BILL NUMBER: SB 1572	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 1, 2012

INTRODUCED BY   Senator Pavley

                        FEBRUARY 24, 2012

   An act to add Sections 38575 and  38575.5  
38575.1  to the Health and Safety Code, relating to greenhouse
gases.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1572, as amended, Pavley. California Global Warming Solutions
Act of 2006: Greenhouse Gas Reduction Account.
   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 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 schedule 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 Greenhouse Gas Reduction Account within
the Air Pollution Control Fund. The bill would require moneys, as
specified, collected pursuant to a market-based compliance mechanism
 to  be deposited in this account. The bill also would
require those moneys, upon appropriation by the Legislature, be used
for purposes of carrying out the  California Global Warming
Solutions Act of 2006   act  . The bill would
 declare the intent of the Legislature to enact legislation
that would   require the Governor to submit to the
Legislature a draft plan detail   ing how moneys in the
account should be spent and to  establish criteria for the
development and implementation of  an   a final
 expenditure plan, as specified, for moneys appropriated from
the Greenhouse Gas Reduction Account.  The bill would require
that funds appropriated from the account be spent according to the
final expenditure plan and for the purpose of achieving the goal of
reducing greenhouse gas emissions in a manner that is consistent with
the act. The bill would require state agencies designated by the
Governor to develop and adopt the final expenditure plan through an
open, public process. 
   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) In accordance with its discretionary authority to adopt
market-based compliance mechanisms pursuant to Part 5 (commencing
with Section 38570) of Division 25.5 of the Health and Safety Code,
the State Air Resources Board adopted on December 22, 2011, a final
regulation order establishing the cap-and-trade program, which took
effect on January 1, 2012.
   (b) California's cap-and-trade program is authorized by the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code), and
the funds generated by the program are regulatory fees  whose
use   , the use of which  is required to conform
with Sinclair Paint Co. v. State Bd. of Equalization (1997) 15
Cal.4th 866.
   (c) Provided the cap-and-trade regulation remains substantially
unchanged, the state board will auction greenhouse gas emissions
allowances beginning in the 2012  calender  
calendar  year.
   (d) Pursuant to the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), proceeds from the auction of allowances will be
deposited in the Air Pollution Control Fund, and will only be
available, upon appropriation by the Legislature, for the purposes
designated in the act.
   (e) If the cap-and-trade regulation does not remain in effect, the
state board may consider alternate rules or regulations that would
be adopted pursuant to the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) in an open public process to ensure that statewide
greenhouse gas emissions are reduced to 1990 levels by 2020.
  SEC. 2.  Section 38575 is added to the Health and Safety Code, to
read:
   38575.  (a) The Greenhouse Gas Reduction Account is hereby created
within the Air Pollution Control Fund.
   (b) Notwithstanding Section 38597, all moneys, excluding
penalties and fines,   moneys  collected pursuant
to this part  , excluding penalties and fines,  shall be
deposited in the Greenhouse Gas Reduction Account and shall be
available, upon appropriation by the Legislature, for purposes of
carrying out this division. 
  SEC. 3.    It is the intent of the Legislature to
enact legislation that would do all of the following:
   (a) Require the Governor to submit to the Legislature a draft
expenditure plan detailing how moneys in the Greenhouse Gas Reduction
Account should be spent.
   (b) Based on the draft expenditure plan, establish criteria to be
used by a state agency or multiple state agencies, as appropriate, to
develop and adopt a final expenditure plan for the expenditure of
moneys in the Greenhouse Gas Reduction Account, upon appropriation of
those moneys by the Legislature.
   (c) Appropriate funds from the Greenhouse Gas Reduction Account to
be spent according to the final expenditure plan and for the purpose
of achieving the goal of reducing greenhouse gas emissions in a
manner that is consistent with Division 25.5 (commencing with Section
38500) of the Health and Safety Code.
   (d) Require a state agency or multiple state agencies, as
appropriate, to develop and adopt the final expenditure plan through
an open public process. 
   SEC. 3.    Section 38575.1 is added to the  
Health and Safety Code   , to read: 
   38575.1.  (a) The Governor shall submit to the Legislature a draft
expenditure plan detailing how moneys in the Greenhouse Gas
Reduction Account established in Section 38575 should be spent.
   (b) Based on the draft expenditure plan, the Governor shall
establish criteria to be used by state agencies, as designated by the
Governor, to develop and adopt a final expenditure plan for the
expenditure of moneys in the Greenhouse Gas Reduction Account, upon
appropriation of those moneys by the Legislature.
   (c) Funds appropriated from the Greenhouse Gas Reduction Account
shall be spent according to the final expenditure plan and for the
purpose of achieving the goal of reducing greenhouse gas emissions in
a manner that is consistent with Division 25.5 (commencing with
Section 38500).
   (d) State agencies designated by the Governor pursuant to
subdivision (b) shall develop and adopt the final expenditure plan
through an open, public process.