BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1363| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 1363 Page 2 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 SB 1363 Page 3 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, SB 1363 Page 4 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 SB 1363 Page 5 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 SB 1363 Page 6 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 SB 1363 Page 7 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 **** END ****