BILL ANALYSIS
SB 1241
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2009-2010 Regular Session
BILL NO: SB 1241
AUTHOR: Wolk
AMENDED: April 8, 2010
FISCAL: Yes HEARING DATE: April 19, 2010
URGENCY: No CONSULTANT: Caroll
Mortensen
SUBJECT : GREENHOUSE GAS EMISSION REDUCTIONS:
AGRICULTURE
SUMMARY :
Existing law :
1)Under the California Global Warming Solutions Act of 2006
(CGWSA):
a) 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. ARB must adopt regulations for reporting and
verification of GHG emissions, monitoring and compliance
with the program, and achieving GHG emission reductions
from sources or categories of sources by January 1, 2011,
to be operative on January 1, 2012, subject to certain
requirements. (Health and Safety Code 38500 et seq.).
b) Requires ARB to prepare and approve a scoping plan for
achieving the maximum technologically feasible and
cost-effective reductions in GHG emissions from sources
or categories of sources of GHGs by 2020. ARB must
evaluate the total potential costs and total potential
economic and noneconomic benefits of the plan for
reducing GHGs to the state's economy, and public health,
using the best economic models, emission estimation
techniques, and other scientific methods. The plan must
be updated at least once every five years. (38561).
c) Requires ARB to adopt GHG emission limits and emission
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reduction measures by regulation on or before January 1,
2011, and meet certain requirements in adopting the
regulations. ARB may include the use of market-based
mechanisms to comply with these regulations. (38562,
38570).
d) Requires state agencies to consider and implement
strategies to reduce their greenhouse gas emissions.
(38592).
2)Under Executive Order S-3-05, directs the Secretary of the
California Environmental Protection Agency 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. This Climate Action Team works to coordinate
statewide efforts to implement global warming emission
reduction programs and the state's Climate Adaptation
Strategy.
3)Under the Food and Agriculture Code, establishes the
California Department of Food and Agriculture (CDFA) which
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.
This bill , under the CGWSA, adds a new part that:
1) States that the purpose of this new part is to ensure that
California maximizes its opportunities to achieve voluntary
GHG reductions in the state's agricultural section while
also achieving environmental cobenefits.
2) Defines "Environmental cobenefits", "Farm product",
"Processor", and "Producer".
3) Requires that upon appropriation by the Legislature an
unspecified percentage of funds generated by sources of GHG
emissions, in compliance with ARB regulations, and federal
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climate change funds dedicated to California be used to
reduce GHG emissions in California agriculture. These
funds must be administered by CDFA in consultation with the
California Agriculture Climate Benefits Advisory Committee.
4) Establishes the California Agriculture Climate Benefits
Advisory Committee (advisory committee) consisting of 12
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 and one processor. There
are also five ex-officio members, one each from CDFA,
Department of Conservation, ARB, United States Department
of Agriculture, Natural Resources Conservation Service, and
US EPA Region 9.
5) Specifies a three-year term limit for members of the
committee and describes a system for members to designate
their alternates and other administrative requirements for
members.
6) Requires that an unspecified percentage of funds available
from revenue from compliance mechanisms and federal climate
change programs, upon appropriation by the Legislature, be
used in grants for any of the following:
a) Research and demonstration projects that reduce GHG
emissions, sequester atmospheric carbon, and provide
environmental co-benefits through agricultural
technologies, practices, or farming systems.
b) Technical assistance to agriculture producers in
adopting technologies, practices, or farming systems
that reduce GHG emissions or sequester atmospheric
carbon.
c) 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.
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d) Research and demonstration projects, technical
assistance, and financial incentives for processors.
7) Specifies that no more than 25 percent of available grant
funds may be awarded to projects for processors.
8) Requires CDFA to consider input from the advisory committee
on establishing criteria for grant proposals, reviewing
grant proposals, meeting recommendations on grant approval,
and making recommendations on implementation.
9) Specifies that grant proposals for research and
demonstration projects that include multiple co-applicants
including at least one producer shall receive priority.
10)Requires CDFA and the advisory committee to consider the
use of matching funds that do not exceed 25 percent of the
total state award for research and demonstration projects
and technical assistance projects.
11)Makes findings and declarations regarding GHG emissions and
California agriculture.
COMMENTS :
1)Purpose of Bill . According to the author, the CGWSA
recognizes that climate change will have detrimental effects
on some of the state's largest industries, including
agriculture. In a state where water is already scarce,
climate change scenarios predict that water supplies will
become increasingly constrained. Warming temperatures also
threaten to shift the kinds of crops that can be grown in
the state. These and other predicted climate changes could
severely strain important agricultural industries. Although
California agriculture will be impacted by climate change,
it also can help reduce GHG emissions and meet the
objectives of CGWSA.
2)Background . Many of the possible agricultural practices to
reduce GHG emissions and sequester carbon can offer
environmental co-benefits. For example, cover cropping,
improved soil management and conservation tillage can
improve air and water quality, contribute to wildlife
habitat values and reduce GHG emissions and sequester
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carbon.
a) CAT Activities and Agriculture . According to the
Climate Action Team 2009 report, "Agriculture Sector
Write-Up for Public Distribution AB 32 Scoping Plan", the
agriculture sector is unique in that nearly 82 percent of
all GHG emissions from the sector involve biological
processes. Sources which do not involve biological
systems are energy use/fuel combustion and agricultural
burning. These sources account for approximately 5
million metric tons carbon dioxide (MMTCO2E) of the total
28 MMTCO2E emitted by the sector.
The report also notes that " . . .there are gaps in
scientific knowledge and scientific uncertainty in
existing data on greenhouse gas emissions resulting from
the complex biological process of agro-ecosystems making
the identification of real, permanent, additional,
verifiable and enforceable reduction measures difficult
to immediately implement. Research on understanding
these systems, emissions, and rigorous quantification
methodologies are needed to achieve the full reduction
potential from this sector."
Further, the report recognizes that because of the
complex nature of the biological functioning of
agro-ecosystems, emission reduction projects can often
result in multiple co-benefits. Co-benefits include
reductions in criteria and toxic pollutants; reduced
impacts on soil, water, groundwater and watershed
quality; reduced chemical inputs to soil, agro-ecosystem
functioning, soil quality, erosion control and habitat
enhancement; improved animal health, animal productivity;
increased use of renewable fuel sources and reduced
dependence on energy imports.
b) Uncertain Next Steps . As it pertains to this measure,
the CAT report cites that the goals for the agriculture
section in terms of GHG mitigation are very uncertain at
this point. Many uncertainties must be resolved to allow
for the development of potential quantification
methodologies. The report refers to the need for
research to reduce uncertainties related to the
quantification of GHG emissions and potential emission
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reductions including life cycle analysis for soil carbon
sequestration activities. It also lays out areas for
further work including the need for more research,
incentive programs and technical assistance to further
the work in this area. All these efforts are consistent
with the intent of this bill.
3)Amendments Needed . To further the goal of this bill without
influencing yet-to-be-determined policy direction as part of
the California's GHG reduction efforts, the bill should be
amended to direct the Advisory Committee to provide guidance
and direction to the ARB on the issues raised in this bill
and not allocate funds from compliance mechanisms pursuant
to current law.
4)Previous Committee . SB 1241 was approved by the Senate Food
and Agriculture Committee on April 6, 2010 (3-1).
SOURCE : The Agriculture and Climate Change Coalition
SUPPORT : Agriculture and Land-Based Training Association
California Certified Organic Farmers
California Farmers Union
California Resource Recovery Association
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
Dixon Ridge Farms
Earthbound Farm
Ecological Farming Association
Full Belly Farm
Hedgerow Farms
Marin Organic
National Center for Appropriate Technology
Occidental Arts and Ecology Center
Organic Farming Research Foundation
Perini Ranch
Pesticide Action Network North America
Ridge Vineyards
Rominger Brothers Farms, Inc.
Roots of Change
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San Diego Roots Sustainable Food Project
Sierra Orchards
Sustainable Agriculture Education
Union of Concerned Scientists
Visher Consulting
Wild Farm Alliance
1 individual
OPPOSITION : None on file