BILL ANALYSIS Ķ SB 1363 Page 1 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 Page 2 ------------------------------------------------------------------ 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. SB 1363 Page 3 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). SB 1363 Page 4 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 SB 1363 Page 5 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