BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1363|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 1363
          Author:   Monning (D) 
          Amended:  5/31/16  
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  7-2, 4/12/16
           AYES:  Pavley, Allen, Hertzberg, Hueso, Jackson, Monning, Wolk
           NOES:  Stone, Vidak

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  5-2, 4/20/16
           AYES:  Wieckowski, Hill, Jackson, Leno, Pavley
           NOES:  Gaines, Bates

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/27/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Ocean Protection Council:  Ocean Acidification and  
                     Hypoxia Reduction Program


          SOURCE:    Author

          DIGEST:  This bill 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.

          ANALYSIS:  
          
          Existing law:








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          1)Establishes the OPC to coordinate activities of ocean-related  
            state agencies and establish policies to coordinate the  
            collection and sharing of scientific data related to the coast  
            and ocean resources between agencies. 

          2)Establishes the Ocean Protection Trust Fund in the State  
            Treasury and administered by OPC, to make grants or loans to  
            public agencies, non-profit corporations or private entities  
            for projects that, among other objectives, improve management,  
            conservation, and protection of coastal waters and ocean  
            ecosystems; provide monitoring and scientific data to improve  
            state efforts to protect and conserve ocean resources; and  
            provide funding for adaptive management, planning,  
            coordination, and other necessary activities to minimize the  
            adverse impacts of climate change, including the effects of  
            ocean acidification.

          3)Creates the California State Coastal Conservancy 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, created in 1976, is a  
            non-regulatory agency that supports projects to protect  
            coastal resources and increase opportunities for the public to  
            enjoy the coast.

          This bill:

          1)Makes findings and declarations about the threat posed by  
            ocean acidification and hypoxia (OAH) to ocean ecosystems, the  
            causes of OAH, and the emerging scientific evidence of  
            important ecosystem services provided by eelgrass ecosystems,  
            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  







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               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 OAH.

             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.

             d)   Supporting science, monitoring, and coordination to  
               ensure ocean and coastal policy and management reflect best  
               available science on strategies to reduce OAH.

          4)Requires OPC to consider approaches in the program to remove  
            carbon dioxide from seawater 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
          
          Ocean acidification is caused by a series of chemical reactions  
          that occur as the surface waters of the ocean absorb excess  
          carbon dioxide (CO2) produced by human activities and emitted  
          into the atmosphere. Approximately one-third of all  
          anthropogenic carbon dioxide emissions have been absorbed by the  
          world's oceans. These chemical reactions decrease seawater pH (a  
          process called acidification) and reduce the concentration of  
          dissolved carbonate ions that many marine organisms use to grow  
          their shells and skeletons.

          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"  
          where mass die-offs of fish and shellfish occur.

          In an effort to develop the scientific foundation necessary for  
          coastal managers and other stakeholders to take informed action,  







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          the OPC 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 multi-year,  
          multi-state panel released an extensive report summarizing the  
          major findings, recommendations and actions. 

          According to the report, because of oceanographic circulation  
          dynamics in the North Pacific, California's coastal ecosystems  
          are particularly exposed to impacts of OAH. And as with other  
          mitigation and adaptation aspects of carbon emissions, when it  
          comes to addressing OAH, there is a cost to management inaction.  
          This is because OAH impacts, and the difficulties of addressing  
          them, will only get worse in the foreseeable future.

          In the report, restoring coastal areas with eelgrass was  
          identified as one possible strategy to reduce carbon dioxide in  
          seawater and lessen the effects of ocean acidification and  
          hypoxia.  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 percent 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  







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          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
          
          Source of funding for the proposed program:  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.

          Related/Prior 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 was  
          amended in the Assembly Appropriations Committee and is  
          currently on the Assembly Floor.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

          If funding is made available, this bill will result in the  







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          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.


          SUPPORT:   (Verified5/31/16)


          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
          Monterey Bay Aquarium 
          Ocean Conservancy
          Peninsula Open Space Trust
          Sonoma County Agricultural Preservation and Open Space District


          OPPOSITION:   (Verified5/31/16)


          None received


          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  







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          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.



          Prepared by:Matthew Dumlao / N.R. & W. / (916) 651-4116
          5/31/16 20:45:35


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