BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 2193 (Gordon)
          As Amended  May 23, 2014
          Majority vote 

           WATER, PARKS & WILDLIFE          15-0                
          APPROPRIATIONS      16-0        
           
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          |Ayes:|Rendon, Bigelow, Allen,   |Ayes:|Gatto, Bigelow,           |
          |     |Bocanegra, Dahle, Fong,   |     |Bocanegra, Bradford, Ian  |
          |     |Frazier, Beth Gaines,     |     |Calderon, Campos, Eggman, |
          |     |Gatto, Gomez, Gonzalez,   |     |Gomez, Holden, Jones,     |
          |     |Gray, Patterson,          |     |Linder, Pan, Quirk,       |
          |     |Rodriguez, Yamada         |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Enacts the Habitat Restoration and Enhancement Act  
          which would require the director of the Department of Fish and  
          Wildlife (DFW) to approved habitat restoration and enhancement  
          projects that meet specified criteria.  Specifically,  this bill  :

          1)Requires the director of DFW to approve a habitat restoration  
            or enhancement project if the project will maintain existing  
            levels of human health and safety protection, including but  
            not limited to flood protection, and meets all of the  
            following:

             a)   Is a voluntary habitat restoration project and not  
               required for mitigation.

             b)   Is no larger than 5 acres in size.

             c)   In consistent with or identified in:

               i)     Federal and state listed species recovery plans or  
                 published protection measures, biological opinions, or  
                 previously approved DFW agreements and permits; 

               ii)    DFW and National Marine Fisheries Service Screening  
                 Criteria or fish passage guidelines;









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               iii)   DFW's California Salmonid Stream Habitat Restoration  
                 Manual; or

               iv)    Scientifically researched studies, guidance  
                 documents or practice manuals that describe best  
                 available habitat restoration or enhancement  
                 methodologies.

             d)   Will not result in cumulative negative environmental  
               impacts, as specified.

          2)Provides that the director's approval of a project shall be in  
            lieu of any other permit, agreement, or license.

          3)Requires the director within 30 days of receiving a written  
            request for approval of a habitat restoration or enhancement  
            project to determine whether the request includes all of the  
            required information.  Requires that the written request  
            include specified information, including: a full description  
            of the project and how it will result in a net benefit to any  
            affected habitat and species; an assessment of the project  
            area that includes a description of existing flora and fauna  
            and the potential presence of sensitive species or habitat; a  
            description of the environmental protection measures  
            incorporated into the project to protect water quality and  
            protected species, such that no potentially significant  
            negative effects to the environment are likely to occur; and  
            substantial evidence that the project meets the specified  
            requirements.

          4)Requires the director to notify the project proponent and  
            suspend implementation of the project if at any time the  
            director determines that the project is no longer consistent  
            with all of the requirements due to a material change.  Within  
            30 days of receipt of a notification of suspension, the  
            project proponent may file a written objection with the  
            director and request a lifting of the suspension.  Requires  
            the director within 30 days of receipt of an objection to  
            suspension to either revoke the approval or lift the  
            suspension.

          5)Creates the Habitat Restoration and Enhancement Account within  
            the Fish and Game Preservation Fund, the monies within which  
            would be available to DFW upon appropriation of the  








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            Legislature to administer and implement this bill.  Authorizes  
            DFW to enter into agreements to accept funds for deposit into  
            the account to supplement existing resources.  Authorizes DFW  
            to impose a schedule of fees for projects, based on the cost  
            of a project and sufficient to recover all reasonable  
            administrative and implementation costs of DFW related to the  
            project.

          6)Defines a "habitat restoration or enhancement project" for  
            purposes of this bill to mean a project the primary purpose of  
            which is to do one or more of the following:

               a)     Stream, river bank, lake or other waterway  
                 revegetation to improve habitat;

               b)     Stream or river bank stabilization with native  
                 vegetation or other predominantly non-rock bioengineering  
                 techniques to reduce erosion and sedimentation;

               c)     Modification, replacement or removal of fish passage  
                 barriers, as specified;

               d)     Modifications of existing water diversion  
                 infrastructure to enhance stream flow and improve fish  
                 habitat and survival, including pumps and fish screens;

               e)     Placement or installation of large wood, gravel, and  
                 other in-stream materials;

               f)     Sediment source reduction on existing roads;

               g)     Upland erosion control using bioengineering  
                 techniques and native revegetation;

               h)     Control and removal of invasive plant species;

               i)     Installation of fencing and alternative stock water  
                 supply infrastructure;

               j)     Restoration of freshwater and tidal hydrologic  
                 functions in wetlands and estuaries;

               aa)    Creation of off-channel habitat to restore historic  
                 rearing and flow refugia;








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               bb)    Restoration of floodplains to restore natural  
                 hydrologic function;

               cc)    Restoration and maintenance of existing off-stream  
                 ponds, including spillway repair and sediment removal;

               dd)    Other habitat restoration projects requiring permits  
                 from DFW whose primary purpose is to recover listed  
                 species and are included in species recovery plans or  
                 other DFW identified habitat and species recovery  
                 actions.

          7) Defines various other terms for purposes of this bill.

          8)States legislative findings and declarations regarding the  
            need for small-scale ecosystem restoration projects to benefit  
            listed species and the need for more efficient and expedited  
            processes for willing landowners and local governments to  
            obtain necessary regulatory approval and permits for such  
            projects.  States legislative intent to provide for  
            substantial permitting efficiency to encourage increased  
            implementation of voluntary, environmentally beneficial  
            small-scale habitat restoration projects that provide an  
            individual and cumulative net environmental benefit,  
            incorporate measures to protect against any adverse change,  
            and follow applicable preexisting state and federal agency  
            permits, certifications and exemptions.

           EXISTING LAW  :

          1)Establishes DFW as the trustee for the fish and wildlife  
            resources of California and prohibits any act which could  
            directly or indirectly "take" threatened or endangered species  
            listed under the California Endangered Species Act (CESA)  
            unless authorized by DFW.

          2)Requires DFW authorization if an action could affect an  
            endangered or rare native plant unless it fits into an  
            exemption for agricultural activities, timber operations or  
            mining.

          3)Requires a Lake or Streambed Alteration Agreement with DFW in  
            order to protect and conserve fish and wildlife resources if  








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            an activity could change the bed, bank or channel of a stream  
            or lake.

          4)States that specified activities to assure the maintenance,  
            restoration, or enhancement of a natural resource, including  
            small habitat restoration projects for fish, plants or  
            wildlife that do not exceed five acres in size, are  
            categorically exempt from further review under the California  
            Environmental Quality Act (CEQA).

          5)Provides DFW with an expedited mechanism to approve specific  
            types of voluntary on-the-ground habitat restoration projects  
            that benefit Coho salmon.  Projects eligible for the approval  
            are limited to projects within a region described in an  
            adopted state or federal Coho salmon recovery plan that do one  
            or more of the following:  restore stream banks, modify water  
            crossings, or place wood to enhance habitat or increase stream  
            complexity.  Eligible projects are also limited to projects  
            that are less than five acres in size or 500 linear feet.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:  

          1)Increased annual costs to DFW in the $500,000 to $1 million  
            range, partially offset by fees, to develop and staff the new  
            permitting program (Habitat Restoration and Enhancement  
            Account (HREA) and Fish and Game Preservation Fund (FGPF)).

          2)One-time cost of approximately $250,000 for DFW to develop a  
            new database (HREA and FGPF).

           COMMENTS  :  The author has introduced this bill to provide  
          private landowners, conservation organizations and local public  
          agencies with streamlined access to the environmental permits  
          required for small (less than five acres) ecosystem and urban  
          watershed restoration projects.  By providing an efficient path  
          for regulatory compliance, the author seeks to create new  
          opportunities for much-needed rural, urban, coastal, and inland  
          ecosystem restoration projects.  As the legislative findings and  
          declarations in this bill indicate, California is home to many  
          species that are threatened or endangered, and for some of these  
          species, immediate recovery actions are necessary to avoid  
          further population declines or extinctions.  While tremendous  
          demand exists for small-scale ecosystem restoration projects,  








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          current regulatory mechanisms create barriers to the ability of  
          many willing private landowners and local governments to  
          efficiently access the necessary permits to implement the  
          projects.  Since demand for these public benefit projects  
          outpaces the regulatory approval process's capacity, hundreds of  
          small projects designed to benefit California's most vulnerable  
          wildlife species are not being implemented.

          Current law generally requires that project proponents secure  
          CEQA, CESA, Water Board permits, and streambed alteration  
          agreement permits for many kinds of small-scale ecosystem  
          restoration projects.  Backlogs and delays associated with  
          permitting have been identified as substantial barriers to  
          implementing these small voluntary restoration projects in many  
          regions throughout the state.  This bill is designed to provide  
          the DFW with a more efficient process for reviewing and  
          approving small, voluntary restoration projects.  One of the  
          ways it does this is by requiring that more detailed information  
          necessary for approval of the project be provided upfront in the  
          application.  Eligible projects would be limited to small-scale,  
          voluntary projects of five acres or less.  Project applicants  
          would be required to demonstrate, among other things, that the  
          project is consistent with existing state or federal recovery  
          plans or other specified policies, would provide a net benefit  
          to affected habitats and species, and would not result in  
          cumulative impacts.  

          A similar measure was enacted last session, but only applied to  
          a more narrow group of projects designed to assist in recovery  
          of Coho salmon habitat.  AB 1961 (Huffman), Chapter 541,  
          Statutes of 2012, established the Coho Help Act which  
          streamlined and expedited the approval process for Coho salmon  
          habitat enhancement projects in order to prevent extinction.   
          The habitat projects were limited to areas with an approved Coho  
          salmon recovery plan and included modifications of water  
          crossings to remove barriers to fish passage (e.g. replacing  
          culverts), stream bank restoration, and wood placement to  
          increase the complexity of stream flow (e.g. placing wood stumps  
          or logs to form pools).  

          Supporters of this bill, who include groups that work with  
          farmers, ranchers, water districts, local governments and  
          nonprofits on ecosystem restoration strategies, assert that  
          important habitat restoration work to benefit vulnerable  








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          wildlife species in California could be significantly ramped up  
          to meet the demand and need for this work if a new, consolidated  
          environmental permitting process were developed for small-scale  
          voluntary ecosystem restoration projects.  Supporters assert  
          this bill will simplify the permitting process at DFW for  
          landowners, state and local governments, and conservation  
          organizations proposing to implement small-scale environmentally  
          beneficial projects, while also ensuring compliance with  
          necessary environmental protections.  Supporters also assert  
          this bill will assist DFW in meeting goals for species recovery.


           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096


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