BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2193 (Gordon) - Habitat Restoration and Enhancement Act.
          
          Amended: August 4, 2014         Policy Vote: NR&W 9-0
          Urgency: No                     Mandate: No
          Hearing Date: August 14, 2014                     Consultant:  
          Marie Liu     
          
          SUSPENSE. AS AMENDED.
          
          
          Bill Summary: AB 2193 would allow individual permits required  
          under the California Endangered Species Act (CESA), streambed  
          alteration statutes, and the Native Plant Protection Act to be  
          combined into a single permit application for a habitat  
          restoration or enhancement projects if the project meets  
          specified criteria.

          Fiscal Impact (as approved on August 14, 2014): 
              Minor and absorbable costs to the Habitat Restoration and  
              Enhancement Account within the Fish and Game Preservation  
              Fund (special) to DFW for increased and expedited permit  
              review.
              Unknown fee revenues, but likely minor, to the Habitat  
              Restoration and Enhancement Account.

          Background: Under the California Endangered Species Act (CESA),  
          the Department of Fish and Wildlife is the trustee for the fish  
          and wildlife resources of the state. CESA prohibits any act  
          which could directly or indirectly harm threatened or endangered  
          species unless authorized by DFW. Regulations generally require  
          that CESA reviews occur within 90 days.

          The Native Plant Protection Act requires DFW authorization for  
          actions that could affect an endangered or rare native plant  
          unless an exemption applies for agricultural activities, timber  
          operations or mining. 

          Section 1602 of the Fish and Game Code prohibits the substantial  
          diversion or obstruction of the natural flow of any river,  
          stream, or lake without approval from DFW. If DFW determines  
          that an activity may have a substantially adverse effect  
          existing fishing or wildlife resources, DFW may require  








          AB 2193 (Gordon)
          Page 1


          necessary measures to protect the resource as part of a  
          streambed alteration agreement. Streambed alteration agreements  
          are required to be acted upon within 90 days. Under �1609, the  
          director of DFW may established a schedule of fees for a  
          streambed alteration activities that are sufficient to pay the  
          total costs incurred by DFW in administering and enforcing the  
          chapter up to an inflation adjusted cap of $5,000. 

          The California Environmental Quality Act has a categorical  
          exemption for small habitat restoration projects for fish,  
          plants or wildlife that do not exceed five acres in size.  

          Proposed Law: This bill, titled the habitat Restoration and  
          Enhancement Act, would allow DFW to approve a habitat  
          restoration or enhancement project in lieu of any other permit  
          or other approval issued by DFW including, but not limited to  
          permits issued under CESA, the Native Plant Protection Act, and  
          the streambed alternation requirements.

          Eligible projects would be required to meet specified  
          requirements that include, among other things, that the project  
          is a voluntary and not required mitigation, that the project  
          does not exceed five acres in size, and that the project will  
          not result in cumulative negative environmental impacts. This  
          bill would specify certain information that must be included in  
          an application for a habitat restoration or enhancement project.  
          DFW would have 60 days to approve a habitat restoration or  
          enhancement project.

          This bill would establish a process for the director to suspend  
          project implementation should the project no longer meet  
          necessary requirements.

          This bill would establish the Habitat Restoration and  
          Enhancement Account within the Fish and Game Preservation Fund.  
          DFW would be authorized to establish a fee schedule to recover  
          all reasonable administrative and implementation costs of the  
          department. 

          The bill's provisions would sunset on January 1, 2022.

          Staff Comments: This bill would create a single new permit for a  
          habitat restoration or enhancement project that could be  
          obtained in lieu of at least three other permits. This permit  








          AB 2193 (Gordon)
          Page 2


          streamlining reduces the number of permits to be processed for a  
          particular process, but does not necessarily reduce the amount  
          of review that would need to be conducted by DFW under existing  
          law. However, the review would have to occur within 60 days,  
          which is expedited compared to the existing 90 day deadline for  
          streambed alteration agreements and CESA permits which would  
          result in additional costs to DFW. 

          Staff notes that it is the intent of the author that the  
          eligibility requirements for the habitat restoration or  
          enhancement project are such that if projects meet the  
          eligibility requirements, the project by nature will necessitate  
          minimal, if any, review. For such small projects, DFW should  
          incur minimal, if any, additional costs as a result of the  
          shortened timeline. However, the bill currently could allow  
          large projects with potential environmental impacts to be  
          eligible for a habitat restoration or enhancement permits, such  
          as wetland restoration and removal of fish passage barriers.

          As indicated by the bill's findings, the author anticipates that  
          this new permit process would increase the amount of projects  
          performed because of an eased permitting process. Should that be  
          the case, DFW would experience increased workload. The actual  
          increase is unknown as it would depend on the actual increase in  
          restoration activity and the size of the project. 

          The estimated staffing needs as a result of additional projects  
          being conducted and expedited review of large projects could be  
          up to $1.2 million depending on the scope of projects that  
          actually apply for the newly created permit.

          The bill allows DFW to establish a fee schedule for the new  
          restoration permit, which would occur through the adoption of  
          regulations. Staff notes that DFW only has the authority to  
          charge an administrative fee for streambed alternation permits  
          under existing law. There is no fee for permits issued under  
          CESA or the Native Plant Protection Act. Because the same review  
          work needs to be done, this fee provision would essentially  
          allow DFW to recover administrative costs for review under CESA  
          and the Native Plant Protection Act. However, in the case of  
          larger projects, it is unlikely that full cost recovery will  
          occur because if the new restoration permit costs are too high,  
          applicants are likely to apply for permits in the traditional  
          route where CESA and Native Plate review costs are unfunded.  








          AB 2193 (Gordon)
          Page 3


          Therefore it is unknown how much of DFW's costs will likely be  
          recovered through fees. 

          Author Amendments: 
           Limits eligibility for the streamlined permits to projects  
            that are also eligible for the State Water Resource Control  
            Board's General Water Quality Certification for Small Habitat  
            Restoration Projects, or its equivalent.
           Deletes other specified eligibility requirements.
           Specifies that no further authorization is needed if a project  
            activities have been authorized under a Certification Order  
            for Clean Water Act Section 401 General Water Quality  
            Certification for Small Restoration Projects.