BILL NUMBER: AB 1532 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 1, 2012
AMENDED IN ASSEMBLY APRIL 17, 2012
INTRODUCED BY Assembly Member John A. Pérez
( Coauthors: Assembly Members
Chesbro, Dickinson, Monning, and
Skinner )
JANUARY 23, 2012
An act to add Part 8 (commencing with Section 38700) to Division
25.5 of the Health and Safety Code, relating to greenhouse gas
emissions.
LEGISLATIVE COUNSEL'S DIGEST
AB 1532, as amended, John A. Pérez. California Global Warming
Solutions Act of 2006: Greenhouse Gas Reduction Account.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emissions
reductions. The act authorizes the state board to include use of
market-based compliance mechanisms. The act authorizes the state
board to adopt a schedule of fees to be paid by the sources of
greenhouse gas emissions regulated pursuant to the act, and requires
the revenues collected pursuant to that fee schedule be deposited
into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for the purposes of carrying out
the act.
This bill would create the Greenhouse Gas Reduction Account within
the Air Pollution Control Fund. The bill would require moneys, as
specified, collected pursuant to a market-based compliance mechanism
be deposited in this account. The bill also would require those
moneys, upon appropriation by the Legislature, be used for specified
purposes. The bill would require the state board
administering agencies, including the state board and any
other state agencies agency identified by the
Legislature, to award allocate
those moneys to measures and programs that meet specified criteria.
The bill would require the state board to develop and adopt every 3
years, as specified, an investment plan that identifies the
anticipated expenditures of moneys appropriated from the account to
the budget committees of each house of the Legislature, as specified.
The bill would require the state board to annually submit a report
no later than December of each year to the appropriate committees of
the Legislature on the status of projects and their outcomes and any
changes the state board recommends need to be made to the investment
plan.
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. Part 8 (commencing with Section 38700) is added to
Division 25.5 of the Health and Safety Code, to read:
PART 8. GREENHOUSE GAS REDUCTION ACCOUNT
38700. For purposes of this part, the following terms have the
following meanings:
(a) "Account" means the Greenhouse Gas Reduction Account.
(b) "Qualified recipients" means public agencies, businesses,
nonprofit organizations, academic institutions, public-private
partnerships, and workforce training partnerships.
38701. (a) The Greenhouse Gas Reduction Account is hereby created
within the Air Pollution Control Fund.
(b) Notwithstanding Section 38597, all moneys, excluding penalties
and fines, collected pursuant to Part 5 (commencing with Section
38570) shall be deposited in the Greenhouse Gas Reduction Account and
shall be available, upon appropriation by the Legislature, to the
state board or any state agency for purposes of carrying out this
division.
38702. (a) The Legislature finds and declares any program that
might be established by the state board pursuant to Part 5
(commencing with Section 38570) shall be a regulatory program and any
moneys collected by that regulatory program are regulatory fees that
shall conform to Sinclair Paint Co. v. State Bd. of Equalization
(1997) 15 Cal.4th 866.
(b)
38702. ( a) The state shall not
approve funding for a measure or program using moneys appropriated
from the account except after determining, based on the available
evidence, that the use of moneys for that measure or program is
consistent with the requirements for the use of moneys derived from
valid regulatory fees, as established by the California Supreme Court
in Sinclair Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th
866.
(c)
(b) It is the intent of the Legislature that funds
shall be appropriated from the account only in a manner consistent
with the requirements of this part.
(d)
(c) Moneys shall be used to facilitate the achievement
of feasible and cost-effective reductions of greenhouse gas emissions
in this state consistent with this division and, where
applicable and to the extent feasible, do all of the following:
(1) Maximize economic, environmental, and public health benefits
to the state.
(2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
(3) Complement efforts to improve air quality.
(4) Direct investment toward the most disadvantaged communities in
the state.
(5) Provide opportunities for small businesses, schools,
affordable housing associations, water agencies, local governments,
and other community institutions to participate in and benefit from
statewide efforts to reduce greenhouse gas emissions.
(e)
(d) Funds appropriated from the account may be
allocated, consistent with subdivision (b)
(a) , for the purpose of reducing greenhouse gas emissions
in this state through investments that may include, but are
not limited to, any of the following:
(1) Investments in clean and efficient energy, including, but not
limited to, any of the following:
(A) Industrial and manufacturing facilities to reduce greenhouse
gas emissions by investment in energy efficiency, energy storage, and
clean and renewable energy projects.
(B) Public universities, schools, water agencies, and other public
facilities and fleets to reduce greenhouse gas emissions by
investment in energy and water use efficiency, energy storage, and
clean and renewable energy and fuel projects.
(C) Residential and commercial distributed generation and energy
efficiency programs that serve to reduce greenhouse gas emissions,
including, but not limited to, the federal Energy Efficiency and
Conservation Block Grant Program, established pursuant to Section 542
of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec.
17152), and the Weatherization Assistance Program.
(D) Waste reduction and low-carbon recycled-content processing and
manufacturing that serve to reduce greenhouse gas emissions,
including market development activities.
(2) Investments in low-carbon transportation and infrastructure,
including, but not limited to, any of the following:
(A) Public transportation and sustainable transportation and
infrastructure development.
(B) Programs for clean vehicles and the advancement of
transportation technologies, including, but not limited to, the
Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5
of Division 26) and the Air Quality Improvement Program (Article 3
(commencing with Section 44274) of Chapter 8.9 of Part 5 of Division
26).
(C) Advanced transportation and fueling infrastructure.
(D) Local and regional sustainable development efforts that are,
to the extent applicable, consistent with the sustainable communities
strategy or alternative planning strategy adopted and approved
pursuant to Section 65080 of the Government Code.
(E) Low-carbon goods movement and freight vehicle technologies and
infrastructure, including, but not limited to, locomotives and
heavy-duty trucks.
(3) Investments in natural resource protection, including, but not
limited to, any of the following:
(A) Natural resource management programs and projects.
(B) Land conservation and restoration.
(C) Development and implementation of sustainable agriculture,
forestry, and related water, land, and resource management practices.
(4) Investments in research, development, and deployment of
innovative technologies, measures, and practices related to programs
and projects funded pursuant to this part.
38703. (a) The state board and any other state agency identified
by the Legislature are the administering agencies for moneys
appropriated in accordance with this part.
(b) The administering agencies shall, upon appropriation by the
Legislature, carry out a program to allocate moneys appropriated
pursuant to this part through competitive grants, revolving loans,
loan guarantees, loans, or other appropriate funding measures to
qualified recipients to reduce greenhouse gas emissions consistent
with subdivisions (d) and (e) (c) and (d)
of Section 38702.
(c) Prior to the initial allocation of moneys in accordance with
this part, the state board shall, pursuant to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of the Government Code), adopt guidelines to provide
state agencies guidance as well as guidance to potential funding
applicants and the public regarding the allocation and allowable uses
of moneys. The guidelines shall, at a minimum, do all of the
following:
(1) Establish minimum criteria for receiving funding and
additional criteria, including, but not limited to, those identified
in subdivision (d) (c) of Section
38702, that the state agencies shall take into account in
establishing preferences for awarding moneys.
(2) Provide a process to verify the qualifications of recipients.
(3) Provide for the monitoring and, as deemed necessary, the audit
of expenditures and outcomes.
(d) Any state agency that administers moneys pursuant to
subdivision (b) shall adopt guidelines that meet the requirements of
subdivision (c).
38704. (a) (1) The state board shall develop and adopt every
three years, consistent with the schedule described in Section 38705,
an investment plan that identifies the anticipated expenditures of
moneys appropriated from the account in accordance with this part.
The investment plan shall, consistent with the requirements of
Section 38702, establish priorities for the expenditure of moneys,
identify specific categories of programs and projects, identify
proposed levels of expenditures for each category, and identify the
state agencies best qualified to implement the programs pursuant to
subdivision (b) of Section 38703.
(2) The Public Utilities Commission shall develop and send to the
state board an investment plan to be included in the investment plan
prepared by the state board pursuant to subdivision (a). The Public
Utilities Commission's investment plan shall include its requirements
on how investor-owned utilities may use any allowance auction moneys
the investor-owned utilities might collect pursuant to a
market-based compliance mechanism.
(b) The state board shall, in developing an investment plan,
consult with the Public Utilities Commission to ensure the investment
plan is coordinated with, and does not conflict with or unduly
overlap with, any expenditure plan the Public Utilities Commission
might adopt pursuant to Part 5 (commencing with Section 38570).
(c) The state board shall receive input from an advisory body that
shall provide information and oversight to the state board to assist
in its development of each investment plan. The advisory body shall
include the secretaries for the Natural Resources Agency, the
California Environmental Protection Agency, the Department of Food
and Agriculture, and the Business, Transportation and Housing Agency.
The advisory body shall participate in each public workshop on the
draft investment plans and provide testimony to the state board and
Legislature on the proposed and draft investment plans.
(d) If, pursuant to subdivision (b) of Section 38705,
the budget committees of each house of the Legislature with
jurisdiction over the State Budget adopt changes to the final
investment plan or the state board presents any proposed significant
modifications to the advisory body prior to the adoption of the final
investment plan, the state board shall hold at least two public
workshops in different regions of the state and one public hearing
prior to adopting each final investment plan.
38705. (a) Beginning April 1, 2013, and by January 10 every three
years thereafter, concurrent with the submission of the Governor's
Budget in 2016 and 2019, the state board shall submit a proposed
investment plan, as developed pursuant to Section 38704, to the
budget committees of each house of the Legislature with jurisdiction
over the State Budget.
(b) The budget committees of each house of the Legislature with
jurisdiction over the State Budget shall, in consultation with all
relevant policy committees, adopt changes to the state board's
proposed investment plan and transmit the changes to the state board.
The state board shall then incorporate the changes into the
investment plan and adopt a final investment plan at a public
hearing.
(c) The Legislature shall include appropriations for the
implementation of the final investment plan in the annual Budget Act
for the subsequent fiscal year for each of the three years for each
final investment plan.
(d) Subsequent to the adoption of each final investment plan, the
state board may adopt minor modifications to the proposed investment
plan, provided it notifies the Joint Legislative Budget Committee
within 90 days, or within 30 days if the aggregate total of
unreported modifications equals five million dollars ($5,000,000) or
more. If the state board adopts a significant modification to a final
investment plan, it shall, within 30 days, notify the Joint
Legislative Budget Committee. For purposes of this subdivision,
"significant modification" means an augmentation or reduction, the
value of which individually exceeds 50 percent of the previously
adopted allocation to an investment plan subcategory or is at least
two million dollars ($2,000,000).
38706. (a) Notwithstanding Section 10231.5 of the Government
Code, the state board shall annually submit a report no later than
December of each year to the appropriate committees of the
Legislature on the status of projects and their outcomes and any
changes the state board recommends to the investment plan completed
pursuant to Section 38705. It is the intent of the Legislature that
the appropriations required for the implementation of these changes
to the three-year investment plan shall be included in the annual
Budget Act for the subsequent fiscal year.
(b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.