BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 691
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          Date of Hearing:  April 29, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                  AB 691 (Muratsuchi) - As Amended:  April 22, 2013
           
          SUBJECT  :  State lands:  granted trust lands:  sea level rise

           SUMMARY  :  Requires a local trustee of granted public trust lands  
          whose gross public trust revenues exceed $250,000 to prepare and  
          submit to the State Lands Commission (Commission) an assessment  
          of how it proposes to address sea level rise.

           EXISTING LAW  :

          1)Protects, pursuant to the common law doctrine of the Public  
            Trust (Public Trust Doctrine), the public's right to use  
            California's waterways for commerce, navigation, fishing,  
            boating, natural habitat protection, and other water oriented  
            activities.  The Public Trust Doctrine provides that filled  
            and unfilled tide and submerged lands and the beds of lakes,  
            streams, and other navigable waterways (i.e. public trust  
            lands) are to be held in trust by the state for the benefit of  
            the people of California.

          2)Establishes that the Commission is the steward and manager of  
            the state's public trust lands.  The Commission has direct  
            administrative control over the state's public trust lands and  
            oversight authority over public trust lands granted by the  
            Legislature to local governments.

          3)Grants, in trust, state public trust lands to over 80 local  
            public agencies (local trustees) to be managed for the benefit  
            of all the people of the state and pursuant to the Public  
            Trust Doctrine and terms of the applicable granting statutes.

          4)Recognizes a local trustee's fiduciary duty to take reasonable  
            steps under the circumstances to take and keep control of and  
            to preserve the trust property.

           THIS BILL  :

          1)Defines "local trustee" as a local trustee of granted public  
            trust lands that is a county, city, or district, including  
            water, sanitary, regional park, port, or harbor district, or  








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            any other local political or corporate subdivision that has  
            been granted public trust lands through a legislative grant.

          2)Establishes that addressing the impacts from sea level rise  
            for all of its legislatively granted public trust lands  
            pursuant to this section shall be among the management  
            priorities of a local trustee. 

          3)By July 1, 2019, requires a local trustee whose gross public  
            trust revenues average over $250,000 annually between January  
            1, 2009 until January 1, 2014 to prepare and submit to the  
            Commission an assessment of how it proposes to address sea  
            level rise (sea level rise assessment).  

          4)In preparing the sea level rise assessment, requires a local  
            trustee to consider and use relevant information from the 2009  
            California Climate Adaptation Strategy prepared by the Natural  
            Resources Agency, the Report on Sea Level Rise Preparedness  
            prepared by the State Lands Commission, the Sea-Level Rise for  
            the Coasts of California, Oregon, and Washington: Past,  
            Present, and Future, a report prepared by the National Academy  
            of Sciences, the Resolution of the California Ocean Protection  
            Council on Sea-Level Rise, the State of California Sea-Level  
            Rise Interim Guidance Document, and any subsequent updates to  
            those reports that become available six months prior to the  
            date the assessment is required to be submitted to the  
            Commission.

          5)Requires the sea level rise assessment to include all of the  
            following:

             a)   An assessment of the impact of a range of sea level rise  
               on granted public trust lands, as described in the  
               Resolution of the California Ocean Protection Council on  
               Sea-level Rise and the latest version of the State of  
               California Sea-Level Rise Interim Guidance Document;

             b)   Maps showing the areas that may be affected by sea level  
               rise in the years 2030, 2050, and 2100.  These maps shall  
               include the potential impacts of 100-year storm events.  A  
               local trustee may rely on appropriate maps generated by  
               other entities;

             c)   An estimate of the financial cost of the impact of sea  
               level rise on granted public trust lands.  The estimate  








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               shall consider, but is not limited to, the potential cost  
               of repair of damage to and the value of lost use of  
               improvements and land, and the anticipated cost to prevent  
               or mitigate potential damage; and 

             d)   A description of how the local trustee proposes to  
               protect and preserve natural and manmade resources and  
               facilities located, or proposed to be located, on trust  
               lands and operated in connection with the use of the trust  
               lands.

          6)Requires a local trustee that prepares a sea level rise  
            assessment to submit a copy to the Commission.  If a local  
            trustee has already completed an assessment of the impacts of  
            sea level rise that meets the criteria of this section, the  
            trustee may submit that assessment to the commission.

          7)Requires the Commission to make the sea level rise assessments  
            available to the public on its Internet Web Site and, for  
            informational purposes, send an electronic copy to each member  
            of the Climate Action Team, the climate change program manager  
            at the office of the Secretary for Environmental Protection,  
            and the Governor's Office of Planning and Research.  

          8)Requires the Commission to exempt a local trustee from  
            preparing a sea level rise assessment if the Commission finds  
            any of the following:

             a)   The local trustee's public trust lands are not subject  
               to sea level rise by 2100, based upon the highest  
               projections in the most recent version of the State of  
               California Sea-Level Rise Guidance; 

             b)   The cost to provide an assessment of how the local  
               trustee proposes to address the impacts of sea level rise  
               substantially outweighs the benefit the action would have  
               in preventing the potential economic and environmental  
               harms associated with sea level rise on the local trustee's  
               granted public trust lands; or

             c)   The revenues derived from its granted public trust lands  
               and assets or funding made available to it from other  
               discretionary sources is not sufficient to pay for the cost  
               of assessing the impacts of sea level rise on granted  
               public trust land.








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          9)Requires the Commission to consider a local trustee's request  
            for an exemption at a properly noticed Commission meeting if  
            the request is made before November 1, 2018.

           10)FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background.   For over 100 years, the Legislature has granted  
            public trust lands to local trustees so they can be managed  
            locally for the benefit of the people of California.  There  
            are over 80 trustees in the state, including the ports of Los  
            Angeles, Long Beach, San Diego, San Francisco, Oakland,  
            Richmond, Benicia, and Eureka.  While these trust lands are  
            managed locally, the Commission has oversight authority to  
            ensure those local trustees are complying with the Public  
            Trust Doctrine and the applicable granting statutes.
             
             Sea level rise is an issue that has far reaching consequences  
            for public trust lands held by local trustees.  Sea level rise  
            threatens coastal communities and infrastructure, including  
            transportation facilities, electric utility systems and power  
            plants, storm water systems and wastewater treatment plants  
            and outfalls, vast areas of wetlands, and many other human and  
            natural systems.  According to research funded in part by the  
            California Ocean Protection Counsel, a 55 inch sea level rise,  
            with a 100 year storm event along the California coast places  
            approximately 480,000 people and nearly $100 billion of  
            property at risk.

            On August 10, 2009, as part of its oversight responsibilities,  
            the Commission sent out 104 surveys regarding sea level rise  
            to all of its grantees and lessees of major facilities along  
            the coast and San Francisco Bay.  The survey included  
            questions related to identifying existing facilities and the  
            life expectancy of these facilities; whether the respondent  
            has considered the effect of sea level rise on its facilities;  
            how its facilities would be impacted by a sea level rise of  
            16" and 55" (projected increases in sea level by the years  
            2050 and 2100); what actions the respondents were considering  
            to address sea level rise, including an estimate of cost; and  
            whether the respondents were considering adaptation strategies  
            to mitigate for sea level rise.  Of the 104 surveys sent out,  
            only 40 responses were received.  A majority of these  








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            responses provided information indicating that trustees had  
            not yet begun to comprehensively consider the impacts of sea  
            level rise.

            On July 23, 2010, Commission staff resurveyed its grantees and  
            lessees.  Twenty-seven responses were received, of which 13  
            were first responders.  Approximately half of these responses  
            indicated that no action to address sea level rise had been  
            considered.  

            A local trustee's failure to plan for sea level rise may be  
            considered a breach of its trust responsibilities since the  
            trustee has a fiduciary duty to the people of California to  
            take reasonable steps under the circumstances to take and keep  
            control of and to preserve the trust property (this duty is  
            codified in section 6009.1 of the Public Resource Code).  To  
            assist in avoiding such a breach, this bill will require a  
            local trustee to assess the impacts of sea level rise on  
            granted public trust lands and describe how the local trustee  
            proposes to protect those lands.  The local trustee is in the  
            best position to conduct this assessment because it has the  
            administrative control over its granted trust land and, in  
            most cases, generates revenues off of the land, which must be  
            used for purposes such as managing and preserving the trust  
            assets.

           2)CEQA.   According to section 15262 of the CEQA Guidelines, a  
            project involving only feasibility or planning studies for  
            possible future actions which the agency, board, or commission  
            has not approved, adopted, or funded does not require the  
            preparation of an environmental impact report or negative  
            declaration.  A sea level rise assessment required by this  
            bill appears to fall under this feasibility or planning  
            studies provision.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Coastkeeper Alliance
          California State Lands Commission Staff
          Heal the Bay
          Sierra Club California
          Surfrider Foundation









                                                                  AB 691
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           Opposition 
           
          California State Association of Counties
          League of California Cities
           

          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916)  
          319-2092