BILL NUMBER: SB 535	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	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  Sections 38702.5, 38704, 38705, and 38706 to,
and to add  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
 and  Revitalization Act.
   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.   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 California Environmental Protection
Agency to develop a methodology that identifies priority community
investment 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. 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. 
   This bill would establish the California Communities Healthy Air
 and  Revitalization Act and would require a minimum of 10%
of specified revenues deposited in the Greenhouse Gas Reduction Fund
 to  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 board to  administer those moneys
appropriated from the Greenhouse Gas Reduction Fund for the purposes
of this act,  establish criteria and procedures  ,
convene a review panel,  and meet other specified
requirements in connection with implementation. The bill would
require the Office of Environmental Health Hazard Assessment to
prepare a specified publicly available report by March 1, 2013, and
update it every 3 years thereafter in consultation with the
California Environmental Protection Agency, the public, and specified
experts.
   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 of 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 neither provides 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 deposited
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.    Section 38702.5 is added to the  
Health and Safety Code   , to read:  
   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. 
   SEC. 3.    Section 38704 is added to the  
Health and Safety Code   , to read:  
   38704.  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 shall
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:
   (a) Participatory program guideline development.
   (b) Targeted solicitation outreach.
   (c) Education and training efforts.
   (d) Solicitation scoring criteria priority.
   (e) Fund set-asides. 
   SEC. 4.    Section 38705 is added to the  
Health and Safety Code   , to read:  
   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 the investments made in
the prior fiscal year did not result in at least 25 percent of the
available moneys from that fiscal year being allocated to projects
that provide benefits to priority community investment areas, as
described in Section 38702.5, and that at least 10 percent of all the
available moneys from that fiscal year were not invested in projects
located within 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 within priority community investment
areas in an amount equal to the difference between the total
investments in the prior fiscal year that benefitted 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. 
   SEC. 5.    Section 38706 is added to the  
Health and Safety Code   , to read:  
   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, 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. 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.

   SEC. 2.   SEC. 6.   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  and 
Revitalization Act


   38850.  This part shall be known, and may be cited, as the
California Communities Healthy Air  and  Revitalization Act
 (Cal CHART)  .
   38851.   (a)   As used in this part, "most
impacted and disadvantaged communities" means those clusters of
census blocks, or, if data is available, the census block level,
having the highest 10 percent of cumulative impacts in California as
identified in a publicly available report prepared by the Office of
Environmental Health Hazard Assessment and completed prior to March
1, 2013. The report shall be updated every three years thereafter.

   (a) 
    (b)  The evaluation criteria for cumulative impacts
shall include, but not be limited to, exposures, public health
effects, and environmental degradation from the combined emissions
and discharges in clusters of census blocks, or, if data is
available, to the census block level, including, but not limited to,
environmental pollution from all sources, whether single or
multimedia, routinely, accidentally, or otherwise released, taking
into account sensitive populations and socioeonomic vulnerability, to
the extent data is readily available. 
   (b) 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.

   (c) The evaluation criteria for environmental exposures shall
include, at a minimum, criteria and toxic air pollution levels,
proximity to sources of air pollution, and sensitive populations.
   (d) The criteria for socioeconomic vulnerability shall include, to
the extent feasible, multiple indicators, including, but not limited
to, poverty level, percentage of homeownership, unemployment level,
and educational attainment.
   (e) In producing updated reports after 2013 pursuant to 
paragraph (1)   subdivision (a)  , the Office of
Environmental Health Hazard Assessment shall consult with the
California Environmental Protection Agency, the public, and experts
in the assessment of cumulative impacts and social vulnerability.
   38852.  (a) Not less than 10 percent of the revenues deposited in
the Greenhouse Gas Reduction Fund pursuant to Section 16428.8 of the
Government Code shall be allocated, upon appropriation by the
Legislature, for the purposes described in this part.
   (b) (1) Moneys allocated for the purposes described in this part
shall be used solely in the most impacted and disadvantaged
communities in California.
   (2) Moneys allocated for the purposes described in this part 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) Up to 5 percent of the moneys allocated for the purposes
described in this part may be used for purposes of administering this
part, upon appropriation by the Legislature.
   (c) To the extent that funds allocated for the purposes described
in this part are provided to existing programs, those funds shall be
used to supplement, not supplant, those programs to meet the goals of
this part. 
   38853.  (a) The state board shall administer moneys appropriated
from the Greenhouse Gas Reduction Fund for purposes of this part and
shall establish criteria and procedures for the implementation of
this part. The 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 appropriated from the
Greenhouse Gas Reduction Fund for purposes of this part.
   (b) The 
    38853.    The  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 board's Internet Web
site. 
   (c) Upon implementation of the program, and by every third January
1 thereafter, the 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 board's Internet Web
site.  
   (d) (1) By September 1, 2015, and every three years thereafter,
the 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 this
division. The report shall be made public on the 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) shall be approved or adopted with the approval of no fewer than
four members of the review panel described in Section 38854.
 
   (2) If four panel members do not approve an action as required by
paragraph (1), the state board shall resubmit the action, revised as
appropriate, to the panel for reconsideration, within 90 days of the
disapproval.  
   38854.   (a) (1) The state board shall convene a review panel to
make recommendations 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 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 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 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, the eligibility
criteria, and the selection of the programs and projects to be funded
under this part. 
   38855.  (a) Except as otherwise provided in subdivision (b), the
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 therequirements for
the use of moneys derived from valid regulatoryfees, 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.
   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.