BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2184
                                                                  Page  1

          Date of Hearing:   April 7, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 2184 (Chesbro) - As Introduced:  February 20, 2014
           
          SUBJECT  :  Timber and engineered wood products assessment: forest  
          restoration grants 

           SUMMARY  :   Clarifies that revenues from the lumber products  
          assessment created by AB 1492 (Committee on Budget, Chapter 289,  
          Statutes of 2012), may be used for grants to remediate former  
          marijuana growing operations once other various funding  
          requirements specified in AB 1492 are met.

           EXISTING LAW  :  Establishes a one percent assessment on lumber  
          products sold in the state for the primary purpose of funding  
          "the activities and costs of the [timber harvest review  
          agencies]?associated with the review of projects or permits  
          necessary to conduct timber operations."  Once various funding  
          requirements specified in AB 1492 are met, authorizes revenues  
          from the lumber products assessment to fund grants to public and  
          private entities to reduce cost of wildland fire suppression,  
          reduce greenhouse gas emissions, promote adaptation to climate  
          change, improve forest health, and protect homes and  
          communities.
             
           FISCAL EFFECT  :   Unknown

           COMMENTS :   

           1)Background on Marijuana Grows  .  According to a recent document  
            prepared by the Department of Fish and Wildlife and the State  
            Water Resources Control Board:

               The impacts of producing medical marijuana on private  
               lands continue to increase across California.  The  
               rapid increase is best illustrated in northern  
               California.  A Department [of Fish and Wildlife] study  
               using aerial surveys (results and review not  
               finalized) of four small watersheds in Humboldt and  
               Mendocino counties found the number of acres in  
               cultivation doubled from 2009 to 2012, with an  
               estimated 500 individual operations and approximately  
               30,000 plants in each watershed.  The Department  








                                                                  AB 2184
                                                                  Page  2

               concludes private marijuana cultivation has grown so  
               much on the north coast that coho salmon, a state and  
               federally listed species, may go extinct in the near  
               future, if this problem is not immediately addressed.   
               The State and Regional Water Boards have observed  
               significant land clearing activities resulting in  
               sediment discharges to many high value surface waters  
               in the north state, nutrient loading from fertilizers,  
               and stream diversion that result in dangerously low  
               water levels.

               Most of the growers on private land claim a right to  
               grow under Proposition 215, but grows cause  
               significant environmental damage throughout  
               California.  While some growers may have good  
               intentions but not know any better, the majority of  
               growers appear to proceed with reckless disregard for  
               their natural surroundings.  In some regions of  
               California, unregulated marijuana growing may now be  
               the primary threat to water quality and other  
               beneficial uses such as salmon and steelhead and their  
               habitats?.

               The Department to date has conducted approximately 249  
               marijuana eradication and reclamation missions either  
               with other allied law enforcement agencies or  
               solo?.Costs to reclaim damaged lands and remediate  
               impacts?[can be] as high as $30,000 to $50,000 per  
               acre on private lands. 

           2)Background on AB 1492.   Prior to 2013, the state's timber  
            harvest review program was funded by the General Fund (GF).   
            The program had experienced GF cuts for several years, which  
            eliminated positions at review agencies, delayed the approval  
            of timber harvest plans, and compromised the integrity of the  
            environmental review process.  To remedy the situation, the  
            Legislature passed AB 1492, which, among other things,  
            establishes a one percent assessment on the sale of lumber and  
            engineered wood products.  The revenues generated from this  
            assessment are deposited into the Timber Regulation and Forest  
            Restoration Fund (TRFR Fund).    
             
             AB 1492 was supported by a diverse group of stakeholders,  
            ranging from the timber industry to environmentalist groups.   
            One of the main reasons for this broad support coalition was  








                                                                  AB 2184
                                                                  Page  3

            the prescriptive funding structure contained in the bill.   
            Under AB 1492, the moneys in the TRFR Fund are to be spent  
            according to the following four tiered funding structure (each  
            tier must be funded before the next can receive moneys):   

            The first tier is required to fund:   a) the Board of  
            Equalization's costs associated with the lumber products  
            assessment; b) refunds to lumber product retailers for  
            overpayment; and c) "the activities and costs of the [timber  
            harvest review agencies]?associated with the review of  
            projects or permits necessary to conduct timber operations."

            The second tier is required to create a $4 million reserve to  
            support first tier activities if funding falls short at any  
            time.

            The third tier is required to fund:   a) the California Forest  
            Improvement Program (CFIP), which is an assistance program for  
            smaller nonindustrial landowners, and b) "existing restoration  
            grant programs."

            The fourth tier is required to fund a) fuel treatment grants  
            and projects under the Wildland Fire Protection and Resources  
            Management Act; and, b) grants to public and private entities  
            to reduce cost of wildland fire suppression, reduce greenhouse  
            gas emissions, promote adaptation to climate change, improve  
            forest health, and protect homes and communities.

            Conservative projections of the TRFR Fund for fiscal year  
            2014-15 show that there will be approximately $3 million  
            available after the first and second tiers are funded.  Under  
            AB 1492, these available funds should go to the programs  
            identified in the third tier:  CFIP and "existing restoration  
            grant programs."  As the economy improves and lumber sales  
            increase, it is anticipated that moneys will become available  
            in the future for fourth tier programs.  

           3)Purpose of this bill  .  As stated above, AB 1492's fourth tier  
            allows lumber product assessment revenues to be used for  
            grants to improve forest health.  Restoring forest lands that  
            have been negatively affected by marijuana operations is an  
            activity that can certainly improve forest health.  This bill  
            makes this point clear by specifically stating that grants for  
            remediation of former marijuana growing operations are  
            eligible for funding under the fourth tier.  With this bill,  








                                                                  AB 2184
                                                                  Page  4

            it is the author's intent to draw funding attention to the  
            marijuana issue when AB 1492 moneys become available for  
            fourth tier programs.
             
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Farm Bureau Federation
          Drug Policy Alliance

           Opposition 
           
          None of file
           
          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092