Amended in Assembly August 12, 2013

Amended in Assembly August 6, 2013

Amended in Assembly June 24, 2013

Amended in Senate May 28, 2013

Amended in Senate April 30, 2013

Amended in Senate April 16, 2013

Amended in Senate April 1, 2013

Senate Bill No. 461

Introduced by Senator Leno

February 21, 2013

An act to begin insert amend Section 6217 of, and to end insert add Section 6217.9 begin delete to end delete begin insert to, end insert the Public Resources Code, relating to coastal resources.

LEGISLATIVE COUNSEL’S DIGEST

SB 461, as amended, Leno. State tide and submerged lands: mineral extraction leases: revenues.

Existing law authorizes the State Lands Commission to lease tide and submerged lands and beds of navigable rivers and lakes for the extraction of oil and gas, as specified. Existing law, with specified exceptions, generally requires the State Lands Commission, on and after July 1, 2006, to deposit all revenue, money, and remittances, derived from mineral extraction leases on state tide and submerged lands, including begin delete tideland end delete begin insert tidelands end insert oil revenue, into the General Fund, to be available upon appropriation by the Legislature for specified purposes.

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This bill would require that, out of funds deposited into the General Fund, at least $6,000,000, but no more than $10,000,000, be deposited into the Coastal Adaptation Fund to the extent that an appropriation for its purposes is included in the annual Budget Act.

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This bill would create the Coastal Adaptation Fund in the State Treasury, and would authorize the expenditure of moneys in the fund, in an amount not to exceed $10,000,000 annually, by the Ocean Protection Council, the Department of Fish and Wildlife, the California Coastal Commission, the State Coastal Conservancy, the State Lands Commission, and the San Francisco Bay Conservation and Development Commission, upon appropriation by the Legislature in the annual Budget Act, for activities that prepare, plan, and implement measures based upon the best available scientific information, that are designed to address and adapt to sea level rise and coastal climate change.

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The

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begin insert This end insert bill would begin delete provide that the Legislature shall appropriate, from tidelands oil revenue, at least $6,000,000 to the Coastal Adaptation Fund for these purposes in the annual Budget Act and would end delete require that funding made available pursuant to these provisions be in accordance with the 2009 California Climate Adaptation Strategy, as specified. The bill would require the Natural Resources Agency to ensure that moneys expended from the fund are in compliance with the strategy and would authorize the agency to require each of the above-listed entities to provide information necessary to implement these provisions. The bill would require the agency to make certain information regarding activities funded by the Coastal Adaptation Fund available on a publicly accessible Internet Web site. The bill would also make various findings and declarations.

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.  

The Legislature finds and declares all of the
following:

(a) The coast of California is a vital and invaluable natural
resource of statewide importance belonging to all the people, and
its preservation and accessibility by current and future generations
is of paramount concern to the residents of this state and nation.

(b) Burning nonrenewable fossil fuels that are extracted from
California’s public lands and state tidelands contributes to global
climate change and sea level rise, which threatens the state’s coastal
natural resources, human, plant, and animal communities, public
infrastructure, coastal tourism and recreational opportunities, and
the state’s fifty-billion-dollar ($50,000,000,000) coastal economy.

(c) Royalty revenue generated from leases authorizing the
extraction of nonrenewable resources on the state’s trust lands
should be prioritized for planning, minimizing, and mitigating the
environmental impacts of those activities, including, but not limited
to, sea level rise.

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(d) Revenues generated from state tideland, oil, and gas leases
were historically allocated for environmental projects and
programs with a nexus to the extraction activities.

end insert begin insert

(e) Recent “King Tide” events, during which residents
photographed the local consequences of extreme high tide events
around the state, illustrate that California’s coastal communities
are not prepared for the coming “new normal” of rising sea levels,
and that enhanced coastal planning and management of coastal
resources and development continue to be of preeminent concern
to the state.

end insert begin insert

(f) The current rate of global sea level rise calls for an urgent,
coordinated, statewide initiative to actively plan for adaption and
mitigation strategies to address the inevitable economic and
environmental impacts of sea level rise in this state.

end insert begin insert

(g) In 2008, Executive Order S-13-08 called on state agencies
to develop California’s first strategy to identify and prepare for
expected climate impacts, and specifically called for statewide
consistency in planning for sea level rise. It also directed the
Natural Resources Agency to coordinate with local, regional, state,
and federal public and private entities to develop a state Climate
Adaptation Strategy.

end insert begin insert

(h) In 2009, the Natural Resources Agency issued the 2009
Climate Adaptation Strategy, which specifically called for state
agencies to prepare sea level rise plans and encouraged the
protection of existing critical ecosystems using a variety of factors
and strategies including providing a natural shoreline, cost benefit
analysis accounting for all public and private costs and benefits,
and approaches that can be resilient over a range of sea level
possibilities.

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(i) Protection of coastal resources from sea level rise impacts
can provide additional valuable public benefits including, but not
limited to, flood protection, improved water quality, habitat for
fish, shellfish, and wildlife, recreational opportunities, enhanced
quality of life, and increased property values.

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(d)

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begin insert (j) end insert  California’s coastal management agencies, the California
Coastal Commission, the San Francisco Bay Conservation and
Development Commission, and the State Coastal Conservancy,
have broad authority for protecting coastal resources, enhancing
public access to and along the shoreline, and working in partnership
with local governments in long-range land use planning, permitting,
and projects.

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(e)

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begin insert (k) end insert  The State Lands Commission, Ocean Protection Council,
and the Department of Fish and Wildlife have constitutional and
statutory obligations to protect natural resources on other coastal
public lands while ensuring public access.

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(f) Recent “King Tide” events, during which residents
photographed the local consequences of extreme high tide events
around the state, illustrate that California’s coastal communities
are not prepared for the coming “new normal” of rising sea levels,
and that enhanced coastal planning and management of coastal
resources and development continue to be of preeminent concern
to the state.

(g) The current rate of global sea level rise calls for an urgent,
coordinated, statewide initiative to actively plan for adaptation
and mitigation strategies to address the inevitable economic and
environmental impacts of sea level rise in this state.

(h)

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begin insert (l) end insert  California has an existing “planning infrastructure” already
in place to address sea level rise, coastal management, and
associated planning and land use issues in the form of local coastal
programs and the San Francisco Bay Plan.

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(i)

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begin insert (m) end insert  Maintaining a strong state coastal management program,
including comprehensive updates of existing planning documents,
is the most efficient, cost-effective, and practical method for
ensuring that statewide coastal management and climate change
policies are locally implemented and that unplanned and costly ad
hoc responses that risk more significant environmental and social
harm are avoided.

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(j) Revenues generated from state tideland, oil, and gas leases
were historically allocated for environmental projects and programs
with a nexus to the extraction activities.

end delete begin delete

(k)

end delete

begin insert (n) end insert  In order for the state to maintain its strong coastal
management program and to plan and prepare comprehensively
for sea level rise in the face of a rapidly changing climate, it is
appropriate to allocate revenues from nonrenewable resource
royalties to purposes related to coastal resource protection and
management, including forward-thinking sea level rise and climate
change planning.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 6217 of the end insert begin insert Public Resources Code end insert begin insert is amended
to read: end insert

6217.  

(a) With the exception of revenue derived from state
school lands and from sources described in Sections 6217.6,
6301.5, 6301.6, 6855, and Sections 8551 to 8558, inclusive, and
Section 6404 (insofar as the proceeds are from property that has
been distributed or escheated to the state in connection with
unclaimed estates of deceased persons), the commission shall
deposit all revenue, money, and remittances received by the
commission under this division, and under Chapter 138 of the
Statutes of 1964, First Extraordinary Session, in the General Fund.
Out of those funds deposited in the General Fund, sufficient
moneys shall be made available each fiscal year for the following
purposes:

(1) Payment of refunds, authorized by the commission, out of
appropriations made for that purpose.

(2) Payment of expenditures of the commission as provided in
the annual Budget Act.

(3) Payments to cities and counties of the amounts specified in
Section 6817 for the purposes specified in that section, out of
appropriations made for that purpose.

(4) Payments to cities and counties of the amounts agreed to
pursuant to Section 6875, out of appropriations made for that
purpose.

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(5) At least six million dollars ($6,000,000), but no more than
ten million dollars ($10,000,000), shall be deposited into the
Coastal Adaptation Fund to the extent that an appropriation for
its purposes is included in the annual Budget Act.

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(b) This section shall become operative on July 1, 2006.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 6217.9 is added to the Public Resources Code,
to read:

6217.9.  

(a) (1) The Coastal Adaptation Fund is hereby created
in the State Treasury. Moneys in the fund may be expended, in an
amount not to exceed ten million dollars ($10,000,000) annually,
by the Ocean Protection Council, the Department of Fish and
Wildlife, the California Coastal Commission, the State Coastal
Conservancy, the State Lands Commission, and the San Francisco
Bay Conservation and Development Commission. The moneys
are subject to appropriation by the Legislature in the annual Budget
Act to fund activities that prepare, plan, and implement measures,
based upon the best available scientific information, that are
designed to address and adapt to sea level rise and coastal climate
change.

(2) Moneys appropriated to the State Coastal Conservancy from
the Coastal Adaptation Fund shall be subject to Division 21
(commencing with Section 31000), and the State Coastal
Conservancy shall collaborate with all appropriate public
conservancies and commissions in the geographic jurisdiction of
those entities in implementing this section.

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(b) Notwithstanding Section 6217, the Legislature shall
appropriate from tidelands oil revenue at least six million dollars
($6,000,000) in the annual Budget Act to the Coastal Adaptation
Fund.

(c)

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begin insert (b) end insert  Moneys made available pursuant to this section shall be used
to fund activities that are in accordance with the 2009 California
Climate Adaption Strategy, or the most recent update to the
strategy, as prepared by the Natural Resources Agency.

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(d)

end delete

begin insert (c) end insert  The Natural Resources Agency shall ensure that moneys
expended from the Coastal Adaptation Fund are in compliance
with the 2009 California Climate Adaptation Strategy, or its most
recent update, and, in ensuring compliance with the strategy, the
agency may require the entities described in subdivision (a) to
provide information necessary to implement this section.

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(e)

end delete

begin insert (d) end insert  In accordance with subdivision begin delete (d) end delete begin insert (c) end insert , the Natural Resources
Agency shall also, on a publicly accessible Internet Web site,
annually make available information regarding any activity funded
pursuant to this section. The information shall include, at a
minimum, all of the following:

(1) The name of the agency, or agencies, to which funding was
allocated.

(2) A summary of the activity funded by the Coastal Adaptation
Fund, including the activity’s purpose and its relationship to the
2009 California Climate Adaptation Strategy, or its update.

(3) The amount allocated for the activity.

(4) An anticipated timeline and total cost for completion of the
activity.