BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1386|
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                                   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  








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             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  








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            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  








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            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."










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          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











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          Prepared by:Dan Brumbaugh / E.Q. / (916) 651-4108
          4/27/16 15:57:31


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