AB 706: Forest Organic Residue, Energy, and Safety Transformation (FOREST) and Wildfire Prevention Fund Act.

Existing law establishes in the Natural Resources Agency the Department of Forestry and Fire Protection (CAL-FIRE) and makes CAL-FIRE responsible for, among other things, fire protection and prevention, as provided. Existing law establishes the State Board of Forestry and Fire Protection in CAL-FIRE to represent the states interest in the acquisition and management of state forests and requires the board to maintain an adequate forest policy. Former Governor Edmund G. Brown, Jr., issued a proclamation of a state of emergency on October 30, 2015, that required CAL-FIRE, the Natural Resources Agency, the Department of Transportation, and the State Energy Resources Conservation and Development Commission (Energy Commission), among other things, to identify areas of the state that represent high hazard zones for wildfire and falling trees, known as Tier 1 and Tier 2 high hazard zones.

Existing law creates the Timber Regulation and Forest Restoration Fund (Timber Fund) in the State Treasury and imposes an assessment on the purchase of a lumber product or an engineered wood product for storage, use, or other consumption in this state, at the rate of 1% of the sales price, for deposit into the Timber Fund. Existing law requires that moneys deposited in the Timber Fund, upon appropriation by the Legislature, only be expended for specified purposes, including, among other things, as a loan to the Department of Fish and Wildlife for activities to address environmental damage occurring on forest lands resulting from marijuana cultivation. Existing law specifies the funding priorities of the Timber Fund.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. The California Renewables Portfolio Standard Program requires every electrical corporation to file with the PUC a standard tariff for electricity generated by an electric generation facility, as defined, that qualifies for the tariff, is owned and operated by a retail customer of the electrical corporation, and is located within the service territory of, and developed to sell electricity to, the electrical corporation.

This bill would, upon appropriation by the Legislature, make moneys from the Timber Fund or from the Greenhouse Gas Reduction Fund available to the state board to establish and implement the Forest Organic Residue Energy and Safety Transformation (FOREST) program in order to maintain and expand biomass power generation in the state, to revitalize idle facilities for biomass power generation, and to support biomass power generation facilities by creating additional capacity for power generation or feedstock utilization in strategically located regions of the state. The bill would make a facilitys electrical generation eligible for reimbursement at an incentive rate determined by the state board if, among other things, the facility uses forest biomass waste, as defined, to generate electricity and the electricity is sold to specified retail sellers. The bill would require, among other things, that no less than 60% of the feedstock used by a facility originate from Tier 1 and Tier 2 high hazard zones, as defined, and would require the facility to be located in specified counties or meet specified emission limits. The bill would create an application process for an operator of a facility to seek this reimbursement that also requires the operator to demonstrate the facility is certified by the Energy Commission as an eligible renewable energy resource for purposes of the California Renewable Portfolio Standards Program, as provided, and would require the state board to adopt regulations to implement the FOREST program, as provided.

This bill would establish the FOREST and Wildfire Prevention Fund (FOREST Fund) in the State Treasury, and would make moneys in the FOREST Fund available, upon appropriation, to the Natural Resources Agency for the FOREST program, as specified. The bill would repeal the authorization to loan moneys in the Timber Fund for addressing marijuana cultivation damage, as described above, and would instead, in the same funding priority, authorize the Timber Fund to be expended to support the FOREST Fund and FOREST program, as specified. The bill would also specify certain procedures regarding the funding priorities of the Timber Fund so that each purpose identified in a higher priority is funded before a lower priority, as specified.

This bill would incorporate additional changes to Sections 4629.6 and 4629.8 of the Public Resources Code proposed by AB 2494 to be operative only if this bill and AB 2494 are enacted and this bill is enacted last.