BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1504 (Skinner)
          
          Hearing Date:  08/02/2010           Amended: 08/02/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 5-3, EQ 5-2














































          AB 1504 (Skinner), Page 2


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          BILL SUMMARY: AB 1504 requires the Board of Forestry and Fire  
          Protection to ensure that its rules and regulations for  
          harvesting timber consider the capacity of forest resources to  
          sequester carbon dioxide sufficient to meet or exceed the  
          state's emission reduction goals for the forestry sector under  
          AB 32.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Review of existing regulations    $800 to $1,000        General
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Under current law, the Board of Forestry and Fire Protection is  
          required to develop rules and regulations for the harvesting of  
          timber. The rules and regulations shall ensure the continuing  
          harvest of timber while protecting soil, air, fish, wildlife,  
          and water resources. In order to commercially harvest timber in  
          the state, a landowner must file a timber harvest plan (THP)  
          with the Department of Forestry and Fire Protection. The THP  
          governs the timber harvest and specifies harvest methods and  
          protections that will be put in place to protect public  
          resources, such as fish and water quality. Under law, the THP  
          process is functionally equivalent to the California  
          Environmental Quality Act (CEQA) process. Therefore, a THP must  
          address all the issues that would be addressed under CEQA.  
          Recently revised CEQA guidelines require the analysis of carbon  
          emissions as part of the required environmental analysis.  
          Because the THP review process is functionally equivalent to  
          CEQA, THPs will now have to address carbon emissions associated  
          with a proposed timber harvest.

          Under AB 32 (Nunez, Chapter 488, Statutes of 2006), the Air  
          Resources Board is required to approve a statewide greenhouse  
          gas emission limit, such that statewide emissions in 2020 are  
          equal to emissions in 1990. The Air Resources Board is required  
          to implement regulatory measures to reduce emissions to meet  
          that target. Pursuant to AB 32, the Air Resources Board adopted  







          AB 1504 (Skinner), Page 2


          a "scoping plan" to outline how the state will achieve those  
          goals. The scoping plan allocated emission reductions to a  
          variety of sectors of the state's economy. The scoping plan  
          includes the goal that the forestry sector will continue to  
          sequester carbon at the current estimated rate of 5 million tons  
          of CO2 equivalent per year.

          AB 1504 requires the Board to ensure that all its rules and  
          regulations that govern timber harvesting consider the capacity  
          of forest resources to sequester carbon dioxide, sufficient to  
          meet the state's greenhouse gas emission reduction goals for the  
          forestry sector.

          In order to meet the requirements of the bill, the Department of  
          Forestry and Fire Protection (which provides staff support to  
          the Board) indicates that it will need to commission life-cycle  
          analyses of forestry products and forestry practices to ensure  
          that the Board's rules and regulations, and hence forestry  
          practices, are in fact continuing to sequester carbon dioxide at  
          the current estimated level. CalFire indicates that the costs to  
          commission those studies are likely in the range of $800,000 to  
          $1,000,000.


          SB 144 (Pavley) requires CalFire to develop certain baseline  
          information about green house gas emissions relating to the  
          forestry sector. The bill also requires CalFire to develop  
          incentives for the conservation of forest lands. SB 144 is in  
          the Assembly Natural Resources Committee.