BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2329 (Ruskin)
Hearing Date: 08/02/2010 Amended: 08/02/2010
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
AB 2329 (Ruskin), Page 2
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BILL SUMMARY: AB 2329 requires the Natural Resources Agency to
develop a climate change adaptation strategy by 2012 and update
it every three years. The bill establishes in statute the
Climate Action Team and directs it to coordinate state policy to
achieve the state's greenhouse gas emission reduction targets.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Developing adaptation plan $175 $350
$350Various *
Climate Action Team staffing $250 $500
$500Special **
* General Fund, bond funds, and several special funds.
Ultimately, these costs could be offset with fees.
* Air Pollution Control Fund. Ultimately, these costs are likely
to be offset with fees.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Under Executive Orders S-3-05 and S-20-06, the Governor
established goals for the reduction of greenhouse gas emissions
in the state and directed the California Environmental
Protection Agency to coordinate multi-agency efforts to meet
those goals. Under this authority, the Secretary for
Environmental Protection created the Climate Action Team, which
is made up of the heads several state agencies and departments.
Under AB 32 (Nunez, Chapter 488, Statutes of 2006), the Air
Resources Board is required to approve a statewide greenhouse
gas emission limit, such that statewide emissions in 2020 are
equal to emissions in 1990. The Air Resources Board is required
to implement regulatory measures to reduce emissions to meet
that target. Pursuant to AB 32, the Air Resources Board is
currently considering the imposition of a fee on greenhouse gas
emitters to pay for the state's regulatory costs under AB 32.
AB 2329 (Ruskin), Page 2
Pursuant to Executive Order S-13-08, the Natural Resources
Agency prepared the 2009 California Climate Adaptation Strategy.
The document summarizes the current scientific research into
climate change impacts and provides recommendations on how to
manage those impacts.
AB 2329 requires the Natural Resources Agency, in coordination
with other state agencies, to prepare a climate change
adaptation report by June 1, 2012 and update that report every
three years. The plan required under the bill shall follow up on
the findings of the 2009 plan and address progress on the
strategies identified in that plan. The bill specifies that the
required plan will serve as the state's climate adaptation
document for purposes of any federal law requiring such a plan.
Based on the requirements in the bill and the state's experience
developing the previous plan, staff estimates the cost to
develop the new plan and required updates to be about $350,000
per year. These costs would be covered with a variety of funding
sources, including the General Fund, bond funds, and several
special funds. Once the Air Resources Board begins collecting
its greenhouse gas emission fee, those fee revenues could be
used to offset these costs.
AB 2329 establishes the Climate Action Team in statute. The
Climate Action Team is to be chaired by the Secretary for
Environmental Protection, with a specified membership of agency
and department heads. The bill authorizes the Climate Action
Team to establish staff working groups to address issues
relating to specific issues. The bill directs the Climate Action
Team to coordinate state efforts to achieve the state's
greenhouse gas emission reduction targets.
While the Climate Action Team currently operates based on
executive orders and administrative action by the Secretary for
Environmental Protection, AB 2329 puts these requirements into
law. This creates ongoing funding requirements on CalEPA and
other departments (which cannot be undone by a future governor,
unlike executive orders and administrative decisions). Therefore
the bill imposes ongoing costs to the various agencies and
departments.
CalEPA indicates that it currently has five staff positions
supporting activities of the Climate Action Team. Continuing
this level of support will cost about $500,000 per year. These
costs are currently supported from the Air Pollution Control
AB 2329 (Ruskin), Page 2
Fund (which has been supported by several loans from other
special funds). The Air Resources Board is currently considering
the imposition of a fee on greenhouse gas emitters which will
likely support Climate Action Team activities in the future.