Amended in Senate April 6, 2015

Senate BillNo. 706

Introduced by Senator Pavley

February 27, 2015

begin deleteAn act to amend Section 25200 of the Public Resources Code, relating to energy. end deletebegin insertAn act to amend Section 39712 of the Health and Safety Code, relating to greenhouse gases.end insert


SB 706, as amended, Pavley. begin deleteState Energy Resources Conservation and Development Commission. end deletebegin insertGreenhouse Gas Reduction Fund: alternative fuels.end insert

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Existing law establishes the Greenhouse Gas Reduction Fund and requires moneys collected by the State Air Resources Board from the auction or sale of allowances pursuant to a market-based compliance mechanism authorized under the California Global Warming Solutions Act of 2006 be deposited in the fund. Existing law authorizes moneys in the fund, upon appropriation by the Legislature, to be used for, among other things, the reduction of greenhouse gas emissions through the development of advanced biofuels.

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This bill would authorize the use of the moneys in the fund to encourage the in-state production of alternative fuels with low carbon intensity from new and existing facilities using sustainable feedstocks.

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Existing law establishes the State Energy Resources Conservation and Development Commission consisting of 5 members appointed by the Governor subject to confirmation by the Senate.

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This bill would make a technical, nonsubstantive change to that provision.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. 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 insertThe Legislature finds and declares all of the
2following:end insert

begin insert

3(a) Petroleum fuels are a leading cause of in-state greenhouse
4gas emissions.

end insert
begin insert

5(b) California is vulnerable to oil market shocks given the small
6number of in-state oil refineries.

end insert
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7(c) It is the policy of the state to address climate goals and
8economic security of Californian drivers to support low-carbon
9fuels production that boosts supply and diversity and provides
10energy security.

end insert
11begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 39712 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
12amended to read:end insert



(a) (1) It is the intent of the Legislature that moneys
14shall be appropriated from the fund only in a manner consistent
15with the requirements of this chapter and Article 9.7 (commencing
16with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
172 of the Government Code.

18(2) The state shall not approve allocations for a measure or
19program using moneys appropriated from the fund except after
20determining, based on the available evidence, that the use of those
21moneys furthers the regulatory purposes of Division 25.5
22(commencing with Section 38500) and is consistent with law. If
23any expenditure of moneys from the fund for any measure or
24project is determined by a court to be inconsistent with law, the
25allocations for the remaining measures or projects shall be
26severable and shall not be affected.

27(b) Moneys shall be used to facilitate the achievement of
28reductions of greenhouse gas emissions in this state consistent
29with Division 25.5 (commencing with Section 38500) and, where
30applicable and to the extent feasible:

31(1) Maximize economic, environmental, and public health
32benefits to the state.

33(2) Foster job creation by promoting in-state greenhouse gas
34emissions reduction projects carried out by California workers and

P3    1(3) Complement efforts to improve air quality.

2(4) Direct investment toward the most disadvantaged
3communities and households in the state.

4(5) Provide opportunities for businesses, public agencies,
5nonprofits, and other community institutions to participate in and
6benefit from statewide efforts to reduce greenhouse gas emissions.

7(6) Lessen the impacts and effects of climate change on the
8state’s communities, economy, and environment.

9(c) Moneys appropriated from the fund may be allocated,
10consistent with subdivision (a), for the purpose of reducing
11greenhouse gas emissions in this state through investments that
12may include, but are not limited to, any of the following:

13(1) Funding to reduce greenhouse gas emissions through energy
14efficiency, clean and renewable energy generation, distributed
15renewable energy generation, transmission and storage, and other
16related actions, including, but not limited to, at public universities,
17state and local public buildings, and industrial and manufacturing

19(2) begin insert(A)end insertbegin insertend insertFunding to reduce greenhouse gas emissions through
20the development of state-of-the-art systems to move goods and
21freight, advanced technology vehicles and vehicle infrastructure,
22advanced biofuels, and low-carbon and efficient public

begin insert

24(B) To promote and further California climate goals, funding
25shall be available, with preference for disadvantaged communities,
26to encourage the in-state production of alternative fuels with
27low-carbon intensity from new and existing facilities using
28sustainable feedstock.

end insert

29(3) Funding to reduce greenhouse gas emissions associated with
30water use and supply, land and natural resource conservation and
31management, forestry, and sustainable agriculture.

32(4) Funding to reduce greenhouse gas emissions through
33strategic planning and development of sustainable infrastructure
34projects, including, but not limited to, transportation and housing.

35(5) Funding to reduce greenhouse gas emissions through
36increased in-state diversion of municipal solid waste from disposal
37through waste reduction, diversion, and reuse.

38(6) Funding to reduce greenhouse gas emissions through
39investments in programs implemented by local and regional
P4    1agencies, local and regional collaboratives, and nonprofit
2organizations coordinating with local governments.

3(7) Funding research, development, and deployment of
4innovative technologies, measures, and practices related to
5programs and projects funded pursuant to this chapter.

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Section 25200 of the Public Resources Code is
7amended to read:



There is in the Natural Resources Agency the State
9Energy Resources Conservation and Development Commission,
10consisting of five members appointed by the Governor subject to
11Section 25204.

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