BILL NUMBER: SB 535	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY   Senator De León

                        FEBRUARY 17, 2011

   An act  to add Part 5 (commencing with Section 71420) to
Division 34 of the Public Resources Code,   relating to climate
change.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 535, as amended, De León. California  Climate Change
Community Benefits Fund.   Communities Healthy Air
Revitalization Trust.  
   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. The act authorizes the state
board to include the 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 to be
deposited into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for purposes of carrying out the
act.  
   This bill would establish the California Communities Healthy Air
Revitalization Trust in the State Treasury and would require a
minimum of 10% of specified revenues generated for the state each
year from the act, to be deposited into that trust. The moneys in the
trust would be used, upon appropriation by the Legislature, in the
most impacted and disadvantaged communities, as defined, to fund
programs or projects that reduce greenhouse gas emissions or mitigate
direct health or environmental impacts of climate change through
competitive grants, loans, or other funding mechanisms. The bill
would require the Secretary for Environmental Protection to
administer moneys appropriated from the trust, establish criteria and
procedures, and meet other specified requirements in connection with
implementation.  
   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. The act authorizes the state
board to include the use of market-based compliance mechanisms.
 
   This bill would state the intent of the Legislature to enact
legislation to establish the California Climate Change Community
Benefits Fund, and require a certain percentage of revenues generated
for the state each year from the state sale of compliance
instruments for market-based compliance mechanisms pursuant to the
act to be deposited into that fund. The bill would also state the
intent of the Legislature that moneys in the fund would be used, upon
appropriation by the Legislature, in the most impacted and
disadvantaged communities to fund programs or projects that reduce
greenhouse gas emissions or mitigate direct health or environmental
impacts of climate change through competitive grants, loans, or other
funding mechanisms. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  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) California embraced the challenge posed by climate change with
the passage of the California Global Warming Solutions Act in 2006,
enacted as Chapter 488 of Statutes of 2006, (Assembly Bill 32).
Assembly Bill 32 recognizes the disproportionate impacts climate
change will have on disadvantaged and low-income communities in
California, which already face disproportionate impacts from
substandard air quality in the form of higher rates of respiratory
illness, hospitalizations, and premature death.  
   (b) Assembly Bill 32 recognizes the potential vulnerability of
California's low-income and disadvantaged population to efforts to
reduce greenhouse gas emissions and requires that activities taken to
comply with Assembly Bill 32 do not disproportionately impact those
communities.  
   (c) Assembly Bill 32 recognizes the public health impacts of
climate change and requires that activities taken to comply with
Assembly Bill 32 consider the localized and cumulative impacts in
communities that are already adversely impacted by air pollution.
 
   (d) Assembly Bill 32 requires that public and private investment
be directed toward the most disadvantaged communities in California
to provide an opportunity for small businesses, schools, affordable
housing associations, and other community institutions to participate
in and benefit from statewide efforts to reduce greenhouse gas
emissions.  
   (e) Assembly Bill 32 does not provide a definition, however, for
California's most impacted and disadvantaged communities, nor
direction on how the state will mitigate adverse impacts from climate
change in these communities, nor direction on how the state will
ensure these communities can participate in and receive investments
from activities taken pursuant to Assembly Bill 32 and not experience
disproportionate impacts.  
   (f) Since the passage of Assembly Bill 32, the State Air Resources
Board and other state agencies have adopted various regulatory
programs to enable California to achieve Assembly Bill 32's
greenhouse gas emissions reduction target. The people of California
voiced their strong support for continued implementation of Assembly
Bill 32 with the defeat of Proposition 23 in November 2010. 

   (g) It is the intent of the Legislature that this act continue
California's implementation of Assembly Bill 32 by directing
resources to the state's most impacted and disadvantaged communities
to ensure activities taken pursuant to that authority will provide
economic and health benefits to these communities as originally
intended.  
   (h) It is the intent of the Legislature that funds collected
pursuant to this act continue California's implementation of Assembly
Bill 32 by achieving additional emission reductions and mitigating
direct health impacts on California's most impacted and disadvantaged
communities. 
   SEC. 2.    Part 5 (commencing with Section 71420) is
added to Division 34 of the   Public Resources Code 
 , to read:  

      PART 5.  CALIFORNIA COMMUNITIES HEALTHY AIR REVITALIZATION
TRUST


   71420.  This part shall be known, and may be cited, as the
California Communities Healthy Air Revitalization Trust (Cal CHART).
   71421.  As used in this part, the following terms have the
following meanings:
   (a) "Trust" means the California Communities Healthy Air
Revitalization Trust.
   (b) (1) "Most impacted and disadvantaged communities" means either
those areas having the highest 10 percent air pollution exposure and
socioeconomic vulnerability within an air basin that does not meet
one or more national or state ambient air quality standards, or those
areas having the highest 10 percent socioeconomic vulnerability to
direct health or environmental impacts of climate change.
   (2) The evaluation criteria for air pollution exposure shall
include, at a minimum, criteria and toxic air pollution levels,
proximity to sources of air pollution, and sensitive populations.
   (3) The evaluation criteria for socioeconomic vulnerability shall
include, to the extent feasible, multiple indicators, including, but
not limited to, poverty level, percent home ownership, unemployment
level, and educational attainment.
   71422.  (a) The California Communities Healthy Air Revitalization
Trust is established in the State Treasury. Not less than 10 percent
of the revenues deposited in the Air Pollution Control Fund pursuant
to the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code),
other than revenues collected for administrative purposes pursuant to
Section 38597 of the Health and Safety Code, shall be allocated to
the trust and used, upon appropriation by the Legislature, for the
purposes described in this part. These revenues shall include, but
are not limited to, revenues from the state of compliance instruments
pursuant to Part 5 (commencing with Section 38570) of Division 25.5
of the Health and Safety Code, penalties collected pursuant to Part 6
(commencing with Section 38580) of Division 25.5 of the Health and
Safety Code, or generated by any future carbon pricing mechanism
adopted pursuant to Division 25.5 (commencing with Section 38500) of
the Health and Safety Code.
   (b) (1) Moneys allocated to the trust shall be used solely in the
most impacted and disadvantaged communities in California.
   (2) Moneys allocated to the trust shall be used to fund programs
or projects that reduce greenhouse gas emissions or mitigate direct
health impacts of climate change, through competitive grants, loans,
or other funding mechanisms.
   (3) To the extent allowed by law, and consistent with paragraph
(2), moneys allocated to the trust may be appropriated for green
collar employment or training opportunities for the most impacted and
disadvantaged communities.
   (4) Up to 5 percent of the moneys allocated to the trust may be
used for purposes of administering this part, upon appropriation by
the Legislature.
   (c) To the extent that funds allocated to the trust are provided
to existing programs, those funds shall be used to supplement, not
supplant, those programs to meet the goals of this part.
   71423.  (a) The secretary in consultation with the Climate Action
Team shall administer moneys appropriated from the trust and shall
establish criteria and procedures for the implementation of this
part. The secretary shall implement the program created pursuant to
this part before January 1, 2013.
   (b) The secretary, following an open and public process, shall
develop and adopt a report that describes the support structure and
framework for the implementation of this part, the list of the most
impacted and disadvantaged communities in California that shall be
updated every three years, the types of programs and projects to be
funded under this part, the selection and oversight process for the
programs and projects to be funded, and the eligibility criteria. The
report shall be made available to the public on the California
Environmental Protection Agency's Internet Web site.
   (c) By July 1, 2012, and every three years thereafter, the
secretary, in consultation with the Climate Action Team, in an open
process, shall develop and adopt triennial plans describing the
specific type of programs and projects to be solicited for funding
during the three-year period, the plans shall be made public on the
California Environmental Protection Agency's Internet Web site.
   71424.  Nothing in this part shall be construed as resulting in
any taxpayer paying a higher tax within the meaning of Section 3 of
Article XIII A of the California Constitution.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to do all the following:
   (a) Establish in the State Treasury the California Climate Change
Community Benefits Fund.
   (b) Require a certain percentage of revenues generated for the
state each year from the state sale of compliance instruments for
market-based compliance mechanisms pursuant to Section 38570 of the
Health and Safety Code to be deposited into the fund.
   (c) Require moneys in the fund to be used, upon appropriation by
the Legislature, solely in the most impacted and disadvantaged
communities to fund programs or projects that reduce greenhouse gas
emissions or mitigate direct health or environmental impacts of
climate change through competitive grants, loans, or other funding
mechanisms.