Amended in Assembly June 29, 2016

Amended in Senate May 31, 2016

Amended in Senate April 26, 2016

Amended in Senate March 28, 2016

Senate Bill No. 1363

Introduced by Senator Monning

(Coauthor: Senator Pavley)

February 19, 2016

An act to amend Section 35650 of, and to add Sections 35630 and 35631 to, the Public Resources Code, relating to coastal resources.

LEGISLATIVE COUNSEL’S DIGEST

SB 1363, as amended, Monning. Ocean Protection Council: Ocean Acidification and Hypoxia Reduction Program.

The California Ocean Protection Act establishes the Ocean Protection Council and requires the council, among other things, to coordinate activities of state agencies that are related to the protection and conservation of coastal waters and ocean ecosystems, and to establish policies to coordinate the collection and sharing of scientific data related to coastal and ocean resources among agencies. The act creates the California Ocean Protection Trust Fund in the State Treasury and authorizes moneys deposited in the fund, upon appropriation by the Legislature, to be expended by the council for projects and activities authorized by the council consistent with the purposes of the act.

This bill would require the council, in consultation with the State Coastal Conservancy and other relevant entities, to establish and administer the Ocean Acidification and Hypoxia Reduction Program for the purposes of achieving specified goals. The bill would authorize moneys in the trust fund to be expended for grants or loans for projects or activities that further public purposes consistent with the Ocean Acidification and Hypoxia Reduction Program.

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 35630 is added to the Public Resources
Code, to read:

35630.  

The Legislature finds and declares all of the following:

(a) Ocean acidification and hypoxia, an abnormal deficiency of
oxygen in marine environments, are two major threats to ocean
and coastal ecosystems globally, and west coast states are
particularly vulnerable, according to the April 2016 findings of
the West Coast Ocean Acidification and Hypoxia Science Panel.

(b) Ocean acidification is caused primarily by global carbon
dioxide emissions. Local carbon dioxide emissions and local
nutrient inputs can intensify the effects of ocean acidification.

(c) The West Coast Ocean Acidification and Hypoxia Science
Panel recommends that California and other west coast states
actively employ strategies that address local factors that can reduce
ocean acidification and hypoxia exposure, including protecting
and restoring critical coastal and aquatic habitats.

(d) Eelgrass ecosystems are among the most diverse and
productive ecosystems in the world, with particular importance to
farmed shellfish aquaculture and other forms of sustainable
aquaculture and to commercially and recreationally valuable
species, including shellfish, crabs, finfish, waterfowl, and
shorebirds.

(e) Eelgrass protection and restoration efforts help promote a
healthier ocean for ecosystems and industry.

(f) Since the 1850s, 90 percent of California’s eelgrass acreage
has been destroyed, and the remaining 10 percent is continuously
exposed to multiple stressors and threats.

(g) Scientific research has shown that eelgrass habitat provides
multiple benefits, including the following:

(1) Providing essential fish habitat for salmon, groundfish, and
Pacific herring, providing Dungeness crab nurseries, and supporting
commercial fisheries important to California’s coastal economy.

(2) Improving water quality by filtering polluted runoff and by
absorbing excess nutrients.

(3) Helping to mitigate hypoxia.

(4) Sequestering carbon in the underlying sediments.

(5) Protecting the shoreline from erosion by absorbing wave
energy and helping to mitigate the impacts of sea level rise.

(h) Advancing the protection and restoration of eelgrass beds
in California’s coastal environments, based on scientific and
evidence-based approaches, is a critical strategy in enhancing
California’s ability to cope with ocean acidification and hypoxia.

SEC. 2.  

Section 35631 is added to the Public Resources Code,
to read:

35631.  

(a) To the extent funds are available from bonds or
other sources, the council, in consultation with the State Coastal
Conservancy and other relevant entities, shall establish and
administer the Ocean Acidification and Hypoxia Reduction
Program for the purposes of achieving the following goals:

(1) Developing demonstration projects to research how
important environmental and ecological factors interact across
space and time to influence how geographically dispersed eelgrass
beds function for carbon dioxide removal and hypoxia reduction.

(2) Generating an inventory of locations where conservation or
restoration of aquatic habitats, including eelgrass, can be
successfully applied to mitigate ocean acidification and hypoxia.

(3) Incorporating consideration of carbon dioxide removal begin insert for
eelgrass restoration projects end insert during the habitat restoration planning
process in order to fully account for the benefits of long-term
carbon storage of habitat restoration in addition to the habitat value.

(4) Supporting science, monitoring, and coordination to ensure
that ocean and coastal policy and management in California reflect
best readily available science on strategies to reduce ocean
acidification and hypoxia.

(b) In advancing approaches in the program to remove carbon
dioxide from seawater, the council shall consider approaches that
provide multiple cobenefits, including, but not limited to, providing
essential fish and bird habitat, improving water quality, and
mitigating sea level rise.

SEC. 3.  

Section 35650 of the Public Resources Code is
amended to read:

35650.  

(a) The California Ocean Protection Trust Fund is
established in the State Treasury.

(b) Moneys deposited in the fund may be expended, upon
appropriation by the Legislature, for both of the following:

(1) Projects and activities authorized by the council consistent
with Chapter 3 (commencing with Section 35600).

(2) Upon authorization by the council, for grants or loans to
public agencies, nonprofit corporations, or private entities for, or
direct expenditures on, projects or activities that do one or more
of the following:

(A) Eliminate or reduce threats to coastal and ocean ecosystems,
habitats, and species.

(B) Improve the management of fisheries through grants or
loans for the development and implementation of fishery
management plans pursuant to Part 1.7 (commencing with Section
7050) of Division 6 of the Fish and Game Code, a part of the
Marine Life Management Act of 1998, that promote long-term
stewardship and collaboration with fishery participants to develop
strategies that increase environmental and economic sustainability.
Eligible projects and activities include, but are not limited to,
innovative community-based or cooperative management and
allocation strategies that create incentives for ecosystem
improvement. Eligible expenditures include, but are not limited
to, costs related to activities identified in subdivisions (a), (b), and
(d) of Section 7075 of the Fish and Game Code, fishery research,
monitoring, data collection and analysis to support adaptive
management, and other costs related to the development and
implementation of a fishery management plan developed pursuant
to this subparagraph.

(C) Foster sustainable fisheries, including grants or loans for
one or more of the following:

(i) Projects that encourage the development and use of more
selective fishing gear.

(ii) The design of community-based or cooperative management
mechanisms that promote long-term stewardship and collaboration
with fishery participants to develop strategies that increase
environmental and economic sustainability.

(iii) Collaborative research and demonstration projects between
fishery participants, scientists, and other interested parties.

(iv) Promotion of value-added wild fisheries to offset economic
losses attributable to reduced fishing opportunities.

(v) The creation of revolving loan programs for the purpose of
implementing sustainable fishery projects.

(D) Improve coastal water quality.

(E) Allow for increased public access to, and enjoyment of,
ocean and coastal resources, consistent with sustainable, long-term
protection and conservation of those resources.

(F) Improve management, conservation, and protection of
coastal waters and ocean ecosystems.

(G) Provide monitoring and scientific data to improve state
efforts to protect and conserve ocean resources.

(H) Protect, conserve, and restore coastal waters and ocean
ecosystems, including any of the following:

(i) Acquisition, installation, and initiation of monitoring and
enforcement systems.

(ii) Acquisition from willing sellers of vessels, equipment,
licenses, harvest rights, permits, and other rights and property, to
reduce threats to ocean ecosystems and resources.

(I) Address coastal water contamination from biological
pathogens, including collaborative projects and activities to identify
the sources of pathogens and develop detection systems and
treatment methods.

(J) (i) Provide funding for adaptive management, planning,
coordination, monitoring, research, and other necessary activities
to minimize the adverse impacts of climate change on California’s
ocean ecosystem, including, but not limited to, the effects of sea
level rise, changes in ocean productivity, and ocean acidification
on coastal and ocean habitat, wildlife, fisheries, chemistry, and
other key attributes of ocean ecosystems and to increase the state’s
understanding of the ocean’s role in carbon sequestration. Adaptive
management strategies, planning, research, monitoring, or other
activities shall be designed to improve the management of coastal
and ocean resources or aid the state to adapt to climate change
impacts.

(ii) Information or activities developed under clause (i), to the
extent appropriate, shall provide guidance to the State Air
Resources Board for the adoption of early action measures for the
elimination or reduction of emissions from sources or categories
of sources pursuant to the California Global Warming Solutions
Act of 2006 (Division 25.5 (commencing with Section 38500) of
the Health and Safety Code).

(c) Grants or loans may be made to a private entity pursuant to
this section only for projects or activities that further public
purposes consistent with Sections 35510, 35515, 35617, begin delete 35630, end delete
and 35631.

(d) Consistent with the purposes specified in Section 35515,
and in furtherance of the findings in Sections 7059 and 7060 of
the Fish and Game Code, the council, in authorizing grants or loans
for projects or expenditures pursuant to this section, shall promote
coordination of state programs and activities that protect and
conserve ocean resources to avoid redundancy and conflicts to
ensure that the state’s programs and activities are complementary.