BILL ANALYSIS Ó AB 761 Page 1 ASSEMBLY THIRD READING AB 761 (Levine) As Amended June 2, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+---------------------| |Natural |8-1 |Williams, Dahle, |Harper | |Resources | | | | | | |Cristina Garcia, | | | | |Hadley, McCarty, | | | | |Rendon, | | | | | | | | | |Mark Stone, Wood | | | | | | | |----------------+------+---------------------+---------------------| |Water |13-2 |Levine, Bigelow, |Beth Gaines, Harper | | | |Dababneh, Dahle, | | | | |Dodd, Cristina | | | | |Garcia, Gomez, | | | | |Lopez, Mathis, | | | | |Medina, Rendon, | | | | |Salas, Williams | | | | | | | |----------------+------+---------------------+---------------------| |Appropriations |13-0 |Gomez, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | AB 761 Page 2 | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Quirk, Rendon, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Requires, upon appropriation of funding by the Legislature, the Department of Food and Agriculture (CDFA) to establish a grant program to fund projects that increase carbon sequestration and greenhouse gas (GHG) emissions reduction on agricultural lands, ranches and rangelands. Specifically, this bill: 1)Provides that a project shall be eligible for grant funding if the project is both on working lands and assists the state in meeting its GHG emission reduction goals. 2)Requires CDFA to prioritize funding for projects that provide the greatest level of the following benefits: a) Demonstrate carbon farming; b) Sequester carbon in agricultural soils; c) Achieve related cobenefits such as reduced irrigation demand, increased yield, enhanced habitat, reduced water quality impacts, and enhanced soil structure. 3)Requires CDFA, in consultation with the Department of Conservation (DOC), the Department of Resources Recycling and AB 761 Page 3 Recovery, the State Air Resources Board (ARB), and the Department of Water Resources (DWR), to develop and adopt project solicitation and evaluation guidelines to implement the grant program. 4)Requires CDFA to quantify the benefits of each project funded and post the evaluation information on their Internet Web site. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)Unknown cost pressures. 2)Increased initial and ongoing costs for CDFA, in the range of $2 million (unspecified fund) to develop and administer the program (based on a $50 million program). 3)Absorbable costs for the DOC, Department of Resources Recycling and Recovery, ARB, and DWR. COMMENTS: 1)Purpose. According to the author, this bill will fund 15 to 20 pilot projects to expand the use of sustainable agricultural practices, including compost application, on rangelands and other agricultural lands. The author states research shows that these pilots are expected to increase soil carbon sequestration (reduce greenhouse gasses), improve soil water retention, and make agricultural land AB 761 Page 4 more resilient to climate change and drought. 2)Is this just about compost? The Marin Carbon Project began as a compost experiment seven years ago on a Marin County ranch. This experiment uncovered a way to remove carbon dioxide from the air through application of compost on rangeland soil. The project hopes to turn the rangelands of California into a tool to meet the state's GHG reduction goals. These experiments on the grazing lands in Marin County and the Sierra Foothills of Yuba County by University of California (UC) Berkeley bio-geochemist Whendee Silver showed that a one-time application of compost substantially boosted the soil's carbon storage. The effect has persisted over six years, and Silver believes the carbon will remain stored for at least several decades. Last year, the Governor signed AB 1826 (Chesbro), Chapter 727, Statutes of 2014, which required generators of specified amounts of organic waste to arrange recycling services for the organic waste material. As the state diverts more organic waste from landfills, much of the organic waste could be turned into compost. The Marin Carbon Project with the help of UC Berkeley has demonstrated the benefits of compost application on rangelands. Compost can also be used on croplands and home gardens. The state has a role in developing markets for compost and collecting data on the benefits of it uses. This bill creates a grant program that will fund projects that increase carbon in soils through compost application, yet the supporters have identified other practices that they wish be included in the grant program. These practices include tillage management, nutrient management, windbreaks, specific plantings, habitat enhancement, and other improved management practices, which they believe will increase carbon sequestration and reduce GHG emissions. Therefore, the grant program created by this bill will look for projects on working lands that help the state meet its GHG emission goals, but those projects will not be limited to compost application and AB 761 Page 5 will not be limited to rangelands. 3)Healthy Soils. Increased carbon is soils produces multiple benefits, including increased water holding capacity, increased crop yields and decreased sediment erosion. The Governor's May Revision proposes to spend $20 million from AB 32 (Núñez), Chapter 488, Statues of 2006, cap and trade revenues (Greenhouse Gas Reduction Fund) to fund demonstration projects that increase carbon in soils. Recent amendments were intended to align this bill with the Governor's initiative. Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0000853