BILL ANALYSIS �
SB 237
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2010-2011 Regular Session
BILL NO: SB 237
AUTHOR: Wolk
AMENDED: As Amended March 29, 2011
FISCAL: Yes HEARING DATE: April 4, 2011
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) Establishes the California Agriculture Climate Benefits
Advisory Committee (advisory committee) consisting of 12
members appointed by an unspecified agency from nominations
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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.
4) 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.
5) Establishes eligible uses for moneys, in addition to costs
to administer this part, allocated to the agricultural
sector from revenue generated from market-based compliance
mechanisms for the reduction of emissions of greenhouse
gases for grants as follows:
a) Research and demonstration projects that reduce GHG
emissions, sequester atmospheric carbon, or assist the
agricultural sector to adapt to global warming through
the use of agricultural technologies, practices, or
farming systems and that also provide environmental
cobenefits.
b) Technical assistance to develop outreach and training
programs for agriculture producers to adopt agricultural
technologies, practices or farming systems to reduce GHG
emissions, sequester atmospheric carbon or assist
producers in adapting to global warming while providing
environmental cobenefits.
c) Financial incentives to producers to reduce GHG
emissions, sequester atmospheric carbon or assist
producers in adapting to global warming while providing
environmental cobenefits.
d) Research and demonstration projects, technical
assistance, and financial incentives for processors to
reduce greenhouse gas emissions from their activities
through energy efficiency, renewable energy or
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processing efficiencies.
6) Requires the undetermined agency 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.
7) Specifies that grant proposals for research and
demonstration projects that include multiple co-applicants
including at least one producer shall receive priority.
8) Limits the imposition of a matching fund requirement that
exceeds 25 percent of the total state award for research
and demonstration projects and technical assistance
projects for processors.
9) 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. Much is at stake - California agriculture
contributes $35 billion annually to California's economy and
supplies more than half of the country's fruit and
vegetables.
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. Statewide, the impact of climate change on
California agriculture could hamper food and fiber
production.
At the same time, agriculture can help reduce GHG emissions
and meet California's AB 32 objectives. Research funded by
the California Energy Commission suggests that some
agricultural practices not only reduce GHGs, but may also
sequester atmospheric carbon in the soil.
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2)Background . Many of the possible agricultural practices to
reduce GHG emissions and sequester carbon can offer
environmental cobenefits. 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
carbon.
a) Climate Action Team Activities and Agriculture .
According to the Climate Action Team (CAT) 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 of 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 cobenefits. Cobenefits 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.
3)What's next for CGWSA and Agriculture? The CAT report cites
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that the goals for the agriculture section in terms of GHG
mitigation are very uncertain at this point. Much must be
learned 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
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.
4)Who will implement this new requirement? This bill does not
designate a lead agency that will establish the Advisory
Committee and lead the efforts specified in this bill. In a
similar bill last year (see Previous Legislation below), the
CDFA was the lead agency; however the responsibility could
also be given to the ARB or the Department of Conservation.
The author is working with stakeholders and the
Administration to make that determination.
5)Previous Legislation . In 2009, the Committee heard SB 1241
by the same author. SB 237 is similar to that measure. SB
1241 was held in the Senate Appropriations Committee.
SOURCE : The California Climate and Agriculture Network
SUPPORT : Audubon California
Californians Against Waste
Center for Land-Based Learning
Clean Water Action
Community Alliance with Family Farmers
Ecological Farming Association
Full Belly Farm
Hedgerow Farms
National Center for Appropriate Technology
Organic Farming Research Foundation
Sierra Orchards
Soil Born Farm Urban Agriculture and Education
Project
Wild Farm Alliance
OPPOSITION : None on file
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