BILL ANALYSIS Ó SB 1363 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1363 (Monning) - As Amended June 29, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: SB 1363 Page 2 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 SB 1363 Page 3 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. SB 1363 Page 4 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) SB 1363 Page 5 319-2081