BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 761


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          Date of Hearing:  April 13, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 761  
          (Levine) - As Introduced February 25, 2015


          SUBJECT:  Carbon farm planning


          SUMMARY:  Declares that $50 million shall be available, upon  
          appropriation, to the Department of Conservation (DOC) to  
          establish a grant program to fund projects that increase carbon  
          sequestration in agricultural lands, ranches, and rangelands. 


          EXISTING LAW:  


          1)Creates the Division of Resource Conservation (Division)  
            within DOC and imposes powers and duties on the Division with  
            regard to resource conservation. Allows the Division to aid  
            Resource Conservation Districts in developing plans for  
            achieving their soil and water conservation objectives.


          2)Requires, pursuant to the California Global Warming Solutions  
            Act (AB 32), the Air Resources Board (ARB) to adopt a  
            statewide greenhouse gas (GHG) emissions limit equivalent to  
            1990 levels by 2020 and to adopt rules and regulations to  
            achieve maximum technologically feasible and cost-effective  
            GHG emission reductions.









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          3)Requires the Strategic Growth Council (SGC) to develop and  
            administer the Affordable Housing and Sustainable Communities  
            Program to reduce GHG emissions through projects that  
            implement land use, housing, transportation, and agricultural  
            land preservation practices to support infill and compact  
            development and that support other related and coordinated  
            public policy objectives. 


          4)Continuously appropriates to the SGC 20% of the annual  
            proceeds of the Greenhouse Gas Reduction Fund (GGRF).


          5)Phases in requirements for generators of specified amounts of  
            organic waste to arrange recycling services for the organic  
            waste material beginning January 1, 2016.


          THIS BILL:


          1)Defines "carbon farm planning" as a landscape-level  
            conservation planning process designed to identify GHG capture  
            and mitigation opportunities on working lands and prescribes  
            how to quantify those GHG benefits.


          2)Declares that $50 million shall be available, upon  
            appropriation, to the DOC to establish a grant program to fund  
            projects that increase carbon sequestration on agricultural  
            lands, ranches, and rangelands.


          3)Requires DOC in coordination with the Department of Resources,  
            Recycling and Recovery (CalRecycle) and the Department of  
            Water Resources (DWR) to develop and adopt project  
            solicitation and evaluation guidelines for the grant program.









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          4)Requires projects to meet one or more of 10 conditions to be  
            eligible for the grant program. Some of the conditions include  
            projects that assist in the state meeting GHG goals, improve  
            soil water retention, and improve the economic and ecological  
            viability of working lands.


          FISCAL EFFECT: At least $50 million from an unspecified source.


          COMMENTS: 


          1)Author's statement.  


               AB 761 establishes a $50 million carbon farming grant  
               program to fund 15-20 pilot projects to expand the use  
               of sustainable agricultural practices, including  
               compost application, on rangelands and other  
               agricultural lands. Research shows that these pilots  
               are expected to increase soil carbon sequestration  
               (reduce greenhouse gasses), improve soil water  
               retention, and make agricultural land more resilient  
               to climate change and drought. 


          2)Is this just about compost?  The Marin Carbon Project began  
            as a compost experiment seven years ago on a Marin County  
            ranch. This experiment uncovered a way to remove carbon  
            dioxide from the air through application of compost on  
            rangeland soil. The project hopes to turn the rangelands of  
            California into a tool to meet the state's GHG reduction  
            goals. These experiments on the grazing lands in Marin  
            County and the Sierra foothills of Yuba County by UC  
            Berkeley bio-geochemist Whendee Silver showed that a  
            one-time application of compost substantially boosted the  
            soil's carbon storage. The effect has persisted over six  








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            years, and Silver believes the carbon will remain stored for  
            at least several decades. Last year, the Governor signed AB  
            1826 (Chesbro), Chapter 727, Statutes of 2014, which  
            required generators of specified amounts of organic waste to  
            arrange recycling services for the organic waste material.  
            As the state diverts more organic waste from landfills, much  
            of the organic waste could be turned into compost. The Marin  
            Carbon Project with the help of UC Berkeley has demonstrated  
            the benefits of compost application on rangelands.  Compost  
            can also be used on croplands and home gardens. The state  
            has a role in developing markets for compost and collecting  
            data on the benefits of it uses. The Governor's 2015-16  
            budget proposal unveiled a "Healthy Soils" initiative.  The  
            proposal stated that: 



               ?as the leading agricultural state in the nation, it  
               is important for California's soils to be sustainable  
               and resilient to climate change. Increased carbon in  
               soils is responsible for numerous benefits including  
               increased water holding capacity, increased crop  
               yields and decreased sediment erosion. In the upcoming  
               year, the Administration will work on several new  
               initiatives to increase carbon in soil and establish  
               long term goals for carbon levels in all California's  
               agricultural soils. CDFA will coordinate this  
               initiative under its existing authority provided by  
               the Environmental Farming Act.    





            AB 761 creates a grant program that will fund projects that  
            increase carbon in soils through compost application, yet  
            the supporters have identified other practices that they  
            wish be included in the grant program.  These practices  
            include tillage management, nutrient management, windbreaks,  








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            specific plantings, habitat enhancement, and other improved  
            management practices, which they believe will increase  
            carbon sequestration and reduce GHG emissions. Therefore,  
            the grant program created by this bill will look for  
            projects on working lands that help the state meet its GHG  
            emission goals, but those projects will not be limited to  
            compost application and will not be limited to rangelands. 





          3)Working lands.  According to ARB's May 2014 "First Update to  
            the Climate Change Scoping Plan" (scoping plan update),  
            "recent research has shown that GHG emissions from urban areas  
            are much greater than those from agricultural lands on a  
            per-acre basis." Also according to the scoping plan update  
            there are many GHG emission reduction and carbon sequestration  
            opportunities that could be realized in the agriculture  
            sector. The scoping plan update stated that restoration and  
            improved management practices on rangelands that increase  
            carbon storage should be incentivized. In the scoping plan  
            update, ARB combines rangelands with forestland and calls them  
            working lands.  ARB categorizes all other agricultural  
            practices in a section on agriculture. AB 761, for purposes of  
            the grant program, combines rangeland and other agricultural  
            land together as working lands. This might be more appropriate  
            than separating one agricultural practice from all others.   
            The grant program would develop incentives to increase carbon  
            sequestration and reduce GHG emissions for all different types  
            of crop and livestock production and could help create  
            comparisons across the industry.          


          4)Carbon farm planning.  The bill defines carbon farm planning  
            as a planning process that identifies GHG capture and  
            mitigation opportunities on working lands and quantifies those  
            benefits using the United States Department of Agriculture's  
            (USDA) COMET-Planner, COMET-Farm, and other quantification  








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            tools. These quantification tools were designed by the USDA in  
            partnership with Colorado State University to help enable  
            agricultural producers to calculate how much carbon their  
            conservation actions can remove from the atmosphere.  
            COMET-Planner and COMET-Farm are new tools and are currently  
            for voluntary reductions.  It is unclear whether they will  
            mesh with how ARB will quantify reductions from carbon farm  
            planning. Information provided by the author states that  
            carbon farming improves carbon sequestration on agricultural  
            and rangelands while creating additional water, habitat, and  
            economic viability benefits for farmers and working land  
            managers. According to the author, many carbon farming  
            practices are not new, but if applied appropriately on  
            rangelands and croplands can significantly enhance carbon  
            sequestration in both vegetation and soils.  


            After the initial title and definition, AB 761 only uses the  
            term carbon farm planning again once in condition 9 of the 10  
            possible ways projects may qualify for grants.  However,  
            condition 9 allows for similar planning processes that are not  
            carbon farm planning. While carbon farm planning is an  
            interesting concept, as currently drafted, it seems to serve  
            no real purpose for the bill. It might be more appropriate to  
            make the bill focused on GHG emission reductions and carbon  
            sequestration on working lands while prioritizing the  
            demonstration of carbon farm planning. The author and  
            Committee may wish to consider amending the bill to name the  
            Division Carbon Sequestration on Working Lands and prioritize  
            carbon farm planning for awarding project grants.


          5)Department of Conservation.  DOC has received funding from SGC  
            to administer the Sustainable Agricultural Lands Conservation  
            program, which protects agricultural land with easements, and  
            received funding from SGC to develop a program to assist with  
            management of agricultural land in ways to assist California  
            with meeting its GHG reduction goals. However, the author does  
            not believe DOC is the most appropriate agency to administer  








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            this grant program. The author believes the California  
            Department of Food and Agriculture (CDFA) would be the more  
            appropriate agency to administer this grant program. CDFA has  
            a single focus on working lands and is a member of the Climate  
            Action Team. If CDFA was the lead agency, AB 761 would be  
            consistent with recommendations in the scoping plan update  
            which stated, "CDFA will strengthen technical assistance  
            programs and associated financial incentives to help  
            agricultural operators develop carbon plans and implement GHG  
            emission reduction practices."  The author and Committee may  
            wish to consider amending the bill to make CDFA the agency  
            with the lead role administering the grant program while  
            consulting with ARB, CalRecycle, DOC, and DWR.


          6)Suggested Amendments. In addition to the other amendments  
            suggested above the author and committee may wish consider  
            amending the bill to:


             a)   Require each project to be on working lands and assist  
               the state in meeting its GHG emission reduction goals.


             b)   Require CDFA to prioritize projects with the greatest  
               level of benefits.


             c)   Reduce the number of benefits and changes the benefits  
               to more closely align with the intent of the bill.


             d)   Require CDFA to quantify the benefits of each project  
               awarded through the grant program and post the information  
               on their website.   


          7)Opposition.  The Center for Biological Diversity opposes AB  
            761 because it believes the bill assumes that livestock  








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            rangelands are the best possible end use of compost and would  
            directly fund only livestock rangelands. However, the  
            definition of working lands includes all privately owned  
            agricultural lands. In addition, the committee amendments will  
            broaden the type of projects eligible beyond compost and  
            rangelands.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Audubon California


          California Cattlemen's Association


          California Trout


          Carbon Cycle Institute


          Environmental Action Committee of West Marin


          Land Trust of Santa Cruz County


          Peninsula Open Space Trust


          Santa Clara Valley Open Space Authority 









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          Opposition


          Center for Biological Diversity (unless amended)




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092