California Senate Bill SB237 Amended / Bill

 BILL NUMBER: SB 237AMENDED BILL TEXT AMENDED IN SENATE MARCH 29, 2011 INTRODUCED BY Senator Wolk FEBRUARY 9, 2011 An act to add Part 9 (commencing with Section 38700) to Division 25.5 of the Health and Safety Code, relating to greenhouse gas emissions. LEGISLATIVE COUNSEL'S DIGEST SB 237, as amended, Wolk. California Global Warming Solutions Act of 2006: agriculture. The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020, and to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. The state board is authorized to adopt market-based compliance mechanisms, as defined, meeting specified requirements to be used for compliance with those regulations. This bill would  provide that an unspecified percentage of funds generated from the state sale of emission allowances for market-based compliance mechanisms adopted pursuant to the act and funds from federal global warming programs shall be made available, upon appropriation by the Legislature, to fund activities that will reduce greenhouse gas emissions, or adapt to global warming, in the state's agricultural sector   establish eligible uses of funds allocated to the agricultural sector from revenue generated from market-based compliance mechanisms for the reduction of emissions of greenhouse gases pursuant to the act  . The bill would require an unspecified agency to administer these funds for a specified grant program. The bill would provide for the creation of the California Agricultural Climate Benefits Advisory Committee to assist in the implementation of these requirements, as provided. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) California agriculture is a $35 billion per year industry, one of the state's largest and most significant industries. California agriculture supplies 90 percent of the nation's almonds, apricots, raisins, olives, pistachios, walnuts, and wine grapes,  and  more than one-half of the country's fruit and vegetables  , and is the leading producer of dairy products  . (2) Dependent on land and natural resources, California agriculture is uniquely vulnerable to global warming. Global warming poses a serious threat to California agriculture with rising temperatures, constrained water resources, increases in extreme weather events, reduced winter chilling hours, and rising sea levels. (3) California agriculture is also uniquely positioned to provide climate benefits by reducing greenhouse gas emissions. Research funded by the California Energy Commission's Public Interest Energy Research (PIER) program suggests that some agricultural practices will not only reduce greenhouse gas emissions, but they may also help to sequester atmospheric carbon in the soil. Atmospheric carbon sequestration is an important strategy to help meet the state's greenhouse gas emissions targets. (4) To reduce California agriculture's vulnerability to global warming, the industry will have to adapt to changing weather patterns and conditions. As summarized in the 2009 California Climate Change Adaptation Strategy, California will need to employ a diversity of strategies to support an ongoing robust agricultural industry, including farmland protection, increased biodiversity, new crop varieties, and on-farm conservation measures. (5) Steps taken by California agriculture to reduce greenhouse gas emissions, sequester atmospheric carbon, and adapt to global warming can provide other important environmental cobenefits, such as improved air and water quality, water conservation, and enhanced wildlife habitat. (b) It is therefore the intent of the Legislature to enhance the long-term viability of California agriculture by supporting activities that  enhance   the agricultural sector's ability to adapt to climate change and  reduce global warming impacts that may negatively impact it and the rest of the state. (c) It is further the intent of the Legislature that the ____, pursuant to this act, support California agriculture in pursuing voluntary reductions in greenhouse gas emissions, atmospheric carbon sequestration, and adaptation to global warming. SEC. 2. Part 9 (commencing with Section 38700) is added to Division 25.5 of the Health and Safety Code, to read: PART 9. AGRICULTURAL CLIMATE BENEFITS 38700. The purpose of this part is to ensure that California maximizes its opportunities to achieve voluntary greenhouse gas emission reductions and global warming adaptation activities in the state's agricultural sector while also achieving environmental cobenefits. 38701. For the purposes of this part, the following terms have the following meanings: (a) "Advisory committee" means the California Agricultural Climate Benefits Advisory Committee created pursuant to Section 38704. (b) "Environmental cobenefits" means benefits or improvements to the environment, including, but not limited to, water conservation, improved air or water quality, increased soil organic matter, and enhanced wildlife habitat, that occur as a result of reduced greenhouse gas emissions or sequestration of atmospheric carbon. (c) "Processor" means the persons, places, and establishments described in Sections 20019, 32513, and 55407 of the Food and Agricultural Code. (d) "Producer" means the persons described in Sections 55408 and 64507 of the Food and Agricultural Code.  38702. Notwithstanding any other law, not less than ____ percent of funds generated pursuant to either of the following shall be made available, upon appropriation by the Legislature, to fund activities consistent with this part that will reduce greenhouse gas emissions, or adapt to global warming, in the state's agricultural sector: (a) Revenues generated from the state sale of emission allowances for market-based compliance mechanisms adopted pursuant to this division, other than revenues collected for administrative purposes. (b) Funds from federal global warming programs that are dedicated to or otherwise accrue to the state for global warming projects and programs that are consistent with the purposes of this part.   38703. Funds made available pursuant to Section 38702 shall be administered by the ____, in consultation with the advisory committee, and may be used for either of the following: (a) The cost of administering this part. (b)   38702.   (a) The following are eligible uses of moneys allocated to the agricultural sector from revenue generated from market-based compliance mechanisms for the reduction of emissions of greenhouse gases pursuant to this division:   (1)    Grants for any of the following:  (1)   (A)  Research and demonstration projects that reduce greenhouse gas emissions, sequester atmospheric carbon  through   , or assist the agricultural sector to adapt to global warming through the use of  agricultural technologies, practices, or farming systems  , or adapt to global warming, and   that also  provide environmental cobenefits. Eligible recipients may include California producers,  any  California institutions of higher education, state or local agencies, and nonprofit organizations.  Priority shall be given to proposals that include multiple coapplicants and that include at least one agricultural producer in the development and implementation of the project.   (2)   (B)  Technical assistance, which shall include, but not be limited to, development of outreach and training programs to assist agricultural producers in adopting agricultural technologies, practices, or farming systems that reduce greenhouse gas emissions  or sequester atmospheric carbon   ,   sequester atmospheric carbon, or assist producers in adapting to global warming  , and provide environmental cobenefits. Eligible recipients may include  any  California institutions of higher education, state or local agencies, and nonprofit organizations with a demonstrated capacity to deliver technical assistance to California agricultural producers.  (3)   (C)  Financial incentives for California agricultural producers to  do any of the following:   (A) Generate greenhouse gas emission reductions that may not be economically viable as an offset project.   (B) Demonstrate and test new or uncertain methods to reduce greenhouse gas emissions or sequester atmospheric carbon.   (C) Be an early adopter of agricultural technologies, practices, or farming systems that reduce greenhouse gas emissions or sequester atmospheric carbon, or adapt to global warming.   (4)   reduce emissions of greenhouse gases, sequester atmospheric carbon, or adapt to global warming while providing environmental cobenefits.   (D)    Research and demonstration projects, technical assistance and financial incentives for California processors to reduce greenhouse gas emissions from their facilities through energy efficiency, renewable energy, or processing  efficiencies. In   efficiencies, with a preference given to those  recommending and selecting projects from this category, the advisory committee and the ____ shall give preference to those projects that include environmental cobenefits.  (2) The cost of administering this part.   (c)   (b)  Grant funds shall be divided equally across all four grant categories, as described in  subdivision (b)   paragraph (1) of subdivision (a)  , unless the ____ determines, in consultation with the advisory committee, that a different apportionment of funds would best serve the purposes of this part.  (d) Notwithstanding subdivision (c)   (c)    Notwithstanding subdivision (b)  , not more than 25 percent of grant funds shall be awarded to projects for processors as described in  paragraph (4) of subdivision (b)   subparagraph (D) of paragraph (1) of subdivision (a)  .  (d) No matching funds requirement that exceeds 25 percent of total project costs shall be imposed as a condition to the award of a grant for research and demonstration projects or technical assistance pursuant to paragraph (1) of subdivision (a).   38704. (a) Not later than July 1, 2012   38703.   (a)     Not later than three months following allocation of moneys  , the ____ shall establish the California Agricultural Climate Benefits Advisory Committee to achieve the purposes of this part. The ____ shall appoint its members as follows: (1) Five members who are agricultural producers, including at least two certified organic producers. (2) Three members who are researchers with an institution of higher education with expertise in agriculture and climate change. (3) Three members from nonprofit organizations with expertise in climate change and agriculture. (4) One member who is a processor. (5) One ex officio member from each of the following public agencies: (A) Department of Conservation. (B) State Air Resources Board. (C) United States Department of Agriculture, Natural Resources Conservation Service. (D) United States Environmental Protection Agency, Region IX. (E) The Department of Food and Agriculture. (b) Each advisory committee member shall designate his or her alternate, who shall meet the same qualifications identified in subdivision (a) as the member for whom the alternate is serving. An alternate member shall serve at an advisory committee meeting only in the absence of, and shall have the same powers and duties as, the member for whom he or she is designated as an alternate, except for duties and powers as an officer of the committee. The number of alternates present who are not serving in the capacity of a member shall not be considered in determining a quorum. (c) An alternate member may serve at an advisory committee subcommittee meeting only in the absence of, and shall have the same powers and duties as, the member for whom he or she is designated as an alternate, except for duties and powers as a subcommittee chairperson. (d) The members and alternates of the advisory committee shall serve without compensation but shall be reimbursed for the reasonable expenses actually incurred in the performance of their duties, as determined by the advisory committee and approved by the ____. (e) The ____ shall appoint the members of the committee from nominations by interested persons and organizations with expertise in agriculture and climate change. The ____ shall make all feasible efforts to appoint members of the advisory committee who reflect a range of views from agricultural, scientific, environmental protection, and resource conservation interests that will enhance the successful implementation of this part. (f) A member of the committee shall serve for a term of three years, except that the ____ shall appoint the original members of the committee for staggered terms as follows: (1) One member appointed pursuant to paragraphs (1), (2), and (3) of subdivision (a) shall serve for one year. (2) Two members appointed pursuant to paragraph (1), and one member appointed pursuant to paragraphs (2) and (3), of subdivision (a) shall serve for two years. (3) Two members appointed pursuant to paragraph (1), and one member appointed pursuant to paragraphs (2) and (3), of subdivision (a) shall serve for three years. (g) In administering grant funds pursuant to Section 38703, the ____ shall seek and consider input from the advisory committee on matters related to the purposes of this part, including, but not limited to, all of the following: (1) Establishing criteria for grant proposals. (2) Reviewing grant proposals. (3) Recommendations regarding the approval of grant proposals. (4) Recommendations regarding the implementation of this part. (h) Advisory committee members shall recuse themselves from reviewing grant proposals from any grant category in which either of the following conditions are met: (1) For a member appointed pursuant to paragraph (1) , (3), or (4) of subdivision (a), if a person from the same private business or nonprofit organization as the member has applied for a grant pursuant to this part and would directly benefit from the grant funding. (2) For a member appointed pursuant to paragraph (2) of subdivision (a), if a person from the same department or field station as the member has applied for a grant pursuant to this part and would directly benefit from the grant funding. (i) Advisory committee members shall not be required to recuse themselves from reviewing grant proposals in any grant category for which the conditions of subdivision (h) have not been met. (j) The _____ shall designate department staff to provide  appropriate staff services to the advisory committee.   38705. In establishing criteria for grant proposals and awarding grants, the advisory committee and the ____ shall do all of the following: (a) Give priority to proposals for research and demonstration projects, pursuant to paragraph (1) of subdivision (b) of Section 38703, that include multiple coapplicants and that include at least one agricultural producer in the development and implementation of the project. (b) Consider the appropriate use of matching fund requirements for research and demonstration projects and technical assistance projects, pursuant to paragraphs (1) and (2) of subdivision (b) of Section 38703. If matching fund requirements are adopted, the requirements shall not exceed 25 percent of the total award by the state.