BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1386| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1386 Author: Wolk (D) Amended: 3/28/16 Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-0, 4/6/16 AYES: Wieckowski, Gaines, Bates, Hill, Leno, Pavley NO VOTE RECORDED: Jackson SENATE APPROPRIATIONS COMMITTEE: 5-0, 4/25/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NO VOTE RECORDED: Bates, Nielsen SUBJECT: Resource conservation: working and natural lands SOURCE: Defenders of Wildlife DIGEST: This bill requires all relevant state agencies, departments, boards, and commissions to consider the protection and management of natural and working lands when revising, adopting, or establishing policies, regulations, expenditures, or grant criteria relating to the protection and management of natural and working lands. ANALYSIS: Existing law: 1) Requires the Air Resources Board (ARB), under the California Global Warming Solutions Act of 2006 (also known as AB 32), to (a) inventory greenhouse gases (GHGs), (b) determine the 1990 statewide GHG emissions level, (c) approve a statewide GHG emissions limit equivalent to that level to be achieved SB 1386 Page 2 by 2020, (d) implement regulations that achieve the maximum technologically feasible and cost-effective reduction of GHG emissions, and (e) authorize ARB to include market-based compliance mechanisms, including a cap-and-trade program, in the AB 32 regulations after considering the potential for direct, indirect, and cumulative emission impacts from these mechanisms. (Health and Safety Code, §38500 et seq.) 2) Establishes the Greenhouse Gas Reduction Fund (GGRF), under the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act, for proceeds from the cap-and-trade program and authorizes moneys from the GGRF for, among several explicit investment options, "funding to reduce greenhouse gas emissions associated with water use and supply, land and natural resource conservation and management, forestry, and sustainable agriculture." (HSC §39712 (c)(3)). This bill: 1) Declares it to be the policy of the state that the protection and management of natural and working lands, as defined, is a key strategy in meeting the state's GHG reduction goals. 2) Requires all relevant state agencies, departments, boards, and commissions to consider this policy when revising, adopting, or establishing policies, regulations, expenditures, or grant criteria relating to the protection and management of natural and working lands. Background 1)Emissions reductions. Over the last decade, California has built on its history of policies to conserve energy and reduce air pollution to initiate an effort to reduce its GHG emissions to lessen the negative impacts of climate change. Governor Schwarzenegger's Executive Order S-3-05 specified GHG emissions reduction targets of 2000 levels by 2010, 1990 levels by 2020, and 80 percent below 1990 levels by 2050. In 2015, Governor Brown issued Executive Order B-30-15 that SB 1386 Page 3 established an additional intermediate emissions reduction target of 40 percent below 1990 levels by 2030. Because natural and working lands store ("sequester") carbon from the atmosphere in above- and below-ground plant matter, this sequestration contributes to net reductions of carbon emissions. In addition, active sequestration via the biosphere and through various technological means will ultimately be necessary to go beyond reducing the addition of GHGs to actually eliminating carbon dioxide already in the atmosphere. The protection and management of natural and working lands has been recognized as an important part of California's climate initiative in reports by both the current and past administrations. An example of official recognition of the importance of natural carbon sequestration includes the state's 2008 Climate Change Scoping Plan: A Framework for Change. Although the carbon sequestration function of natural and working lands is prone to be variable across geographies and time, a growing body of scientific research is quantifying the range of carbon sequestration values across natural and working lands in California and elsewhere. 2)Investment of cap-and-trade proceeds. Proceeds from the cap-and-trade program are available for appropriations from the GGRF, with legislative direction for those appropriations provided by AB 1532 (J. Pérez, Chapter 807, Statutes of 2012), SB 535 (de León, Chapter 830, Statutes of 2012), and SB 1018 (Senate Budget & Fiscal Review Committee, Chapter 39, Statutes of 2012). SB 1018 requires the Department of Finance to regularly update a three-year investment plan that identifies feasible and cost-effective GHG emission reduction investments to be funded from the cap-and-trade auction proceeds. SB 535 requires minimum percentages of spending for emissions-reducing projects that are specifically located in and otherwise benefit disadvantaged communities. Based on the Governor's proposals, the Legislature has authorized continuous appropriations from the GGRF for a SB 1386 Page 4 number of larger infrastructure and smart growth initiatives. Other proposed appropriations from the GGRF have been decided within the annual budget setting process. Approximately 11 percent (or $345 million out of $3,090 million) of the Governor's total proposed GGRF expenditures for 2016-17 appear to be directed towards managing natural and working lands, as defined in this bill. Comments 1) Purpose of Bill. According to the author, "The Governor identified protection and management of natural and working lands as a significant part of his strategy to reach the state's 2030 emissions target, as these lands can sequester significant amounts of carbon. "The California Department of Forestry and Fire Protection, California Department of Fish and Wildlife, California Department of Food and Agriculture, California Strategic Growth Council, and other state bodies have programs in place to reduce GHG emissions and undertake carbon sequestration on natural and working lands using GGRF dollars. "SB 1386 codifies as state policy the Governor's strategy to protect and manage natural and working lands as a key part of the efforts to achieve our climate change goals. The bill also requires that all relevant state agencies consider this policy when revising, adopting, or establishing policies, regulations, expenditures, and grant criteria relating to the protection and management of natural and working lands. "Not only will SB 1386 support future investment in carbon sequestration projects on California's natural and working lands, it will, at the same time, provide other important public benefits for all communities including the protection and enhancement of wildlife habitat, parks, greenways, and open space; recreational and economic opportunities; production of food and fiber; improvement of air and water quality; and flood protection." SB 1386 Page 5 FISCAL EFFECT: Appropriation: No Fiscal Com.: YesLocal: No According to the Senate Appropriations Committee, minor and absorbable costs to impacted state entities. SUPPORT: (Verified4/25/16) Defenders of Wildlife (source) Audubon California California Central Valley Flood Control Association California Climate & Agriculture Network California ReLeaf California State Parks Foundation California Tahoe Alliance Carbon Cycle Institute Community Alliance with Family Farmers Environment California Greenbelt Alliance Lutheran Office of Public Policy - California Mono Lake Committee Mountain Recreation & Conservation Authority Ocean Conservancy Pacific Forest Trust Santa Clara Valley Open Space Authority Save the Redwoods League Sierra Business Council Sierra Club California The Nature Conservancy The Trust for Public Land OPPOSITION: (Verified4/25/16) None received SB 1386 Page 6 Prepared by:Dan Brumbaugh / E.Q. / (916) 651-4108 4/27/16 15:57:31 **** END ***