BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 752                    HEARING DATE: June 28, 2011  
          AUTHOR: Brownley                   URGENCY: No  
          VERSION: May 27, 2011              CONSULTANT: Marie Liu 
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Tidelands and submerged lands: sea level action plan.  
          
          BACKGROUND AND EXISTING LAW
          The State Lands Commission (Commission) is charged with managing 
          and protecting the state's tide and submerged lands for the 
          public trust. With legislative approval, the Commission may 
          grant state tidelands to local governments for their use and 
          maintenance. The Legislature has transferred certain sovereign 
          lands in trust to over 80 public entities including cities, 
          counties, and harbor districts. Examples of these "granted" 
          lands include the ports of Los Angeles, Long Beach, San Diego, 
          San Francisco, Oakland, Richmond, Benicia, and Eureka. The 
          Commission has oversight responsibilities over the trustees to 
          ensure compliance with the grant terms, California law, and the 
          Public Trust Doctrine. 

          PROPOSED LAW
          This bill would require a local trustee of granted public trust 
          lands to prepare a sea level action plan (plan), by July 1, 
          2013, if the local trustee receives more than $250,000 in gross 
          revenues from the granted trust lands. The plans would do the 
          following:
           Use information from the: (1) 2009 California Climate 
            Adaptation Strategy prepared by the Natural Resources Agency, 
            (2) Report on Sea Level Rise Preparedness prepared by the 
            Commission, (3) Sea Level Rise Assessment Report prepared by 
            the National Academy of Sciences, if available, (4) resolution 
            of the California Ocean Protection Council on Sea-Level Rise, 
            and the (5) State of California Sea-Level Rise Interim 
            Guidance Document.
           Assess sea level rise (SLR) impacts on the granted lands.
           Generate maps indicating the areas affected by predicted SLR 
            in the years 2050 and 2100.
           Estimate the fiscal costs of SLR on granted lands, including 
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            repair costs, costs of lost uses, and anticipated mitigation 
            costs.
           Establish strategies to prevent or mitigate damage to existing 
            development and infrastructure and to protect and enhance 
            undeveloped shorelines. Grantees must consider using 
            non-engineered measures to accomplish these strategies where 
            feasible.
           Establish design standards that would avoid impacts to new 
            development and infrastructure. 
           Establish implementation measures and timetables.

          The Commission would be required to exempt a trustee from the 
          requirement to develop a sea level plan or allow the trustee to 
          submit a modified plan if: (1) none of the trustee's granted 
          lands are subject to SLR by 2100, (2) the cost of preparing the 
          plan substantially outweighs the economic and environmental 
          benefits that the plan would identify with respect to SLR on 
          their granted lands, and (3) revenues derived from the granted 
          tidelands and outside funding are insufficient to pay for the 
          cost of developing the plan. Any local trustee subject to this 
          bill would explicitly not be required to implement the SLR plan.

          The bill also makes a number of findings regarding 
          responsibilities of trustees of granted lands, the trustee's 
          fiduciary duties to the control and preservation of the granted 
          lands, and the impacts of climate change and SLR  to the state 
          and port activities.

          ARGUMENTS IN SUPPORT
          State Controller John Chiang, the sponsor of this bill, states, 
          "�This] measure will improve the State's overall understanding 
          of sea level rise readiness and yield valuable input from local 
          granted lands stakeholders on how the State, as a whole, should 
          address this pressing climate issue. Specifically, the bill 
          would require all trustees to estimate the cost, prepare maps, 
          identify strategies, and provide timelines to implement sea 
          level rise action plans. The risks of sea level rise must be 
          assessed as soon as possible. With projected increases of 16" in 
          2050 and 55" by 2100, it won't be long before sea level rise 
          will threaten entire communities. Furthermore, inaction puts the 
          State and nation at grave economic risk. California's coast is 
          crucial to the state and national economy, producing more than a 
          half million jobs in California and two million jobs nationally. 
          Port activities in California generate an estimated $7 billion 
          annually in state and local tax revenues."

          ARGUMENTS IN OPPOSITION
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          The Delta Counties Coalition, states in opposition, "While the 
          �Delta Counties Coalition] certainly supports consideration of 
          the potential for sea level rise in local planning, this 
          measure?does not provide any source of funding for local land 
          use agencies to comply with this measure." 

          The California State Association of Counties, states in 
          opposition to a previous version of the bill, "Although the bill 
          includes language that would exempt a local trustee from this 
          requirement if the revenues derived from its granted public 
          trust lands are not sufficient, we remain concerned about the 
          State Lands Commission's ability to determine if a local entity 
          has the fiscal wherewithal to develop a plan."

          COMMENTS 
           Development vs. Implementation of the Plan  : This bill would 
          require local trustees to create the plan but explicitly not 
          require the trustee to implement that plan. The author contends 
          that there is value to these plans, even if not implemented, so 
          the state can evaluate whether all state lands are planned to be 
          protected in a consistent manner.
           
          Why this bill is not tagged an unfunded local mandate.  The bill 
          makes numerous findings regarding the local trustee's fiduciary 
          responsibility to take reasonable steps to manage and preserve 
          the trust property. The bill states that evaluation of sea level 
          rise impacts on granted lands is directly related to the 
          management of the trust property. Thus, the bill finds that it 
          is appropriate for the trustee to use any revenues received from 
          the trust lands and trust assets to prepare the plan. The 
          Committee should note that this bill only requires the local 
          trustee to create a plan for the granted lands, not all land 
          within the local trustee's jurisdiction. Opponents argue that 
          revenues from the trust lands are already being utilized to 
          protect the public trust on the granted lands, however, the bill 
          does provide a "hardship provision" that allows the commission 
          to exempt or modify a local trustee's requirements should the 
          trustee have insufficient funds. Furthermore, local trustees who 
          receive no or little revenues (up to $250,000) from the trust 
          lands would be automatically exempt from the requirement to 
          prepare the plan. According to a chart provided to the Committee 
          from the author's office, a substantial number of local trustees 
          will be exempt from this bill because of the $250,000 threshold.

           Reports referenced in the bill for sea level rise information:
           Report on Sea Level Rise Preparedness: This report, released by 
          the Commission in December 2009, summarized the efforts of state 
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          agencies, federal agencies, and other coastal states to address 
          SLR. The report also contained the results of a survey to the 
          state's major lessees and grantees to assess the extent which 
          they have considered the potential impacts of SLR on facilities 
          on granted lands. The survey revealed that, "the majority of 
          survey respondents have not yet begun to comprehensively 
          consider the impacts of sea level rise." The report also made 16 
          recommendations for the Commission's consideration including 
          several which are consistent with this bill, specifically:
           Require all new coastal development projects SLR level rises 
            of 16" and 55", depending on the life of the project.
           Adopt engineering design standards that would require major 
            facilities to withstand a defined storm event, such as a 
            100-year storm, taking into account SLR.
           Evaluate structures subject to the ocean environment (wharves, 
            docks, levees, piers, etc.) for structural integrity and 
            potential hazards as sea level rises.

          California Climate Adaptation Strategy: In December 2009, the 
          Resources Agency released the California Climate Adaptation 
          Strategy (CAS), pursuant to Executive Order S-13-2008, which 
          directed the Resources Agency to identify how state agencies can 
          respond to rising temperatures, changing precipitation patterns, 
          SLR, and extreme natural events. The report noted that climate 
          change is already affecting California with increased average 
          temperatures, more extreme hot days, fewer cold nights, shifts 
          in the water cycle, and the lengthening of the growing season. 
          The report stated that not addressing these changes could cause 
          significant economic damages to the state in the trillions of 
          dollars; thus, the state must address climate change challenges 
          with both climate adaptation and mitigation. 

          Resolution of the California Ocean Protection Council on 
          Sea-Level Rise: This resolution recommends that vulnerabilities 
          be assessed over a range of SLR projects, including analysis of 
          the highest SLR values presented in the current state guidance 
          document and not solely use of the lower range of projections. 
          The resolution also recommends avoiding making decisions based 
          on SLR projections that would result in high risk and for state 
          agencies and entities implementing projects on state lands or 
          funded by the state to coordinate and use the same SLR 
          projections when working on the same project or program.  

          State of California Sea-Level Rise Interim Guidance Document: 
          This document establishes the guidelines on how state agencies 
          are to address SLR. Asking local trustees to follow the same 
          guidelines can help assure some statewide consistency in plans. 
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          This document also recommends that agencies consider extreme 
          events and changing shorelines and provides a framework for 
          considering adaptive capacity, consequences, and risk. An update 
          of this guidance document is expected to be completed in early 
          2012.
           
           Sea Level Rise Assessment Report prepared by the National 
          Academy of Sciences: This document is informing the update of 
          the Sea-Level Rise Interim Guidance Documents.
           
          What is the projected SLR in 2050 and 2100?  There is a range of 
          predictions on SLR that California may see in the future, 
          including in the documents cited by this bill. Additionally, the 
          extent of SLR is still being studied, and projections are likely 
          to be modified with this additional information. While this bill 
          does not explicitly specify the increases that the trustees 
          should plan to, the bill does state that the plan should be 
          developed using specific sources that the state is using for its 
          own planning. Also, according to the author, the intention is 
          for the plans to consider a range of SLR values. The committee 
          may find that it is valuable for all trustees to plan to similar 
          ranges of SLR projections to create uniformity in plans.

           Previous related legislation:  Last year, this committee passed a 
          very similar proposal, AB 2698 (Brownley) that was ultimately 
          held on suspense by the Senate Appropriations Committee. The 
          most notable difference between this measure and AB 2598 is the 
          automatic exemption from the requirements to create a plan if a 
          local trustee receives less than $250,000 in revenues from the 
          trust lands. 
               
          SUPPORT
          Audubon
          California Coastal Protection Network
          California Coastkeeper Alliance
          California State Lands Commission
          City and County of San Francisco
          Clean Water Action 
          Coastal Environmental Rights Foundation
          Defenders of Wildlife
          Endangered Habitats League
          John Chiang, California State Controller (sponsor)
          Natural Resources Defense Council
          Ocean Conservancy
          Planning and Conservation League
          San Diego Coastkeeper
          San Francisco Baykeeper
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          Save the Bay 
          Save the Bay
          Sierra Club California
          Surfrider Foundation
          The Nature Conservancy
          Union of Concerned Scientists

          OPPOSITION
          *All opposition letters were received regarding a previous 
          version of the bill, except as noted*
          American Council of Engineering Companies of California
          Automotive Aftermarket Industry Association
          California Automotive Wholesales' Association
          California Business Properties Association
          California Chamber of Commerce
          California League of Food Processors
          California Manufactures & Technology Association
          California State Association of Counties
          Delta Counties Coalition 
          League of California Cities - current version of bill
          Monterey County Board of Supervisors
          Regional Council of Rural Counties
          Western States Petroleum Association
























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