BILL NUMBER: SB 535 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 5, 2011
AMENDED IN ASSEMBLY JUNE 21, 2011
AMENDED IN SENATE MAY 31, 2011
AMENDED IN SENATE MARCH 24, 2011
INTRODUCED BY Senator De León
(Coauthor: Senator Pavley)
(Coauthors: Assembly Members Davis and Lara)
FEBRUARY 17, 2011
An act to add Part 5 (commencing with Section 71420) to
Division 34 of the Public Resources Code Part 11
(commencing with Section 38850) to Division 25.5 of the Health and
Safety Code , relating to climate change.
LEGISLATIVE COUNSEL'S DIGEST
SB 535, as amended, De León. California 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 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 the 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 State Air Resources Board to administer moneys
appropriated from the trust, establish criteria and procedures,
convene a review panel, and meet other specified requirements in
connection with implementation.
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) 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 the 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.
SEC. 2. Part 11 (commencing with Section 38850) is
added to Division 25.5 of the Health and Safety Code
, to read:
PART 11. California Communities Healthy Air
Revitalization Trust
38850. This part shall be known, and may be cited, as
the California Communities Healthy Air Revitalization Trust (Cal
CHART).
71421. 38851. 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. 38852. (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) this
division , other than revenues collected for administrative
purposes pursuant to Section 38597 of the Health and Safety
Code , shall be allocated to the trust. Moneys in the trust
are available, upon appropriation by the Legislature, for the
purposes described in this part.
(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. 38853. (a) The
State Air Resources Board state board shall
administer moneys appropriated from the trust and shall establish
criteria and procedures for the implementation of this part. The
State Air Resources Board state board
shall begin implementation of the program created pursuant to this
part within 90 days of finding that more than five million dollars
($5,000,000) has been deposited in the trust.
(b) The State Air Resources Board state
board , 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 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 State Air Resources Board's
state board's Internet Web site.
(c) Upon implementation of the program, and by every third January
1 thereafter, the State Air Resources Board
state board , in consultation with the Climate Action Team, in
an open process, shall develop and adopt the list of the most
impacted and disadvantaged communities in California and triennial
plans describing the specific type of programs and projects to be
solicited for funding during the three-year period. The plans and
lists shall be made public on the State Air Resources Board'
s state board's Internet Web site.
(d) (1) By September 1, 2015, and every three years thereafter,
the State Air Resources Board state board
, in consultation with the Climate Action Team, shall submit a
report to the Legislature describing the activities taken during the
preceding three-year period pursuant to this part, including the
amount and geographic distribution of programs and projects funded, a
description of each program and project funded, and the manner in
which those programs and projects and the plan adopted pursuant to
subdivision (c) furthered the goals of the California Global
Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500) of the Health and Safety Code) this
division . The report shall be made public on the
State Air Resources Board's state board's
Internet Web site.
(2) A report to be submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
(e) (1) The adoption of triennial plans and identification of the
most impacted and disadvantaged communities pursuant to subdivision
(c) and the expenditure of moneys for individual programs or
projects shall be approved or adopted with the approval of
no fewer than four members of the review panel described in Section
71424 38854 .
(2) If four panel members do not approve an action as required by
paragraph (1), the State Air Resources Board
state board shall resubmit the action, revised as appropriate,
to the panel for reconsideration, within 90 days of the disapproval.
71424.
38854. (a) (1) The State Air Resources Board
state board shall convene a review panel to make
recommendations , approve programs and projects funded
under this part, and review the development of policies,
plans, and programs as they relate to this part.
(2) The panel shall have seven members meeting the following
requirements:
(A) Each member shall have demonstrated expertise, and a minimum
of seven years of working experience, in the areas of air pollution,
public health, energy efficiency, transportation, economics, or
running a small business.
(B) Three members shall have demonstrated knowledge and experience
in advancing community interests in the area of environmental
protection for at least seven years.
(3) The State Air Resources Board state
board shall solicit nominations to serve on the panel in an
open and public process, and shall appoint panel members in
consultation with the Senate pro Tempore and the Speaker of the
Assembly. A member of the panel shall serve for a three-year term and
may be reappointed for no more than a second three-year term. For
the initial appointments pursuant to this section, the State
Air Resources Board state board shall appoint
panel members for two- or three-year terms to ensure staggered terms
and continuity of the panel.
(b) The panel shall convene every three months to review
, make recommendations, and approve projects or programs funded
pursuant to this part. The panel shall convene annually to review
and make recommendations pursuant to this part. The
panel shall review and make recommendations regarding the
support structure and framework for the implementation of this part,
the list of the most impacted and disadvantaged communities in
California, and the selection and eligibility criteria for
the eligibility criteria, and the selection of
the programs and projects to be funded under this part.
71425. 38855. (a) Except as
otherwise provided in subdivision (b), the State Air
Resources Board state board shall only approve a
program or project for funding after determining, based on the
available evidence, that the use of moneys for that program or
project 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 and reaffirmed in California Farm Bureau
Federation v. State Water Resources Control Bd. (2011) 51 Cal.4th
421.
(b) The requirements of subdivision (a) do not apply to the use of
penalty moneys, if those moneys are segregated from fee moneys.
71425.5 38856. 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.