Amended in Senate August 25, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1629

Introduced by Committee on Budget (Assembly Members Ting (Chair), Travis Allen, Bigelow, Bloom, Bonta, Campos, Chávez, Chiu, Cooper, Gordon, Grove, Harper, Holden, Irwin, Kim, Lackey, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Rodriguez, Thurmond, Wilk, and Williams)

January 7, 2016

An act begin insert end insert begin insert to add Section 412 to the Food and Agricultural Code, to add Section 12802.10 to the Government Code, to add Section 44274.3 to the Health and Safety Code, and to add Section 4799.05 to the Public Resources Code, end insert relating to begin delete the Budget Act of 2016. end delete begin insert greenhouse gases, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1629, as amended, Committee on Budget. begin delete Budget Act of 2016. end delete begin insert Greenhouse gas emissions. end insert

begin insert

(1) 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 as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

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Existing law requires the California Environmental Protection Agency to identify disadvantaged communities and requires the Department of Finance, in consultation with the State Air Resources 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 begin insert

This bill would require the Secretary of the Natural Resources Agency to support the development of sustainable communities by managing and awarding financial assistance for the preparation and implementation of specified green infrastructure projects that reduce greenhouse gas emissions and provide multiple benefits, as defined, to specified entities. The bill would authorize moneys from the Greenhouse Gas Reduction Fund, upon appropriation, to be available for allocation by the Secretary of the Natural Resources Agency for the purposes of awarding the financial assistance. The bill would require the secretary to allocate at least 75% of the moneys to projects in critically underserved communities or disadvantaged communities, as specified. The bill would exempt the development and adoption of guidelines and selection criteria from the Administrative Procedure Act.

end insert begin insert

This bill would require the State Air Resources Board, no later than January 1, 2017, in consultation with the Natural Resources Agency and the Department of Forestry and Fire Protection, to complete a standardized greenhouse gas emissions inventory, as specified, and, by January 1, 2018, to complete a standardized accounting framework that supports statewide greenhouse gas emissions reduction goals and investments of moneys from the Greenhouse Gas Reduction Fund, as specified.

end insert begin insert

This bill would find and declare that a diversity of dairy methane management practices, including anaerobic digesters and nondigester dairy methane management strategies, can effectively reduce greenhouse gas emissions.

end insert begin insert

(2) Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Pursuant to its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles.

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The Charge Ahead California Initiative requires the State Air Resources Board to adopt, no later than June 30, 2015, revisions to the criteria and other requirements for the Clean Vehicle Rebate Project to, among other things, limit eligibility based on income.

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This bill would require the State Air Resources Board to adopt regulations for the purposes of the Clean Vehicle Rebate Project that would establish the maximum gross annual income at specified levels for a person to be eligible for a rebate; increase rebate payments by $500 for low-income applicants, as defined; include outreach to disadvantaged communities, as specified, to increase consumer awareness; and prioritize rebate payments for low-income applicants.

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(3) Existing law authorizes the Director of Forestry and Fire Protection to enter into agreements and make loans for various forest resource improvement projects to improve the timber productivity of forest lands in the state and to improve all forest resources and the total forest resource system.

end insert begin insert

This bill would additionally authorize the Director of Forestry and Fire Protection to provide grants to, or enter into contracts or other cooperative agreements with, private or nongovernmental entities, Native American tribes, or local, state, and federal public agencies for the implementation and administration of projects and programs to improve forest health and reduce greenhouse gas emissions. The bill would require any such project or program funded with moneys from the Greenhouse Gas Reduction Fund to comply with all statutory and program requirements applicable to the use of moneys from that fund.

end insert begin insert

This bill would require the Department of Forestry and Fire Protection, from moneys appropriated to it, to allocate not less than $5,000,000 to the Wildlife Conservation Board and public conservancies with public land management responsibilities for working forest conservation easements, as provided, and not less than $2,500,000 for specified fire prevention and management activities related to the implementation of managed ignition and prescribed burns. The bill would also require the department to allocate funding to specified landscape-scale projects.

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(4) This bill would appropriate $100,000 from the Greenhouse Gas Reduction Fund to the Wildlife Conservation Board to provide administrative support for projects and programs to improve forest health and reduce greenhouse gas emissions.

end insert begin insert

(5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . 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

It is the intent of the Legislature to provide funding
for various projects that decrease wildfire risk and reduce
greenhouse gas emissions that are caused by wildfires in Tier 1
High Hazard Zones identified by the Tree Mortality Task Force,
however, it is not the intent of the Legislature that this act
eliminate, alter, or otherwise interfere with any activities
implemented by the Tree Mortality Task Force relating to forest
improvement and health, including vegetation management
activities.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 412 is added to the end insert begin insert Food and Agricultural
Code end insert begin insert , to read: end insert

begin insert

begin insert 412. end insert   

(a) The Legislature finds and declares that a diversity of
dairy methane management practices, including anaerobic
digesters and nondigester dairy methane management strategies,
can effectively reduce greenhouse gas emissions. Nondigester
dairy methane management strategies include, but are not limited
to, scrape conversion, open solar drying and composting of manure
onsite, conversion of dairy operations to pasture-based
management, and solid separation technologies.

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

(1) “Conversion of dairy operations to pasture-based
management” means dairying systems where the dairy cows spend
a portion of their time grazing on fields in which some or all of
the manure is deposited and left in the field and decomposes
aerobically, which avoids methane emissions.

(2) “Open solar drying and composting of manure onsite”
means the collection, storage, and drying of dairy manure in a
nonliquid environment.

(3) “Scrape conversion” means the conversion of flush water
lagoon systems to solid-scrape or dry manure management
practices, including vacuum technologies for manure management.

(4) “Solid separation technologies” means technologies
designed to separate liquid components of manure from minerals
and organic components, for the purposes of reducing methane
emissions.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 12802.10 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 12802.10. end insert   

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

(1) “Critically underserved community” has the same meaning
as defined in Section 5642 of the Public Resources Code.

(2) “Disadvantaged community” means a community identified
pursuant to Section 39711 of the Health and Safety Code or
pursuant to Section 75005 of the Public Resources Code.

(3) “Multiple benefits” includes, but is not limited to, a decrease
in air and water pollution or a reduction in the consumption of
natural resources and energy, including, but not limited to, the
establishment and enhancement of projects listed in subdivision
(e).

(4) “Secretary” means the Secretary of the Natural Resources
Agency.

(b) To support the development of sustainable communities, the
secretary shall manage and award financial assistance, for the
preparation and implementation of green infrastructure projects
that reduce greenhouse gas emissions and provide multiple
benefits, to any of the following:

(1) A city.

(2) A county.

(3) A special district.

(4) A nonprofit organization.

(5) An agency or entity formed pursuant to the Joint Exercise
of Powers Act (Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1) if at least one of the parties to the joint powers
agreement qualifies as an eligible applicant, notwithstanding the
Joint Exercise of Powers Act.

(c) Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8, shall be available, upon appropriation
by the Legislature, for allocation by the secretary pursuant to this
section.

(d) The secretary shall develop minimum requirements for
awarding moneys for eligible projects pursuant to this section.
Those requirements shall require a project, in addition to reducing
greenhouse gas emissions, to do at least one of the following:

(1) Acquire, create, enhance, or expand community parks and
green spaces.

(2) Use natural systems or systems that mimic natural systems
to achieve multiple benefits.

(e) The multiple benefits of a project may include, but are not
limited to, the establishment or enhancement of at least two of the
following:

(1) The greening of existing public lands and structures,
including schools.

(2) Multiobjective stormwater projects, including the
construction of permeable surfaces and collection basins and
barriers.

(3) Green streets and alleys that integrate green infrastructure
elements into the street or alley design, including permeable
surfaces, bioswales, and trees.

(4) Urban heat island mitigation and energy conservation efforts
through greening, including green roof projects.

(5) Nonmotorized urban trails that provide safe routes for both
recreation and travel between residences, workplaces, commercial
centers, and schools.

(6) Tree canopy.

(7) Wetlands.

(8) Neighborhood, city, regional, or county parks and open
space.

(9) Climate resilience and adaptation of urban areas that reduce
vulnerability to climate impacts and improve the ability of natural
systems to buffer the impacts of climate change.

(10) Economic, social, and health benefits, including, but not
limited to, recreational opportunities, workforce education and
training, contracting, and job opportunities for disadvantaged
communities.

(f) The secretary shall give additional consideration to awarding
moneys for a project pursuant to this section that meets at least
two of the following criteria:

(1) Provides park or recreational benefits to a critically
underserved community or disadvantaged community.

(2) Is proposed by a critically underserved community or
disadvantaged community.

(3) Develops partnerships with local community organizations
and businesses in order to strengthen outreach to disadvantaged
communities, provides access to quality jobs for residents of
disadvantaged communities, or provides access to workforce
education and training.

(4) Uses interagency cooperation and integration.

(5) Uses existing public lands and facilitates the use of public
resources and investments, including schools.

(g) The secretary shall allocate at least 75 percent of the moneys
available for purposes of this section to projects that are located
in, and that provide benefits to, critically underserved communities
or disadvantaged communities, and shall allocate at least one-third
of that 75 percent to disadvantaged communities, as identified
pursuant to Section 39711 of the Health and Safety Code.

(h) In implementing this section, the secretary shall maximize
the expenditure of funds made available pursuant to the Statewide
Park Development and Community Revitalization Act of 2008
(Chapter 3.3 (commencing with Section 5640) of Division 5 of the
Public Resources Code).

(i) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1) does not apply to the development
and adoption of guidelines and selection criteria adopted pursuant
to this section.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 44274.3 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 44274.3. end insert   

(a) For purposes of this section, “low income” means
a resident of the state whose household income is less than or
equal to 300 percent of the federal poverty level.

(b) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts,
and the public, shall adopt regulations for the purposes of the
Clean Vehicle Rebate Project, established as part of the Air Quality
Improvement Program, that do all of the following:

(1) Limit eligibility for the project based on income by providing
that, for all eligible vehicle types except fuel cell electric vehicles,
the gross annual income, as reported on the Internal Revenue
Service Form 1040, the Internal Revenue Service Form 1040A, or
the Internal Revenue Service Form 1040EZ, for a person to be
eligible for a rebate payment shall not exceed the following:

(A) One hundred twenty-five thousand dollars ($125,000) for
single filers.

(B) One hundred seventy thousand dollars ($170,000) for
head-of-household filers.

(C) Two hundred fifty thousand dollars ($250,000) for joint
filers.

(2) For a low-income applicant, increase the rebate payment
by five hundred dollars ($500) for all eligible vehicle types.

(3) Include outreach to disadvantaged communities, as identified
pursuant to Section 39711, to increase consumer awareness.

(4) Prioritize rebate payments for low-income applicants.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 4799.05 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 4799.05. end insert   

(a) The director may provide grants to, or enter into
contracts or other cooperative agreements with, entities, including,
but not limited to, private or nongovernmental entities, Native
American tribes, or local, state, and federal public agencies, for
the implementation and administration of projects and programs
to improve forest health and reduce greenhouse gas emissions.

(b) Any project or program described in this section that is
funded with moneys from the Greenhouse Gas Reduction Fund,
created pursuant to Section 16428.8 of the Government Code,
shall comply with all statutory and program requirements
applicable to the use of moneys from the fund.

(c) Moneys appropriated to the department for the purposes of
this section shall be allocated as follows:

(1) Not less than five million dollars ($5,000,000) to the Wildlife
Conservation Board and other public conservancies with public
land management responsibilities for working forest conservation
easements. The department shall collaborate with the board and
those conservancies to facilitate the easement acquisition process.

(2) Not less than two million five hundred thousand dollars
($2,500,000) for the collaborative use of managed ignition or
prescribed burns that are carried out either as part of a
landscape-scale project, as described in paragraph (3), or as an
individual project. The department shall collaborate with all
directly affected public agencies in the implementation of this
paragraph.

(3) For landscape-scale projects, as follows:

(A) (i) To subsidize the removal of small diameter material,
especially surface fuels and ladder fuels, as well as dead trees,
including the transportation of this material to biomass plants or
shredding facilities.

(ii)  For purposes of this subparagraph, the State Air Resources
Board shall develop and adopt new carbon and particulate
emission standards for biomass plants that it considers to be the
best available technology.

(iii) A biomass plant may receive a subsidy pursuant to this
subparagraph until January 1, 2019. The plant may continue to
receive the subsidy until July 1, 2023, if the plant complies with
the applicable standards adopted by the state board pursuant to
clause (ii) within 18 months after adoption of the standards.

(B) For multiple benefit projects such as tree thinning, carbon
sequestration, biomass processing, forest resilience, and improved
ecological outcome projects. The department shall give grant
funding priority to landowners who practice uneven-age forest
management within the boundaries of the project and whose
activities are conducted pursuant to an approved timber harvest
plan, nonindustrial timber harvest plan, or working forest
management plan. An application for a grant for a project under
this subparagraph shall include a description of how the proposed
project will increase average stem diameter and provide other
site-specific improvement to forest complexity, as demonstrated
by the expansion of the variety of tree age classes and species
covering a period of at least 50 years. The department shall also
give funding priority to landowners who agree to long-term forest
management goals prescribed by the department.

(C) For activities on National Forest lands to increase tree
stand heterogeneity, create forest openings of less than one acre,
and increase average tree stand diameter of residual trees. Any
grants provided under this subparagraph shall be approved by
the department and the State Air Resources Board, in collaboration
with appropriate state agencies.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert begin insert

The State Air Resources Board, in consultation with
the Natural Resources Agency and the Department of Forestry
and Fire Protection, shall do both of the following:

end insert begin insert

(a) No later than January 1, 2017, complete a standardized
greenhouse gas emissions inventory for natural and working lands.

end insert begin insert

(b) (1) No later than January 1, 2018, complete a standardized
accounting framework for forests that supports statewide
greenhouse gas emissions reduction goals and investments of
moneys from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code.

end insert begin insert

(2) The accounting framework shall include a statewide baseline
projection of business-as-usual emissions and carbon sequestration
and shall consider state, regional, and project scales of accounting
based on forest type and other ecological indicators.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert The sum of one hundred thousand dollars ($100,000)
is hereby appropriated from the Greenhouse Gas Reduction Fund,
created pursuant to Section 16428.8 of the Government Code, to
the Wildlife Conservation Board to provide administrative support
for projects and programs to improve forest health and reduce
greenhouse gas emissions. end insert

begin insert

begin insert SEC. 8. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the 2016 Budget Act.

end delete