BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            SB 1363         Hearing Date:    April 12,  
          2016
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          |Author:    |Monning                |           |                 |
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          |Version:   |March 28, 2016                                       |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Matthew Dumlao                                       |
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            Subject:  Ocean Protection Council:  Ocean Acidification and  
                              Hypoxia Reduction Program


          BACKGROUND AND EXISTING LAW
          
          Human activities have dramatically increased the concentration  
          of carbon dioxide in the atmosphere and current carbon dioxide  
          levels are higher than they have been in over 650,000 years.   
          Oceans have absorbed approximately one-third of all  
          anthropogenic carbon dioxide emissions.

          The absorption of carbon dioxide in the oceans is contributing  
          to a suite of changes to ocean chemistry, including a reduction  
          in ocean acidity, a process referred to as ocean acidification.  
          Research has shown that the increase in ocean acidity is having  
          a negative impact on many ocean organisms, including shellfish,  
          starfish, corals, sea urchins, and many types of plankton.   
          Organisms that produce skeletons (e.g., corals) or shells (e.g.,  
          oysters and clams) are particularly sensitive to changes in  
          ocean chemistry.  The disruptive potential of ocean  
          acidification poses a serious risk to California's shellfish  
          industry. 

          The effects of ocean acidification are further compounded by the  
          intensification and expansion of low dissolved oxygen - or  
          hypoxic - zones in the ocean.  These regions form in part from  
          runoff that carries nutrients and organic carbon into the ocean.  
           The low levels of dissolved oxygen can result in "dead zones"  







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          where mass die-offs of fish and shellfish occur.

          The California Ocean Protection Act of 2004 created the Ocean  
          Protection Council (OPC).  OPC is tasked with (1) coordinating  
          activities of ocean-related state agencies to improve the  
          effectiveness of state efforts to protect ocean resources within  
          existing fiscal limitations, (2) establishing policies to  
          coordinate the collection and sharing of scientific data related  
          to coast and ocean resources between agencies, (3) Identify and  
          recommend to the Legislature changes in law, and (4) Identify  
          and recommend changes in federal law and policy to the Governor  
          and Legislature.

          The Ocean Protection Trust Fund was established to serve as a  
          source of grants and other activities funded by the OPC.  It  
          largely has been the recipient of bond funds appropriated for  
          that purpose by the Legislature.

          In an effort to develop the scientific foundation necessary for  
          coastal managers and other stakeholders to take informed action,  
          the California Ocean Protection Council asked the California  
          Ocean Science Trust to establish and coordinate a scientific  
          advisory panel in collaboration with counterparts in Oregon,  
          Washington, and British Columbia.  The resulting West Coast  
          Ocean Acidification and Hypoxia Science Panel (panel) was  
          charged with summarizing the current state of knowledge and  
          developing scientific consensus about available management  
          options. On April 4, 2016, the panel released a document  
          describing the major findings, recommendations and actions.

          In the Legislature, the Senate Natural Resources and Water  
          Committee held an oversight hearing on January 26, 2016 to  
          provide a forum to discuss the challenges ocean acidification  
          and hypoxia pose to California.  The oversight hearing, along  
          with the document published by the panel, helped inspire this  
          legislation.


          PROPOSED LAW
          
          This bill requires the Ocean Protection Council, in coordination  
          with the State Coastal Conservancy, to establish and administer  
          the Ocean Acidification and Hypoxia Reduction Program.  The  
          goals of the program are to:








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                 Develop demonstration projects to evaluate the best  
               locations for strategies that remove carbon dioxide from  
               the ocean.
                 Generate an inventory of locations where conservation or  
               restoration of aquatic habitats can be successfully  
               applied. 
                 Incorporate consideration of carbon dioxide removal  
               during habitat restoration planning process.
                 Consider carbon dioxide removal strategies that provide  
               multiple co-benefits, including providing essential fish  
               and bird habitat, improving water quality, and mitigation  
               sea level rise.

          The findings and declarations portion of the bill describes the  
          productivity of eelgrass ecosystems; the numerous ecosystem  
          services provided by eelgrass, including hypoxia mitigation,  
          carbon sequestration, and mitigation against sea level rise.

          ARGUMENTS IN SUPPORT
          
          According to the author, the "April 2016 report by the West  
          Coast Ocean Acidification and Hypoxia Science Panel and the  
          Ocean Science Trust, in collaboration with the Ocean Protection  
          Council entitled  The West Coast Ocean Acidification and Hypoxia  
          Science Panel: Major Findings, recommendations, and Action  ,  
          although ocean acidification is a global issue, California's  
          coast will experience some of the most severe and earliest  
          changes in ocean carbon chemistry. Key recommendations of the  
          report, however, tell us that there are actions that can be  
          taken now in California."

          The author went further saying, "By investing in the restoration  
          of eelgrass bed on California's coast, SB 1363 leverages the  
          co-benefits of ocean acidification mitigation, sea-level rise  
          mitigation, carbon sequestration, water quality benefits, and  
          providing essential fish habitat, while also supporting the  
          state's coastal economy."

          Numerous supporters pointed out the growing threat posed by  
          ocean acidification and hypoxia on fisheries and, more broadly,  
          California's economy.


          ARGUMENTS IN OPPOSITION








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          None received.

          COMMENTS
           Source of funding for the proposed program
           Funds for the proposed Ocean Acidification and Hypoxia Reduction  
          Program will come from the California Ocean Protection Trust  
          Fund. Money from the fund can be used on a variety projects and  
          this bill simply allows the Ocean Acidification and Hypoxia  
          Reduction Program to be eligible for those funds.
           
          Related legislation  
          SB 1114 (Allen): This bill addresses various aspects of fishing  
          for swordfish. Like SB 1363, it also expands the eligibility of  
          projects that can receive trust fund money.
          
          AB 2139 (Williams): This bill would require the Ocean Protection  
          Council to facilitate research and compile data on the causes  
          and effects of ocean acidification and adopt recommendations for  
          further legislative and executive actions by January 1, 2018.  
           
          The overlap between SB1363 and AB 2139 may pose a legal problem.

           Double-referral  The Rules Committee referred this bill to both  
          the Committee on Natural Resources and Water and to the  
          Committee on Environmental Quality.  Therefore, if this bill  
          passes this committee, it will be referred to the Committee on  
          Environmental Quality, which will consider the issues within  
          their jurisdiction.  

          SUGGESTED AMENDMENTS 
          None.
               
          SUPPORT
          Audubon California
          AZUL
          Big Sur Land Trust
          Bolsa Chica Land Trust
          California Coastal Protection Network
          California League of Conservation Voters
          California Waterfowl Association
          Clean Water Action
          Peninsula Open Space Trust
          Sonoma County Agricultural Preservation and Open Space District









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          OPPOSITION
          None received.



          
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