Amended in Senate May 10, 2016

Senate Bill No. 1350

Introduced by Senator Wolk

February 19, 2016

An act to amend Section 568 of, and to add Sections 562 and 569 to, the Food and Agricultural Code, relating to agriculture.

LEGISLATIVE COUNSEL’S DIGEST

SB 1350, as amended, Wolk. Agricultural lands: greenhouse gases: Healthy Soils Program.

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 in its regulations the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources 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 and to be available upon appropriation by the Legislature. Existing law requires the State Air Resources Board to develop guidance on reporting and quantification methods for state agencies receiving an appropriation from the Greenhouse Gas Reduction Fund.

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, as prescribed, 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 panel to establish ad hoc committees to assist the panel in performing its functions. end insert

This bill would change the number of members on the panel from 5 to 7 members and would require that the secretary appoint begin delete 5 members, end delete begin insert 5 end insert instead of begin delete 3, end delete begin insert 3 end insert of these begin delete members. The bill would require that, of the members appointed by the secretary, at least 2 members, instead of one, have a minimum of 5 years of training and experience in the field of agriculture, and at least one member have training and experience in on-farm management practices that reduce greenhouse gas emissions, sequester carbon, or both. end delete begin insert members, as prescribed. The bill would additionally allow the secretary to appoint, in consultation with the panel, ex officio non end insert begin insert voting members to the panel. The bill would add representatives of nongovernmental entities to persons who may be on the ad hoc committees. end insert

The bill would require the State Air Resources Board to consult with the Secretary of Food and Agriculture and the panel in developing the quantification methods to demonstrate and quantify on-farm greenhouse gas emissions reductions.

The bill would require the Department of Food and Agriculture, in consultation with the panel, to establish and oversee a Healthy Soils Program begin delete to provide end delete begin insert to seek to optimize climate benefits while supporting the economic viability of California agriculture by providing end insert incentives, including loans, grants, research, and technical assistance, or educational materials and outreach, to farmers whose management practices contribute to begin delete healthful end delete begin insert healthy end insert soils and result in net long-term on-farm greenhouse gas benefits. begin insert The bill would authorize the program to include funding of on-farm demonstration projects and, if the funding of those projects is included, would require the department to establish a technical advisory committee to review the project applications for scientific validity and the project’s potential to achieve greenhouse gas benefits. end insert The bill would require the department to implement the program and quantify greenhouse gas emissions reductions in accordance with the quantification methods developed by the State Air Resources Board and specified funding guidelines. begin delete The bill would make $20,000,000 available, upon appropriation by the Legislature, from the Greenhouse Gas Reduction Fund to the department to support the Healthy Soils Program. end delete

Vote: majority. Appropriation: no. 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.  

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

(1) 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. California’s
agricultural lands and rangelands account for nearly 50 percent of
the state’s land area.

(2) 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.

(3) California agriculture also is uniquely positioned to provide
climate benefits by reducing greenhouse gas emissions. Research
funded by the State Energy Resources Conservation and
Development Commission’s Public Interest Energy begin delete Research
program end delete begin insert Research, Demonstration, and Development Program end insert
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. In addition,
California’s agricultural lands and rangelands hold the potential
to sequester millions of metric tons of carbon, resulting in enhanced
agricultural production and increased resilience to climate change
and drought.

(4)  begin delete Robust, end delete begin insert Numerous end insert peer-reviewed, published data begin delete strongly
support the hypothesis end delete begin insert have found end insert that begin insert climate smart agriculture,
including end insert on-farm and ranch soil and vegetation begin delete management end delete
begin insert management, end insert can significantly enhance soil carbon sequestration,
resulting in a wide range of environmental and agricultural
cobenefits, including increased water retention in soils, improved
water quality, soil health, and forage quantity and quality,
reductions in greenhouse gases, and climate adaptation and
resilience.

(5) 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.

(b) 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.

(c) 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 568 of the Food and Agricultural Code is
amended to read:

568.  

(a) The secretary shall convene a seven-member Scientific
Advisory Panel on Environmental Farming to advise and assist
federal, state, and local government agencies on issues relating to
air, water, and wildlife habitat to do begin insert all of end insert the following:

(1) Review data on the impact that agriculture has on the
environment and recommend to appropriate state agencies data
that the panel approves as scientifically valid. A state agency that
receives data recommended by the panel may adopt and incorporate
the data into the appropriate program. If a state agency does not
utilize the data recommended by the panel, it shall provide the
panel with a written statement of reasons for not utilizing the data.
The reasons, at a minimum, shall specify the scientific basis for
not utilizing the data. The reasons shall be provided within 180
days of receiving the data from the panel.

(2) Compile the net environmental impacts that agriculture
creates for the environment, identified pursuant to paragraph (1).

(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.

(b)  begin insert (1) end insert begin insert   end insert Members of the panel shall be highly qualified and
professionally active or engaged in the conduct of scientific
research. Of the members first appointed to the panel, two shall
serve for a term of two years and three shall serve for a term of
three years, as determined by lot. Thereafter, members shall be
appointed for a term of three years. The members shall be
appointed as follows:

begin delete

(1)

end delete

begin insert (A) end insert  Five members shall be appointed by the begin delete secretary. At least
two of these members shall end delete begin insert secretary as follows: end insert

begin insert (i) end insert begin insert   end insert begin insert At least end insert begin insert two members shall end insert have a minimum of five years of
training and experience in the field of agriculture and shall
represent production agriculture. begin delete At least one of the five members end delete

begin delete shall end delete

begin insert (ii) end insert begin insert   end insert begin insert At least one member shall end insert have training and begin insert field end insert experience
in on-farm management practices that reduce greenhouse gas
emissions, sequester carbon, or both.

begin insert

(iii) At least one member shall be certified as a producer
pursuant to the federal Organic Foods Production Act of 1990 (7
U.S.C. Sec. 6501 et seq.).

end insert begin insert

(iv) At least one member shall have technical expertise in
agricultural conservation planning and management.

end insert begin delete

(2)

end delete

begin insert (B) end insert  One member, who has a minimum of five years of training
and experience in the field of human health or environmental
science, shall be appointed by the Secretary for Environmental
Protection.

begin delete

(3)

end delete

begin insert (C) end insert  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 begin insert Natural end insert Resources Agency.

begin insert

(2) The secretary may also appoint, in consultation with the
panel, ex officio nonvoting members to the panel.

end insert

(c) The panel may establish ad hoc committees, which may
include begin delete professionals or end delete begin insert professionals, end insert scientists, begin insert or representatives
of nongovernmental entities, end insert to assist it in performing its functions.

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

(e) The State Air Resources Board shall consult with the
secretary and the panel, as appropriate, in developing the
quantification methods described in subdivision (b) of Section
16428.9 of the Government Code as it relates to the demonstration
and quantification of on-farm greenhouse gas emissions reductions.

SEC. 3.  

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

569.  

(a)  begin insert (1) end insert begin insert   end insert The department, in consultation with the panel,
shall establish and oversee a Healthy Soils Program. The program
shall begin delete provide end delete begin insert seek to optimize climate benefits while supporting
the economic viability of California agriculture by providing end insert
incentives, including, but not limited to, loans, grants, research,
and technical assistance, and educational materials and outreach,
to farmers whose management practices contribute to begin delete healthful end delete
begin insert healthy end insert soils and result in net long-term on-farm greenhouse gas
benefits. The program may also include the funding of on-farm
demonstration projects that further the goals of the program.

begin insert

(2) The department, in consultation with the panel, may
determine priorities for the program and give priority to projects
that occur in and benefit disadvantaged communities identified
pursuant to Section 39711 of the Health and Safety Code, show
promise of being replicable in other parts of the state, or provide
environmental and agronomic cobenefits, such as improved air
and water quality, improved crop yield, and reduced soil erosion.

end insert begin insert

(3) The panel may also advise the department on scientific
findings, program framework, guidelines, grower incentives, and
providing technical assistance.

end insert begin insert

(4) If the department elects to fund on-farm demonstration
projects described in paragraph (1), the department, in
consultation with the panel, shall establish a technical advisory
committee to review on-farm demonstration project applications
for scientific validity and the proposed project’s potential to
achieve greenhouse gas benefits.

end insert

(b) The department shall implement the program and quantify
greenhouse gas emissions reductions in accordance with the
funding guidelines developed by the State Air Resources Board
pursuant to Section 39715 of the Health and Safety Code and the
quantification methods developed by the State Air Resources Board
pursuant to Section 16428.9 of the Government Code.

begin delete

(c) (1) The sum of twenty million dollars ($20,000,000) shall
be made available, upon appropriation by the Legislature, from
the Greenhouse Gas Reduction Fund to the department to support
the Healthy Soils Program.

end delete begin delete

(2)

end delete

begin insert (c) end insert begin insert   end insert begin insert (1) end insert  The department may begin delete also end delete pursue begin delete other end delete public and private
sources to support the Healthy Soils Program.

begin insert

(2) To the extent funds are available, the department may
provide support to the program, including, but not limited to,
technical assistance, education, and outreach.

end insert begin insert

(d) For purposes of this section, “panel” means the Scientific
Advisory Panel on Environmental Farming.

end insert begin insert

(e) For purposes of the Healthy Soils Program, the following
terms have the following meanings:

end insert begin insert

(1) “Greenhouse gas benefits” means greenhouse gas emissions
source reduction or carbon sequestration.

end insert begin insert

(2) “Healthy soils” means soils that enhance their continuing
capacity to function as a biological system, increase soil organic
matter, improve soil structure and water- and nutrient-holding
capacity, and result in net long-term greenhouse gas benefits.

end insert begin insert

(3) “On-farm demonstration projects” means projects that
incorporate farm management practices that result in greenhouse
gas benefits across all farming types with the intent to establish
or promote healthy soils.

end insert