BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 367         Hearing Date:    4/7/15
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          |Author:    |Wolk                                                 |
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          |Version:   |4/6/15                                               |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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                   Subject:  Agricultural lands: greenhouse gases
           
          SUMMARY  :
          
          This bill would recast and expand the membership and the duties  
          of the California Department of Food and Agriculture's Science  
          Advisory Panel on Environmental Farming to include on-farm  
          practices to reduce greenhouse gas emissions and increase carbon  
          storage in soil.  This bill would appropriate $50 million from  
          the Greenhouse Gas Reduction Fund to CDFA for the establishment  
          of a new grant program to support these activities.  This bill  
          would also appropriate 2% of the proceeds from this fund to the  
          Strategic Growth Council's Sustainable Agricultural Lands  
          Conservation Program to also address on-farm reductions of  
          greenhouse gas and increased carbon storage.


           BACKGROUND AND EXISTING  
          LAW  :

           The Cannella Environmental Farming Act of 1995  requires the  
          California Department of Food and Agriculture (CDFA) to  
          establish and oversee an environmental farming program that  
          provides incentives to farmers whose practices promote the  
          well-being of ecosystems, air quality, and wildlife and their  
          habitat.  The act also created the Scientific Advisory Panel on  
          Environmental Farming (Science Panel) to, among other  
          responsibilities, advise and assist government agencies on these  
          issues by conducting scientific data reviews and approving and  
          recommending scientifically valid data.  The Science Panel is  
          also authorized to research, review, and comment on data used as  







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          the base for proposed environmental policies and regulatory  
          programs so that agricultural activities are accurately  
          portrayed and to identify incentives to encourage agricultural  
          practices with environmental benefits.  

           The Strategic Growth Council  was created in 2008 as a  
          cabinet-level committee that is tasked with coordinating the  
          activities of member state agencies to improve air and water  
          quality, protect natural resources and agricultural lands,  
          increase the availability of affordable housing, promote public  
          health, improve transportation, encourage greater infill and  
          compact development, revitalize community and urban centers, and  
          assist state and local entities in the planning of sustainable  
          communities and meeting AB 32 goals.  Strategic Growth Council  
          members include representatives from the Business, Consumer  
          Services and Housing, Natural Resources, Health and Human  
          Services, and Environmental Protection Agencies; the departments  
          of Transportation and Food and Agriculture; the Governor's  
          Office of Planning and Research; and three public members.
           The Affordable Housing and Sustainable Communities Program   
          (AHSC), administered by the Strategic Growth Council, was  
          created in 2014 to reduce greenhouse gas (GHG) emissions though  
          projects that implement land use, housing, transportation, and  
          agricultural land preservation practices.  The AHSC program  
          receives 20% of the annual proceeds from the Greenhouse Gas  
          Reduction Fund to achieve these goals (SB 862 of 2014; Health  
          and Safety Code § 39719).  

           The Sustainable Agricultural Lands Conservation Program  (SALC)  
          is one component of the AHSC and is implemented by the  
          California Department of Conservation (DOC).  The Strategic  
          Growth Council is responsible for overseeing SALC and  
          coordinating DOC with other agencies to develop program  
          guidelines.

          Guidelines for the SALC program were approved by the Strategic  
          Growth Council on January 20, 2015, and include three major  
          elements: 1) sustainable agricultural land strategy plans, which  
          would provide grants to develop local strategies to ensure  
          long-term protection of highly productive and critically  
          threatened agricultural land; 2) agricultural conservation  
          easements; and 3) financial incentives for adoption and use of  
          land management practices.  The guidelines specifically state  
          that the third element is not included in the 2014 request for  








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          grant applications, but will be addressed in future years.

           COMET-Farm  TM is an online USDA-Natural Resources Conservation  
          Service tool developed in partnership with Colorado State  
          University.  COMET-farmTM, shorthand for "CarbOn Management &  
          Emissions Tool," was created to estimate carbon sequestration  
          and GHG emissions on individual farms based on various factors  
          such as soil characteristics, crop production, nutrient  
          management, water use, and tillage practices.  This tool would  
          help farmers and ranchers calculate their farm's potential for  
          storing carbon in agricultural soils and reducing GHG emissions  
          given specific land management and conservation practices.


           PROPOSED  
          LAW  :

           This bill:  
                 Makes findings and declarations in regards to California  
               agricultural productivity and agriculture's contribution to  
               the environment and reduction of GHGs.

                 Expands the duties of CDFA's Environmental Farming  
               Program to specifically include activities related to the  
               reduction of on-farm GHG emissions and increased carbon  
               storage in agricultural soils and woody biomass. 

                 Authorizes CDFA to support these on-farm practices and  
               activities by providing permit assistance and coordination  
               and the funding of on-farm demonstration projects.

                 Adds "climate change" to the list of issues that may be  
               addressed by CDFA's Scientific Advisory Panel on  
               Environmental Farming when providing advice and assistance  
               to government agencies.

                 Recasts and expands the duties and membership of CDFA's  
               Scientific Advisory Panel on Environmental Farming in the  
               following manner:

                  o         Increases the number of members from five to  
                    nine by adding the secretaries of CDFA, CalEPA and  
                    Natural Resources Agency as voting ex-officio members  
                    and adding a member who is affiliated with UC  








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                    Cooperative Extension as appointed by the secretary of  
                    CDFA.
                  o         Limits the appointment by the secretary of the  
                    Natural Resources Agency to persons affiliated with  
                    the California Association of Resource Conservation  
                    Districts.
                  o         Limits the appointment by the secretary of  
                    CalEPA to persons affiliated with a nonprofit  
                    organization with expertise in climate change and its  
                    impact on California agriculture.
                  o         Requires that one member appointed by the  
                    secretary of CDFA be a registered organic producer.
                  o         Requires the panel to review and advise the  
                    secretary of CDFA and the State Board of Food and  
                    Agriculture on proposed programs and projects for  
                    agricultural producers that would result in multiple  
                    environmental and health benefits.
                  o         Requires the panel to review and recommend to  
                    CDFA and other relevant state agencies the tools  
                    available to demonstrate and quantify GHG emissions  
                    reductions.
                  o         Requires the panel to submit a biennial report  
                    to the legislature, governor, and related agencies  
                    regarding their work, goals, and two-year action plan.

                 Provides $50 million, upon appropriation by the  
               legislature, to CDFA to support on-farm projects to  
               demonstrate agricultural management practices and  
               activities that reduce GHG emissions and increase carbon  
               storage in soils and woody biomass.
                  o         Projects may include, but are not limited to,  
                    soil-building and carbon-sequestration practices,  
                    irrigation efficiency and water conservation measures,  
                    on-farm alternative-energy production and efficiency,  
                    and wildlife habitat conservation.

                 Requires CDFA, in consultation with the panel, to  
               develop and implement a grant program to support the  
               activities listed above.

                 Requires that no less than 2% of the 20% of Greenhouse  
               Gas Reduction Fund proceeds appropriated to the Strategic  
               Growth Council for the Affordable Housing and Sustainable  
               Communities Program be expended for agricultural land  








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               protection.

                 Requires the Strategic Growth Council to establish and  
               administer a grant program, as part of the Sustainable  
               Agricultural Lands Conservation Program, to provide  
               incentives for the adoption and use of land management  
               practices that would reduce GHG emissions and sequester  
               carbon in soils and woody biomass.


           ARGUMENTS IN SUPPORT:  
          According to the author, "The modernization of the twenty-year  
          old Environmental Farming Act gives the California Department of  
          Food and Agriculture the authority and resources to more  
          effectively deliver programs and improve growers' access to  
          resources for addressing climate change and other pressing  
          environmental concerns."

          According to those in support, "Growers around the state have  
          already begun to see the effects of drought, decreased chilling  
          hours and extreme heat on their productivity and profitability.   
          At the same time, growers and scientists recognize the  
          tremendous potential for agriculture and agricultural lands to  
          not only reduce existing greenhouse gas emissions, but also to  
          draw down atmospheric carbon into soils and woody biomass."


           ARGUMENTS IN OPPOSITION:  
          None Received.


           COMMENTS  :

           Agriculture and Climate Change:  
          Farmers and ranchers are uniquely sensitive to the effects of  
          climate change as agriculture is largely dependent upon  
          uncertain weather patterns and the availability of natural  
          resources.  For example, the current multi-year drought has  
          caused many farmers to fallow fields, sell livestock due to lack  
          of available grazing, and lay-off employees due to reduced  
          workload and productivity. 

          However, as the climate continues to impact California with  
          extreme weather events, warm winters, and reduced freezing  








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          hours, additional agricultural vulnerabilities are further  
          revealed.  Non-native invasive species are a serious threat to  
          California and without normal winter chill hours to create  
          dormancy or to kill pests, invasive species are allowed to  
          continue to reproduce and spread throughout California.  Such  
          examples include the aquatic weed water hyacinth, which is  
          currently plaguing the Delta, and the Asian citrus psyllid,  
          which could devastate the citrus industry as it has already done  
          in Florida.

          The potential for agriculture to contribute to the reduction of  
          climate change by sequestering carbon and reducing GHG emissions  
          is not fully realized or utilized.  Plants absorb CO2 from the  
          atmosphere and use it to grow, produce fruits and vegetables,  
          and to also store carbon in the soil.  Animals produce manure  
          that could be used to create energy (through methane digesters),  
          compost, and several other valuable products, while reducing the  
          emission of methane and other GHG.  Land management practices  
          have been and are continuing to be adopted to reduce negative  
          effects on the environment such as drip irrigation, reduced land  
          tillage, nitrogen management, and the use of cover crops.  This  
          bill would provide funding to continue the development and  
          implementation of on-farm management practices to further the  
          environmental benefits of California's agricultural lands.

           Scientific Advisory Panel Membership:
           Currently, members appointed to the Scientific Advisory Panel on  
          Environmental Farming are required to have a minimum of 5 years  
          of experience in specified fields (production agriculture, human  
          health and environmental science, resource management).  This  
          bill would remove the minimum-experience requirement for members  
          appointed by the secretaries of the California Environmental  
          Protection Agency (CalEPA) and Natural Resources Agency but not  
          for those appointed by the secretary of CDFA.  This bill would  
          instead require that all members be highly qualified and  
          professionally active or engaged in scientific research.  The  
          committee may wish to consider whether this new language is  
          vague and inconsistent and/or whether including a  
          minimum-experience requirement would be appropriate.

          This bill also limits the pool of panelists to specific groups  
          such as nonprofit organizations, the California Association of  
          Resource Conservation Districts, and UC Cooperative Extension.   
          The committee may wish to consider whether restricting the pool  








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          of qualified individuals and removing the experience threshold  
          for members on a scientific panel is appropriate.

          The secretary of CDFA is the designated chair of the Scientific  
          Advisory Panel, which is tasked with reviewing and advising the  
          secretary of CDFA and the State Board of Food and Agriculture on  
          the proposed programs.  Therefore, the secretary of CDFA would  
          be advising herself on her own activities.  Although a designee  
          could take the place of the secretary, this person would most  
          likely be on staff at CDFA and already be reporting to the  
          secretary.  If the designee is not an employee of CDFA, why is  
          this panelist not stated as a member appointed by the secretary,  
          as are the rest of the panelists?  The committee may wish to  
          consider  whether the secretaries of CDFA, CalEPA and Natural  
          Resources Agency are necessary additions to this panel.  

           Proposed Memorandum of Agreement:
           The author has proposed an amendment that would establish an MOA  
          among CDFA, DOC, and other agencies to avoid redundancies and  
          inefficiencies between the two programs funded in this bill.   
          However, given that the purpose of the Strategic Growth Council  
          is to improve interagency coordination, an MOA may not be  
          necessary.  The DOC program is funded as part of the Strategic  
          Growth Council and both CDFA and DOC are active members.  
          Regardless, the desire to ensure that funds are appropriately  
          spent and not used for duplicative or redundant purposes is an  
          important consideration.


           The committee may wish to consider the following amendments:
           
                 Amend the Scientific Advisory Panel on Environmental  
               Farming to include current law requirements and  
               qualifications of panelists (5-years of experience in the  
               designated field) and remove the references to membership  
               or affiliation with a nonprofit organization, the  
               California Association of Resource Conservation Districts,  
               and UC Cooperative Extension. Suggested amendments are as  
               follows:
                    Amend Section 568 (b) subparagraphs (D) (E) and (F) of  
               the Food and Agricultural Code (Page 6, Lines 19-35) to  
               read:
                    (D) One member, who has a minimum of five years of  
               training and experience in the field of climate change and  








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               its impact on California agriculture, shall be appointed by  
               the Secretary of the California Environmental Protection  
               Agency.
                    (E) One member, who has a minimum of five years of  
               training and experience in the field of resource  
               management, shall be appointed by the Secretary of the  
               Natural Resources Agency.
                    (F) Four members appointed by the secretary, according  
                    to the following: (i) Three members who are  
                    agricultural producers in the state and who have a  
                    minimum 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 has a minimum of five years of  
                    training and experience as a scientific researcher in  
                    the field of agricultural and environmental science.

                 Correct the title of CalEPA by replacing "for  
               Environmental Protection" with "of the California  
               Environmental Protection Agency" on Page 6, Line 17 and  
               Lines 19-20.

                 Replace "solid" with "soil" on Page 11, Line 32.

                 Clarify that the 2% allocated from the Greenhouse Gas  
               Reduction Fund for agricultural land protection (Page 10,  
               Lines 31-33) be 2% of the annual proceeds from the entire  
               Greenhouse Gas Reduction Fund (as is the author's intent)  
               and not 2% of the 20% appropriated to the Strategic Growth  
               Council.  As currently written, the 2% is appropriated from  
               the Strategic Growth Council subparagraph, not the fund in  
               its entirety. 


           The author proposes the following amendments:
           
                 Add Section 569 (c) to the Food and Agricultural Code:
               569. (c) The secretaries of the California Department of  
               Food and Agriculture and the Natural Resources Agency shall  
               establish a Memorandum of Agreement among the California  
               Department of Food and Agriculture, the Department of  
               Conservation, and other relevant state agencies to ensure  








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               greatest possible coordination and collaboration in the  
               implementation of programs and projects funded under this  
               section.

                 Add language to Section  569 (a) of the Food and  
               Agricultural Code, Page 9 Line 15, as follows:
               569. (a) The sum of fifty million dollars ($50,000,000)  
               shall be available  from the Greenhouse Gas Reduction Fund  ,  
               upon appropriation by the Legislature


           RELATED  
          LEGISLATION  :
          AB 761 (Levine), currently in the Assembly Committee on Natural  
          Resources, would provide $50 million to the Department of  
          Conservation to establish a grant program to fund projects that  
          increase carbon sequestration in agricultural soils to increase  
          the resilience of working lands to climate change and drought.

          SB 862 (Committee on Budget and Fiscal Review), Chapter 36,  
          Statutes of 2014.  Among other provisions, establishes the  
          Affordable Housing and Sustainable Communities Program,  
          administered by the Strategic Growth Council, to reduce GHG  
          emissions though projects that implement land use, housing,  
          transportation, and agricultural land preservation practices.

          SB 732 (Steinberg), Chapter 729, Statutes of 2008.  Establishes  
          the Strategic Growth Council to coordinate member state agencies  
          implementing projects to improve air and water quality,  
          affordable housing, natural resource protection, transportation,  
          and sustainable land use planning; and to meet the goals of the  
          California Global Warming Solutions Act of 2006.            
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           SUPPORT  :
          
          California Climate and Agriculture Network (CalCAN) (Co-Sponsor)
          Community Alliance with Family Farmers (Co-Sponsor)








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          Abbott Ranch
          Agricola: flora et fauna
          Berry Blest Farm
          Big Bluff Ranch
          Burroughs Family Farms
          Burroughs Family Orchards
          Burrows Ranch, Inc.
          California Certified Organic Farmers
          California Cloverleaf Farms
          California Compost Coalition
          California Farm Bureau Federation 
          California Institute for Rural Studies
          Californians Against Waste
          Camp Grant Ranch
          Canvas Ranch
          Center for Food Safety
          Central Valley Farmland Trust
          Dixon Ridge Farms
          Eaton Cattle Co.
          Ecological Farming Association 
          Eden Urban Farms
          Environment California 
          Environmental Defense Fund
          Four Elements Organics
          Foxwhelp Farm
          Frog Hollow Farm
          Full Belly Farm
          Grass Valley Grains
          Green Oaks Creek Farm
          Harpos Organics
          Hilltop & Canyon Farms
          Humboldt Regeneration Brewery & Farm
          Jackrabbit Farms
          Jacobs Farm/Del Cabo
          Kern Family Farm
          Land Trust of Santa Cruz County
          Live Earth Farm
          Mamen Consulting
          Markegard Family Grass-Fed, LLC
          Molino Creek Farm
          Morris Grassfed
          Page's Organics
          Paicines Ranch
          Pie Ranch








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          Porter Creek Vineyards
          Quetzal Farm
          Resource Conservation District of Santa Cruz County
          Riverdance Farms
          Rominger Brothers Farm
          Roots of Change
          Samuels Ranch
                                                                                       San Diego Roots Sustainable Food Project
          Santa Clara Valley Open Space Authority
          Sierra Farms Lamb
          Sustainable Agriculture Education
          Swanton Berry Farm
          The Mendocino Grain Project
          The Trust for Public Land
          Travaille & Phippen, Inc.
          Viriditas Farm
          Wild Willow Farm and Education Center
          68 Individuals


           OPPOSITION  :
          
          None received

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