BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1504|
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                                 THIRD READING


          Bill No:  AB 1504
          Author:   Skinner (D), et al
          Amended:  8/17/10 in Senate
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  5-3, 6/22/10
          AYES:  Pavley, Lowenthal, Padilla, Simitian, Wolk
          NOES:  Cogdill, Hollingsworth, Huff
          NO VOTE RECORDED:  Kehoe

           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/28/10
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  7-4, 8/12/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Walters, Wyland

           ASSEMBLY FLOOR  :  43-28, 1/27/10 - See last page for vote


           SUBJECT  :    Forest resources:  carbon sequestration

           SOURCE  :     Author


           DIGEST  :    This bill 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 
                                                           CONTINUED





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          AB 32 (Nunez), Chapter 488, Statutes of 2006.

           ANALYSIS  :    

          Existing law:

          1. Under the Z'Berg-Nejedly Forest Practice Act of 1973,  
             establishes procedures for submitting a timber harvest  
             plan (THP) to the Department of Forestry and Fire  
             Protection (CDF) when conducting timber operations.  An  
             application for conversion must be filed with the Board  
             of Forestry and Fire Protection (BFFP) if timberlands  
             are to be converted.  The BFFP is authorized to adopt  
             regulations to assure the continuous growing and  
             harvesting of commercial forest species and to protect  
             certain resources.  (Section 4511 et seq. of the Public  
             Resources Code)

          2. Under the California Global Warming Solutions Act of  
             2006 (CGWSA), requires the Air Resources Board (ARB) to  
             determine the 1990 statewide greenhouse gas (GHG)  
             emissions level and approve a statewide GHG emissions  
             limit that is equivalent to that level, to be achieved  
             by 2020.  ARB must adopt regulations for reporting and  
             verification of GHG emissions, monitoring and compliance  
             with the program, and achieving GHG emission reductions  
             from sources or categories of sources by January 1, 2011  
             to be operative on January 1, 2012, subject to certain  
             requirements.  (Section 38500 et seq. of the Health and  
             Safety Code)

          3. Under the California Forest Legacy Program Act of 2007,  
             authorizes CDF to acquire conservation easements by  
             entering into a contract with the Wildlife Conservation  
             Board to administer the purchase of conservation  
             easements based on certain eligibility criteria (e.g.,  
             be subject to potential conversion, owned by willing and  
             interested sellers or conservation donors, 10 percent  
             forestry canopy).  (Section 12200 et seq. of the Public  
             Resources Code [PRC])

          4. Under the California Environmental Quality Act (CEQA):

             A.    Requires lead agencies with the principal  







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                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).  (PRC Section 21000 et seq.)  A  
                state agency regulatory program required plan or  
                other written documentation containing environmental  
                information may be submitted in lieu of an EIR if the  
                Secretary of the Resources Agency has certified the  
                regulatory program pursuant to certain requirements.   
                (PRC Section 21080.5)

             B.    Requires the Office of Planning and Research  
                (OPR), on or before July 1, 2009, to prepare,  
                develop, and transmit to the Resources Agency  
                amendments to the CEQA guidelines to assist public  
                agencies in the mitigation of GHG's or the effects of  
                GHG's as required under CEQA, including the effects  
                associated with transportation and energy  
                consumption, and requires the Resources Agency to  
                certify and adopt those guidelines by January 1,  
                2010.

          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 THP with CDF.  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 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.








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          Under AB 32 (Nunez), Chapter 488, Statutes of 2006, the ARB  
          is required to approve a statewide greenhouse gas emission  
          limit, such that statewide emissions in 2020 are equal to  
          emissions in 1990.  The ARB is required to implement  
          regulatory measures to reduce emissions to meet that  
          target. Pursuant to AB 32, the ARB adopted 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 five  
          million tons of CO2 equivalent per year.

          This bill 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, and states that  
          any funding needed for research will come from AB 32  
          monies.

           Background  

          According to the climate change scoping plan prepared by  
          ARB, pursuant to CGWSA requirements, "The 2020 Proposed  
          Scoping Plan target for California's forest sector is to  
          maintain the current 5 MMTCO2E [Million Metric Tons of  
          Carbon Dioxide Equivalent] of sequestration through  
          sustainable management practices, including reducing the  
          risk of catastrophic wildfire, and the avoidance or  
          mitigation of land-use changes that reduce carbon storage.   
          [CDF] has the existing authority to provide for sustainable  
          management practices, and will, at a minimum, work to  
          maintain current carbon sequestration levels.  The  
          Resources Agency and its departments will also have an  
          important role to play in implementing this measure."

          According to the scoping plan, "Monitoring carbon  
          sequestered on forest lands will be necessary to implement  
          the target.  The Board of Forestry and Fire Protection,  
          working with the Resources Agency, the Department of  
          Forestry and Fire Protection and ARB would be tasked with  
          developing a monitoring program, improving greenhouse gas  
          inventories, and determining what actions are needed to  







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          meet the 2020 target for the Forest sector.  Future climate  
          impacts will exacerbate existing wildfire and insect  
          disturbances in the Forest sector.  These disturbances will  
          create new uncertainties in reducing emissions and  
          maintaining sequestration levels over the long-term,  
          requiring more creative strategies for adapting to these  
          changes.  In the short term, focusing on sustainable  
          management practices and land-use issues is a practical  
          approach for moving forward."

          The scoping plan also notes that "Future land use decisions  
          will play a role in reaching our greenhouse gas emissions  
          reduction goals for all sectors.  Loss of forest land to  
          development increases greenhouse gas emissions levels  
          because less carbon is sequestered.  Avoiding or mitigating  
          such conversions will support efforts to meet the 2020  
          goal.  When significant changes occur, the California  
          Environmental Quality Act is a mechanism providing for  
          assessment and mitigation of greenhouse gas emissions."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions                2010-11     2011-12     
             2012-13               Fund  

            Review of existing            $800-$1,000          
            General
            regulations

           SUPPORT  :   (Verified  8/17/10)

          EPIC
          Forests Forever
          Sierra Club California 

           ARGUMENTS IN SUPPORT  :    According to supporters, "some -  
          including the U.S. Forest Service - fear that current  
          California forest practices have a dangerous possibility of  
          leaving the state forests as a net emitter of carbon.  AB  







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          1504 helps ensure that we have some way of measuring  
          whether California forests are - as we all hope - net  
          sequesters of carbon, giving us time to fix the problem  
          before it overwhelms us if it is not." 


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Chesbro, Coto, Davis, De La Torre, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma,  
            Mendoza, Monning, Nava, John A. Perez, Portantino,  
            Ruskin, Salas, Saldana, Skinner, Solorio, Swanson,  
            Torres, Torrico, Yamada
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Emmerson, Fletcher,  
            Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey,  
            Jeffries, Knight, Logue, Miller, Nestande, Niello,  
            Nielsen, Silva, Smyth, Audra Strickland, Tran, Villines
          NO VOTE RECORDED:  Carter, De Leon, Galgiani, Hall, V.  
            Manuel Perez, Torlakson, Bass


          CTW:mw  8/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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