BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1006
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          SENATE THIRD READING
          SB 1006 (Pavley)
          As Amended  June 21, 2010
          Majority vote 

           SENATE VOTE  :22-14  
           
           LOCAL GOVERNMENT    6-3         NATURAL RESOURCES   5-3         
           
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          |Ayes:|Caballero, Arambula,      |Ayes:|Chesbro, Brownley, De     |
          |     |Bradford, Coto,           |     |Leon, Hill,               |
          |     |Davis, Monning            |     | Skinner                  |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Smyth, Knight, Logue      |Nays:|Gilmore, Knight, Logue    |
          |     |                          |     |                          |
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          APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Bradford,        |     |                          |
          |     |Huffman, Coto, Davis, De  |     |                          |
          |     |Leon, Gatto, Hall,        |     |                          |
          |     |Skinner, Solorio,         |     |                          |
          |     |Torlakson, Torrico        |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Conway, Harkey, Miller,   |     |                          |
          |     |Nielsen, Norby            |     |                          |
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          SUMMARY  :  Expands list of the type of data and information the  
          Strategic Growth Council 
          (Council) must provide a local government regarding the  
          development and planning of sustainable communities to include  
          climate change adaptation strategies, projects, or activities;  
          and, expands the list of eligible applicants for urban greening  
          project and planning monies.  Specifically,  this bill  :

          1)Expands the requirement that the Council provide, fund, and  
            distribute data and information to local governments and  
            regional agencies that will assist in the development and  








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            planning of sustainable communities, to include providing  
            information regarding climate change adaptation strategies,  
            projects, or activities that do all of the following: 

             a)   Protect, conserve, restore, or enhance natural ecosystem  
               functions;

             b)   Use effective approaches to protect communities from the  
               impacts of climate change, including practices that  
               utilize, enhance, or mimic natural processes and functions;  
               and,

             c)   Avoid or minimize, or both, environmental degradation  
               and emission of greenhouse gases.

          2)Requires the Council to identify and review activities and  
            funding programs of member state agencies that may be  
            coordinated to address climate change.

          3)Adds special districts and joint powers authorities to the  
            list of eligible applicants for urban greening projects and  
            plans.

          4)Specifies that an eligible joint powers authority must contain  
            at least one member that individually would qualify as an  
            eligible applicant for the financial assistance. 
          5)Clarifies the definition of financial assistance to mean any  
            of the following:

             a)   A revolving loan;

             b)   A grant, only if the applicant lacks the fiscal capacity  
               to carry out the project without a grant in accordance with  
               developed criteria; or,

             c)   Planning grants and planning incentives, including  
               revolving loan programs and other methods to encourage the  
               development of regional and local land use plans that are  
               designed to promote water conservation, reduce automobile  
               use and fuel consumption, encourage greater infill and  
               compact development, protect natural resources and  
               agricultural lands, and revitalize urban and community  
               centers, as prescribed. 









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           EXISTING LAW  :

          1)Establishes the Council, requires the Council to take certain  
            actions with regard to coordinating specified programs of  
            member state agencies, and requires the Council to manage and  
            award grants and loans to support the planning and development  
            of sustainable communities.

          2)Directs the Council to do all of the following:

             a)   Identify and review activities and funding programs of  
               member state agencies that may be coordinated to improve  
               air and water quality, improve natural resource protection,  
               increase the availability of affordable housing, improve  
               transportation, meet the goals 
             of AB 32 (Nunez), Chapter 488, Statutes of 2006, encourage  
               sustainable land use planning, and revitalize urban and  
               community centers in a sustainable manner;

             b)   Review and comment on the state's five-year  
               infrastructure plan and Environmental Goals and Policy  
               Report;

             c)   Recommend policies and investment strategies to the  
               Governor, Legislature, and appropriate state agencies to  
               encourage the development of sustainable communities;

             d)   Provide, fund, and distribute data and information to  
               local governments and regional agencies that will assist in  
               developing and planning sustainable communities;

             e)   Manage and award grants and loans to support the  
               planning and development 
             of sustainable communities, pursuant to the provisions of  
               this bill, for which specified implementation actions may  
               be employed; and,

             f)   Provide, no later than July 1, 2010, and every year  
               thereafter, a report to the Legislature that shall include,  
               but not be limited to, a list of applicants for financial  
               assistance, identification of which applications were  
               approved, the amounts awarded for each approved  
               application, the remaining balance of available funds, a  
               report on the proposed or ongoing management of each funded  








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               project, and any additional minimum requirements and  
               priorities for a project or plan proposed in a grant or  
               loan application developed and adopted by the Council.

          3)Requires an applicant for financial assistance for a plan or  
            project pursuant to this bill to declare its intention to  
            follow a detailed budget and schedule.

          4)Requires a project or plan funded pursuant to this bill to be  
            consistent with the state's planning policies and reduce (as  
            permanently as is feasible) greenhouse gas emissions  
            consistent with AB 32.

          5)Directs the Council to manage and award financial assistance  
            to a city, county, or nonprofit organization for preparing,  
            planning, and implementing urban greening projects that  
            provide multiple benefits, as specified, and are not  
            mitigation actions required under existing law.

          6)Specifies that this financial assistance shall be funded by  
            the $90 million in Proposition 84 funds allocated for urban  
            greening projects.

          7)Allows up to 25% of the moneys allocated for urban greening by  
            Proposition 84 to be used 
          to award revolving loans or grants to a COG, countywide  
            authority, metropolitan planning organization, local  
            government, or nonprofit organization for the purpose of  
            creating urban greening plans.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Minor costs, ranging from the tens of thousands of dollars to  
            a couple hundred thousand dollars, to the council to provide  
            information on climate change adaptation to local governments  
            and JPAs.  (Proposition 84 bond funds).

          2)Cost pressure of an unknown amount but potentially in the  
            millions of dollars resulting from expansion of the types of  
            entities that may receive financial assistance from the  
            Council.  (Proposition 84 bond funds)

           COMMENTS  :  According to the author, "California is at the  








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          forefront of climate change solutions that achieve significant,  
          near-term reductions in the carbon pollution that is causing  
          global warming.  Notwithstanding these essential mitigation  
          measures, California is already experiencing dramatic,  
          unavoidable climate change impacts due to carbon pollution  
          already committed to the atmosphere and oceans.

          These climate change impacts include documented sea-level rise,  
          increased erosion, increased weather severity, altered water  
          cycles, reduced snowpack and earlier snow melt, increased  
          wildfire occurrence and severity, altered rainfall patterns,  
          disrupted food supply, and migration of plant and animal  
          species.  These impacts could expose the state and local  
          governments to trillions of dollars in costs.

          Thus, in addition to mitigation, state and local governments  
          must strategically plan to adapt to these and other unavoidable  
          climate change impacts.  Social, cultural, and economic  
          resilience to these impacts is fundamentally rooted in  
          ecological resilience and attention must be given to addressing  
          the impacts of climate change on natural ecosystems.  The state  
          has recognized the importance of adaptation in developing the  
          California Climate Adaptation Strategy, which summarizes the  
          best known science on climate change impacts in seven specific  
          sectors and provides state-level recommendations on how to  
          manage against those threats."

          This bill requires the Council to develop and distribute  
          information to local governments and regional agencies that will  
          assist those entities to develop and implement climate change  
          adaptation strategies that protect natural ecosystem functions,  
          use effective approaches to protect communities from the impacts  
          of climate change, and avoid or minimize environmental  
          degradation and emission of greenhouse gases.

          Existing law allocates the $90 million Proposition 84 provides  
          for urban greening projects.  
          It requires the Council to develop and implement a grant program  
          for urban greening projects that provide multiple community  
          benefits, and provides that the multiple benefits include, but  
          are not limited to, tree canopy, urban forestry, local parks and  
          open space, greening of existing lands and structures,  
          multi-objective storm water projects, urban streams, various  
          public gardens and orchards, heat island mitigation and energy  








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          conservation efforts, and non-motorized urban trails.  Existing  
          law allows up to 25% of the moneys allocated for urban greening  
          by Proposition 84 to be used to award revolving loans or grants  
          to a COG, countywide authority, metropolitan planning  
          organization, local government, or nonprofit organization for  
          the purpose of creating urban greening plans.  SB 1006 adds  
          joint powers authorities and special districts to the list of  
          eligible applicants for these funding opportunities.
           
           Support Arguments:  The sponsors, Audubon California, Defenders  
          of Wildlife, and The Nature Conservancy, state that "in addition  
          to reducing emissions, state and local governments must  
          strategically plan to help people and nature adapt to the  
          current and expected impacts from climate change.  Social,  
          cultural, and economic resilience to these impacts is  
          fundamentally rooted in ecological resilience and SB 1006 plays  
          a critical role in catalyzing innovative actions to address the  
          impacts of climate change on natural ecosystems and in so doing,  
          protect human communities."  Supporters also believe that  
          expanding the list of eligible funding applicants for the urban  
          greening projects and plans is critical.
           
           Opposition Arguments:  Opposition, including the California  
          Building Industry Association, believes that provisions of the  
          bill directing the Council to adopt climate adaptation  
          guidelines for non-state (local and regional) agencies conflict  
          with actions and processes already underway by the Climate  
          Adaptation Advisory Panel, and furthermore, are drafted in a way  
          that focuses solely on achieving environmental benefits without  
          accounting for or considering economic factors.  Opposition  
          believes that the direction to the Council to develop climate  
          adaptation guidelines for local and regional governments is  
          premature and has the potential to conflict with the work of the  
          Climate Adaptation Advisory Panel.


           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958

                                                               FN:  0006038