BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2184
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          ASSEMBLY THIRD READING
          AB 2184 (Chesbro)
          As Introduced  February 20, 2014
          Majority Vote 

           NATURAL RESOURCES   9-0         APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Grove, Bigelow,  |Ayes:|Gatto, Bigelow,           |
          |     |Garcia, Muratsuchi,       |     |Bocanegra, Bradford, Ian  |
          |     |Patterson, Skinner,       |     |Calderon, Campos, Eggman, |
          |     |Stone, Williams           |     |Gomez, Holden, Jones,     |
          |     |                          |     |Linder, Pan, Quirk,       |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Clarifies that revenues from the lumber products  
          assessment created by AB 1492 (Budget Committee), 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 1% 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  :  According to the Assembly Appropriations  
          Committee, negligible state costs.  This remediation activity is  
          already eligible for AB 1492 grant funding, although it is not  
          expressly called out.

           COMMENTS  :   

          Background on Marijuana Grows.  According to a recent document  








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          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  
               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. 

          Background on AB 1492.  Prior to 2013, the state's timber  








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          harvest review program was funded by the General Fund.  The  
          program had experienced General Fund 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 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  








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          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,  
          anticipated that moneys will become available in the future for  
          fourth tier programs.  

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


           Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092


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