BILL NUMBER: AB 1532 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 24, 2012
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 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. 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 require the moneys in the Greenhouse 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 containing specified
information and to hold old one public hearing on the report
prior to its submission to the Legislature .
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 FUND
38700. For purposes of this part, the following terms have the
following meanings:
(a) "Fund" means the Greenhouse Gas Reduction 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.
38702. (a) The state shall not approve funding for a measure or
program using moneys appropriated from the 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)
38702. (a) It is the intent of the
Legislature that moneys shall be appropriated from the 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)
(b) 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 and wastewater
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)
(c) Moneys appropriated from the 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 and wastewater
agencies, local governments, 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.
(D) Increasing the in-state diversion of municipal solid waste
from disposal through waste reduction, reuse, and low-carbon,
recycled-content processing, manufacturing, and other market
development activities consistent with the policy goal established
pursuant to subdivision (a) of Section 41780.01 of the Public
Resources Code and that directly reduce greenhouse gas emissions.
(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 transit , 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, such as
planning, development, financing, and implementation of multielement
transportation infrastructure and rural infrastructure
projects or other planning processes, including, but not limited
to, the updating of general plans or the creation of specific plans,
consistent with the implementation of Section 65080 of the
Government Code and other greenhouse gas emissions plans
or other greenhouse gas emissions reduction strategies
in local and regional plans , including, but not limited to,
transit-oriented any of the following:
(i) Transit-oriented residential
development consistent with paragraph (4) of subdivision (c)
(b) .
(ii) Transportation efficiency measures that expand transit
service and transportation systems within existing developed areas to
support infill development, and demand management strategies.
(iii) Improved transportation options and land use incentives,
including, but not limited to, municipal infrastructure to support
transit-oriented development and infill, multimodal connectivity,
including, but not limited to, crossings, transit infrastructure and
electrification, and other measures to assist in achieving the
implementation of 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 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, habitat restoration, or other stewardship
activities, such as projects administered by state conservancies,
state and certified local conservation corps pursuant
to Section 14315 of the Public Resources Code , and the
Wildlife Conservation Board.
(C) Development and implementation of sustainable agriculture,
forestry, urban greening, 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
coordinating with local governments.
(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 and within
close proximity to sources that produce high criteria and toxic air
pollution levels, environmental pollution , and
other hazards that can lead to negative public health
effects, exposure, and environmental degradation .
(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,
sensitive populations, 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)
(b) and (c) 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) (b) 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) 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, 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) (b) 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 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)
(A) Identify the state's near-term and long-term
greenhouse gas emissions reduction goals and 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.
(iv) Any additional greenhouse gas emissions reduction goals for
sectors that do not have targets.
(I)
(B) List and describe the key measures and strategies
that the state is relying on to achieve greenhouse gas emissions
reductions goals and 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)
(C) 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)
(D) Identify priority 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 greenhouse gas
reduction goals and targets by sector, consistent
with subdivision (c) of Section 38702, 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.
(E) 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.
(2) 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, activities under the oversight or administration
of the Public Utilities Commission undertaken 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.
(2)
(b) The Public Utilities Commission shall develop and
send to the state board a report to be included in each investment
plan adopted by the state board pursuant to subdivision (a). The
Public Utilities Commission's report shall include its requirements
on how investor-owned utilities may regarding
the use of 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, 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 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 California Constitution, the Governor shall include
proposed appropriations consistent with the plan submitted pursuant
to subdivision (a).
(2) If the state board , in consultation with the California
Environmental Protection Agency, finds in its report to the
Legislature, pursuant to Section 38706, that an investment
plan the investments made pursuant to
Section 38704 did not allocate in the prior fiscal
year did not result in at least 25 percent of the available
moneys from the prior that fiscal year
being allocated to projects that provide benefits
described in subdivision (c) (b) of
Section 38702 to priority community investment areas, as described in
Section 38702.5, and that at least 10 percent of all of the
available moneys from that fiscal year were not invested in projects
located in 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 California
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 funded pursuant to this part and their
outcomes, 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) (b)
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) The state board shall hold one public hearing on the report
submitted pursuant to subdivision (a) prior to its submission to the
Legislature.
(b)
(c) A report submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the Government
Code.