BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 761
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|Author: |Levine |
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|Version: |6/2/2015 |Hearing |7/15/2015 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Rebecca Newhouse |
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SUBJECT: Carbon sequestration: working lands.
ANALYSIS:
Existing law:
1) Under the California Global Warming Solutions Act of 2006
(also known as AB 32), requires the California Air Resources
Board (ARB) to determine the 1990 statewide greenhouse gas
(GHG) emissions level and approve a statewide GHG emissions
limit that is equivalent to that level, to be achieved by
2020, and to adopt GHG emissions reductions measures by
regulation. ARB is authorized to include the use of
market-based mechanisms to comply with these regulations.
(Health and Safety Code (HSC) §38500 et seq.)
2) Establishes the Greenhouse Gas Reduction Fund (GGRF) in the
State Treasury, requires all moneys, except for fines and
penalties, collected pursuant to a market-based mechanism be
deposited in the fund. (Government Code §16428.8)
3) Prohibits the state from approving allocations for a measure
or program using GGRF moneys except after determining that the
use of those moneys furthers the regulatory purposes of AB 32,
and requires moneys from the GGRF be used to facilitate the
achievement of reductions of GHG emissions in California.
(HSC §39712)
4) Under the Cannella Environmental Farming Act of 1995, requires
the Department of Food and Agriculture (CDFA) to establish an
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environmental farming program to provide incentives to farmers
whose practices promote the wellbeing of ecosystems, air
quality, and wildlife and their habitat and requires the
Secretary of CDFA to convene a five-member Scientific Advisory
Panel (Panel) on Environmental Farming to advise and assist
federal, state, and local government agencies on issues
relating to air, water, and wildlife habitat. (Food and
Agricultural Code §561 et seq.)
This bill:
1) Defines "carbon farming" to mean implementing a land
management strategy for the purposes of reducing,
sequestering, and mitigating GHG emissions on working lands.
2) Defines "working lands" to mean privately owned agricultural
lands, ranches, and rangelands.
3) Requires CDFA, should funds be made available, to establish a
grant program to fund projects on working lands that increase
carbon sequestration and reduce GHG emissions.
4) Requires CDFA to prioritize funding for projects that provide
the greatest benefit, including carbon farming and related
co-benefits such as reduced irrigation demand, increased yield
and resiliency, enhanced habitat and biodiversity, reduced
water quality impacts, enhanced soil structure, and increased
soil water holding capacity.
5) Requires CDFA, in consultation with the Department of
Conservation, the Department of Resources Recycling and
Recovery (CalRecycle), the state Air Resources Board, and the
Department of Water Resources, to develop and adopt project
solicitation and evaluation guidelines.
6) Requires CDFA to quantify the benefits of each project funded
and to post this information on the department's website.
Background
1) Agriculture and Climate Change. Farmers and ranchers are
particularly sensitive to the effects of climate change as
agriculture is largely dependent upon weather and the
availability of natural resources. Additionally, the
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potential for agriculture to contribute to the mitigation of
climate change by sequestering carbon and reducing GHG
emissions have not been fully realized or utilized. GHG
reduction and sequestration activities in the agricultural
sector include reduced energy usage through more efficient
watering systems, such as drip irrigation; reduced nitrogen
fertilizer usage; shifting soil tilling practices to improve
soil carbon retention; changing livestock feed and practices
to reduce livestock enteric rumination, manure management
where manure is converted to alternative fuels; establishing
perennial vegetation on land retired from agriculture
production to sequester carbon in the plants and soil, and
many other practices. Many of these land management practices
result in significant environmental cobenefits, such as
improved water efficiency, improved air and water quality, and
greater resiliency of agricultural land to climate change.
2) Marin Carbon Project. The Marin Carbon Project was designed
to demonstrate on-farm practices that enhance carbon
sequestration, land productivity, ecosystem functions, and
mitigate climate change. One component of this project was
published in 2013 by R. Ryals and W.L. Silver in Ecological
Applications. This study applied half an inch of compost on
grasslands in Marin County and measured carbon storage in
soils over a three-year period. The authors concluded that a
single application of compost resulted in greater carbon
storage over time. AB 761 would fund projects that demonstrate
carbon farming and sequestration; however, the use of compost
is just one of several methods to achieve these goals. Others
include the use of biochar, cover crops, windbreaks,
irrigation practices, and reduced land tilling.
3) Healthy Soils Initiative. In his 2015-16 budget proposal,
Governor Brown directed $10 million from the GGRF toward a new
"Healthy Soils Initiative" to increase carbon in soil to
improve soil health, agricultural productivity, soil
water-holding capacity, and decreased sediment erosion.
Governor Brown directed CDFA, under its existing authority
provided by the Cannella Environmental Farming Act, to
coordinate with other key agencies to work on several new
initiatives. CDFA has since developed five action measures:
protect and restore soil carbon; identify funding
opportunities, including market development; provide research,
education and technical support; increase governmental
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efficiencies to enhance soil health on public and private
lands; and ensure interagency coordination and collaboration.
4) Statewide Waste Diversion Goals. CalRecycle is tasked with
diverting at least 75% of solid waste statewide by 2020.
Currently, organic materials, including green waste, make up
one-third of the waste stream (approximately 11 million tons)
and food waste continues to be the highest single category of
disposal at over 15%. Green materials, such as lumber,
cardboard, and leaves and grass comprise over 20%.
CalRecycle is also charged with implementing its Strategic
Directive 6.1, which calls for reducing organic waste disposal
by 50% by 2020. According to CalRecycle, significant gains in
organic waste diversion (through recycling technologies for
organic waste including composting and anaerobic digestion)
are necessary to meet the 75% goal and to implement Strategic
Directive 6.1.
As previously noted, organic waste that ends up in landfills
generates landfill gas, 50% of which is methane, from the
anaerobic decomposition of organic materials such as food,
paper, wood, and green material. In order to address the
large percentage of organic waste disposed of in landfills, AB
1826 (Chesbro, Chapter 727, Statutes of 2014) requires
businesses that generate specified amounts of organics and
greenwaste to arrange for recycling services of that waste.
Comments
1) Purpose of Bill. According to the author, "AB 761 establishes
a framework to evaluate the potential of using best management
practices on agricultural lands, ranches, and rangelands to
increase carbon sequestration and water retention. Best
practices may include, compost application, riparian
restoration, promotion of native grasses and plants, and
planting windbreaks. These efforts could be "low hanging
fruit" that will go a long way toward curbing the effects of
climate change and reduce water needs. Initial research shows
we can remove 3 years' worth of emissions from the atmosphere
while reducing water needs by as much 25%."
2) SB 367 (Wolk). This bill is similar to SB 367, currently in
the Assembly Natural Resources Committee, in that it would
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create a grant program established by CDFA to fund on-farm
projects that increase soil carbon sequestration and reduce
GHG emissions. AB 761 would expand upon the component of SB
367 regarding on-farm projects that demonstrate soil-building
and carbon-sequestration practices. Should both of these
bills move forward, the bills need to be amended to harmonize
terminology, definitions, and code sections to avoid confusion
and conflict with the statute.
3) GGRF and the budget. AB 761 does not specify a funding source
for the program, however, as the program is focused on
reducing and sequestering GHG emissions, GGRF moneys may be a
potential funding source.
As budget discussions on a cap-and-trade investment strategy
have been pushed to later this session, an opportunity exists
to have a comprehensive discussion on the universe of GGRF
proposals currently in the Legislature, during budget
negotiations this summer. If the Legislature feels that the
program established through AB 761 is an appropriate
expenditure of GGRF moneys, then this measure should also be
considered through the budget process for cap-and-trade
expenditures, along with all other measures proposing to
expend, or authorize for expenditure, GGRF moneys.
Related/Prior Legislation
SB 367 (Wolk) of 2015, would recast and expand the membership and
the duties of CDFA's Science Advisory Panel on Environmental
Farming; would appropriate $25 million from the Greenhouse Gas
Reduction Fund to CDFA for the establishment of a new grant
program to support on-farm practices that reduce GHG emissions
and increase carbon storage in soil; and would appropriate 2% of
the proceeds from this fund to the Sustainable Agricultural Lands
Conservation Program for these activities. SB 367 is currently
in the Assembly Natural Resources Committee.
DOUBLE REFERRAL:
This measure was heard in Senate Agriculture Committee on June
30, 2015, and passed out of committee with a vote of 3-0.
SOURCE: Author
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SUPPORT:
Audubon California
California Cattlemen's Association
California Food Policy Council
California State Grange
California Trout
Carbon Cycle Institute
City of San Francisco, Mayor Edwin Lee
Land Trust of Santa Cruz County
Peninsula Open Space Trust
Recology
West Marin Environmental Action Committee
OPPOSITION:
None received
ARGUMENTS IN
SUPPORT: Supporters state that through carbon farming,
agricultural lands and rangelands can improve carbon capture and
sequestration
while creating additional water, habitat, and economic viability
benefits for
farmers and working land managers. They also note that if
California hopes to
meet its ambitious GHG reduction goals, it must seek GHG
reductions in all
sectors, and that California's working lands have enormous,
untapped potential for
pulling carbon out of the atmosphere and transferring it
beneficially to soils and
plant material.
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