BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2329 (Ruskin)
          
          Hearing Date:  08/12/2010           Amended: 08/02/2010
          Consultant:  Brendan McCarthy   Policy Vote: EQ 5-2














































          AB 2329 (Ruskin), Page 2


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          BILL SUMMARY: AB 2329 requires the Natural Resources Agency to  
          develop a climate change adaptation strategy by 2012 and update  
          it every three years. The bill establishes in statute the  
          Climate Action Team and directs it to coordinate state policy to  
          achieve the state's greenhouse gas emission reduction targets.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Developing adaptation plan        $175        $350       
          $350Various *

          Climate Action Team staffing      $250        $500       
          $500Special **

          * General Fund, bond funds, and several special funds.  
          Ultimately, these costs could be offset with fees.
          ** Air Pollution Control Fund. Ultimately, these costs are  
          likely to be offset with fees.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.

          Under Executive Orders S-3-05 and S-20-06, the Governor  
          established goals for the reduction of greenhouse gas emissions  
          in the state and directed the California Environmental  
          Protection Agency to coordinate multi-agency efforts to meet  
          those goals. Under this authority, the Secretary for  
          Environmental Protection created the Climate Action Team, which  
          is made up of the heads several state agencies and departments.

          Under AB 32 (Nunez, Chapter 488, Statutes of 2006), the Air  
          Resources Board is required to approve a statewide greenhouse  
          gas emission limit, such that statewide emissions in 2020 are  
          equal to emissions in 1990. The Air Resources Board is required  
          to implement regulatory measures to reduce emissions to meet  
          that target. Pursuant to AB 32, the Air Resources Board is  
          currently considering the imposition of a fee on greenhouse gas  
          emitters to pay for the state's regulatory costs under AB 32.

          Pursuant to Executive Order S-13-08, the Natural Resources  







          AB 2329 (Ruskin), Page 2


          Agency prepared the 2009 California Climate Adaptation Strategy.  
          The document summarizes the current scientific research into  
          climate change impacts and provides recommendations on how to  
          manage those impacts.

          AB 2329 requires the Natural Resources Agency, in coordination  
          with other state agencies, to prepare a climate change  
          adaptation report by June 1, 2012 and update that report every  
          three years. The plan required under the bill shall follow up on  
          the findings of the 2009 plan and address progress on the  
          strategies identified in that plan. The bill specifies that the  
          required plan will serve as the state's climate adaptation  
          document for purposes of any federal law requiring such a plan.

          Based on the requirements in the bill and the state's experience  
          developing the previous plan, staff estimates the cost to  
          develop the new plan and required updates to be about $350,000  
          per year. These costs would be covered with a variety of funding  
          sources, including the General Fund, bond funds, and several  
          special funds. Once the Air Resources Board begins collecting  
          its greenhouse gas emission fee, those fee revenues could be  
          used to offset these costs.

          AB 2329 establishes the Climate Action Team in statute. The  
          Climate Action Team is to be chaired by the Secretary for  
          Environmental Protection, with a specified membership of agency  
          and department heads. The bill authorizes the Climate Action  
          Team to establish staff working groups to address issues  
          relating to specific issues. The bill directs the Climate Action  
          Team to coordinate state efforts to achieve the state's  
          greenhouse gas emission reduction targets. 

          While the Climate Action Team currently operates based on  
          executive orders and administrative action by the Secretary for  
          Environmental Protection, AB 2329 puts these requirements into  
          law. This creates ongoing funding requirements on CalEPA and  
          other departments (which cannot be undone by a future governor,  
          unlike executive orders and administrative decisions). Therefore  
          the bill imposes ongoing costs to the various agencies and  
          departments.

          CalEPA indicates that it currently has five staff positions  
          supporting activities of the Climate Action Team. Continuing  
          this level of support will cost about $500,000 per year. These  
          costs are currently supported from the Air Pollution Control  
          Fund (which has been supported by several loans from other  







          AB 2329 (Ruskin), Page 2


          special funds). The Air Resources Board is currently considering  
          the imposition of a fee on greenhouse gas emitters which will  
          likely support Climate Action Team activities in the future.