Assembly BillChaptered/SignedPublic Resources
AB 706: Forest Organic Residue, Energy, and Safety Transformation (FOREST) and Wildfire Prevention Fund Act.
What AB 706 does, verified October 2, 2026
The bill aims to reduce wildfires by up to 15,000,000 bone-dry tons of forest biomass waste per year. It establishes a forest and wildfire prevention fund to support the program, which will continuously appropriate funds to the natural resources agency. The program will prioritize funding for bioenergy projects that use biofuel from high hazard zones. The goal is to support sufficient procurement, transport, and beneficial use of forest biomass waste to reduce wildfire fuel. The program will focus on reducing fuel for wildfires and will be implemented through the fire fuel reduction program.
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Last action: Chaptered by Secretary of State - Chapter 869, Statutes of 2026. (2026-09-30)Alert me
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| Sep. 30, 2026 | Chaptered by Secretary of State - Chapter 869, Statutes of 2026. |
| Sep. 30, 2026 | Approved by the Governor. |
| Sep. 04, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 27, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 6684.). |
| Aug. 27, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 30, 2026 · 4,295 words
Assembly Bill No. 706
CHAPTER 869
An act to amend Sections 4629.6 and 4629.8 of, and to add Article 12 (commencing with Section 4773) to Chapter 10 of Part 2 of Division 4 of, the Public Resources Code, relating to forestry.
[ Approved by Governor September 30, 2026. Filed with Secretary of State September 30, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 706, Aguiar-Curry. 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 state’s 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 facility’s 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.
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) Forest waste has accumulated dramatically across California over the last many years. The State Energy Resources Conservation and Development Commission estimates California has 47,000,000 bone-dry tons of biomass resource potential.
(b) Since Governor Edmund G. Brown, Jr., issued Executive Order No. B-52-18 on May 10, 2018, all partners, including federal, state, tribal entities, and nongovernmental organizations, have worked diligently to attempt to treat 1,000,000 acres annually to ameliorate the wildfire crisis.
(c) The Wildfire and Forest Resilience Task Force reports that as of at least 2023, the state has not yet met that goal, indicating that 727,269 acres are treated across the state.
(d) Wildfire impacts of the last several years require California to make forest recovery efforts for millions of acres of forest.
(e) According to the research of the State Air Resources Board and the United States Forest Service, wildfires release vast amounts of carbon dioxide, methane, and black carbon into the atmosphere that negate the benefits of renewable energy adoption and emissions regulations.
(f) The destruction of millions of acres of forest lands depletes natural carbon sinks, reducing the state’s ability to sequester future emissions.
(g) Without proactive forest management strategies, including fuel reduction and biomass utilization, wildfires will continue to erode California’s climate gains.
(h) The Joint Institute for Wood Products Innovation, an advisory committee to the State Board of Forestry and Fire Protection, reports that meeting the 1,000,000-acre treatment goal will require removal and subsequent disposal of an estimated 5,000,000 to 15,000,000 bone-dry tons of dead forest biomass waste annually from a range of vegetation management projects for forest restoration and identifies a conservative estimate that since 2018, at least 1,000,000 tons of material is stored on the landscape, with a significant amount of that accumulation accessible for removal and disposal.
(i) A report published by Bain and Company in collaboration with The Nature Conservancy, entitled “Accelerating Forest Restoration: Stimulating a Forest-Restoration Economy and Rebuilding Resilience in California’s Fire-Adapted Forests” concluded that the expanded use of existing technologies, including bioenergy and sawmills, offers the most promising means of accelerating forest restoration, in addition to forest waste materials that need to be disposed of from wildfire scars to support resiliency.
(j) The current Bioenergy Renewable Auction Mechanism (BioRAM) procurement, as stated by the Public Utilities Commission, is currently allocated to all customers given that there are broad social benefits that are realized from supporting wildfire mitigation and the limited energy procurement standards of the program have been or are nearly fully subscribed.
(k) Senate Bill 1122 of the 2011–12 Regular Session of the Legislature (Chapter 612 of the Statutes of 2012), mandates the development of 250 megawatts (MW) of small-scale bioenergy projects using organic waste, including at least 50 MW from forest waste removed for wildfire mitigation or restoration. Very few of these required megawatts are currently in operation. Despite this shortfall, the Public Utilities Commission ended the Bioenergy Market Adjusting Tariff (BioMAT) program that was established to meet the requirements of Senate Bill 1122 of the 2011–12 Regular Session of the Legislature (Chapter 612 of the Statutes of 2012) on December 31, 2025, stalling the development of new projects.
(l) To meet the 1,000,000-acre-per-year goal would require California to remove 5,000,000 to 15,000,000 bone-dry tons of forest biomass waste annually, enough for the procurement of between 625 MW to 1,875 MW of bioenergy annually.
(m) Given that only 135 MW of BioRAM and BioMAT plants are operational, California must procure an additional 1,740 MW of bioenergy to get to the point of 15,000,000 bone-dry tons of forest waste removal annually.
(n) Biomass is primarily managed through open pile burning that produces significantly more emissions than biomass energy facilities. Processing biomass in a cogeneration facility reduces particulate matter emissions by as much as 98 percent, nitrous oxide (NOx) emissions by as much as 54 percent, and carbon monoxide (CO) emissions by as much as 97 percent.
(o) A study entitled “Up in smoke: California’s greenhouse gas reductions could be wiped out by 2020 wildfires” found that wildfires in 2020 negated 18 years of greenhouse gas emissions reductions.
(p) Oversight of biomass plant emissions in California is conducted by local air pollution control districts and the United States Environmental Protection Agency, which reserve issuing authority for plant operating permits known as Title V Operating Permits as part of the 1990 amendments to the federal Clean Air Act (42 U.S.C. Sec. 7661 et seq.), which requires continuous emissions monitoring for ozone, CO, and NOx.
(q) Continuously monitoring these critical parameters ensures consistent and efficient combustion in the boilers and safe air quality levels.
(r) A recent report by the Clean Air Task Force found that bioenergy creates more jobs than other renewable resources and a higher proportion of those jobs are permanent and high-paying jobs.
SEC. 2.
Section 4629.6 of the Public Resources Code is amended to read:4629.6.
Moneys deposited in the fund shall, upon appropriation by the Legislature, only be expended for the following purposes:(a) To reimburse the State Board of Equalization for its administrative costs associated with the administration, collection, audit, and issuance of refunds related to the lumber products and engineered wood assessment established pursuant to Section 4629.5.
(b) To pay refunds issued pursuant to Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code.
(c) To support the activities and costs of the department, the Department of Conservation, the Department of Fish and Wildlife, the State Water Resources Control Board, and regional water quality control boards associated with the review of projects or permits necessary to conduct timber operations. On or after July 1, 2013, except for fees applicable for fire prevention or protection within state responsibility area classified lands or timber yield assessments, no currently authorized or required fees shall be charged by the agencies listed in this subdivision for activities or costs associated with the review of a project, inspection and oversight of projects, and permits necessary to conduct timber operations of those departments and boards.
(d) For transfer to the department’s Forest Improvement Program for forest resources improvement grants and projects administered by the department pursuant to Chapter 1 (commencing with Section 4790) and Chapter 2 (commencing with Section 4799.06) of Part 2.5.
(e) To fund existing restoration grant programs, with priority given to the Fisheries Restoration Grant Program administered by the Department of Fish and Wildlife and grant programs administered by state conservancies.
(f) To fund costs directly associated with only the administration, staffing, and creation of the “FOREST Fund” and “FOREST Program” as defined in Section 4773.1, not to exceed the fee revenue allocated for these purposes.
(g) To the department for fuel treatment grants and projects pursuant to authorities under the Wildland Fire Protection and Resources Management Act of 1978 (Article 1 (commencing with Section 4461) of Chapter 7).
(h) To the department to provide grants to local agencies responsible for fire protection, qualified nonprofits, recognized tribes, local and state governments, and resources conservation districts, undertaken on a state responsibility area (SRA) or on wildlands not in an SRA that pose a threat to the SRA, to reduce the costs of wildland fire suppression, reduce greenhouse gas emissions, promote adaptation of forested landscapes to changing climate, improve forest health, and protect homes and communities.
(i) To the Natural Resources Agency to provide a reasonable per diem for attendance at a meeting of the advisory body for the state’s forest practice program by a member of the body who is not an employee of a government agency.
SEC. 2.5.
Section 4629.6 of the Public Resources Code is amended to read:4629.6.
Moneys deposited in the fund shall, upon appropriation by the Legislature, only be expended for the following purposes:(a) To reimburse the State Board of Equalization for its administrative costs associated with the administration, collection, audit, and issuance of refunds related to the lumber products and engineered wood assessment established pursuant to Section 4629.5.
(b) To pay refunds issued pursuant to Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code.
(c) To support the activities and costs of the department, the Department of Conservation, the Department of Fish and Wildlife, the State Water Resources Control Board, and regional water quality control boards associated with the review of projects or permits necessary to conduct timber operations. On or after July 1, 2013, except for fees applicable for fire prevention or protection within state responsibility area classified lands or timber yield assessments, no currently authorized or required fees shall be charged by the agencies listed in this subdivision for activities or costs associated with the review of a project, inspection and oversight of projects, and permits necessary to conduct timber operations of those departments and boards.
(d) For transfer to the department’s Forest Improvement Program for forest resources improvement grants and projects administered by the department pursuant to Chapter 1 (commencing with Section 4790) and Chapter 2 (commencing with Section 4799.06) of Part 2.5.
(e) To fund existing restoration grant programs, with priority given to the Fisheries Restoration Grant Program administered by the Department of Fish and Wildlife and grant programs administered by state conservancies.
(f) To fund costs directly associated with only the administration, staffing, and creation of the “FOREST Fund” and “FOREST Program” as defined in Section 4773.1, not to exceed the fee revenue allocated for these purposes.
(g) To support demonstration state forests, as a supplemental source, if necessary, to the moneys provided by the Forest Resources Improvement Fund, as established pursuant to Section 4799.13, as needed.
(h) To the department for fuel treatment grants and projects pursuant to authorities under the Wildland Fire Protection and Resources Management Act of 1978 (Article 1 (commencing with Section 4461) of Chapter 7).
(i) To the department to provide grants to local agencies responsible for fire protection, qualified nonprofits, recognized tribes, local and state governments, and resources conservation districts, undertaken on a state responsibility area (SRA) or on wildlands not in an SRA that pose a threat to the SRA, to reduce the costs of wildland fire suppression, reduce greenhouse gas emissions, promote adaptation of forested landscapes to changing climate, improve forest health, and protect homes and communities.
(j) To the Natural Resources Agency to provide a reasonable per diem for attendance at a meeting of the advisory body for the state’s forest practice program by a member of the body who is not an employee of a government agency.
SEC. 3.
Section 4629.8 of the Public Resources Code is amended to read:4629.8.
(a) Funds deposited in the fund shall be appropriated in accordance with the following priorities:(1) First priority shall be for funding associated with the administration and delivery of responsibilities identified in subdivisions (a) to (c), inclusive, of Section 4629.6.
(2) Only after paragraph (1) is funded, the second priority shall be, if deposits are sufficient in future years to maintain the fund, by 2016, at a minimum reserve of four million dollars ($4,000,000), for use and appropriation by the Legislature in years during which revenues to the account are projected to fall short of the ongoing budget allocations for support of the activities identified in paragraph (1).
(3) Only after paragraphs (1) and (2) are funded, the third priority shall be in support of activities designated in subdivisions (d) to (f), inclusive, of Section 4629.6.
(4) Only after paragraphs (1) to (3), inclusive, are funded, the fourth priority shall be to support the activities designated in subdivisions (g) to (i), inclusive, of Section 4629.6.
(b) A purpose identified in a lower priority paragraph of subdivision (a) shall not receive an appropriation, allocation, transfer, encumbrance, or expenditure from the fund in a fiscal year unless each purpose identified in the higher priority paragraphs of subdivision (a) has first been funded for that fiscal year.
(c) Funds shall not be used to pay for or reimburse any requirements, including mitigation of a project proponent or applicant, as a condition of any permit.
SEC. 3.5.
Section 4629.8 of the Public Resources Code is amended to read:4629.8.
(a) Funds deposited in the fund shall be appropriated in accordance with the following priorities:(1) First priority shall be for funding associated with the administration and delivery of responsibilities identified in subdivisions (a) to (c), inclusive, of Section 4629.6.
(2) Only after paragraph (1) is funded, the second priority shall be, if deposits are sufficient in future years to maintain the fund, by 2016, at a minimum reserve of four million dollars ($4,000,000), for use and appropriation by the Legislature in years during which revenues to the account are projected to fall short of the ongoing budget allocations for support of the activities identified in paragraph (1).
(3) Only after paragraphs (1) and (2) are funded, the third priority shall be in support of activities designated in subdivisions (d) to (f), inclusive, of Section 4629.6.
(4) Only after paragraphs (1) to (3), inclusive, are funded, the fourth priority shall be to support the activities designated in subdivisions (g) to (j), inclusive, of Section 4629.6.
(b) A purpose identified in a lower priority paragraph of subdivision (a) shall not receive an appropriation, allocation, transfer, encumbrance, or expenditure from the fund in a fiscal year unless each purpose identified in the higher priority paragraphs of subdivision (a) has first been funded for that fiscal year.
(c) Funds shall not be used to pay for or reimburse any requirements, including mitigation of a project proponent or applicant, as a condition of any permit.
SEC. 4.
Article 12 (commencing with Section 4773) is added to Chapter 10 of Part 2 of Division 4 of the Public Resources Code, to read:Article 12. Forest Organic Residue, Energy, and Safety Transformation (FOREST) and Wildfire Prevention Fund Act
4773.
(a) This article shall be known, and may be cited, as the Forest Organic Residue, Energy, and Safety Transformation and Wildfire Prevention Fund Act, or the FOREST and Wildfire Prevention Fund Act.(b) The Legislature finds and declares that bioenergy is a renewable energy resource that provides baseload energy that enhances grid reliability while meeting the clean firm energy requirement of Public Utilities Commission Decision 21-06-035 (June 30, 2021), and that supporting new and existing biomass power generation resources in the state and revitalizing idle facilities by creating additional capacity for power generation and feedstock utilization in strategically located regions of the state will help the state to meet its goals to reduce greenhouse gas emissions, provide clean power, improve electrical grid resiliency, protect jobs, reduce the risk of wildfire, support forest recovery efforts, improve forest resiliency, and provide waste disposal benefits.
4773.1.
For purposes of this article, the following definitions apply:(a) “Biomass” means the materials described in subdivision (a) of Section 40106.
(b) “Forest biomass waste” means the byproducts of forest management for wildfire mitigation, wildfire prevention, forest resiliency, forest restoration, or the protection of public safety or infrastructure. Forest biomass waste does not include purpose-grown crops.
(c) “FOREST fund” means the FOREST and Wildfire Prevention Fund established in Section 4773.3.
(d) “FOREST program” means the Forest Organic Residue Energy and Safety Transformation program implemented by the board.
4773.2.
(a) Upon appropriation by the Legislature, moneys from the Timber Regulation and Forest Restoration Fund, created by Section 4629.3, or from the Greenhouse Gas Reduction Fund, created by Section 16428.8 of the Government Code, shall be made available to the board to establish and implement the Forest Organic Residue Energy and Safety Transformation 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.(b) A facility’s electrical generation is eligible for reimbursement under the FOREST program at the incentive rate determined pursuant to subdivision (c) if it satisfies all of the following requirements:
(1) (A) The facility uses feedstock that is forest biomass waste to generate electricity, pursuant to the requirements in subparagraphs (B) and (C).
(B) The facility shall use forest biomass waste that is a byproduct of sustainable forestry management, including, but not limited to, removal of dead and dying trees from Tier 1 and Tier 2 high hazard zones, as those terms are defined in Section 399.20.3 of the Public Utilities Code, and shall not use forest biomass waste from lands that are subject to the clearcut silvicultural prescription, as defined by the board.
(C) No less than 60 percent of the feedstock used by a facility shall originate from Tier 1 and Tier 2 high hazard zones, as those terms are defined in Section 399.20.3 of the Public Utilities Code.
(2) The electricity is generated on or after January 1, 2027.
(3) The electricity is generated within the state and sold to a retail seller, including a community choice aggregator, local publicly owned electric utility, electrical corporation, or electrical rural cooperative.
(4) The facility is located within the County of Alpine, Amador, Butte, Calaveras, Del Norte, El Dorado, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, or Yuba, or the facility meets emission limits equivalent to, or more stringent than, the applicable best available retrofit control technology, as determined by the local air pollution control district or air quality management district.
(c) (1) An operator of a facility may seek reimbursement by submitting an application to the board that demonstrates that the facility processes forest biomass waste to generate electricity and by submitting supporting documentation that demonstrates the facility is certified by the State Energy Resources Conservation and Development Commission as an eligible renewable energy resource for purposes of satisfying the renewable portfolio standard pursuant to Chapter 8.6 (commencing with Section 25740) of Division 15.
(2) An application shall include monthly invoices that document eligible electricity generation. The board shall review the submitted invoices and make monthly incentive payments to each applicant for the electricity generation that is eligible for reimbursement at the incentive rate. The board shall determine, maintain, and make publicly available the incentive rate for eligible electricity generation.
(3) (A) In prioritizing reimbursement for eligible applications pursuant to this section, the board shall maximize the disposition of forest biomass waste.
(B) The board, in consultation with the Department of Forestry and Fire Protection, shall ensure that an applicant receiving reimbursement pursuant to this section operates a facility that achieves a net reduction in short-lived climate pollutants.
(d) (1) Upon establishment of the FOREST program pursuant to subdivision (a), the board shall adopt regulations, as necessary, to implement the FOREST program.
(2) (A) The board may readopt any emergency regulation adopted pursuant to this section, as necessary, that is the same as or is substantially equivalent to an emergency regulation previously adopted pursuant to this section.
(B) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulation adopted or readopted pursuant to this section shall remain in effect until revised by the board.
(3) The adoption or readoption of a regulation pursuant to this section does not constitute a project for purposes of Division 13 (commencing with Section 21000).
4773.3.
(a) The FOREST and Wildfire Prevention Fund is established in the State Treasury, and moneys in the fund shall be available, upon appropriation by the Legislature, to the Natural Resources Agency for the purpose identified in subdivision (b).(b) The purpose of the FOREST fund is to reduce organic fuel sources that increase fire risk by providing funding for the FOREST program established pursuant to Section 4773.2.
4773.4.
Ratepayer funds shall not be used to fund the FOREST fund.SEC. 5.
(a) Section 2.5 of this bill incorporates amendments to Section 4629.6 of the Public Resources Code proposed by both this bill and Assembly Bill 2494. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 4629.6 of the Public Resources Code, and (3) this bill is enacted after Assembly Bill 2494, in which case Section 2 of this bill shall not become operative.(b) Section 3.5 of this bill incorporates amendments to Section 4629.8 of the Public Resources Code proposed by both this bill and Assembly Bill 2494. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 4629.8 of the Public Resources Code, and (3) this bill is enacted after Assembly Bill 2494, in which case Section 3 of this bill shall not become operative.
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