BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
144 (Pavley)
Hearing Date: 05/28/2009 Amended: 4/21/2009
Consultant: Brendan McCarthy Policy Vote: NR&W 7-3, EQ 5-2
SB 144 (Pavley)
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BILL SUMMARY: SB 144 requires the Department of Forestry and
Fire Protection to take several actions to further state
greenhouse gas emission reduction goals. The bill requires the
department to develop incentives for the conservation of private
forest lands, to establish baseline information about forest
lands in the state, and to develop regulations for mitigating
the impacts of converting forest lands to other uses. The bill
also states the intent to create an alternative method for
regulating timber harvesting on private lands.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Regulating timber harvests $150 $300
$2,550General *
Establishing baseline data $100
$100General /
Special
**
Developing regulations for Costs fully reimbursedSpecial
***
forest conversions
* In the long term, these costs would likely be offset by
reduced costs in the existing regulatory program.
** Could be funded from future fees relating to greenhouse gas
emission collected under AB 32.
*** New special fund. Costs offset with fee revenues.
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STAFF COMMENTS: Suspense File. As proposed to be amended.
Under current law, the Department of Forestry and Fire
Protection regulates the harvesting of timber on private lands
in the state. In general, forest landowners must submit a timber
harvest plan to the department for review and approval. The
timber harvest plan specifies the lands that will be harvested,
the methods of harvesting, and any measures that will be
SB 144 (Pavley)
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undertaken to mitigate for negative environmental impacts of the
harvest. Approved timber harvest plans are specific to
particular areas that are planned for harvesting and are valid
for three years (with extensions available under certain
circumstances).
Any harvesting of timber performed as part of the conversion of
timber lands to other uses (typically for agricultural uses or
housing development) is regulated under state law. In order to
convert timber lands to other uses, a landowner must receive a
timberland conversion permit from the department and the
subsequent land uses are subject to review under the California
Environmental Quality Act.
The California Global Warming Solutions Act of 2006 (AB 32,
Nunez), requires the Air Resources Board to determine the level
of emissions of greenhouse gases in 1990 and to adopt
regulations to ensure that the state returns to that level of
emissions by 2020. To that end, the Air Resources Board adopted
a Scoping Plan which allocated greenhouse gas emission reduction
targets to various sectors of the economy. Currently, the
forestry sector of the state's economy is a carbon sink, that
is, California's forests currently sequester more carbon
(through the growth of trees, etc.) than they emit (due to
decomposition of dead trees, wildfire, timber harvesting, etc.).
Under the Scoping Plan, the state's forest sector has a target
of no net loss of carbon sequestration capacity in the state's
forests. The Scoping Plan also identified the potential to
increase the sequestration of carbon in the state's forests by 5
million metric tones of CO2 equivalent through forest
management, reduced wildfire, and limiting the conversion of
forest lands to other uses.
SB 144 states the legislature's intent to enact legislation to
develop an alternative method of regulating timber harvesting in
the state. The bill states the intent to develop a
watershed-scale timber harvesting permit, which could improve
planning and provide a more cost-effective permitting process
for applicants. The current timber harvest plan review program
is supported by the General Fund, at an annual cost of about $23
million. It is possible that the approach of this bill may
reduce regulatory costs by shifting to a longer planning
horizon, thus reducing the number of reviews that are performed.
However, larger-scale plans are likely to be more complex,
requiring substantial review. Because the details of this
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proposal are unknown, it is not possible to estimate costs or
potential savings.
SB 144 requires the Department of Forestry and Fire Protection
to take several actions relating to forestry management and
greenhouse gas emissions. Specifically, the bill requires the
department to develop options and incentives for the
conservation and management of private forest lands to reduce
emissions and increase sequestration of greenhouse gasses. The
bill requires the department to establish baseline data at the
regional and state level about the emissions and sequestration
of greenhouse gasses in the state's forests. The bill requires
the department, in consultation with the Air Resources Board and
the Department of Fish and Game, to develop regulations
requiring that property owners who convert forest lands to other
uses mitigate for the greenhouse gasses released due to the
conversion and the lost sequestration potential of those lands.
The bill requires the department to impose a fee on timber land
conversions to fully offset the requirements of the bill, as
they relate to timber land conversions. However, because some of
the required activities may not relate directly to the
conversion of timber lands, fee revenues will not likely fully
offset costs.
As proposed to be amended by the author, reporting on carbon
sequestration in forest lands would be included in an existing
reporting requirement, with a narrower reporting requirement.