Amended in Senate May 6, 2015

Amended in Senate April 13, 2015

Amended in Senate April 6, 2015

Senate BillNo. 367


Introduced by Senator Wolk

February 24, 2015


An act to amend Sectionsbegin delete 566end deletebegin insert 564, 566,end insert 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.begin insert Existing law authorizes the department to assist in compiling scientific evidence identifying the net environmental impacts that agriculture creates for the environment and requires the department to serve as depository for that information and provide it to federal, state, and local governments, as needed. end insert

This bill would require the environmental farming program tobegin delete provide, in addition to incentives,end deletebegin insert provideend insert low-interest loans, technical assistance, educational materials and outreach, or a combination of thesebegin delete thingsend deletebegin insert things, instead of incentives,end insert 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 revise and recast the provisions regardingend deletebegin insert renameend insert thebegin delete panel, including, among other things,end deletebegin insert panel the Environmental Farming Advisory Panel and reviseend insert 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.begin insert The bill would require the State Air Resources Board, in consultation with the panel, to considerend insertbegin insert and recommend, as appropriate, the use of available tools to demonstrate and quantify greenhouse gas emissions reductions from a specified grant program. The bill would eliminate the authorization for the department to assist in compiling scientific evidence identifying the net environmental impacts that agriculture creates for the environment and the requirement that the department serve as depository for that information to federal, state, and local governments.end insert

The bill would provide that $50,000,000 shall be made available to the department, upon appropriation, from the Greenhouse Gas Reduction Fund 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 soil and woody biomass, and provide other cobenefits on working agricultural operations, as specified.

The bill would continuously appropriate 2% of the annual proceeds of the fund to the Strategic Growth Council to 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:

P3    1

SECTION 1.  

Section 562 is added to the Food and Agricultural
2Code
, to read:

3

562.  

The Legislature further finds and declares all of the
4following:

5(a) California’s agricultural output is larger and more diverse
6than any state in the United States, providing the majority of the
7country’s fruits, vegetables, nuts, and dairy products.

8(b) Dependent on land and natural resources, California
9agriculture is uniquely vulnerable to climate change, which poses
10a serious threat to California agriculture with rising temperatures,
11increases in extreme weather events, constrained water resources,
12reduced winter chilling hours, and rising sea levels.

13(c) California agriculture also is uniquely positioned to provide
14climate benefits by reducing greenhouse gas emissions. Research
15funded by the State Energy Resources and Conservation
16Development Commission’s Public Interest Energy Research
17(PIER) program finds that some agricultural practices will not only
18reduce greenhouse gas emissions, but they also may help to store
19carbon in soils and trees. Carbon storage is an important strategy
20to help meet the state’s greenhouse gas emissions targets.

21(d) Steps taken by those working in California agriculture to
22reduce greenhouse gas emissions and sequester atmospheric carbon
23can provide other important environmental cobenefits, such as
24improved air and water quality, water conservation, enhanced
25wildlife habitat, and healthier rural communities.

P4    1(e) It is, therefore, the intent of the Legislature to enhance the
2long-term viability of California agriculture by supporting activities
3that reduce climate change impacts that may negatively impact it
4and the rest of the state.

5(f) It is further the intent of the Legislature that the department,
6pursuant to this article, support the state’s agricultural sector in
7pursuing on-farm practices and activities that reduce greenhouse
8gas emissions and increase carbon storage in agricultural soils and
9woody biomass.

10begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 564 of the end insertbegin insertFood and Agricultural Codeend insertbegin insert is
11amended to read:end insert

12

564.  

Unless the context otherwise requires, the following
13definitions govern the construction of this article:

14(a) “Agricultural activities” means those activities that generate
15products as specified in Section 54004.

16(b) “Department” means the Department of Food and
17Agriculture.

18(c) “Panel” means thebegin delete Scientificend deletebegin insert Environmental Farmingend insert
19 Advisorybegin delete Panel on Environmental Farming.end deletebegin insert Panel.end insert

20(d) “Secretary” means the Secretary of Food and Agriculture.

21

begin deleteSEC. 2.end delete
22begin insertSEC. 3.end insert  

Section 566 of the Food and Agricultural Code is
23amended to read:

24

566.  

(a) (1) The department shall establish and oversee an
25environmental farming program. The program shall provide
26begin deleteincentives,end delete low-interest loans, technical assistance, educational
27materials and outreach, or a combination of these things to farmers
28whose practices promote the well-being of ecosystems, air quality,
29and wildlife and their habitat and reduce on-farm greenhouse gas
30emissions or increase carbon storage in agricultural soils and
31woody biomass, or both.

32(2) The department may provide support through the program
33that may include, but need not be limited to, permit assistance and
34coordination and the funding of on-farm demonstration projects
35in furtherance of the goals of the program.

begin delete

36(b) The department may assist in the compilation of scientific
37 data from public and private sources, including the scientific
38community, industry, conservation organizations, and federal,
39state, and local agencies identifying the net environmental impacts
40of agriculture on the environment. The department shall serve as
P5    1the depository of this information and provide it to federal, state,
2and local governments, as needed.

3(c)

end delete

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

6

begin deleteSEC. 3.end delete
7begin insertSEC. 4.end insert  

Section 568 of the Food and Agricultural Code is
8amended to read:

9

568.  

(a) The secretary shall convenebegin delete a Scientificend deletebegin insert an
10Environmental Farmingend insert
Advisory Panelbegin delete on Environmental Farmingend delete
11 to advisebegin insert the secretary on the implementation of an environmental
12farming program, established pursuant to Section 566,end insert
and assist
13federal, state, and local governmentbegin delete agenciesend deletebegin insert agencies, as
14appropriate or necessary,end insert
on issues relating tobegin insert the impact of
15agricultural practices onend insert
air, water, climate change, and wildlife
16habitat.

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

begin delete

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

19(B) The Secretary of the Natural Resources Agency, or his or
20her designee.

21(C) The Secretary for Environmental Protection, or his or her
22designee.

23(D) One member,

end delete

24begin insert(A)end insertbegin insertend insertbegin insertTwo membersend insert appointed by the Secretary for Environmental
25begin delete Protection, who shall be a member of a nonprofit organization
26withend delete
begin insert Protection. One of these members shall haveend insert expertise in
27climate change and its impacts on Californiabegin delete agriculture.end delete
28begin insert agriculture, and the other member shall have expertise in
29greenhouse gas emissions reduction practices related to
30agriculture.end insert

begin delete

31(E) One member,

end delete

32begin insert(B)end insertbegin insertend insertbegin insertTwo membersend insert appointed by the Secretary of the Natural
33Resourcesbegin delete Agency, whoend deletebegin insert Agency. One of these membersend insert shall be
34affiliated with the California Association of Resource Conservation
35Districts.

begin delete

36(F)

end delete

37begin insert(C)end insert Four members appointed by the secretary, according to the
38following:

39(i) Three members who are agricultural producers in the state
40with at least five years of training and experience in the field of
P6    1agriculture. At least one of these members shall be registered as a
2 producer pursuant to the California Organic Products Act of 2003
3(Chapter 10 (commencing with Section 46000) of Division 17).

4(ii) One member who is affiliated with the University of
5California Cooperative Extension.

6(2) The secretary may appointbegin delete nonvoting ex officioend deletebegin insert otherend insert
7 members to the panel after consulting with the panel.

8(3) The secretary shallbegin insert designate the member who is toend insert serve as
9the chair of the panel.

10(4) Members of the panel shall be highly qualified and
11professionally activebegin insert with at least five years of experienceend insert in their
12chosenbegin delete field orend deletebegin insert field, and two of the members shall beend insert engaged in
13the conduct of scientificbegin delete research.end deletebegin insert research related to
14environmentally sustainable agriculture.end insert

15(5)  begin deleteThe members of the panel identified in subparagraphs (A)
16to (C), inclusive, of paragraph (1) shall serve as voting ex officio
17members of the panel. end delete
Of the members first appointed to thebegin delete panel
18pursuant to subparagraphs (D) to (F), inclusive, of paragraph (1),
19threeend delete
begin insert panel, fourend insert shall serve for a term of two years andbegin delete threeend deletebegin insert fourend insert
20 shall serve for a term of three years, as determined by lot.
21Thereafter, members shall be appointed for a term of three years.

22(c) The panel, at a minimum and as necessary, shall do all of
23the following:

24(1) Review data on the impact that agriculture has on the
25environment and recommend tobegin insert the secretary and otherend insert appropriate
26state agencies begin delete data that the panel determines is scientifically valid.
27A state agency that receives data recommended by the panel may
28adopt and incorporate the data into the appropriate program. If a
29state agency does not utilize the data recommended by the panel,
30the state agency shall provide the panel with a written statement
31of reasons for not utilizing the data. The reasons, at a minimum,
32shall specify the scientific basis for not utilizing the data. The
33reasons shall be provided within 180 days of receiving the data
34from the panel.end delete
begin insert the best available science on the environmental
35impacts of agriculture, as well as practices and policies based on
36that information to advance the goals of this article.end insert

37(2) Compile the net environmental impacts of agriculture on
38the environment, identified pursuant to paragraphbegin delete (1).end deletebegin insert (1), for use
39 by the department, other relevant state agencies, and the public.end insert

P7    1(3) Research, review, and comment on data upon which
2proposed environmental policies and regulatory programs are based
3to ensure that the environmental impacts of agricultural activities
4are accurately portrayed and to identify incentives that may be
5provided to encourage agricultural practices with environmental
6benefits.

7(4) Assist government agencies to incorporate benefits identified
8pursuant to paragraph (1) into environmental regulatory programs.

9(5) Review and advise the secretary and the State Board of Food
10and Agriculture onbegin insert existing andend insert proposed programs andbegin delete projects,
11including, but not limited to, competitive grants,end delete
begin insert projectsend insert that
12provide technical, educational, and financialbegin delete assistanceend deletebegin insert assistance,
13including, but not limited to, competitive grantsend insert
to agricultural
14producers that will result in multiple environmental and health
15benefits, including, but not limited to, reduced greenhouse gas
16emissions, increased carbon storage in soils and woody biomass,
17improved air and water quality, enhanced wildlife habitat, and
18improved local health outcomes.

begin delete

19(6) Review and recommend to the secretary and relevant state
20agencies the appropriate uses

end delete

21begin insert(d)end insertbegin insertend insertbegin insertThe State Air Resources Board, in consultation with the
22panel, shall consider, and recommend, as appropriate, in the
23guidance developed pursuant to subdivision (b) of Section 16428.9
24of the Government Code, the useend insert
of available tools to demonstrate
25and quantify greenhouse gas emissionsbegin delete reductions,end deletebegin insert reductions from
26the grant program established pursuant to subdivision (b) of
27Section 569,end insert
including, but not begin deletelimited, toend deletebegin insert limited to,end insert the Natural
28Resources Conservation Service’s Conservation Practice Standards
29and COMET-Farm and other quantification tools submitted by,
30among others, state agricultural commodity groups and academic
31institutions.

begin delete

32(d)

end delete

33begin insert(e)end insert The panel may establish ad hoc committees, which may
34include professionals or scientists, to assist it in performing its
35functions.

begin delete

36(e)

end delete

37begin insert(f)end insert (1) The panel shall submit a biennial report to the
38Legislature, the Governor, the agencies represented on the panel,
39and the State Board of Food and Agriculture that includes all of
40the following:

P8    1(A) A description of the work conducted by the panel during
2the prior two-year period.

3(B) The panel’s action plan for the next two years, including
4goals and performance measures.

5(2) The first report shall be submitted two years after the panel’s
6first meeting or January 1, 2019, whichever occurs first.

7(3) A report to be submitted pursuant to this subdivision shall
8be submitted in compliance with Section 9795 of the Government
9Code.

begin delete

10(f)

end delete

11begin insert(g)end insert The panel shall be created and maintained with funds made
12available from existing resources within the department to the
13extent they are available.

14

begin deleteSEC. 4.end delete
15begin insertSEC. 5.end insert  

Section 569 is added to the Food and Agricultural
16Code
, to read:

17

569.  

(a) The sum of fifty million dollars ($50,000,000) shall
18be available, upon appropriation by the Legislature, from the
19Greenhouse Gas Reduction Fund, created pursuant to Section
2016428.8 of the Government Code, to the department to support
21on-farm projects to demonstrate agricultural management practices
22and activities that reduce greenhouse gas emissions and increase
23carbon storage in agricultural soils and woody biomass, including,
24but not limited to, all of the following:

25(1) Soil-building and carbon-sequestration practices, including
26the increased use of compost and biochar, cover crops, and low-
27and no-till practices.

28(2) Irrigation efficiency and water conservation measures,
29including soil-moisture monitoring, irrigation scheduling,
30high-efficiency water delivery technologies, dry farming, and
31on-farm water catchment.

32(3) On-farm alternative-energy production and energy efficiency,
33including on-farm bioenergy production from agricultural waste
34and improved on-farm operational efficiencies.

35(4) Wildlife habitat conservation, including hedgerow planting,
36native grass planting and restoration, agroforestry, and managed
37grazing for enhanced habitat.

38(b) The department, in consultation with thebegin delete Scientificend delete
39begin insert Environmental Farmingend insert Advisory begin delete Panel on Environmental
40Farming,end delete
begin insert Panelend insert established pursuant to Section 568, shall develop
P9    1and implement a grant program to carry out the purposes of this
2article.

3(c) The secretary and the Secretary of the Natural Resources
4Agency shall enter into a memorandum of agreement among the
5department, the Department of Conservation, and other relevant
6state agencies to ensure the greatest possible coordination and
7collaboration in implementing the programs and projects funded
8pursuant to this section.

9

begin deleteSEC. 5.end delete
10begin insertSEC. 6.end insert  

Section 39719 of the Health and Safety Code is
11amended to read:

12

39719.  

(a) The Legislature shall appropriate the annual
13proceeds of the fund for the purpose of reducing greenhouse gas
14emissions in this state in accordance with the requirements of
15Section 39712.

16(b) To carry out a portion of the requirements of subdivision
17(a), annual proceeds are continuously appropriated for the
18following:

19(1) Beginning in the 2015-16 fiscal year, and notwithstanding
20Section 13340 of the Government Code, 35 percent of annual
21proceeds are continuously appropriated, without regard to fiscal
22years, for transit, affordable housing, and sustainable communities
23programs as follows:

24(A) Ten percent of the annual proceeds of the fund is hereby
25continuously appropriated to the Transportation Agency for the
26Transit and Intercity Rail Capital Program created by Part 2
27(commencing with Section 75220) of Division 44 of the Public
28Resources Code.

29(B) Five percent of the annual proceeds of the fund is hereby
30continuously appropriated to the Low Carbon Transit Operations
31Program created by Part 3 (commencing with Section 75230) of
32Division 44 of the Public Resources Code. Moneys shall be
33allocated by the Controller, according to requirements of the
34program, and pursuant to the distribution formula in subdivision
35(b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
36the Public Utilities Code.

37(C) Twenty percent of the annual proceeds of the fund is hereby
38continuously appropriated to the Strategic Growth Council for the
39Affordable Housing and Sustainable Communities Program created
40by Part 1 (commencing with Section 75200) of Division 44 of the
P10   1Public Resources Code. Of the amount appropriated in this
2subparagraph, no less than 10 percent of the annual proceeds of
3the fund shall be expended for affordable housing, consistent with
4the provisions of that program and no less than two percent of the
5annual proceeds of the fund shall be expended for agricultural land
6protection consistent with Section 75217.5 of the Public Resources
7Code.

8(2) Beginning in the 2015-16 fiscal year, notwithstanding
9Section 13340 of the Government Code, 25 percent of the annual
10proceeds of the fund is hereby continuously appropriated to the
11High-Speed Rail Authority for the following components of the
12initial operating segment and Phase I Blended System as described
13in the 2012 business plan adopted pursuant to Section 185033 of
14the Public Utilities Code:

15(A) Acquisition and construction costs of the project.

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

17(C) Other capital costs of the project.

18(D) Repayment of any loans made to the authority to fund the
19project.

20(c) In determining the amount of annual proceeds of the fund
21for purposes of the calculation in subdivision (b), the moneys
22subject to Section 39719.1 shall not be included.

23

begin deleteSEC. 6.end delete
24begin insertSEC. 7.end insert  

Section 75217.5 is added to the Public Resources Code,
25to read:

26

75217.5.  

(a) The Legislature finds and declares all of the
27following:

28(1) It is in the interest of the state to provide incentives for the
29use of agricultural land management practices that will reduce
30greenhouse gas emissions, sequester carbon in soils and woody
31biomass, and provide other cobenefits on working agricultural
32operations.

33(2) The council’s Sustainable Agricultural Lands Conservation
34Program, established pursuant to this chapter, has three elements,
35including financial incentives for the adoption and use of land
36management practices that achieve these goals.

37(3) The 2014 program guidelines establish grant programs for
38the 2014-15 fiscal year to promote agricultural lands strategic
39planning and agricultural land conservation easements, but the
P11   1guidelines do not establish a grant program to provide incentives
2for agricultural land management practices.

3(b) (1) The council, no later than the 2015-16 fiscal year, shall
4establish and administer a grant program, as part of the Sustainable
5Agricultural Lands Conservation Program, to provide financial
6incentives for the adoption and use of land management practices
7that reduce greenhouse gas emissions, sequester carbon in soil and
8woody biomass, and provide other cobenefits on working
9agricultural operations. The council shall consult with the
10Department of Food and Agriculture and thebegin delete Scientificend delete
11begin insert Environmental Farmingend insert Advisorybegin delete Panel on Environmental
12Farming,end delete
begin insert Panel,end insert established pursuant to Section 568 of the Food
13and Agricultural Code, when developing the grant program and
14guidelines.

15(2) The council, as part of the grant program established
16pursuant to this subdivision, shall give priority to working
17 agricultural operations that adopt land management practices that
18achieve the goals described in paragraph (1).



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