BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1504
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          Date of Hearing:   January 11, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                   AB 1504 (Skinner) - As Amended:  January 4, 2010
           
          SUBJECT  :  Forest resources: carbon sequestration

           SUMMARY  :  Requires the California Department of Forestry and  
          Fire Protection (CDF), in consultation with the Air Resources  
          Board (ARB), by March 1, 2012, to assess the capacity of its  
          forest and rangeland regulations to meet or exceed the state's  
          greenhouse gas (GHG) reduction  goals, pursuant to the  
          California Global Warming Solutions Act of 2006 (AB 32).

           EXISTING LAW  :

          1)Requires ARB, pursuant to AB 32, to adopt a statewide GHG  
            emissions limit equivalent to 1990 levels by 2020 and adopt  
            regulations to achieve maximum technologically feasible and  
            cost-effective GHG emission reductions.  ARB is required to  
            adopt and update every five years a scoping plan for achieving  
            these reductions from sources or categories of sources.

          2)Requires CDF, pursuant to the Z'berg-Nejedly Forest Practice  
            Act (Act) of 1973, to create and maintain a comprehensive  
            system of regulation of all timberlands to assure that: where  
            feasible, the productivity of timberlands is restored,  
            enhanced, and maintained and; the goal of maximum sustained  
            yield of high-quality timber products is achieved while giving  
            consideration to values relating to recreation, watershed,  
            wildlife, range and forage, fisheries, regional economic  
            vitality, employment, and aesthetic enjoyment.

           FISCAL EFFECT  :  Unknown

           THIS BILL  : 

          1)By March 1, 2012, requires CDF, in consultation with ARB, to  
            assess the capacity of its forest and rangeland regulations  
            and non-regulatory forestry programs to meet or exceed the  
            state's greenhouse gas reduction goals.  At a minimum, CDF  
            must consider:

             a)   Whether relevant statutory or regulatory requirements  








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               governing a timber harvesting plan, sustained yield plan or  
               its equivalent, non-industrial timber management plan, or  
               any other discretionary approval for timber harvesting are  
               sufficient to ensure a net reduction or sequestration of  
               carbon emissions from primary forest carbon sources, sinks  
               or reservoirs.

             b)   Whether regulations governing conversion of timberland  
               and forestland, as defined, to non-timber and non-forest  
               uses are sufficient to offset lost sequestration capacity  
               and carbon emissions associated with the non-timber use.

             c)   Whether forest growth, harvest and conversion  
               information obtained through CDF's regulatory and  
               non-regulatory programs and other local, state and federal  
               sources is sufficient and reliable to track changes in  
               carbon stocks, including net emissions and reductions,  
               across the state's forested landscape.
          2)By December 1, 2011, CDF must publish a draft assessment,  
            including any recommendations, for a 30-day public review and  
            comment period.

          3)Requires ARB, in consultation with CDF, to convene an  
            independent panel of no less than three qualified experts to  
            peer-review the draft assessment.  At least two experts shall  
            be selected from academia.  CDF must incorporate the panel's  
            findings or recommendations or describe in writing the  
            reasons, based on substantial evidence, for rejecting a  
            finding or recommendation.

          4)Defines "net reduction or sequestration of carbon emissions"  
            to mean an increase in carbon stocks over time of a primary  
            forest carbon source, sink or reservoir compared to a  
            baseline.

          5)Defines "primary forest carbon source, sink or reservoir" to  
            include standing live or dead trees, soil, shrubs and  
            herbaceous understory, lying dead wood, litter, duff, and  
            forest products.

           COMMENTS  :

           1)Purpose  : According to the author's office, this bill is  
            necessary to ensure that CDF's assessment is completed in a  
            timely manner, and to ensure that it reflects the most  








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            defensible science on carbon sequestration and forestry  
            practices.  The bill essentially codifies Task #2 of the  
            Interagency Forestry Working Group (IFWG), established in  
            December 2008 by the Natural Resources Agency, California  
            Environmental Protection Agency, and ARB as the official  
            forestry subgroup of the Climate Action Team to provide  
            guidance on all forest-related climate strategies and  
            policies.  The IRWG proposed Task #2 (in addition to 3 other  
            tasks) on May 6, 2009 and set a completion date of November  
            2009.  However, presumably due to resource constraints,  
            including state employee furloughs, this deadline was not met.  
             On November 24, the IFWG outlined a work plan for Task #2  
            though it did not include any timeline for completion.

            At the same time, but in a different venue, CDF appears to  
            have already answered the questions posed by Task #2.  In a  
            November 12, 2009 memo, responding to concerns raised by the  
            Department of Fish Game regarding the climate impacts of a  
            non-industrial timber management plan (NTMP), CDF concludes,  
            without any supporting documentation, that "?the provisions of  
            the [Forest Practices Act] and [Forest Practice Rules] while  
            not specifically targeted to address GHG relationships will  
            support the targets for the Forest Sector" identified in the  
            Scoping Plan.  While the NTMP itself may, in fact, mitigate or  
            offset carbon emissions associated with timber harvesting, CDF  
            extrapolates this conclusion, without substantiation, across  
            its entire regulatory program.  The Board of Forestry's (BOF)  
            2008 AB 32 Strategic Plan to ARB essentially reaches the same  
            conclusion, again, without any supporting evidence.  This  
            raises the concern that CDF may not be in the best position to  
            complete the above assessment objectively.

           2)Scoping Plan commitments  :  According to the Scoping Plan,  
            California's forests currently sequester approximately 5  
            million metric tons (MMT) of carbon dioxide annually.  This  
            means that the atmospheric uptake and sequestration of carbon  
            from forest growth is greater than emissions from fires,  
            harvesting, land conversion, and decomposition.  There were  
            significant limitations (e.g., temporal, spatial, and  
            methodological), however, to the study that formed the basis  
            for the above sequestration rate so ARB is planning on  
            updating its assessment by winter 2010.  Nonetheless, the  
            Scoping Plan tasks CDF and BOF with evaluating how its current  
            regulations and programs will continue to achieve the 5 MMT  
            target by 2020 (Task #2).  Since the conversion of timberland  








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            and forestland (a broader category) to non-timber and  
            non-forest land uses is one threat to the maintenance of this  
            target, the Scoping Plan also suggests that regulatory changes  
            could dissuade conversion or require mitigation for the lost  
            sequestration capacity.  From 1999 to 2008, about 1,500 acres  
            of timberland per year have been converted to non-timber uses.

            CDF is just beginning to determine how it will implement Task  
            #2.  Possible options include a top-down approach, comparing  
            carbon inventory trends longitudinally and retrospectively  
            teasing out possible explanations for this trend, or a  
            risk-based approach, assessing the capacity of its rules or  
            programs to mitigate threats (e.g., wildfires, conversions) to  
            carbon stocks.  There are many existing forest practice rules  
            that, on a project-by-project basis, may have the effect of  
            offsetting overall carbon emissions (e.g., streamside buffer  
            or retention rules) or contributing to emissions (e.g., rules  
            that permit the harvesting of old-growth or older trees).   
            However, these rules were not developed with carbon  
            sequestration in mind (and, in fact, may have been motivated  
            by other statutory requirements or court order) so the  
            challenge is to determine which rules have the incidental  
            benefit of increased carbon storage and whether new rules or  
            amendments are necessary to increase storage or mitigate  
            emissions in order to meet or maintain the Scoping Plan  
            target.  

          3)CEQA and carbon emissions  : Pursuant to its responsibilities  
            under the California Environmental Quality Act, CDF is  
            requiring large landowners (greater than 50,000 acres) to  
            analyze the GHG impacts of their preferred timber harvest  
            management regimes across their entire ownership.  These  
            landowners are currently required to demonstrate, through a  
            sustained yield plan (SYP), "maximum sustained production" of  
            high-quality timber products, balancing growth and harvest  
            over a 100-year planning horizon.  A SYP describes a  
            landowner's management regime, and proposed growth and harvest  
            rates, and contains environmental analysis of this regime on a  
            programmatic scale.

            CDF has stated that "if the GHG analysis is included as part  
            of the overall management regime for the ownership, individual  
            [timber harvest plans] will not be required to specifically  
            address GHG relationships other than to demonstrate  
            consistency with the management regime." CDF has also found  








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            that its "?review of approved [SYP] documents for larger  
            landowners in the state indicates that at the end of the  
            100-year planning horizon?the total inventory and growth will  
            exceed existing inventory and growth levels." Together with  
            the assertion that carbon post-harvest continues to be  
            sequestered in wood products or landfills and the assumption  
            that use of wood products displaces use of non-wood building  
            materials, CDF has concluded that, despite the lack of a  
            threshold of significance, the impacts of carbon emissions are  
            not significant and thus, no mitigation is necessary.

           4)Forest and carbon  :  Forests both store and release carbon.   
            Through photosynthesis, carbon dioxide is absorbed from the  
            atmosphere and stored aboveground (in trees, understory  
            vegetation, lying dead wood, litter, duff) and belowground  
            (soil, roots).  Older trees inherently store more carbon than  
            younger trees.  Carbon stored in soils is large, stable pool,  
            accounting for 50-60 percent of total forest carbon in  
            temperate forests.  When trees or understory plants die, some  
            carbon is stored as dead biomass or transformed to soil carbon  
            via decomposition.  Soil carbon itself decomposes slowly and  
            can accumulate at high rates.

            The above context illustrates the fact that forests are  
            biological systems, and as such are, according to Mark Harmon,  
            a professor of forest science at Oregon State University,  
            "leaky."  Carbon comes into the system via photosynthesis but  
            goes out via respiration, decomposition, combustion, leaching,  
            and erosion.  A leaky system can store carbon but the amount  
            it can store is dependent on the rate of input relative to the  
            rate of output.  As an analogy, a bucket with leaks can store  
            water only if it receives a constant input; the larger the  
            leaks, the less water stored regardless of the rate of inflow.

            A disturbance to this system, whether caused by humans or  
            nature, influences this carbon balance in several respects.  A  
            wildfire, for example, directly releases carbon to the  
            atmosphere while also converting living biomass to dead  
            biomass.  When trees are harvested, carbon (roughly 20-33  
            percent) is transferred to wood products, emitted from  
            decaying stumps and slash (branches, leaf litter, etc.), soil,  
            and combustion from burning the site or slash in preparation  
            for re-planting.  Some carbon also remains on-site.  A  
            disturbance temporarily (years to decades) reduces  
            photosynthesis given the time it takes to restore the  








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            photosynthetic capacity of forests.  According to Mr. Harmon,  
            the effect of a disturbance depends on the frequency and  
            severity of the disturbance; more frequent disturbances remove  
            more carbon, storing less of it in forests, on average.  In  
            effect, increasing the disturbance severity increases the size  
            of the leaks in the bucket.

           5)Take-home principles :  In testimony before Congress last year,  
            Dr. Harmon articulated a number of principles that he believes  
            should frame any analysis of carbon and forests:

               a)     All relevant carbon pools need to be included: in  
                 other words, all possible sources (soil, dead biomass,  
                 live plants) of leaks in the bucket should be considered;  
                 related to this is changes in or transfers from these  
                 pools for a total accounting.

               b)     Any analysis should specify the start and end points  
                 or account for the baseline carbon when assessing the  
                 impacts of a particular disturbance or project.  An  
                 afforestation project on marginal agricultural land will  
                 store more carbon compared to the same project  
                 established by converting an old-growth forest.

               c)     Actions to increase carbon stores can take decades  
                 to have a positive effect.  As mentioned above, it can  
                 take decades for a forest to reach its full capacity.

               d)     From a carbon-perspective, forests are potentially  
                 renewable if the regeneration rate equals the removal  
                 rate.  Removal of trees, of course, can affect carbon  
                 pools other than trees and these can decline when trees  
                 are harvested.

               e)     Forests systems have feedbacks which can strongly  
                 influence the carbon balance.  Increasing the growth rate  
                 of trees can lead to high carbon stores but a larger tree  
                 also means more plant material will die and decompose  
                 (and release carbon).  Also, if we are in fact  
                 experiencing more frequent and severe fires, this  
                 increase cannot happen indefinitely because more frequent  
                 fires will eventually lower fuel loads.

               f)     Finally, one must examine the whole forest over  
                 time, not a single point in time, when assessing a  








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                 policy's carbon effects.  While a young forest removes  
                 more carbon in a course of a year than an older forest,  
                 only comparing the relative sequestration rates for this  
                 one year is misleading.  When comparing the average  
                 carbon stores of a
                 young and older forest, it is the latter forest that will  
               store more carbon.

           6)Suggested amendment  :  The deadlines CDF must abide by when  
            preparing the assessment were inadvertently drafted one year  
            later than the author intended.  The draft assessment should  
            be published by December 1, 2010; the final by March 1, 2011.   
            This amendment will be made in the Appropriations Committee.

           7)Related legislation  : SB 144 (Pavley), which has been referred  
            to this committee, requires CDF, among other things, to  
            develop options and incentives for the conservation and  
            management of private forest lands, establish scientific,  
            standardized carbon baselines to project future emission and  
            sequestration scenarios, and develop regulations to mitigate  
            the sequestration impacts of forestland conversions.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Audubon California
          California Council of Land Trusts
          Cascade Action Now! 
          Central Sierra Environmental Resource Center
          Defenders of Wildlife
          Ebbetts Pass Forest Watch
          Environmental Protection Information Center
          Forest Ethics
          Forests Forever
          Natural Resources Defense Council
          Pacific Forest Trust
          Planning and Conservation League
          Trust for Public Lands

           Opposition 
           
          California Licensed Foresters Association
           









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