BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1241 (Wolk)
          
          Hearing Date:  05/27/2010           Amended: 04/22/2010
          Consultant:  Brendan McCarthy   Policy Vote: F&A 3-1, EQ 4-2














































          SB 1241 (Wolk), Page 2


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          ____
          BILL SUMMARY: SB 1241 establishes the California Agricultural  
          Climate Benefits Advisory Committee within the Department of  
          Food and Agriculture. The Advisory Committee is required to  
          advise the Air Resources Board on ways to support agricultural  
          activities that reduce climate change impacts. The Advisory  
          Committee is required to recommend strategies to implement  
          several specified activities relating to agriculture and climate  
          change.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Advisory Committee staff          $150 to $300 per year General  
          /
             support                                              Special  
          *

          * Air Pollution Control Fund. 
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Suspense File.

          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.

          SB 1241 establishes the California Agricultural Climate Benefits  
          Advisory Committee within the Department of Food and  
          Agriculture. The Advisory Committee will have twelve members,  
          including five members who are agricultural producers, three  
          members who are researchers at institutions of higher education,  
          three members from non-profit organizations with expertise on  
          climate change and agricultural issues, and one member who is an  
          agricultural processor.

          The Advisory Committee is required to advise the Air Resources  
          Board on strategies to support agricultural activities that  
          reduce global warming impacts that may negatively impact  







          SB 1241 (Wolk), Page 2


          agriculture. The Advisory Committee is also required to  
          recommend strategies to implement and secure resources for 1)  
          research and demonstration projects that reduce greenhouse gas  
          emissions or sequester carbon through agriculture, 2) technical  
          assistance for agricultural producers to reduce emissions and  
          sequester carbon, and 3) financial incentives for agricultural  
          practices that reduce emissions or sequester carbon.

          The law will become inoperative on July 1, 2013.

          The bill directs the Department to implement the bill within  
          existing resources. However, due to the technical nature of the  
          issues to be considered by the Advisory Committee, staff  
          estimates that one to two additional positions will be necessary  
          to support the Advisory Committee and provide technical  
          analysis. It is not likely these positions could be supported by  
          existing resources. 

          In the 2010-11 budget year, the Air Resources Board will begin  
          levying a fee on certain greenhouse gas emitters to finance the  
          state's implementation of AB 32 (and to pay back loans from  
          special funds to support previous activities). The fees will be  
          based on the estimated expenditures in the enacted budget.  
          Because the requirements of this bill are not likely to be  
          included in the 2010-11 budget, activities required under the  
          bill are likely to be funded from the General Fund. In future  
          years, expenses of the Advisory Committee may be funded from AB  
          32 fees.