BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1363 (Monning) - Ocean Protection Council: Ocean Acidification and Hypoxia Reduction Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 26, 2016 |Policy Vote: N.R. & W. 7 - 2, | | | E.Q. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 16, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1363 requires, to the extent that funding is available, the Ocean Protection Council (OPC), in consultation with the State Coastal Conservancy (conservancy) and other relevant entities, to establish and administer the Ocean Acidification and Hypoxia Reduction Program, and specifies approaches that must be considered. Fiscal Impact: If funding is made available, this bill will result in the following costs: Unknown, but significant costs (special fund) to OPC, to develop and administer the program. Minor costs (special fund) to the conservancy for consultation. SB 1363 (Monning) Page 1 of ? Background:1) 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. 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. 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 SB 1363 (Monning) Page 2 of ? 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 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. Proposed Law: This bill: 1)Makes findings and declarations about the productivity of eelgrass ecosystems; the numerous ecosystem services provided SB 1363 (Monning) Page 3 of ? by eelgrass, including hypoxia mitigation, carbon sequestration, and mitigation against sea level rise. 2)Requires OPC, in consultation with the conservancy and other relevant entities, to establish and administer the Ocean Acidification and Hypoxia Reduction Program. 3)States that the program is intended to achieve the following goals: a) 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. 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. c) Incorporating consideration of carbon dioxide 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. 4)Requires OPC to consider approaches in the program to remove carbon dioxide from seawater that provide multiple cobenefits, including, but not limited to, providing essential fish and bird habitat, improving water quality, and mitigating sea level rise. Related Legislation: AB 2139 (Williams, 2016) requires the Ocean Protection Council to facilitate research and compile data on the causes and effects of ocean acidification and, no later than January 1, 2018, and to adopt recommendations for further legislative and executive actions to address ocean acidification. AB 2139 is currently in the Assembly Appropriations Committee. Staff SB 1363 (Monning) Page 4 of ? Comments:1) 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. -- END --