BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1217
                                                                  Page 1

          Date of Hearing:  June 23, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                      SB 1217 (Leno) - As Amended:  May 27, 2014

           SENATE VOTE  :  25-11
           
          SUBJECT  :  Climate change: preparedness

           SUMMARY  :  Requires the Natural Resources Agency (NRA), every  
          five years, to prepare a climate change strategy (Strategy) that  
          evaluates climate change risks to the state.  Requires the  
          Strategic Growth Council (SGC), every five years, to identify  
          and prioritize climate resiliency projects of major significance  
          that would benefit essential public infrastructure and that  
          would provide near-term and longer-term climate change  
          resiliency to the state.

           EXISTING LAW  :

          1)Authorizes the State Coastal Conservancy to address the  
            impacts and potential impacts of climate change on coastal  
            resources and to award grants to public agencies and nonprofit  
            organizations for this purpose.

          2)Requires a local trustee of granted public trust lands whose  
            annual gross public trust revenues exceed $250,000 to prepare  
            and submit to the State Lands Commission an assessment of how  
            it proposes to address sea level rise.  

          3)Pursuant to Executive Order S-13-08 (Schwarzenegger), ordered  
            NRA, through the Climate Action Team, to coordinate with  
            local, regional, state and federal public and private entities  
            to develop, by 2009, a state Climate Adaptation Strategy.   
            Ordered the strategy to summarize the best known science on  
            climate change impacts to California, assess California's  
            vulnerability to the identified impacts, and outline solutions  
            that can be implemented within and across state agencies to  
            promote resiliency.  

          4)Creates the Office of Planning and Research (OPR) to serve the  
            Governor and his or her Cabinet as staff for long-range  
            planning and research, and to constitute the comprehensive  
            state planning agency.








                                                                  SB 1217
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          5)Creates SGC, which consists of the Director of OPR, the  
            Secretary of NRA, the Secretary for Environmental Protection  
            (EPA), the Secretary of Transportation, the Secretary of  
            California Health and Human Services, the Secretary of  
            Business, Consumer Services, and Housing, the Secretary of  
            Food and Agriculture, and one member of the public to be  
            appointed by the Governor. 

          6)To support the planning and development of sustainable  
            communities, requires SGC to manage and award financial  
            assistance to a city or county for preparing, adopting, and  
            implementing a general plan or general plan element that is  
            designed to reduce greenhouse gas emissions, promote water  
            conservation, reduce automobile use and fuel consumption,  
            encourage greater infill and compact development, protect  
            natural resources and agricultural lands, and revitalize urban  
            and community centers.
           
            THIS BILL :  

          1)Makes findings and declarations regarding sea level rise,  
            including the following:

             a)   According to the Natural Resources Agency's draft  
               report, entitled "Safeguarding California: Reducing Climate  
               Risk," state-of-the-art modeling shows that a single  
               extreme weather event in California could cost  
               approximately $725 billion dollars, with total direct  
               property losses of nearly $400 billion dollars, the effects  
               of which could cause devastating impacts on the state's  
               residents, economy, and natural resources.

             b)   Given the potential impacts and long-term nature of  
               effective planning, California needs to consider and  
               prepare for these climate change impacts now.

             c)   Without appropriate planning to make the state more  
               resilient to the identified impacts of climate change, in  
               addition to addressing the human and social costs of the  
               effects of climate change, California could face billions  
               of dollars per year in direct costs, and expose trillions  
               of dollars of assets in the state to collateral risk.

          2)Requires, on or before January 1, 2019, and every five years  








                                                                  SB 1217
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            thereafter, NRA, in consultation with other appropriate state  
            agencies and departments, to prepare the Strategy that  
            evaluates climate change risks to the state, including sea  
            level rise, drought and flooding, impacts on wildlife  
            habitats, increasing temperatures, increased occurrence of  
            extreme weather events, and increased wildland fire risk.   
            Requires the Strategy to also identify mitigation measures  
            that increase climate resiliency.  Requires NRA to identify  
            possible funding for mitigation measures identified in the  
            Strategy.

          3)Requires, on or before January 1, 2020, and every five years  
            thereafter, SGC, in consultation with NRA, EPA, and other  
            appropriate state agencies and departments, to do all of the  
            following:

             a)   Review the impacts of climate change in the state with  
               regard to capital outlay and public infrastructure  
               projects.

             b)   Identify and prioritize climate resiliency projects of  
               major significance that would benefit essential public  
               infrastructure and that would provide near-term and  
               longer-term climate change resiliency to the state.

             c)   Identify possible funding sources for the climate  
               resiliency projects.

          4)Requires SGC to submit reports on its findings and a  
            description of climate resiliency projects to various state  
            agencies and the Legislature.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:

          1)Cost pressures between $900,000 and $5 million from the  
            General Fund (GF) every five years to prepare a climate risk  
            assessment.

          2)Ongoing annual costs of $150,000 from the GF for the  
            development of a climate strategy.

          3)Ongoing costs of approximately $100,000 from the GF to the SGC  
            to identify and prioritize resiliency projects.









                                                                  SB 1217
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           COMMENTS  :

           1)California's Adaptation Strategy.   California and the world's  
            climate are changing, posing an escalated threat to health,  
            well-being, nature, and property.  Extreme weather, rising sea  
            levels, shifting snowpack, among other impacts will touch  
            every part of peoples' lives in the next century.
             
             In 2008, the Governor ordered NRA, through the Climate Action  
            Team, to coordinate with local, regional, state and federal  
            public and private entities to develop, by 2009, a state  
            Climate Adaptation Strategy.   The Governor's executive order  
            required the strategy to summarize the best known science on  
            climate change impacts to California, assess California's  
            vulnerability to the identified impacts, and outline solutions  
            that can be implemented within and across state agencies to  
            promote resiliency.  As a result, NRA drafted the 2009  
            California Climate Adaptation Strategy.  The strategy  
            represents the work of seven sector-specific working groups  
            led by 12 state agencies, boards, and commissions, and  
            numerous stakeholders.  The strategy proposes a comprehensive  
            set of recommendations designed to inform and guide California  
            decision makers as they begin to develop policies that will  
            protect the state, its residents and its resources from a  
            range of climate change impacts.

            The strategy was updated in 2013 through the report entitled  
            Safeguarding California: Reducing Climate Risk.  According to  
            this report:

               This plan provides a multi-sectoral framework for  
               state efforts to reduce climate risk and is designed  
               to work in conjunction with more in-depth,  
               sector-specific climate planning and risk reduction  
               activities, such as the 2013 State of California  
               Sea-Level Rise Guidance Document and the 2013  
               Preparing California for Extreme Heat Guidance and  
               Recommendations.  The Safeguarding California Plan  
               also fits into a broader suite of coordinated state  
               actions on climate change.  For instance, the state is  
               leading the nation in its effort to reduce emissions  
               that cause climate change, and is also supporting  
               local and regional government actions to address  
               climate change.









                                                                  SB 1217
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            This bill essentially codifies the 2008 executive order and  
            requires it to be updated every five years.  

           2)The State's Capital Outlay and Public Infrastructure Projects  .  
             This bill will require SGC, every five years, to review the  
            impacts of climate change in the state with regard to capital  
            outlay and public infrastructure projects.  This bill also  
            requires SGC to identify and prioritize climate resiliency  
            projects of major significance that would benefit essential  
            public infrastructure and that would provide near-term and  
            longer-term climate change resiliency to the state.

            Committee staff has had discussion with the author's office  
            and received technical advice from the administration to  
            determine the most effective and efficient way to review the  
            impacts of climate change in the state with regard to the  
            state's capital outlay and public infrastructure projects.   
             Given staffing constraints at SGC and the expertise at OPR, it  
            seems appropriate to have OPR develop guidelines that identify  
            conditions necessary for state action to be resilient to  
            climate change.  In addition to this process, the guidelines  
            could be used by state agencies when developing capital outlay  
            budgets.  The committee and the author may wish to consider  
            amendments that incorporate these concepts into the bill.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Public Health Institute
          The Nature Conservancy
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916)  
          319-2092