Amended in Assembly April 22, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 26

Introduced by Assembly Member Bonilla

December 3, 2012

An act to amend begin delete Section 16428.8 of the Government Code end delete begin insert Sections 39712 and 39716 of, and to add Section 39714 to, the Health and Safety Code end insert , relating to begin delete climate change. end delete begin insert greenhouse gases. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 26, as amended, Bonilla. California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund.

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 act authorizes the state board to include the use of market-based compliance mechanisms. 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. Existing law begin delete authorizes the Controller to use moneys in the fund for cash flow loans to the General Fund, as prescribed end delete begin insert requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a 3-year investment plan for the moneys deposited in the Greenhouse Gas Reduction Fund end insert .

This bill would begin delete prohibit the Controller from using moneys in the fund for cash flow loans to the General Fund. end delete begin insert require the 3-year investment plan to allocate moneys consistent with additional statewide goals, as specified. The bill would require projects involving construction, alteration, demolition, installation, repair, and maintenance work paid for in whole or in part from the Greenhouse Gas Reduction Fund to be considered public works as defined. The bill would authorize moneys from the Greenhouse Gas Reduction Fund be made available to the owner or operator of a refinery to perform maintenance work to reduce greenhouse gas emissions if all maintenance work at the refinery related to reducing greenhouse gas emissions that falls within an apprenticeable occupation, as defined, will be performed by skilled journeypersons, as defined, and registered apprentices, as defined. end insert

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This bill would require the Chief of the Division of Apprenticeship Standards to approve, no later than January 1, 2016, a curriculum for an apprenticeship program in advanced safety training in performing work processes to reduce greenhouse gas emissions, as defined, and would require the chief, in consultation with the California Emergency Management Agency and the Division of Occupational Safety and Health, to periodically revise the curriculum to reflect current best practices. The bill would require an approved apprenticeship program or community college to issue a certificate to a worker who completes the approved curriculum. The bill would prohibit employers from being required to pay for the costs of the training or to pay wages to workers for the time spent in the training unless the employer has agreed to do so.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 39712 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

39712.  

(a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent
with the requirements of this part and Article 9.7 (commencing
with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
2 of the Government Code.

(2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5
(commencing with Section 38500) and is consistent with law. If
any expenditure of moneys from the fund for any measure or
project is determined by a court to be inconsistent with law, the
allocations for the remaining measures or projects shall be
severable and shall not be affected.

(b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent
with begin delete this division end delete begin insert Division 25.5 end insert and, where applicable and to the
extent feasible:

(1) Maximize economic, environmental, and public health
benefits to the state.

(2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.

(3) Complement efforts to improve air quality.

(4) Direct investment toward the most disadvantaged
communities and households in the state.

(5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.

(6) Lessen the impacts and effects of climate change on the
state’s communities, economy, and environment.

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(7) Transition the state’s workforce away from carbon intensive
project job skills to greenhouse gas emissions reducing project
job skills.

end insert begin insert

(8) Reinvest on a regional basis to meet economic needs
resulting from climate change policy.

end insert

(c) Moneys appropriated from the fund may be allocated,
consistent with subdivision (a), for the purpose of reducing
greenhouse gas emissions in this state through investments that
may include, but are not limited to, any of the following:

(1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public universities,
state and local public buildings, and industrial and manufacturing
facilities.

(2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.

(3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.

(4) Funding to reduce greenhouse gas emissions through
strategic planning and development of sustainable infrastructure
projects, including, but not limited to, transportation and housing.

(5) Funding to reduce greenhouse gas emissions through
increased in-state diversion of municipal solid waste from disposal
through waste reduction, diversion, and reuse.

(6) Funding to reduce greenhouse gas emissions through
investments in programs implemented by local and regional
agencies, local and regional collaboratives, and nonprofit
organizations coordinating with local governments.

(7) Funding in research, development, and deployment of
innovative technologies, measures, and practices related to
programs and projects funded pursuant to this part.

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(8) Funding for apprenticeship and job training programs
associated with greenhouse gas emissions reduction technologies.

end insert

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begin insert SEC. 2. end insert   

end insert

begin insert Section 39714 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

begin insert

begin insert 39714. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Apprenticeable occupation” means an occupation for
which the Chief of the Division of Apprenticeship Standards has
approved an apprenticeship program pursuant to Section 3075 of
the Labor Code.

(2) “Approved advanced safety training in performing work
processes to reduce greenhouse gas emissions” means a
curriculum of in-person classroom and laboratory instruction
approved by the Chief of the Division of Apprenticeship Standards
in consultation with the California Emergency Management Agency
and the Division of Occupational Safety and Health.

(3) “Registered apprentice” means an apprentice registered in
an apprenticeship program approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code who is performing work covered by the standards of that
apprenticeship program and receiving the supervision required
by the standards of that apprenticeship program.

(4) “Skilled journeyperson” means a worker who meets all of
the following:

(A) The worker accomplished either of the following:

(i) Graduated from an apprenticeship program for the
applicable occupation that was approved by the Chief of the
Division of Apprenticeship Standards or by the federal Office of
Apprenticeship, or by its predecessor agency.

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation that would be required to graduate from
an apprenticeship program for the applicable occupation that is
approved by the Chief of the Division of Apprenticeship Standards.

(B) The worker is being paid at least the prevailing hourly wage
rate for a journeyperson in the applicable occupation and
geographic area.

(C) The worker has completed within the prior two calendar
years at least 20 hours of approved advanced safety training in
performing work processes to reduce greenhouse gas emissions.
This requirement shall apply only to work performed on or after
January 1, 2018.

(b) Construction, alteration, demolition, installation, repair,
and maintenance work paid for in whole or in part from the fund
shall be considered public works as that term is used in Article 2
(commencing with Section 1770) of Chapter 1 of Part 7 of Division
2 of the Labor Code.

(c) Moneys from the fund may be made available to the owner
or operator of a refinery to perform maintenance work to reduce
greenhouse gas emissions if all maintenance work at the refinery
related to reducing greenhouse gas emissions that falls within an
apprenticeable occupation will be performed by skilled
journeypersons and registered apprentices.

(d) Approved advanced safety training in performing work
processes to reduce greenhouse gas emissions may be provided
by an apprenticeship program approved by the Chief of the
Division of Apprenticeship Standards or by the California
Community Colleges. No later than January 1, 2016, the Chief of
the Division of Apprenticeship Standards shall approve a
curriculum, and, in consultation with the California Emergency
Management Agency and the Division of Occupational Safety and
Health, shall periodically revise the curriculum to reflect current
best practices. An apprenticeship program or community college
shall issue a certificate to a worker who completes the approved
curriculum. Notwithstanding any other law, employers shall not
be required to pay for the costs of the training or to pay wages to
workers for the time spent in the training unless the employer has
agreed to do so.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 39716 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

39716.  

(a) The Department of Finance, on behalf of the
Governor, and in consultation with the state board and any other
relevant state entity, shall develop and submit to the Legislature
at the time of the department’s adjustments to the proposed
2013-14 fiscal year budget pursuant to subdivision (e) of Section
13308 of the Government Code a three-year investment plan.
Commencing with the 2016-17 fiscal year budget and every three
years thereafter, with the release of the Governor’s budget proposal,
the Department of Finance shall include updates to the investment
plan following the public process described in subdivisions (b)
and (c). The investment plan, consistent with the requirements of
Section 39712, shall do all of the following:

(1) Identify the state’s near-term and long-term greenhouse gas
emissions reduction goals and targets by sector.

(2) Analyze gaps, where applicable, in current state strategies
to meeting the state’s greenhouse gas emissions reduction goals
by sector.

(3) Identify priority programmatic investments of moneys that
will facilitate the achievement of feasible and cost-effective
greenhouse gas emissions reductions toward achievement of
greenhouse gas reduction goals and targets by sector, consistent
with subdivision (c) of Section 39712.

begin insert

(4) Allocate moneys consistent with statewide goals, including,
but not limited to, those described in Chapter 728 of the Statutes
of 2008.

end insert

(b) (1) The state board shall hold at least two public workshops
in different regions of the state and one public hearing prior to the
Department of Finance submitting the investment plan.

(2) The state board shall, prior to the submission of each
investment plan, consult with the Public Utilities Commission to
ensure the investment plan is coordinated with, and does not
conflict with or unduly overlap with, activities under the oversight
or administration of the Public Utilities Commission undertaken
pursuant to Part 5 (commencing with Section 38570) of Division
25.5 or other activities under the oversight or administration of
the Public Utilities Commission that facilitate greenhouse gas
emissions reductions consistent with begin delete this division end delete begin insert Division 25.5 end insert .
The investment plan shall include a description of the use of any
moneys generated by the sale of allowances received at no cost
by the investor-owned utilities pursuant to a market-based
compliance mechanism.

(c) The Climate Action Team, established under Executive
Order S-3-05, shall provide information to the Department of
Finance and the state board to assist in the development of each
investment plan. The Climate Action Team shall participate in
each public workshop held on an investment plan and provide
testimony to the state board on each investment plan. For purposes
of this section, the Secretary of Labor and Workforce Development
shall assist the Climate Action Team in its efforts.

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SECTION 1.  

Section 16428.8 of the Government Code is
amended to read:

16428.8.  

(a) The Greenhouse Gas Reduction Fund, hereafter
referred to in this article as the fund, is hereby created as a special
fund in the State Treasury.

(b) Except for fines and penalties, all moneys collected by the
State Air Resources Board from the auction or sale of allowances,
pursuant to a market-based compliance mechanism established
pursuant to Division 25.5 (commencing with Section 38500) of
the Health and Safety Code and specified in Sections 95800 to
96022, inclusive, of Title 17 of the California Code of Regulations,
shall be deposited in the fund and shall be available for
appropriation by the Legislature.

(c) All moneys deposited in the fund shall be appropriated and
shall be separately identified in the annual Budget Act. No moneys
from the General Fund or any other fund shall be deposited in the
fund.

(d) Notwithstanding any other law, the Controller shall not use
the moneys in the fund for cash flow loans to the General Fund as
provided in Sections 16310 and 16381.

(e) Any technical amendments made by the State Air Resources
Board to the regulations established under Sections 95800 to 96022,
inclusive, of Title 17 of the California Code of Regulations to
conform that regulation to this article shall be exempt from the
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3) and
from the review and approval of the Office of Administrative Law.

end delete