BILL ANALYSIS Ó SB 1386 Page 1 Date of Hearing: June 27, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair SB 1386 (Wolk) - As Amended May 2, 2016 SENATE VOTE: 26-7 SUBJECT: Resource conservation: working and natural lands SUMMARY: Declares it to be the policy of the state that the protection and management of natural and working lands is a key strategy in meeting the state's greenhouse gas (GHG) reduction goals. EXISTING LAW: 1)Requires, pursuant to the California Global Warming Solutions Act [AB 32 (Núñez), Chapter 488, Statutes of 2006], the Air Resources Board (ARB) to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2)Pursuant to Executive Order S-13-08 (Schwarzenegger), requires Natural Resources Agency (NRA), through the Climate Action SB 1386 Page 2 Team, to coordinate with local, regional, state, federal, and private entities to develop, by 2009, a state Climate Adaptation Strategy. Requires the strategy to summarize the best known science on climate change impacts to California, assess California's vulnerability to the identified impacts, and outline solutions that can be implemented within and across state agencies to promote resiliency. 3)Pursuant to Executive Order B-30-15 (Brown), in addition to establishing a 40% GHG emission reduction goal by 2030, requires several actions on adaptation including: a) Requires NRA to update the state's climate adaptation strategy every three years and ensure that its provisions are fully implemented. Requires the state's climate adaptation strategy to: i) Identify vulnerabilities to climate change by sector and regions, including, at a minimum, the following sectors: water, energy, transportation, public health, agriculture, emergency services, forestry, biodiversity and habitat, and ocean and coastal resources; ii) Outline primary risks to residents, property, communities, and natural systems from these vulnerabilities, and identify priority actions needed to reduce these risks; and, iii) Identify a lead agency or group of agencies to lead adaptation efforts in each sector. b) Requires each sector lead to prepare an implementation plan by September 2015 to outline the actions that will be taken as identified in state's climate adaptation strategy, SB 1386 Page 3 and report back on those actions to the NRA. c) Requires state agencies to take climate change into account in their planning and investment decisions, and employ full life-cycle cost accounting to evaluate and compare infrastructure investments and alternatives. d) Requires state agencies' planning and investment to be guided by the principles of climate preparedness, flexibility and adaptive approaches for uncertain climate impacts, protective of vulnerable populations, and prioritization of natural infrastructure solutions. e) Requires the state's Five-Year Infrastructure Plan to take current and future climate change impacts into account in all infrastructure projects. f) Requires Office of Planning and Research (OPR) to establish a technical, advisory group to help state agencies incorporate climate change impacts into planning and investment decisions. g) Requires the state to continue its rigorous climate change research program focused on understanding the impacts of climate change and how best to prepare and adapt to such impacts. 4)Requires the NRA to update its climate adaptation strategy, the Safeguarding California Plan (Plan), by July 1, 2017, and every three years thereafter, by coordinating adaption SB 1386 Page 4 activities among lead state agencies in each sector. 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. 3)Defines "working lands" to mean lands used for farming, grazing, or forest production purposes. 4)Defines "natural lands" to means lands consisting of wetlands, watersheds, wildlands, wildlife habitat, or used for recreational purposes. FISCAL EFFECT: According to the Senate Appropriations Committee, minor and absorbable costs to impacted state entities. COMMENTS: SB 1386 Page 5 1)Author's statement: The conservation and management of natural and working lands is a key strategy in California's ongoing efforts to meet its climate change goals given these sectors' significant potential for removing carbon from the air and storing-or sequestering-that carbon in above and below-ground matter. Other strategies include reducing petroleum use in cars and trucks by up to 50 percent and reducing short-lived climate pollutants. 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 undertake carbon sequestration on natural and working lands using GGRF dollars. However, despite the enormous sequestration potential, the protection and management of natural and working lands is not codified as a state policy that would last beyond this Administration. Moreover, programs that oversee projects involving the management of natural and working lands to reduce carbon emissions struggle to receive appropriations and attention. This bill would codify as state policy California's strategy to protect and manage natural and working lands as a key part of the effort to achieve our climate change goals. SB 1386 Page 6 In doing so, SB 1386 will better enable agencies to prioritize the conservation and management of natural and working lands to maximize their carbon sequestration value, including promoting carbon sequestration projects, furthering California's efforts to reduce greenhouse gas emissions and providing important additional public benefits such as the protection and enhancement of wildlife habitat, parks and open space; recreational and economic opportunities; production of food and fiber; improvement of air and water quality; and flood protection. 2)Natural and Working Lands. Three-quarters of California's landmass is comprised of biologically diverse landscapes such as forests, woodlands, shrublands, grasslands and wetlands. These lands can be a major source of sequestration through capturing carbon in soils, plants, and trees. They can also be a source of GHG emissions when drought, disease, wildfires, soil disturbances, conversion, and harvests occur. Through preservation and management, natural and working lands can provide significant GHG reductions. Natural and working lands are also susceptible to climate change impacts of sea level rise, drought, and increased temperatures. ARB has recognized the importance of natural and working lands in meeting the state's GHG reduction targets. In the 2013 Scoping Plan update, ARB included a sector on natural and working lands and a sector on agriculture. These sectors lay out opportunities and challenges for reducing GHG emissions in those sectors. The Scoping Plan also put forth recommended actions including the development of the Forest Climate Plan. The Scoping Plan update identifies funding as critical to address the needs in the natural and working lands sector. SB 1386 Page 7 Listed below are the GGRF funding that these sectors have received to date: a) Agricultural Energy and Operational Efficiency, Department of Food and Agriculture (CDFA), $75 million; b) Water-Energy Efficiency, Department of Water Resources (DWR), $75 million; c) Wetlands and Watershed Restoration, Department of Fish and Wildlife (DFW), $27 million; d) Urban Forestry, Forest Health Restoration, and Reforestation, Department of Forestry and Fire Protection (CAL FIRE), $42 million; and, e) Waste Diversion, Department of Resources Recycling and Recovery (CalRecycle), $31 million. AB 1482 (Gordon), Chapter 603, Statutes of 2015, requires state agencies to maximize, where applicable and feasible, objectives that included promoting the use of natural systems, natural infrastructure, flood plain and wetlands restoration or preservation, urban greening, wildlife corridors, and healthy soils and sustainable agriculture to deal with climate change impacts and adaptation. However, much needs to be done to properly manage our natural and working lands to meet our GHG goals and adapt to climate impacts. 3)This bill. In Governor Brown's 2015 inaugural address, he noted that the management of natural and working land was one SB 1386 Page 8 of his key strategies to reduce GHG emissions to meet the state's GHG reduction goals. This bill puts that policy into statute and directs all relevant state agencies to consider that policy when doing regulations, policy, or funding projects. By doing this, the author and sponsor hope to increase the priority and funding of this policy at the relevant state agencies. The author and committee may wish to consider amending the bill to require all state agencies not just the relevant one to consider these polices and to also consider the co-benefit the protection and management of natural and working lands provide. The author and committee may also wish to consider amending the bill further defining natural lands and add coauthors. REGISTERED SUPPORT / OPPOSITION: Support Defenders of Wildlife (sponsor) Audubon California California Central Valley Flood Control Association California Climate & Agriculture Network California ReLeaf California State Parks Foundation SB 1386 Page 9 California Tahoe Alliance Carbon Cycle Institute Community Alliance with Family Farmers Contra Costa County Board of Supervisors East Bay Regional Park District Endangered Habitats League Environment California Greenbelt Alliance Institute for Ecological Health Lutheran Office of Public Policy - California Mono Lake Committee Mountain Recreation & Conservation Authority Ocean Conservancy SB 1386 Page 10 Pacific Forest Trust San Bernardino Valley Water Conservation District Santa Clara Valley Open Space Authority Save the Redwoods League Sierra Business Council Sierra Climate Adaptation and Mitigation Partnership Sierra Club California Sierra Foothill Conservancy The Nature Conservancy The Trust for Public Land Yolo County Board of Supervisors Opposition California Apartment Association SB 1386 Page 11 California Building Industry Association California Business Properties Association Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092