BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                    SB 1363


                                                                    Page  1





          Date of Hearing:  June 27, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          SB  
          1363 (Monning) - As Amended May 31, 2016


          SENATE VOTE:  27-12


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


          SUMMARY:  Requires, to the extent funds are available, Ocean  
          Protection Council (OPC), in consultation with the Coastal  
          Conservancy (Conservancy), to establish and administer the Ocean  
          Acidification and Hypoxia Reduction Program (Program).


          EXISTING LAW:   


          1)Establishes OPC, which consists of the Secretary of Natural  
            Resources Agency (NRA), the Secretary for Environmental  
            Protection, the Chair of the State Lands Commission, and two  
            members of the public appointed by the Governor.


          2)Requires OPC to support state agencies' use and sharing of  
            scientific and geospatial information for coastal- and  
            ocean-relevant decision making relating to coastal and ocean  
            ecosystems, including the effects of climate change.








                                                                    SB 1363


                                                                    Page  2







          3)Pursuant to Executive Order S-13-08 (Schwarzenegger), requires  
            NRA, through the Climate Action Team, to coordinate with  
            local, regional, state, federal, and private entities to  
            develop a state Climate Adaptation Strategy (Strategy).   
            Requires the Strategy to summarize the best known science on  
            climate change impacts to California, assess California's  
            vulnerability to the identified impacts, and outline solutions  
            that can be implemented within and across state agencies to  
            promote resiliency. 


          4)Pursuant to Executive Order B-30-15 (Brown), in addition to  
            establishing a 40% Greenhouse Gas (GHG) emission reduction  
            goal by 2030, requires several actions on adaptation,  
            including:

             a)   Requires NRA to update the Strategy every three years  
               and ensure that its provisions are fully implemented.   
               Requires the Strategy to:

               i)     Identify vulnerabilities to climate change by sector  
                 and region, including, at a minimum, the following  
                 sectors:  water, energy, transportation, public health,  
                 agriculture, emergency services, forestry, biodiversity  
                 and habitat, and ocean and coastal resources;

               ii)    Outline primary risks to residents, property,  
                 communities, and natural systems from these  
                 vulnerabilities, and identify priority actions needed to  
                 reduce these risks; and,



               iii)   Identify a lead agency or group of agencies to lead  
                 adaptation efforts in each sector.










                                                                    SB 1363


                                                                    Page  3






             b)   Requires each sector lead to prepare an implementation  
               plan by September 2015 to outline the actions that will be  
               taken as identified in the Strategy, and report back on  
               those actions to the NRA.

             c)   Requires state agencies to take climate change into  
               account in their planning and investment decisions and  
               employ full life-cycle cost accounting to evaluate and  
               compare infrastructure investments and alternatives. 



             d)   Requires state agencies' planning and investment to be  
               guided by the principles of climate preparedness for  
               uncertain climate impacts, protective of vulnerable  
               populations, and prioritization of natural infrastructure  
               solutions.  



             e)   Requires the state's Five-Year Infrastructure Plan to  
               take current and future climate change impacts into account  
               in all infrastructure projects.



             f)   Requires OPR to establish a technical advisory group to  
               help state agencies incorporate climate change impacts into  
               planning and investment decisions.



             g)   Requires the state to continue its rigorous climate  
               change research program focused on understanding the  
               impacts of climate change and how best to prepare and adapt  
               to such impacts.










                                                                    SB 1363


                                                                    Page  4





          5)Requires the NRA to update its climate adaptation strategy,  
            the Safeguarding California Plan (Plan), by July 1, 2017, and  
            every three years thereafter by coordinating adaption  
            activities among lead state agencies in each sector.  


          THIS BILL:


          1)Establishes various findings about ocean acidification,  
            hypoxia, and the benefits of eelgrass.


          2)Requires, to the extent funds are available, OPC, in  
            consultation with the Conservancy, to establish and administer  
            the Program 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 remove carbon dioxide (CO2) and  
               reduce hypoxia. 


             b)   Generating an inventory of locations where conservation  
               or restoration of aquatic habitats, including eelgrass, can  
               mitigate ocean acidification and hypoxia.


             c)   Incorporating consideration of CO2 removal during the  
               habitat restoration planning process.


             d)   Supporting science, monitoring, and coordination to  
               ensure that ocean and coastal policy and management  
               reflects the best science on ocean acidification and  
               hypoxia.









                                                                    SB 1363


                                                                    Page  5






          3)Authorizes OPC to provide grants or loans to be made to  
            private entities for projects that further public purposes  
            consistent with the findings in this bill or the Program. 





          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, if funding is made available, this bill will result  
          in the following costs:





          1)Unknown, but significant costs (special fund) to OPC, to  
            develop and administer the program.

          2)Minor costs (special fund) to the Conservancy for  
            consultation.





          COMMENTS:  
          1)Ocean Acidification.  The ocean absorbs about one-third of the  
            CO2 that is released into the atmosphere each year from the  
            burning of fossil fuels and other human activities.  As the  
            CO2 levels in the atmosphere increase, so do the levels in the  
            ocean.  This changes the chemistry of the water and threatens  
            marine ecosystems and coastal communities dependent on the  
            health of the sea.  Ocean acidification is the lowering of the  
            pH of the ocean and changing of the ocean's chemistry, which  
            can lead to low dissolved oxygen water (hypoxia) in ocean  
            ecosystems.  Ocean acidification will likely have major  
            impacts on the fisheries and aquaculture industries in  








                                                                    SB 1363


                                                                    Page  6





            California.  It could also have a profound effect on marine  
            ecosystems leading to large-scale die-offs and over the long  
            term reduced biodiversity. Record hot temperatures in the  
            Pacific Ocean caused by global warming and a powerful El Niņo  
            have fueled the worst coral bleaching event ever seen in  
            portions of Australia's famed Great Barrier Reef.  Australia's  
            National Coral Bleaching Task Force has surveyed 911 coral  
            reefs by air, and found at least some bleaching on 93 percent  
            of them 


            The Plan includes a sector on Oceans and Coastal Resources and  
            Ecosystems.  That sector released a sector plan that discusses  
            ocean acidification, but there are no specific recommendations  
            for legislative or executive action.  On April 4, 2016, the  
            West Coast Ocean Acidification and Hypoxia Science Panel  
            (Panel) released a synthesis of the current state of  
            scientific knowledge about ocean acidification and hypoxia in  
            California, Oregon, Washington, and British Columbia.  The  
            Panel's final report included what management options might be  
            used to address ocean acidification on the west coast.  In the  
            Panel's final report, it stated, "Seagrass beds, kelps and  
            other macrophytes remove CO2 from seawater and convert it into  
            living tissue.  This CO2 uptake can occur at sufficiently  
            rapid rates to significantly improve water quality for  
            organisms sensitive to carbon chemistry changes." 


            This bill attempts to create demonstration projects for  
            eelgrass beds to provide a better understanding of their  
            ability to reduce CO2 and mitigate ocean acidification and  
            hypoxia.  Both this bill and AB 2139 (Williams, 2016) task OPC  
            with ocean acidification responsibilities.  Some of those  
            responsibilities overlap.  The authors have agreed to work  
            together to address those overlaps. 


          2)Amendments.  This bill authorizes OPC to provide grants for  
            projects that are consistent with the findings of the bill.   








                                                                    SB 1363


                                                                    Page  7





            However, legislative findings are not designed to determine  
            eligibility for funding. The author and committee may wish to  
            consider amendments to remove the authorization of funding for  
            projects consistent with the findings and instead solely  
            provide that authorization for projects consistent with the  
            Program. The author and committee may wish to also consider  
            clarifying which habitat restoration planning processes should  
            incorporate CO2 reduction.



          REGISTERED SUPPORT / OPPOSITION:




          Support


          Audubon California


          Azul


          Big Sur Land Trust


          Black Brant Group


          Bolsa Chica Land Trust
          California Coastal Protection Network
          California League of Conservation Voters


          California Waterfowl
          Clean Water Action
          Defenders of Wildlife








                                                                    SB 1363


                                                                    Page  8







          Monterey Bay Aquarium
          Morro Bay Oyster Company
          Pacific Coast Shellfish Growers Association
          Peninsula Open Space Trust
          Ocean Conservancy
          Sierra Club California


          Sonoma County Agricultural Preservation and Open Space District
          One individual 


          Opposition


          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916)  
          319-2092