Amended in Assembly June 18, 2014

Amended in Assembly June 14, 2013

Amended in Senate May 28, 2013

Amended in Senate May 28, 2013

Amended in Senate April 23, 2013

Amended in Senate April 9, 2013

Amended in Senate April 1, 2013

Senate BillNo. 64


Introduced by Senator Corbett

January 10, 2013


An act to add Section 16428.96 to the Government Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

SB 64, as amended, Corbett. California Global Warming Solutions Act of 2006: market-based compliance mechanisms: Clean Technologybegin delete Investmentend deletebegin insert Innovationend insert Account.

begin insert

Existing law establishes the Governor’s Office of Business and Economic Development and sets forth its powers and duties as the Governor’s lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The office makes recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic goals.

end insert

The California Global Warming Solutions Act of 2006, hereafter the Global Warming Solutions Act, 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 use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board 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 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. Existing law permits moneys from the fund be allocated for the research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded under thebegin insert Californiaend insert Global Warming Solutions Actbegin insert of 2006end insert.

This bill would create the Clean Technologybegin delete Investmentend deletebegin insert Innovationend insert Account within the Greenhouse Gas Reduction Fund. The bill would require the Legislature to annually appropriate moneys from the Greenhouse Gas Reduction Fund or other funds to the Clean Technologybegin delete Investmentend deletebegin insert Innovationend insert Account in the Budget Act. The bill would make the moneys in the Clean Technologybegin delete Investmentend deletebegin insert Innovationend insert Account available to thebegin delete state boardend deletebegin insert Governor’s Office of Business and Economic Developmentend insert for the purposes ofbegin delete providing grants to nonprofit public benefit corporations and regional technology alliances to design and implement programs that accelerate the development, demonstration, and deployment by companies and entrepreneurs of transformative technologies that would reduce or have the potential to reduce greenhouse gas emissions and foster job creation in the stateend deletebegin insert evaluating the efficacy of a new technology or product to potentially reduce greenhouse gas emissions, providing grants for technologies or products that have been evaluated and confirmed to have the potential to reduce greenhouse gas emissions, and providing grants to entities that operate programs that target technologies or products that have the potential to reduce greenhouse gas emissionsend insert, as specified.begin insert The bill would require the office to establish a Science and Business Review Committee, with a prescribed membership, to provide programmatic and technical expertise to the office.end insert

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

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 16428.96 is added to the end insertbegin insertGovernment
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert16428.96.end insert  

(a) There is hereby created the Clean Technology
4Innovation Account within the Greenhouse Gas Reduction Fund,
5established pursuant to Section 16428.8. As part of the annual
6Budget Act, the Legislature shall appropriate moneys from the
7Greenhouse Gas Reduction Fund or other funds to the Clean
8Technology Innovation Account.

9(b) Funds in the Clean Technology Innovation Account shall,
10upon appropriation by the Legislature, be expended by the
11Governor’s Office of Business and Economic Development for the
12following purposes:

13(1) To evaluate the efficacy of a new technology or product to
14potentially reduce greenhouse gas emissions and quantify the
15potential emissions reduction on a per unit basis. The office shall
16develop criteria for the evaluation of greenhouse gas emissions
17and efficacy programs, and the development of appropriate metrics,
18in consultation with the Science and Business Review Committee,
19established pursuant to subdivision (c). The office shall contract
20with the University of California, the California State University,
21other academic institutions, federal laboratories, nonprofit
22organizations, or any combination thereof, with the necessary
23expertise to perform these evaluations.

24(2) To provide grants for technologies or products that have
25been evaluated and confirmed to have the potential to reduce
26greenhouse gas emissions pursuant to paragraph (1) and that
27require financial assistance for commercialization. The Science
28and Business Review Committee established pursuant to
29subdivision (c) shall assist the office to establish priorities for
30funding, including, but not limited to, funding technologies or
31 products with the highest quantified per unit emissions reduction,
32with the greatest likelihood of early or widespread adoption, or
33both, or providing a strategic contribution to achieving the state’s
34greenhouse gas reduction goals. The office shall also consider the
35commercial viability of the product or technology in arriving at
36its funding decisions. Funding shall be used for activities occurring
37in California, including, but not limited to, manufacturing.

P4    1(3) (A) To provide grants on a competitive basis to entities that
2operate programs that specifically target technologies or products
3that have the potential to reduce greenhouse gas emissions. Eligible
4entities shall be located in California and shall assist
5California-based start-ups and entrepreneurs, including nonprofit
6incubators and accelerators, regional technology alliances,
7technology transfer and commercialization programs, or other
8public or private consortiums. Nonprofit organizations shall be
9qualified under Section 501(c)(3) of the Internal Revenue Code.
10Not more than 20 percent of the funds in the account shall be used
11for the purposes described in this paragraph.

12(B) Funds may be used for activities that include, but are not
13limited to, all of the following:

14(i) Entrepreneurial training, emphasizing skills and abilities
15needed to successfully create and run small businesses.

16(ii) Providing access to capital and strategic partners by
17assisting early-stage companies to identify potential investors and
18strategic partners, facilitating connections, and securing capital.

19(iii) Providing demonstration or prototyping capabilities and
20equipment, either in house or in partnerships with local providers.

21(iv) Providing long-term structured programs to support startup
22businesses as their business plans and technology develop,
23including development of deployment plans and negotiation of
24licensing agreements, technology transfers, and patenting.

25(v) Providing a physical site to operate the business.

26(C) Priority shall be given to entities demonstrating all of the
27following characteristics:

28(i) Is a nonprofit organization that qualifies as an exempt
29organization under Section 501(c)(3) of the Internal Revenue Code.

30(ii) Has a board of advisors with diversity of expertise, including
31science, business financing, management, market evaluations,
32legal, and marketing.

33(iii) Strong evidence of investors and corporate relationships,
34either directly through the nonprofit incubator or through
35relationships with local economic development organizations, such
36as having a multiyear track record of attracting and vetting
37California clean technology companies or demonstrating successful
38fundraising by companies that have been through the entity’s
39program.

P5    1(iv) Has data collection on start-ups and ventures served, as
2well as services provided, with performance and service metrics
3being collected for a minimum of three years.

4(c) (1) The office shall establish a Science and Business Review
5Committee to provide programmatic and technical expertise to
6the office. The committee membership shall consist of one person
7from each of the following entities:

8(A) The State Air Resources Board.

9(B) The Department of Food and Agriculture.

10(C) The Department of Water Resources.

11(D) The State Water Resources Control Board.

12(E) The State Energy Resources Conservation and Development
13Commission.

14(F) The Department of Transportation.

15(G) The California Council on Science and Technology.

16(2) Persons from other departments or academic institutions
17whose expertise the office deems necessary may act as advisors
18to the committee.

19(d) The Science and Business Review Committee shall assist
20the office to do all of the following:

21(1) Develop criteria for greenhouse gas emissions evaluation
22and efficacy programs, and determine the appropriate metrics
23pursuant to paragraph (1) of subdivision (b).

24(2) Determine funding priorities and develop the policy
25guidelines for the grant programs described in paragraphs (2)
26and (3) of subdivision (b), including the project solicitation policies
27and evaluation criteria.

28(3) Evaluate and score funding requests.

29(e) In developing the guidelines for the grant programs, the
30Science and Business Review Committee shall assist the office to
31do all of the following:

32(1) Consult with interested parties, including, but not limited
33to, parties from the clean technology industry, academic
34institutions, and the investment and business community.

35(2) Establish policies regarding intellectual property rights
36arising from research and projects funded by the grants, which
37shall balance the opportunity of the State of California to benefit
38from the patents, royalties, and licenses that result from that
39research and those projects, with the need to ensure that essential
P6    1clean technology research is not unreasonably hindered by the
2intellectual property agreements.

3(3) Establish policies to recapture, in whole or in part, grants
4to new and existing companies that fail to maintain a substantial
5business presence within California for a reasonable period of
6time after receiving the grant, taking into consideration the amount
7of the grant, the ratio of public to private funds used for those
8activities, and the value of any intellectual property agreements
9entered into with the state.

10(4) Establish reporting requirements and other conditions
11necessary to manage an effective program, including, but not
12limited to, meaningful measurements to demonstrate and be able
13to quantify the effectiveness of program outcomes, fund matching
14requirements, if any, and minimum or maximum dollar amount of
15grants to be awarded.

16(f) Not more than 5 percent of the funds appropriated from the
17account shall be used to pay the costs incurred in the
18administration of the program.

19(g) The office shall conduct a public meeting to consider public
20comments before finalizing the guidelines for the grant programs.
21At least 30 days before the public meeting, the office shall publish
22the draft solicitation and evaluation guidelines on its Internet Web
23site.

24(h) Criteria and guidelines adopted by the office to implement
25this section are exempt from Chapter 3.5 (commencing with Section
2611340) of Division 3.

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begin delete
27

SECTION 1.  

It is the intent of the Legislature that moneys in
28the Clean Technology Investment Account be used to facilitate
29the achievement of reductions of greenhouse gas emissions in this
30state consistent with paragraph (7) of subdivision (c) of Section
3139712 of the Health and Safety Code.

32

SEC. 2.  

Section 16428.96 is added to the Government Code,
33to read:

34

16428.96.  

(a) There is hereby created the Clean Technology
35Investment Account within the Greenhouse Gas Reduction Fund,
36established pursuant to Section 16428.8. Moneys in the Clean
37Technology Investment Account shall be available for expenditure
38by the State Air Resources Board for the purposes of this section,
39upon appropriation by the Legislature. The Legislature shall
40annually appropriate moneys from the Greenhouse Gas Reduction
P7    1Fund or other funds to the Clean Technology Investment Account
2in the annual Budget Act.

3(b) (1) Moneys in the Clean Technology Investment Account
4shall be expended by the State Air Resources Board for grants to
5design and implement programs that accelerate the development,
6demonstration, and deployment by companies and entrepreneurs
7of transformative technologies that would reduce or have the
8potential to reduce greenhouse gas emissions and foster job creation
9in the state.

10(2) The State Air Resources Board shall make grants available
11pursuant to paragraph (1) to either of the following:

12(A) Nonprofit public benefit corporations formed pursuant to
13the Nonprofit Corporation Law (Division 2 (commencing with
14Section 5000) of the Corporations Code) that are qualified to do
15business in California and are qualified under Section 501(c)(3)
16of the Internal Revenue Code.

17(B) Regional technology alliances.

18(3) Not more than 5 percent of the moneys appropriated to the
19State Air Resources Board pursuant to this section shall be used
20to pay the costs associated with administering this section.

21(c) Priority for grants awarded pursuant to subdivision (b) shall
22be given to nonprofit public benefit corporations and regional
23technology alliances that have one or more of the following:

24(1) A demonstrated ability to accelerate innovative technologies
25intended to reduce greenhouse gas emissions.

26(2) A demonstrated ability to attract private capital.

27(3) Access to a broad network of resources, including, but not
28limited to, sponsoring entities, outside venture capital, academia,
29volunteers, and mentors.

30(4) Operate as part of a larger effort that it can leverage for the
31purposes of the programs designed pursuant to paragraph (1) of
32subdivision (b).

33(5) An ability to match public funds with private resources,
34whether actual cash or in-kind contributions.

35(d) Prior to disbursing moneys pursuant to this section, the State
36Air Resources Board shall develop and adopt project solicitation
37and evaluation guidelines. The state board shall conduct a public
38meeting to consider public comments prior to finalizing the
39guidelines. At least 30 days prior to the public meeting, the state
P8    1board shall publish the draft solicitation and evaluation guidelines
2on its Internet Web site.

3(e) The Administrative Procedure Act (Chapter 3.5 (commencing
4with Section 11340) of Part 1 of Division 3 of Title 2) does not
5apply to the development of program guidelines and solicitation
6and evaluation guidelines developed pursuant to this section.

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