BILL NUMBER: AB 1507	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 7, 2010
	AMENDED IN SENATE  JUNE 25, 2009

INTRODUCED BY   Assembly Member  Block   Lieu

    (   Coauthor:  
Assembly Member   Chesbro  )


                        FEBRUARY 27, 2009

    An act to amend Sections 42101.1, 42101.3, 42102, 42103,
42106, and 42107 of, to add Section 42101.4 to, to repeal Sections
42101.2 and 42105 of, and to repeal and add Section 42101 of, the
Public Resources Code, relating to hazardous materials. 
 An act to amend Section 44283 of, and to add Sections 39626.1
and 44287.2 to, the Health and Safety Code, relating to air
pollution. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1507, as amended,  Block   Lieu  .
 Hazardous materials: metal plating facilities. 
 Motor vehicle emission reduction projects.  
   Existing law establishes the Carl Moyer Memorial Air Quality
Standards Attainment Program and the Goods Movement Emission
Reduction Program, which provide state funds to reduce emissions from
motor vehicles, as provided.  
   This bill would require the State Air Resources Board, by July 1,
2011, to revise project guidelines to allow funds from specified
programs and funding sources to be used for a project also funded
under the Carl Moyer Memorial Air Quality Standards Attainment
Program or the Goods Movement Emission Reduction Program without
those additional public funds being factored into the criteria
emission reduction cost-effectiveness calculations under either of
those programs.  
   Existing law establishes, until January 1, 2012, a loan guarantee
program, developed and administered by the Business, Transportation
and Housing Agency, to assist chrome plating facilities to purchase
high performance environmental control equipment or technologies.
Existing law establishes in the State Treasury the Chrome Plating
Pollution Prevention Fund to receive deposits of state, federal, and
local governmental money, and other public or private money, for
expenditure by the agency, upon appropriation by the Legislature, to
make loan guarantees available to eligible metal plating facilities.
 
   This bill would revise and recast the program to instead establish
until January 1, 2014, the Chrome Plating and Metal Finishing
Pollution Prevention Grant Program to be administered by the
Department of Toxic Substances Control. The bill would rename the
above fund the Chrome Plating and Metal Finishing Pollution
Prevention Fund. The department would be authorized to expend, upon
appropriation by the Legislature, money in the fund to make grants
that do not exceed 50% of the project cost or $75,000, whichever is
less to metal plating facilities to be used for pollution prevention
improvements. The bill would prohibit the department from awarding
additional grants upon the exhaustion of moneys in the fund. The bill
would also make conforming changes. 
   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.    Section 39626.1 is added to the 
 Health and Safety Code   , to read:  
   39626.1.  (a) By July 1, 2011, the state board shall revise
project guidelines pursuant to Section 39626 to allow funds from all
of the following programs or funding sources to be used for a project
also funded under this chapter without those additional public funds
being factored into the criteria emission reduction
cost-effectiveness calculations:
   (1) Federal funding from programs designed to reduce greenhouse
gas emissions.
   (2) Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5).

   (b) Nothing in this section authorizes the expenditure of funds
for a project that does not meet all of the requirements of this
chapter, including requirements that require cost sharing or matching
of funds. Subdivision (a) does not apply if the additional
expenditure would not provide an incremental air quality, or
greenhouse gas emission reduction, benefit greater than what would
otherwise be achieved by the program. The state board shall not
exclude funds from the cost-effectiveness calculation pursuant to
subdivision (a), if excluding those funds would reduce the emission
reduction benefits expected to be achieved from this chapter, federal
greenhouse gas emission reduction programs, or the Alternative and
Renewable Fuel and Vehicle Technology Program. 
   SEC. 2.    Section 44283 of the   Health and
Safety Code   , as amended by   Section 1 of
Chapter 627 of the Statutes of 2006, is amended to read: 
   44283.  (a) Grants shall not be made for projects with a
cost-effectiveness, calculated in accordance with this section, of
more than thirteen thousand six hundred dollars ($13,600) per ton of
NOx reduced in California or a higher value that reflects state
consumer price index adjustments on or after January 1, 2006, as
determined by the state board. For projects obtaining reactive
organic gas and particulate matter reductions, the state board shall
determine appropriate adjustment factors to calculate a weighted
cost-effectiveness.
   (b) Only covered emission reductions occurring in this state shall
be included in the cost-effectiveness determination. The extent to
which emissions generated at sea contribute to air quality in
California nonattainment areas shall be incorporated into these
methodologies based on a reasonable assessment of currently available
information and modeling assumptions.
   (c) The state board shall develop protocols for calculating the
surplus covered emission reductions in California from representative
project types over the life of the project.
   (d) The cost of the covered emission reduction is the amount of
the grant from the program, including matching funds provided
pursuant to subdivision (e) of Section 44287, plus any other state
funds, or funds under the district's budget authority or fiduciary
control, provided toward the project  , not including funds
described in paragraphs (1) and (2) of subdivision (a) of Section
44287.2  . The state board shall establish reasonable
methodologies for evaluating project cost-effectiveness, consistent
with the definition contained in paragraph (4) of subdivision (a) of
Section 44275, and with accepted methods, taking into account a fair
and reasonable discount rate or time value of public funds.
   (e) A grant shall not be made that, net of taxes, provides the
applicant with funds in excess of the incremental cost of the
project. Incremental lease costs may be capitalized according to
guidelines adopted by the state board so that these incremental costs
may be offset by a one-time grant award.
   (f) Funds under a district's budget authority or fiduciary control
may be used to pay for the incremental cost of liquid or gaseous
fuel, other than standard gasoline or diesel, which is integral to a
covered emission reducing technology that is part of a project
receiving grant funding under the program. The fuel shall be approved
for sale by the state board. The incremental fuel cost over the
expected lifetime of the vehicle may be offset by the district if the
project as a whole, including the incremental fuel cost, meets all
of the requirements of this chapter, including the maximum allowed
cost-effectiveness. The state board shall develop an appropriate
methodology for converting incremental fuel costs over the vehicle
lifetime into an initial cost for the purposes of determining project
cost-effectiveness. Incremental fuel costs  may 
 shall  not be included in project costs for fuels dispensed
from any facility that was funded, in whole or in part, from the
fund.
   (g) For purposes of determining any grant amount pursuant to this
chapter, the incremental cost of any new purchase, retrofit, repower,
or add-on equipment shall be reduced by the value of any current
financial incentive that directly reduces the project price,
including any tax credits or deductions, grants, or other public
financial assistance. Project proponents applying for funding shall
be required to state in their application any other public financial
assistance to the project.
   (h) For projects that would repower offroad equipment by replacing
uncontrolled diesel engines with new, certified diesel engines, the
state board may establish maximum grant award amounts per repower. A
repower project shall also be subject to the incremental cost maximum
pursuant to subdivision (e).
   (i) After study of available emission reduction technologies and
costs and after public notice and comment, the state board may reduce
the values of the maximum grant award criteria stated in this
section to improve the ability of the program to achieve its goals.
Every year the state board shall adjust the maximum
cost-effectiveness amount established in subdivision (a) and any
per-project maximum set by the state board pursuant to subdivision
(h) to account for inflation.
   (j)  This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
   SEC. 3.    Section 44283 of the   Health and
Safety Code   , as amended by   Section 2 of
Chapter 627 of the Statutes of 2006, is amended to read: 
   44283.  (a) Grants shall not be made for projects with a
cost-effectiveness, calculated in accordance with this section, of
more than twelve thousand dollars ($12,000) per ton of NOx reduced in
California or a higher value that reflects state consumer price
index adjustments on or after January 1, 2015, as determined by the
state board.
   (b) Only NOx reductions occurring in this state shall be included
in the cost-effectiveness determination. The extent to which
emissions generated at sea contribute to air quality in California
nonattainment areas shall be incorporated into these methodologies
based on a reasonable assessment of currently available information
and modeling assumptions.
   (c) The state board shall develop protocols for calculating the
surplus NOx reductions in California from representative project
types over the life of the project.
   (d) The cost of the NOx reduction is the amount of the grant from
the program, including matching funds provided pursuant to
subdivision (e) of Section 44287, plus any other state funds, or
funds under the district's budget authority or fiduciary control,
provided toward the project  , not including funds described in
paragraphs (1) and (2) of subdivision (a) of Section 44287.2  .
The state board shall establish reasonable methodologies for
evaluating project cost-effectiveness, consistent with the definition
contained in  paragraph (4) of  subdivision  (c)
  (a)  of Section 44275, and with accepted methods,
taking into account a fair and reasonable discount rate or time
value of public funds.
   (e) A grant shall not be made that, net of taxes, provides the
applicant with funds in excess of the incremental cost of the
project. Incremental lease costs may be capitalized according to
guidelines adopted by the state board so that these incremental costs
may be offset by a one-time grant award.
   (f) Funds under a district's budget authority or fiduciary control
may be used to pay for the incremental cost of liquid or gaseous
fuel, other than standard gasoline or diesel, which is integral to a
NOx reducing technology that is part of a project receiving grant
funding under the program. The fuel shall be approved for sale by the
state board. The incremental fuel cost over the expected lifetime of
the vehicle may be offset by the district if the project as a whole,
including the incremental fuel cost, meets all of the requirements
of this chapter, including the maximum allowed cost-effectiveness.
The state board shall develop an appropriate methodology for
converting incremental fuel costs over the vehicle lifetime into an
initial cost for the purposes of determining project
cost-effectiveness. Incremental fuel costs  may 
 shall  not be included in project costs for fuels dispensed
from any facility that was funded, in whole or in part, from the
fund.
   (g) For purposes of determining any grant amount pursuant to this
chapter, the incremental cost of any new purchase, retrofit, repower,
or add-on equipment shall be reduced by the value of any current
financial incentive that directly reduces the project price,
including any tax credits or deductions, grants, or other public
financial assistance. Project proponents applying for funding shall
be required to state in their application any other public financial
assistance to the project.
   (h) For projects that would repower offroad equipment by replacing
uncontrolled diesel engines with new, certified diesel engines, the
state board may establish maximum grant award amounts per repower. A
repower project shall also be subject to the incremental cost maximum
pursuant to subdivision (e).
   (i) After study of available emission reduction technologies and
costs and after public notice and comment, the state board may reduce
the values of the maximum grant award criteria stated in this
section to improve the ability of the program to achieve its goals.
Every year the state board shall adjust the maximum
cost-effectiveness amount established in subdivision (a) and any
per-project maximum set by the state board pursuant to subdivision
(h) to account for inflation.
   (j) This section shall become operative on January 1, 2015.
   SEC. 4.    Section 44287.2 is added to the  
Health and Safety Code   , to read:  
   44287.2.  (a) By July 1, 2011, the state board shall revise
project grant criteria and guidelines pursuant to Section 44287 to
allow funds from all of the following programs or funding sources to
be used for a project also funded under this chapter without those
additional public funds being factored into the criteria emission
reduction cost-effectiveness calculations:
   (1) Federal funding from programs designed to reduce greenhouse
gas emissions.
   (2) Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9).
   (b) Nothing in this section authorizes the expenditure of funds
for a project that does not meet all of the requirements of this
chapter, including requirements that require cost sharing or matching
of funds. Subdivision (a) does not apply if the additional
expenditure would not provide an incremental air quality, or
greenhouse gas emission reduction, benefit greater than what would
otherwise be achieved by the program. The state board shall not
exclude funds from the cost-effectiveness calculation pursuant to
subdivision (a), if excluding those funds would reduce the emission
reduction benefits expected to be achieved from this chapter, federal
greenhouse gas emission reduction programs, or the Alternative and
Renewable Fuel and Vehicle Technology Program.  
  SECTION 1.    Section 42101 of the Public
Resources Code is repealed.  
  SEC. 2.    Section 42101 is added to the Public
Resources Code, to read:
   42101.  There is hereby created in the department the Chrome
Plating and Metal Finishing Pollution Prevention Grant Program.
 
  SEC. 3.    Section 42101.1 of the Public Resources
Code is amended to read:
   42101.1.  The department shall only make grants available to
applicants that meet all of the following eligibility requirements:
   (a) The applicant is a small business, as defined in subdivision
(d) of Section 14837 of the Government Code.
   (b) The applicant owns or operates a metal plating facility.
   (c) The applicant satisfies one of the following conditions:
   (1) Has completed or is currently participating in the Model Shop
Program for metal platers.
   (2) Has completed or is currently participating in the National
Metal Finishing Strategic Goals Program.
   (3) Is participating in a green business program whose goals are
consistent with the pollution prevention and natural resource
conservation elements of the Model Shop Program.
   (4) Is certified as a green business whose goals are consistent
with the pollution prevention and natural resource conservation
elements of the Model Shop Program.
   (d) The applicant demonstrates that moneys obtained pursuant to
this section will be used for pollution prevention improvement that
will allow the facility to exceed existing regulatory requirements,
and that the facility has no pending local, state, or federal
enforcement or correction actions.
   (e) For the purposes of this section, "pollution prevention
improvement" means the retrofitting of a metal plating facility or
equipment that results in the reduction of chromium or other toxic
metal emissions to a level that exceeds existing regulatory
requirements.  
  SEC. 4.    Section 42101.2 of the Public Resources
Code is repealed.  
  SEC. 5.    Section 42101.3 of the Public Resources
Code is amended to read:
   42101.3.  The department shall carry out all of the requirements
of this chapter and shall consult with the California Environmental
Protection Agency, local environmental regulatory agencies, and other
interested parties, as needed.  
  SEC. 6.    Section 42101.4 is added to the Public
Resources Code, to read:
   42101.4.  (a) The department may issue a grant to an applicant
pursuant to Section 42101.1, upon the applicant's completion of
pollution prevention improvements to the applicant's metal plating
facility.
   (b) The amount of the grant issued pursuant to Section 42101.1
shall be determined based on the proximity to sensitive receptors,
potential for toxic contaminant reduction, the facility's past record
of pollution prevention involvement, and other factors the
department deems pertinent. The amount of the grant shall not exceed
50 percent of the total project cost or seventy-five thousand dollars
($75,000), whichever is less.
   (c) Upon the exhaustion of moneys in the Chrome Plating and Metal
Finishing Pollution Prevention Fund, the department shall not make
any additional grants.  
  SEC. 7.    Section 42102 of the Public Resources
Code is amended to read:
   42102.  (a) There is hereby created, in the State Treasury, the
Chrome Plating and Metal Finishing Pollution Prevention Fund, for the
sole purpose of receiving deposits of state, federal, or local
government money, and other public or private money, for expenditure,
upon appropriation by the Legislature, by the Department of Toxic
Substances Control.
   (b) Notwithstanding Section 16305.7 of the Government Code, all
interest or other increments resulting from the investment of the
moneys in the Chrome Plating and Metal Finishing Pollution Prevention
Fund pursuant to Article 4 (commencing with Section 16470) of
Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code
shall be deposited in the fund.
   (c) The moneys in the fund shall be expended by the department,
upon appropriation by the Legislature, to make grants, to support the
Model Shop Program pursuant to this chapter, and to pay for
administrative costs associated with the implementation of this
chapter. No more than 5 percent of moneys deposited into the fund may
be used for administrative purposes.  
  SEC. 8.    Section 42103 of the Public Resources
Code is amended to read:
   42103.  The department may consult with the air board and water
board, and shall prepare and adopt criteria and procedures for
evaluating applications for grants awarded pursuant to this chapter,
as well as establish the appropriate requirements to determine that
the equipment purchased or proposed to be purchased assists the small
business in exceeding new or existing applicable environmental
standards. In developing these criteria, the department shall
specifically consider proximity of the facility to sensitive
receptors and residences and coordinate with existing enforcement
activities. The department shall give priority to need-based grants
for smaller businesses.  
  SEC. 9.    Section 42105 of the Public Resources
Code is repealed.  
  SEC. 10.    Section 42106 of the Public Resources
Code is amended to read:
   42106.  (a) The department, in consultation with the air board and
water board, may adopt regulations to implement this chapter. The
department may adopt emergency regulations to implement the grant
program in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, and
for the purposes of that chapter, including Section 11346.1 of the
Government Code, the adoption of these regulations is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health,
and safety, and general welfare. Notwithstanding Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, an emergency regulation adopted by the board
pursuant to this section shall be filed with, but not repealed by,
the Office of Administrative Law, and shall remain in effect until
revised by the department.
   (b) Regulations adopted by the agency pursuant to this section
that are in effect on or before January 1, 2010, shall remain in
effect until revised by the department.  
  SEC. 11.    Section 42107 of the Public Resources
Code is amended to read:
   42107.  (a) This chapter shall remain in effect only until January
1, 2014, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2014, deletes or extends
that date.
   (b) All unencumbered moneys in the Chrome Plating and Metal
Finishing Pollution Prevention Fund on January 1, 2014, shall be
transferred to the General Fund.