BILL NUMBER: SB 237	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Senator Wolk

                        FEBRUARY 9, 2011

   An act to add Part 9 (commencing with Section 38700) to Division
25.5 of the Health and Safety Code, relating to greenhouse gas
emissions.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 237, as amended, Wolk. California Global Warming Solutions Act
of 2006: agriculture.
   The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum
technologically feasible and cost-effective greenhouse gas emission
reductions. The state board is authorized to adopt market-based
compliance mechanisms, as defined, meeting specified requirements to
be used for compliance with those regulations.
   This bill would  provide that an unspecified percentage of
funds generated from the state sale of emission allowances for
market-based compliance mechanisms adopted pursuant to the act and
funds from federal global warming programs shall be made available,
upon appropriation by the Legislature, to fund activities that will
reduce greenhouse gas emissions, or adapt to global warming, in the
state's agricultural sector   establish eligible uses of
funds allocated to the agricultural sector from revenue generated
from market-based compliance mechanisms for the reduction of
emissions of greenhouse gases pursuant to the act  . The bill
would require an unspecified agency to administer these funds for a
specified grant program. The bill would provide for the creation of
the California Agricultural Climate Benefits Advisory Committee to
assist in the implementation of these requirements, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) California agriculture is a $35 billion per year industry, one
of the state's largest and most significant industries. California
agriculture supplies 90 percent of the nation's almonds, apricots,
raisins, olives, pistachios, walnuts, and wine grapes,  and
 more than one-half of the country's fruit and vegetables
 , and is the leading producer of dairy products  .
   (2) Dependent on land and natural resources, California
agriculture is uniquely vulnerable to global warming. Global warming
poses a serious threat to California agriculture with rising
temperatures, constrained water resources, increases in extreme
weather events, reduced winter chilling hours, and rising sea levels.

   (3) California agriculture is also uniquely positioned to provide
climate benefits by reducing greenhouse gas emissions. Research
funded by the California Energy Commission's Public Interest Energy
Research (PIER) program suggests that some agricultural practices
will not only reduce greenhouse gas emissions, but they may also help
to sequester atmospheric carbon in the soil. Atmospheric carbon
sequestration is an important strategy to help meet the state's
greenhouse gas emissions targets.
   (4) To reduce California agriculture's vulnerability to global
warming, the industry will have to adapt to changing weather patterns
and conditions. As summarized in the 2009 California Climate Change
Adaptation Strategy, California will need to employ a diversity of
strategies to support an ongoing robust agricultural industry,
including farmland protection, increased biodiversity, new crop
varieties, and on-farm conservation measures.
   (5) Steps taken by California agriculture to reduce greenhouse gas
emissions, sequester atmospheric carbon, and adapt to global warming
can provide other important environmental cobenefits, such as
improved air and water quality, water conservation, and enhanced
wildlife habitat.
   (b) It is therefore the intent of the Legislature to enhance the
long-term viability of California agriculture by supporting
activities that  enhance   the agricultural sector's
ability to adapt to climate change and  reduce global warming
impacts that may negatively impact it and the rest of the state.
   (c) It is further the intent of the Legislature that the ____,
pursuant to this act, support California agriculture in pursuing
voluntary reductions in greenhouse gas emissions, atmospheric carbon
sequestration, and adaptation to global warming.
  SEC. 2.  Part 9 (commencing with Section 38700) is added to
Division 25.5 of the Health and Safety Code, to read:

      PART 9.  AGRICULTURAL CLIMATE BENEFITS


   38700.  The purpose of this part is to ensure that California
maximizes its opportunities to achieve voluntary greenhouse gas
emission reductions and global warming adaptation activities in the
state's agricultural sector while also achieving environmental
cobenefits.
   38701.  For the purposes of this part, the following terms have
the following meanings:
   (a) "Advisory committee" means the California Agricultural Climate
Benefits Advisory Committee created pursuant to Section 38704.
   (b) "Environmental cobenefits" means benefits or improvements to
the environment, including, but not limited to, water conservation,
improved air or water quality, increased soil organic matter, and
enhanced wildlife habitat, that occur as a result of reduced
greenhouse gas emissions or sequestration of atmospheric carbon.
   (c) "Processor" means the persons, places, and establishments
described in Sections 20019, 32513, and 55407 of the Food and
Agricultural Code.
   (d) "Producer" means the persons described in Sections 55408 and
64507 of the Food and Agricultural Code. 
   38702.  Notwithstanding any other law, not less than ____ percent
of funds generated pursuant to either of the following shall be made
available, upon appropriation by the Legislature, to fund activities
consistent with this part that will reduce greenhouse gas emissions,
or adapt to global warming, in the state's agricultural sector:
   (a) Revenues generated from the state sale of emission allowances
for market-based compliance mechanisms adopted pursuant to this
division, other than revenues collected for administrative purposes.
   (b) Funds from federal global warming programs that are dedicated
to or otherwise accrue to the state for global warming projects and
programs that are consistent with the purposes of this part.
 
   38703.  Funds made available pursuant to Section 38702 shall be
administered by the ____, in consultation with the advisory
committee, and may be used for either of the following:
   (a) The cost of administering this part.


   (b) 
    38702.    (a) The following are eligible uses of
moneys allocated to the agricultural sector from revenue generated
from market-based compliance mechanisms for the reduction of
emissions of greenhouse gases pursuant to this division: 
    (1)    Grants for any of the following:

   (1) 
    (A)  Research and demonstration projects that reduce
greenhouse gas emissions, sequester atmospheric carbon 
through   , or assist the agricultural sector to adapt
to global warming through the use of  agricultural technologies,
practices, or farming systems  , or adapt to global warming,
and   that also  provide environmental cobenefits.
Eligible recipients may include California producers,  any 
California institutions of higher education, state or local
agencies, and nonprofit organizations.  Priority shall be given
to proposals that include multiple coapplicants and that include at
least one agricultural producer in the development and implementation
of the project.  
   (2) 
    (B)  Technical assistance, which shall include, but not
be limited to, development of outreach and training programs to
assist agricultural producers in adopting agricultural technologies,
practices, or farming systems that reduce greenhouse gas emissions
 or sequester atmospheric carbon   ,  
sequester atmospheric carbon, or assist producers in adapting to
global warming  , and provide environmental cobenefits. Eligible
recipients may include  any  California institutions of
higher education, state or local agencies, and nonprofit
organizations with a demonstrated capacity to deliver technical
assistance to California agricultural producers. 
   (3) 
    (C)  Financial incentives for California agricultural
producers to  do any of the following:  
   (A) Generate greenhouse gas emission reductions that may not be
economically viable as an offset project.  
   (B) Demonstrate and test new or uncertain methods to reduce
greenhouse gas emissions or sequester atmospheric carbon. 

   (C) Be an early adopter of agricultural technologies, practices,
or farming systems that reduce greenhouse gas emissions or sequester
atmospheric carbon, or adapt to global warming.  
   (4) 
    reduce emissions of greenhouse gases, sequester atmospheric
carbon, or adapt to global warming while providing environmental
cobenefits. 
    (D)    Research and demonstration projects,
technical assistance and financial incentives for California
processors to reduce greenhouse gas emissions from their facilities
through energy efficiency, renewable energy, or processing 
efficiencies. In   efficiencies, with a preference given
to those  recommending and selecting projects from this
category, the advisory committee and the ____ shall give preference
to those projects that include environmental cobenefits. 
   (2) The cost of administering this part.  
   (c) 
    (b)  Grant funds shall be divided equally across all
four grant categories, as described in  subdivision (b)
  paragraph (1) of subdivision (a)  , unless the
____ determines, in consultation with the advisory committee, that a
different apportionment of funds would best serve the purposes of
this part. 
   (d) Notwithstanding subdivision (c) 
    (c)    Notwithstanding subdivision (b)
 , not more than 25 percent of grant funds shall be awarded to
projects for processors as described in  paragraph (4) of
subdivision (b)   subparagraph (D) of paragraph (1) of
subdivision (a)  . 
   (d) No matching funds requirement that exceeds 25 percent of total
project costs shall be imposed as a condition to the award of a
grant for research and demonstration projects or technical assistance
pursuant to paragraph (1) of subdivision (a).  
   38704.  (a) Not later than July 1, 2012 
    38703.    (a)     Not later than
three months following allocation of moneys  , the ____ shall
establish the California Agricultural Climate Benefits Advisory
Committee to achieve the purposes of this part. The ____ shall
appoint its members as follows:
   (1) Five members who are agricultural producers, including at
least two certified organic producers.
   (2) Three members who are researchers with an institution of
higher education with expertise in agriculture and climate change.
   (3) Three members from nonprofit organizations with expertise in
climate change and agriculture.
   (4) One member who is a processor.
   (5) One ex officio member from each of the following public
agencies:
   (A) Department of Conservation.
   (B) State Air Resources Board.
   (C) United States Department of Agriculture, Natural Resources
Conservation Service.
   (D) United States Environmental Protection Agency, Region IX.
   (E) The Department of Food and Agriculture.
   (b) Each advisory committee member shall designate his or her
alternate, who shall meet the same qualifications identified in
subdivision (a) as the member for whom the alternate is serving. An
alternate member shall serve at an advisory committee meeting only in
the absence of, and shall have the same powers and duties as, the
member for whom he or she is designated as an alternate, except for
duties and powers as an officer of the committee. The number of
alternates present who are not serving in the capacity of a member
shall not be considered in determining a quorum.
   (c) An alternate member may serve at an advisory committee
subcommittee meeting only in the absence of, and shall have the same
powers and duties as, the member for whom he or she is designated as
an alternate, except for duties and powers as a subcommittee
chairperson.
   (d) The members and alternates of the advisory committee shall
serve without compensation but shall be reimbursed for the reasonable
expenses actually incurred in the performance of their duties, as
determined by the advisory committee and approved by the ____.
   (e) The ____ shall appoint the members of the committee from
nominations by interested persons and organizations with expertise in
agriculture and climate change. The ____ shall make all feasible
efforts to appoint members of the advisory committee who reflect a
range of views from agricultural, scientific, environmental
protection, and resource conservation interests that will enhance the
successful implementation of this part.
   (f) A member of the committee shall serve for a term of three
years, except that the ____ shall appoint the original members of the
committee for staggered terms as follows:
   (1) One member appointed pursuant to paragraphs (1), (2), and (3)
of subdivision (a) shall serve for one year.
   (2) Two members appointed pursuant to paragraph (1), and one
member appointed pursuant to paragraphs (2) and (3), of subdivision
(a) shall serve for two years.
   (3) Two members appointed pursuant to paragraph (1), and one
member appointed pursuant to paragraphs (2) and (3), of subdivision
(a) shall serve for three years.
   (g) In administering grant funds pursuant to Section 38703, the
____ shall seek and consider input from the advisory committee on
matters related to the purposes of this part, including, but not
limited to, all of the following:
   (1) Establishing criteria for grant proposals.
   (2) Reviewing grant proposals.
   (3) Recommendations regarding the approval of grant proposals.
   (4) Recommendations regarding the implementation of this part.
   (h) Advisory committee members shall recuse themselves from
reviewing grant proposals from any grant category in which either of
the following conditions are met:
   (1) For a member appointed pursuant to paragraph (1) , (3), or (4)
of subdivision (a), if a person from the same private business or
nonprofit organization as the member has applied for a grant pursuant
to this part and would directly benefit from the grant funding.
   (2) For a member appointed pursuant to paragraph (2) of
subdivision (a), if a person from the same department or field
station as the member has applied for a grant pursuant to this part
and would directly benefit from the grant funding.
   (i) Advisory committee members shall not be required to recuse
themselves from reviewing grant proposals in any grant category for
which the conditions of subdivision (h) have not been met.
   (j) The _____ shall designate department staff to provide 
appropriate staff services to the advisory committee. 

   38705.  In establishing criteria for grant proposals and awarding
grants, the advisory committee and the ____ shall do all of the
following:
   (a) Give priority to proposals for research and demonstration
projects, pursuant to paragraph (1) of subdivision (b) of Section
38703, that include multiple coapplicants and that include at least
one agricultural producer in the development and implementation of
the project.
   (b) Consider the appropriate use of matching fund requirements for
research and demonstration projects and technical assistance
projects, pursuant to paragraphs (1) and (2) of subdivision (b) of
Section 38703. If matching fund requirements are adopted, the
requirements shall not exceed 25 percent of the total award by the
state.