BILL ANALYSIS
SENATE FOOD and AGRICULTURE COMMITTEE
Senator Dean Florez, Chairman
BILL NO: SB 1241 HEARING: 4/6/10
AUTHOR: Wolk FISCAL: Yes
VERSION: 3/25/10 CONSULTANT: John Chandler
Greenhouse gas emissions reduction: agriculture: grant program.
BACKGROUND AND EXISTING LAW
The California Department of Food and Agriculture (CDFA) is
responsible for promoting, protecting, and furthering the
economy of the state's agricultural industry, including
identifying, studying, and recommending solutions to
agribusiness problems so that adequate supplies of food and
fiber will be available and the industries involved will be
economically sound.
Under the Cannella Environmental Farming Act of 1995, CDFA
established an environmental farming program to provide
incentives to farmers to promote the well-being of ecosystems,
air quality, and wildlife in their habitat. As part of this
act, CDFA was required to form a five-member Scientific Advisory
Panel on Environmental Farming to provide advice and assistance
by reviewing data on the impact of agriculture on the
environment, compiling net environmental impacts agriculture has
on the environment, reviewing, and researching and commenting on
environmental programs to ensure agriculture impacts are
accurately portrayed. The five panel members serve three-year
terms. Three of the panel members are appointed by CDFA, one
member appointed by California Environmental Protection Agency,
and one member appointed by the Natural Resources Agency.
Currently, the Scientific Advisory Panel on Environmental
Farming is not known to be active within CDFA.
California's major initiatives for reducing climate change or
greenhouse gas (GHG) emissions are outlined in Assembly Bill 32
(signed into law 2006), a 2005 Executive Order, and a 2004 ARB
regulation to reduce passenger car GHG emissions. These efforts
are aimed at reducing GHG emissions to 1990 levels by 2020, a
reduction of approximately 30 percent, and then an 80 percent
reduction below 1990 levels by 2050. The main strategies for
making these reductions are outlined in the Scoping Plan.
The Assembly Bill 32 Scoping Plan contains the main strategies
California would use to reduce the greenhouse gases (GHG) that
cause climate change. The Scoping Plan has a range of GHG
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reduction actions which include direct regulations, alternative
compliance mechanisms, monetary and non-monetary incentives,
voluntary actions, market-based mechanisms such as a
cap-and-trade system, and an AB 32 cost of implementation fee
regulation to fund the program. Not all of these programs have
been fully implemented or completed the draft phase.
Governor Arnold Schwarzenegger issued Executive Order S-3-05 on
6/1/2005 that directed the secretary of the California
Environmental Protection Agency (CalEPA) to coordinate with the
secretary of the Business, Transportation and Housing Agency;
secretary of the Department of Food and Agriculture; secretary
of the Resources Agency; Chairperson of the Air Resources Board;
chairperson of the Energy Commission; and president of the
Public Utilities Commission.
The secretary of CalEPA leads this Climate Action Team (CAT)
made up of representatives from the agencies listed above as
well as numerous other boards and departments. The CAT members
work to coordinate statewide efforts to implement global warming
emission reduction programs and the state's Climate Adaptation
Strategy. The CAT is also responsible for reporting on the
progress made toward meeting the statewide greenhouse gas (GHG)
targets that were established in the executive order and further
defined under the Global Warming Solutions Act of 2006 (Assembly
Bill 32).
PROPOSED LAW
SB 1241 would establish a system for CDFA to administer a
percentage of State Air Resources Board (ARB) greenhouse gas
(GHG) emission source funds and federal climate change money to
maximize opportunities to reduce GHG emission in the state's
agricultural sector. Specifically, this bill would do the
following:
Establish definitions for "Environmental cobenefits",
"Farm product", "Processor", "Producer" within the Health
and Safety Code.
Require that upon appropriation by the legislature an
unspecified percentage of funds generated by sources of GHG
emissions, in compliance with ARB regulations, and federal
climate change funds dedicated to California be used to
reduce GHG emissions in California agriculture. These
funds shall be administered by CDFA in consultation with
the California Agriculture Climate Benefits Advisory
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Committee.
Specify that funds available in this bill be used in
grants for any of the following:
o Research and demonstration projects that
reduce GHG emissions, sequester atmospheric carbon,
and provide environmental co-benefits through
agricultural technologies, practices, or farming
systems
o Technical assistance to agriculture producers
in adopting technologies, practices, or farming
systems that reduce GHG emissions or sequester
atmospheric carbon.
o Financial incentives to producers that
generate GHG reductions that may not be economically
viable to demonstrate or test new methods to reduce
GHG emissions or adopt new technology, practice, or
farming systems that reduce GHG emissions.
o Research and demonstration projects, technical
assistance, and financial incentives for processors.
Specify that no more than 25% of available grant funds
may be awarded to projects for
processors.
Establish the California Agriculture Climate Benefits
Advisory Committee (advisory committee) consisting of 11
members appointed by CDFA from nominations from interested
persons or organizations; five producers, two of which
shall be organic producers; three higher education
researchers knowledgeable in agriculture and climate
change; and three nonprofit organizations knowledgeable in
agriculture and climate change. There are also four
ex-officio members, one each from Department of
Conservation, ARB, USDA Natural Resources Conservation
Service, and US EPA Region 9.
Outline a system for members of the committee to
designate their alternates.
Specify a three-year term limit for members of the
committee.
Require CDFA to consider input from the advisory
committee on establishing criteria for grant proposals,
reviewing grant proposals, meeting recommendations on grant
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approval, and making recommendations on implementation.
Require advisory committee members to recuse themselves
from review of grant proposals under specific criteria.
Specify that grant proposals for research and
demonstration projects that include multiple co-applicants
including at least one producer shall receive priority.
Require CDFA and the advisory committee to consider the
use of matching funds that do not exceed 25% of the total
state award for research and demonstration projects and
technical assistance projects.
COMMENTS
1.Proponents of SB 1241 state that California agriculture is not
only threatened by potential impacts of climate change, it
also can play an important role in mitigating the impacts of
climate change. If the state generates revenue from the
auction of GHG emission allowances, SB 1241 would see that an
equitable share will be directed to agriculture practices
reducing GHG and promoting sequestration of carbon. The
California Energy Commission research suggests that some
agricultural practices not only reduce GHG but may also
sequester atmospheric carbon in the soil. With over 400
different crops and livestock produced in California,
additional research and demonstrations are needed specific to
the various crops and growing conditions. SB 1241 would help
provide funding for the needed research and ensure that the
state does not neglect agricultures contributions or
beneficial GHG reductions.
2.SB 1241 would require CDFA to administer an unspecified
percentage of funds from ARB compliance mechanisms adopted by
ARB and paid by sources of GHG emissions, such as cap and
trade fees or auction revenues. The regulations that would
establish the revenue source for SB 1241 are not fully in
place; and therefore, the total amount of funds potentially
available is unclear. Without a clear understanding of any
revenue source for SB 1241, the committee may wish to consider
if this bill is counting its eggs before they hatch?
3.The definitions of "producer" and "farm product" as stated in
SB 1241 would not include timber or any timber product, milk
or any milk product, any aquacultural product, or cattle sold
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to any person who is bonded under the federal Packers and
Stockyards Act. Also "processor" definition would not be all
inclusive of processors of California's agricultural products.
The committee may wish to consider if these definitions
should be amended to include those commodities currently
excluded by definition.
4.Processors would be eligible for up to 25% of the grant funds
available as part of SB 1241. However, the California
Agriculture Climate Benefits Advisory Committee, which is
responsible for advising CDFA on the grant proposals,
approvals, and implementation, does not include representation
from the processing industry. While there is good
representation from producers, researchers, nonprofit
organizations, and government agencies, none of these
representatives are assured to bring understanding of the
processing industry in California. The committee may wish to
consider adding a representative or representatives for the
processors to the advisory committee.
5.The Cannella Environmental Farming Act of 1995 established the
Scientific Advisory Panel on Environmental Farming charged
with assisting federal, state, and local government agencies
on issues relating to air, water, and wildlife habitat.
Currently, this panel is not known to be active. The
committee may wish to consider if the currently authorized
Scientific Advisory Panel on Environmental Farming and the
California Agriculture Climate Benefits Advisory Committee
proposed in SB 1241 would be duplicative.
6.Section 3 of the bill references the only cost of the bill to
local government would be incurred because of a change in a
crime or infraction. After reading the bill, it is unclear
where a new crime or change in a crime penalty is outlined.
The committee may wish to consider if this section is relevant
to the bill.
7.The Senate Rules Committee has doubled referred this bill to
the Senate Environmental Quality Committee as the second
committee of referral. Therefore, if this measure is approved
by this committee, the motion should include an action to
re-refer the bill to the Senate Committee on Environmental
Quality.
SUPPORT
Agriculture and Land-Based Training Association
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California Certified Organic Farmers
California Farmers Union
Californians Against Waste
Center for Food Safety
Center for Land-Based Learning
Central Coast Rangeland Coalition
Central Coast Vineyard Team
Community Alliance With Family Farmers
Earthbound Farm
Ecological Farming Association
Full Belly Farm
Hedgerow Farms
Occidental Arts and Ecology Center
Organic Farming Research Foundation
Pesticide Action Network North America
Rominger Brothers Farms, Inc.
San Diego Roots Sustainable Food Project
Sierra Orchards
Sustainable Agriculture Education
Terry Harrison
Visher Consulting
Wild Farm Alliance
OPPOSITION
None received