BILL NUMBER: AB 1532 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 21, 2012
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, Gordon, Roger
Hernández, Hill, Bonnie Lowenthal, Monning, Skinner, Wieckowski,
Williams, 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
Fund .
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. Existing law requires all moneys, except for
fines and penalties, collected by the state board from the auction or
sale of allowances as part of a market-based compliance mechanism to
be deposited in the Greenhouse Gas Reduction Fund and to be
available upon appropriation by the Legislature.
This bill would create the Greenhouse Gas Reduction
Account within the 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 the
moneys , upon appropriation by the Legislature,
in the Green house Gas Reduction Fund 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 California Environmental Protection Agency to develop a
methodology that identifies priority community areas for investment
opportunities, as specified. The bill would require the state
board to develop, as specified, 3 investment plans that 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
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
containing specified information .
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
FUND
38700. For purposes of this part, the following terms have the
following meanings:
(a) "Account" "Fund "
means the Greenhouse Gas Reduction Account
Fund, created pursuant to Section 16428.8 of the
Government Code .
(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 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
fund 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
moneys shall be appropriated from the
account fund only in a manner consistent with
the requirements of this part and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code .
(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.
(6) Mitigate the impacts and effects of climate change on the
state's communities, economy, and environment.
(d) Funds Moneys appropriated from
the account fund 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 and their energy suppliers 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),
the program established pursuant to Section 25943 of the Public
Resources Code), and the Weatherization Assistance Program
(42 U.S.C. Sec. 6861 et seq.) .
(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 ,
sustainable development, and infrastructure, including, but not
limited to, any of the following:
(A) Public transportation and sustainable transportation and
infrastructure development , including, but not limited to,
transportation, bicycle, and pedestrian facilities .
(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
, such as planning, development, financing, and implementation
of multielement transportation infrastructure projects consistent
with the implementation of Section 65080 of the Government Code and
other greenhouse gas emissions plans, including, but not limited to,
transit-oriented residential development consistent with paragraph
(4) of subdivision (c) .
(E) Low-carbon goods movement and freight vehicle technologies and
infrastructure, including, but not limited to, locomotives and
heavy-duty trucks fleets .
(3) Investments in natural resource protection, including, but not
limited to, any of the following:
(A) Natural resource management programs and projects ,
including, but not limited to, watershed projects with cobenefits of
water quality, flood protection, and coastal and ocean protection
.
(B) Land conservation and restoration ,
habitat restoration, or other stewardship activities, such as
projects administered by state conservancies, local conservation
corps, and the Wildlife Conservation Board .
(C) Development and implementation of sustainable agriculture,
forestry, and related water, land, and resource management
practices preservation, and open space programs
.
(4) Investments in community climate innovation programs that
foster the implementation of projects consistent with paragraphs (1),
(2), and (3). Eligible applicants shall be cities, counties, cities
and counties, charter cities, state conservancies, metropolitan
planning organizations, regional climate authorities, special
districts, air pollution control and air quality management
districts, joint powers authorities, regional collaboratives, and
nonprofit organizations partnering with local governments.
(4)
(5) Investments in research, development, and
deployment of innovative technologies, measures, and practices
related to programs and projects funded pursuant to this part.
38702.5. The California Environmental Protection Agency shall
develop a methodology that identifies priority community areas for
investment opportunities related to this part. These priority
community investment areas shall be identified and updated no less
than every two years, based on geographic, socioeconomic, and
environmental hazard criteria, which may include, but not be limited
to, any of the following:
(a) Areas disproportionately adversely affected by environmental
pollution and hazards.
(b) Areas that contain or produce material that, because of its
quantity, concentration, or physical or chemical characteristics,
pose a significant hazard to human health and safety.
(c) Areas with concentrations of people that are of low income,
high unemployment, low levels of homeownership, high rent burden, and
low levels of educational attainment.
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) (1) 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.
(2) The state board shall develop guidelines for administering
agencies for purposes of allocating moneys to projects that maximize
benefits for priority community areas, as described in Section
38702.5.
(3) Administering agencies shall have the authority to set aside a
percentage of their appropriated moneys from the fund for projects
that maximize benefits to priority community investment areas, as
described in Section 38702.5.
(4) In implementing this subdivision, administering agencies shall
ensure the investments maximize the benefits described in
subdivision (c) of Section 38702 for investments to priority
community investment areas, as described in Section 38702.5, through
activities that include, but are not limited to, any of the
following:
(A) Participatory program guideline development.
(B) Targeted solicitation outreach.
(C) Education and training efforts.
(D) Solicitation scoring criteria priority.
(c) Prior Notwithstanding Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code and 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) after one or more public
hearings , 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.
(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 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, 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
fund 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.
(G) Maximize benefits to priority community investment areas, as
described in Section 38702.5, through activities that include, but
are not limited to, any of the following:
(i) Participatory program guideline development.
(ii) Targeted solicitation outreach.
(iii) Education and training efforts.
(iv) Solicitation scoring criteria priority.
(v) Fund set asides.
(H) Identify the state's near-term and long-term greenhouse gas
emissions reduction targets by sector, including, but not limited to,
an analysis of all of the following:
(i) Current and projected sector greenhouse gas emissions.
(ii) Progress toward achievement of sector greenhouse gas
emissions reduction targets.
(iii) The sectors' greenhouse gas emissions reduction achievements
as compared to state greenhouse gas emissions targets.
(I) List and describe the key measures and strategies that the
state is relying on to achieve greenhouse gas emissions reductions
targets by sector. For each measure and strategy, the state board
shall include, at a minimum, all of the following:
(i) A description of expected greenhouse gas emissions reductions
and other benefits anticipated from the measure's or strategy's
implementation.
(ii) Current funding levels and sources for the measure or
strategy, as applicable.
(iii) A projection of greenhouse gas emissions reductions and
other impacts based on continued progress at current implementation
schedules.
(J) Analyze gaps, where applicable, in current state strategies to
meeting the state's greenhouse gas emissions reduction goals by
sector, including, but not limited to, all of the following:
(i) Funding.
(ii) Policies.
(iii) Compliance.
(iv) Market preparedness.
(v) State authority, local authority, or other relevant
considerations.
(K) Identify programmatic investments of moneys appropriated from
the fund that will facilitate the achievement of feasible and
cost-effective greenhouse gas emissions reductions toward achievement
of reduction targets by sector, including, but not limited to, all
of the following:
(i) The expected greenhouse gas emissions reductions and other
cobenefits of the investment.
(ii) The administering agency that will implement the investment.
(iii) Other relevant information the state board deems appropriate
to explain and justify the investment pursuant to Section 38702.
(2) The Public Utilities Commission shall develop and send to the
state board an investment plan a report
to be included in each investment plan adopted by the state board
pursuant to subdivision (a). The Public Utilities Commission's
investment plan report 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
activities under the oversight or administration of the Public
Utilities Commission might adopt pursuant to Part 5 (commencing with
Section 38570) or other activities under the oversight or
administration of the Public Utilities Commission that facilitate
greenhouse gas emissions reductions consistent with this division
.
(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, the Labor and Workforce Development
Agency, 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, 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).
38705. (a) 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 account fund .
(b) (1) 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 subdivision (a).
(2) If the state board finds in its report to the Legislature,
pursuant to Section 38706, that an investment plan made pursuant to
Section 38704 did not allocate at least 25 percent of the available
moneys from the prior fiscal year to projects that provide benefits
described in subdivision (c) of Section 38702 to priority community
investment areas, as described in Section 38702.5, then the Governor
shall include 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, allocations to administering agencies to
make investments in eligible projects in priority community
investment areas in an amount equal to the difference between the
total investments in the prior fiscal year that benefited priority
community investment areas and an amount equal to 25 percent of the
total allocations from the prior fiscal year. This allocation shall
not be considered part of the next fiscal year's priority community
investment area considerations for purposes of this part and shall be
separately identified in the Governor's annual budget submission to
the Legislature to provide transparency to the investment.
(c) The Legislature shall consider adopting the appropriations
submitted by the Governor pursuant to subdivision (b) as part of the
annual Budget Act.
38706. (a) Notwithstanding Section 10231.5 of the Government
Code, the state board shall submit 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 , and a description of how
agencies have maximized the benefits of the investments to priority
community investment areas, as described in Section 38702.5,
including, but not limited to, the percentage of funds
allocated to date and in the prior fiscal year that have been
invested in projects in priority community investment areas and that
have provided benefits, as defined in subdivision (c) of Section
38702, to priority community investment areas . 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.