BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1066 (Lieu) - Coastal resources: climate change
          
          Amended: April 9, 2012          Policy Vote: NRW 6-2
          Urgency: No                     Mandate: No
          Hearing Date: April 30, 2012                      Consultant: 
          Marie Liu     
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1066 would require the Coastal Conservancy 
          (conservancy) to fund and undertake projects to address climate 
          change and would require the conservancy to prioritize projects 
          that maximize public benefits.

          Fiscal Impact: Unknown annual costs, likely in the hundreds of 
          thousands of dollars from bonds (General Fund) and special funds 
          for the funding of projects that address climate change.

          Background: The conservancy is responsible for purchasing, 
          protecting, restoring, and enhancing the state's coastal 
          resources and providing public access to the shore. The 
          conservancy generally works in partnership with other public 
          agencies, nonprofit organizations, and private landowners. 
          Sample projects include wetlands restoration and protection, 
          protection of coastal agriculture lands, and trail building. The 
          vast majority of the conservancy's funding comes from various 
          bonds including Proposition 40, 50, and 84 with smaller amounts 
          of funding from special funds, such as the California 
          Environmental License Plate Fund and the California Sea Otter 
          Fund.

          Proposed Law: This bill would require the conservancy to fund 
          and undertake projects that address climate change impacts such 
          as sea level rise, beach and bluff erosion, and salt water 
          intrusion. This bill would also require the conservancy to 
          prioritize projects that maximize public benefits such as 
          reducing greenhouse gas emissions, reducing hazards to harbors 
          and ports, and preserving and enhancing coastal wetlands and 
          natural lands.

          Staff Comments: This bill would essentially oblige the 








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          conservancy to fund at least one project that deals with climate 
          change impacts. Possible projects include wetlands restoration, 
          updating and refining coastal hazard zone maps, developing 
          regional monitoring to inform adaptive management, and reducing 
          impacts of a warmer climate on urban populations. These projects 
          are likely to cost in the hundreds of thousands of dollars 
          considering that in 2011, the conservancy supported 79 projects 
          with an average project cost of approximately $810,000. 

          According to the author, the intent of this bill is to give 
          clear authority to the conservancy to consider and address 
          climate change impacts. Expressly authorizing the conservancy to 
          address climate change not only improves the conservancy's 
          ability to meet is existing mission, but will also make the 
          conservancy more competitive in obtaining grants that are 
          currently offered by private foundations and the federal 
          government for climate change mitigation and adaptation. 

          Staff notes that the language in the bill stating that that the 
          conservancy "shall fund and undertake projects to address 
          climate change" is somewhat awkwardly phrased and inconsistent 
          with the rest of the conservancy's enabling statute as it 
          requires instead of authorizes the conservancy to fund certain 
          projects. Staff recommends that the author can achieve his 
          legislative intent with language that would add consideration of 
          climate change impacts to the conservancy's responsibilities 
          without explicitly requiring the funding of projects, which 
          could lower the cost pressures imposed by this bill.

          This bill also requires the conservancy to prioritize projects 
          that "maximize public benefits" for all of the conservancy's 
          programs. While maximizing public benefits is a laudable goal, 
          the conservancy has a wide range of programs, each of which 
          might have a slightly different interpretation of what is an 
          appropriate public benefit. For example, the conservancy 
          receives monies from the California Sea Otter Fund in order to 
          fund research and programs related to improving the near-shore 
          ocean ecosystem, including activities which reduce sea otter 
          mortality. It is unclear how overlaying a priority for 
          maximizing public benefits would appropriately influence sea 
          otter projects. Staff recommends that this prioritization 
          language be only applied to projects which are intended to 
          address impacts of climate change. 









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          Recommended Amendments: As discussed in Staff Comments, staff 
          recommends amending the bill so that (1) the conservancy has the 
          responsibility to address climate change impacts without 
          explicitly requiring the funding of projects and (2) the 
          prioritization requirements only apply to projects that intend 
          to address impacts of climate change.