BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: SB 367 Hearing Date: 4/7/15 ----------------------------------------------------------------- |Author: |Wolk | |-----------+-----------------------------------------------------| |Version: |4/6/15 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- 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 SB 367 (Wolk) Page 2 of ? 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 SB 367 (Wolk) Page 3 of ? 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 SB 367 (Wolk) Page 4 of ? 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 SB 367 (Wolk) Page 5 of ? 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 SB 367 (Wolk) Page 6 of ? 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 SB 367 (Wolk) Page 7 of ? 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 SB 367 (Wolk) Page 8 of ? 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 SB 367 (Wolk) Page 9 of ? 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. ------------------------------------------------------------------ | | | |--------------------------------------+---------------------------| | | | |--------------------------------------+---------------------------| | | | | | | ------------------------------------------------------------------ SUPPORT : California Climate and Agriculture Network (CalCAN) (Co-Sponsor) Community Alliance with Family Farmers (Co-Sponsor) SB 367 (Wolk) Page 10 of ? 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 SB 367 (Wolk) Page 11 of ? 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 -- END --