BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1363  
          (Monning) - As Amended June 29, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires Ocean Protection Council (OPC), in  
          consultation with the Coastal Conservancy (Conservancy), to  
          establish and administer the Ocean Acidification and Hypoxia  
          Reduction Program (Program).  Specifically, this bill: 


          1)To the extent funds are available, requires the OPC, in  
            consultation with the Conservancy and other relevant entities,  
            to establish and administer the Program to achieve the  
            following goals:










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             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 for eel grass  
               restoration projects during the habitat restoration  
               planning process.


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


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


          FISCAL EFFECT:


          1)Unknown, significant cost pressures, likely in the tens of  
            millions of dollars or more, to fund the goals of the program  
            and provide grants or loans to private entities (GF or special  
            fund).


          2)Unknown, potentially significant costs for OPC to develop and  
            administer the program (GF or special fund.)  However, OPC is  
            only required to develop and administer the program to the  








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            extent funds are available.


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


          





          COMMENTS:


          1)Purpose.  The April 2016 report by the West Coast Ocean  
            Acidification and Hypoxia Science Panel and the Ocean Science  
            Trust, in collaboration with the OPC, "The West Coast Ocean  
            Acidification and Hypoxia Science Panel: Major Findings,  
            recommendations, and Action," indicates that although ocean  
            acidification is a global issue, the California's coast will  
            experience some of the most severe and earliest changes in  
            ocean carbon chemistry. 
            According to the author,  by investing in the restoration of  
            eelgrass habitat on California's coast, this bill provides the  
            co-benefits of ocean acidification mitigation, sea-level rise  
            mitigation, carbon sequestration, water quality improvement,  
            and fish habitat, while also supporting the state's coastal  
            economy.


          2)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.  








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            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 California.  It could also have  
            a profound effect on marine ecosystems leading to reduced  
            biodiversity.


            


          3)The Ocean Protection Council.  The California Ocean Protection  
            Act of 2004 created the OPC.  The OPC is tasked with:  1)  
            coordinating activities of ocean-related state agencies to  
            improve the effectiveness of state efforts to protect ocean  
            resources within existing fiscal limitations; 2) establishing  
            policies to coordinate the collection and sharing of  
            scientific data related to coast and ocean resources between  
            agencies; and 3) identifying and recommending changes in state  
            and federal law and policy.
            


          4)Related Legislation.   AB 2139 (Williams, 2016) authorizes the  
            OPC to develop an ocean acidification and hypoxia science task  
            force to ensure council decision making is supported by the  
            best available science.  This bill is currently pending in the  
            Senate Appropriations Committee.






          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  








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