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SR-05-08-2012-3E9 City of Santa Monier City Council Report City Council Meeting: May 8, 2012 Agenda Item: 3E To: Mayor and City Council From: Dean Kubani, Director, Office of Sustainability and the Environment Subject: Consideration of Support for Senate Bill 1066 (Lieu) — Coastal Resources: Climate Change Recommended Action Staff recommends that City Council support Senate Bill 1066 (Lieu) which would allow the California Coastal Conservancy to engage in projects that address climate change impacts to coastal resources and urban waterfronts. Executive Summary Senate Bill 1066 was introduced this legislative session by State Senator Ted Lieu to specify that the California Coastal Conservancy (Conservancy) may fund and undertake projects that address climate change and authorize the Conservancy to award grants to public agencies and non - profit organizations for these purposes. The bill is designed to correct ambiguities in current state law to make it clear that the Conservancy has the authority to address climate change and its impacts as part of its broader mission. Background The California Coastal Conservancy is a non - regulatory state agency created by the California Legislature in 1976 to serve as an intermediary between government, citizens and the private sector to help preserve and enhance the California coast for current and future generations. The Conservancy works with local governments, public agencies, non - profit organizations, and private landowners to purchase, protect, restore, and enhance coastal resources, including wetlands, streams watersheds and urban waterfronts, and to provide shoreline access to the public. The agency has undertaken more than 1,800 projects along the California coast since it was created. The majority of funding for the Conservancy is drawn from Proposition 84 bond funds approved by California voters. The Conservancy uses these funds to leverage additional money from federal and local governments and private organizations. In 2011 the 1 Conservancy supported 79 projects using $64 million of its own funds to leverage $121 million for completion of the projects. Current law states that the Conservancy has responsibility for implementing a program of agricultural protection, area restoration, and resource enhancement in the coastal zone within the guidelines established in the California Coastal Act. The conservancy has the authority to undertake plans and feasibility studies, award grants to public agencies and non - profit organizations to conduct these studies, and undertake educational projects and programs. In November 2011 the Conservancy board updated its project selection criteria to address climate change impacts. These criteria use a risk analysis approach to evaluate the ability of proposed projects to adapt to projected sea level rise and extreme weather events over time. Projects are also evaluated for their ability to reduce greenhouse gas emissions during construction. Discussion Senate Bill (SB) 1066 was introduced February 13, 2012 by State Senator Ted Lieu to: 1. Clarify the authority of the Conservancy to undertake and fund projects related to climate change such as extreme weather events, sea level rise, storm surge, beach erosion, salt water intrusion, flooding and other coastal hazards that threaten coastal communities, infrastructure and natural resources. 2. Require that the Conservancy prioritize projects that would maximize public benefits such as reducing greenhouse gas emissions; reducing hazards to harbors and ports and related jobs; preserving and enhancing coastal wetlands and natural lands; conserving biodiversity; safeguarding jobs related to the coastal fisheries; and providing recreational opportunities. Existing state law does not expressly authorize the Conservancy to help address the adverse effects of climate change on coastal resources. According to the Senator's 2 office, SB 1066 is designed to correct this ambiguity in existing law to make it clear that the Conservancy has the authority to address climate change and its impacts as part of its broader mission. By clarifying this role for the Conservancy SB 1066 has the potential to enhance funding for climate change projects by capturing federal and other non -state funding sources that otherwise might not have been available. Council has historically supported efforts to address climate change and its impacts. On October 28, 2008 Council voted to join the Los Angeles Regional Collaborative on Climate Change Action and Sustainability which is a group of local government agencies, businesses, universities and non - profit organizations that work together to address climate change and its impacts in the region. Support of SB 1066 is consistent with past Council action and could potentially provide, benefits to Santa Monica in the form of funding for projects addressing climate impacts to the local coastal area. Financial Impacts& Budget Actions There are no financial impacts or budget actions associated with Council's support of this legislation. Prepared by: Dean Kubani, Director, Office of Sustainability and the Environment roved: Forwarded to Council: Dean Kubani Director, Office of Sustainability and the Environment Attachments: 1. Text of Senate Bill 1066 2. SB 1066 Fact Sheet 3 Rod Gould City Manager BILL NUMBER: SB 1066 AMENDED BILL TEXT AMENDED IN SENATE APRIL 9, 2012 AMENDED IN SENATE MARCH 26, 2012 INTRODUCED BY Senator Lieu FEBRUARY 13, 2012 An act to add Section 31113 to the Public Resources Code, relating to coastal resources. LEGISLATIVE COUNSEL'S DIGEST SB 1066, as amended, Lieu. Coastal resources: climate change. Existing law establishes the State Coastal Conservancy, which serves as a repository for coastal lands. Existing law authorizes the conservancy to, among other things, undertake projects and award grants for the purposes of restoration of areas of the coastal zone that are adversely affecting the coastal environment or are ins impeding orderly development. This bill would require the conservancy to fund and undertake projects to address climate change, giving priority to projects that maximize public benefits. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares the following: (a) California's coastal waters, waterfronts, wetlands, harbors, estuaries, bays, ports, marinas, riparian areas, beaches, and agricultural resources are important environmental and economic resources to the state. (b) The coastal economy contributes $46 billion annually to the State of California. (c) Eighty percent of California's 38 million residents live within 30 miles of the coast. (d) Sea level rise, combined with storm - driven waves, poses a direct risk to the state's coastal resources, including public and private real property and infrastructure. Rising marine waters threaten sensitive coastal areas, habitats, the survival of threatened and endangered species, beaches and other recreation areas, and urban waterfronts. (e) Commercial fisheries and fishing harbors, ports, production of seafood, and related jobs will suffer adverse impacts if steps are not taken to protect them. (f) The desirability of natural areas, riparian areas, beaches, parks, and urban areas as tourist destinations, and their concomitant economic benefit to the state, depends on protection of their scenic and recreational qualities. (g) The economic and environmental health of human and natural coastal communities depends on their resilience - -their ability to survive and rebound from adverse effects. (h) Improving the health of coastal rivers, wetlands, beaches, harbors, ports, urban waterfronts, fisheries, and agricultural resources in advance of threats can contribute to their resiliency. (i) Extensive cooperation between governmental and private entities is needed to respond adequately to the effects of climate change. (j) For well over 30 years, the State Coastal Conservancy, a nonregulatory agency established under Division 21 (commencing with Section 31000) of the Public Resources Code, has worked with public and private entities to protect, restore, and enhance coastal and marine resources and habitats, has addressed deteriorating urban waterfronts and poorly designed coastal development, and has provided public recreation facilities and access to the coast and urban waterfront areas. (k) The conservancy can further contribute to the improvement and management of the state's invaluable public and private coastal resources, and, in so doing, lessen the degradation and destruction from future effects of a changing climate on natural and built resources and related jobs. (1) Projects that protect coastal resources from climate change impacts can provide additional valuable public benefits, including, but not limited to, flood protection, improved water quality, and increases in fish and wildlife for food and recreation. (m) Existing law does not expressly authorize the State Coastal Conservancy to address climate change or its impacts, despite the anticipated adverse effects on the coast. (n) It is the intent of the Legislature that , in implementing Division 21 (commencing with Section 31000) of the Public Resources Code , the conservancy *as have adequate authority to work with local governments and private entities to address the effects of climate change on coastalresources, public and private, natural and built, including, but not limited to, coastal beaches, ports, urban waterfronts, infrastructure, the ocean, riparian areas and watersheds, fisheries, forests, wetlands, and public and private real property. (o) The conservancy's participation in addressing adverse effects on coastal resources can help to maintain property values for individuals and businesses, aid the tourist industry, and promote business and jobs by facilitating the development and protection of visitor - serving commercial facilities and amenities attractive to skilled and educated workers. (p) The conservancy's participation in addressing climate change can help to produce construction and otherjobs for Californians, both directly, through conservation and development activities, and indirectly, through increased recreational, business, and tourist use. (q) The conservancy's participation can contribute to the resiliency of the natural and built environments , including habitat, beaches, ports, and urban waterfronts, and can facilitate assisted migration of plant and animal species that lack adequate ability to adapt. (r) To the extent that this act assists the conservancy in obtaining federal and other funds, it may help reduce demand on the General Fund for coastal improvement and resilience activities. SEC. 2. Section 31113 is added to the Public Resources Code, to read: 31113. In implementing this division, the conservancy shall fund and undertake projects to address climate change, including i t Ls+ E I b projects that address extreme weather events, sea level rise, storm surge, beach and bluff erosion, salt water intrusion, flooding, and other coastal hazards that threaten coastal communities, infrastructure, and natural resources , and may award grants to public agencies and nonprofit organizations for these purposes. The conservancy shall prioritize projects that maximize public benefits , including, but not limited to, reducing emissions of greenhouse gases, reducing hazards to harbors and ports, and related jobs, preserving and enhancing coastal wetlands and natural lands, conserving biodiversity, including fish, and related jobs, and providing recreational opportunities. 3 BILL SUMMARY SB 1066 corrects an ambiguity in law to ensure that the California Coastal Conservancy, as part of its mission to use innovative entrepreneurial techniques to protect, restore, and enhance coastal resources and urban waterfi,onts, can engage in projects that address climate change impacts in these areas. Specifically, this bill would: • Clarify that the Conservancy may fund and undertake projects to address climate change and may award grants to public agencies and nonprofit organizations for these purposes; • Require that the Conservancy prioritize projects that maximize public benefits. HISTORY The Legislature created the California Coastal Conservancy in 1976 as a unique non - regulatory entity to serve as an intermediary among government, citizens, and the private sector in recognition that creative approaches are needed to preserve and enhance California's coast for future generations. The Coastal Conservancy uses innovative entrepreneurial techniques to purchase, protect, restore, and enhance coastal resources, urban waterfronts, and to provide access to the shore. The Conservancy works in partnership with local governments, other public agencies, nonprofit organizations, and private landowners to undertake more than 1,800 projects along the 1,100 mile California coastline. Projects create thriving urban waterfronts, help provide for smart development, protect and enhance coastal agriculture, improve beaches and other natural areas, and promote healthy watersheds, wetlands, riparian areas, wildlife habitat, and forests. Projects also create public access to the coast and San Francisco Bay. SB 1066 is needed to clarify that projects can address climate change impacts to coastal resources and maximize benefits to the public. PURPOSE California's coastal resources contribute over $40 billion annually to state and local funds. Climate change affects these resources and could ultimately cost the state tens of billions of dollars if not addressed. The consequences of climate change, such as extreme weather events and sea level rise, disproportionately impacts 80 percent of California's population that reside and work within 30 miles of the coast, causing major economic, ecological, physical, and social problems. Infrastructure, marinas, beaches, estuaries, coastal wetlands, and other unique coastal habitats and natural areas that drive coastal tourism and support coastal communities are at risk. Though existing law created the California Coastal Conservancy to protect and enhance coastal resources and urban waterfronts through grants and other non- regulatory means, it does not expressly authorize the Conservancy to help address the adverse effects of climate change on coastal resources. SB 1066 corrects this ambiguity by providing the Conservancy authority to address climate change and its impacts as part of its broader mission. This bill will enable the non - regulatory agency to more effectively achieve its purpose, and capture federal and other non- state funds that become available for projects that help reduce the impacts of climate change to people and natural resources along the coast. Support: The Nature Conservancy (Sponsor) Bay Area Open Space Counsel Oppose: None received. Contact: Jeff Gozzo Office of State Senator Ted Lieu Jeff.gozzo a sen.ca.gov