BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2601
                                                                  Page  1

          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   AB 2601 (Jeffries) - As Amended:  April 12, 2010
           
          SUBJECT  :  Firefighting.

           SUMMARY  :  Annually appropriates $45.6 million of revenue  
          received by the state from the proposed Tranquillon Ridge  
          (T-Ridge) offshore oil and gas project for firefighting  
          purposes.  

           EXISTING LAW  : 

          1)Pursuant to the State Assistance for Fire Equipment Act (Act),  
            authorizes the Secretary of Emergency Management (Secretary)  
            to acquire specified firefighting equipment for resale to a  
            local agency that provides fire suppression services or a fire  
            company.  Requires the Secretary to consult with the Office of  
            Emergency Services Fire Advisory Committee prior to adopting  
            regulations to implement the Act.   

          2)Establishes the State Assistance for Fire Equipment Account,  
            which is continuously appropriated for purposes of the Act.  

           THIS BILL  : 

          1)Requires the Secretary to consult with the California  
            Emergency Management Fire Advisory Committee, the chairperson  
            of the Blue Ribbon Fire Commission, the Director of Forestry  
            and Fire Protection (CDF), the State Fire Marshall, and the  
            chairperson of the State Board of Fire Services prior to  
            adopting regulations to implement the Act.  

          2)Continuously appropriates $45.6 million annually from any  
            revenues received by the state from the T-Ridge project to the  
            General Fun for firefighting purposes, as follows: 

             a)   $30,750,000 into the State Assistance for Fire Equipment  
               Account.  Authorizes the Secretary to use these funds to  
               purchase additional new equipment not currently included in  
               the Act, as specified; 

             b)   $3,300,000 to CDF for the purposes of conducting  








                                                                  AB 2601
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               vegetation management, defensible space projects, and  
               wildfire environmental restoration; 

             c)   $10,250,000 to CDF for purposes of funding the purchase  
               and replacement of aging fire engines, bulldozers,  
               transports, and urban search and rescue equipment.  

             d)   $1 million to the State Fire Marshal for the purposes of  
               providing training course and materials related to state or  
               federally mandated firefighter training and certification;  
               and,

             e)   $300,000 to the California Volunteers for the purposes  
               of assisting local agencies in rural communities with  
               volunteer firefighter recruitment and retention materials,  
               training, and incentive programs.  
           
          FISCAL EFFECT  :  Continuously appropriates $45.6 million of any  
          revenue received by the state from the proposed T-Ridge project  
          for firefighting purposes.  

           COMMENTS  :

          The T-Ridge project refers to the development of the Tranquillon  
          Ridge Oil and Gas Field along the California coast near Lompoc  
          by the Plains Exploration and Production Company (PXP).   The  
          project, as proposed in the Governor's 2009-10 Budget, would  
          have generated a one-time $100 million payment to the General  
          Fund, and ongoing royalties over the life of the project.  The  
          permit for the proposed project was heard in January 2009 by the  
          State Lands Commission, which denied the permit.  The proposal  
          was included in the 2009-10 Budget and was rejected by the  
          Assembly Budget Subcommittee #3 on Resources and then again by  
          the Budget Conference Committee.    

          According to the author, "The fire service throughout California  
          is vastly under funded.  CDF is proposed to be cut by $200  
          million this year.  While the Governor has proposed, for the  
          fourth year in a row, the Emergency Response Initiative (a 2.8  
          percent surcharge on insurance policy premiums statewide to  
          support emergency response activities) to partially backfill the  
          CDF cuts, [it] is unlikely to pass.  AB 2601 is a basic  
          alternative to fund the fire service."  

          The committee may wish to consider whether this bill is  








                                                                  AB 2601
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          premature, as the T-Ridge project has not been approved, and  
          therefore no associated revenues exist.  Moreover, this bill  
          would divert nearly half of the proposed revenues for a  
          specified purpose, rather than allowing the Legislature and the  
          Governor to appropriate the revenue through the Budget process.   


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          California State Lands Commission
          Sierra Club California
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092