BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SB 1363 ----------------------------------------------------------------- |Author: |Monning | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |3/28/2016 |Hearing |4/20/2016 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Dan Brumbaugh | | | | ----------------------------------------------------------------- SUBJECT: Ocean Protection Council: Ocean Acidification and Hypoxia Reduction Program ANALYSIS: Existing law: 1) Under federal law, pursuant to the Magnuson-Stevens Fishery Conservation and Management Act (1976) and subsequent revisions and reauthorizations in 1996 and 2007, designates eelgrass beds as an Essential Fish Habitat (EFH) habitat area of particular concern (HAPC) for various federally-managed fish species within the Pacific Coast Groundfish Fishery Management Plan, developed by the Pacific Fisheries Management Council in 2008. EFH is defined as the waters and substrate necessary for fish for spawning, breeding, feeding, or growth to maturity, and an HAPC is a subset of EFH that is rare, particularly susceptible to human-induced degradation, especially ecologically important, and/or located in an environmentally stressed area. HAPC designations are used to provide additional focus for conservation efforts (16 USC §1855). 2) Considers vegetated shallows that support eelgrass as special aquatic sites under the 404(b)(1) guidelines of the Clean Water Act (40 CFR §230.43). 3) Under state law, pursuant to the McAteer-Petris Act (Government Code §66600 et seq.) and the California Coastal Act (Public Resources Code §30000 et seq.), mandates protection and restoration of submerged marine habitats. SB 1363 (Monning) Page 2 of ? 4) Created the California State Coastal Conservancy in 1976 to protect and improve natural lands and waterways, to help people get to and enjoy the outdoors, and to sustain local economies along California's coast. The Conservancy is a non-regulatory agency that supports projects to protect coastal resources and increase opportunities for the public to enjoy the coast. (Chapter 1441, Statutes of 1976; PRC §31000 et seq.) 5) Establishes the California Ocean Protection Council (OPC) and the California Ocean Protection Trust Fund (OPTF) through SB 1319 (Burton, Alpert, Chapter 719, Statutes of 2004) to coordinate, streamline, and improve the effectiveness of the state's oversight of its ocean resources; designate ocean and marine ecosystems as a public trust; and promote ocean protection policies based on sound science. The OPC administers the OPTF to carry out its duties, and to make grants or loans to public agencies, non-profits or private entities for projects that protect and enhance ocean resources, as specified, including the development of monitoring and scientific data to improve state efforts to protect and conserve ocean resources. (PRC §35600 et seq.) 6) Through Proposition 84, also known as the "Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006" (Chapter 7, Statutes of 2006), provides $90 million dollars over the course of 10 years to the OPTF to fund priority OPC projects. (PRC §75060(g)) This bill: 1) Makes a series of findings and declarations regarding eelgrass ecosystems, as specified. 2) Requires the OPC, in coordination with the State Coastal Conservancy and to the extent that funds are available from bonds or other sources, to establish and administer the Ocean Acidification and Hypoxia Reduction Program (Program) for the purposes of achieving the following goals: a) Developing demonstration projects to evaluate the best locations that are optimal for implementing carbon for implementing carbon dioxide (CO2) removal strategies, including the protection and restoration of eelgrass beds; SB 1363 (Monning) Page 3 of ? b) Generating an inventory of locations where conservation or restoration of aquatic habitats, including eelgrass, can be successfully applied to mitigate ocean acidification and hypoxia; and c) Incorporating consideration of CO2 removal 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. 3) Directs the OPC, in advancing the Program to remove CO2 from seawater to consider approaches that provide multiple co-benefits, including, but not limited to, providing essential fish and bird habitat, improving water quality, and mitigating sea level rise. Background 1) Emergence of general concern about ocean acidification. A series of reports over the last two decades have documented large-scale declines in the health of the state's ocean and coastal ecosystems. These include the 1997 Resources Agency report, California's Ocean Resources: An Agenda for the Future, the 2003 Pew Oceans Commission report, America's Living Oceans: Charting a Course for Sea Change, and the 2004 United States Commission on Ocean Policy report, An Ocean Blueprint for the 21st Century. These earlier reports were wide-ranging, synthetic, and influential in the state in that they led to the creation of the OPC. Looking back, however, the limited attention they devote to ocean acidification (OA) is striking yet understandable, as the phenomenon was then relatively poorly appreciated and studied. Ocean acidification is caused by a series of chemical reactions that occur as the surface waters of the ocean absorb a portion (about a third) of the extra carbon dioxide (CO2) produced by human activities and emitted into the atmosphere. These reactions result in seawater that is more corrosive, with a lower pH ("acidification") and a lower concentration of dissolved carbonate ions that many marine organisms use to grow their shells and skeletons. More recently, awareness of OA impacts has grown within the marine science, resource use, and management communities, which has resulted in the ramping up of more OA research and discussion of its implications for resource users and management. Growing practical experience with impacts from SB 1363 (Monning) Page 4 of ? changing ocean chemistry includes oyster farms, some of which, for example, have learned to avoid in-taking seawater during periods when it is harmful to young shellfish. Others are now chemically treating batches of seawater in their facilities to make it more suited to the needs of shellfish, but such treatments are currently only feasible at the scale of smaller, closed-system operations. The threats posed by increasing OA will be further compounded by other dimensions of climate change, such as 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. When spread across large enough areas, low levels of dissolved oxygen can result in "dead zones" where mass die-offs of fish and shellfish occur. In the coming decades, the impacts of OA and hypoxia (OAH), which are already being felt across West Coast systems, are projected to grow rapidly in intensity and extent. 2) Ocean acidification and California. In January 2016, the Senate Natural Resources and Water Committee convened an Informational Hearing where scientists discussed aspects of the emerging science of OA. In April 2016, the multi-year, multi-state West Coast Ocean Acidification and Hypoxia Science Panel (OAH Panel) released an extensive report that summarizes current knowledge of the science (which is still in its infancy), research priorities, and recommendations for actions that can nevertheless be taken by management now. According to the report, because of oceanographic circulation dynamics in the North Pacific, California's coastal ecosystems are particularly exposed to impacts of OA. And as with other mitigation and adaptation aspects of carbon emissions, when it comes to addressing OA, there is a cost to management inaction. This is because OA impacts, and the difficulties of addressing them, will only get worse in the foreseeable future. Although the changes to ocean carbonate chemistry that California is experiencing are unavoidably linked to changes in the concentration of atmospheric CO2 globally, there is a lag of decades in the linkage between global atmospheric conditions and our local coastal waters. This is because our upwelled coastal waters originated as surface waters off of Japan 30-50 years prior. There at the surface, they absorbed CO2 from the SB 1363 (Monning) Page 5 of ? atmosphere before sinking hundreds of feet below the surface as they were transported across the North Pacific to the west coast of North America. As the water was transported, continuing biological respiration of organic particles released more CO2, making the water naturally CO2 rich and lower in pH and carbonate. This water then traveled down the west coast, where, especially along certain parts of the coastline and under certain seasonal wind conditions, it was upwelled and spread across the continental shelf. Because of this transport and enrichment process, the state of ocean chemistry off of California's coast is 30-50 years behind the state of the atmosphere. In other words, if rising atmospheric carbon concentrations were to become instantaneously stabilized, we would still be "locked into" increasing OA impacts for another three or more decades. Although research about possible impacts is still emerging, there is evidence to suggest that more extreme ocean chemistry will push ecosystems beyond certain biological thresholds, such as pH levels and carbonate concentrations that small young shelled organisms in the plankton and along shores need to grow and survive. 3) Eelgrass ecology, conservation, and restoration. Eelgrass refers to species of temperate seagrasses, which are a group of flowering plants that grow submerged in marine, brackish, and freshwaters. Two species, Zostera marina L. and Z. pacifica S. Watson, are native to California, and a third, introduced species, Z. japonica, is considered invasive and a threat to tidelands where some commercial clam farms and recreational clamming occur. Hereafter, "eelgrass" refers only to the native species. According to NOAA Fisheries "California Eelgrass Mitigation Policy and Implementing Guidelines" (October 2014), the state supports dynamic eelgrass habitats that range in extent from less than 11,000 acres to possibly as much as 15,000 acres statewide. This includes estimates for poorly documented beds in smaller coastal systems as well as open coastal and insular areas. While among the most productive of habitats, the overall low statewide abundance makes eelgrass one of the rarest habitats in California. Collectively, just five systems - Humboldt Bay, San Francisco Bay, San Diego Bay, Mission Bay, and Tomales Bay - support over 80% of the known eelgrass in the state. The uneven distribution of eelgrass resources increases SB 1363 (Monning) Page 6 of ? the risk to this habitat, and the narrow depth range within which eelgrass can occur further places this habitat at risk in the face of global climate change and sea level rise predictions. Due to recognition of cumulative threats to the extent and quality of eelgrass beds, and their ecological importance as foundational species that provide food and habitat structure to many other species within sheltered bay and estuarine communities, eelgrass is a species of conservation concern. Therefore, there are many examples of where eelgrass beds have been inventoried and mapped at fine geographic scales as parts of environmental impact assessments and mitigation plans for coastal developments. There are also many small-scale eelgrass restoration efforts underway as part of local, state, federal, and international projects, often in partnership with non-profit organizations. Variable degrees of success have resulted from these efforts in California and around the world. Ecological research on seagrasses, including their responses to changing ocean conditions, their ability to capture sediment and sequester carbon, and their ability to modify local water chemistry through photosynthesis and respiration, is still growing, but the evidence to date suggests that some of these ecological functions can vary substantially from place to place, and over time. Further research is necessary to determine the extent to which such complexity can be routinely understood enough to be reasonably predictable. Comments 1) Purpose of Bill. According to the author, "by investing in the restoration of eelgrass beds on California's coast, SB 1363 leverages the cobenefits 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." 2) Current OPC efforts and priorities. The OPC already has existing authority to create an OAH Reduction Program, but explicit statutory direction may increase the OPC's ability to fund work in this area in the future. The OPC played a major role in the development of the OAH Panel project, and the SB 1363 (Monning) Page 7 of ? project goals mentioned in SB 1363 - demonstration research projects, predictive spatial analyses, and more holistic analysis and planning of restoration - are in line with OPC interests in the areas of OA and hypoxia. Larger-scale, proof-of-concept demonstration projects, for example, could estimate the extent to which the potential OAH-mitigating benefits of photosynthesis within eelgrass beds are balanced by respiration across daily and seasonal cycles. Related questions include how far, for a given amount of eelgrass and in what environmental conditions, does the spatial "footprint" of such effects extend? What are the range of settings and locations where eelgrass protection and restoration will be most successful and beneficial? Can such measures be employed in concert with other management actions (e.g., improvements in water quality) to maximize conservation benefits? 3) Restoration challenges and expectations. Restoration of complex ecosystems is always challenging, and eelgrasses and the associated parts of their ecosystems are no exception. At a minimum, ecosystem recovery is only likely to be effective where ongoing threats and stressors to eelgrass beds and their inhabitants have been largely eliminated. To the extent that such issues remain, or the original eelgrass habitat has been irreversibly changed (e.g., through dredging of ship channels and building of port facilities), restoration of eelgrass ecosystems will be impossible. Reviews of previous transplantation efforts also reveal that, even where ecological conditions seem conducive to eelgrass re-establishment, expensive transplant efforts often have mixed levels of success. These issues have repercussions for the cumulative amount of carbon-mitigation and other co-benefits that the state should realistically expect through eelgrass restoration efforts. 4) Funding? SB 1363, as an unfunded mandate, will require new, unspecified funding to the Ocean Protection Trust Fund for full OPC implementation. By the time SB 1363 comes into effect, current funding for OPC programs through the Proposition 84 bond will have expired. The question therefore arises as to the source of funding for this program. 5) Programmatic flexibility & scientific rigor. SB 1363 mandates in §35631(a), that the OPC, "in coordination with the State SB 1363 (Monning) Page 8 of ? Coastal Conservancy, shall establish and administer" the new Program, but there is no rationale in the bill for this particular pairing of agencies, and an arbitrary statutory mandate for one agency to coordinate with another in one of its programs could be problematic. On the other hand, given the role of the Ocean Science Trust (OST) in coordinating the OAH Panel, coordinating the monitoring of the state's network of marine protected areas, and co-chairing the OPC's Science Advisory Team, OST could be considered as one of several important partners in the listed projects. Because the bill is focused on improving the scientific basis for OAH-mitigation through eelgrass restoration, and the Coastal Conservancy is not primarily a scientific agency, the committee may wish to amend the bill to also require OPC to consult with other relevant agencies in the design and implementation of the mandated research projects. 6) Research needs. In §35631(a)(1), the bill specifies "to evaluate the best locations that are optimal for implementing carbon dioxide removal strategies, including the protection and restoration of eelgrass beds." To provide additional guidance, changes are needed that preserve the legislative intent, but suggest greater impartiality about the most appropriate research approaches while also recognizing some of the dynamic ecological complexities in finding optima. An amendment is therefore needed to replace the above language with "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." 7) Clarifying amendments. There are places where proposed bill and existing statutory language could be clarified. a) In §35630(5), the bill states "?helping to mitigate sea level rise." The committee may wish to clarify this to read "?helping to mitigate the impacts of sea level rise." b) In §35650(c), which SB 1363 will amend, statute states "Grants or loans may be made to a private entity pursuant to this section only for projects or activities that further public purposes?" While technically not precluding grants or loans to public entities, the existing language raises the SB 1363 (Monning) Page 9 of ? question of whether greater clarity might be achieved with a change to "Grants or loans may be made to a public or private entity pursuant to this section only for projects or activities that further public purposes?" Related/Prior Legislation AB 2139 (Williams) requires that the Ocean Protection Council shall facilitate research and compile data on the causes and effects of ocean acidification and, no later than January 1, 2018, shall adopt recommendations for further legislative and executive actions to address ocean acidification. AB 2139 is currently in the Assembly Natural Resources Committee. DOUBLE REFERRAL: This measure was heard in Senate Natural Resources and Water Committee on April 12, 2016, and passed out of committee with a vote of 7-2. SOURCE: Audubon California SUPPORT: Azul Big Sur Land Trust Bolsa Chica Land Trust California Coastal Protection Network California League of Conservation Voters California Waterfowl Association Clean Water Action Monterey Bay Aquarium Morro Bay Oyster Company Ocean Conservancy Pacific Coast Shellfish Growers Association Peninsula Open Space Trust Sonoma County Agricultural Preservation and Open Space District Surfrider Foundation OPPOSITION: None received ARGUMENTS IN SUPPORT: SB 1363 (Monning) Page 10 of ? According to Audubon California and other supporters, SB 1363 addresses the growing threat of ocean acidification and hypoxia and the significant loss of critical eelgrass habitat along California's coast. Recognizing the important role that eelgrass plays in maintaining the overall health of coastal ecosystems, migratory species, mitigating the effects of ocean acidification and hypoxia, and sea level rise, Audubon California and others support the overall framework of this bill. The California Waterfowl Association makes particular note of the value of eelgrass beds for many waterfowl species, but especially black brant, a sea goose species of Management Concern and a Focal Species of the U.S. Fish and Wildlife Service. The Monterey Bay Aquarium supports the bill, but also suggested strengthening it with an amendment to require monitoring of the effectiveness of carbon dioxide removal strategies applied under the new Program. "Such monitoring would provide management-relevant science to help the region better understand ocean acidification and hypoxia, and measure success in addressing it." The Pacific Coast Shellfish Growers Association and the Morro Bay Oyster Company state that they generally support SB 1363's goals to address ocean acidification and hypoxia, but request amendments that better emphasize that shellfish farming, as a form of sustainable aquaculture, is not the problem, but a victim when it comes to ocean acidification. Moreover, according to the letters, oyster farms can facilitate conditions conducive to eelgrass growth. The letters also request, among other changes, that an amendment expand OPC program coordination to include fisheries, aquaculture, and harbor stakeholders. -- END --