BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 461|
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THIRD READING
Bill No: SB 461
Author: Leno (D)
Amended: 5/28/13
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 7-2, 4/23/13
AYES: Pavley, Evans, Hueso, Jackson, Lara, Monning, Wolk
NOES: Cannella, Fuller
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/13
AYES: De León, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : State tide and submerged lands: mineral extraction
leases:
revenues
SOURCE : California Coastal Protection Network
DIGEST : This bill creates the Coastal Adaptation Fund (Fund)
and authorizes up to $10 million per year to be divided among
the Ocean Protection Council, the Department of Fish and
Wildlife, the California Coastal Commission, the State Coastal
Conservancy, and the San Francisco Bay Conservation and
Development Commission.
ANALYSIS : 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.
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This bill:
1. Creates the Fund and authorizes up to $10 million per year
to be divided among the Ocean Protection Council, the
Department of Fish and Wildlife, the California Coastal
Commission, the State Coastal Conservancy, and the San
Francisco Bay Conservation and Development Commission, 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. Restores the principle that tidelands oil revenues should be
allocated in a way that recognizes the nexus between those
revenues that strengthen the state's role in addressing sea
level rise and coastal climate change.
3. Requires an unspecified amount to be appropriated to the Fund
in the annual Budget Act.
4. Requires the Natural Resources Agency ensure funded
activities are in compliance with the 2009 California Climate
Adaption Strategy, or its most recent update.
5. Requires the Natural Resources Agency make available annually
on its Internet Web site information on all activities funded
with the Fund, as specified.
Background
SB 271 (Thompson, Chapter 293, Statutes of 1997) established the
principle that lease revenues received by the State Lands
Commission from oil extraction activities on state tidelands
should be dedicated, in large part, to coastal and natural
resource protections that benefit the entire state.
Until it was repealed during the early stages of the recent
recession, the tidelands oil revenues provided funding for the
Housing Trust Fund, the Resources Trust Fund for Salmon and
Steelhead Trout Restoration, marine life and marine reserve
management, state parks deferred maintenance, and with the
balance to the Natural Resource Infrastructure Fund which was
allocated to other programs.
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The Natural Resource Infrastructure Fund programs included funds
to the Department of Fish and Wildlife for environmental review
and monitoring, land acquisitions in Orange County and San Diego
for natural community conservation plans, nonpoint source
pollution programs at the California State Water Resources
Control Board and the California Coastal Commission and any
unencumbered funds were transferred to the state general fund.
There were some budget years when the tidelands oil revenues
were swept by the Legislature and not allocated for some or all
of these statutory purposes. The program was ended in a budget
trailer bill that became effective on July 1, 2006.
Tidelands oil revenues in California have been in the hundreds
of millions of dollars in recent years due to the increased
price of oil. In 2011-12, the last year for which a total amount
is available, the total from tidelands oil revenues was $531
million.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Up to $10 million from the General Fund for activities by
state agencies to address and adapt to sea level rise and
coastal climate change.
Minor and absorbable costs to the Natural Resources Agency
from the General Fund for reporting costs.
SUPPORT : (Verified 5/28/13)
California Coastal Protection Network (source)
California Coastkeeper Alliance
Coastal Environmental Rights Foundation
Committee for Green Foothills
Crystal Cove Alliance
Desal Response Group
Endangered Habitats League
Environmental Defense Center
Environmental Water Caucus
Heal The Bay
Humboldt Baykeeper
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Inland Empire Waterkeeper
League for Coastal Protection
Natural Resources Defense Counsel
Nature Conservancy
Northcoast Environmental Center
Ocean Conservancy
Orange County Coastkeeper
Pacific Shellfish Growers Association
Planning and Conservation League
Residents for Responsible Desalination
Sierra Club California
Southern California Watershed Alliance
Surfrider Foundation
The Wildlands Conservancy
West Marin Environmental Action Committee
ARGUMENTS IN SUPPORT : A large coalition of coastal
conservation and environmental groups are in support of this
bill. The coalition considers sea level rise and the related
impacts of sea level rise to be unavoidable and very costly to
California. It points out that the California coastal economy
is valued at $50 billion annually and that steps must be taken
to protect coastal adaptation strategies that will preserve this
influx of dollars into the California economy.
Sea level rise, according to the coalition, is anticipated to be
between 31 and 69 inches by the end of this century. Whatever
the precise number, the coalition argues that sea level rise, in
conjunction with an expected increase in extreme weather events
and flood surges, will endanger critical infrastructure,
including roads, hospitals, airports, wastewater treatment
plants, and power plants. In addition, wetlands and other
natural ecosystems may be at risk from inundation and public
beaches may be lost.
The coalition, citing a report prepared for the California
Energy Commission, estimates that a sea level rise of 55 inches
will place at least 480,000 Californians at risk and nearly $100
billion in property at risk.
A number of state agencies have separate but related
jurisdiction over coastal and ocean programs and the coalition
suggests that these agencies need to be adequately funded to
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work with local governments and local communities to develop and
implement sustainable coastal adaptation strategies. No current
dedicated funding source is in place, although the Ocean
Protection Council has approved a $2.5 million competitive grant
program for vulnerability assessments,
data collection, and updates to local coastal programs to help
local governments plan for adaptation to sea level rise and
associated climate change impacts along the open coast of
California.
RM:nl:d 5/28/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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