BILL ANALYSIS                                                                                                                                                                                                    



                                                               AB 2329
                                                                       

                                          
                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 2329
           AUTHOR:     Ruskin
           AMENDED:    June 21, 2010
           FISCAL:     Yes               HEARING DATE:     June 28, 2010
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CLIMATE ACTION TEAM

            SUMMARY  :    
           
            Existing law  :

           1) Under the California Global Warming Solutions Act of 2006  
              (CGWSA), requires the California Air Resources Board (ARB)  
              to determine the 1990 statewide greenhouse gas (GHG)  
              emissions level and approve a statewide GHG emissions limit  
              that is equivalent to that level, to be achieved by 2020.   
              The ARB must adopt regulations requiring reporting and  
              verification of GHG emissions and to monitor and enforce  
              compliance with the program, and must adopt rules and  
              regulations to achieve GHG emission reductions from sources  
              or categories of sources, subject to certain requirements.   
              (Health and Safety Code 38500 et seq.).  The CGWSA  
              provides legislative intent that the Climate Action Team  
              (CAT), established by the Governor to coordinate efforts  
              set forth under Executive Order S-3-05, continue its role  
              in coordinating overall climate policy (38501(i)).

           2) Requires each state agency to annually prepare and submit  
              certain GHG-related information to the Secretary for  
              Environmental Protection, and provides definitions for  
              certain terms.  (Government Code 12890 et seq.).

            This bill  :

           1) Enacts the State Climate Change Action Team Act of 2010  
              that:










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              a)    Establishes the CAT, chaired by the Secretary of  
                 Environmental Protection, to coordinate oversight of  
                 state agency efforts to meet the GHG reduction targets  
                 set under the CGWSA, and to consist of 12 members  
                 representing certain entities (e.g., Natural Resources  
                 Agency, California Air Resources Board Chairperson,  
                 State Energy Resources Conservation and Development  
                 Chairperson).  Multiagency staff working groups may be  
                 formed by the CAT to provide technical support for work  
                 in various sectors (e.g., agriculture, forestry,  
                 energy).

              b)    Requires the CAT, under direction of the Secretary  
                 for Environmental Protection, to coordinate state  
                 climate policy to achieve certain goals (e.g., maximum  
                 feasible and cost-effective reduction of GHG emissions  
                 through implementation by the ARB, development and  
                 implementation of mitigation and adaptation plans).

              c)    Requires the CAT, under direction of the Secretary  
                 for Environmental Protection, to identify and review  
                 activities, funding programs, and revenue of state  
                 agencies that may be coordinated to meet the above  
                 goals; recommend policies, investment strategies, and  
                 priorities to meet those goals; and provide information  
                 to local governments and regional activities that will  
                 assist in also addressing the goals.

              d)    Authorizes each CAT member to appoint an alternate or  
                 designee to attend CAT meetings or hearings.  The CAT  
                 must hold duly noticed public meetings and workshops to  
                 solicit public comments prior to recommending policies,  
                 investment strategies, and priorities.  Meetings must be  
                 held in accordance with the Bagley-Keene Open Meetings  
                 Act.

           2) Enacts the California Climate Vulnerability and Adaptation  
              Plan of 2010 that:

              a)    Requires the Natural Resources Agency, on or before  
                 June 1, 2012, to prepare and submit to the governor a  
                 statewide California Climate Vulnerability and  










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                 Adaptation Plan in coordination with other state  
                 agencies.

              b)    Requires the plan to include the scope, elements, and  
                 policy recommendations from the 2009 California Climate  
                 Adaptation Strategy developed and adopted by the Natural  
                 Resources Agency pursuant to EO S-13-08, and "include  
                 other refinements to those recommendations."  The plan  
                 must also assess progress on strategies identified in  
                 the 2009 plan, and identify and prioritize needed  
                 research, policies, planning, best management practices,  
                 and other actions for the state to continue to adapt to  
                 climate change impacts.

              c)    Requires the plan to be based on best available  
                 science, and identify strategies that protect, conserve,  
                 restore, utilize, enhance, or mimic natural processes  
                 and functions.

              d)    Requires the Natural Resources Agency to review and  
                 revise the plan every three years in coordination with  
                 other state agencies and departments.

              e)    Requires the plan to serve as the state's climate  
                 change adaptation planning document required by any  
                 federal law that makes federal funding contingent on the  
                 plan.

              f)    Requires the Natural Resources Agency to receive  
                 federal funding for certain planning purposes, and to  
                 conduct research on ongoing and expected impacts of  
                 climate change to natural resources.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Effective  
              coordination of existing programs and funding by the state  
              is required to help the state meet its robust greenhouse  
              gas emission targets.  In addition to greenhouse gas  
              emissions reductions, the state must strategically plan to  
              adapt to unavoidable climate change impacts."











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           The author notes that "In the absence of AB 2329, there is  
              nothing in law that requires the state's climate change  
              policy activities to be coordinated across state agencies.   
              Furthermore, the state is not required to develop plans and  
              strategies to address climate change impacts, which are  
              projected to cost the state hundreds of billions of  
              dollars.  AB 2329 ensures that the state has multi-sector  
              climate policy coordination and a plan to address climate  
              change impacts."

            2) Addressing climate change  .  Climate change refers to  
              long-term changes in temperature, precipitation, wind  
              patterns and other parts of earth's climate system.  The  
              Intergovernmental Panel on Climate Change (IPCC) defines  
              climate change as "any change in climate over time, whether  
              due to natural variability or as a result of human  
              activity."  For some time, scientific research increasingly  
              attributes these climate changes to GHGs, especially those  
              generated from use of fossil fuels.  Scientists indicate  
              that the earth is warming faster than any time in the  
              previous 1,000 years, and the 10 warmest years of the last  
              century occurred in the last 15 years.  A rise in  
              temperature accompanied by climate change affects how  
              organisms live, adapt, and survive.

           AB 4420 (Sher) Chapter 1506, Statutes of 1988, required the  
              State Energy Resources Conservation and Development  
              Commission (CEC), in consultation with certain entities, to  
              conduct a study and report to the Legislature and the  
              Governor by June 1, 1990, on how climate change may affect  
              the state's energy supply and demand, economy, environment,  
              agriculture, and water supplies.  The study also required  
              recommendations for avoiding, reducing, and addressing  
              related impacts - and required the CEC to coordinate the  
              study and any research with federal, state, academic, and  
              industry research projects.

           AB 4420 led to two reports:  "The Impacts of Global Warming on  
              California" (1989) and "Climate Change Potential Impacts  
              and Policy Recommendations" (1991).  According to the  
              state's Climate Action Team, "The political discussion  
              generated from these reports helped pave the way for  










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              implementation of policies to address climate change."

           SB 1771 (Sher) Chapter 1018, Statutes of 2000, required the  
              Secretary of the Resources Agency to establish the  
              California Climate Change Registry.  SB 1771 also required  
              the CEC, in consultation with certain entities, to update  
              the GHG emissions inventory and to develop data and  
              information on climate change - and to provide certain  
              entities and interest groups with information on the costs,  
              technical feasibility, and demonstrated effectiveness of  
              methods for reducing or mitigating production of GHGs from  
              in-state sources.  SB 1771 required the inventory to be  
              updated every five years.  SB 527 (Sher) Chapter 769,  
              Statutes of 2001, revised certain California Climate Change  
              Registry responsibilities.

           Governor Schwarzenegger issued Executive Order (EO) S-3-05  
              June 1, 2005, to establish emission reduction targets for  
              the state, require the Secretary for Environmental  
              Protection to coordinate oversight efforts with certain  
              other entities to meet the targets, and set various  
              reporting requirements.

           AB 32 (Nunez/Pavley) Chapter 488, Statutes of 2006, requires  
              the ARB to determine the 1990 statewide greenhouse gas  
              (GHG) emissions level and approve a statewide GHG emissions  
              limit that is equivalent to that level, to be achieved by  
              2020 - and sets related requirements (see Summary above). 
            
           In implementing AB 32, ARB adopted the first list of early  
              action measures June 21, 2007, and adopted an augmented  
              list of early action measures October 25, 2007.  Mandatory  
              reporting regulations for GHGs were adopted and the 2020  
              GHG emissions target were set December 6, 2007.  The  
              Scoping Plan was adopted December 12, 2008, and ARB  
              rulemaking continues in 2009 and 2010.  First early action  
              measures take effect January 1, 2010, major GHG reduction  
              rulemaking concludes January 1, 2011, with rules taking  
              effect January 1, 2012.

            3) Climate Action Team  .  EO S-20-06 indicates that the  
              Secretary created the CAT in June 2005 in order to achieve  










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              the climate change emission reduction targets, and directs  
              the Secretary to work with the CAT, and coordinate with the  
              ARB in ongoing efforts to implement GHG policies of the  
              CGWSA.  EO S-13-08 requires the California Resources  
              Agency, through the Climate Action Team, to coordinate with  
              local, regional, state, and federal entities to develop a  
              Climate Adaptation Strategy by June 30, 2009.

           The Legislature provided intent under the CGWSA for the CAT,  
              established by the Governor to coordinate efforts set forth  
              under EO S-3-05, to continue its role in coordinating  
              overall climate policy.  AB 2329 seeks to codify certain  
              CAT responsibilities.

            4) Costs of inaction .  Delays in acting on climate change  
              matters are expected to result in costs.  According to the  
              "2009 California Climate Adaptation Strategy" by the  
              California Natural Resources Agency in response to  
              Executive Order S-13-2008, "If the state were to take no  
              action to reduce or minimize expected impacts from future  
              climate change, the costs could be severe.  A 2008 report  
              by the University of California, Berkeley and the  
              non-profit organization Next 10 estimates that if no such  
              action is taken in California, damages across sectors would  
              result in 'tens of billions of dollars per year in direct  
              costs' and 'expose trillions of dollars of assets to  
              collateral risk.'  More specifically, the report suggests  
              that of the state's $4 trillion in real estate assets '$2.5  
              trillion is at risk from extreme weather events, sea level  
              rise, and wildfires' with a projected annual price tag of  
              up to $3.9 billion over this century depending on climate  
              scenarios."

            5) Trying again  .  SB 721 (Perata) of 2009, which died on the  
              Senate Appropriations Committee suspense file, also  
              established the CAT and included related provisions.  SB  
              721, in turn, is similar to SB 1760 (Perata) of 2008, which  
              was vetoed.  According to the Governor's veto message:

           "This bill would codify the Climate Action Team (CAT)  
              originally established by Executive Order S-3-05.  The bill  
              also directs CAT, beginning January 1, 2010, to prepare an  










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              annual strategic research, development, and demonstration  
              plan and adopt a biennial climate change impact adaptation  
              and protection plan.

           The CAT, under leadership from the Secretary of the California  
              Environmental Protection Agency (EPA), has successfully  
              coordinated the climate change activities of state agencies  
              for three years.

           As we move forward, they will continue to play a greater role  
              in the implementation of AB 32, the California Global  
              Warming Solutions Act of 2006.  That should be their main  
              focus and to the extent that coordinating research falls  
              within their responsibility, they should do so.  But,  
              placing this responsibility exclusively within CAT's  
              jurisdiction is not appropriate at this time."

            6) Opposition and support concerns  .  Opponents believe that  
              placing coordination roles "in statute severely limits the  
              flexibility and usefulness of these arrangements in the  
              future.  A better approach would be to rely on an existing  
              legislative committee to keep abreast of agency actions,  
              hosting informational hearings and passing specific  
              legislation to reorganize government if necessary to align  
              staff and leadership around important state issues."   
              Opponents further note that "It can be a confusing and  
              costly process for stakeholders to participate in an  
              umbrella 'organization' and the Governor and Legislature  
              should not create such bodies without a real need and a  
              relevant purpose.  The existing [CAT] should be retired  
              when it no longer serves a purpose, not permanently  
              established in statute."

           According to the Coalition for Clean Air, in supporting AB  
              2329, "In order to meet the statewide [GHG] emissions  
              standards promulgated by the [CGWSA], a tremendous  
              collaborative, multi-stakeholder effort is needed.  AB 2329  
              seeks to promote this effort by codifying the [CAT]  
              consisting of representatives from a broad range of state  
              agencies whose expertise and knowledge will greatly benefit  
              our efforts to successfully address climate change.  The  
              extent of potential impacts associated with global climate  










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              change, coupled with the highly technical nature of the  
              problem, make policy coordination absolutely crucial . . .  
              Clearly, an integrated multi-agency, bi-partisan effort is  
              needed for California to successfully address climate  
              change."

            7) Clarification needed  .  Clarification is needed under the  
              State Climate Change Action Team Act of 2010 to:  a) refer  
              to "requirements" rather than "goals" in various  
              provisions; b) describe recommendation, coordination, and  
              oversight responsibilities for state agency climate change  
              activities; and c) provide recommendations to legislative  
              committees.

           Clarification is needed under the California Climate  
              Vulnerability and Adaptation Plan of 2010 provisions to:   
              a) require the agency, rather than the plan, to update the  
              referenced website (38601(f)); b) strike "partner" on page  
              4, line 14, and provide for guidelines to coordinate  
              adaptation activities (38601(g)); c) strike 38601(h)  
              since the plan may not serve as the adaptation planning  
              document required by any federal law if the plan is  
              inconsistent with federal law; d) authorize, rather than  
              require, receipt of federal and state funds (38601(i)); e)  
              define "statewide planning" and "statewide plan"  
              (38601(i)(1)); f) identify the Natural Resources Agency's  
              role in implementing any plan (38601(i)(1)); g) replace  
              "our natural resources" with "the state's natural  
              resources" and provide examples of those resources  
              (38601(i)(2)); and h) provide for public hearings and  
              comments on the plan.

            SOURCE  :        Audubon California, Defenders of Wildlife, The  
                          Nature Conservancy  

           SUPPORT  :       California Council of Land Trusts, Calcoast,  
                          Clean Power Campaign, Coastwalk California,  
                          Coalition for Clean Air, East Bay Municipal  
                          Utility District, Forests Forever, Planning and  
                          Conservation League  

           OPPOSITION  :    California Business Properties Association,  










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                          California Building Industry Association,  
                          California Chamber of Commerce, California  
                          Forestry Association, California Manufacturers  
                          & Technology Association, Western States  
                          Petroleum Association