BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 31, 2016


                            ASSEMBLY COMMITTEE ON BUDGET


                                 Philip Ting, Chair


          SB  
          859 (Committee on Budget and Fiscal Review) - As Amended August  
          30, 2016


          SENATE VOTE:  25-11


          SUBJECT:  Public resources


          SUMMARY:  Provides statutory changes related to greenhouse gas  
          reduction and public resources necessary to implement the 2016  
          Budget Agreement.  Specifically, this bill:  


             1)   Effective November 1, 2016, reduces eligibility for  
               vehicle rebates offered by the Clean Vehicle Rebate Project  
               in the following manner:


                  a.        Reduces the maximum income eligibility levels  
                    to qualify for rebates to $150,000 for single filers,  
                    $240,000 for head-of-household filers, and $300,000  
                    for joint filers;


                  b.        Restricts rebates offered to plug-in hybrid  
                    electric vehicles to those that have an electric-only   
                    range of over 20 miles; 








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                  c.        Exempts fuel-cell electric cars rebates from  
                    the new income cap, and;


                  d.        Repeals the above provisions on June 30, 2017.


             2)   Requires a grantee of Greenhouse Gas Reduction Funds  
               (GGRF) for dairy programs to determine and mitigate impacts  
               of investments of a proposed project on pollution, toxic  
               air containments, groundwater and surface water impacts,  
               truck traffic, and odor.


             3)   Requires retail sellers of electricity to purchase a  
               total of 125 megawatts of power from biomass facilities  
               that generate electricity from forest materials removed  
               from specific high fire hazard zones, as designated by  
               Calfire in the Governor's Proclamation of a State of  
               Emergency issued October 30, 2015. 


             4)   Stipulates that GGRF grant funding for forest projects  
               shall reduce greenhouse gas emissions and improve forest  
               health, with priority given to projects that promote  
               long-term forest management goals.


             5)   Establishes an urban greening program, which authorizes  
               the Secretary of Natural Resources to award GGRF funding to  
               local governments and non-profits to develop greening  
               projects, such as park expansions.   At least 75 percent of  
               the funding allocated by this program must be awarded to  
               disadvantaged communities.


             6)   Establishes a "Healthy Soils Program" which funds farmer  








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               demonstration projects that achieves greenhouse gas  
               reductions through increasing soil organic matter and  
               improving soil structure.   


             7)   Expands the membership and expands the scope of the  
               Scientific Advisory Panel on Environmental Farming.


             8)   Clarifies that Native American tribes are among the  
               entities to participate and benefit from statewide efforts  
               to reduce greenhouse gas emissions and can receive  
               programmatic funding for that purpose.


             9)   Clarifies the role of a trustee of public lands.


             10)  Requires the California State Air Board to develop a  
               standardized emissions greenhouse gas emissions inventory  
               for natural and working lands and a framework for  
               accounting for emission reductions from forests.


             11)  Expands and clarifies the definition of eligible uses  
               for the Greenhouse Gas Reduction Revolving Loan program  
               operated by CalRecycle.


             12)  Appropriates $1.4 million from Waste Discharge Permit  
               Fund for the State Water Control Board to provide grants  
               for the projects that eliminate public health and safety  
               risks for wastewater, agricultural and other discharge of  
               urbanized areas of tributaries of the Salton Sea.


          FISCAL EFFECT:  This bill provides statutory provisions  
          associated with the $900 million 2016 Cap and Trade Expenditure  
          plan contained in SB 830 and AB 1613.  This bill also contains a  








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          $1.4 million special fund appropriation related to the Salton  
          Sea.


          COMMENTS:  This budget trailer bill contains provisions  
          necessary to implement the 2016 Cap and Trade plan.  This plan  
          builds upon the 2016 budget package to allow for the  
          programmatic spending of Greenhouse Gas Reductions Funds.  In  
          addition, this bill contains statutory provisions related to  
          removal of biomass resulting from tree mortality.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          None on file




          Analysis Prepared by:Christian Griffith / BUDGET /  
          916-319-2099












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