BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1482 (Gordon) - Climate adaptation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 9, 2015 |Policy Vote: N.R. & W. 7 - 2, | | | E.Q. 5 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1482 would require the Natural Resources Agency (agency) to update its climate adaptation strategy (CAS) by July 1, 2017 and every three years thereafter and to coordinate adaption activities within its agency. This bill would also require the Office of Planning and Research (OPR) to update the state's Five-year Infrastructure Plan to take into account current and future climate change impacts by July 1, 2019. Fiscal Impact: Unknown ongoing costs in the low millions of dollars to the General Fund for each update of Safeguarding California Plan after 2017. Unknowing costs to the General Fund for OPR to update the Infrastructure Plan as specified. Potential costs up to $175,000 to the Greenhouse Gas Reduction Fund (special) for the ARB to ensure that projects both reduce AB 1482 (Gordon) Page 1 of ? GHG emissions and improve climate adaptation. Unknown cost pressures in the millions of dollars to the General Fund and various special funds to implement the climate adaptation strategy and the Infrastructure Plan. Background: The California Global Warming Solutions Act of 2006 (referred to as AB 32, HSC §38500 et seq.) requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level, to approve a statewide GHG emissions limit equivalent to that level that will 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 the regulations. All monies, except for fines and penalties, collected pursuant to a market-based mechanism are deposited in the Greenhouse Gas Reduction Fund (GGRF). Existing law requires that the GGRF only be used to facilitate the achievement of reductions of GHG emissions consistent with AB 32 (HSC §39710 et seq.). Section 16428.9 of the Government Code establishes requirements of a state agency who is expending GGRF monies appropriated to it by the Legislature including the establishment of a record that consists of information including a description of each expenditure and how each expenditure will achieve and maintain GHG emission reductions. The Air Resources Board (ARB) is responsible for developing guidance on reporting and quantification methods for all state agencies that receive appropriations to ensure that the requirements are met. In 2014, California voters approved the Water Quality, Supply, and infrastructure Improvement Act of 2014 (Proposition 1) which authorized $7.454 billion in general obligation bonds for state water supply infrastructure projects, ecosystem and watershed protection and restoration, and drinking water protection. In December 2009, the Resources Agency released the California Climate Adaptation Strategy, pursuant to Executive Order S-13-2008 which directed the Resources Agency to identify how state agencies can respond to rising temperatures, changing precipitation patterns, sea level rise, and extreme natural events. The report noted that climate change is already affecting California with increased average temperatures, more AB 1482 (Gordon) Page 2 of ? extreme hot days, fewer cold nights, shifts in the water cycle, and the lengthening of the growing season. The report stated that not addressing these changes could cause significant economic damages to the state in the trillions of dollars; thus, the state must address climate change challenges with both climate adaptation and mitigation. The 2014 Safeguarding California Plan is an update to this strategy. Proposed Law: This bill would require the agency to update the state's CAS, known as the Safeguarding California Plan, by July 1, 2017 and every three years thereafter. The agency would be required to coordinate with other state agencies to identify a lead agency or group of agencies to lead adaptation efforts in each sector. The updates would be required to include: (1) vulnerabilities to climate change by various sectors including water, energy, transportation, public health, agriculture, emergency services, forestry, biodiversity and habitat, and ocean and coastal resources and (2) priority actions needed to reduce risks in these sectors. The agency would also be required to report to the Legislature on actions taken to implement the Safeguarding California Plan. The agency, in coordination with the Strategic Growth Council (SGC), would be required to review and coordinate existing grants and programs to maximize the following objectives: Educate the public about consequences of climate change Ensuring there is a continued repository for scientific data on climate change and climate adaptation in the state. Establish policies, guidelines, and guidance at the state level to inform planning decisions. Encourage regional collaborative planning efforts to address climate change impacts and adaptation. Promote water supply, delivery, and capture system that is coordinated and can withstand a multiyear drought scenario. Build resilient communities. Protect and enhance habitat, species strongholds, and wildlife corridors. The agency, in coordination with the SGC, would also be required to identify and coordinate opportunities among its departments for the purposes of climate adaptation when expending state funds, including from the GGRF and Proposition1. AB 1482 (Gordon) Page 3 of ? This bill would also require the Office of Planning and Research to update the state's Five-Year Infrastructure Plan to take into account current and future climate change impacts in all infrastructure projects by July 1, 2019. Related Legislation: SB 246 (Wieckowski) would create state report updates on climate adaptation, as well as an advisory committee to OPR for expertise and local and regional perspectives. SB 246 is currently in the Assembly Appropriations Committee. Staff Comments: The agency believes that the cost to develop the CAS updates as required by the bill will be minor and absorbable because there the positions within the agency and its departments to perform this work already exist. However, staff notes that the CAS updates are not standalone efforts, but are informed by the agency's climate change assessments. The cost of the four assessments previously undertaken has ranged from $900,000 to $5 million each based on that assessment's scope. In its unknown what future assessments will cost depending on the data needs, but staff assumes that the costs for future assessments necessary to support future CAS updates will therefore likely be in the low millions of dollars. Staff notes that the next CAS update is scheduled for 2017. This update is being supported by the fourth assessment, which has already been funded. Therefore, the costs as a result of this bill will begin after 2017. The ARB notes that it anticipates costs of $175,000 annually from the GGRF to ensure that climate adaptation projects that expend GGRF money achieve both GHG reductions as well as climate adaptation. ARB also estimates costs associated with potentially needing to develop new GHG emission reduction quantification methodologies, and to incorporate any new projects into its guidance and report on GGRF expenditures. Staff notes that these may not be new responsibilities to the ARB as existing law directs GGRF expenditures to take into account, to the extent feasible, the lessening of impacts and effects of climate change AB 1482 (Gordon) Page 4 of ? on the state's communities, economy, and environment (HSC §39712). This bill would require the agency to report to the Legislature on actions taken to implement the CAS. Staff recommends that the author specify with what frequency the agency should report to the Legislature. -- END --