BILL ANALYSIS Ó
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: SB 511 HEARING DATE: April 23, 2013
AUTHOR: Lieu URGENCY: No
VERSION: April 1, 2013 CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Natural resources: climate change: grants.
BACKGROUND AND EXISTING LAW
The California Natural Resources Agency's (agency's) mission is
to "restore, protect and manage the state's natural, historical
and cultural resources for current and future generations using
creative approaches and solutions based on science,
collaboration and respect for all the communities and interests
involved." The secretary of the agency is a member of the
state's Climate Action Team as well as several directors of the
departments within the agency. Additionally, the agency, in
coordination with other state agencies, leads efforts to update
the state's Climate Adaptation Strategy.
The California Air Resources Board's (board's) mission is "to
promote and protect public health, welfare and ecological
resources through the effective and efficient reduction of air
pollutants while recognizing and considering the effects on the
economy of the state," and one of its major goals is to reduce
the state's emission of greenhouse gases.
The California Global Warming Solutions Act of 2006 (act)(AB 32,
Pavley/Nunez, c. 488, Statutes of 2006) set the goal of reducing
the state's greenhouse gas emissions to 1990 levels by 2020.
The board was required to develop a scoping plan to describe how
the emissions targets will be achieved. The 2013 update to the
scoping plan, currently under development, will evaluate how the
state's greenhouse gas reduction strategies align with other
state policy priorities including water and natural resources.
One of the methods used to achieve the greenhouse gas emissions
reductions is through the market-based mechanism where certain
greenhouse gas emissions allowances are auctioned off. Revenues
from the auctions must be used to mitigate greenhouse gas
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emissions or the adverse effects caused by them, and the
proceeds, with specified exceptions, collected by the board must
be deposited in the Greenhouse Gas Reduction Fund (fund).
Moneys in the fund are available for appropriation by the
Legislature.
AB 1532 (Pérez, c. 807, Statutes of 2012) requires that the fund
be used for specified purposes to further the act's regulatory
purposes including the reduction of greenhouse gas emissions to
the benefit of disadvantaged communities, providing
opportunities for public and private entities to benefit from
statewide efforts to reduce greenhouse gas emissions, and by
funding natural resources-related conservation efforts, among
other provisions.
SB 535 (De León, c. 535, Statutes of 2012) sets minimum
requirements for funding for projects in disadvantaged
communities (10%) and projects that benefit disadvantaged
communities (25%) paid for through the fund, among other
provisions.
PROPOSED LAW
This bill would:
Require the agency in coordination with the board to
develop guidelines for awarding grants for natural
resources-related projects that enhance greenhouse gas
emissions avoidance and sequestration.
Specify the scope and goals of the guidelines including
appropriate natural resources-related applications,
providing incentives for model pilot projects, providing
funds for conservation projects in disadvantaged
communities, leveraging other funds to promote the climate
benefits of conservation projects, and promoting projects
that provide multiple benefits.
Require that existing grant programs, as specified, and
state conservancies be used to implement or administer this
program.
Exempt the development of the guidelines from the
Administrative Procedures Act.
ARGUMENTS IN SUPPORT
According to the author, this bill "seeks to address a major
issue facing the legislature this year - how to expend auction
revenue in an effective manner that results in significant
reductions of greenhouse gas emissions. SB 511 address this
question in proposing that a portion of the auction revenue
proceeds be used to fund incentives that can transform typical
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natural resource programs into high-impact climate change
projects that reduce [greenhouse gases]. By channeling some of
the auction revenue proceeds to existing programs, SB 511
proposes to minimize administrative costs while realizing a
higher 'bang for the buck' for natural resources projects."
"More importantly, the programs that SB 511 proposes to support
with auction revenues will reduce carbon dioxide and help the
state achieve its goals set forth by AB 32. Science is showing
us exactly how habitat and wetland restoration, forest
conservation, agricultural and conservation easements and urban
greening projects can aid in the effort to avoid, reduce or
sequester carbon."
ARGUMENTS IN OPPOSITION
None received
COMMENTS
This bill is a work-in-progress . While the general intent of
the bill is evident, there are elements of the bill that remain
unresolved or worthy of clarification. For example, statements
in support of the bill clearly express the bill's intent to
allocate a portion of auction revenues to support natural
resources-related greenhouse gas emissions reduction and
sequestration projects, yet the bill itself, unlike others, is
silent on the revenue source. Further, there may well be
competing priorities or criteria between the existing programs
the bill seeks to promote that may need to be resolved (e.g.
multiple definitions of disadvantaged communities). In view of
this, the committee may wish to take the following actions:
Direct staff to continue working with the author's
office on the bill, should it pass the committee today, and
Make a few clarifying minor technical changes to the
bill (Amendment 1).
Additionally, the committee may wish to bring the bill back
before the committee should its contents change substantially in
the future.
Public participation in the development of grant criteria and
guidelines . In some instances, the development of grant
criteria and guidelines have specifically been exempted from the
rulemaking provisions of the Administrative Procedures Act (see,
for example, Health and Safety Code §44287) as they are here.
However, public participation in some form of the development of
grant criteria and guidelines is not unusual (see the prior
example and the program development associated with the
Integrated Regional Water Management Plan program (Water Code
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§10541)). The committee may wish to provide for public
participation in the development of these guidelines (Amendment
2).
Specified programs and Conservancies . The existing competitive
grant programs specified in the bill in forestry, open space,
sustainable agriculture and watershed enhancements are the
California River Parkways Act of 2004, the Rangeland, Grazing
Land and Grassland Protection Act, the California Urban Forestry
Act of 1978 and those run by the California Coastal Conservancy,
the San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy, and the Santa Monica Mountains Conservancy.
Additionally, the San Diego River Conservancy, the Sierra Nevada
Conservancy, the Coachella Valley Mountains Conservancy, the
Baldwin Hills Conservancy, the San Joaquin River Conservancy,
and the Sacramento - San Joaquin Delta Conservancy may all
participate. Of the state conservancies, only the California
Tahoe Conservancy (Government Code §66905 et seq.) is omitted.
Existing programs . Proposition 84, passed by California voters
in 2006, includes guidance on climate change and funding for
related activities. Numerous conservancies and the agency itself
fund grant programs that, in part, focus on the natural
resources-related greenhouse gas reduction and sequestration
activities specified in this bill through Proposition 84 or
other funding sources. These include, for example, the Urban
Greening Program for Sustainable Communities, the Strategic
Growth Council's Sustainable Communities planning grants and
incentives, the California Energy Commission's Alternative and
Renewable Fuel and Vehicle Technology Program, and the Coastal
Conservancy's climate change grants. Both the agency and the
board coordinate and collaborate across jurisdictions with other
state entities on grant and other state programs (for example,
the agency and Caltrans on the Environmental Enhancement and
Mitigation Program).
Related 2013 policy legislation
SB 497 (Walters, 2013) would freely allocate any greenhouse gas
emissions allowances to and waive any related fees due from
colleges or universities. (before Senate Environmental Quality
Committee)
SB 798 (De León/Pavley, 2013) would create the California Green
Investment Bank which would be able to receive appropriation
from the fund. (before Senate Governance and Finance Committee)
AB 26 (Bonilla, 2013) would prohibit the Controller from using
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moneys in the fund for cash flow loans to the General Fund.
(before Assembly Natural Resources Committee)
AB 574 (Lowenthal, 2013) would require the board, in
consultation with the California Transportation Commission and
the Strategic Growth Council, to establish standards for the use
of moneys allocated from the fund for sustainable communities
projects, as specified, develop criteria for a regional grant
program and designate the regional granting authority. (before
Assembly Transportation Committee)
AB 1073 (Eggman, 2013) would enact the Greenhouse Gas Reduction
through Recycling, Composting, and Recycled Content
Manufacturing Investment Program and require the Department of
Resources Recycling and Recovery to implement the program which
could include payments or grants for capital equipment. (before
Assembly Natural Resources Committee)
AB 1375 (Chau, 2013) would create the Clean Technology
Investment Account within the fund and require the Legislature
to annually appropriate money from the fund into the Clean
Technology Investment Account. (before Assembly Natural
Resources Committee)
SUGGESTED AMENDMENTS
AMENDMENT 1
Delete page 2, lines 14 - 21, inclusive and replace with:
"(1) promote climate benefits from reducing greenhouse gas
emissions associated with transportation emissions and from
reducing or sequestering greenhouse gas emissions
associated with improvements in energy conservation or
efficiency, promoting development of sustainable
communities, improving the siting of
environmentally-sensitive distributed energy generation,
improving regional water supply from regional water
filtration and watershed enhancements, improving forest
management, or increasing the urban forestry canopy."
On page 2, line 22, replace "incentivize" with "provide
incentives for"
On page 2, line 26 replace "climate value" with "benefits
to the climate"
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On page 2, revise line 28 to read "that provide important
benefits to the climate."
AMENDMENT 2
On page 3, between lines 19 and 20, insert:
"(e) The development and adoption of the guidelines adopted
pursuant to this part shall provide for public
participation."
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SUPPORT
Amigos de los Rios
Audubon California
Benicia Tree Foundation
Bolsa Chica Land Trust
California ReLeaf
California Urban Forests Council
Canopy
Defenders of Wildlife
Environmental Defense Fund
Goleta Valley Beautiful
Huntington Beach Tree Society
International Society of Arboriculture, Western Chapter
Keep Eureka Beautiful
Land Trust of Santa Cruz County
Los Angeles Conservation Corps
Marin Agricultural Land Trust
Marin ReLeaf
North East Trees
Oakland Landscape Committee
Our City Forest
Pacific Forest Trust
Peninsula Open Space Trust
Richmond Trees
Roseville Urban Forest Foundation
Sacramento Tree Foundation
Sonoma County Board of Supervisors
Sonoma County Agricultural Preservation and Open Space District
Tahoe Fund
The Big Sur Land Trust
The Trust for Public Land
Tree Davis
Tree Foundation of Kern
Tree Fresno
Tree Musketeers
Tree Partners Foundation
TreePeople
Urban Releaf
Urban Tree Foundation
Woodland Tree Foundation
OPPOSITION
None Received
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