Amended in Senate April 13, 2015

Amended in Senate April 6, 2015

Senate Bill No. 367

Introduced by Senator Wolk

February 24, 2015

An act to amend Sections 566 and 568 of, and to add Sections 562 and 569 to, the Food and Agricultural Code, to amend Section 39719 of the Health and Safety Code, and to add Section 75217.5 to the Public Resources Code, relating to agriculture, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 367, as amended, Wolk. Agricultural lands: greenhouse gases.

(1) Existing 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, as specified.

This bill would require the environmental farming program to provide, in addition to incentives, 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 would 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.

The bill would provide that $50,000,000 shall be made available to the department, upon appropriation, begin insert from the Greenhouse Gas Reduction Fund end insert 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.

(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.

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 begin delete solid end delete begin insert soil end insert and woody biomass, and provide other cobenefits on working agricultural operations, as specified.

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

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 562 is added to the Food and Agricultural
Code, to read:

562.  

The Legislature further finds and declares all of the
following:

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

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

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

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

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

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

SEC. 2.  

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

566.  

(a) (1) The department shall establish and oversee an
environmental farming program. The program shall provide
incentives, 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.

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

(b) The department may assist in the compilation of scientific
data from public and private sources, including the scientific
community, industry, conservation organizations, and federal,
state, and local agencies identifying the net environmental impacts
of agriculture on the environment. The department shall serve as
the depository of this information and provide it to federal, state,
and local governments, as needed.

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

SEC. 3.  

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

568.  

(a) The secretary shall convene a Scientific Advisory
Panel on Environmental Farming to advise and assist federal, state,
and local government agencies on issues relating to air, water,
climate change, and wildlife habitat.

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

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

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

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

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

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

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

(i) Three members who are agricultural producers in the state
with at least five years of training and experience in the field of
agriculture. At least one of these members shall be registered as a
producer pursuant to the California Organic Products Act of 2003
(Chapter 10 (commencing with Section 46000) of Division 17).

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

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

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

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

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

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

(1) Review data on the impact that agriculture has on the
environment and recommend to appropriate state agencies data
that the panel determines is scientifically valid. A state agency that
receives data recommended by the panel may adopt and incorporate
the data into the appropriate program. If a state agency does not
utilize the data recommended by the panel, the state agency shall
provide the panel with a written statement of reasons for not
utilizing the data. The reasons, at a minimum, shall specify the
scientific basis for not utilizing the data. The reasons shall be
provided within 180 days of receiving the data from the panel.

(2) Compile the net environmental impacts of agriculture on
the environment, identified pursuant to paragraph (1).

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

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

(5) Review and advise the secretary and the State Board of Food
and Agriculture on proposed programs and projects, including,
but not limited to, competitive grants, that provide technical,
educational, and financial assistance to agricultural producers that
will result in multiple environmental and health benefits, including,
but not limited to, reduced greenhouse gas emissions, increased
carbon storage in soils and woody biomass, improved air and water
quality, enhanced wildlife habitat, and improved local health
outcomes.

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

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

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

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

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

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

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

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

SEC. 4.  

Section 569 is added to the Food and Agricultural
Code, to read:

569.  

(a) The sum of fifty million dollars ($50,000,000) shall
be available, upon appropriation by the Legislature, begin insert from the
Greenhouse Gas Reduction Fund, created pursuant to Section
16428.8 of the Government Code, end insert to the department 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, including,
but not limited to, all of the following:

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

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

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

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

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

begin insert

(c) The secretary and the Secretary of the Natural Resources
Agency shall enter into a memorandum of agreement among the
department, the Department of Conservation, and other relevant
state agencies to ensure the greatest possible coordination and
collaboration in implementing the programs and projects funded
pursuant to this section.

end insert

SEC. 5.  

Section 39719 of the Health and Safety Code is
amended to read:

39719.  

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

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

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

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

(B) Five percent of the annual proceeds of the fund is hereby
continuously appropriated to the Low Carbon Transit Operations
Program created by Part 3 (commencing with Section 75230) of
Division 44 of the Public Resources Code. Moneys shall be
allocated by the Controller, according to requirements of the
program, and pursuant to the distribution formula in subdivision
(b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
the Public Utilities Code.

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

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

(A) Acquisition and construction costs of the project.

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

(C) Other capital costs of the project.

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

(c) In determining the amount of annual proceeds of the fund
for purposes of the calculation in subdivision (b), the moneys
subject to Section 39719.1 shall not be included.

SEC. 6.  

Section 75217.5 is added to the Public Resources Code,
to read:

75217.5.  

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

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

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

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

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

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