BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 1386
          Author:   Wolk (D), et al.
          Amended:  8/1/16  
          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

           SENATE FLOOR:  26-7, 5/9/16
           AYES:  Allen, Berryhill, Block, De León, Galgiani, Glazer,  
            Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Pan, Pavley, Roth, Wieckowski, Wolk
           NOES:  Anderson, Huff, Moorlach, Morrell, Nguyen, Stone, Vidak
           NO VOTE RECORDED:  Bates, Beall, Cannella, Fuller, Gaines,  
            Nielsen, Runner

           ASSEMBLY FLOOR:  45-26, 8/18/16 - See last page for vote

           SUBJECT:   Resource conservation:  working and natural lands


          SOURCE:    Defenders of Wildlife


          DIGEST:   This bill declares it to be the policy of the state  
          that the protection and management of natural and working lands  
          is an important strategy in meeting the state's greenhouse gas  
          (GHG) reduction goals. The bill requires all state agencies,  
          departments, boards, and commissions to consider this policy  








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          when revising, adopting, or establishing policies, regulations,  
          expenditures, or grant criteria relating to the protection and  
          management of natural and working lands.


          Assembly Amendments include technical amendments with minor  
          language revisions, further listings of types of natural and  
          working lands, and statements that the bill's actions would be  
          implemented in conjunction with the state's other strategies to  
          meet its greenhouse gas emission goals, the intent is to promote  
          the cooperation of owners of natural and working lands, and that  
          nothing in the bill affects existing local and state agency,  
          department, commission, or board authorities.


          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 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)).









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          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, in conjunction with  
             other relevant state strategies, 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  
            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  








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            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  
            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 were  
            directed towards managing natural and working lands, as  
            defined in this bill.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No








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          According to the Assembly Appropriations Committee, the bill has  
          minor, absorbable costs.


          SUPPORT:   (Verified 8/19/16)


          Defenders of Wildlife (source)
          Association of California Water Agencies
          Audubon California 
          California Central Valley Flood Control Association
          California Climate & Agriculture Network
          California Releaf 
          California State Parks Foundation
          California Tahoe Alliance
          Californians Against Waste 
          Carbon Cycle Institute
          Central Coast Forest Association
          City of Gilroy
          City of Portola
          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
          Mountains Recreation & Conservation Authority
          National Parks Conservation Association 
          Ocean Conservancy
          Pacific Forest Trust
          Placer County
          Placer Land Trust
          San Bernardino Valley Water Conservation District 
          Santa Clara Valley Open Space Authority 
          Save the Redwoods League
          Sequoia Riverlands Trust
          Sierra Business Council








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          Sierra Cascade Land Trust Council
          Sierra Climate Adaptation and Mitigation Partnership
          Sierra Club California
          Sierra Foothill Conservancy
          Sierra Institute for Community and Environment
          Sierra Nevada Alliance
          Sierra Water Workgroup
          Southern Sierra Partnership
          Tahoe Mountain Sports
          Tejon Ranch Conservancy
          The Nature Conservancy
          The Trust for Public Land
          Town of Mammoth Lakes
          Town of Truckee
          Truckee Donner Land Trust
          Rosemarie Smallcombe, Mariposa County Supervisor
          Yolo County Board of Supervisors
          Yolo Habitat Conservancy


          OPPOSITION:   (Verified8/19/16)


          The Large-Scale Solar Association


          ARGUMENTS IN SUPPORT:   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  








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          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."


          ARGUMENTS IN OPPOSITION:   The Large-Scale Solar Association "is  
          concerned that the bill [will] have the unintentionally [sic]  
          impact of elevating the value of natural and working lands above  
          other GHG-reduction land uses, such as renewable energy  
          production." They request new language making it clear that  
          "nothing in the bill is intended to preclude renewable energy  
          development."


          ASSEMBLY FLOOR:  45-26, 8/18/16
          AYES:  Arambula, Atkins, Baker, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,  
            Dodd, Eggman, Cristina Garcia, Eduardo Garcia, Gipson, Gomez,  
            Gonzalez, Gordon, Hadley, Holden, Irwin, Jones-Sawyer, Levine,  
            Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian,  
            Quirk, Ridley-Thomas, Rodriguez, Mark Stone, Thurmond, Ting,  
            Weber, Williams, Wood, Rendon
          NOES:  Achadjian, Travis Allen, Bigelow, Brough, Chang, Chávez,  
            Dahle, Beth Gaines, Gallagher, Gatto, Grove, Harper, Jones,  
            Lackey, Linder, Mathis, Mayes, Melendez, Obernolte, Olsen,  
            Patterson, Salas, Steinorth, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Alejo, Dababneh, Daly, Frazier, Gray, Roger  
            Hernández, Kim, O'Donnell, Santiago










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          Prepared by:Dan Brumbaugh / E.Q. / (916) 651-4108
          8/19/16 19:37:22


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