Amended in Assembly July 2, 2014

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 Technology Innovation Account.

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.

The California Global Warming Solutions Act of 2006begin delete, hereafter the Global Warming Solutions Act,end delete 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 includebegin insert theend insert 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 fundbegin insert toend insert be allocated for the research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded under the California Global Warming Solutions Act of 2006.

This bill would create the Clean Technology Innovation 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 Technology Innovation Account in the Budget Act. The bill would make the moneys in the Clean Technology Innovation Account available to the Governor’s Office of Business and Economic Development for the purposes of evaluating the efficacy of a new technology or product to potentially reduce greenhouse gas emissionsbegin delete, providingend deletebegin insert and to provideend insert grantsbegin insert for activities in Californiaend insert for technologies or products that have been evaluated and confirmed to have the potential to reduce greenhouse gas emissions,begin delete and providing grants to entities that operate programs that target technologies or products that have the potential to reduce greenhouse gas emissions,end delete as specified. 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.

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

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

P2    1

SECTION 1.  

Section 16428.96 is added to the Government
2Code
, to read:

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16428.96.  

(a) There is hereby created the Clean Technology
2Innovation Account within the Greenhouse Gas Reduction Fund,
3established pursuant to Section 16428.8. As part of the annual
4Budget Act, the Legislature shall appropriate moneys from the
5Greenhouse Gas Reduction Fund or other funds to the Clean
6Technology Innovation Account.

7(b) begin deleteFunds end deletebegin insertMoneys end insertin the Clean Technology Innovation Account
8shall, upon appropriation by the Legislature, be expended by the
9Governor’s Office of Business and Economic Development for
10the following purposes:

11(1) To evaluate the efficacy of a new technology or product to
12potentially reduce greenhouse gas emissions and quantify the
13potential emissions reduction on a per unit basis. The office shall
14develop criteria for the evaluation of greenhouse gas emissions
15and efficacybegin delete programs,end deletebegin insert programsend insert and the development of
16appropriatebegin delete metrics,end deletebegin insert metricsend insert in consultation with the Science and
17Business Review Committee, established pursuant to subdivision
18(c). The office shall contract with the University of California, the
19California State University, other academic institutions, federal
20laboratories, nonprofit organizations, or any combination thereof,
21begin delete withend deletebegin insert that haveend insert the necessary expertise to perform these evaluations.

22(2) To provide grants for technologies or products that have
23been evaluated and confirmed to have the potential to reduce
24greenhouse gas emissions pursuant to paragraph (1) and that require
25financial assistance for commercialization. The Science and
26Business Review Committee established pursuant to subdivision
27(c) shall assist the office to establish priorities for funding,
28including, but not limited to, funding technologies or products
29with the highest quantified per unit emissions reduction, with the
30greatest likelihood of early or widespread adoption, or both, or
31providing a strategic contribution to achieving the state’s
32greenhouse gas reduction goals. The office shall also consider the
33commercial viability of the product or technology in arriving at
34its funding decisions. Funding shall be used for activities occurring
35in California, including, but not limited to, manufacturing.

begin delete

36(3) (A) To provide grants on a competitive basis to entities that
37operate programs that specifically target technologies or products
38that have the potential to reduce greenhouse gas emissions. Eligible
39entities shall be located in California and shall assist
40California-based start-ups and entrepreneurs, including nonprofit
P4    1incubators and accelerators, regional technology alliances,
2technology transfer and commercialization programs, or other
3public or private consortiums. Nonprofit organizations shall be
4qualified under Section 501(c)(3) of the Internal Revenue Code.
5Not more than 20 percent of the funds in the account shall be used
6for the purposes described in this paragraph.

7(B) Funds may be used for activities that include, but are not
8limited to, all of the following:

9(i) Entrepreneurial training, emphasizing skills and abilities
10needed to successfully create and run small businesses.

11(ii) Providing access to capital and strategic partners by assisting
12early-stage companies to identify potential investors and strategic
13partners, facilitating connections, and securing capital.

14(iii) Providing demonstration or prototyping capabilities and
15equipment, either in house or in partnerships with local providers.

16(iv) Providing long-term structured programs to support startup
17businesses as their business plans and technology develop,
18including development of deployment plans and negotiation of
19licensing agreements, technology transfers, and patenting.

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

21(C) Priority shall be given to entities demonstrating all of the
22following characteristics:

23(i) Is a nonprofit organization that qualifies as an exempt
24organization under Section 501(c)(3) of the Internal Revenue Code.

25(ii) Has a board of advisors with diversity of expertise, including
26science, business financing, management, market evaluations,
27legal, and marketing.

28(iii) Strong evidence of investors and corporate relationships,
29either directly through the nonprofit incubator or through
30relationships with local economic development organizations, such
31as having a multiyear track record of attracting and vetting
32California clean technology companies or demonstrating successful
33fundraising by companies that have been through the entity’s
34program.

35(iv) Has data collection on start-ups and ventures served, as
36well as services provided, with performance and service metrics
37being collected for a minimum of three years.

end delete

38(c) (1) The office shall establish a Science and Business Review
39Committee to provide programmatic and technical expertise to the
P5    1office. The committee membership shall consist of one person
2from each of the following entities:

3(A) The State Air Resources Board.

4(B) The Department of Food and Agriculture.

5(C) The Department of Water Resources.

6(D) The State Water Resources Control Board.

7(E) The State Energy Resources Conservation and Development
8Commission.

9(F) The Department of Transportation.

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

11(2) Persons from other departments or academic institutions
12whose expertise the office deems necessary may act as advisors
13to the committee.

14(d) The Science and Business Review Committee shall assist
15the officebegin delete to doend deletebegin insert in doingend insert all of the following:

16(1) Develop criteria for greenhouse gas emissions evaluation
17and efficacybegin delete programs,end deletebegin insert programsend insert and determine the appropriate
18metrics pursuant to paragraph (1) of subdivision (b).

19(2) Determine funding priorities and develop the policy
20guidelines for the grantbegin delete programsend deletebegin insert programend insert described inbegin delete paragraphsend delete
21begin insert paragraphend insert (2)begin delete and (3)end delete of subdivision (b), including the project
22solicitation policies and evaluation criteria.

23(3) Evaluate and score funding requests.

24(e) In developing the guidelines for the grantbegin delete programs,end delete
25begin insert program,end insert the Science and Business Review Committee shall assist
26the office to do all of the following:

27(1) Consult with interested parties, including, but not limited
28to, parties from the clean technology industry, academic
29institutions, and the investment and business community.

30(2) Establish policies regarding intellectual property rights
31arising from research and projects funded by thebegin delete grants, whichend delete
32begin insert grants. These policiesend insert shall balance the opportunity of the State
33of California to benefit from the patents, royalties, and licenses
34that result from that research and those projects, with the need to
35ensure that essential clean technology research is not unreasonably
36hindered by the intellectual property agreements.

37(3) Establish policies to recapture, in whole or in part, grants to
38new and existing companies that fail to maintain a substantial
39business presence within California for a reasonable period of time
40after receiving the grant, taking into consideration the amount of
P6    1the grant, the ratio of public to private funds used for those
2activities, and the value of any intellectual property agreements
3entered into with the state.

4(4) Establish reporting requirements and other conditions
5necessary to manage an effective program, including, but not
6limited to, meaningful measurements to demonstrate and be able
7to quantify the effectiveness of program outcomes,begin delete fund matchingend delete
8begin insert fund-matchingend insert requirements, if any, and minimum or maximum
9dollarbegin delete amountend deletebegin insert amountsend insert of grants to be awarded.

10(f) Not more than 5 percent of thebegin delete fundsend deletebegin insert moneysend insert appropriated
11from the account shall be used to pay the costs incurred in the
12administration of the program.

13(g) The office shall conduct a public meeting to consider public
14comments before finalizing the guidelines for the grant programs.
15At least 30 days before the public meeting, the office shall publish
16the draft solicitation and evaluation guidelines on its Internet Web
17site.

18(h) Criteria and guidelines adopted by the office to implement
19this section are exempt frombegin delete Chapterend deletebegin insert the Administrative Procedure
20Act (Chapterend insert
3.5 (commencing with Section 11340) of Division
21begin delete 3.end deletebegin insert 3).end insert

begin insert

22(i) For purposes of this section, “office” means the Governor’s
23Office of Business and Economic Development.

end insert


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