BILL NUMBER: AB 1532	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 18, 2012
	AMENDED IN ASSEMBLY  MAY 1, 2012
	AMENDED IN ASSEMBLY  APRIL 17, 2012

INTRODUCED BY   Assembly Member John A. Pérez
   (Coauthors: Assembly Members Blumenfield, Bonilla, Bradford,
Butler, Carter, Chesbro, Dickinson, Roger Hernández, Hill, Bonnie
Lowenthal, Monning, Skinner, Wieckowski, and Yamada)

                        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. 
   (1) The 
    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   Greenhouse Gas
Reduction  Fund. The bill would require moneys, as specified,
collected pursuant to a market-based compliance mechanism to be
deposited in this account. The bill also would require those moneys,
upon appropriation by the Legislature, to be used for specified
purposes. The bill would require administering agencies, including
the state board and any other state agency identified by the
Legislature, to allocate those moneys to measures and programs that
meet specified criteria. The bill would require the state board to
develop, as specified,  three   3 
investment plans that  identify the anticipated expenditures
of moneys appropriated from the account  include
specified analysis and information  , to submit each plan to the
budget committees of each house of the Legislature, as specified,
and to adopt each investment plan, as specified. The bill would
require the Governor to submit a budget to the Legislature that
includes specified appropriations consistent with each investment
plan and would require the Legislature to consider these
appropriations when adopting the Budget Act. The bill would require
the state board to  annually  submit a report no
later than December  1  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. 
   (2) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare or cause to be prepared, and to
certify the completion of, an environmental impact report (EIR) on a
project it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds the project will not have that effect.
 
   This bill would state that each investment plan adopted by the
state board would be exempt from CEQA and would state that no
individual project funded pursuant to the investment plan would be
exempt from CEQA. 
   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   Greenhouse
Gas Reduction  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 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 those
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.
   (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.
   (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
and households in the state.
   (5) Provide opportunities for small businesses, schools,
affordable housing developers, water agencies, local governments, and
other community institutions to participate in and benefit from
statewide efforts to reduce greenhouse gas emissions.
   (d) Funds appropriated from the account may be allocated,
consistent with subdivision (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) Single-family and multifamily 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 federal 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, credit enhancements, or other appropriate
funding measures to qualified recipients to reduce greenhouse gas
emissions consistent with subdivisions (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 Title 2 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 (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  . 
   (4) Establish minimum criteria and provide for the tracking of
outcomes. 
   (d) Any state agency that allocates moneys pursuant to subdivision
(b) shall adopt guidelines that  meet the requirements of
  are consistent with the guidelines adopted by the
state board pursuant to  subdivision (c).
   38704.  (a) (1) The state board shall develop and adopt, beginning
April 1, 2013, three investment plans for the following time
periods: 2013 to 2014, 2015 to 2017, and 2018 to 2020. Each
investment plan  shall identify, for the specified time
period, the anticipated expenditures of moneys appropriated from the
account in accordance with this part. Each investment plan shall,
consistent with the requirements of Section 38702, establish
priorities for the allocation 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.
  , consistent with the requirements of Section 38702,
shall do all of the following: 
    (A)     Analyze existing programs and
requirements that reduce greenhouse gas emissions and identify gaps
in   those programs and requirements.  
   (B) Identify, for the specified time period, the anticipated
expenditures of moneys appropriated from the account in accordance
with this part.  
   (C) Establish priorities for the allocation of moneys.  
   (D) Identify specific categories of programs and projects. 

   (E) Identify proposed levels of expenditures for each category.
 
   (F) Identify the state agencies best qualified to implement the
programs pursuant to subdivision (c) of Section 38703. 
   (2) The Public Utilities Commission shall develop and send to the
state board an investment plan to be included in each investment plan
adopted 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, prior to adopting each 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 adoption 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 state board shall hold at least two public workshops in
different regions of the state and one public hearing prior to
adopting any investment plan. The advisory body shall participate in
each public workshop on an investment plan and provide testimony to
the state board on each investment plan.
   (d) The state board shall submit to the relevant committee of each
house of the Legislature with jurisdiction over the state budget
 each of the following within the specified time period:
  , 30 days prior to adoption, each investment plan
proposed to be adopted pursuant to subdivision (a) or any amendment
to an investment plan adopted pursuant to subdivision (a). 

   (1) Thirty days prior to adoption, each investment plan proposed
to be adopted pursuant to subdivision (a).  
   (2) Thirty days prior to adoption, any amendment to an investment
plan adopted pursuant to subdivision (a) that would, in the
aggregate, modify the adopted investment plan by five million dollars
($5,000,000) or more.  
   (3) Thirty days prior to adoption, any significant amendment to an
investment plan adopted pursuant to subdivision (a) that would
augment or reduce an allocation specified in the adopted investment
plan by 50 percent of the specified value of the allocation or by at
least 2 million dollars ($2,000,000).  
   (4) Ninety days prior to adoption, any minor or technical
amendment to an investment plan adopted pursuant to subdivision (a).
 
   (e) An investment plan adopted pursuant to this section shall be
exempt from the requirements of Division 13 (commencing with Section
21000) of the Public Resources Code. This section does not exempt any
individual project funded consistent with the investment plan from
the requirements of Division 13 (commencing with Section 21000) of
the Public Resources Code. 
   38705.  (a)  (1)    The state
board shall annually provide to the Governor, concurrent with the
submission required pursuant to Section 13320 of the Government Code,
a plan consistent with the relevant investment plan adopted pursuant
to Section 38704, detailing proposed appropriations from the
 Greenhouse Gas Reduction Account   account
 .
   (b) As part of the Governor's annual budget submission to the
Legislature pursuant to subdivision (a) of Section 12 of Article IV
of the Constitution, the Governor shall include proposed
appropriations consistent with the plan submitted pursuant to
 paragraph (1)   subdivision (a)  .
   (c) The Legislature shall consider adopting the appropriations
submitted by the Governor pursuant to  paragraph (2) of
 subdivision (b) as part of the annual Budget Act.
   38706.  (a) Notwithstanding Section 10231.5 of the Government
Code, the state board shall submit  an annual report no later
than   a report on or before  December  1 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.