BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: SB 1294 Hearing Date: March 29, 2016 ----------------------------------------------------------------- |Author: |Pavley | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |March 28, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Katharine Moore | | | | ----------------------------------------------------------------- Subject: The Community Climate and Drought Resilience Program BACKGROUND AND EXISTING LAW Existing law establishes the California Conservation Corps (corps) in the Natural Resources Agency as a service organization providing employment and training for young men and women (see Public Resources Code (PRC) §§14000 et seq.). The corps was created in 1976 and employs for one year young adults generally between the ages of 18 - 25. The corps offers programs throughout the state and aims to, among other things, provide youth with educational and training opportunities and increase their understanding and appreciation of the environment (PRC §14000). In addition to the corps, existing law provides for local conservation corps (local corps) that must meet certain criteria including those the corps must meet (see PRC §14406). Existing law provides for eligible local corps to be certified annually to be in compliance with these criteria by the corps (PRC §14507.5). The local corps program was established in 1993 with the purpose of supporting the success of disadvantaged youth through a structured program of natural resources conservation and related activities. Local corps may obtain funding from a variety of sources (state funding support for local corps is included in the comments). SB 1294 (Pavley) Page 2 of ? Existing law establishes the Department of Resources Recycling and Recovery (CalRecycle) in the California Environmental Protection Agency, and the Department of Forestry and Fire Protection (CalFire) in the Natural Resources Agency. Existing law establishes the California Urban Forestry Act of 1978 (PRC §§4799.06 et seq.) to expand and improve the management of trees and related vegetation in communities throughout the state. CalFire's urban forestry program leads the effort to advance the development of sustainable urban and community forests in California and CalFire works closely with numerous groups to achieve these aims. Existing law recognizes that urban forestry projects may provide multiple benefits to the community including, for example, increasing water supply, promoting energy conservation, reducing greenhouse gas emissions and improving public health, among others. According to CalRecycle, methane emissions from organic waste in the state's landfills are a significant source of statewide greenhouse gas emissions. Diverting this waste stream provides multiple benefits as methane emissions are avoided and the compost and mulch generated from this waste is used to improve soil health and save water. Recent research, for example, showed that adding a mulch layer of appropriate thickness can reduce surface evaporation of water up to 40% or more compared to from bare soil for the conditions studied. The use of mulch and compost has the potential to reduce urban water demand for landscaping which is estimated to represent up to half of urban water use. Existing law requires a reduction in statewide greenhouse gas emissions to 1990 levels by 2020. In addition, Executive Orders S-03-05 and B-30-15 establish post-2020 greenhouse gas emissions reduction targets. The state has several strategies to reduce climate-related pollution, improve air quality and maximize health and economic co-benefits of addressing climate-related pollution. The climate adaptation strategy "Safeguarding California" released earlier in 2016 provides an integrated climate adaptation and resiliency program. The report highlights that many effective climate adaptation strategies cross "sectoral and jurisdictional boundaries" and responding to climate risks SB 1294 (Pavley) Page 3 of ? requires coordination across agencies and political boundaries. Later versions of "Safeguarding California" are expected to continue the emphasis on cross-sector integration and complementarity of approaches to promote climate resiliency and adaptation. Existing law requires the Department of Finance, in consultation with the Air Resources Board and other state agencies, to submit a triennial investment plan to the Legislature identifying investments that will help the state achieve its greenhouse gas emissions reduction goals while realizing additional co-benefits using proceeds of the greenhouse gas emissions cap-and-trade auction revenues. The Second Investment Plan was released in January 2016 and includes urban forestry and composting, among other projects. PROPOSED LAW This bill would establish the Community Climate and Drought Resilience Program of 2016, and direct CalFire and CalRecycle to promote policies and incentives that advance helping urban and rural communities adapt to climate change, improve water management and drought preparedness, provide workforce training to youth in disadvantaged communities, maximize carbon sequestration and ensure the maintenance of associated climate pollutant reduction benefits through the improvement and continued management of the urban forest canopy, and the development and application of compost made from organic waste diverted from landfills. This bill would provide specific direction to each department to achieve these goals. This bill would: 1)Direct CalFire to review and revise, as needed, its urban forestry program to a) Provide funding priority for multi-benefit carbon sequestration projects such as mulching, watering or pruning, and the use of on-site water capture, recycled water or other local water, among others, as specified, and b) Establish local or regional targets for the urban tree canopy, particularly in disadvantaged communities, including, for example, forest diversity, as specified. 2)Further direct CalFire to update its regulations, as needed, and provide planning and technical assistance for eligible applicants and guidance to grantees and local governments SB 1294 (Pavley) Page 4 of ? regarding best practices and metrics for urban forest health. 3)Direct CalRecycle to develop and implement a program by July 1, 2017 to provide incentives for projects that use compost from organic waste in farming and landscaping practices in urban and rural areas that increase drought resilience and provide quantifiable greenhouse gas emissions reductions, as specified. 4)Require CalRecycle to enter into an agreement with state certified conservation corps, to assist in community outreach, compost delivery and application and other eligible urban greening projects, and update its regulations, as needed, to implement this program. In addition this bill would: 1)Make appropriate and supporting legislative findings. 2)State legislative intent to create an innovative natural resource management program that improves greenhouse gas sequestration, improves drought preparedness and helps communities address the effects of climate change, as specified, and to provide employment opportunities for at-risk youth in landscape management strategies, especially in disadvantaged communities, that minimize climate impacts. 3)Define relevant terms. ARGUMENTS IN SUPPORT According to the author, "[a]s part of his 2015 inaugural address, the Governor outlined six key pillars needed to achieve long term climate change inducing pollutant reductions, including the reduction of short-lived climate pollutants, increased carbon sequestration in the land and safeguarding California by maximizing climate resilience and adaptation strategies." "This year, the Department of Finance and the Air Resources Board finalized California's latest climate investment blueprint; the plan outlined a multitude of sound investment opportunities for California's climate investments built on the Governor's key strategies to address climate change. The plan further noted that to achieve our long term climate pollutant emissions goals, the state will need to accelerate current programs and projects, pursue innovative strategies across sectors and maximize environmental, economic and health co-benefits." SB 1294 (Pavley) Page 5 of ? "SB 1294 integrates the concepts outlined in Governor Brown's inaugural address and the Second Investment Plan and provides an opportunity for the state to approach several key climate pollution reduction strategies (trees and urban greening, landscape resiliency, water conservation and efficiency, and organic waste and compost) via a set of complementary and innovative programs." ARGUMENTS IN OPPOSITION None received COMMENTS Double-referral . This bill is double-referred to both this Committee and the Senate Environmental Quality Committee (Senate EQ). Elements of the bill under Senate EQ's jurisdiction, such as CalRecycle and greenhouse gas and other climate pollutant emissions reductions, among others, are included here for completeness and context only. Technical amendment . According to the author's office, a drafting error led to the inadvertent codification of all of the legislative findings. The Committee may wish to require that the findings be uncodified and the remaining proposed language in PRC §75300 - legislative intent language and specific direction to CalRecycle and CalFire - be split into two sections for clarity. [Amendment 1] Work-in-progress . This bill is a work-in-progress, and Committee staff understand that further amendments are planned by the author. In view of this, the author may wish to consider that the meaning of several terms, such as community greening, urban greening, local conservation corps, climate-friendly, and best practices may be usefully clarified; the structure of the proposed CalRecycle program for the corps may also be clarified; watering, pruning and other activities may not always result in multi-benefit carbon sequestration; which program CalFire shall provide technical assistance to eligible applicants for; and the considerable overlap between existing urban forestry program language and the findings reported here, among others. Additionally, no funding source is provided for the activities required by the bill and it may be that funding from certain sources will require further clarification in the proposed program language. Should the bill pass this Committee today, the Committee may wish to direct staff to continue providing SB 1294 (Pavley) Page 6 of ? assistance to the author's office. Consistent with the Administration's climate plans . Both composting of organic waste and resources for urban forestry are identified as multi-benefit climate adaptation strategies in the "Safeguarding California" report and have received funding in the past. The bill's specific direction on urban forestry, for example, includes policies, such as encouraging urban tree canopy goals, among those specified in "Safeguarding California." However, due to the cross-sectoral nature of these programs, not all of the state entities with jurisdiction or potential jurisdiction over portions of the urban forestry or composting programs are included in the bill. The local corps' mission is consistent with the goals of the CalFire and CalRecycle programs affected by this bill . In fact, the FY 2014/2015 urban forestry grants for projects included three to local corps. Five projects funded through a recent CalRecycle organic composting grant project did not include any awards to local corps. CalRecycle has a Budget Change Proposal pending in the current budget cycle for $100 million of cap-and-trade auction revenues which are proposed to be largely spent on organic waste recycling grants, among other categories. The current CalFire draft grant guidelines . In the CalFire Urban and Community Forestry FY 2016/2017 draft California Climate Investment Grant Guidelines, eligible projects must demonstrate that they will achieve and maintain a net reduction in greenhouse gas emissions and, if no immediate greenhouse gas emissions reduction benefit is achieved, must be sustained until a net greenhouse gas emissions reduction benefit is realized and maintained for 10 years thereafter. Draft guidelines encourage potential grantees to work with CalFire in developing their proposals. CalRecycle's support for local corps . CalRecycle supported the purposes of the local corps at the state level in part through community recycling services and litter abatement projects. The CalRecycle grant program supporting the local corps recently diversified from dependence solely upon the Beverage Container Recycling Fund. According to CalRecycle, local corps receive entitlement funding from four special funds administered by CalRecycle and over $20 million was appropriated in the FY 2015 - 2016 budget for this purpose. Funding is distributed evenly SB 1294 (Pavley) Page 7 of ? among all 13 certified local corps and these corps must engage in activities related to the source of the funding. Benefits to public health from urban forestry programs . There are public health and environmental benefits associated with reducing heat stress in communities. In addition to poorer public health, urban heat islands can result in increased use of energy with an associated potential degradation in air quality and increase in greenhouse gas emissions. Urban forest canopies have been shown to help reduce temperatures and the resulting impacts. Planting and maintaining urban forest canopy has the potential to be a cost-effective method of reducing the urban heat island effect and directly and indirectly reducing climate pollutant emissions. Recent related legislation AB 2722 (Burke, 2016) would establish the Transformative Climate Communities Program to promote a coordinated and integrated approach to climate pollutant reduction strategies (before the Assembly Natural Resources Committee). SB 367 (Wolk, 2015) would authorize the Department of Food and Agriculture's environmental farming program to provide incentives and other assistance for farmers whose practices promote the well-being of ecosystems, have caused the establishment of a grant program to promote land practices that sequester carbon, and appropriated Greenhouse Gas Reduction Funds to this end (held in the Assembly Appropriations Committee Suspense file). SB 760 (Mendoza, 2015) would have established a program to provide grants to disadvantaged communities for community enhancements providing multi-benefit environmental benefits (the bill was subsequently amended to a different topic). AB 1045 (Irwin, c. 596, Statutes of 2015) requires the development and implementation of policies to divert organic waste from landfills and promote composting and the use of the compost. AB 876 (McCarty, c. 593, Statutes of 2015) requires enhanced reporting of compostable organic materials. AB 761 (Levine, 2015) would require the Department of Food and SB 1294 (Pavley) Page 8 of ? Agriculture to establish a program to provide grants for voluntary projects to promote carbon sequestration on working lands (held in the Senate Appropriations Committee Suspense file). AB 1023 (Eggman, 2013) would have created a program for industry including incentives to promote composting and other waste diversion to reduce greenhouse gas emissions (held in the Assembly Appropriations Committee Suspense file). AB 921 (Allen, 2011) would have addressed the use of compost in agriculture to reduce water use and its potential climate benefits (held in the Assembly Appropriations Committee Suspense file). SUGGESTED AMENDMENTS AMENDMENT 1 Revise PRC §75300 (Section 1) to separate the legislative findings into an uncodified section and retain subdivisions (b) and (c) in separate codified sections. SUPPORT TreePeople (sponsor) California Association of Local Conservation Corps California League of Conservation Voters Clean Water Action Climate Resolve From Lot To Spot, Inc. Los Angeles Beautification Team Sierra Club California The Trust for Public Land 1 Individual OPPOSITION None Received -- END -- SB 1294 (Pavley) Page 9 of ?