BILL NUMBER: AB 2404	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 24, 2012

   An act to add Part 8 (commencing with Section 38600) to Division
25.5 of the Health and Safety Code, relating to greenhouse gases.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2404, as introduced, Fuentes. California Global Warming
Solutions Act of 2006: Local Emission Reduction Fund.
   The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and to
monitor and enforce compliance with the reporting and verification
program, and requires the state board to adopt a statewide greenhouse
gas emissions limit equivalent to the statewide greenhouse gas
emissions level in 1990 to be achieved by 2020. The act requires the
state board to adopt rules and regulations in an open public process
to achieve the maximum technologically feasible and cost-effective
greenhouse gas emission reductions and authorizes the state board to
use market-based compliance mechanisms to achieve these ends. 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 to 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 Local Emission Reduction Fund and would
require specified moneys collected under the market-based compliance
mechanisms be deposited in that fund. The bill would provide that
the moneys in that fund be available, upon appropriation by the
Legislature, for award to specified local governmental entities for
specified purposes by the state board. The bill would require the
state board, in coordination with other state agencies, as
appropriate, to develop standards and guidelines to ensure the funded
projects maximize the funds appropriated, provide environmental and
economic benefits, and do not conflict with the act.
   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.  The Legislature finds and declares all of the
following:
   (a) The reduction of greenhouse gas emissions is critical to
public health, safety, the economy, and the natural environment that
residents rely on.
   (b) State investments in local and regional greenhouse gas
emission reduction projects help local communities thrive, support
the state's emission-reduction and clean-energy targets, lower the
statewide unemployment rate, and spur new job growth.
   (c) Incentivizing local governments to plan and implement their
own greenhouse gas emission reduction efforts will assist the state
to reach its emission-reduction targets faster and more efficiently.
   (d) Local and regional governments that partner with
not-for-profit entities and community groups can identify, plan, and
implement innovative community-scale emission-reduction initiatives
and projects that utilities and other regulated entities may not
identify or participate in.
   (e) Local greenhouse gas emission reduction initiatives best
recognize the particular reduction opportunities at the local level
and provide an opportunity to enhance the environment and economy of
local and regional places through multi-benefit projects.
   (f) Local governments are well-suited to coordinate and aggregate
micro-, small-, community-, and regional-scale projects that will
help the state reach its environmental targets while incentivizing
investments and job growth at the local level.
   (g) It is the intent of the Legislature to promote investments in
coordinated and aggregated local and regional greenhouse gas emission
reduction projects.
  SEC. 2.  Part 8 (commencing with Section 38600) is added to
Division 25.5 of the Health and Safety Code, to read:

      PART 8.  Local Emission Reduction Fund


   38600.  (a) The Local Emission Reduction Fund is hereby created in
the State Treasury.
   (b) Notwithstanding Section 38597, moneys collected pursuant to
Part 5, excluding penalties and fines, shall be deposited in the
Local Emission Reduction Fund, which is hereby established, and shall
be available, upon appropriation by the Legislature, for purposes of
carrying out this division.
   (c) The state board shall award the moneys in the Local Emission
Reduction Fund to cities, counties, city and county governments,
metropolitan planning organizations, and joint powers authorities for
measures and programs that are consistent with a locally adopted
greenhouse gas emissions reduction plan that includes and maximizes
viable partnerships with other local governments, Native American
tribes, not-for-profit entities, regional bodies, California
Conservation Corps, state-certified local conservation corps, and
local Youth Build programs. The plan shall identify and maximize all
of the following:
   (1) Micro-, small-, community-, and regional-scale greenhouse gas
emission reduction opportunities, including sequestration.
   (2) Opportunities to change or update existing local and regional
plans, policies, or programs to achieve greenhouse gas emission
reductions.
   (3) Opportunities to achieve greenhouse gas emission reductions in
ways that increase adaptability or resiliency to extreme weather
events.
   (4) Opportunities to achieve greenhouse gas emission reductions in
ways that create local job training and job creation benefits.
   (5) Opportunities to achieve greenhouse gas emission reductions in
ways that decrease air or water pollution.
   (6) Opportunities to achieve greenhouse gas emission reductions in
ways that reduce the consumption of natural resources or energy.
   (7) Opportunities to achieve greenhouse gas emission reductions in
ways that increase localized energy resources.
   (8) Opportunities to achieve greenhouse gas emission reductions in
ways that increase the reliability of local water supplies.
   (9) Opportunities to achieve greenhouse gas emission reductions in
ways that reduce or avoid vehicle miles traveled.
   (10) Opportunities to coordinate and aggregate greenhouse gas
emission reduction projects or programs.
   (11) Opportunities to achieve greenhouse gas emission reductions
in ways that reduce or avoid costs to the state or local governments.

   (d) Any greenhouse gas emission reduction plan adopted for
purposes of subdivision (c) shall provide for public notice and at
least one opportunity for public input.
   38601.  The state board, in coordination with other state
agencies, as appropriate, shall develop standards and guidelines to
ensure projects funded pursuant to this part maximize funds
appropriated, provide environmental and economic benefits, and do not
conflict with this division.
   38602.  The state board shall approve funding for a measure or
program, awarded pursuant to this part, only 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.