Amended in Senate April 6, 2015

Senate BillNo. 367


Introduced by Senator Wolk

February 24, 2015


An act to amend Sectionsbegin delete 561, 566,end deletebegin insert 566end insert and 568 ofbegin insert, and to add Sections 562 and 569 to,end insert the Food and Agricultural Code,begin insert to amend Section 39719 of the Health and Safety Code, and to add Section 75217.5 to the Public Resources Code,end insert relating to agriculturebegin insert, and making an appropriation thereforend insert.

LEGISLATIVE COUNSEL’S DIGEST

SB 367, as amended, Wolk. begin deleteAgriculture: environmental farming program: greenhouse gases. end deletebegin insertAgricultural lands: greenhouse gases.end insert

begin delete

Existing

end delete

begin insert (1)end insertbegin insertend insertbegin insertExistingend insert law, the Cannella Environmental Farming Act of 1995, requires the Department of Food and Agriculture to establish and oversee an environmental farming program to provide incentives to farmers whose practices promote the well-being of ecosystems, air quality, and wildlife and their habitat. The act requires the Secretary of Food and Agriculture to convene a 5-member Scientific Advisory Panel on Environmental Farming for the purpose of providing advice and assistance to federal, state, and local government agencies on issues relating to air, water, and wildlife habitat, asbegin delete provided.end deletebegin insert specified.end insert

This bill wouldbegin delete state the intent of the Legislature (1) to enhance the long-term viability of California agriculture by supporting activities that reduce global warming impacts that may negatively impact it and the rest of the state and (2) that the department support California agriculture in pursuing reductions in greenhouse gas emissions and increased carbon storage in agricultural soils and woody vegetation. The bill wouldend delete require the environmental farming programbegin delete, in addition to incentives,end delete to providebegin insert, in addition to incentives,end insert low-interest loans, technical assistance, educational materials and outreach, or a combination of these things to farmers whose practices promote the well-being of ecosystems, air quality, and wildlife and their habitat, and reduce on-farm greenhouse gas emissions or increase carbon storage in agricultural soils and woody biomass, or both. The bill wouldbegin delete state the intent of the Legislature to increase the membership of the Scientific Advisory Panel on Environmental Farming and would require it additionally to advise and assist on climate change. The bill would require the panel to advise the secretary and the State Board of Food and Agriculture on the creation of programs to provide technical, educational, and financial assistance to agricultural producers that provide multiple environmental and health benefits.end deletebegin insert revise and recast the provisions regarding the panel, including, among other things, the panel’s membership and duties, as specified. The bill would require the panel to provide a biennial report describing its work to the Legislature and the Governor, among others.end insert

begin insert

The bill would provide that $50,000,000 shall be made available to the department, upon appropriation, to support on-farm projects to demonstrate agricultural management practices and activities that reduce greenhouse gas emissions and increase carbon storage in agricultural soils and woody biomass, as specified.

end insert
begin insert

(2) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 20% of the annual proceeds of the fund to the Strategic Growth Council for the Affordable Housing and Sustainable Communities Program, as provided.

end insert
begin insert

This bill would require the council, no later than the 2015-16 fiscal year, to establish and administer a grant program, as part of the Sustainable Agricultural Lands Conservation Program established by the council in conjunction with the Affordable Housing and Sustainable Communities Program, to provide financial incentives for the adoption and use of land management practices that reduce greenhouse gas emissions, sequester carbon in solid and woody biomass, and provide other cobenefits on working agricultural operations, as specified.

end insert
begin insert

The bill would require no less than 2% of the annual proceeds of the fund, from the proceeds appropriated to the council, be expended for agricultural land protection consistent with the provisions of that grant program, thereby making an appropriation.

end insert

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin deleteP3    1

SECTION 1.  

Section 561 of the Food and Agricultural Code
2 is amended to read:

3

561.  

The Legislature finds and declares the following:

4(a) California agriculture helps to feed the world and fuel our
5economy. Agriculture provides one out of every 10 jobs in
6California, and our state has led the nation in total farm production
7every year since 1948. During 1993, California’s 76,000 farms
8generated nearly $20 billion in cash receipts and another $70 billion
9in economic activity.

10(1) California provides the most agriculture of any state in the
11country, providing the majority of the country’s fruits, vegetables,
12nuts, and dairy products.

13(2) Dependent on land and natural resources, California
14agriculture is uniquely vulnerable to global warming. Global
15warming poses a serious threat to California agriculture with rising
16temperatures, increases in extreme weather events, constrained
17water resources, reduced winter chilling hours, and rising sea
18levels.

19(3) California agriculture is also uniquely positioned to provide
20climate benefits by reducing greenhouse gas emissions. Research
21funded by the California Energy Commission’s Public Interest
22Energy Research (PIER) program suggests that some agricultural
23practices will not only reduce greenhouse gas emissions, but they
24may also help to store carbon in soils and trees. Carbon storage is
25an important strategy to help meet the state’s greenhouse gas
26emissions targets.

27(4) Steps taken by California agriculture to reduce greenhouse
28gas emissions and sequester atmospheric carbon can provide other
29important environmental cobenefits, such as improved air and
P4    1water quality, water conservation, enhanced wildlife habitat, and
2healthy rural communities.

3(5) It is therefore the intent of the Legislature to enhance the
4long-term viability of California agriculture by supporting activities
5that reduce global warming impacts that may negatively impact it
6and the rest of the state.

7(6) It is further the intent of the Legislature that the department,
8pursuant to this article, support California agriculture in pursuing
9reductions in greenhouse gas emissions and increased carbon
10storage in agricultural soils and woody vegetation.

11(b) Many farmers engage in practices that contribute to the
12well-being of ecosystems, air quality, and wildlife and their habitat.
13Agriculture plays a pivotal role in preserving open space that is
14vital to the environment. Seventy-five percent of the nation’s
15wildlife live on farms and ranches. Freshwater streams and
16stockponds on farms and ranches provide habitat to millions of
17fish. Corn, wheat, rice, and other field crops provide bountiful
18food and habitat for deer, antelope, ducks, geese, and other wildlife.

19(c) Environmental laws should be based on the best scientific
20evidence gathered from public and private sources.

21(d) Best scientific evidence should include the net environmental
22impact provided by agriculture.

23(e) Additional research is necessary to adequately inventory the
24impact that agriculture has on the environment. Recognition should
25be afforded to agricultural activities that produce a net benefit for
26the environment, which is consistent with the growing trend of
27providing incentives for the private sector to undertake economic
28activities that benefit the environment.

end delete
29begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 562 is added to the end insertbegin insertFood and Agricultural
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert562.end insert  

The Legislature further finds and declares all of the
32following:

33(a) California’s agricultural output is larger and more diverse
34than any state in the United States, providing the majority of the
35country’s fruits, vegetables, nuts, and dairy products.

36(b) Dependent on land and natural resources, California
37agriculture is uniquely vulnerable to climate change, which poses
38a serious threat to California agriculture with rising temperatures,
39increases in extreme weather events, constrained water resources,
40reduced winter chilling hours, and rising sea levels.

P5    1(c) California agriculture also is uniquely positioned to provide
2climate benefits by reducing greenhouse gas emissions. Research
3funded by the State Energy Resources and Conservation
4Development Commission’s Public Interest Energy Research
5(PIER) program finds that some agricultural practices will not
6only reduce greenhouse gas emissions, but they also may help to
7store carbon in soils and trees. Carbon storage is an important
8strategy to help meet the state’s greenhouse gas emissions targets.

9(d) Steps taken by those working in California agriculture to
10reduce greenhouse gas emissions and sequester atmospheric
11carbon can provide other important environmental cobenefits,
12such as improved air and water quality, water conservation,
13enhanced wildlife habitat, and healthier rural communities.

14(e) It is, therefore, the intent of the Legislature to enhance the
15long-term viability of California agriculture by supporting
16activities that reduce climate change impacts that may negatively
17impact it and the rest of the state.

18(f) It is further the intent of the Legislature that the department,
19pursuant to this article, support the state’s agricultural sector in
20pursuing on-farm practices and activities that reduce greenhouse
21gas emissions and increase carbon storage in agricultural soils
22and woody biomass.

end insert
23

SEC. 2.  

Section 566 of the Food and Agricultural Code is
24amended to read:

25

566.  

(a) begin insert(1)end insertbegin insertend insertThe department shall establish and oversee an
26environmental farming program. The program shall provide
27incentives, low-interest loans, technical assistance, educational
28materials and outreach, or a combination of these things to farmers
29whose practices promote the well-being of ecosystems, air quality,
30and wildlife and theirbegin delete habitat,end deletebegin insert habitatend insert and reduce on-farm
31greenhouse gas emissions or increase carbon storage in agricultural
32soils and woody biomass, or both.

begin insert

33(2) The department may provide support through the program
34that may include, but need not be limited to, permit assistance and
35coordination and the funding of on-farm demonstration projects
36in furtherance of the goals of the program.

end insert

37(b) The department may assist in the compilation of scientific
38begin delete evidenceend deletebegin insert dataend insert from public and private sources, including the
39scientific community, industry, conservation organizations, and
40federal, state, and local agencies identifying the net environmental
P6    1impactsbegin delete thatend deletebegin insert ofend insert agriculturebegin delete creates forend deletebegin insert onend insert the environment. The
2department shall serve as the depository of this information and
3provide it to federal, state, and local governments, as needed.

4(c) The department shall conduct the activities specified in this
5article with existing resources, to the extent they are available.

6

SEC. 3.  

Section 568 of the Food and Agricultural Code is
7amended to read:

8

568.  

(a) The secretary shall convene abegin delete five-memberend delete Scientific
9Advisory Panel on Environmental Farming to advise and assist
10federal, state, and local government agencies on issues relating to
11air, water, climate change, and wildlifebegin delete habitat to do the following:end delete
12begin insert habitat.end insert

begin insert

13(b) (1) The panel shall consist of the following members:

end insert
begin insert

14(A) The secretary, or his or her designee.

end insert
begin insert

15(B) The Secretary of the Natural Resources Agency, or his or
16her designee.

end insert
begin insert

17(C) The Secretary for Environmental Protection, or his or her
18designee.

end insert
begin insert

19(D) One member, appointed by the Secretary for Environmental
20Protection, who shall be a member of a nonprofit organization
21with expertise in climate change and its impacts on California
22agriculture.

end insert
begin insert

23(E) One member, appointed by the Secretary of the Natural
24Resources Agency, who shall be affiliated with the California
25Association of Resource Conservation Districts.

end insert
begin insert

26(F) Four members appointed by the secretary, according to the
27following:

end insert
begin insert

28(i) Three members who are agricultural producers in the state
29with at least five years of training and experience in the field of
30agriculture. At least one of these members shall be registered as
31a producer pursuant to the California Organic Products Act of
322003 (Chapter 10 (commencing with Section 46000) of Division
3317).

end insert
begin insert

34(ii) One member who is affiliated with the University of
35California Cooperative Extension.

end insert
begin insert

36(2) The secretary may appoint nonvoting ex officio members to
37the panel after consulting with the panel.

end insert
begin insert

38(3) The secretary shall serve as the chair of the panel.

end insert
begin insert

P7    1(4) Members of the panel shall be highly qualified and
2professionally active in their chosen field or engaged in the conduct
3of scientific research.

end insert
begin insert

4(5) The members of the panel identified in subparagraphs (A)
5to (C), inclusive, of paragraph (1) shall serve as voting ex officio
6members of the panel. Of the members first appointed to the panel
7pursuant to subparagraphs (D) to (F), inclusive, of paragraph (1),
8three shall serve for a term of two years and three shall serve for
9a term of three years, as determined by lot. Thereafter, members
10shall be appointed for a term of three years.

end insert
begin insert

11(c) The panel, at a minimum and as necessary, shall do all of
12the following:

end insert

13(1) Review data on the impact that agriculture has on the
14environment and recommend to appropriate state agencies data
15that the panelbegin delete approves asend deletebegin insert determines isend insert scientifically valid. A state
16agency that receives data recommended by the panel may adopt
17and incorporate the data into the appropriate program. If a state
18agency does not utilize the data recommended by the panel,begin delete itend deletebegin insert the
19state agencyend insert
shall provide the panel with a written statement of
20reasons for not utilizing the data. The reasons, at a minimum, shall
21specify the scientific basis for not utilizing the data. The reasons
22shall be provided within 180 days of receiving the data from the
23panel.

24(2) Compile the net environmental impactsbegin delete thatend deletebegin insert ofend insert agriculture
25begin delete creates forend deletebegin insert onend insert the environment, identified pursuant to paragraph
26(1).

27(3) Research, review, and comment on data upon which
28proposed environmental policies and regulatory programs are based
29to ensure that the environmental impacts of agricultural activities
30are accurately portrayed and to identify incentives that may be
31provided to encourage agricultural practices with environmental
32benefits.

33(4) Assist government agencies to incorporate benefits identified
34pursuant to paragraph (1) into environmental regulatory programs.

35(5) begin deleteAdvise end deletebegin insertReview and advise end insertthe secretary and the State Board
36of Food and Agriculture onbegin delete the creation ofend deletebegin insert proposedend insert programsbegin delete toend delete
37begin insert and projects, including, but not limited to, competitive grants, thatend insert
38 provide technical, educational, and financial assistance to
39agricultural producers thatbegin delete provideend deletebegin insert will result inend insert multiple
40environmental and health benefits, including, but not limited to,
P8    1reduced greenhouse gas emissions, increased carbon storage in
2soils and woody biomass, improved air and water quality, enhanced
3wildlife habitat, and improved local health outcomes.

begin delete

4(b) Members of the panel shall be highly qualified and
5professionally active or engaged in the conduct of scientific
6research. Of the members first appointed to the panel, two shall
7serve for a term of two years and three shall serve for a term of
8three years, as determined by lot. Thereafter, members shall be
9appointed for a term of three years. The members shall be
10appointed as follows:

11(1) Three members shall be appointed by the secretary. At least
12one of these members shall have a minimum of five years of
13training and experience in the field of agriculture and shall
14represent production agriculture.

15(2) One member, who has a minimum of five years of training
16and experience in the field of human health or environmental
17science, shall be appointed by the Secretary of the Environmental
18Protection Agency.

19(3) One member, who has a minimum of five years of training
20and experience in the field of resource management, shall be
21appointed by the Secretary of the Resources Agency.

22(c)

end delete
begin insert

23(6) Review and recommend to the secretary and relevant state
24agencies the appropriate uses of available tools to demonstrate
25and quantify greenhouse gas emissions reductions, including, but
26not limited, to the Natural Resources Conservation Service’s
27Conservation Practice Standards and COMET-Farm and other
28quantification tools submitted by, among others, state agricultural
29commodity groups and academic institutions.

end insert

30begin insert(d)end insert The panel may establish ad hoc committees, which may
31include professionals or scientists, to assist it in performing its
32functions.

begin insert

33(e) (1) The panel shall submit a biennial report to the
34Legislature, the Governor, the agencies represented on the panel,
35and the State Board of Food and Agriculture that includes all of
36the following:

end insert
begin insert

37(A) A description of the work conducted by the panel during the
38prior two-year period.

end insert
begin insert

39(B) The panel’s action plan for the next two years, including
40goals and performance measures.

end insert
begin insert

P9    1(2) The first report shall be submitted two years after the panel’s
2first meeting or January 1, 2019, whichever occurs first.

end insert
begin insert

3(3) A report to be submitted pursuant to this subdivision shall
4be submitted in compliance with Section 9795 of the Government
5Code.

end insert
begin delete

6(d)

end delete

7begin insert(f)end insert The panel shall be created and maintained with funds made
8available from existing resources within the department to the
9extent they are available.

begin delete

10(e) It is the intent of the Legislature to enact legislation to
11increase the membership of the panel.

end delete
12begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 569 is added to the end insertbegin insertFood and Agricultural
13Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert569.end insert  

(a) The sum of fifty million dollars ($50,000,000) shall
15be available, upon appropriation by the Legislature, to the
16department to support on-farm projects to demonstrate agricultural
17management practices and activities that reduce greenhouse gas
18emissions and increase carbon storage in agricultural soils and
19woody biomass, including, but not limited to, all of the following:

20(1) Soil-building and carbon-sequestration practices, including
21the increased use of compost and biochar, cover crops, and low-
22and no-till practices.

23(2) Irrigation efficiency and water conservation measures,
24including soil-moisture monitoring, irrigation scheduling,
25high-efficiency water delivery technologies, dry farming, and
26on-farm water catchment.

27(3) On-farm alternative-energy production and energy
28efficiency, including on-farm bioenergy production from
29agricultural waste and improved on-farm operational efficiencies.

30(4) Wildlife habitat conservation, including hedgerow planting,
31native grass planting and restoration, agroforestry, and managed
32grazing for enhanced habitat.

33(b) The department, in consultation with the Scientific Advisory
34Panel on Environmental Farming, established pursuant to Section
35568, shall develop and implement a grant program to carry out
36the purposes of this article.

end insert
37begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 39719 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
38amended to read:end insert

39

39719.  

(a) The Legislature shall appropriate the annual
40proceeds of the fund for the purpose of reducing greenhouse gas
P10   1emissions in this state in accordance with the requirements of
2Section 39712.

3(b) To carry out a portion of the requirements of subdivision
4(a), annual proceeds are continuously appropriated for the
5following:

6(1) Beginning in the 2015-16 fiscal year, and notwithstanding
7Section 13340 of the Government Code, 35 percent of annual
8proceeds are continuously appropriated, without regard to fiscal
9years, for transit, affordable housing, and sustainable communities
10programs as following:

11(A) Ten percent of the annual proceeds of the fund is hereby
12continuously appropriated to the Transportation Agency for the
13Transit and Intercity Rail Capital Program created by Part 2
14(commencing with Section 75220) of Division 44 of the Public
15Resources Code.

16(B) Five percent of the annual proceeds of the fund is hereby
17continuously appropriated to the Low Carbon Transit Operations
18Program created by Part 3 (commencing with Section 75230) of
19Division 44 of the Public Resources Code.begin delete Fundsend deletebegin insert Moneysend insert shall be
20allocated by the Controller, according to requirements of the
21program, and pursuant to the distribution formula in subdivision
22(b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
23the Public Utilities Code.

24(C) Twenty percent of the annual proceeds of the fund is hereby
25continuously appropriated to the Strategic Growth Council for the
26Affordable Housing and Sustainable Communities Program created
27by Part 1 (commencing with Section 75200) of Division 44 of the
28Public Resources Code. Of the amount appropriated in this
29subparagraph, no less than 10 percent of the annualbegin delete proceeds,end delete
30begin insert proceedsend insert shall be expended for affordable housing, consistent with
31the provisions of that programbegin insert and no less than two percent of the
32annual proceeds shall be expended for agricultural land protection
33consistent with Section 75217.5 of the Public Resources Codeend insert
.

34(2) Beginning in the 2015-16 fiscal year, notwithstanding
35Section 13340 of the Government Code, 25 percent of the annual
36proceeds of the fund is hereby continuously appropriated to the
37High-Speed Rail Authority for the following components of the
38initial operating segment and Phase I Blended System as described
39in the 2012 business plan adopted pursuant to Section 185033 of
40the Public Utilities Code:

P11   1(A) Acquisition and construction costs of the project.

2(B) Environmental review and design costs of the project.

3(C) Other capital costs of the project.

4(D) Repayment of any loans made to the authority to fund the
5project.

6(c) In determining the amount of annual proceeds of the fund
7for purposes of the calculation in subdivision (b), thebegin delete fundsend deletebegin insert moneysend insert
8 subject to Section 39719.1 shall not be included.

9begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 75217.5 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
10to read:end insert

begin insert
11

begin insert75217.5.end insert  

(a) The Legislature finds and declares all of the
12following:

13(1) It is in the interest of the state to provide incentives for the
14use of agricultural land management practices that will reduce
15greenhouse gas emissions, sequester carbon in soils and woody
16biomass, and provide other cobenefits on working agricultural
17operations.

18(2) The council’s Sustainable Agricultural Lands Conservation
19Program, established pursuant to this chapter, has three elements,
20including financial incentives for the adoption and use of land
21management practices that achieve these goals.

22(3) The 2014 program guidelines establish grant programs for
23the 2014-15 fiscal year to promote agricultural lands strategic
24planning and agricultural land conservation easements, but the
25guidelines do not establish a grant program to provide incentives
26for agricultural land management practices.

27(b) (1) The council, no later than the 2015-16 fiscal year, shall
28establish and administer a grant program, as part of the
29Sustainable Agricultural Lands Conservation Program, to provide
30financial incentives for the adoption and use of land management
31practices that reduce greenhouse gas emissions, sequester carbon
32in solid and woody biomass, and provide other cobenefits on
33working agricultural operations. The council shall consult with
34the Department of Food and Agriculture and the Scientific Advisory
35Panel on Environmental Farming, established pursuant to Section
36568 of the Food and Agricultural Code, when developing the grant
37program and guidelines.

38(2) The council, as part of the grant program established
39pursuant to this subdivsion, shall give priority to working
P12   1agricultural operations that adopt land management practices
2that achieve the goals described in paragraph (1).

end insert


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