BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                    SB 1363


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          SENATE THIRD READING


          SB  
          1363 (Monning)


          As Amended  August 15, 2016


          Majority vote


          SENATE VOTE:  27-12


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |8-0  |Williams, Cristina    |                    |
          |Resources       |     |Garcia, Gomez,        |                    |
          |                |     |Hadley, Harper,       |                    |
          |                |     |McCarty, Mark Stone,  |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |11-2 |Gonzalez, Bloom,      |Chang, Obernolte    |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Eggman,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Weber, Wood, McCarty  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |








                                                                    SB 1363


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          SUMMARY:  Requires, to the extent funds are available, the 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)Establishes various findings about ocean acidification,  
            hypoxia, and the benefits of eelgrass.


          2)Requires, to the extent funds are available, 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 for  
               eelgrass restoration projects 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.








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


          3)Requires the Natural Resource Agency 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.  




          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          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 (General Fund  
            (GF) or special fund).








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          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  
            extent funds are available.


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


          COMMENTS:  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 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% 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  








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          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." 




          Analysis Prepared by:                                             
          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  0004084