SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

AB 839 (Mullin) - Climate adaptation strategy: strategic resiliency framework: Resiliency through Adaptation, Economic Vitality, and Equity Account

Bill Summary:

This bill would require the Secretary of the California Natural Resources Agency (CNRA) to review the state’s climate adaptation strategy and develop a strategic resiliency framework.

Fiscal Impact:

• CNRA estimates it would cost $250,000 (General Fund) and one position ongoing to create and continually update a strategic resiliency framework.
• Unknown, potentially significant cost pressure to provide financial assistance in the form of grants and financing for climate resiliency and adaptation projects that achieve the recommendations and actions called for in the framework.
• Unknown costs, likely in the hundreds of thousands of dollars, and additional staff for CNRA to administer grants and financial assistance.

Background:

After the California Global Warming Solutions Act of 2006 (AB 32 (Pavley/Nunes, Chapter 249, Statutes of 2006)) became law, California developed and implemented numerous programs and policies to address climate change through reductions in greenhouse gas and related emissions. Similarly, the state is a recognized leader in developing programs and policies to adapt to the now-inevitable impacts of anthropogenic climate change and promote climate adaptation and resiliency statewide.

As defined in the state’s recent Fourth Climate Change Assessment (Fourth Assessment), “adaptation is an adjustment in natural or human systems to a new or changing environment. Adaptation to climate change refers to adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Resilience is defined as the capacity of any entity – an individual, a community, an organization, or a natural system – to prepare for disruptions, to recover from shocks and stresses, and to adapt and grow from a disruptive experience. Adaptation actions contribute to increasing resilience, which is a desired outcome or state of being.” The Fourth Assessment also states that “resilience is a concept that recognizes the interconnections and interdependencies across people, nature, and infrastructure. Social cohesion and a healthy economy are important determinants of resilience, alongside stable infrastructure and healthy natural systems.”

CNRA is the state’s lead on climate adaptation. CNRA is the agency-level lead on the state’s climate adaptation policy and natural resources climate policy, and existing law requires that the Safeguarding California Plan (plan), the state’s climate adaptation strategy, be revised by the CNRA every three years with public input starting July 1, 2017. The CNRA is required to coordinate with other state agencies to identify a lead agency or group of agencies for each identified sector specifically addressed by the plan.

Current law. Existing law:

• Establishes legislative intent “to prioritize the state’s response to the impacts resulting from climate change by ensuring all state departments and agencies prepare for and are ready to respond to the impacts of climate change, such as extreme weather events, the urban heat island effect, habitat loss, wildfire, sea-level rise, and drought,” and that the CNRA “consider developing policies to address the impacts of climate change and climate adaptation with a focus on people, place, and water and that actions taken to address climate adaptation should be consistent with the [plan].” (PRC §71152)
• Requires state agencies to work to maximize, where applicable and feasible, numerous objectives to address vulnerabilities identified in the plan, including: educating the public about the consequences of climate change; ensuring there is a continuing depository of relevant scientific data; promoting the use of the plan to inform planning and state investments in natural infrastructure, as specified; protecting and enhancing habitat, species strongholds, and wildlife corridors that are critical to the preservation of species that are at risk; improving emergency management response; ensuring sufficient energy; improving capacity to reduce public health threats; impacts on disadvantaged communities and protecting cultural resources, among other things. (PRC §71154)
• Establishes the Integrated Climate Adaptation and Resiliency Program (ICARP) at the Office of Planning and Research (OPR) (PRC §§71350 et seq.). OPR serves the Governor by providing long-range planning and research, and as the state’s comprehensive state planning agency (Government Code §65040).

Proposed Law:

This bill would require the CNRA secretary to review the state’s adaptation strategy and develop a strategic resiliency framework. Specifically, this bill would:

1. Require, by January 1, 2021, that the CNRA secretary review the Safeguarding California plan and develop a strategic resiliency framework (framework) with specified objectives.
   1. These objectives include:
      1. Recommendations and actions to prepare the state for the most significant future climate change impacts, as specified.
      2. The identification and provision of special protections for vulnerable communities and industries disproportionately impacted by climate change.
      3. The development of timetables and metrics to measure progress towards achieving the framework’s goals.
      4. The establishment of resiliency actions that include the ocean and coast, freshwater supply and terrestrial ecosystems.
   2. Relevant state agencies, as specified, are required to provide information to the CNRA secretary indicating progress towards achieving the framework.
      1. These agencies are required to collaborate with regional entities, as defined, to enhance coordination and promote regional solutions and framework implementation.
      2. Proactive engagement by the state of disproportionately impacted communities is required, as defined and specified.
2. Require the plan to include a review of progress made implementing previous plans and an evaluation of each sector’s lead agency’s adaptation efforts, and a detailed description of the framework.
3. Create the Adaptation through Resiliency, Economic Vitality, and Equity Account (Account) in the State Treasury.
   1. Moneys in the Account shall be allocated to provide grants and financing for climate adaptation projects that fulfill the framework’s recommendations and actions.
   2. The CNRA, in coordination with the OPR Director, shall develop grants and financing, as defined, to implement the framework. The State Treasurer and the financing authorities chaired by the State Treasurer may help in the development of these financing programs, as specified.
      1. The CNRA is required to take certain actions in the development of these financing programs, as specified, to, among other things, leverage local, state, federal, and private funding sources to maximize impact, prioritize projects that provide multibenefit solutions, provide technical assistance and promote projects developed pursuant to the framework or by ICARP, and the Water-Energy nexus registry.
4. Require the CNRA to allocate moneys in the Account for grants and loans, at a minimum, as follows:
   1. 20% to support low-income communities.
   2. 10% consistent with the ICARP.
   3. 5% to support workforce training programs associated with fire-impacted watersheds.
   4. 20% for certain projects that protect ocean and coastal resources.
   5. 10% to the Wildlife Conservation Board and state conservancies for climate resiliency projects.
   6. 1% to the California Conservation Corps and certified community conservation corps.
5. Define various relevant terms.
   1. Of particular note, financing is broadly defined to include at a minimum loans, leases, energy service agreements, performance contracts, loan loss reserves, interest rate reductions, subordinated debt, bond financing, loan guarantees, or other credit enhancements.
6. Make relevant and appropriate legislative findings motivating the need for strategic resiliency framework, among other things, and explicitly state legislative intent that the CNRA secretary lead the state’s climate adaptation strategy.

Related Legislation:

SB 168 (Wieckowski, 2019) would create the Chief Climate Resilience Officer within the ICARP program at OPR.

AB 975 (Calderon, 2019) would require the CNRA Secretary, in coordination with the Governor’s Office, to communicate with other countries, states, regional collaboratives and subnational government to support and promote the state’s goals and policies related to ocean, coastal and terrestrial adaptation.

AB 552 (Stone, 2019) would develop a coastal adaptation and resilience program funded by tidelands oil revenues.

SB 44 (Jackson, Chapter 645, Statutes of 2017) provides tidelands royalty revenue of up to $2 million annually to clean up coastal oil and gas wells.

SB 246 (Wieckowski, Chapter 606, Statutes of 2015) created the ICARP at OPR to promote coordination about state, regional, and local entities, among other things.

Staff Comments:

Financing adaptation and resiliency efforts. According to the Legislative Analyst’s Office (LAO) in a recent presentation to the Senate Committee on Natural Resources and Water titled Climate Change and State Bonds, there is significant uncertainly associated with estimates of the fiscal impacts of climate change to the public and private sectors. According to the LAO, “no comprehensive statewide assessment of future costs to the state or local governments has been completed.” Disaster response and recovery, annual operating expenses and infrastructure modification and replacement are three identifiable areas where total costs may readily run into the hundreds of billions of dollars over the coming decades. Improved estimates of the overall costs will usefully help to shape the planning efforts and the state’s collective ability to gain resiliency.

As noted by the author, the Fourth Assessment provided an “order of magnitude” estimate of annual costs of over $100 billion annually by 2050, and cautioned about the underlying uncertainty in its result. Much of this is related to coastal impacts. One of the challenges in performing the economic projections is accounting for the costs of extreme events that may occur with increasing likelihood. Models need considerable improvement to quantify climate and follow-on financial risks appropriately. Gaining a better understanding of direct climate change costs does not necessarily mean that indirect costs – such as a major utility declaring bankruptcy due to a wildfire – will be appropriately estimated or anticipated.

Explicitly incorporating financial resources as one of the state’s identified climate adaptation sectors for planning purposes, requiring the OPR Director and the CNRA Secretary to quantify the financial risks and costs of climate change impacts across the specified sectors of the plan as part of the strategic resilience framework and using these results to prioritize the implementation of the framework’s recommendations and actions, and incorporating climate change-induced financial instability into legislative findings regarding adaptation may serve to improve understanding of the direct and indirect costs of climate change to the state.

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SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Henry Stern, Chair

2019 - 2020 Regular

Bill No: AB Hearing Date: June 25, 2019

Subject: Climate adaptation strategy: strategic resiliency framework: Adaptation through Resiliency, Economic Vitality, and Equity Account

BACKGROUND AND EXISTING LAW

1. After the California Global Warming Solutions Act of 2006 (AB 32 (Pavley/Nunes, Chapter 249, Statutes of 2006)) became law, California developed and implemented numerous programs and policies to address climate change through reductions in greenhouse gas and related emissions.
   1. Similarly, the state is a recognized leader in developing programs and policies to adapt to the now-inevitable impacts of anthropogenic climate change and promote climate adaptation and resiliency statewide.
      1. As defined in the state’s recent Fourth Climate Change Assessment (Fourth Assessment), “adaptation is an adjustment in natural or human systems to a new or changing environment. Adaptation to climate change refers to adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Resilience is defined as the capacity of any entity – an individual, a community, an organization, or a natural system – to prepare for disruptions, to recover from shocks and stresses, and to adapt and grow from a disruptive experience. Adaptation actions contribute to increasing resilience, which is a desired outcome or state of being.” The Fourth Assessment also states that “resilience is a concept that recognizes the interconnections and interdependencies across people, nature, and infrastructure. Social cohesion and a healthy economy are important determinants of resilience, alongside stable infrastructure and healthy natural systems.”
      2. Put simply, climate adaptation is the “new normal,” and resilience is dealing with the “new normal.”
2. Establishes the California Natural Resources Agency (CNRA).
   1. The CNRA is the agency-level lead on the state’s climate adaptation policy and natural resources climate policy, and existing law requires that the Safeguarding California Plan (plan), the state’s climate adaptation strategy, be revised by the CNRA every three years with public input starting July 1, 2017. The CNRA is required to coordinate with other state agencies to identify a lead agency or group of agencies for each identified sector specifically addressed by the plan.
      1. The updates to the plan shall address vulnerabilities to climate change and priority actions to respond to the risks posed in at least the following sectors: water, energy, transportation, public health, agriculture, emergency services, forestry, biodiversity and habitat, and ocean and coastal resources (Public Resources Code (PRC) §71153). The most recent update to the plan (the 2018 plan) included two additional sectors – Parks, Recreation, and California Culture, and Land Use and Community Development.
      2. The 2018 plan includes a list of qualitative metrics to evaluate progress towards meeting the state’s adaptation goals identified therein. Measuring progress is repeatedly mentioned in the plan.
3. There is substantial evidence that global climate change is already affecting the state through extended wildfire seasons, drought, elevated temperatures, and altered ocean conditions, among other impacts (i.e. the “new normal” referenced above).
   1. Each region of the state, depending upon its vulnerability and sensitivity to climate change, will adapt differently and may have correspondingly varied resilience.
   2. The Fourth Climate Change Assessment (Fourth Assessment) was recently released under the auspices of the CNRA. The “order of magnitude” estimates included therein indicate that by 2050 the state may have over $100 billion of annual costs associated with climate change. Its discussion of the economics of climate change highlights the need for improvements in economic modeling in order to better assess costs. Implicit in this is an improved understanding of risks. Different activities may be most appropriately funded in varying ways. Novel and innovative approaches may well be needed.
4. Existing law establishes legislative intent “to prioritize the state’s response to the impacts resulting from climate change by ensuring all state departments and agencies prepare for and are ready to respond to the impacts of climate change, such as extreme weather events, the urban heat island effect, habitat loss, wildfire, sea-level rise, and drought,” and that the CNRA “consider developing policies to address the impacts of climate change and climate adaptation with a focus on people, place, and water and that actions taken to address climate adaptation should be consistent with the [plan].” (PRC §71152)
5. Existing law requires state agencies to work to maximize, where applicable and feasible, numerous objectives to address vulnerabilities identified in the plan, including: educating the public about the consequences of climate change; ensuring there is a continuing depository of relevant scientific data; promoting the use of the plan to inform planning and state investments in natural infrastructure, as specified; protecting and enhancing habitat, species strongholds, and wildlife corridors that are critical to the preservation of species that are at risk; improving emergency management response; ensuring sufficient energy; improving capacity to reduce public health threats; impacts on disadvantaged communities and protecting cultural resources, among other things. (PRC §71154)
6. California’s adaptation efforts began in 2008, when then-Governor Schwarzenegger ordered through the Climate Action Team, to coordinate with local, regional, state, federal, public, and private entities to develop, by 2009, the state’s climate adaptation strategy which summarized the best known science on climate change impacts for the state, assessed the state's vulnerability to the identified impacts, and outlined solutions implementable within and across state agencies to promote resiliency. Five years later, in July of 2014, the agency released the first Safeguarding California Plan which has been updated twice since.
7. Existing law establishes the Integrated Climate Adaptation and Resiliency Program (ICARP) at the Office of Planning and Research (OPR) (PRC §§71350 et seq.). OPR serves the Governor by providing long-range planning and research, and as the state’s comprehensive state planning agency (Government Code §65040).
   1. Under the auspices of ICARP, OPR is required to coordinate regional and local efforts with state climate adaptation strategies, taking climate equity into consideration and to seek to both reduce greenhouse gas emissions and benefit adaptation efforts at the same time. Among other tasks, ICARP coordinates the state’s clearinghouse for climate adaptation information, develops tools to inform state-led programs related to climate, and assists in the review and updating of the Adaptation Planning Guide.

PROPOSED LAW

This bill would require the CNRA secretary to review the state’s adaptation strategy and develop a strategic resiliency framework. Specifically, this bill would:

1. Require, by January 1, 2021, that the CNRA secretary review the Safeguarding California plan and develop a strategic resiliency framework (framework) with specified objectives.
   1. These objectives include:
      1. Recommendations and actions to prepare the state for the most significant future climate change impacts, as specified.
      2. The identification and provision of special protections for vulnerable communities and industries disproportionately impacted by climate change.
      3. The development of timetables and metrics to measure progress towards achieving the framework’s goals.
      4. The establishment of resiliency actions that include the ocean and coast, freshwater supply and terrestrial ecosystems.
   2. Relevant state agencies, as specified, are required to provide information to the CNRA secretary indicating progress towards achieving the framework.
      1. These agencies are required to collaborate with regional entities, as defined, to enhance coordination and promote regional solutions and framework implementation.
      2. Proactive engagement by the state of disproportionately impacted communities is required, as defined and specified.
2. Require the plan to include a review of progress made implementing previous plans and an evaluation of each sector’s lead agency’s adaptation efforts, and a detailed description of the framework.
3. Create the Adaptation through Resiliency, Economic Vitality, and Equity Account (Account) in the State Treasury.
   1. Moneys in the Account shall be allocated to provide grants and financing for climate adaptation projects that fulfill the framework’s recommendations and actions.
   2. The CNRA, in coordination with the OPR Director, shall develop grants and financing, as defined, to implement the framework. The State Treasurer and the financing authorities chaired by the State Treasurer may help in the development of these financing programs, as specified.
      1. The CNRA is required to take certain actions in the development of these financing programs, as specified, to, among other things, leverage local, state, federal, and private funding sources to maximize impact, prioritize projects that provide multibenefit solutions, provide technical assistance and promote projects developed pursuant to the framework or by ICARP, and the Water-Energy nexus registry.
4. Require the CNRA to allocate moneys in the Account for grants and loans, at a minimum, as follows:
   1. 20% to support low-income communities.
   2. 10% consistent with the ICARP.
   3. 5% to support workforce training programs associated with fire-impacted watersheds.
   4. 20% for certain projects that protect ocean and coastal resources.
   5. 10% to the Wildlife Conservation Board and state conservancies for climate resiliency projects.
   6. 1% to the California Conservation Corps and certified community conservation corps.
5. Define various relevant terms.
   1. Of particular note, financing is broadly defined to include at a minimum loans, leases, energy service agreements, performance contracts, loan loss reserves, interest rate reductions, subordinated debt, bond financing, loan guarantees, or other credit enhancements.
6. Make relevant and appropriate legislative findings motivating the need for strategic resiliency framework, among other things, and explicitly state legislative intent that the CNRA secretary lead the state’s climate adaptation strategy.

ARGUMENTS IN SUPPORT

According to the author, “AB 839 is a bill to move California forward in our efforts to adapt to the increasing risks brought on by climate change. According to California’s Fourth Climate Assessment, the economic cost to California associated with direct climate impacts by 2050 is estimated at over $100 billion – each year. This staggering figure is attributable to damages to coastal properties, the potential for droughts, fires and mega-floods, and alarmingly, human mortality. California has done great work to date investing in research and developing guidance and planning. I introduced AB 839 in response to the call that my office has heard from organizations around the state that we need to implement “more teeth” to our existing efforts.”

“This means developing a strategic adaptation/resiliency framework that includes recommended actions with timetables and metrics to measure the state’s progress in building and investing in adaptation and resiliency projects. It will also require targeted funding and innovative financing for these projects.”

“Given the breadth, complexity, pervasiveness, persistence and danger of climate change, it is important to have a clear framework in place to guide the state over the coming decades to ensure we have a thoughtful set of goals, coordinated government actions, and innovative funding mechanisms in place.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

This bill is double-referred to the Senate Committee on Insurance. Elements of this bill under the Committee on Insurance’s jurisdiction will be discussed before that Committee, and are included here for context and completeness only.

State policy to address climate change adaptation and resiliency. Climate change is a near-existential threat to California. Businesses and all levels of government are required or admonished to consider climate change in all aspects of their planning and operations. There are several policy bills directly addressing various aspects of the state’s efforts related to climate change adaptation and resiliency. In most instances, the Committee has jurisdiction over these bills. The Committee may wish to ask the author to discuss how this bill does or does not complement the other pending legislation and existing state law and policy.

Financing adaptation and resiliency efforts in view of the significant anticipated costs. According to the Legislative Analyst’s Office (LAO) in a recent presentation to this Committee titled Climate Change and State Bonds, there is significant uncertainly associated with estimates of the fiscal impacts of climate change to the public and private sectors. According to the LAO, “no comprehensive statewide assessment of future costs to the state or local governments has been completed.” Disaster response and recovery, annual operating expenses and infrastructure modification and replacement are three identifiable areas where total costs may readily run into the hundreds of billions of dollars over the coming decades. Improved estimates of the overall costs will usefully help to shape the planning efforts and the state’s collective ability to gain resiliency.

As noted by the author, the Fourth Assessment provided an “order of magnitude” estimate of annual costs of over $100 billion annually by 2050, and cautioned about the underlying uncertainty in its result. Much of this is related to coastal impacts. One of the challenges in performing the economic projections is accounting for the costs of extreme events that may occur with increasing likelihood. Models need considerable improvement to quantify climate and follow-on financial risks appropriately. Gaining a better understanding of direct climate change costs does not necessarily mean that indirect costs – such as a major utility declaring bankruptcy due to a wildfire – will be appropriately estimated or anticipated.

Explicitly incorporating financial resources as one of the state’s identified climate adaptation sectors for planning purposes, requiring the OPR Director and the CNRA Secretary to quantify the financial risks and costs of climate change impacts across the specified sectors of the plan as part of the strategic resilience framework and using these results to prioritize the implementation of the framework’s recommendations and actions, and incorporating climate change-induced financial instability into legislative findings regarding adaptation may serve to improve understanding of the direct and indirect costs of climate change to the state. The Committee may wish to require these changes in order to facilitate the development of improved estimates of the financial risks climate change presents to the state, and to ensure this information is used to prioritize the most cost effective climate resiliency projects. [Amendment 1]

Importance of resilience. Climate adaptation is fundamental to climate resilience, but the converse is not. The success of developing and assessing progress towards achieving climate resilience is the goal of this bill. In order to highlight the importance of climate resilience, the Committee may wish to revise the name of the proposed Account to emphasize resilience and add appropriate specific references to climate resiliency. [Amendment 2]

The best method (or likely methods) to fund climate adaptation and resilience projects. It remains unclear what the best way to pay for climate adaptation and resilience projects. This bill explicitly includes a range of financing mechanisms and provides a process for the different alternatives to be developed. It may be that certain commitments of public funds will spur investment of private funds. Additionally, special financing districts, the California Infrastructure and Economic Development Bank, additional traditional or new types of bonds, cap-and-trade auction revenues, new or enhanced fees, insurance or other revenue sources, may also contribute. Although outside this Committee’s jurisdiction, it is worth noting that the author does not identify a source of funds for the strategic resiliency framework or its associated grants, financing and other programs created by this bill.

Recent related legislation

SB 168 (Wieckowski, 2019) would create the Chief Climate Resilience Officer within the ICARP program at OPR. (This bill is pending before the Assembly Natural Resources Committee.)

AB 975 (Calderon, 2019) would require the CNRA Secretary, in coordination with the Governor’s Office, to communicate with other countries, states, regional collaboratives and subnational government to support and promote the state’s goals and policies related to ocean, coastal and terrestrial adaptation. (This bill is pending before this Committee.)

AB 552 (Stone, 2019) would develop a coastal adaptation and resilience program funded by tidelands oil revenues. (This bill is pending before this Committee.)

SB 44 (Jackson, Chapter 645, Statutes of 2017) provides tidelands royalty revenue of up to $2 million annually to clean up coastal oil and gas wells.

SB 246 (Wieckowski, Chapter 606, Statutes of 2015) created the ICARP at OPR to promote coordination about state, regional, and local entities, among other things.

SUGGESTED AMENDMENTS

AMENDMENT 1

In PRC §71152(a), add “climate change-induced financial instability” to the list of climate change impacts in the first sentence.

In PRC §71153(a)(1), add a new subparagraph “(J) Financial Resources.”

In PRC §71153.5, add subdivision (e) as follows:

“(e) In coordination with the Director of State Planning and Research, quantify the financial risks and costs of climate change impacts across vulnerable sectors identified pursuant to paragraph (1) of subdivision (a) of section 71153.”

In PRC §71157(c), insert “prioritized to minimize costs and risks identified in the framework pursuant to subdivision (e) of section 71153.5” after “framework” in the first sentence.

AMENDMENT 2

Rename the “Adaptation through Resiliency, Economic Vitality, and Equity Account” the “Resiliency through Adaptation, Economic Vitality, and Equity Account.”

In PRC §71152(a), insert “resiliency and” between “climate” and “adaptation” in the second sentence.

In PRC §71157(b), insert “resiliency and” between “climate” and “adaptation”

SUPPORT

Ocean Conservancy (sponsor)

350 Silicon Valley

American Concrete Pipe Association of California

California Association of Local Conservation Corps

California Association of Professional Scientists

California Coastkeeper Alliance

California Marine Sanctuary Foundation

Community Nature Connection

Endangered Habitats League

Friends of the LA River

Land Trust of Santa Cruz County

Local Government Commission

Los Angeles Neighborhood Land Trust

Madrone Audubon Society, Sonoma County

Mammoth Lakes, Trails, and Public Access Foundation

Midpeninsula Regional Open Space District

Paula Lane Action Network, Sonoma County

Placer Land Trust

Public Health Advocates

Santa Clara Valley Open Space Authority

Save the Redwoods League

Sierra Club California

Sierra Nevada Journeys

Silicon Valley Leadership Group

Surfrider Foundation

Wildcoast

OPPOSITION

None Received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 839

Author:(Mullin)

As Amended Ver:April 1, 2019

Majority vote

SUMMARY:

Requires, on or before July 1, 2021, the Secretary of the Natural Resources Agency (NRA) to review the Safeguarding California Plan (Plan) and develop a strategic resiliency framework (framework). Establishes the Adaptation through Resiliency, Economic Vitality, and Equity Account (AREVEA) to allocate money to provide financial assistance in the form of grants and financing for climate adaptation projects that achieve the recommendations and actions called for in the framework.

Major Provisions

1. Declares it is the intent of the Legislature that the Secretary leads the state's climate adaptation strategy.
2. Requires the Plan to include all of the following:
   1. A review of the progress made implementing past plans and an evaluation of each lead agency's lead adaptation efforts; and,
   2. A detailed description of the framework developed by the Secretary.
3. Requires, on or before July 1, 2021, the Secretary to review the Plan and develop a framework that does all of the following:
   1. Makes recommendations for actions that are necessary to prepare the state for the most significant climate change impacts modeled for 2025, 2050, and beyond;
   2. Identifies and provides for special protections for vulnerable communities and industries that are disproportionately impacted by climate change;
   3. Develops timetables and metrics to measure progress in achieving the framework; and,
   4. Establishes actions for community and economic resiliency, the ocean and coast, and terrestrial ecosystems.
4. Requires each state agency identified in the framework to report to the Secretary on progress completing the recommendations and actions.
5. In implementing the framework, requires state agencies to collaboratively engage with regional entities, including local agencies and communities, to enhance policy and funding coordination and promote regional solutions and implementation.
6. Requires the state to proactively engage disenfranchised communities that have been disproportionately impacted in planning and project development to ensure benefits to these regions while preventing potentially unintended consequences from land use and community development decisions.
7. Requires the Secretary to coordinate with the Insurance Commissioner on developing policies for industry to provide reduced premiums for projects and development that improve resiliency.
8. Establishes the AREVEA to allocate money to provide financial assistance in the form of grants and financing for climate adaptation projects that achieve the recommendations and actions called for in the framework.
9. Requires NRA, in consultation with the Treasurer and the Office of Planning and Research, to develop grants and innovative financial mechanisms such as loans to implement the recommendations and actions called for in the framework.
10. Requires, when allocating money in the AREVEA, the NRA to use a specified schedule.

COMMENTS:

In 2009, the NRA described adaptation as a relatively new concept in California policy and stated the term means, "efforts that respond to the impacts of climate change – adjustments in natural or human systems to actual or expected climate changes to minimize harm or take advantage of beneficial opportunities."

California's adaptation efforts can be traced back to 2008, when Governor Schwarzenegger ordered the NRA, through the Climate Action Team, to coordinate with local, regional, state, federal, public, and private entities to develop, by 2009, the state's Climate Adaptation Strategy. Governor Schwarzenegger's Executive Order S-13-08 required the strategy to summarize the best known science on climate change impacts for California, assess California's vulnerability to the identified impacts, and outline solutions that can be implemented within and across state agencies to promote resiliency. As a result, NRA drafted The 2009 California Climate Adaptation Strategy. The state's Climate Adaptation Strategy represents the work of seven sector-specific working groups led by 12 state agencies, boards, commissions, and numerous stakeholders. The state's Climate Adaptation Strategy proposes a comprehensive set of recommendations designed to inform and guide California decision makers as they begin to develop policies that will protect the state, its residents, and its resources from a range of climate change impacts. In July of 2014, NRA released an update to the 2009 California Climate Adaptation Strategy Safeguarding California: Reducing Climate Risk. AB 1482 (Gordon), Chapter 603, Statutes of 2015, required updates to the Plan every three years, which was done last in 2018.

According to the Author:

California has taken leadership to create multiple adaptation frameworks but lacks statutory guidance on critical priority actions and timelines to protect our state. Additionally, it still does not have a funded, prioritized and comprehensive statutory plan to effectively deal with those effects.

This bill would remedy this critical issue by providing legislative guidance and oversight to state agencies on priority adaptation actions and investments. The bill would build off existing science and planning efforts at Office of Planning and Research, the Natural Resources Agency, and other state departments. It would also establish innovative financing strategies that attract private funds and maximize public funds.

Arguments in Support:

According to supporters, despite California's lofty climate change goals, the state still does not have a prioritized and funded plan to address climate change impacts comprehensively. The Ocean Conservancy, in support of the bill, states this bill would require the state to develop, adopt, and implement a comprehensive and proactive strategy for climate adaptation.

Arguments in Opposition:

None received

FISCAL COMMENTS:

According to the Assembly Appropriations Committee:

1. Cost pressures, likely in the tens of millions of dollars annually to fund the Adaption Account.
2. Minor costs, likely between $50,000 and $100,000, for the office of the Insurance Commissioner to provide assistance in the development of policies to reduce insurance premiums.
3. Unknown, likely absorbable costs for the State Treasurer's Office and the Office of Planning and Research to consult with CNRA.
4. Absorbable CNRA costs.

VOTES:

ASM NATURAL RESOURCES: 9-1-1

YES: Friedman, Flora, Chau, Eggman, Cristina Garcia, Limón, McCarty, Muratsuchi, Mark Stone

NO: Melendez

ABS, ABST OR NV: Mathis

ASM APPROPRIATIONS: 14-3-1

YES: Gonzalez, Bloom, Bonta, Calderon, Carrillo, Chau, Diep, Eggman, Gabriel, Eduardo Garcia, Maienschein, Petrie-Norris, Quirk, Robert Rivas

NO: Bigelow, Brough, Obernolte

ABS, ABST OR NV: Fong

UPDATED:

VERSION: April 1, 2019

CONSULTANT: Michael Jarred / NAT. RES. / (916)319-2092 FN: 0000607

Date of Hearing: May 1, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 839

Author:(Mullin) – As Amended Ver:April 1, 2019

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires, by July 1, 2021, the secretary of the California Natural Resources Agency (CNRA) to review the Safeguarding California Plan (Plan) and develop a strategic resiliency framework (framework). This bill establishes the Adaptation through Resiliency, Economic Vitality and Equity Account (Adaption Account) to allocate money to provide financial assistance in the form of grants and financing for climate adaptation projects that achieve the recommendations and actions in the framework. Additionally, this bill:

1. Requires each state agency identified in the framework to report to the secretary on progress completing the recommendations and actions.
2. Requires the secretary to coordinate with the California Insurance Commissioner on developing policies for industry to provide reduced premiums for projects and development that improve resiliency.
3. Requires CNRA, in consultation with the State Treasurer and the Office of Planning and Research, to develop grants and innovative financial mechanisms such as loans to implement the recommendations and actions called for in the framework. Requires CNRA, when developing and adopting the grants and innovative financial mechanisms guidelines and criteria to do all of the following:
   1. Leverage local, state, federal and private funding sources, as specified.
   2. Prioritize projects with multibenefits.
   3. Maximize benefits to vulnerable communities.
   4. Seek to achieve a portfolio approach to funding that supports a diverse set of projects.
4. Specifies how the CNRA shall allocate funds in the Adaptation Account.

FISCAL EFFECT:

1. Cost pressures, likely in the tens of millions of dollars annually to fund the Adaption Account.
2. Minor costs, likely between $50,000 and $100,000, for the office of the Insurance Commissioner to provide assistance in the development of policies to reduce insurance premiums.
3. Unknown, likely absorbable costs for the State Treasurer’s Office and the Office of Planning and Research to consult with CNRA.
4. Absorbable CNRA costs.

COMMENTS:

1. Purpose. According to the author:

California has taken leadership to create multiple adaptation frameworks but lacks statutory guidance on critical priority actions and timelines to protect our state. Additionally, it still does not have a funded, prioritized and comprehensive statutory plan to effectively deal with those effects.

This bill would remedy this critical issue by providing legislative guidance and oversight to state agencies on priority adaptation actions and investments. The bill would build off existing science and planning efforts at Office of Planning and Research, the Natural Resources Agency, and other state departments. It would also establish innovative financing strategies that attract private funds and maximize public funds.

1. Background. In 2009, the CNRA described adaptation as a relatively new concept in California policy and stated the term means, “efforts that respond to the impacts of climate change – adjustments in natural or human systems to actual or expected climate changes to minimize harm or take advantage of beneficial opportunities.”

California’s adaptation efforts can be traced back to 2008, when Governor Schwarzenegger ordered the CNRA, through the Climate Action Team, to coordinate with local, regional, state, federal, public and private entities to develop the state’s Climate Adaptation Strategy.

Governor Schwarzenegger’s executive order required the strategy to summarize the best known science on climate change impacts for California, assess California's vulnerability to the identified impacts and outline solutions to be implemented to promote resiliency. As a result, CNRA drafted The 2009 California Climate Adaptation Strategy. The adaptation strategy represents the work of seven sector-specific working groups led by 12 state agencies, boards, commissions and numerous stakeholders.

The state’s climate adaptation strategy proposes a comprehensive set of recommendations designed to inform and guide California decision makers as they develop policies to protect the state, its residents and its resources from a range of climate change impacts. In July of 2014, CNRA released an update to the 2009 California Climate Adaptation Strategy, “Safeguarding California: Reducing Climate Risk.” AB 1482 (Gordon), Chapter 603, Statutes of 2015, requires updates to the plan every three years.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 8, 2019

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Laura Friedman, Chair

ABPCA Bill Id:AB 839 (

Author:Mullin) – As Amended Ver:April 1, 2019

SUBJECT: Climate adaptation strategy: strategic resiliency framework: Adaptation through Resiliency, Economic Vitality, and Equity Account

SUMMARY: Requires, on or before July 1, 2021, the Secretary of the Natural Resources Agency (NRA) to review the Safeguarding California Plan (Plan) and develop a strategic resiliency framework (framework). Establishes the Adaptation through Resiliency, Economic Vitality, and Equity Account (AREVEA) to allocate money to provide financial assistance in the form of grants and financing for climate adaptation projects that achieve the recommendations and actions called for in the framework.

EXISTING LAW:

1. Requires the NRA to update its climate adaptation strategy, the Plan, by July 1, 2017, and every three years thereafter, by coordinating adaptation activities among lead state agencies in each sector.
2. Requires the Plan to include all of the following:
   1. Vulnerabilities to climate change by sector including, at a minimum, the following sectors:
      1. Water;
      2. Energy;
      3. Transportation;
      4. Public health;
      5. Agriculture;
      6. Emergency services;
      7. Forestry;
      8. Biodiversity and habitat; and,
      9. Ocean and coastal resources.
   2. Priority actions needed to reduce risks in those sectors, as identified by the lead agency or group of agencies.
3. Requires NRA to annually report to the Legislature on actions taken by each applicable agency to implement the Plan.
4. Establishes the Integrated Climate Adaptation and Resiliency Program (ICARP) to coordinate regional, local, and state efforts to adapt to climate change. Requires ICARP to:
   1. Pursue an emphasis on climate equity across sectors and strategies that benefit both greenhouse gas (GHG) emissions reductions and adaptation efforts;
   2. Require program efforts including, but not limited to, working with and coordinating local and regional efforts for climate adaptation and resilience; and,
   3. Maintain a continued data clearinghouse on climate change and climate adaptation for the purposes of facilitating educated state and local policy decisions.

THIS BILL:

1. Declares it is the intent of the Legislature that the Secretary leads the state’s climate adaptation strategy.
2. Requires the Plan to include all of the following:
   1. A review of the progress made implementing past plans and an evaluation of each lead agency’s lead adaptation efforts; and,
   2. A detailed description of the framework developed by the Secretary.
3. Requires, on or before July 1, 2021, the Secretary to review the Plan and develop a framework that does all of the following:
   1. Makes recommendations for actions that are necessary to prepare the state for the most significant climate change impacts modeled for 2025, 2050, and beyond;
   2. Identifies and provides for special protections for vulnerable communities and industries that are disproportionately impacted by climate change;
   3. Develops timetables and metrics to measure progress in achieving the framework; and,
   4. Establishes actions for community and economic resiliency, the ocean and coast, and terrestrial ecosystems.
4. Requires each state agency identified in the framework to report to the Secretary on progress completing the recommendations and actions.
5. In implementing the framework, requires state agencies to collaboratively engage with regional entities, including local agencies and communities, to enhance policy and funding coordination and promote regional solutions and implementation.
6. Requires the state to proactively engage disenfranchised communities that have been disproportionately impacted in planning and project development to ensure benefits to these regions while preventing potentially unintended consequences from land use and community development decisions.
7. Requires the Secretary to coordinate with the Insurance Commissioner on developing policies for industry to provide reduced premiums for projects and development that improve resiliency.
8. Establishes the AREVEA to allocate money to provide financial assistance in the form of grants and financing for climate adaptation projects that achieve the recommendations and actions called for in the framework.
9. Requires NRA, in consultation with the Treasurer and the Office of Planning and Research, to develop grants and innovative financial mechanisms such as loans to implement the recommendations and actions called for in the framework. Requires NRA, when developing and adopting the grants and innovative financial mechanisms guidelines and criteria to do all of the following:
   1. Leverage local, state, federal, and private funding sources to maximize the impact, including the ability to pool these moneys into the AREVEA;
   2. Prioritize projects with multibenefits, including water supply and efficiency, natural infrastructure, economic development, habitat enhancement, and community revitalization;
   3. Maximize benefits to vulnerable communities;
   4. Seek to achieve a portfolio approach to funding that supports a diverse set of projects;
   5. Provide technical assistance and capacity building support;
   6. Use regional collaboration to guide projects; and,
   7. Support, when appropriate, projects and programs related to the state’s adaptation efforts.
10. Requires, when allocating money in the AREVEA, the NRA to use the following schedule:
    1. At least 20% of the money be allocated to support low-income communities;
    2. At least 10% of the money be allocated to support ICARP;
    3. At least 5% of the money be allocated to support workforce training programs that prevent or restore fire-impacted watersheds;
    4. At least 20% of the moneys be allocated to support infrastructure and habitat enhancement projects that protect ocean and coastal resources;
    5. At least 10% of the money be allocated to the Wildlife Conservation Board and state conservancies for the purposes of climate resiliency projects; and,
    6. At least 1% of the money be allocated to the California Conservation Corps and certified community conservation corps.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

California has taken leadership to create multiple adaptation frameworks but lacks statutory guidance on critical priority actions and timelines to protect our state. Additionally, it still does not have a funded, prioritized and comprehensive statutory plan to effectively deal with those effects.

This bill would remedy this critical issue by providing legislative guidance and oversight to state agencies on priority adaptation actions and investments. The bill would build off existing science and planning efforts at Office of Planning and Research, the Natural Resources Agency, and other state departments. It would also establish innovative financing strategies that attract private funds and maximize public funds.

1. Adaptation. In 2009, the NRA described adaptation as a relatively new concept in California policy and stated the term means, “efforts that respond to the impacts of climate change – adjustments in natural or human systems to actual or expected climate changes to minimize harm or take advantage of beneficial opportunities.”

California’s adaptation efforts can be traced back to 2008, when Governor Schwarzenegger ordered the NRA, through the Climate Action Team, to coordinate with local, regional, state, federal, public, and private entities to develop, by 2009, the state’s Climate Adaptation Strategy. Governor Schwarzenegger’s Executive Order S-13-08 required the strategy to summarize the best known science on climate change impacts for California, assess California's vulnerability to the identified impacts, and outline solutions that can be implemented within and across state agencies to promote resiliency. As a result, NRA drafted The 2009 California Climate Adaptation Strategy. The state’s Climate Adaptation Strategy represents the work of seven sector-specific working groups led by 12 state agencies, boards, commissions, and numerous stakeholders. The state’s Climate Adaptation Strategy proposes a comprehensive set of recommendations designed to inform and guide California decision makers as they begin to develop policies that will protect the state, its residents, and its resources from a range of climate change impacts. In July of 2014, NRA released an update to the 2009 California Climate Adaptation Strategy Safeguarding California: Reducing Climate Risk. AB 1482 (Gordon), Chapter 603, Statutes of 2015, required updates to the Plan every three years, which was done last in 2018.

Climate risks in California include sea level rise, changes in precipitation that increase the risk of both drought and flooding, and increases in temperatures that can affect air quality and habitat. California is responding to these risks through various efforts, including the recently passed parks (Proposition 68) and water bonds (Proposition 1), which allocated significant resources to adaptation, the California State Coastal Conservancy’s Climate Ready Program, and the Wildlife Conservation Board’s Climate Adaptation and Resiliency Program.

In addition, the Coastal Commission (Commission) has been working with coastal zone local governments to update their local coastal programs to address shoreline hazards and sea level rise. The Commission has also released a Draft Sea Level Rise Policy Guidance document that provides an overview of best available science on sea level rise for California and recommended steps for addressing sea level rise in Commission planning and regulatory actions. This will help coastal local governments to make planning decisions that will take into account sea level rise and identify infrastructure and property that is at risk.

1. Related legislation. SB 168 (Wieckowski) establishes the Chief Climate Resilience Officer in OPR (1) to be appointed by, and serve at the pleasure of, the Governor, and (2) with the responsibility to serve as the statewide lead for the planning and coordination of climate adaptation policy implementation in California with duties, as specified. This bill is awaiting hearing in the Senate Natural Resources and Water Committee.
   

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of Local Conservation Corps

California Coastkeeper Alliance

Community Nature Connection

Endangered Habitats League

Friends of the LA River

Land Trust of Santa Cruz County

Local Government Commission

Madrone Audubon Society

Mammoth Lakes Trails and Public Access Foundation

Midpeninsula Regional Open Space District

Paula Lane Action Network

Placer Land Trust

Public Health Advocates

Santa Clara Valley Open Space Authority

Save the Redwoods League

Sierra Nevada Journeys

Surfrider Foundation

The Ocean Conservancy

Opposition

None on file

Analysis Prepared by: Michael Jarred / NAT. RES. /