BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 144|
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                                 THIRD READING


          Bill No:  SB 144
          Author:   Pavley (D)
          Amended:  6/1/09
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 4/27/09
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Ashburn

           SENATE NATURAL RES. & WATER COMMITTEE  :  7-3, 3/24/09
          AYES:  Pavley, Kehoe, Leno, Padilla, Simitian, Wiggins,  
            Wolk
          NOES:  Benoit, Hollingsworth, Huff
          NO VOTE RECORDED:  Cogdill

           SENATE APPROPRIATIONS COMMITTEE  :  7-5, 5/28/09
          AYES:  Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,  
            Yee
          NOES:  Cox, Denham, Runner, Walters, Wyland
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    Forest resources: management

            SOURCE  :     Natural Resources Defense Council, Pacific  
                      Forest Trust 
                       The Nature Conservancy


           DIGEST  :    This bill requires the Department of Forestry  
          and Fire Protection (Department) to take several actions to  
          further state greenhouse gas emission reduction goals.  The  
                                                           CONTINUED





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          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.  This bill requires the  
          Director to collaborate with the Air Resources Board (ARB)  
          for the development and maintenance of trendline data, at  
          multiple geographic scales, on forest land carbon stocks  
          for the purpose of demonstrating consistency with the  
          California Global Warming Solutions Act of 2006.  This bill  
          requires the Director in collaboration with the ARB,  
          identify best available data sources and outstanding data  
          needs necessary to generate information that will inform  
          the development and maintenance of trendline data on forest  
          land carbon stocks at multiple geographic scales.  The bill  
          specifies in the assessment report of California's forest  
          resources that, subject to funding being made available  
          from the California Global Warming Solution Act of 2006,  
          fees or other sources, maintenance or improvement of carbon  
          sequestration attributable to the state's forested lands,  
          wood products in use and in landfills, and energy  
          substitution for fossil fuels.

           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 State  
             Board of Forestry and Fire Protection if timberlands are  
             to be converted.

          2. Under the California Global Warming Solutions Act of  
             2006 (CGWSA), requires the California 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  







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             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.

          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.

          4. Requires lead agencies with the principal 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 California  
             Environmental Quality Act (CEQA) (CEQA includes various  
             statutory exemptions, as well as categorical exemptions  
             in the CEQA guidelines).  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.

          Under the Z'Berg-Nejedly Forest Practice Act of 1973, this  
          bill:

          1. Requires CDF to do the following in order to further  
             CGWSA goals and enhance the capability of forest lands  
             to sequester carbon:

             A.    Develop options and incentives for the  
                conservation and management of private forest lands  
                pursuant to CGWSA criteria.

             B.    Establish, in consultation with ARB, scientific  
                standardized baselines at regional and state scales  
                to project future scenarios of carbon emissions and  
                sequestration.








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             C.    Develop, in consultation with the ARB and the  
                Department of Fish and Game (DFG), regulations that  
                establish a full mitigation requirement for carbon  
                stock and sequestration losses due to forest land  
                conversion.

          2. Requires CDF to set a fee on a conversion applicant to  
             fully offset CDF's costs for implementing the bill's  
             costs relating to conversion.

          3. Provides legislative intent "to develop a planning  
             watershed-scale a timber harvest plan to facilitate  
             long-term planning, improve information that is  
             available to the public and reviewing agencies, ensure  
             meaningful cumulative impact assessment, and provide a  
             more cost-effective permitting program for applicants."

           Background
           
          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  







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          by five million metric tones of CO2 equivalent through  
          forest management, reduced wildfire, and limiting the  
          conversion of forest lands to other uses.

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions              2009-10          2010-11          
           2011-12          Fund
           
          Regulating timber         Unknown, potentially in the  
          millions     General *
            harvests

          Establishing baseline       Unknown, potentially in the  
          millions     General /
            data                                            Special  
          **

          Developing regulations        $200      $240       
          $240Special ***
            for 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.

           SUPPORT  :   (Verified  6/1/09)

          Natural Resources Defense Council, Pacific Forest Trust  
                         (co-source)
          The Nature Conservancy (co-source)
          American Federation of State, County and Municipal  
                         Employees, AFL-CIO
          California League of Conservation Voters
          Defenders of Wildlife
          Forests Forever  
           Planning and Conservation League







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          Sierra Club California 
          Trust for Public Land
           
          OPPOSITION  :    (Verified  6/1/09)

          American Forest and Paper Association
          CalChamber
          California Association of Realtors
          California Association of Wine Grape Growers
          California Building Industry Association
          California Business Properties Association
          California Cattlemen's Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Forestry Association
          California Licensed Foresters Association
          California State Association of Counties
          Irvine Chamber of Commerce
          Lumber Association of California & Nevada
          Regional Council of Rural Counties
          Resource Landowners Coalition

           ARGUMENTS IN SUPPORT  :    According to supporters, this bill  
          directs the creation of a scientifically credible baseline  
          estimate of the amount of carbon stored in California's  
          forests directs [CDF] to develop additional incentives for  
          conservation and management of non-federal forestlands in  
          the state [and] requires the loss of carbon storage  
          capacity be fully mitigated when forestland is converted to  
          other uses."  According to American Federation of State,  
          County and Municipal Employees, "The health of the  
          environment and of all Californians depends on the  
          responsible stewardship of natural resources."

           ARGUMENTS IN OPPOSITION  :    In opposing this bill,  
          CalChamber asserts that this bill, "imposes extra duties on  
          [CDF] to address global warming issues without providing  
          public funding.  The bill also unfairly burdens forestland  
          owners seeking to convert their property to other uses with  
          more or expanded fees."  According to other opponents, "For  
          purposes of CEQA, SB 144 appears to be establishing  
          separate, duplicative mitigation measures and ignores the  
          rest of the existing statutory framework for oak woodlands  
          conversions."  







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          CTW:do  6/1/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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