BILL ANALYSIS                                                                                                                                                                                                    Ó



           SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1482 (Gordon) - Climate adaptation
          
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          |Version: July 9, 2015           |Policy Vote: N.R. & W. 7 - 2,   |
          |                                |          E.Q. 5 - 1            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Marie Liu           |
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          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  







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            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  








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          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. 








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          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  








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          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. 




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