BILL ANALYSIS Ó
SB 461
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Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 461 (Leno) - As Amended: August 12, 2013
Policy Committee: Natural
ResourcesVote:6-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Coastal Adaptation Fund (fund) and
requires the Legislature to appropriate in the Budget Act at
least $6 million but no more than $10 million annually from
tidelands oil revenue to fund activities to address sea level
rise and coastal climate change impacts. Specifically, this
bill:
1)Authorizes fund expenditures by the Ocean Protection Council,
the Department of Fish and Wildlife, the California Coastal
Commission, the State Lands Commission, the Coastal
Conservancy and the San Francisco Bay Conservation and
Development Commission to prepare, plan and implement
activities designed to address and adapt to sea level rise and
coastal climate change.
2)Requires the Natural Resources Agency to ensure all funded
activities are consistent with the 2009 California Climate
Adaptation Strategy or its most recent update. Requires the
Agency to post information regarding all activities supported
by the Fund on a publicly accessible internet website.
3)Makes various findings and declarations relating to the need
to comprehensively address sea level rise and the rapidly
changing coastal climate.
FISCAL EFFECT
1)Increased annual GF costs between $6 million and $10 million
to fund activities by six state agencies. (Since 2006, most
tidelands oil revenue has been directed to the GF.)
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2)Minor, absorbable costs (GF) to the Natural Resources Agency
for reporting costs.
COMMENTS
1)Purpose. According to the author, 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. This bill 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.
2)Background. In 1997, SB 271 (Thompson) established the
principle that royalty revenues received by State Lands
Commission (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
over $500 million. This bill would partly to restore the
principle espoused by some that tidelands revenues should be
used to fund activities that benefit the environment.
3)2009 California Climate Adaptation Strategy. This bill
requires the Natural Resources Agency to ensure that
expenditures 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.
The 2009 California Climate Adaption Strategy summarizes
climate change impacts and recommends adaptation strategies
across seven sectors: Public Health, Biodiversity and Habitat,
Oceans and Coastal Resources, Water, Agriculture, Forestry,
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and Transportation and Energy. The Natural Resources Agency,
in coordination with other state agencies, is currently
updating the Climate Adaptation Strategy. The update is
planned for release to the public as a draft for comment by
the end of 2013.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081