Amended in Senate August 31, 2016

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), begin delete Travis Allen, Bigelow, end delete Bloom, Bonta, Campos, begin delete Chávez, end delete Chiu, Cooper, Gordon, begin delete Grove, Harper, end delete Holden, Irwin, begin delete Kim, Lackey, end delete McCarty, begin delete Melendez, end delete Mullin, Nazarian, begin delete Obernolte, end delete O'Donnell, begin delete Patterson, end delete Rodriguez, Thurmond, begin delete Wilk, end delete and Williams)

January 7, 2016

An act to begin delete add Section 412 to end delete begin insert amend Section 568 of, and to add Sections 412 and 569 to, end insert the Food and Agricultural Code, to add begin delete Section 12802.10 to end delete begin insert Sections 12802.10 and 16428.86 to end insert the Government Code, begin insert to amend Section 39712 of, and end insert to add begin insert and repeal end insert Section 44274.3 begin delete to end delete begin insert of, end insert the Health and Safety Code, begin delete and end delete begin insert to amend Sections 6009.1, 42997, and 42999 of, and end insert to add begin delete Section 4799.05 to end delete begin insert Sections 717 and 4799.05 to, end insert the Public Resources Code, begin insert and to add Section 399.20.3 to the Public Utilities Code, end insert relating to begin delete greenhouse gases, end delete begin insert public resources, end insert and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

AB 1629, as amended, Committee on Budget. begin delete Greenhouse gas emissions. end delete begin insert Public resources: greenhouse emissions and biomass. end 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. begin insert end insert begin insert 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. 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 requires moneys from the fund to be allocated for the purpose of reducing greenhouse gas emissions in this state and satisfying other purposes, where applicable and to the extent feasible, and authorizes specified investments if the investment furthers the regulatory purposes of the act and is consistent with law. end insert

begin insert

Existing law, the Cannella Environmental Farming Act of 1995, requires the Department of Food and Agriculture to establish and oversee an environmental farming program to provide incentives to farmers whose practices promote the well-being of ecosystems, air quality, and wildlife and their habitat. The act requires the Secretary of Food and Agriculture to convene a 5-member Scientific Advisory Panel on Environmental Farming, as prescribed, for the purpose of providing advice and assistance to federal, state, and local government agencies on issues relating to air, water, and wildlife habitat, as specified. Existing law authorizes the panel to establish ad hoc committees to assist the panel in performing its functions.

end insert begin insert

This bill would increase the number of members on the panel from 5 to 9 members and would require that the secretary appoint 5 instead of 3 of these members, the Secretary for Environmental Protection appoint 2 instead of one of these members, and the Secretary of the Natural Resources Agency appoint 2 instead of one of these members, as prescribed. The bill would additionally allow the secretary to appoint, in consultation with the panel, ex officio nonvoting members to the panel. The bill would add representatives of nongovernmental entities to persons who may be on the ad hoc committees.

end insert begin insert

This bill would require the State Air Resources Board to consult with the Secretary of Food and Agriculture and the panel in developing the quantification methods to demonstrate and quantify on-farm greenhouse gas emissions reductions.

end insert begin insert

This bill would require the Department of Food and Agriculture, in consultation with the panel, to establish and oversee a Healthy Soils Program to seek to optimize climate benefits while supporting the economic viability of California agriculture by providing incentives, including loans, grants, research, and technical assistance, or educational materials and outreach, to farmers whose management practices contribute to healthy soils and result in net long-term on-farm greenhouse gas benefits. The bill would authorize the program to include funding of on-farm demonstration projects and, if the funding of those projects is included, would require the department to establish a technical advisory committee to review the project applications for scientific validity and the project’s potential to achieve greenhouse gas benefits. The bill would require the department to implement the program and quantify greenhouse gas emissions reductions in accordance with the quantification methods developed by the State Air Resources Board and specified funding guidelines.

end insert begin insert

This bill would require the Department of Food and Agriculture, prior to awarding grant funds from moneys from the Greenhouse Gas Reduction Fund, to review the applicant analysis identifying potential adverse impacts of a proposed project. The bill would prohibit a project from receiving funding from the department unless the applicant has made certain demonstrations to the department. The bill would require the department to prioritize projects based on the criteria pollutant emission benefits achieved by the project.

end insert

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.

begin insert

This bill would additionally require moneys in the fund, where applicable and to the extent feasible, to be allocated to provide opportunities for Native American tribes in the state to participate in and benefit from statewide efforts to reduce greenhouse gas emissions. The bill also would additionally authorize moneys in the fund to be allocated to fund investments in programs implemented by Native American tribes in the state if the investments further the regulatory purposes of the act and are consistent with law.

end 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 begin delete secretary end delete begin insert Secretary of the Natural Resources Agency end insert to allocate at least 75% of the moneys to projects in begin delete critically underserved communities or end delete disadvantaged communities, as specified. The bill would exempt the development and adoption of guidelines and selection criteria from the Administrative Procedure Act.

This bill would require the State Air Resources Board, no later than begin delete January 1, 2017, end delete begin insert December 30, 2018, end insert 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 begin delete January 1, end delete begin insert December 30, end insert 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.

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.

(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.

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.

This bill begin delete would end delete begin insert would, between November 1, 2016, and July 1, 2017, end insert require the State Air Resources begin delete Board to adopt regulations end delete begin insert Board, end insert for the purposes of the Clean Vehicle Rebate begin delete Project that would establish the end delete begin insert Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified end insert maximum gross annual begin delete income at specified levels for a person to be eligible for a rebate; end delete begin insert income; end insert increase rebate payments by $500 for low-income applicants, as defined; begin delete include outreach to disadvantaged communities, as specified, to increase consumer awareness; end delete and prioritize rebate payments for low-income applicants.

(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.

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.

This bill would require the Department of Forestry and Fire begin delete 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 end delete begin insert Protection end insert to allocate funding to specified landscape-scale projects.

begin insert

(4) Existing law establishes the CalRecycle Greenhouse Gas Reduction Revolving Loan Program, administered by the Department of Resources Recycling and Recovery (CalRecycle), to provide loans to reduce the emissions of greenhouse gases by promoting in-state development of infrastructure to process organic and other recyclable materials into new value-added products. Existing law requires CalRecycle to administer a grant program to provide financial assistance, in the form of grants, incentive payments, contracts, or other funding mechanisms, to reduce the emissions of greenhouse gases by promoting in-state development of infrastructure to process organics and other recyclable materials into new value-added products.

end insert begin insert

This bill would revise the 2 programs described above to, among other things, expand the projects eligible for financial assistance under those programs to other projects to reduce organic waste.

end insert begin insert

(5) Existing law grants to various local entities the right, title, and interest of the state in and to certain tidelands and submerged lands in trust for public trust purposes. Existing law makes legislative declarations and findings regarding those granted public trust lands, the role of the state as both trustor and representative of the people of the state, who are the trust beneficiaries, and the fiduciary duties of the trustee, including the duty to take reasonable steps to enforce claims that are part of the trust property and to defend actions that may result in a loss to the trust.

end insert begin insert

This bill would additionally find and declare that a trustee of public trust lands may bring any action related to its granted public trust lands, including an action to abate a public nuisance, as a representative of the trust beneficiaries.

end insert begin insert

(6) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires every electrical corporation to file with the commission a standard tariff for electricity generated by an electric generation facility, as defined, that qualifies for the tariff, is owned and operated by a retail customer of the electrical corporation, and is located within the service territory of, and developed to sell electricity to, the electrical corporation. The commission refers to this requirement as the renewable feed-in tariff. Existing law requires that, in order to qualify for the tariff, the electric generation facility: (1) have an effective capacity of not more than 3 megawatts, subject to the authority of the commission to reduce this megawatt limitation, (2) be interconnected and operate in parallel with the electric transmission and distribution grid, (3) be strategically located and interconnected to the electrical transmission and distribution system in a manner that optimizes the deliverability of electricity generated at the facility to load centers, and (4) meet the definition of an eligible renewable energy resource under the California Renewables Portfolio Standard Program. Existing law requires an electrical corporation to make the tariff available to the owner or operator of an electric generation facility within the service territory of the electrical corporation, upon request, on a first-come-first-served basis, until the electrical corporation meets its proportionate share of a statewide cap of 750 megawatts cumulative rated generation capacity served under the renewable feed-in tariff and a renewable feed-in tariff that is applicable to a local publicly owned electric utility. In addition to the 750 megawatt limitation, the renewable feed-in tariff law requires the commission to direct the electrical corporations to collectively procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. The commission is required to undertake specific steps to implement the bioenergy feed-in tariff requirement.

end insert begin insert

This bill would additionally require electrical corporations by December 1, 2016, to collectively procure, through financial commitments of 5 years, their proportionate share of 125 megawatts of cumulative rated generating capacity from bioenergy projects commencing operation prior to June 1, 2013, that each produces its generation using specified minimum percentages of certain types of forest feedstock. The bill would require local publicly owned electric utilities serving more than 100,000 customers to procure their proportionate shares of 125 megawatts of cumulative rated capacity from those kinds of bioenergy projects subject to terms of at least 5 years. Because this bill would impose additional duties on a local publicly owned electric utility, this bill would impose a state-mandated local program.

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Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

end insert begin insert

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, this bill would impose a state-mandated local program.

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(7) Existing law establishes the Department of Forestry and Fire Protection in the Natural Resources Agency and requires the department to coordinate programs of fire protection, fire prevention, pest control, and forest and range maintenance and enhancement.

end insert begin insert

This bill would require the Secretary of the Natural Resources Agency to establish a working group on expanding wood product markets that can utilize woody biomass, especially biomass removed from high hazard zones, as determined by the department.

end insert begin delete

(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 delete begin insert

(8) This bill would appropriate $1,400,000 from certain moneys deposited in the Waste Discharge Permit Fund to the State Water Resources Control Board to provide grants or contracts for the development of planning, environmental, and design documents in furtherance of projects for eliminating public health and safety risks from wastewater, and agricultural and other drainage of urbanized areas for tributaries to the Salton Sea.

end insert begin insert

(9) The bill would incorporate changes to Section 42999 of the Public Resources Code proposed by this bill and SB 970, which would become operative only if both bills are enacted and become effective on or before January 1, 2017, and this bill is chaptered last.

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(10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for specified reasons.

end insert begin delete

(5)

end delete

begin insert (11) end insert  This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

SECTION 1.  

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 begin delete Force,
however, end delete begin insert Force. However, end insert 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.

SEC. 2.  

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

412.  

(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.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 568 of the end insert begin insert Food and Agricultural Code end insert begin insert is
amended to read: end insert

568.  

(a) The secretary shall convene a begin delete five-member end delete
begin insert nine end insert begin insert - end insert begin insert member end insert Scientific Advisory Panel on Environmental Farming
to advise begin insert the secretary on the implementation of the Healthy Soils
Program established pursuant to Section 569, and the State Water
Efficiency and Enhancement Program established by the
department from moneys made available pursuant to Chapter 2
of the Statutes of 2014, end insert and begin insert to end insert assist federal, state, and local
government begin delete agencies end delete begin insert agencies, as appropriate or necessary, end insert on
issues relating to begin insert the impact of agricultural practices on end insert air, water,
and wildlife habitat to do the following:

(1) Review data on the impact that agriculture has on the
environment and recommend to begin insert the secretary and end insert appropriate state
agencies begin delete data that the panel approves as scientifically valid. A state
agency that receives data recommended by the panel may adopt
and incorporate the data into the appropriate program. If a state
agency does not utilize the data recommended by the panel, it shall
provide the panel with a written statement of reasons for not
utilizing the data. The reasons, at a minimum, shall specify the
scientific basis for not utilizing the data. The reasons shall be
provided within 180 days of receiving the data from the panel. end delete begin insert the
best available science on environmental impacts of agriculture,
as well as practices and policies based on that information to
advance the goals of this article, including Section 569. end insert

(2) Compile the net environmental impacts that agriculture
creates for the environment, identified pursuant to paragraph (1).

(3) Research, review, and comment on data upon which
proposed environmental policies and regulatory programs are based
to ensure that the environmental impacts of agricultural activities
are accurately portrayed and to identify incentives that may be
provided to encourage agricultural practices with environmental
benefits.

(4) Assist government agencies to incorporate begin delete benefits end delete begin insert policies
and practices end insert identified pursuant to paragraph (1) into
environmental regulatory programs.

(b)  begin insert (1) end insert begin insert   end insert Members of the panel shall be highly qualified and
professionally active or engaged in the conduct of scientific
research. Of the members first appointed to the panel, two shall
serve for a term of two years and three shall serve for a term of
three years, as determined by lot. Thereafter, members shall be
appointed for a term of three years. The members shall be
appointed as follows:

begin insert

(A) Five members shall be appointed by the secretary as follows:

end insert begin delete

(1) Three members shall be appointed by the secretary. At least
one of these

end delete

begin insert (i) end insert begin insert   end insert begin insert At least two end insert members shall have a minimum of five years of
training and experience in the field of agriculture and shall
represent production agriculture.

begin insert

(ii) At least one member shall have training and field experience
in on-farm management practices that reduce greenhouse gas
emissions, sequester carbon, or both.

end insert begin insert

(iii) At least one member shall be certified as a producer
pursuant to federal Organic Foods Production Act of 1990 (7
U.S.C. Sec. 6501 et seq.).

end insert begin delete

(2) One member, who has

end delete begin insert

(iv) At least one member shall have technical expertise in
agricultural conservation planning and management.

end insert

begin insert (B) end insert begin insert   end insert begin insert Two members shall be appointed by the Secretary for
Environmental Protection. One shall have end insert a minimum of five years
of training and experience in the field of human health or
environmental science, begin delete shall be appointed by the Secretary of the
Environmental Protection Agency. end delete begin insert and one shall have expertise
in greenhouse gas emissions reductions practices related to
agriculture. end insert

begin delete

(3) One member, who has

end delete

begin insert (C) end insert begin insert   end insert begin insert Two members who have end insert a minimum of five years of training
and experience in the field of resource begin delete management, shall be
appointed by the Secretary of the Resources Agency. end delete begin insert management
shall be appointed by the Secretary of the Natural Resources
Agency. One member shall additionally have expertise in climate
change adaptation and climate change impacts in the agricultural
sector. end insert

begin insert

(2) The secretary may also appoint, in consultation with the
panel, ex officio nonvoting members to the panel.

end insert

(c) The panel may establish ad hoc committees, which may
include begin delete professionals or scientists, end delete begin insert professionals, scientists, or
representatives of nongovernmental entities, end insert to assist it in
performing its functions.

(d) The panel shall be created and maintained with funds made
available from existing resources within the department to the
extent they are available.

begin insert

(e) The State Air Resources Board shall consult with the
secretary and the panel, as appropriate, in developing the
quantification methods described in subdivision (b) of Section
16428.9 of the Government Code as it relates to the demonstration
and quantification of on-farm greenhouse gas emissions reductions.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 569 is added to the end insert begin insert Food and Agricultural
Code end insert begin insert , to read: end insert

begin insert

begin insert 569. end insert   

(a) (1) The department, in consultation with the panel,
shall establish and oversee a Healthy Soils Program. The program
shall seek to optimize climate benefits while supporting the
economic viability of California agriculture by providing
incentives, including, but not limited to, loans, grants, research,
and technical assistance, and educational materials and outreach,
to farmers whose management practices contribute to healthy soils
and result in net long-term on-farm greenhouse gas benefits. The
program may also include the funding of on-farm demonstration
projects that further the goals of the program.

(2) The department, in consultation with the panel, may
determine priorities for the program and give priority to projects
that occur in and benefit disadvantaged communities identified
pursuant to Section 39711 of the Health and Safety Code, show
promise of being replicable in other parts of the state, or provide
environmental and agronomic cobenefits, such as improved air
and water quality, improved crop yield, and reduced soil erosion.

(3) The panel shall also advise the department on scientific
findings, program framework, guidelines, grower incentives, and
providing technical assistance.

(4) If the department elects to fund on-farm demonstration
projects described in paragraph (1), the department, in
consultation with the panel, shall establish a technical advisory
committee to review on-farm demonstration project applications
for scientific validity and the proposed project’s potential to
achieve greenhouse gas benefits.

(b) The department shall implement the program and quantify
greenhouse gas emissions reductions in accordance with the
funding guidelines developed by the State Air Resources Board
pursuant to Section 39715 of the Health and Safety Code and the
quantification methods developed by the State Air Resources Board
pursuant to Section 16428.9 of the Government Code.

(c) (1) The department may pursue public and private sources
to support the Healthy Soils Program.

(2) To the extent funds are available, the department may
provide support to the program, including, but not limited to,
technical assistance, education, and outreach.

(d) For purposes of this section, “panel” means the Scientific
Advisory Panel on Environmental Farming.

(e) For purposes of the Healthy Soils Program, the following
terms have the following meanings:

(1) “Greenhouse gas benefits” means greenhouse gas emissions
source reduction or carbon sequestration.

(2) “Healthy soils” means soils that enhance their continuing
capacity to function as a biological system, increase soil organic
matter, improve soil structure and water- and nutrient-holding
capacity, and result in net long-term greenhouse gas benefits.

(3) “On-farm demonstration projects” means projects that
incorporate farm management practices that result in greenhouse
gas benefits across all farming types with the intent to establish
or promote healthy soils.

end insert

begin delete SEC. 3. end delete

begin insert SEC. 5. end insert   

Section 12802.10 is added to the Government Code,
to read:

12802.10.  

(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 begin insert the end insert purposes of this section to projects that are located
in, and that provide benefits to, begin delete critically underserved communities
or end delete disadvantaged begin delete 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. end delete

begin insert communities. end insert

(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)  begin insert The secretary shall hold at least two public hearings to gather
public input on program development before establishing the
program guidelines and selection criteria. end insert 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.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 16428.86 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 16428.86. end insert   

(a) Prior to awarding grant funds from moneys
made available from the Greenhouse Gas Reduction Fund, the
Department of Food and Agriculture shall review the applicant’s
analysis identifying potential adverse impacts of the proposed
project, including a net increase in criteria pollutants, toxic air
contaminants, and hazardous air pollutants; groundwater and
surface water impacts; and truck traffic and odor.

(b) A project shall not receive funding unless the applicant has
demonstrated to the Department of Food and Agriculture that the
applicant has done all of the following:

(1) Conducted outreach in areas that will potentially be
adversely impacted by the project.

(2) Determined potential adverse impacts of the project.

(3) Committed to measures to mitigate impacts.

(c) In making awards, the Department of Food and Agriculture
shall prioritize projects based on the criteria pollutant emission
benefits achieved by the project.

(d) A project funded by the Department of Food and Agriculture
that results in localized impacts in disadvantaged communities
shall not be considered to provide a benefit to disadvantaged
communities for the purposes of Section 39713 of the Health and
Safety Code.

end insert

begin insert

begin insert SEC. 7. 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 chapter 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 Division 25.5 (commencing with Section 38500) 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, begin insert Native
American tribes in the state, end insert 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.

(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, begin insert Native American tribes
in the state, end insert and nonprofit organizations coordinating with local
governments.

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

begin delete SEC. 4. end delete

begin insert SEC. 8. end insert   

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

44274.3.  

(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.

begin delete

(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 delete begin insert

(b) Beginning November 1, 2016, under the Clean Vehicle
Rebate Project established as a part of the Air Quality
Improvement Program, the state board shall do the following:

end insert begin insert

(1) Only offer rebates to applicants who purchase an eligible
vehicle and have a 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, that
does not exceed the following:

end insert begin insert

(A) One hundred fifty thousand dollars ($150,000) for single
filers.

end insert begin insert

(B) Two hundred four thousand dollars ($204,000) for
head-of-household filers.

end insert begin insert

(C) Three hundred thousand dollars ($300,000) for joint filers.

end insert begin insert

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

end insert begin insert

(3) Only offer rebates for plug-in hybrids that have an electric
range of at least 20 miles.

end insert begin insert

(4) Provide outreach to low-income households to increase
consumer awareness of the rebate project.

end insert begin insert

(5) Prioritize rebate payments to low-income applicants.

end insert begin insert

(c) The income restrictions set forth in paragraph (1) of
subdivision (b) shall not apply to fuel cell vehicles.

end insert begin insert

(d) This section shall become inoperative on July 1, 2017, and,
as of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 717 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 717. end insert   

(a) The Secretary of the Natural Resources Agency shall
establish a working group on expanding wood product markets
that can utilize woody biomass, especially biomass that is removed
from high hazard zones, as determined by the department. These
markets include, but are not limited to, animal bedding, biochar,
cross-laminated timber, mulch, oriented strand board, pulp, post,
shredding, and veneer products.

(b) At a minimum, the working group shall include members of
the working group on wood market products established under
the Proclamation of a State of Emergency on Tree Mortality
declared by the Governor on October 30, 2015.

(c) By June 1, 2017, the working group shall submit
recommendations to the Legislature on actions that may be taken
to encourage the development of the wood product markets,
including the identification of potential pilot projects.

end insert

begin delete SEC. 5. end delete

begin insert SEC. 10. end insert   

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

4799.05.  

(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 begin delete the purposes of
this section end delete begin insert landscape-scale projects end insert shall be allocated as follows:

begin delete

(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)

end delete

begin insert (1) end insert  To subsidize the removal of small diameter material,
especially surface fuels and ladder fuels, as well as dead trees,

begin delete including the transportation of this material to biomass plants or
shredding facilities. end delete begin insert in order to help develop markets for beneficial
uses of the material, including, but not limited to, animal bedding,
biochar, cross-laminated timber, mulch, oriented strandboard,
pulp, post, shredding, and veneer products. end insert

begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(B)

end delete

begin insert (2) end insert  For multiple benefit begin delete projects end delete begin insert projects, end insert such as tree thinning,
carbon sequestration, begin delete biomass processing, end delete forest resilience, and
improved ecological outcome begin delete projects. end delete begin insert projects, including, but not
limited to, restoring watershed health and function and supporting
biodiversity and wildlife adaptation to climate change. end insert The
department shall give grant funding priority to landowners who
practice uneven-age forest management begin insert with a resilient forest of
diverse age, size, and species class end insert 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 begin delete covering end delete begin insert persisting for end insert 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.

begin delete

(C)

end delete

begin insert (3) end insert  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
begin delete department and the State Air Resources Board, end delete begin insert department, end insert in
collaboration with appropriate state begin delete agencies. end delete begin insert agencies, including
the State Air Resources Board. end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 6009.1 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

6009.1.  

The Legislature finds and declares all of the following:

(a) Granted public trust lands remain subject to the supervision
of the state and the state retains its duty to protect the public interest
in granted public trust lands.

(b) The state acts both as the trustor and the representative of
the beneficiaries, who are all of the people of this state, with regard
to public trust lands, and a grantee of public trust lands, including
tidelands and submerged lands, acts as a trustee, with the granted
tidelands and submerged lands as the corpus of the trust.

(c) A grantee may fulfill its fiduciary duties as trustee by
determining the application of each of the following duties, all of
which are applicable under common trust principles:

(1) The duty of loyalty.

(2) The duty of care.

(3) The duty of full disclosure.

(4) The duty to keep clear and adequate records and accounts.

(5) The duty to administer the trust solely in the interest of the
beneficiaries.

(6) The duty to act impartially in managing the trust property.

(7) The duty to not use or deal with trust property for the
trustee’s own profit or for any other purpose unconnected with the
trust, and to not take part in a transaction in which the trustee has
an interest adverse to the beneficiaries.

(8) The duty to take reasonable steps under the circumstances
to take and keep control of and to preserve the trust property.

(9) The duty to make the trust property productive under the
circumstances and in furtherance of the purposes of the trust.

(10) The duty to keep the trust property separate from other
property not subject to the trust and to see that the trust property
is designated as property of the trust.

(11) The duty to take reasonable steps to enforce claims that
are part of the trust property.

(12) The duty to take reasonable steps to defend actions that
may result in a loss to the trust.

(13) The duty to not delegate to others the performance of acts
that the trustee can reasonably be required to perform and to not
transfer the administration of the trust to a cotrustee. If a trustee
has properly delegated a matter to an agent, the trustee has a duty
to exercise direct supervision over the performance of the delegated
matter.

(d) All duties endowed upon a trustee of state lands shall depend
upon the terms of the trust, and if there is no provision, express or
implied, within the terms of the trust, a statute, or a grant, the
trustee’s duties shall be interpreted and determined by principles
and rules evolved by courts of equity with respect to common trust
principles.

begin insert

(e) Notwithstanding any other law, and in addition to any other
rights and capacities of a trustee to act under law, a trustee of
public trust lands shall have the right to bring any action related
to its granted public trust lands, including an action to abate a
public nuisance, as a representative of the beneficiaries.

end insert begin delete

(e)

end delete

begin insert (f) end insert  Common trust principles do not nullify an act of the
Legislature or modify its duty under the California Constitution
to do all things necessary to execute and administer the public
trust.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 42997 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

42997.  

(a) The CalRecycle Greenhouse Gas Reduction
Revolving Loan Program is hereby established and shall be
administered by the department.

(b) (1) The department shall expend the moneys transferred
pursuant to subdivision (c) of Section 42996, and any additional
moneys appropriated by the Legislature for the purposes of this
subdivision, to provide loans to reduce begin delete greenhouse gas emissions end delete
begin insert the emissions of greenhouse gases end insert by promoting in-state
development of infrastructure begin insert or other projects end insert to begin insert reduce organic
waste or end insert process begin delete organics end delete begin insert organic end insert and other recyclable materials
into new value-added products. The moneys shall be expended
consistent with the requirements of Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code and Chapter 4.1 (commencing with Section
39710) of Part 2 of Division 26 of the Health and Safety Code.

(2) For a loan made pursuant to this subdivision, the department
shall expend the moneys in the loan fund to provide loans to public
and private entities begin delete located in the state end delete for begin insert in end insert begin insert -state infrastructure
projects or other projects that reduce the emissions of greenhouse
gases by end insert any of the following:

(A) Organics composting.

(B)  begin delete Anaerobic end delete begin insert Organics in-vessel end insert digestion.

(C) Recyclable material begin delete manufacturing infrastructure projects
or other related activities that reduce greenhouse gas emissions. end delete

begin insert manufacturing. end insert

begin insert

(D) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

end insert

(3) For purposes of this subdivision, eligible infrastructure
projects that reduce greenhouse gas emissions include, but are not
limited to, any of the following:

(A) Capital investments in new facilities and increased
throughput at existing facilities for activities, such as converting
windrow composting to aerated-static-pile composting to use food
waste as feedstock.

(B) Designing and constructing begin delete anaerobic end delete begin insert organics in-vessel end insert
digestion facilities to produce begin delete biofuels and bioenergy. end delete begin insert products,
such as biofuels, bioenergy, and soil amendments. end insert

(C) Designing and constructing facilities for processing
recyclable materials.

(4) For a loan made pursuant to this subdivision, both of the
following apply:

(A) The terms and conditions of an approved loan shall be
specified in a loan agreement and related documents between the
borrower and the department. These terms and conditions shall
include reporting requirements that include, but are not limited to,
reporting the information specified in Section 16428.9 of the
Government Code.

(B) The department shall approve only those loan applications
that demonstrate the applicant’s ability to repay the loan.

(5) The department may establish additional requirements that
it determines to be necessary or useful to achieve the revolving
loan program’s objectives, including, but not limited to, ensuring
repayment ability.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 42999 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

42999.  

(a) Any additional funds appropriated by the
Legislature from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code, to the
department shall be used to administer a grant program to provide
financial assistance to reduce begin delete greenhouse gas emissions end delete begin insert the
emissions of greenhouse gases end insert by promoting in-state development
of begin delete infrastructure to process organics end delete begin insert infrastructure, food waste
prevention, or other projects to reduce organic waste or process
organic end insert and other recyclable materials into new value-added
products. The moneys shall be expended consistent with the
requirements of Article 9.7 (commencing with Section 16428.8)
of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government
Code and Chapter 4.1 (commencing with Section 39710) of Part
2 of Division 26 of the Health and Safety Code.

(b)  begin delete For a grant made pursuant to this section, the end delete begin insert The end insert department
shall expend the moneys to provide grants, incentive payments,
contracts, or other funding mechanisms to public and private
entities begin delete located in the state end delete for begin insert in-state infrastructure projects or
other projects that reduce the emissions of greenhouse gases by end insert
any of the following:

(1) Organics composting.

(2)  begin delete Anaerobic end delete begin insert Organics in-vessel end insert digestion.

(3) Recyclable material begin delete manufacturing infrastructure projects
or other related activities that reduce greenhouse gas emissions. end delete

begin insert manufacturing. end insert

begin insert

(4) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

end insert

(c) For purposes of this section, eligible infrastructure projects
that reduce greenhouse gas emissions include, but are not limited
to, any of the following:

(1) Capital investments in new facilities and increased
throughput at existing facilities for activities, such as converting
windrow composting to aerated-static-pile composting to use food
waste as feedstock.

(2) Designing and constructing begin delete anaerobic end delete begin insert organics in-vessel end insert
digestion facilities to produce begin delete biofuels and bioenergy. end delete begin insert products,
such as biofuels, bioenergy, and soil amendments. end insert

(3) Designing and constructing facilities for processing
recyclable materials.

begin insert

begin insert SEC. 13.5. end insert   

end insert

begin insert Section 42999 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

42999.  

(a) Any additional funds appropriated by the
Legislature from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code, to the
department shall be used to administer a grant program to provide
financial assistance to reduce begin delete greenhouse gas emissions end delete begin insert the
emissions of greenhouse gases end insert by promoting in-state development
of begin delete infrastructure to process organics end delete begin insert infrastructure, food waste
prevention, or other projects to reduce organic waste or process
organic end insert and other recyclable materials into begin delete new end delete begin insert new, end insert value-added
products. The moneys shall be expended consistent with the
requirements of Article 9.7 (commencing with Section 16428.8)
of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government
Code and Chapter 4.1 (commencing with Section 39710) of Part
2 of Division 26 of the Health and Safety Code.

(b)  begin delete For a grant made pursuant to end delete begin insert From moneys appropriated
for purposes of end insert begin insert end insert this section, the department shall begin delete expend the
moneys to end delete provide grants, incentive payments, contracts, or other
funding mechanisms to public and private entities begin delete located in the
state end delete for begin insert in-state infrastructure projects or other projects that
reduce the emissions of greenhouse gases by end insert any of the following:

(1) Organics composting.

(2)  begin delete Anaerobic end delete begin insert Organics in-vessel end insert digestion.

(3) Recyclable material begin delete manufacturing infrastructure projects
or other related activities that reduce greenhouse gas emissions. end delete

begin insert manufacturing. end insert

begin insert

(4) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

end insert

(c) For purposes of this section, eligible infrastructure projects
that reduce greenhouse gas emissions include, but are not limited
to, any of the following:

(1) Capital investments in new facilities and increased
throughput at existing facilities for activities, such as converting
windrow composting to aerated-static-pile composting to use food
waste as feedstock.

(2) Designing and constructing begin delete anaerobic end delete begin insert organics in-vessel end insert
digestion facilities to produce begin delete biofuels and bioenergy. end delete begin insert products,
such as biofuels, bioenergy, and soil amendments. end insert

(3) Designing and constructing facilities for processing
recyclable materials.

begin insert

(d) In awarding a grant for organics composting or anaerobic
digestion pursuant to this section, the department shall consider
all of the following:

end insert begin insert

(1) The amount of greenhouse gas emissions reductions that
may result from the project.

end insert begin insert

(2) The amount of organic material that may be diverted from
landfills as a result of the project.

end insert begin insert

(3) If, and how, the project may benefit disadvantaged
communities.

end insert begin insert

(4) For a grant awarded for an anaerobic digestion project, if,
and how, the project maximizes resource recovery, including the
production of clean energy or low-carbon or carbon negative
transportation fuels.

end insert begin insert

(5) Project readiness and permitting that the project may
require.

end insert begin insert

(6) Air and water quality benefits that the project may provide.

end insert begin insert

(e) To the degree that funds are available, the department may
provide larger grant awards for large-scale regional integrated
projects that provide cost-effective organic waste diversion and
maximize environmental benefits.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 399.20.3 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 399.20.3. end insert   

(a) For purposes of this section, the following
definitions apply:

(1) “Bioenergy” has the same meaning as set forth in paragraph
(4) of subdivision (f) of Section 399.20.

(2) “Tier 1 high hazard zone” includes areas where wildlife
and falling trees threaten power lines, roads, and other evacuation
corridors, critical community infrastructure, or other existing
structures, as designated by the Department of Forestry and Fire
Protection pursuant to the Proclamation of a State of Emergency
on Tree Mortality declared by the Governor on October 30, 2015.

(3) “Tier 2 high hazard zone” includes watersheds that have
significant tree mortality combined with community and natural
resource assets, as designated by the Department of Forestry and
Fire Protection pursuant to the Proclamation of a State of
Emergency on Tree Mortality declared by the Governor on October
30, 2015.

(b) In addition to the requirements of subdivision (f) of Section
399.20, by December 1, 2016, electrical corporations shall
collectively procure, through financial commitments of five years,
their proportionate share of 125 megawatts of cumulative rated
generating capacity from existing bioenergy projects that
commenced operations prior to June 1, 2013. At least 80 percent
of the feedstock of an eligible facility, on an annual basis, shall
be a byproduct of sustainable forestry management, which includes
removal of dead and dying trees from Tier 1 and Tier 2 high hazard
zones and is not from lands that have been clear cut. At least 60
percent of this feedstock shall be from Tier 1 and Tier 2 high
hazard zones.

(c) (1) For each electrical corporation, the commission shall
allocate its proportionate share of the 125 megawatts based on
the ratio of the electrical corporation’s peak demand to the total
statewide peak demand.

(2) Procurement by an electrical corporation of generation
capacity pursuant to a contract under the commission’s Resolution
E-4770 that is in excess of the requirement of that electrical
corporation under that resolution shall count towards meeting the
electrical corporation’s proportionate share allocated pursuant
to paragraph (1).

(d) The commission may direct each electrical corporation to
develop standard contract terms and conditions that reflect the
operational characteristics of the bioenergy projects and to provide
a streamlined contracting process or may require electrical
corporations to use the mechanism established pursuant to the
commission’s Resolution E-4770 to meet the requirements of
subdivision (c). The procurement pursuant to the developed
standard contract shall occur on an expedited basis due to the
Proclamation of a State of Emergency on Tree Mortality declared
by the Governor on October 30, 2015.

(e) A local publicly owned electric utility serving more than
100,000 customers shall procure its proportionate share, based
on the ratio of the utility’s peak demand to the total statewide peak
demand, of 125 megawatts of cumulative rated capacity from
existing bioenergy projects described in subdivision (b) subject to
terms of at least five years.

(f) The commission shall ensure that the costs of any contract
procured by an electrical corporation to satisfy the requirements
of this section are recoverable from all customers on a
nonbypassable basis.

(g) The Procurement Review Group within the commission shall
advise the commission on the cost of the generation procured
pursuant to this section and its impact on ratepayers.

end insert

begin delete SEC. 6. end delete

begin insert SEC. 15. end 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:

(a) No later than begin delete January 1, 2017, end delete begin insert December 30, 2018, end insert complete
a standardized greenhouse gas emissions inventory for natural and
working lands.

(b) (1) No later than begin delete January 1, end delete begin insert December 30, end insert 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.

(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.

begin delete

SEC. 7.  

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 delete

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Notwithstanding subdivision (c) of Section 13264 of,
subdivision (f) of Section 13268 of, subdivision (k) of Section 13350
of, and paragraph (2) of subdivision (n) of Section 13385 of, the
Water Code, one million four hundred thousand dollars
($1,400,000) is hereby appropriated in fiscal year 2016-17 to the
State Water Resources Control Board from the moneys deposited
into, and separately accounted for in, the Waste Discharge Permit
Fund pursuant to the balance of penalty revenues generated by
the imposition of liabilities pursuant to subdivision (c) of Section
13264 of, subdivision (f) of Section 13268 of, subdivision (k) of
Section 13350 of, and paragraph (2) of subdivision (n) of Section
13385 of, the Water Code. The funds appropriated in this section
are available to the State Water Resources Control Board to
provide grants or contracts for the development of planning,
environmental, and design documents in furtherance of projects
for eliminating public health and safety risks from wastewater,
and agricultural and other drainage of urbanized areas for
tributaries to the Salton Sea. end insert

begin insert

begin insert SEC. 17. end insert   

end insert begin insert

Section 13.5 of this bill incorporates amendments to
Section 42999 of the Public Resources Code proposed by both this
bill and Senate Bill 970. It shall only become operative if (1) both
bills are enacted and become effective on or before January 1,
2017, but this bill becomes operative first, (2) each bill amends
Section 42999 of the Public Resources Code, and (3) this bill is
enacted after Senate Bill 970, in which case Section 42999 of the
Public Resources Code, as amended by Section 13 of this bill, shall
remain operative only until the operative date of Senate Bill 970,
at which time Section 13.5 of this bill shall become operative.

end insert

begin insert

begin insert SEC. 18. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.

end insert

begin delete SEC. 8. end delete

begin insert SEC. 19. end 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.