracts with private land owners and other public  
          agencies for prescribed burning or other hazardous fuel  
          reduction within wild lands. The state's cost share for these  
          contracts shall be equal to the state to private ration of  
          benefits to the project. The state may not pay more than 90% of  
          the costs unless the director of CDF determines that there will  
          be no direct private economic benefits from the project.

          Under 4790 et seq. of the Public Resources Code, CDF  
          administers the California Forest Improvement Program (CFIP) to  
          encourage private and public investment in, and improved  
          management of, California forest lands and resources. The goal  
          of the CFIP is to ensure adequate high quality timber supplies,  
          related employment and other economic benefits, and the  
          protection, maintenance, and enhancement of a productive and  
          stable forest resource system. CFIP provides eligible  
          landowners, on a voluntary basis, with technical and financial  
          assistance for planning, reforestation, and resource management  
          investments that improve the quality and value of forestland.  
          This program may require up to a 25% cost share match from the  
          program participant. There is a maximum of a 10% cost share if  
          the project is on lands substantially damaged by fire, insects  
          and earthquakes.

          Under 4799.06 et seq., CDF administers the Urban Forestry  
          Program to offer grants to urban communities throughout  
          California to create and maintain sustainable urban forests.  
          This program offers assistance for 25 to 90 percent of costs for  
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          projects such as the development of urban tree plans, tree  
          planting projects, energy saving forest programs, the  
          development of urban forest master plans, and forest programs  
          that use urban forests for air quality improvement, reduction in  
          greenhouse gas emissions, and improving water quality. The cost  
          share requirements can be waived for projects that are in  
          disadvantaged communities.

          PROPOSED LAW
          This bill would allow the director of CDF to waive the cost  
          share requirements for CFIP, the Urban Forestry Program, and  
          prescribed burning agreements when the funding source prohibits  
          cost sharing requirements. 

          This bill would also remove the requirement for CDF to receive  
          approval from the Department of General Services to enter into  
          agreements for prescribed burning. The director may also accept  
          grants and donations from any source for the purpose of  
          supporting or facilitating prescribed burning. 
          Lastly this bill will add nonprofit organizations to the  
          definition of "person." 

          ARGUMENTS IN SUPPORT
          The author states, "The recently enacted federal stimulus bill,  
          the American Recovery and Reinvestment Act (ARRA), provides  
          billions of dollars to the states and Americans. Among the  
          provisions in the ARRA is $250 million to the United States  
          Forest Service to distribute to the states and agencies for  
          forest management and fire prevention. One of the stipulations  
          of ARRA is that cost-share requirements on local agencies and  
          organizations are prohibited?This bill will allow Cal-Fire and  
          the Director to waive the cost-sharing requirements currently  
          found in Public Resources Code 4799.4 and 4799.12. This will  
          allow Cal-Fire and other agencies to most effectively utilize  
          stimulus funds meant for forest management and fire prevention."

          ARGUMENTS IN OPPOSITION
          None received.

          COMMENTS 
           American Recovery and Reinvestment Act of 2009 (ARRA):  The ARRA  
          includes $250 million for state and private forestry activities  
          including hazardous fuels reduction, forest health, and  
          ecosystem improvement activities on state and private lands. The  
          ARRA requires that the federal funds not be subject to matching  
          or cost share requirements. CDF has submitted a list of  
          potential projects, totaling $176 million, in the areas of  
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          forest stewardship, forest health, fuels management and other  
          fire assistance, urban forestry, wood-to-energy, and volunteer  
          fire assistance. According to CDF, the existing CFIP, urban  
          forestry, and fuels management programs provide a template for  
          how the state can put federal stimulus funds to work through  
          grants to government agencies and nonprofits.

           Restore requirement for CFIP funds to be deposited into the  
          Forest Resource Improvement Fund (fund)  : In 2006, the  
          Legislature amended 4799.13(a) of the Public Resources Code in  
          order to restrict the use of moneys deposited in the fund to the  
          management of state forests. In order to funnel federal ARRA  
          monies to lands other than state forests, the Assembly Natural  
          Resources committee amended this bill to exempt ARRA monies from  
          being deposited into the fund. However, the latest amendments  
          delete this provision in its entirety. According to the author,  
          this deletion was unintentional. This language should be  
          restored [See amendment 1]

          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               On page 8, line 13, after "chapter." insert:
          Any funds received, except funds received pursuant to the  
          federal American Recovery and Reinvestment Act of 2009, 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.
               
          SUPPORT
          None Received

          OPPOSITION
          None Received













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