California 2021 2021-2022 Regular Session

California Assembly Bill AB1757 Amended / Bill

Filed 08/28/2022

                    Amended IN  Senate  August 28, 2022 Amended IN  Assembly  May 10, 2022 Amended IN  Assembly  April 27, 2022 Amended IN  Assembly  March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1757Introduced by Assembly Member Haney Members Cristina Garcia and Robert Rivas(Coauthors: Assembly Members Friedman, Haney, Luz Rivas, Muratsuchi, and Stone)(Coauthors: Senators Allen, Becker, Hertzberg, Laird, Limn, Skinner, and Wieckowski)February 02, 2022An act to amend Sections 10723 and 10723.8 of the Water Code, relating to groundwater. An act to add Section 38561.5 to the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTAB 1757, as amended, Haney Cristina Garcia. Groundwater sustainability agency. California Global Warming Solutions Act of 2006: climate goal: natural and working lands.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.This bill would require the Natural Resources Agency, in collaboration with specified entities including the state board and the expert advisory committee described below, to determine on or before January 1, 2024, an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. The bill would require these targets to be integrated into the above-described scoping plan and other state policies. The bill would require the Natural Resources Agency, in consultation with specified agencies including the state board, to review and update the Natural and Working Lands Climate Smart Strategy to achieve these targets. The bill would require the Natural Resources Agency and the state board to jointly establish an expert advisory committee to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of the provisions of the bill. The bill would require the Natural Resources Agency to publish data on its internet website on progress made in achieving these targets, as specified.This bill would require the state board, no later than January 1, 2025, to develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. The bill would require the state board, in estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural working lands, to take into account, where feasible, greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands and the potential impacts of climate change on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.Existing law declares that resource conservation is of fundamental importance to the prosperity and welfare of the people of this state and provides for the organization and operation of resource conservation districts for the purposes of soil and water conservation, among other related purposes.Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. Existing law governs the formation of a groundwater sustainability agency.This bill would authorize a conservation district overlying a groundwater basin in this state to decide to become a groundwater sustainability agency for that basin and would make the law governing the formation of a groundwater sustainability agency applicable to that district.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the death of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.(2) The states forests, agricultural lands, rangelands, wetlands, oceans, and other natural and working landscapes define the beauty and well-being of our state, but tragically are suffering increasing degradation caused by a changing climate.(3) While the states natural and working landscapes confront impacts from climate change, they continue to provide a valuable carbon sequestration service that can help the state meet its long-term climate, public health, environmental, and economic goals.(4) Nations came together to adopt the Paris Agreement under the United Nations Framework Convention on Climate Change, which calls for preventing average global temperatures from rising more than 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels and pursuing efforts to keep warming below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. (5) The state has strong partnerships through the Under2Coalition, with more than 200 jurisdictions around the world, representing 1.3 billion people, committing themselves to meeting the Paris Agreement goals and going beyond them wherever possible.(6) Scientists agree that worldwide carbon pollution must start trending downward immediately, and carbon neutrality, which is the point at which the removal of carbon pollution from the atmosphere meets or exceeds emissions, must be achieved by midcentury.(7) The achievement of carbon neutrality will require both significant reductions in carbon pollution and the removal of carbon dioxide from the atmosphere, including sequestration in forests, soils, and other natural landscapes.(8) California, through two executive orders, Executive Order No. N-82-20 and Executive Order No. B-55-18, has acknowledged that the states natural and working lands have a critical role to play in the states climate strategy and ability to achieve carbon neutrality.(9) Strategies that include the states natural and working lands to address climate change should also support associated values and benefits, such as food and job security, biodiversity, wildlife habitat, and water and air quality protection.(10) The State Air Resources Boards 2017 Climate Change Scoping Plan, prepared pursuant to Section 38561 of the Health and Safety Code, charts the steps to achieve the states greenhouse gas emissions goals, presenting a balanced set of economically viable and technologically feasible actions for carbon reduction.(11) The state has taken the following specific steps to reduce greenhouse gas emissions:(A) Requiring significant reductions of destructive super pollutants, including black carbon and methane.(B) Supporting clean transportation to reduce petroleum use by 45 percent by 2030, as outlined in the State Air Resources Boards 2017 Climate Change Scoping Plan prepared pursuant to Section 38561 of the Health and Safety Code.(C) Setting a goal of 5 million zero-emission vehicles by 2030 in Executive Order No. B-48-18.(D) Proposing to double the reduction in the carbon intensity of fuels through the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations) by 2030.(E) Moving the state to 100 percent clean energy by 2045 pursuant to Section 454.53 of the Public Utilities Code.(F) Requiring the state to double the rate of energy efficiency savings in buildings.(G) Extending and improving the states market-based compliance mechanism, commonly known as cap and trade.(H) Directing the cap-and-trade moneys to greenhouse gas emissions-reducing programs that benefit disadvantaged communities.(I) Developing a Forest Carbon Plan to better manage the states forest land.(J) Establishing a goal of reducing at least five million metric tons of greenhouse gas emissions per year through the development and application of compost on working lands in Section 42649.87 of the Public Resources Code.(b) It is the intent of the Legislature that the state accomplish all of the following:(1) All policies and programs undertaken to achieve carbon neutrality seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.(2) All policies and programs undertaken to achieve carbon neutrality be implemented in a manner that maximizes ecological health and biodiversity and supports climate adaptation, including the protection of the states water supply, water quality, and native plants and animals.(3) State agencies engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve greenhouse gas emissions reductions goals.SEC. 2. Section 38561.5 is added to the Health and Safety Code, to read:38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.SECTION 1.Section 10723 of the Water Code is amended to read:10723.(a)Except as provided in subdivision (c), any local agency or combination of local agencies, or a conservation district, overlying a groundwater basin may decide to become a groundwater sustainability agency for that basin.(b)Before deciding to become a groundwater sustainability agency, and after publication of notice pursuant to Section 6066 of the Government Code, the local agency or agencies, or a conservation district, shall hold a public hearing in the county or counties overlying the basin.(c)(1)Except as provided in paragraph (2), the following agencies created by statute to manage groundwater shall be deemed the exclusive local agencies within their respective statutory boundaries with powers to comply with this part:(A)Alameda County Flood Control and Water Conservation District, Zone 7.(B)Alameda County Water District.(C)Desert Water Agency.(D)Fox Canyon Groundwater Management Agency.(E)Honey Lake Valley Groundwater Management District.(F)Kings River East Groundwater Sustainability Agency.(G)Long Valley Groundwater Management District.(H)Mendocino City Community Services District.(I)Mono County Tri-Valley Groundwater Management District.(J)Monterey Peninsula Water Management District.(K)North Fork Kings Groundwater Sustainability Agency.(L)Ojai Groundwater Management Agency.(M)Orange County Water District.(N)Pajaro Valley Water Management Agency.(O)San Joaquin River Exchange Contractors Groundwater Sustainability Agency.(P)Santa Clara Valley Water District.(Q)Sierra Valley Groundwater Management District.(R)Willow Creek Groundwater Management Agency.(2)An agency identified in paragraph (1) may opt out of being the exclusive groundwater management agency within its statutory boundaries by sending a notice to the department, which shall be posted on the departments internet website within 15 days of receipt. If an agency identified in paragraph (1) opts out of being the exclusive groundwater management agency, any other local agency or combination of local agencies operating within the statutory boundaries of the agency that has opted out may notify the department pursuant to Section 10723.8 of its decision to be the groundwater sustainability agency.(3)A local agency listed in paragraph (1) may comply with this part by meeting the requirements of Section 10733.6 or opting to become a groundwater sustainability agency pursuant to this section. A local agency with authority to implement a basin-specific management plan pursuant to its principal act shall not exercise any authorities granted in this part in a manner inconsistent with any prohibitions or limitations in its principal act unless the governing board of the local agency makes a finding that the agency is unable to sustainably manage the basin without the prohibited authority.(d)The decision of a local agency or combination of agencies, or a conservation district, to become a groundwater sustainability agency shall take effect as provided in Section 10723.8.SEC. 2.Section 10723.8 of the Water Code is amended to read:10723.8.(a)Within 30 days of deciding to become or form a groundwater sustainability agency, the local agency or combination of local agencies, or the conservation district, shall inform the department of its decision and its intent to undertake sustainable groundwater management. The notification shall include the following information, as applicable:(1)The service area boundaries, the boundaries of the basin or portion of the basin the agency intends to manage pursuant to this part, and the other agencies managing or proposing to manage groundwater within the basin.(2)A copy of the resolution forming the new agency.(3)A copy of any new bylaws, ordinances, or new authorities adopted by the local agency.(4)A list of interested parties developed pursuant to Section 10723.2 and an explanation of how their interests will be considered in the development and operation of the groundwater sustainability agency and the development and implementation of the agencys sustainability plan.(b)The department shall post all complete notices received under this section on its internet website within 15 days of receipt.(c)The decision to become a groundwater sustainability agency shall take effect 90 days after the department posts notice under subdivision (b) if no other local agency submits a notification under subdivision (a) of its intent to undertake groundwater management in all or a portion of the same area. If another notification is filed within the 90-day period, the decision shall not take effect unless the other notification is withdrawn or modified to eliminate any overlap in the areas proposed to be managed. The local agencies shall seek to reach agreement to allow prompt designation of a groundwater sustainability agency. If agreement is reached involving a material change from the information in the posted notice, a new notification shall be submitted under subdivision (a) and the department shall post notice under subdivision (b).(d)Except as provided in subdivisions (e) and (f), after the decision to be a groundwater sustainability agency takes effect, the groundwater sustainability agency shall be presumed to be the exclusive groundwater sustainability agency within the area of the basin within the service area of the local agency or conservation district that the local agency or conservation district is managing as described in the notice.(e)A groundwater sustainability agency may withdraw from managing a basin by notifying the department in writing of its intent to withdraw.(f)This section does not preclude the board from taking an action pursuant to Section 10735.6.

 Amended IN  Senate  August 28, 2022 Amended IN  Assembly  May 10, 2022 Amended IN  Assembly  April 27, 2022 Amended IN  Assembly  March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1757Introduced by Assembly Member Haney Members Cristina Garcia and Robert Rivas(Coauthors: Assembly Members Friedman, Haney, Luz Rivas, Muratsuchi, and Stone)(Coauthors: Senators Allen, Becker, Hertzberg, Laird, Limn, Skinner, and Wieckowski)February 02, 2022An act to amend Sections 10723 and 10723.8 of the Water Code, relating to groundwater. An act to add Section 38561.5 to the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTAB 1757, as amended, Haney Cristina Garcia. Groundwater sustainability agency. California Global Warming Solutions Act of 2006: climate goal: natural and working lands.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.This bill would require the Natural Resources Agency, in collaboration with specified entities including the state board and the expert advisory committee described below, to determine on or before January 1, 2024, an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. The bill would require these targets to be integrated into the above-described scoping plan and other state policies. The bill would require the Natural Resources Agency, in consultation with specified agencies including the state board, to review and update the Natural and Working Lands Climate Smart Strategy to achieve these targets. The bill would require the Natural Resources Agency and the state board to jointly establish an expert advisory committee to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of the provisions of the bill. The bill would require the Natural Resources Agency to publish data on its internet website on progress made in achieving these targets, as specified.This bill would require the state board, no later than January 1, 2025, to develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. The bill would require the state board, in estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural working lands, to take into account, where feasible, greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands and the potential impacts of climate change on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.Existing law declares that resource conservation is of fundamental importance to the prosperity and welfare of the people of this state and provides for the organization and operation of resource conservation districts for the purposes of soil and water conservation, among other related purposes.Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. Existing law governs the formation of a groundwater sustainability agency.This bill would authorize a conservation district overlying a groundwater basin in this state to decide to become a groundwater sustainability agency for that basin and would make the law governing the formation of a groundwater sustainability agency applicable to that district.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Senate  August 28, 2022 Amended IN  Assembly  May 10, 2022 Amended IN  Assembly  April 27, 2022 Amended IN  Assembly  March 10, 2022

Amended IN  Senate  August 28, 2022
Amended IN  Assembly  May 10, 2022
Amended IN  Assembly  April 27, 2022
Amended IN  Assembly  March 10, 2022

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 1757

Introduced by Assembly Member Haney Members Cristina Garcia and Robert Rivas(Coauthors: Assembly Members Friedman, Haney, Luz Rivas, Muratsuchi, and Stone)(Coauthors: Senators Allen, Becker, Hertzberg, Laird, Limn, Skinner, and Wieckowski)February 02, 2022

Introduced by Assembly Member Haney Members Cristina Garcia and Robert Rivas(Coauthors: Assembly Members Friedman, Haney, Luz Rivas, Muratsuchi, and Stone)(Coauthors: Senators Allen, Becker, Hertzberg, Laird, Limn, Skinner, and Wieckowski)
February 02, 2022

An act to amend Sections 10723 and 10723.8 of the Water Code, relating to groundwater. An act to add Section 38561.5 to the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1757, as amended, Haney Cristina Garcia. Groundwater sustainability agency. California Global Warming Solutions Act of 2006: climate goal: natural and working lands.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.This bill would require the Natural Resources Agency, in collaboration with specified entities including the state board and the expert advisory committee described below, to determine on or before January 1, 2024, an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. The bill would require these targets to be integrated into the above-described scoping plan and other state policies. The bill would require the Natural Resources Agency, in consultation with specified agencies including the state board, to review and update the Natural and Working Lands Climate Smart Strategy to achieve these targets. The bill would require the Natural Resources Agency and the state board to jointly establish an expert advisory committee to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of the provisions of the bill. The bill would require the Natural Resources Agency to publish data on its internet website on progress made in achieving these targets, as specified.This bill would require the state board, no later than January 1, 2025, to develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. The bill would require the state board, in estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural working lands, to take into account, where feasible, greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands and the potential impacts of climate change on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.Existing law declares that resource conservation is of fundamental importance to the prosperity and welfare of the people of this state and provides for the organization and operation of resource conservation districts for the purposes of soil and water conservation, among other related purposes.Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. Existing law governs the formation of a groundwater sustainability agency.This bill would authorize a conservation district overlying a groundwater basin in this state to decide to become a groundwater sustainability agency for that basin and would make the law governing the formation of a groundwater sustainability agency applicable to that district.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.

Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.

This bill would require the Natural Resources Agency, in collaboration with specified entities including the state board and the expert advisory committee described below, to determine on or before January 1, 2024, an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. The bill would require these targets to be integrated into the above-described scoping plan and other state policies. The bill would require the Natural Resources Agency, in consultation with specified agencies including the state board, to review and update the Natural and Working Lands Climate Smart Strategy to achieve these targets. The bill would require the Natural Resources Agency and the state board to jointly establish an expert advisory committee to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of the provisions of the bill. The bill would require the Natural Resources Agency to publish data on its internet website on progress made in achieving these targets, as specified.

This bill would require the state board, no later than January 1, 2025, to develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. The bill would require the state board, in estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural working lands, to take into account, where feasible, greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands and the potential impacts of climate change on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.

Existing law declares that resource conservation is of fundamental importance to the prosperity and welfare of the people of this state and provides for the organization and operation of resource conservation districts for the purposes of soil and water conservation, among other related purposes.



Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. Existing law governs the formation of a groundwater sustainability agency.



This bill would authorize a conservation district overlying a groundwater basin in this state to decide to become a groundwater sustainability agency for that basin and would make the law governing the formation of a groundwater sustainability agency applicable to that district.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the death of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.(2) The states forests, agricultural lands, rangelands, wetlands, oceans, and other natural and working landscapes define the beauty and well-being of our state, but tragically are suffering increasing degradation caused by a changing climate.(3) While the states natural and working landscapes confront impacts from climate change, they continue to provide a valuable carbon sequestration service that can help the state meet its long-term climate, public health, environmental, and economic goals.(4) Nations came together to adopt the Paris Agreement under the United Nations Framework Convention on Climate Change, which calls for preventing average global temperatures from rising more than 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels and pursuing efforts to keep warming below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. (5) The state has strong partnerships through the Under2Coalition, with more than 200 jurisdictions around the world, representing 1.3 billion people, committing themselves to meeting the Paris Agreement goals and going beyond them wherever possible.(6) Scientists agree that worldwide carbon pollution must start trending downward immediately, and carbon neutrality, which is the point at which the removal of carbon pollution from the atmosphere meets or exceeds emissions, must be achieved by midcentury.(7) The achievement of carbon neutrality will require both significant reductions in carbon pollution and the removal of carbon dioxide from the atmosphere, including sequestration in forests, soils, and other natural landscapes.(8) California, through two executive orders, Executive Order No. N-82-20 and Executive Order No. B-55-18, has acknowledged that the states natural and working lands have a critical role to play in the states climate strategy and ability to achieve carbon neutrality.(9) Strategies that include the states natural and working lands to address climate change should also support associated values and benefits, such as food and job security, biodiversity, wildlife habitat, and water and air quality protection.(10) The State Air Resources Boards 2017 Climate Change Scoping Plan, prepared pursuant to Section 38561 of the Health and Safety Code, charts the steps to achieve the states greenhouse gas emissions goals, presenting a balanced set of economically viable and technologically feasible actions for carbon reduction.(11) The state has taken the following specific steps to reduce greenhouse gas emissions:(A) Requiring significant reductions of destructive super pollutants, including black carbon and methane.(B) Supporting clean transportation to reduce petroleum use by 45 percent by 2030, as outlined in the State Air Resources Boards 2017 Climate Change Scoping Plan prepared pursuant to Section 38561 of the Health and Safety Code.(C) Setting a goal of 5 million zero-emission vehicles by 2030 in Executive Order No. B-48-18.(D) Proposing to double the reduction in the carbon intensity of fuels through the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations) by 2030.(E) Moving the state to 100 percent clean energy by 2045 pursuant to Section 454.53 of the Public Utilities Code.(F) Requiring the state to double the rate of energy efficiency savings in buildings.(G) Extending and improving the states market-based compliance mechanism, commonly known as cap and trade.(H) Directing the cap-and-trade moneys to greenhouse gas emissions-reducing programs that benefit disadvantaged communities.(I) Developing a Forest Carbon Plan to better manage the states forest land.(J) Establishing a goal of reducing at least five million metric tons of greenhouse gas emissions per year through the development and application of compost on working lands in Section 42649.87 of the Public Resources Code.(b) It is the intent of the Legislature that the state accomplish all of the following:(1) All policies and programs undertaken to achieve carbon neutrality seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.(2) All policies and programs undertaken to achieve carbon neutrality be implemented in a manner that maximizes ecological health and biodiversity and supports climate adaptation, including the protection of the states water supply, water quality, and native plants and animals.(3) State agencies engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve greenhouse gas emissions reductions goals.SEC. 2. Section 38561.5 is added to the Health and Safety Code, to read:38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.SECTION 1.Section 10723 of the Water Code is amended to read:10723.(a)Except as provided in subdivision (c), any local agency or combination of local agencies, or a conservation district, overlying a groundwater basin may decide to become a groundwater sustainability agency for that basin.(b)Before deciding to become a groundwater sustainability agency, and after publication of notice pursuant to Section 6066 of the Government Code, the local agency or agencies, or a conservation district, shall hold a public hearing in the county or counties overlying the basin.(c)(1)Except as provided in paragraph (2), the following agencies created by statute to manage groundwater shall be deemed the exclusive local agencies within their respective statutory boundaries with powers to comply with this part:(A)Alameda County Flood Control and Water Conservation District, Zone 7.(B)Alameda County Water District.(C)Desert Water Agency.(D)Fox Canyon Groundwater Management Agency.(E)Honey Lake Valley Groundwater Management District.(F)Kings River East Groundwater Sustainability Agency.(G)Long Valley Groundwater Management District.(H)Mendocino City Community Services District.(I)Mono County Tri-Valley Groundwater Management District.(J)Monterey Peninsula Water Management District.(K)North Fork Kings Groundwater Sustainability Agency.(L)Ojai Groundwater Management Agency.(M)Orange County Water District.(N)Pajaro Valley Water Management Agency.(O)San Joaquin River Exchange Contractors Groundwater Sustainability Agency.(P)Santa Clara Valley Water District.(Q)Sierra Valley Groundwater Management District.(R)Willow Creek Groundwater Management Agency.(2)An agency identified in paragraph (1) may opt out of being the exclusive groundwater management agency within its statutory boundaries by sending a notice to the department, which shall be posted on the departments internet website within 15 days of receipt. If an agency identified in paragraph (1) opts out of being the exclusive groundwater management agency, any other local agency or combination of local agencies operating within the statutory boundaries of the agency that has opted out may notify the department pursuant to Section 10723.8 of its decision to be the groundwater sustainability agency.(3)A local agency listed in paragraph (1) may comply with this part by meeting the requirements of Section 10733.6 or opting to become a groundwater sustainability agency pursuant to this section. A local agency with authority to implement a basin-specific management plan pursuant to its principal act shall not exercise any authorities granted in this part in a manner inconsistent with any prohibitions or limitations in its principal act unless the governing board of the local agency makes a finding that the agency is unable to sustainably manage the basin without the prohibited authority.(d)The decision of a local agency or combination of agencies, or a conservation district, to become a groundwater sustainability agency shall take effect as provided in Section 10723.8.SEC. 2.Section 10723.8 of the Water Code is amended to read:10723.8.(a)Within 30 days of deciding to become or form a groundwater sustainability agency, the local agency or combination of local agencies, or the conservation district, shall inform the department of its decision and its intent to undertake sustainable groundwater management. The notification shall include the following information, as applicable:(1)The service area boundaries, the boundaries of the basin or portion of the basin the agency intends to manage pursuant to this part, and the other agencies managing or proposing to manage groundwater within the basin.(2)A copy of the resolution forming the new agency.(3)A copy of any new bylaws, ordinances, or new authorities adopted by the local agency.(4)A list of interested parties developed pursuant to Section 10723.2 and an explanation of how their interests will be considered in the development and operation of the groundwater sustainability agency and the development and implementation of the agencys sustainability plan.(b)The department shall post all complete notices received under this section on its internet website within 15 days of receipt.(c)The decision to become a groundwater sustainability agency shall take effect 90 days after the department posts notice under subdivision (b) if no other local agency submits a notification under subdivision (a) of its intent to undertake groundwater management in all or a portion of the same area. If another notification is filed within the 90-day period, the decision shall not take effect unless the other notification is withdrawn or modified to eliminate any overlap in the areas proposed to be managed. The local agencies shall seek to reach agreement to allow prompt designation of a groundwater sustainability agency. If agreement is reached involving a material change from the information in the posted notice, a new notification shall be submitted under subdivision (a) and the department shall post notice under subdivision (b).(d)Except as provided in subdivisions (e) and (f), after the decision to be a groundwater sustainability agency takes effect, the groundwater sustainability agency shall be presumed to be the exclusive groundwater sustainability agency within the area of the basin within the service area of the local agency or conservation district that the local agency or conservation district is managing as described in the notice.(e)A groundwater sustainability agency may withdraw from managing a basin by notifying the department in writing of its intent to withdraw.(f)This section does not preclude the board from taking an action pursuant to Section 10735.6.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. (a) The Legislature finds and declares all of the following:(1) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the death of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.(2) The states forests, agricultural lands, rangelands, wetlands, oceans, and other natural and working landscapes define the beauty and well-being of our state, but tragically are suffering increasing degradation caused by a changing climate.(3) While the states natural and working landscapes confront impacts from climate change, they continue to provide a valuable carbon sequestration service that can help the state meet its long-term climate, public health, environmental, and economic goals.(4) Nations came together to adopt the Paris Agreement under the United Nations Framework Convention on Climate Change, which calls for preventing average global temperatures from rising more than 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels and pursuing efforts to keep warming below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. (5) The state has strong partnerships through the Under2Coalition, with more than 200 jurisdictions around the world, representing 1.3 billion people, committing themselves to meeting the Paris Agreement goals and going beyond them wherever possible.(6) Scientists agree that worldwide carbon pollution must start trending downward immediately, and carbon neutrality, which is the point at which the removal of carbon pollution from the atmosphere meets or exceeds emissions, must be achieved by midcentury.(7) The achievement of carbon neutrality will require both significant reductions in carbon pollution and the removal of carbon dioxide from the atmosphere, including sequestration in forests, soils, and other natural landscapes.(8) California, through two executive orders, Executive Order No. N-82-20 and Executive Order No. B-55-18, has acknowledged that the states natural and working lands have a critical role to play in the states climate strategy and ability to achieve carbon neutrality.(9) Strategies that include the states natural and working lands to address climate change should also support associated values and benefits, such as food and job security, biodiversity, wildlife habitat, and water and air quality protection.(10) The State Air Resources Boards 2017 Climate Change Scoping Plan, prepared pursuant to Section 38561 of the Health and Safety Code, charts the steps to achieve the states greenhouse gas emissions goals, presenting a balanced set of economically viable and technologically feasible actions for carbon reduction.(11) The state has taken the following specific steps to reduce greenhouse gas emissions:(A) Requiring significant reductions of destructive super pollutants, including black carbon and methane.(B) Supporting clean transportation to reduce petroleum use by 45 percent by 2030, as outlined in the State Air Resources Boards 2017 Climate Change Scoping Plan prepared pursuant to Section 38561 of the Health and Safety Code.(C) Setting a goal of 5 million zero-emission vehicles by 2030 in Executive Order No. B-48-18.(D) Proposing to double the reduction in the carbon intensity of fuels through the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations) by 2030.(E) Moving the state to 100 percent clean energy by 2045 pursuant to Section 454.53 of the Public Utilities Code.(F) Requiring the state to double the rate of energy efficiency savings in buildings.(G) Extending and improving the states market-based compliance mechanism, commonly known as cap and trade.(H) Directing the cap-and-trade moneys to greenhouse gas emissions-reducing programs that benefit disadvantaged communities.(I) Developing a Forest Carbon Plan to better manage the states forest land.(J) Establishing a goal of reducing at least five million metric tons of greenhouse gas emissions per year through the development and application of compost on working lands in Section 42649.87 of the Public Resources Code.(b) It is the intent of the Legislature that the state accomplish all of the following:(1) All policies and programs undertaken to achieve carbon neutrality seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.(2) All policies and programs undertaken to achieve carbon neutrality be implemented in a manner that maximizes ecological health and biodiversity and supports climate adaptation, including the protection of the states water supply, water quality, and native plants and animals.(3) State agencies engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve greenhouse gas emissions reductions goals.

SECTION 1. (a) The Legislature finds and declares all of the following:(1) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the death of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.(2) The states forests, agricultural lands, rangelands, wetlands, oceans, and other natural and working landscapes define the beauty and well-being of our state, but tragically are suffering increasing degradation caused by a changing climate.(3) While the states natural and working landscapes confront impacts from climate change, they continue to provide a valuable carbon sequestration service that can help the state meet its long-term climate, public health, environmental, and economic goals.(4) Nations came together to adopt the Paris Agreement under the United Nations Framework Convention on Climate Change, which calls for preventing average global temperatures from rising more than 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels and pursuing efforts to keep warming below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. (5) The state has strong partnerships through the Under2Coalition, with more than 200 jurisdictions around the world, representing 1.3 billion people, committing themselves to meeting the Paris Agreement goals and going beyond them wherever possible.(6) Scientists agree that worldwide carbon pollution must start trending downward immediately, and carbon neutrality, which is the point at which the removal of carbon pollution from the atmosphere meets or exceeds emissions, must be achieved by midcentury.(7) The achievement of carbon neutrality will require both significant reductions in carbon pollution and the removal of carbon dioxide from the atmosphere, including sequestration in forests, soils, and other natural landscapes.(8) California, through two executive orders, Executive Order No. N-82-20 and Executive Order No. B-55-18, has acknowledged that the states natural and working lands have a critical role to play in the states climate strategy and ability to achieve carbon neutrality.(9) Strategies that include the states natural and working lands to address climate change should also support associated values and benefits, such as food and job security, biodiversity, wildlife habitat, and water and air quality protection.(10) The State Air Resources Boards 2017 Climate Change Scoping Plan, prepared pursuant to Section 38561 of the Health and Safety Code, charts the steps to achieve the states greenhouse gas emissions goals, presenting a balanced set of economically viable and technologically feasible actions for carbon reduction.(11) The state has taken the following specific steps to reduce greenhouse gas emissions:(A) Requiring significant reductions of destructive super pollutants, including black carbon and methane.(B) Supporting clean transportation to reduce petroleum use by 45 percent by 2030, as outlined in the State Air Resources Boards 2017 Climate Change Scoping Plan prepared pursuant to Section 38561 of the Health and Safety Code.(C) Setting a goal of 5 million zero-emission vehicles by 2030 in Executive Order No. B-48-18.(D) Proposing to double the reduction in the carbon intensity of fuels through the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations) by 2030.(E) Moving the state to 100 percent clean energy by 2045 pursuant to Section 454.53 of the Public Utilities Code.(F) Requiring the state to double the rate of energy efficiency savings in buildings.(G) Extending and improving the states market-based compliance mechanism, commonly known as cap and trade.(H) Directing the cap-and-trade moneys to greenhouse gas emissions-reducing programs that benefit disadvantaged communities.(I) Developing a Forest Carbon Plan to better manage the states forest land.(J) Establishing a goal of reducing at least five million metric tons of greenhouse gas emissions per year through the development and application of compost on working lands in Section 42649.87 of the Public Resources Code.(b) It is the intent of the Legislature that the state accomplish all of the following:(1) All policies and programs undertaken to achieve carbon neutrality seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.(2) All policies and programs undertaken to achieve carbon neutrality be implemented in a manner that maximizes ecological health and biodiversity and supports climate adaptation, including the protection of the states water supply, water quality, and native plants and animals.(3) State agencies engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve greenhouse gas emissions reductions goals.

SECTION 1. (a) The Legislature finds and declares all of the following:

### SECTION 1.

(1) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the death of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.

(2) The states forests, agricultural lands, rangelands, wetlands, oceans, and other natural and working landscapes define the beauty and well-being of our state, but tragically are suffering increasing degradation caused by a changing climate.

(3) While the states natural and working landscapes confront impacts from climate change, they continue to provide a valuable carbon sequestration service that can help the state meet its long-term climate, public health, environmental, and economic goals.

(4) Nations came together to adopt the Paris Agreement under the United Nations Framework Convention on Climate Change, which calls for preventing average global temperatures from rising more than 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels and pursuing efforts to keep warming below 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. 

(5) The state has strong partnerships through the Under2Coalition, with more than 200 jurisdictions around the world, representing 1.3 billion people, committing themselves to meeting the Paris Agreement goals and going beyond them wherever possible.

(6) Scientists agree that worldwide carbon pollution must start trending downward immediately, and carbon neutrality, which is the point at which the removal of carbon pollution from the atmosphere meets or exceeds emissions, must be achieved by midcentury.

(7) The achievement of carbon neutrality will require both significant reductions in carbon pollution and the removal of carbon dioxide from the atmosphere, including sequestration in forests, soils, and other natural landscapes.

(8) California, through two executive orders, Executive Order No. N-82-20 and Executive Order No. B-55-18, has acknowledged that the states natural and working lands have a critical role to play in the states climate strategy and ability to achieve carbon neutrality.

(9) Strategies that include the states natural and working lands to address climate change should also support associated values and benefits, such as food and job security, biodiversity, wildlife habitat, and water and air quality protection.

(10) The State Air Resources Boards 2017 Climate Change Scoping Plan, prepared pursuant to Section 38561 of the Health and Safety Code, charts the steps to achieve the states greenhouse gas emissions goals, presenting a balanced set of economically viable and technologically feasible actions for carbon reduction.

(11) The state has taken the following specific steps to reduce greenhouse gas emissions:

(A) Requiring significant reductions of destructive super pollutants, including black carbon and methane.

(B) Supporting clean transportation to reduce petroleum use by 45 percent by 2030, as outlined in the State Air Resources Boards 2017 Climate Change Scoping Plan prepared pursuant to Section 38561 of the Health and Safety Code.

(C) Setting a goal of 5 million zero-emission vehicles by 2030 in Executive Order No. B-48-18.

(D) Proposing to double the reduction in the carbon intensity of fuels through the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations) by 2030.

(E) Moving the state to 100 percent clean energy by 2045 pursuant to Section 454.53 of the Public Utilities Code.

(F) Requiring the state to double the rate of energy efficiency savings in buildings.

(G) Extending and improving the states market-based compliance mechanism, commonly known as cap and trade.

(H) Directing the cap-and-trade moneys to greenhouse gas emissions-reducing programs that benefit disadvantaged communities.

(I) Developing a Forest Carbon Plan to better manage the states forest land.

(J) Establishing a goal of reducing at least five million metric tons of greenhouse gas emissions per year through the development and application of compost on working lands in Section 42649.87 of the Public Resources Code.

(b) It is the intent of the Legislature that the state accomplish all of the following:

(1) All policies and programs undertaken to achieve carbon neutrality seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.

(2) All policies and programs undertaken to achieve carbon neutrality be implemented in a manner that maximizes ecological health and biodiversity and supports climate adaptation, including the protection of the states water supply, water quality, and native plants and animals.

(3) State agencies engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve greenhouse gas emissions reductions goals.

SEC. 2. Section 38561.5 is added to the Health and Safety Code, to read:38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.

SEC. 2. Section 38561.5 is added to the Health and Safety Code, to read:

### SEC. 2.

38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.

38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.

38561.5. (a) For purposes of this section, the following definitions apply:(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. (3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. (5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).(5) The review and update pursuant to paragraph (4) shall include all of the following:(A) Descriptions of the actions and projects undertaken on natural and working lands to date.(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.



38561.5. (a) For purposes of this section, the following definitions apply:

(1) Natural carbon sequestration means actions that are undertaken on natural and working lands to remove and provide storage of atmospheric greenhouse gases in vegetation and soils. This shall include preservation, conservation, restoration, and sustainable management of these lands, which may include compost application, cover crops, hedgerows, planned grazing, urban forestry, riparian restoration, restoration of tidal flows to wetlands, and other forms of wetland restoration, among other relevant actions.

(2) Natural lands has the same meaning as set forth in paragraph (2) of subdivision (d) of Section 9001.5 of the Public Resources Code. 

(3) Nature-based climate solutions means activities, such as restoration, conservation, and land management actions, that increase net carbon sequestration or reduce greenhouse gas emissions in natural and working lands.

(4) Vulnerable communities has the same meaning as set forth in subdivision (d) of Section 71340 of the Public Resources Code. 

(5) Working lands has the same meaning as set forth in paragraph (1) of subdivision (d) of Section 9001.5 of the Public Resources Code.

(b) (1) On or before January 1, 2024, the Natural Resources Agency, in collaboration with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, the expert advisory committee established pursuant to subdivision (c), and other relevant state agencies, shall determine an ambitious range of targets for natural carbon sequestration, and for nature-based climate solutions, that reduce greenhouse gas emissions for 2030, 2038, and 2045 to support state goals to achieve carbon neutrality and foster climate adaptation and resilience. These targets shall be integrated into the scoping plan prepared pursuant to Section 38561 and other state policies.

(2) Projects and actions developed to achieve the targets established pursuant to paragraph (1) shall support the states efforts to achieve carbon neutrality, take into account climate impacts, increase resilience to climate change impacts, reduce greenhouse gas emissions, and enhance carbon sequestration in a manner thatmaximizes ecological health and biodiversity, andcomplements other climate and resources goals.

(3) (A) The state board shall ensure that all emissions reductions from projects and actions developed to achieve the targets established pursuant to paragraph (1) shall be accounted for in a manner that does not result in double counting of emissions reductions.

(B) Notwithstanding any other law, emissions reduction projects and actions that receive state funding are not eligible to generate credits under any market-based compliance mechanism.

(4) On or before January 1, 2025, the Natural Resources Agency, in consultation with the state board, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall review and update the Natural and Working Lands Climate Smart Strategy established pursuant to Section 39740.2 to achieve the targets established pursuant to paragraph (1).

(5) The review and update pursuant to paragraph (4) shall include all of the following:

(A) Descriptions of the actions and projects undertaken on natural and working lands to date.

(B) Quantified progress on emissions reductions, natural carbon sequestration, and cobenefits.

(C) A description of how the relevant agencies calculated emissions reductions, natural carbon sequestration, and cobenefits.

(D) A summary of the benefits to low-income communities, disadvantaged communities, vulnerable communities, disadvantaged farmers, and Native American tribes.

(E) An evaluation of the efficacy of the priority nature-based solutions, pathways, and priority actions for greenhouse gas reductions, climate resilience, and climate change adaptation.

(F) Identification and description of any barriers to achieving the range of targets pursuant to paragraph (1).

(G) Recommendations to address the barriers identified in subparagraph (F) to achieve the range of targets pursuant to paragraph (1).

(H) Recommendations from the expert advisory committee established pursuant to subdivision (c).

(c) The Natural Resources Agency and the state board shall jointly establish an expert advisory committee that is composed of university researchers, technical assistance providers, practitioners and other experts in the field of climate change and natural and working lands science and management, and Indigenous and environmental justice representatives, to inform and review modeling and analyses for natural and working lands, to advise state agencies on implementation strategies and standardized accounting, and to provide recommendations on addressing barriers to efficient implementation of this section.

(d) No later than January 1, 2025, the state board shall develop standard methods for state agencies to consistently track greenhouse gas emissions and reductions, carbon sequestration, and, where feasible and in consultation with the Natural Resources Agency and the Department of Food and Agriculture, additional benefits from natural and working lands over time. In estimating and tracking greenhouse gas emissions and reductions and carbon sequestration from natural and working lands, the state board shall take into account, where feasible, both of the following:

(1) Greenhouse gas emissions and reductions of carbon dioxide, methane, and nitrous oxide related to natural and working lands.

(2) Potential impacts of climate change, including, but not limited to, increased fire risk, warming temperatures, and decreasing precipitation, on the ability to reduce greenhouse gas emissions and sequester carbon from natural and working lands.

(e) On or before January 1, 2025, and every two years thereafter, the Natural Resources Agency shall publish data on its internet website on progress made in achieving the targets established pursuant to paragraph (1) of subdivision (b), including on state expenditures made to implement these targets.





(a)Except as provided in subdivision (c), any local agency or combination of local agencies, or a conservation district, overlying a groundwater basin may decide to become a groundwater sustainability agency for that basin.



(b)Before deciding to become a groundwater sustainability agency, and after publication of notice pursuant to Section 6066 of the Government Code, the local agency or agencies, or a conservation district, shall hold a public hearing in the county or counties overlying the basin.



(c)(1)Except as provided in paragraph (2), the following agencies created by statute to manage groundwater shall be deemed the exclusive local agencies within their respective statutory boundaries with powers to comply with this part:



(A)Alameda County Flood Control and Water Conservation District, Zone 7.



(B)Alameda County Water District.



(C)Desert Water Agency.



(D)Fox Canyon Groundwater Management Agency.



(E)Honey Lake Valley Groundwater Management District.



(F)Kings River East Groundwater Sustainability Agency.



(G)Long Valley Groundwater Management District.



(H)Mendocino City Community Services District.



(I)Mono County Tri-Valley Groundwater Management District.



(J)Monterey Peninsula Water Management District.



(K)North Fork Kings Groundwater Sustainability Agency.



(L)Ojai Groundwater Management Agency.



(M)Orange County Water District.



(N)Pajaro Valley Water Management Agency.



(O)San Joaquin River Exchange Contractors Groundwater Sustainability Agency.



(P)Santa Clara Valley Water District.



(Q)Sierra Valley Groundwater Management District.



(R)Willow Creek Groundwater Management Agency.



(2)An agency identified in paragraph (1) may opt out of being the exclusive groundwater management agency within its statutory boundaries by sending a notice to the department, which shall be posted on the departments internet website within 15 days of receipt. If an agency identified in paragraph (1) opts out of being the exclusive groundwater management agency, any other local agency or combination of local agencies operating within the statutory boundaries of the agency that has opted out may notify the department pursuant to Section 10723.8 of its decision to be the groundwater sustainability agency.



(3)A local agency listed in paragraph (1) may comply with this part by meeting the requirements of Section 10733.6 or opting to become a groundwater sustainability agency pursuant to this section. A local agency with authority to implement a basin-specific management plan pursuant to its principal act shall not exercise any authorities granted in this part in a manner inconsistent with any prohibitions or limitations in its principal act unless the governing board of the local agency makes a finding that the agency is unable to sustainably manage the basin without the prohibited authority.



(d)The decision of a local agency or combination of agencies, or a conservation district, to become a groundwater sustainability agency shall take effect as provided in Section 10723.8.







(a)Within 30 days of deciding to become or form a groundwater sustainability agency, the local agency or combination of local agencies, or the conservation district, shall inform the department of its decision and its intent to undertake sustainable groundwater management. The notification shall include the following information, as applicable:



(1)The service area boundaries, the boundaries of the basin or portion of the basin the agency intends to manage pursuant to this part, and the other agencies managing or proposing to manage groundwater within the basin.



(2)A copy of the resolution forming the new agency.



(3)A copy of any new bylaws, ordinances, or new authorities adopted by the local agency.



(4)A list of interested parties developed pursuant to Section 10723.2 and an explanation of how their interests will be considered in the development and operation of the groundwater sustainability agency and the development and implementation of the agencys sustainability plan.



(b)The department shall post all complete notices received under this section on its internet website within 15 days of receipt.



(c)The decision to become a groundwater sustainability agency shall take effect 90 days after the department posts notice under subdivision (b) if no other local agency submits a notification under subdivision (a) of its intent to undertake groundwater management in all or a portion of the same area. If another notification is filed within the 90-day period, the decision shall not take effect unless the other notification is withdrawn or modified to eliminate any overlap in the areas proposed to be managed. The local agencies shall seek to reach agreement to allow prompt designation of a groundwater sustainability agency. If agreement is reached involving a material change from the information in the posted notice, a new notification shall be submitted under subdivision (a) and the department shall post notice under subdivision (b).



(d)Except as provided in subdivisions (e) and (f), after the decision to be a groundwater sustainability agency takes effect, the groundwater sustainability agency shall be presumed to be the exclusive groundwater sustainability agency within the area of the basin within the service area of the local agency or conservation district that the local agency or conservation district is managing as described in the notice.



(e)A groundwater sustainability agency may withdraw from managing a basin by notifying the department in writing of its intent to withdraw.



(f)This section does not preclude the board from taking an action pursuant to Section 10735.6.