**Testimony of Mike Chrisman**

**Secretary for Resources**

**California Resources Agency**

**Before the**

**Senate Committee on Commerce, Science and Transportation**

**National Ocean Policy Study**

**August 3, 2006**

**[Introduction]{.underline}**

Good morning Mr. Chairman and Members of the Subcommittee. My name is
Mike Chrisman, and I am the California Secretary for Resources and a
member of Governor Arnold Schwarzenegger's cabinet. I also serve as
chair of the California Ocean Protection Council and as Vice-Chair of
the Coastal States Organization. Thank you for holding this important
hearing this afternoon and for inviting me to testify.

Let me start by saying that the 35 coastal states, territories, and
commonwealths that are members of the Coastal States Organization are at
the forefront of ocean and coastal management in this nation. Whether
it's a Salmon fishing closure off California, a hurricane off the Gulf
States, new energy proposals off the northeast coast, or coral bleaching
in the pacific islands, states are on the front lines of these issues.
Our ocean and coastal resources are not only important to us at the
state level, but to citizens throughout this nation. The National Ocean
Economic Study determined that ocean dependent industry in California
alone contributed \$43 billion to the state and national economy in
2002. Of course the value of having safe places to swim, healthy marine
resources and fisheries, wide sandy beaches, or spectacular rocky
headlands and shorelines is difficult to quantify, but the benefits of
these resources are clearly substantial.

Coastal states are leading the nation in the management of these
resources, but we cannot bear this burden alone. I'd like to provide you
with some background about California and the activities of some other
coastal states and then focus my remarks on some important national
issues for your consideration.

Governor Arnold Schwarzenegger moved rapidly to address ocean and
coastal issues in California. In 2004, we held a California Ocean Summit
to obtain the views of experts from academia, industry, and the public
on the draft report of the U.S. Commission on Ocean Policy. That
technical review provided the basis for the Governor's comments on this
document. The Governor strongly concurred with the preliminary findings
by the U.S. Commission that the oceans were in trouble and in need of
assistance from all levels of government, academia, the private sector,
and the public. The Governor's comments addressed governance; economic
sustainability; research, education, and technology development; and
stewardship.

The Governor supports the call for greater federal involvement, funding
and directed action on these issues. However, the Governor also made a
strong commitment for California leadership and action. He directed me
and my counterpart at the California Environmental Protection Agency to
produce a California ocean action plan within 90 days. On October 18,
2004, Governor Schwarzenegger released his ocean action plan titled,
"Protecting Our Ocean: California's Action Strategy" on the shores of
the Point Lobos Marine Reserve in central California. Since the release
of that report some major actions include:

-   The Governor signed the California Ocean Protection Act, which
    created the California Ocean Protection Council with \$26.2 million
    to begin operations.

-   The Governor also signed legislation addressing issues such as
    bottom trawling, prohibiting certain air and water discharges from
    cruise ships, requiring water quality monitoring in San Francisco
    Bay, and most recently he signed the California Sustainable Oceans
    Act to address the impacts of new aquaculture operations off the
    coast.

-   The Ocean Protection Council approved more than \$17 million in
    ocean and coastal projects dealing with coastal water quality,
    marine research, sea floor mapping, new ecosystem-based management
    pilot projects, invasive species management, market-based fishery
    approaches, environmental review of aquaculture practices, and more.

-   The Council produced an "Information, Research, and Outreach"
    strategy that Admiral James Watkins and Leon Panetta identified as a
    model for the nation.

-   California sponsored an Ocean Economic Summit and released the
    National Ocean Economic Program report on the value of ocean
    dependent industry in California.

-   California has committed \$21million to develop an ocean currents
    monitoring system to help contribute to the call for such ocean
    observation systems throughout the nation's coastlines.

-   California set in motion a new and workable process for establishing
    networks of marine protected areas off our coastline, and our Fish
    and Game Commission will be evaluating the recommendations for the
    first new designations along the Central California coast this
    summer and fall.

Similar efforts are occurring throughout the nation. A few examples
include:

-   Alaska Governor Murkowski created the Alaska Ocean Policy Cabinet to
    advise the Governor on ocean and coastal issues.

-   In Washington, the Puget Sound Partnership was formed with 14
    members, four legislative liaisons and co-chaired by the Governor to
    accelerate the protection and restoration of the Puget Sound and the
    Hood Canal.

-   The Gulf of Mexico Alliance was formed by five Gulf Governors to
    focus efforts to address nutrient loading, water quality, wetland
    restoration, habitat management, and environmental education.

-   The Great Lakes Regional Collaboration was formed by the Great Lakes
    Governors to address sediment issues, coastal health, habitats,
    invasive species, non-point source pollution and other issues.

-   The Gulf of Maine Council formed in 1989 launched a new mapping
    initiative to conduct comprehensive sea floor mapping throughout the
    region.

**Western Governor's Association -- Ocean Resolution**

On June 13, 2006, the Western Governors Association, made up of 21
western U.S. states, territorial, and commonwealth governors adopted a
new Ocean resolution sponsored by Governor Arnold Schwarzenegger. The
Governors recognize the compelling need for action to address ocean and
coastal issues at the international, national, state and regional
levels. The Governors have identified the following goals:

a.  Stewardship - To assess, conserve, restore, sustain and manage ocean
    resources and the ocean ecosystem.

b.  Economic Sustainability - To encourage environmentally sound,
    sustainable, and economically beneficial ocean resource development
    activities.

c.  Research, Education and Technology - To advance research, sound
    science, education programs, and technology developments to meet
    future needs and uses of the ocean.

d.  Jurisdiction and Ownership - To maximize interests of states,
    commonwealths, and territories, within State Tidelands, the
    territorial sea, and the exclusive economic zone.

> The Western Governors believe that key management questions can be
> better addressed through a more coordinated and accountable approach a
> at the federal level with full participation and cooperation with
> coastal states. Key management issues of concern include:

-   ocean and coastal habitats,

-   water quality concerns,

-   coastal hazards,

-   maritime commerce,

-   tourism, and

-   research

The Governors are calling for:

-   Ratification of the Law of the Sea Treaty,

-   Reduced fragmentation of government processes at the federal level,

-   Re-authorization of the Coastal Zone Management Act and other key
    federal statutes,

-   to provide sufficient funding and technical assistance to coastal
    states, and

-   to support environmentally sound development and sustainable
    resource harvest activities.

It's clear that coastal states are taking significant steps to improve
ocean and coastal management, but need the assistance and partnership of
the federal government to continue to make progress in these areas.

The following testimony discusses ocean and coastal management issues
that California and other states are current facing and suggests ways
that the federal government can help.

**[Ocean and Coastal Governance]{.underline}**

The U.S. and Pew Ocean Commission reports identified the issues with
fragmentation at the federal level regarding ocean and coastal
governance. These reports emphasized the need to take bold new
initiatives such as adopting a clear national ocean policy and setting
up a permanent national ocean council to provide the level of leadership
that will be necessary to address the problems facing our nation's
coasts and oceans. For coastal states, it is increasingly difficult to
determine how best to engage the federal government on complex
management issues facing us. California and many other states have
addressed this issue by at the state level passing legislation to
clarify state ocean policy and by establishing executive level ocean
councils. However, it this point the federal government has failed to
take this needed step.

There is renewed interest and momentum in the United States for regional
approaches to protect and manage ocean and coastal resources. Both the
U.S. Commission on Ocean Policy (USCOP) and the Pew Oceans Commission
(POC) reports recommended the initiation of regional approaches to ocean
and coastal management throughout the nation. Regional approaches can
help resource managers account for more of the factors that affect a
particular resource or an ecosystem, not just the ones that fall with in
a particular jurisdiction. Regional approaches such as the ones
mentioned above in the Gulf of Mexico, the Great Lakes and the Gulf of
Maine are driven by the activities of coastal states. The states of
California, Oregon, and Washington are working together to develop a
regional partnership.

**Legislative Proposal.** Currently, the federal government lacks a
clear ocean policy set in statute, a statutorily enabled federal council
dedicated to reducing fragmentation and improving coordination, or a
framework and support for regional ocean governance efforts. Therefore,
we recommend that congress consider legislation to provide the level of
federal assistance necessary to achieve these goals.

We believe that there are three necessary components for legislation
that will advance thoughtful ocean governance:

1\) A national ocean policy,

2\) A regional governance structure with the states and the federal
government in partnership, and

3\) Improved federal coordination.

A national ocean policy is needed to direct the management of ocean
resources for the nation as a whole. Regional structures are needed to
implement that direction and to address regional priorities. Federal
coordination is needed so all of the various arms of the United States
government are working in concert with their state partners and not at
cross purposes.

California and other states, through our membership in the Coastal
States Organization, would welcome the opportunity to work with this
Committee on that legislation.

**[Coastal Zone Management Act]{.underline}**

The Coastal Zone Management Act (CZMA) established a partnership between
the federal government and coastal states regarding the management and
protection of the nation's coastlines. This statute provides a national
template for the nation's coastlines with key management objectives to
be implemented. In this partnership coastal states develop coastal
management plans that are then certified by the federal government as
being consistent with these federal standards. Unfortunately, the CZMA
is long overdue for re-authorization. A key objective of California and
the Coastal States Organization is to seek re-authorization and
reinvigoration of this important coastal management statute. We urge
that this re-authorization be a priority in the next of Congress.

**[Ocean and Coastal Economics]{.underline}**

Many coastal states have conducted analyses of the economic contribution
of the ocean and coast to the state and national economies. The findings
of these analyses have demonstrated that our nation's ocean and coasts
provide substantial economic benefits directly through coastal port
activity, tourism, fishing, and other economic generators. Although
other sectors of the national economy such as the agricultural industry
are monitored nationally on an annual basis there is no similar
accounting system in place in the United State to regularly assess the
economic benefits derived from the ocean and coast. Such a system should
be incorporated in any new national ocean governance framework that is
crafted at the national level.

**[Research, Monitoring, and Ocean Observations]{.underline}**

Research should be the foundation of good public policy, but often it is
not. The federal government has established the Subcommittee on
Integrated Management of Ocean Resources (SIMOR) and the Joint
Sub-Committee on Science and Ocean Technology (JSOST) to help develop a
comprehensive and robust system for research, monitoring, and ocean
observations. We applaud these efforts and have directly participated in
the Federal/State Task Team (FSTT). Recently I provided opening comments
at the JSOST meeting in Denver. However, as the U.S. and Pew Ocean
Commission reports pointed out, our national investment in ocean and
coastal research, monitoring, and ocean observations in inadequate. We
hope that the federal government will use these processes to determine a
clear path for research, monitoring, and ocean observations and also
provide the resources necessary to support them.

**[Ocean Education and Outreach]{.underline}**

Coastal and Ocean education exist at a variety of levels ranging from
technical doctorate and field programs to K-12 level education, and
programs run by state and federal agencies, to those run by non-profit
groups. In California, such programs exist through the University of
California, the California State University System, private
institutions, state programs through agencies like State Parks and the
Coastal Commission, and federal programs such as the National Marine
Sanctuary Program, the National Estuary Program, and the National
estuarine Research Reserve Program. California is currently in the
process of ensuring that ocean and coastal education is included in the
environmental principles and concepts being developed to implement the
Education and the Environment Initiative in California. This initiative
is designed to incorporate environmental principles and concepts into
the K-12 curriculum for California children.

Unfortunately, instead of increasing funding for key federal ocean and
coastal programs, in most cases federal funding for these programs is
decreasing. For example, NOAA's National Marine Sanctuary Program
experienced a dramatic reduction in funding in the FY 2006
appropriations cycle, dropping from \$51 million in FY 2005 to \$35
million in FY 2006. This 30% budget reduction is significant and cannot
be sustained without impacts to the services and programs provided by
the sanctuary program to communities around the country, including
California's central coast. Congress should evaluate closely the funding
levels necessary to sustain key federal ocean and coastal management
programs that have proven to be important components of ocean and
coastal management at the state level.

**[Law of the Sea]{.underline}**

Governor Schwarzenegger has joined many other governors throughout the
nation, leaders in congress, and members of industry, the academic
community, and the public in calling for the United States to provide
advice and consent for the U.S. accession to the United Nations
Convention on the Law of the Sea Treaty. This will once again allow the
United States to assume a leadership role in international forums
dealing with scientific research, deep sea mining, and a wide variety of
environmental protection issues.

**[California Salmon Issues]{.underline}**

In June, Governor Schwarzenegger declared a state of emergency in 13
northern and central California counties, from Santa Barbara to
Siskiyou, affected by the recently restricted salmon fishing season. The
restricted season will significantly impact California's commercial
ocean salmon fisheries and result in severe economic losses throughout
the state. This also threatens subsistence and cultural fisheries of the
Yurok Tribe, Hoopa Valley Tribe and the Karuk Tribe. The economic impact
of a lost season this year for both California and Oregon could be \$150
million.

Governor Schwarzenegger is sponsoring legislation to provide more than
\$35 million in economic relief to fishermen and businesses affected by
the partial salmon season closure. Specifically, the proposal provides
\$5 million in grants and \$20 million for a zero interest revolving
loan program.  Additionally, the Governor has proposed expanding the
Small Business Expansion Fund by \$1 million to leverage a total of
nearly \$20 million in loan guarantees. Governor Schwarzenegger also
asked the Department of Fish and Game to reimburse all impacted
fishermen for the cost of their commercial salmon fishing licenses, and
to waive fees for next year\'s license.

I am encouraged by recent developments that will bring much-needed
federal aid to fishing-dependent communities in California, including
\$10 million in aid approved by the Senate Appropriations Committee.
This relief, along with the recent fishery disaster declaration by the
Secretary for Commerce, is a step in the right direction. But much more
work needs to be done to provide full financial relief to California's
salmon fishermen and fishing-dependent communities, and to insure the
long-term sustainability of this fishery.

While the Schwarzenegger administration is working to address the
immediate impacts of a reduced salmon fishing season, we realize that
our work toward long-term solutions must continue. The administration
has budgeted more than \$21 million since 2003 for grants supporting
critical salmon and steelhead habitat restoration projects. Governor
Schwarzenegger also joined the Governor of Oregon in signing the Klamath
River Watershed Coordination Agreement to develop a long-term management
approach, common vision and integrated planning for the Klamath Basin.
There is no easy solution to this challenge. Poor ocean conditions,
drought, water management, disease, and unsuitable spawning habitat have
plagued Klamath River Chinook Salmon for several years. These issues
cross geographic and bureaucratic boundaries. However, this is the kind
of problem that will require assistance from the federal government and
a long term partnership between federal, state, and local governments,
and all the other impacted stakeholders.

**[Conclusion]{.underline}**

Thank you again for the opportunity to address the Subcommittee. The
State of California and the Coastal States Organization stands ready to
work with you on making important improvements to ocean and coastal
management. We believe that will require bold new steps in establishing
a clear federal policy, to provide sufficient funding, and to identify a
clear path for coastal states or others to access it. We look forward to
the advancements that we can make in the coming year.