BILL NUMBER: AB 2223 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2016
INTRODUCED BY Assembly Member Gray
FEBRUARY 18, 2016
An act to amend Section 39719 of the Health and Safety Code,
relating to greenhouse gases, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2223, as amended, Gray. Greenhouse Gas Reduction Fund:
manure dairy digesters.
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 in regulations
implementing the act 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 by the Legislature.
Existing law continuously appropriates 60% of the annual proceeds of
the fund for transit, affordable housing, sustainable communities,
and high-speed rail purposes.
Existing law defines a "renewable electrical generation facility"
for purposes of the California Renewables Portfolio Standard Program
to include facilities that use, among other renewable energy
resources, digester gas.
This bill would continuously appropriate $100,000,000 annually
from the Greenhouse Gas Reduction Fund fund
to the state board to make manure digester market
development payments for electricity produced from
California-generated manure by California-based manure digesters.
Department of Food and Agriculture to provide
incentives for the implementation of dairy digesters and other dairy
methane reduction projects and management practices, thereby making
an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The State Air Resources Board has embarked on an ambitious
strategy to reduce dairy methane emissions. These voluntary
reductions cannot begin to be achieved unless the state provides a
substantial and ongoing financial commitment to offset the costs of
achieving these reductions.
(b) Dairy methane reduction projects are among the most
cost-effective investments the state can make to reduce greenhouse
gas emissions.
(c) Investments in dairy digesters and other methane reduction
projects on dairies in the state will provide significant greenhouse
gas and short-lived climate pollutant emissions reductions, as well
as all of the following:
(1) Significant benefits to disadvantaged communities, as
identified pursuant to Section 39711 of the Health and Safety Code,
including criteria pollutant reductions, water quality improvements,
and nuisance and odor control.
(2) Help in achieving a 50 percent reduction in petroleum use by
replacing diesel with renewable natural gas.
(3) Furtherance of the California Sustainable Freight Action Plan.
(4) Substantial clean energy production, including renewable
electricity, renewable natural gas, and renewable carbon-negative
transportation fuel.
(5) Increased decarbonization of the state's natural gas system.
(6) Job creation and economic development in high-unemployment
rural communities.
(7) Significant greenhouse gas emissions offsets and credit
production pursuant to the Low Carbon Fuel Standard regulation
(Subarticle 7 (commencing with Section 95480) of Article 4 of
Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations).
(8) Significant water quality benefits from advancements in manure
management.
SEC. 2. Section 39719 of the Health and
Safety Code is amended to read:
39719. (a) The Legislature shall appropriate the annual proceeds
of the fund for the purpose of reducing greenhouse gas emissions in
this state in accordance with the requirements of Section 39712.
(b) To carry out a portion of the requirements of subdivision (a),
annual proceeds are continuously appropriated for the following:
(1) Beginning in the 2015-16 fiscal year, and notwithstanding
Section 13340 of the Government Code, 35 percent of annual proceeds
are continuously appropriated, without regard to fiscal
years, year, for transit, affordable housing,
and sustainable communities programs as following:
follows:
(A) Ten percent of the annual proceeds of the fund is hereby
continuously appropriated to the Transportation Agency for the
Transit and Intercity Rail Capital Program created by Part 2
(commencing with Section 75220) of Division 44 of the Public
Resources Code.
(B) Five percent of the annual proceeds of the fund is hereby
continuously appropriated to the Low Carbon Transit Operations
Program created by Part 3 (commencing with Section 75230) of Division
44 of the Public Resources Code. Funds
Moneys shall be allocated by the Controller, according to
requirements of the program, and pursuant to the distribution formula
in subdivision (b) or (c) of Section 99312 of, and Sections 99313
and 99314 of, the Public Utilities Code.
(C) Twenty percent of the annual proceeds of the fund is hereby
continuously appropriated to the Strategic Growth Council for the
Affordable Housing and Sustainable Communities Program created by
Part 1 (commencing with Section 75200) of Division 44 of the Public
Resources Code. Of the amount appropriated in this subparagraph, no
less than 10 percent of the annual proceeds,
proceeds shall be expended for affordable housing, consistent
with the provisions of that program.
(2) Beginning in the 2015-16 fiscal year, notwithstanding Section
13340 of the Government Code, 25 percent of the annual proceeds of
the fund is hereby continuously appropriated to the High-Speed Rail
Authority for the following components of the initial operating
segment and Phase I Blended System as described in the 2012 business
plan adopted pursuant to Section 185033 of the Public Utilities Code:
(A) Acquisition and construction costs of the project.
(B) Environmental review and design costs of the project.
(C) Other capital costs of the project.
(D) Repayment of any loans made to the authority to fund the
project.
(3) Beginning in the 2016-17 fiscal year, notwithstanding Section
13340 of the Government Code, the sum of one hundred million dollars
($100,000,000) is hereby continuously appropriated, without regard to
fiscal year, to the Department of Food and Agriculture to provide
incentives for the implementation of dairy digesters and other dairy
methane reduction projects and management practices.
(c) In determining the amount of annual proceeds of the fund for
purposes of the calculation in subdivision (b), the funds subject to
Section 39719.1 shall not be included.
SECTION 1. Notwithstanding Section 13340 of the
Government Code, the sum of one hundred million dollars
($100,000,000) annually is hereby continuously appropriated from the
Greenhouse Gas Reduction Fund created pursuant to Section 16428.8 of
the Government Code to the State Air Resources Board to make manure
digester market development payments of up to $____ per kW of
electricity produced from California-generated manure by
California-based manure digesters.