BILL ANALYSIS Ó
SB 461
Page 1
Date of Hearing: July 1, 2013
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 461 (Leno) - As Amended: June 24, 2013
SENATE VOTE : 25-13
SUBJECT : State tide and submerged lands: mineral extraction
leases: revenues
SUMMARY : Creates the Coastal Adaptation Fund (Fund) and
requires the Legislature to appropriate from tidelands oil
revenue a minimum unspecified amount of money in the annual
Budget Act to the Fund. Requires the Fund to support, up to $10
million subject to appropriation by the Legislature in the
annual Budget Act, 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.
EXISTING LAW :
1)Authorizes the State Lands Commission (SLC) to lease tide and
submerged lands and beds of navigable rivers and for the
extraction of oil and gas.
2)Authorizes SLC to enter into any lease for the extraction of
oil or gas from state-owned tide and submerged lands in the
California Coastal Sanctuary if SLC determines that those oil
or gas deposits are being drained by means of producing wells
upon adjacent federal lands and the lease is in the best
interest of the state.
3)Except as specified, requires SLC to deposit all revenue,
money, and remittances received by SLC in the General Fund.
THIS BILL:
1)Creates the Fund to fund, subject to appropriation by the
Legislature in the annual Budget Act, 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.
SB 461
Page 2
2)Allows the moneys in the Fund to be expended, in an amount not
to exceed $10 million, by the Ocean Protection Council (OPC),
the Department of Fish and Wildlife, the California Coastal
Commission (CCC), the State Coastal Conservancy (SCC), SLC,
and the San Francisco Bay Conservation and Development
Commission. Requires the Legislature to appropriate from
tidelands oil revenue a minimum unspecified amount of money in
the annual Budget Act to the Fund.
3)Requires the Natural Resources Agency to ensure that the
moneys made available from the Fund 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. Requires the
Natural Resources Agency to, on a publicly accessible Internet
Web site, post information regarding any activity supported by
the Fund.
FISCAL EFFECT : According to the Senate Appropriations
Committee, (1) costs of 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 and (2) minor and
absorbable costs to the Natural Resources Agency from the
General Fund for reporting costs.
COMMENTS :
Author's Statement:
California is facing the inevitable impacts of climate
change and sea level rise that will have a profound
impact on our communities, environment and economy.
SB 461 will provide necessary funding to prepare and
adapt for the unavoidable impacts of sea level rise to
ensure the future health and economic viability of
California's coast.
Over the last several years, state budget constraints
have greatly reduced the funding available to natural
resources and conservation. As a result, the state
has not been able to support efforts to prepare our
coast and communities for sea level rise. The State
Tidelands Oil Revenue, which are revenues generated
from oil, gas and other minerals extracted from the
state's tidelands, previously supported natural
SB 461
Page 3
resources and conservation, but has been swept into
the General Fund since 2006. The bill takes a modest
first step in restoring some of these historic funds
and specifically for coastal adaptation. Through the
annual Budget Act, the Legislature may allocate up to
$10 million from the State Tidelands Oil Revenue to
the Coastal Adaptation Fund. The Fund will support
the coastal adaptation work of the Ocean Protection
Council, Department of Fish and Wildlife, the
California Coastal Commission, the State Coastal
Conservancy, State Lands Commission and the San
Francisco Bay Conservation and Development Commission
done in accordance with the 2009 California Climate
Adaptation Strategy or any future version of the plan
prepared by the Natural Resources Agency.
Background. In 1997, the Legislature approved and the Governor
signed SB 271 (Thompson) that established the principle that
royalty revenues received by SLC from oil extraction activities
on state tidelands should be dedicated, in large part, to
various coastal and natural resource protections that benefit
the entire state. SB 271 contained a 2003 sunset date that was
extended to 2006 by AB 2784 (Strom-Martin, 1998). Since 2006,
most of the tidelands oil royalties have been directed to the
General Fund.
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
$502 million.
This bill will begin to restore the principle that tidelands
revenues should be used to fund activities that benefit the
environment. As an example, this bill could help OPC, CCC, and
SCC encourage local governments and other entities responsible
for planning under the California Coastal Act to develop and
adopt updated plans that conserve and protect coastal resources
from future impacts from sea-level rise and related climate
change impacts such as extreme weather events.
2009 California Climate Adaptation Strategy. This bill requires
the Natural Resources Agency to ensure that the moneys made
available from the Fund be used to fund activities that are in
accordance with the 2009 California Climate Adaption Strategy,
SB 461
Page 4
or the most recent update to the strategy, as prepared by the
Natural Resources Agency.
The 2009 California Climate Adaption Strategy, prepared by the
Natural Resources Agency in response to an executive order by
the Governor, summarizes climate change impacts and recommends
adaptation strategies across seven sectors: Public Health,
Biodiversity and Habitat, Oceans and Coastal Resources, Water,
Agriculture, Forestry, and Transportation and Energy. This
report was the first of its kind in the usage of downscaled
climate models to more accurately assess statewide climate
impacts as a basis for providing guidance for establishing
actions that prepare, prevent, and respond to the effects of
climate change.
The Natural Resources Agency, in coordination with other state
agencies, will be updating the Climate Adaptation Strategy.
This update will augment previously identified strategies in
light of advances in climate science and risk management
options. The update is planned for release to the public as a
draft for comment by the end of 2013.
Suggested Amendments: The author and committee may wish to
consider amendments that clarify that the moneys in the Fund may
be expended, in an amount not to exceed ten million dollars
($10,000,000) annually and require the legislature to annually
appropriate at least $6 million from tidelands oil revenues to
the Fund.
REGISTERED SUPPORT / OPPOSITION :
Support
Cachuma Resource Conservation District
California Coastal Coalition/CALCOAST
California Coastal Protection Network
California Coastkeeper Alliance
Coastal Environmental Rights Foundation
Committee for Green Foothills
Crystal Cove Alliance
Bolsa Chica Land Trust
Desal Response Group
Endangered Habitats League
Environmental Defense Center
SB 461
Page 5
Environmental Water Caucus
Heal the Bay
Humboldt Baykeeper
Inland Empire Waterkeeper
Land Trust of Santa Cruz County
League for Coastal Protection
Natural Resources Defense Council
The Nature Conservancy
Northcoast Environmental Center
Ocean Conservancy
Orange County Coastkeeper
Pacific Coast Shellfish Growers Association
Peninsula Open Space Trust
Planning and Conservation League
Residents for Responsible Desalination
Resource Conservation District, Ventura County
Resource Conservation District of Santa Cruz County
Sierra Club California
Southern California Watershed Alliance
Surfrider Foundation
West Marin Environmental Action Committee
The Wildlands Conservancy
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092