Amended in Senate June 2, 2015

Amended in Senate May 6, 2015

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 564, 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. 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.

This bill would require the environmental farming program to provide low-interest loans, technical assistance, educational materials and outreach, or a combination of these things, instead of incentives, 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 rename the panel the Environmental Farming Advisory Panel and revise 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 require the State Air Resources Board, in consultation with the panel, to consider 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.

The bill would provide that begin delete $50,000,000 end delete begin insert $25,000,000 end insert 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:

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 564 of the Food and Agricultural Code is
amended to read:

564.  

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

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

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

(c) “Panel” means the Environmental Farming Advisory Panel.

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

SEC. 3.  

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
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 shall conduct the activities specified in this
article with existing resources, to the extent they are available.

SEC. 4.  

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

568.  

(a) The secretary shall convene an Environmental Farming
Advisory Panel to advise the secretary on the implementation of
an environmental farming program, established pursuant to Section
566, and assist federal, state, and local government agencies, as
appropriate or necessary, on issues relating to the impact of
agricultural practices on air, water, climate change, and wildlife
habitat.

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

(A) Two members appointed by the Secretary for Environmental
Protection. One of these members shall have expertise in climate
change and its impacts on California agriculture, and the other
member shall have expertise in greenhouse gas emissions reduction
practices related to agriculture.

(B) Two members appointed by the Secretary of the Natural
Resources Agency. One of these members shall be affiliated with
the California Association of Resource Conservation Districts.

(C) 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 other members to the panel after
consulting with the panel.

(3) The secretary shall designate the member who is to serve
as the chair of the panel.

(4) Members of the panel shall be highly qualified and
professionally active with at least five years of experience in their
chosen field, and two of the members shall be engaged in the
conduct of scientific research related to environmentally sustainable
agriculture.

(5) Of the members first appointed to the panel, four shall serve
for a term of two years and four 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 the secretary and other appropriate
state agencies the best available science on the environmental
impacts of agriculture, as well as practices and policies based on
that information to advance the goals of this article.

(2) Compile the net environmental impacts of agriculture on
the environment, identified pursuant to paragraph (1), for use by
the department, other relevant state agencies, and the public.

(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 existing and proposed programs and projects
that provide technical, educational, and financial assistance,
including, but not limited to, competitive grants 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.

(d) The State Air Resources Board, in consultation with the
panel, shall consider, and recommend, as appropriate, in the
guidance developed pursuant to subdivision (b) of Section 16428.9
of the Government Code, the use of available tools to demonstrate
and quantify greenhouse gas emissions reductions from the grant
program established pursuant to subdivision (b) of Section 569,
including, but not limited to, the Natural Resources Conservation
Service’s begin insert National end insert Conservation Practice Standards and
COMET-Farm and other quantification tools submitted by, among
others, state agricultural commodity groups and academic
institutions.

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

(f) (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.

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

SEC. 5.  

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

569.  

(a) The sum of begin delete fifty million dollars ($50,000,000) end delete
begin insert twenty-five million dollars ($25,000,000) end insert shall be available, upon
appropriation by the Legislature, from the Greenhouse Gas
Reduction Fund, created pursuant to Section 16428.8 of the
Government Code, 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 Environmental
Farming Advisory Panel established pursuant to Section 568, shall
develop and implement a grant program to carry out the purposes
of this article.

(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.

SEC. 6.  

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 follows:

(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 of
the fund shall be expended for affordable housing, consistent with
the provisions of that program and no less than two percent of the
annual proceeds of the fund 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. 7.  

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 soil and
woody biomass, and provide other cobenefits on working
agricultural operations. The council shall consult with the
Department of Food and Agriculture and the Environmental
Farming Advisory Panel, 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 subdivision, shall give priority to working
agricultural operations that adopt land management practices that
achieve the goals described in paragraph (1).