Amended in Senate March 24, 2015

Senate BillNo. 207


Introduced by Senator Wieckowski

February 11, 2015


An act to amend Sectionbegin delete 39716 of the Health and Safetyend deletebegin insert 16428.9 of the Governmentend insert Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

SB 207, as amended, Wieckowski. California Global Warming Solutions Act of 2006: Greenhouse Gas Reductionbegin delete Fund: investment plan.end deletebegin insert Fund.end insert

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 from the auction or sale of allowances 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.begin delete 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.end deletebegin insert Existing law requires a state agency expending moneys from the fund to create a record, prior to the expenditure, that includes, among other things, a description of the expenditure proposed to be made and a description of how the proposed expenditure will contribute to achieving and maintaining greenhouse gas emissions reductions, as specified.end insert

begin delete

This bill would additionally require the 3-year investment plan to identify conflicting or overlapping policies, where applicable, in current state strategies to meeting the state’s greenhouse gas emissions reduction goals and targets by sector.

end delete
begin insert

This bill would require that record to be posted on the Internet Web sites of the state agency and the State Air Resources Board prior to the state agency expending those moneys.

end insert

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 16428.9 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

16428.9.  

(a) Prior to expending any moneys appropriated to
4begin delete itend deletebegin insert a state agencyend insert by the Legislature from the fund,begin delete a state agency
5shall prepare a record consisting ofend delete
all of the followingbegin insert shall occurend insert:

begin insert

6(1) A state agency shall prepare a record consisting of all of
7the following:

end insert
begin delete

8(1)

end delete

9begin insert(A)end insert A description of each expenditure proposed to be made by
10the state agency pursuant to the appropriation.

begin delete

11(2)

end delete

12begin insert(B)end insert A description of how a proposed expenditure will further
13the regulatory purposes of Division 25.5 (commencing with Section
1438500) of the Health and Safety Code, including, but not limited
15to, the limit established under Part 3 (commencing with Section
1638550) and other applicable requirements of law.

begin delete

17(3)

end delete

18begin insert(C)end insert A description of how a proposed expenditure will contribute
19to achieving and maintaining greenhouse gasbegin delete emissionend deletebegin insert emissionsend insert
20 reductions pursuant to Division 25.5 (commencing with Section
2138500) of the Health and Safety Code.

begin delete

22(4)

end delete

23begin insert(D)end insert A description of how the state agency considered the
24applicability and feasibility of other nongreenhouse gasbegin insert emissionsend insert
25 reduction objectives of Division 25.5 (commencing with Section
2638500) of the Health and Safety Code.

begin delete

27(5)

end delete

P3    1begin insert(E)end insert A description of how the state agency will document the
2result achieved from the expenditure to comply with Division 25.5
3(commencing with Section 35800) of the Health and Safety Code.

begin insert

4(2) A state agency shall post on its Internet Web site the record
5required to be prepared pursuant to paragraph (1).

end insert
begin insert

6(3) The State Air Resources Board shall post on its Internet Web
7site the record a state agency is required to prepare pursuant to
8paragraph (1).

end insert

9(b) The State Air Resources Board shall develop guidance on
10reporting and quantification methods for all state agencies that
11receive appropriations from the fund to ensure the requirements
12of this section are met.begin delete Chapterend deletebegin insert The Administrative Procedure Act
13(Chapterend insert
3.5 (commencing with Section 11340) of Part 1 of
14Divisionbegin delete 3end deletebegin insert 3)end insert does not apply to the procedures developed pursuant
15to this subdivision.

16(c) Nothing in this section alters, amends, or otherwise modifies
17in any manner Division 25.5 (commencing with Section 35800)
18of the Health and Safety Code, including the authority of the State
19Air Resources Board to adopt and implement a fee pursuant to that
20division.

21(d) If any expenditure of moneys from the fund for any measure
22or project is determined by a court to be inconsistent with law, the
23funding for the remaining measures or projects shall be severable
24and shall not be affected.

begin delete
25

SECTION 1.  

Section 39716 of the Health and Safety Code is
26amended to read:

27

39716.  

(a) The Department of Finance, on behalf of the
28Governor, and in consultation with the state board and any other
29relevant state entity, shall develop and submit to the Legislature
30at the time of the department’s adjustments to the proposed
312013-14 fiscal year budget pursuant to subdivision (e) of Section
3213308 of the Government Code a three-year investment plan.
33Commencing with the 2016-17 fiscal year budget and every three
34years thereafter, with the release of the Governor’s budget proposal,
35the Department of Finance shall include updates to the investment
36plan following the public process described in subdivisions (b)
37and (c). The investment plan, consistent with the requirements of
38Section 39712, shall do all of the following:

39(1) Identify the state’s near-term and long-term greenhouse gas
40emissions reduction goals and targets by sector.

P4    1(2) Analyze gaps and identify conflicting or overlapping
2policies, where applicable, in current state strategies to meeting
3the state’s greenhouse gas emissions reduction goals and targets
4by sector.

5(3) Identify priority programmatic investments of moneys that
6will facilitate the achievement of feasible and cost-effective
7greenhouse gas emissions reductions toward achievement of
8greenhouse gas reduction goals and targets by sector, consistent
9with subdivision (c) of Section 39712.

10(b) (1) The state board shall hold at least two public workshops
11in different regions of the state and one public hearing prior to the
12Department of Finance submitting the investment plan.

13(2) The state board, prior to the submission of each investment
14plan, shall consult with the Public Utilities Commission to ensure
15the investment plan is coordinated with, and does not conflict with
16or unduly overlap with, activities under the oversight or
17administration of the Public Utilities Commission undertaken
18pursuant to Part 5 (commencing with Section 38570) of Division
1925.5 or other activities under the oversight or administration of
20the Public Utilities Commission that facilitate greenhouse gas
21emissions reductions consistent with this division. The investment
22plan shall include a description of the use of any moneys generated
23by the sale of allowances received at no cost by the investor-owned
24utilities pursuant to a market-based compliance mechanism.

25(c) The Climate Action Team, established under Executive
26Order S-3-05, shall provide information to the Department of
27Finance and the state board to assist in the development of each
28investment plan. The Climate Action Team shall participate in
29each public workshop held on an investment plan and provide
30testimony to the state board on each investment plan. For purposes
31of this section, the Secretary of Labor and Workforce Development
32shall assist the Climate Action Team in its efforts.

end delete


O

    98