BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2163
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2163 (Mendoza) - As Amended:  April 26, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          As proposed to be amended, this bill makes timber harvest plans  
          (THPs) extended in 2008 and 2009 eligible for a maximum of four  
          one-year extensions.  Specifically, this bill:

          1)Makes THPs extended in 2008 and 2009, on which work has  
            commenced but not completed, eligible for a maximum of four  
            one-year extensions if "good cause" is shown, and provided:

             a)   all timber operations comply with the THP and all  
               applicable rules and regulations; 
             b)   no threatened or endangered listed species have been  
               discovered since approval of the THP;
             c)   no significant physical changes to the harvest area or  
               adjacent areas have occurred since the THP's cumulative  
               impacts were originally assessed.

          2)As proposed to be amended, adds an urgency clause to the  
            measure.

          FISCAL EFFECT  

          Minor GF costs of less than $25,0000 to the California  
          Department of Forestry and Fire Protection (CDF) to manually  
          input THP extensions and final effective dates.  

           COMMENTS  

           1)Rationale  .  The author intends this bill to make technical  
            clarification of the eligibility of THPs that received  
            extensions in 2008 and 2009.  The author describes these  








                                                                  AB 2163
                                                                  Page  2

            clarifications as consistent with the intent of a bill passed  
            in 2009 on the topic.

           2) Background  .  

             a)   Forestry Practices Act.   In 1973, the Legislature  
               enacted the Forestry Practices Act in response to the  
               apparent and severe effect of logging on fish and game,  
               forest ecosystems, and water quality.  Under the act, a  
               logging operation must comply with a THP, which describes  
               the proposed logging methods and projected production from  
               an area, as well as any environmental mitigation measures  
               the timber harvesters will undertake to prevent or offset  
               damage to natural resources, such as fish or wildlife.   
               CalFire has statutory responsibility to review these plans,  
               approve or deny them, and to monitor compliance with the  
               plan during logging operations.  In addition, the  
               Department of Conservation, the State Water Resources  
               Control Board and the Department of Fish and Game (DFG)  
               participate in review and enforcement.  The costs of THP  
               review are paid from the General Fund.  

             b)   Logging Continues to Contribute to Environmental  
               Degradation.   Since passage of the act, many of the  
               conditions that prompted legislative action have not  
               improved.  In fact, many have worsened.  In the north  
               coast, an active logging area, 410 rivers or streams are  
               listed as sediment-impaired under the Clean Water Act; most  
               native salmon and steelhead species are listed as  
               threatened or endangered.  U.S. EPA, the National Marine  
               Fisheries Service (NMFS), and SWRCB have all identified  
               logging operations and road construction, approved under  
               the act, as major factors driving such listings.  Based on  
               these facts, an argument can be made for making THP  
               requirements more stringent and review even more frequent.  

             c)   California's Struggling Logging Industry.   According to  
               industry representatives, California's logging industry  
               faces serious challenges.  The industry complains that  
               California's onerous environmental regulations and  
               reporting requirements make logging operations much more  
               costly that logging in nearby Oregon and Washington.  In  
               addition, lumber prices have dropped dramatically in recent  
               years.  In any case, it is clear that the industry is  
               suffering, as evidenced by the closing of four California  








                                                                  AB 2163
                                                                  Page  3

               sawmills in 2009.  

          3)CDF's Accurately Cautious Interpretation.   Last year, the  
            Legislature passed AB 1066, Mendoza (Chapter 269, Statutes of  
            2009).  That bill extended the effective period of a THP from  
            three years to five years. The author, who is also the author  
            of this bill, contends the intent of AB 1066 was to provide  
            eligibility for extension to both THPs that expired in 2008  
            and 2009 and those that were extended in those years.   
            However, CDF accurately read the bill as to apply only to a  
            plan that had "expired in 2008 or 2009."  The author sees  
            CDF's interpretation as inconsistent with the intent of AB  
            1066, if not its text and intends this bill to align the two.  

          4)Support.   This bill is supported by business groups, including  
            mills, foresters and associated industries.  

          5)Opposition.   There is one group registered in opposition to  
            this bill-Forests Forever-which contends the limited  
            eligibility provided by AB 1066 is appropriate and as  
            intended. 
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081