BILL NUMBER: SB 1241	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 8, 2010
	AMENDED IN SENATE  MARCH 25, 2010

INTRODUCED BY   Senator Wolk
    (   Coauthor:   Senator   Hancock
  ) 

                        FEBRUARY 19, 2010

   An act to add Part 8 (commencing with Section 38600) to Division
25.5 of the Health and Safety Code, relating to greenhouse gas
emissions.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1241, as amended, Wolk. Greenhouse gas emissions reduction:
agriculture: grant program.
   Existing law sets forth various powers and duties of the Secretary
of Food and Agriculture and the Department of Food and Agriculture.
Existing law, the Cannella Environmental Farming Act of 1995,
requires the department to establish and oversee an environmental
farming program to provide incentives to farmers whose practices
promote the well-being of ecosystems, air quality, and wildlife and
their habitat, and requires the secretary to convene a Scientific
Advisory Panel on Environmental Farming for the purpose of providing
advice and assistance to federal, state, and local government
agencies on issues relating to air, water, and wildlife habitat.
   This bill would require the secretary to administer an unspecified
percentage of certain funds, which are subject to appropriation by
the Legislature, in consultation with the California Agricultural
Climate Benefits Advisory Committee, which the bill would require the
secretary to establish, as specified, to be used for costs of
administration or grants, as provided, to reduce greenhouse gas
emissions in the state's agricultural sector.  Members of the
advisory committee would be required to recuse themselves under
certain circumstances, and the failure to do so would be a
misdemeanor. By creating a crime, this bill would impose a
state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) California agriculture is a $37 billion per year industry, one
of the state's largest and most significant industries. California
agriculture supplies 90 percent of the nation's almonds, apricots,
raisins, olives, pistachios, walnuts, and wine grapes, and more than
one-half of the country's fruit and vegetables.
   (2) Dependent on land and natural resources, California
agriculture is uniquely vulnerable to global warming. Global warming
poses a serious threat to California agriculture with rising
temperatures, increases in extreme weather events, reduced winter
chilling hours, drier conditions, and rising sea levels.
   (3) California agriculture is also uniquely positioned to provide
climate benefits by reducing greenhouse gas emissions. Research
funded by the California Energy Commission's Public Interest Energy
Research (PIER) program suggests that some agricultural practices
will not only reduce greenhouse gas emissions, but they may also help
to sequester atmospheric carbon in the soil. Atmospheric carbon
sequestration is an important strategy to help meet the state's
greenhouse gas emissions targets.
   (4) Steps taken by California agriculture to reduce greenhouse gas
emissions and sequester atmospheric carbon can provide other
important environmental cobenefits, such as improved air and water
quality, water conservation, and enhanced wildlife habitat.
   (b) It is therefore the intent of the Legislature to enhance the
long-term viability of California agriculture by supporting
activities that reduce global warming impacts that may negatively
impact it and the rest of the state.
   (c) It is further the intent of the Legislature that the
Department of Food and Agriculture, pursuant to this act, support
California agriculture in pursuing voluntary reductions in greenhouse
gas emissions and atmospheric carbon sequestration.
  SEC. 2.  Part 8 (commencing with Section 38600) is added to
Division 25.5 of the Health and Safety Code, to read:

      PART 8.  GREENHOUSE GAS EMISSIONS REDUCTION


   38600.  The purpose of this part is to ensure that California
maximizes its opportunities to achieve voluntary greenhouse gas
emission reductions in the state's agricultural sector while also
achieving environmental cobenefits.
   38601.  For the purposes of this part, the following terms have
the following meanings:
   (a) "Advisory committee" means the California Agricultural Climate
Benefits Advisory Committee created pursuant to Section 38604.
   (b) "Environmental cobenefits" means benefits or improvements to
the environment, including, but not limited to, water conservation,
improved air or water quality, increased soil organic matter and
enhanced wildlife habitat, that occur as a result of reduced
greenhouse gas emissions or sequestration of atmospheric 
carbon through agricultural technologies, practices, or farming
systems. 
    (c)     "Farm 
 product" has the same meaning as in Section 55403 of the
Food and Agricultural Code.   carbon.  
   (d) "Processor" has the same meaning as in Section 55407 of

    (c)     "Processor" means the persons,
places, and establishments described in Sections 20019, 32513, and
55407 of  the Food and Agricultural Code. 
   (e) "Producer" has the same meaning as in Section 55408 of

    (d)     "Producer" means the persons
described in Sections 55408 and 64507 of  the Food and
Agricultural Code. 
   (f) 
    (e)  "Secretary" means the Secretary of Food and
Agriculture.
   38602.  Notwithstanding any other law, not less than ____ percent
of funds generated pursuant to either of the following shall be made
available, upon appropriation by the Legislature, to fund activities
consistent with this part that will reduce greenhouse gas emissions
in the state's agricultural sector:
   (a) Revenues generated pursuant to compliance mechanisms adopted
by the State Air Resources Board and paid by the sources of
greenhouse gas emissions regulated pursuant to this division.
   (b) Funds from federal climate change programs that are dedicated
to or otherwise accrue to the state for climate change projects and
programs that are consistent with the purposes of this part.
   38603.  Funds made available pursuant to Section 38602 shall be
administered by the secretary, in consultation with the advisory
committee established pursuant to Section 38604, and may be used for
either of the following:
   (a) The cost of administering this part.
   (b) Grants for any of the following:
   (1) Research and demonstration projects that reduce greenhouse gas
emissions or sequester atmospheric carbon through agricultural
technologies, practices, or farming systems and provide environmental
cobenefits. Eligible recipients may include California producers,
California institutions of higher education, state or local agencies,
and nonprofit organizations.
   (2) Technical assistance, which shall include, but not be limited
to, development of outreach and training programs to assist
agricultural producers in adopting agricultural technologies,
practices, or farming systems that reduce greenhouse gas emissions or
sequester atmospheric carbon and provide environmental cobenefits.
Eligible recipients may include California institutions of higher
education, state or local agencies, and nonprofit organizations with
a demonstrated capacity to deliver technical assistance to California
agricultural producers.
   (3) Financial incentives for California agricultural producers to
do any of the following:
   (A) Generate greenhouse gas emission reductions that may not be
economically viable as an offset project.
   (B) Demonstrate and test new or uncertain methods to reduce
greenhouse gas emissions or sequester atmospheric carbon.
   (C) Be an early adopter of agricultural technologies, practices,
or farming systems that reduce greenhouse gas emissions or sequester
atmospheric carbon.
   (4) Research and demonstration projects, technical assistance and
financial incentives for California processors to reduce greenhouse
gas emissions from their facilities through energy efficiency,
renewable energy, or processing efficiencies. In recommending and
selecting projects from this category, the advisory committee and
secretary shall give preference to those projects that include
environmental cobenefits.
   (c) Grant funds shall be divided equally across all four grant
categories, as described in subdivision (b), unless the secretary
determines, in consultation with the advisory committee established
pursuant to Section 38604, that a different apportionment of funds
would best serve the purposes of this part.
   (d) Notwithstanding subdivision (c), not more than 25 percent of
grant funds shall be awarded to projects for processors as described
in paragraph (4) of subdivision (b).
   38604.  (a) Not later than July 1, 2011, the secretary shall
establish the California Agricultural Climate Benefits Advisory
Committee to achieve the purposes of this part. The secretary shall
appoint its members as follows:
   (1) Five members who are agricultural producers, including at
least two certified organic producers.
   (2) Three members who are researchers with an institution of
higher education with expertise in agriculture and climate change.
   (3) Three members from nonprofit organizations with expertise in
climate change and agriculture. 
   (4) One member who is a processor.  
   (4) 
    (5)  One ex officio member from each of the following
public agencies:
   (A) Department of Conservation.
   (B) State Air Resources Board.
   (C) United States Department of Agriculture, Natural Resources
Conservation Service.
   (D) United States Environmental Protection Agency, Region IX. 

   (E) The Department of Food and Agriculture. 
   (b) Each advisory committee member shall designate his or her
alternate, who shall meet the same qualifications identified in
subdivision (a) as the member for whom the alternate is serving. An
alternate member shall serve at an advisory committee meeting only in
the absence of, and shall have the same powers and duties as, the
member for whom he or she is designated as an alternate, except for
duties and powers as an officer of the committee. The number of
alternates present who are not serving in the capacity of a member
shall not be considered in determining a quorum.
   (c) An alternate member may serve at an advisory committee
subcommittee meeting only in the absence of, and shall have the same
powers and duties as, the member for whom he or she is designated as
an alternate, except for duties and powers as a subcommittee
chairperson.
   (d) The members and alternates of the advisory committee shall
serve without compensation but shall be reimbursed for the reasonable
expenses actually incurred in the performance of their duties, as
determined by the advisory committee and approved by the secretary.
   (e) The secretary shall appoint the members of the committee from
nominations by interested persons and organizations with expertise in
agriculture and climate change. The secretary shall make all
feasible efforts to appoint members of the advisory committee who
reflect a range of views from agricultural, scientific, environmental
protection, and resource conservation interests that will enhance
the successful implementation of this part.
   (f) A member of the committee shall serve for a term of three
years, except that the secretary shall appoint the original members
of the committee for staggered terms as follows:
   (1) One member appointed pursuant to paragraphs (1), (2), and (3)
of subdivision (a) shall serve for one year.
   (2) Two members appointed pursuant to paragraph (1), and one
member appointed pursuant to paragraphs (2) and (3), of subdivision
(a) shall serve for two years.
   (3) Two members appointed pursuant to paragraph (1), and one
member appointed pursuant to paragraphs (2) and (3), of subdivision
(a) shall serve for three years.
   (g) In administering grant funds pursuant to Section 38603, the
secretary shall seek and consider input from the advisory committee
on matters related to the purposes of this part, including, but not
limited to, all of the following:
   (1) Establishing criteria for grant proposals.
   (2) Reviewing grant proposals.
   (3) Recommendations regarding the approval of grant proposals.
   (4) Recommendations regarding the implementation of this part.
   (h) Advisory committee members shall recuse themselves from
reviewing grant proposals from any grant category in which either of
the following conditions are met:
   (1) For a member appointed pursuant to paragraph (1)  or
(3)   , (3), or (4)  of subdivision (a), if a
person from the same private business or nonprofit organization as
the member has applied for a grant pursuant to this part and would
directly benefit from the grant funding.
   (2) For a member appointed pursuant to paragraph (2) of
subdivision (a), if a person from the same department or field
station as the member has applied for a grant pursuant to this part
and would directly benefit from the grant funding.
   (i) Advisory committee members shall not be required to recuse
themselves from reviewing grant proposals in any grant category for
which the conditions of subdivision (h) have not been met.
   (j) The secretary shall designate department staff to provide
appropriate staff services to the advisory committee.
   38605.  In establishing criteria for grant proposals and awarding
grants, the advisory committee and the secretary shall do all of the
following:
   (a) Give priority to proposals for research and demonstration
projects, pursuant to paragraph (1) of subdivision (b) of Section
38603, that include multiple coapplicants and that include at least
one agricultural producer in the development and implementation of
the project.
   (b) Consider the appropriate use of matching funds requirements
for research and demonstration projects and technical assistance
projects, pursuant to paragraphs (1) and (2) of subdivision (b) of
Section 38603, provided that matching funds requirements not exceed
25 percent of the total award by the state. 
  SEC. 3.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.