BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: SB 1350 Hearing Date: 4/19/16
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|Author: |Wolk |
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|Version: |2/19/16 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Agricultural lands: greenhouse gases: Healthy Soils
Program
SUMMARY :
This bill would increase the Scientific Advisory Panel on
Environmental Farming from five to seven members and require one
member to have on-farm experience using management practices
that reduce greenhouse gas (GHG) emissions and/or sequester
carbon; would require the California Department of Food and
Agriculture (CDFA) to establish and oversee a Healthy Soils
Program that would provide incentives to farmers whose
management practices contribute to healthful soils and result in
net long-term on-farm GHG benefits; would allocate $20 million
from the Greenhouse Gas Reduction Fund to CDFA to support the
Healthy Soils Program.
BACKGROUND AND EXISTING
LAW :
The Cannella Environmental Farming Act of 1995 requires 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. In addition, the
Science Panel is authorized to research, review, and comment on
data used as the basis for proposed environmental policies and
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regulatory programs so that agricultural activities are
accurately portrayed. The panel also identifies incentives to
encourage agricultural practices with environmental benefits.
Existing law:
1) Requires CDFA, through the Cannella Environmental
Farming Act of 1995, 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.
2) Establishes the Scientific Advisory Panel on
Environmental Farming to, among other responsibilities,
advise and assist government agencies on the above issues
by conducting scientific data reviews and approving and
recommending scientifically valid data.
3) Requires the state Air Resources Board (ARB), through
the California Global Warming Solutions Act of 2006, to
monitor and regulate sources of greenhouse gas emissions
that cause global warming in order to reduce emissions of
greenhouse gases. Requires ARB to determine the 1990
statewide level of GHG emissions, approve a GHG emissions
limit that is equivalent to that level to be achieved by
2020, and adopt rules and regulations regarding GHG
emissions reductions (AB 32 of 2006; Health and Safety Code
§ 38500 et seq.).
4) Creates the Greenhouse Gas Reduction Fund (GGRF) to
collect all monies, except for fines and penalties, from
the auction or sale of GHG allowances established by the
ARB market-based compliance mechanism and authorizes the
legislature to appropriate monies from this fund
(Government Code § 16428.8).
5) Requires that the GGRF only be used to facilitate the
achievement of reductions of GHG emissions in California,
as specified (Health and Safety Code § 39710 et seq.).
PROPOSED
LAW :
This bill:
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1) Makes findings and declarations in regards to California
agriculture, its vulnerability to climate change, and
ability to sequester carbon in soils.
2) Makes findings and declarations that California
agriculture is uniquely positioned to provide climate
benefits by reducing GHG emissions, as California's
agricultural lands and rangelands hold the potential to
sequester millions of metric tons of carbon.
3) Finds that robust, peer-reviewed, published data
strongly supports the hypothesis that on-farm and ranch
soil and vegetation management can significantly enhance
soil carbon sequestration, resulting in a wide range of
environmental and agricultural co-benefits.
4) States that it is the intent of the legislature that
CDFA support on-farm practices and activities that reduce
GHG emissions and increase carbon storage in agricultural
soils and woody biomass.
5) Increases, from five to seven, the number of members on
CDFA's Scientific Advisory Panel on Environmental Farming.
6) Increases, from three to five, the number of members
appointed by the secretary.
a. Increases, from one to two, the number of
members with a minimum five years of training and
experience in the field of agriculture.
b. Requires that at least one of the five members
have training and experience in on-farm management
practices that reduce GHG emissions, sequester carbon,
or both.
7) Requires CARB to consult with CDFA and the panel to
develop quantification methods for on-farm GHG emissions
reductions.
8) Requires CDFA, in consultation with the panel, to
establish and oversee a healthy soils program that would
provide incentives including loans, grants, research, and
technical assistance, and educational materials and
outreach to farmers whose management practices contribute
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to healthful soils and result in net long-term on-farm GHG
benefits.
9) Authorizes CDFA to also fund on-farm demonstration
projects that further the goals of the program.
10) Requires CDFA to develop the program and quantify GHG
emissions reductions in accordance with GGRF funding
guidelines and quantification methods developed by ARB.
11) Appropriates $20 million from the GGRF to CDFA for the
Healthy Soils Program.
12) Authorizes CDFA to pursue other public and private
sources to support the program.
ARGUMENTS IN SUPPORT:
According to the author, "California's agriculture industry
contributes more than $40 billion annually to our state's
economy. Climate change, however, threatens the continued
viability of this industry. The latest science suggests that
future challenges will include rising temperatures, increases in
extreme weather events, constrained water resources, reduces
winter chilling hours, and rising sea levels. As we enter the
fourth year of an extreme drought, it is clear that farmers and
ranchers are on the frontlines of climate impacts.
California agriculture is also uniquely positioned to provide
climate benefits by reducing greenhouse gas emissions. Research
funded by the California Energy Commission's Public Interest
Energy Research program suggests that some agricultural
practices will not only reduce greenhouse gas emissions, but can
also help to store atmospheric carbon in soils, trees, and other
woody plants. Many of the most effective climate protection
strategies provide additional environmental co-benefits such as
enhanced on-farm resilience to climate impacts, improved air and
water quality, water conservation, enhanced wildlife habitat and
healthy rural communities."
Furthermore, "this proposal would add two additional members to
the Science Advisory Panel, one which would have experience in
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production agriculture and another member who would have
experience and training in on-farm management practices that
reduce greenhouse gas emissions and/or sequester carbon."
Changing panel membership in this manner will add to the
portfolio of scientific knowledge represented and will assist in
program development and implementation.
ARGUMENTS IN OPPOSITION:
According to the California Taxpayers Association, this bill
"distorts the nature of a regulatory fee. The cap-and-trade
program cannot legally be earmarked for expenditures such as
those identified in this bill, absent a two-thirds vote."
Absent a two-thirds vote approving the cap-and-trade program,
the program must comply with existing law: 1) primary purpose of
a fee is not to generate revenue; 2) fees must have a nexus to
the payer; 3) regulatory fees must be reasonable.
"By directing funds beyond the clear regulatory purposes, this
bill opens up the cap-and-trade program to ongoing challenges."
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.
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 produce fruits and vegetables and store
carbon in the soil, thereby increasing soil organic matter.
Animals produce manure that could be used to create energy
(through methane digesters), compost, and several other valuable
products, while also reducing the emission of methane and other
GHG. Land management practices have been and continue to be
adopted to reduce negative effects on the environment such as
drip irrigation, reduced land tillage, reduced soil erosion,
nitrogen management, and the use of cover crops. This bill
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would provide funding to continue the development and
implementation of on-farm management practices to further the
environmental benefits of California's agricultural lands.
Healthy Soils Initiative. In his 2015-16 budget proposal,
Governor Brown included the new "Healthy Soils Initiative" to
increase carbon in soil to improve soil health, agricultural
productivity, soil water-holding capacity, and decreased
sediment erosion. Governor Brown directed CDFA, under its
existing authority provided by the Cannella Environmental
Farming Act, to coordinate with other key agencies to work on
several new initiatives. CDFA has since developed five action
measures: protect and restore soil carbon; identify funding
opportunities, including market development; provide research,
education and technical support; increase governmental
efficiencies to enhance soil health on public and private lands;
and ensure interagency coordination and collaboration.
In a 2016-17 budget change proposal (BCP), CDFA requests $75
million funding from GGRF for activities promoting GHG emissions
reductions in the agricultural sector through "Climate Smart
Agriculture" programs, specifically $20 million for the State
Water Efficiency and Enhancement Program; $35 million for the
Dairy Digester Research and Development Program; and $20 million
to develop and administer the new Healthy Soils Program.
In this BCP, CDFA provides a framework for the Healthy Soils
Program that will be designed to reduce GHG emissions and
increase carbon sequestration through better soil management
practices. In collaboration with California Department of
Resources Recycling and Recovery (CalRecycle), California
Department of Conservation (DOC), and California Air Resources
Board (ARB), CDFA will provide funds as an incentive to farms
implementing climate-smart management practices as well as for
demonstration projects that have quantifiable GHG reductions.
Collaboration across state agencies will provide the expertise
needed to quantify GHG reduction methodologies and ensure that
the program complements existing land conservation activities.
Amendments: The California Climate and Agriculture Network
(CalCAN) and the Community Alliance with Family Farmers (CAFF)
are in conversations with CDFA and the author's office regarding
amendments to this bill. In general, they would like the bill
to provide additional expertise on the panel and include robust
parameters for the Healthy Soils Program. Specifically, their
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concerns and comments are as follows:
1) Increase the number of members on the Science Panel to
include representatives of resource conservation districts,
registered organic producers, and UC Cooperative Extension;
modify member qualifications and expertise to include
climate change mitigation and natural resource management,
among others.
2) Establish Healthy Soils Program parameters in statute to
maintain program integrity and consistency under future
administrations.
3) Use of the term "climate smart" agriculture and
extrapolate on program goals and outcomes.
Work in progress: The author's office is committed to working
with CDFA and stakeholders on adopting amendments to address
concerns and strengthen the Healthy Soils Program in statute.
The committee may wish to consider which amendments should be
discussed and addressed in subsequent versions of this bill.
For example, programmatic details such as:
1) Definitions of healthy soils, on-farm demonstration
projects, GHG benefits, and management practices;
2) Criteria used to determine project prioritization and
how projects will be funded (competitively, land management
type used, level of GHG reduction, impact on co-benefits,
local/private funding support);
3) Clarified program goals;
4) Reporting requirements;
5) Prioritization of disadvantaged communities;
6) Collaboration with state agencies in addition to ARB;
7) USDA-NRCS National Conservation Practice Standards as
appropriate management practices to be used to achieve
program goals;
8) Collaboration with local agencies and research
institutions to provide technical assistance, education,
and outreach;
Many of these details are already included in CDFA's BCP. The
committee may wish to consider which details should be
established in statute.
RELATED
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LEGISLATION :
SB 1247 (Jackson) currently in the Senate Committee on
Agriculture. This bill would require the Department of
Pesticide Regulation to establish, in consultation with CDFA, a
voluntary incentive program for farmers who utilize
environmental farming practices within an "agricultural
innovation zone," as defined. This bill requires at least 50% of
any funding made available to be given to projects that avoid
applications of pesticides other than those approved for use in
organic production.
SB 367 (Wolk) of 2015. Held under submission in the Assembly
Appropriations Committee. This bill would recast and expand the
membership and the duties of CDFA's Science Advisory Panel on
Environmental Farming; would appropriate $25 million from the
Greenhouse Gas Reduction Fund to CDFA for the establishment of a
new grant program to support on-farm practices that reduce GHG
emissions and increase carbon storage in soil; and would
appropriate 2% of the proceeds from this fund to the Sustainable
Agricultural Lands Conservation Program for these activities.
AB 761 (Levine) of 2015. Held under submission in the Senate
Appropriations Committee. This bill would require CDFA, upon
appropriation, to establish a grant program to fund projects
that increase carbon sequestration and reduce GHG emissions on
agricultural lands.
PRIOR
ACTIONS :
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|Senate Environmental Quality |6 - 0 |
|Committee: | |
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SUPPORT :
California Department of Food and Agriculture (Sponsor)
California Compost Coalition
California Farm Bureau Federation
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California League of Conservation Voters
California Trout
Californians Against Waste
Californians For Pesticide Reform
Carbon Cycle Institute
Environment California
Environmental Working Group
Land Trust of Santa Cruz County
Lutheran Office of Public Policy - California
National Audubon Society
The Nature Conservancy
Pesticide Action Network - North America
Santa Clara Valley Open Space Authority
Union of Concerned Scientists
Wholly H2O
OPPOSITION :
California Taxpayers Association
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