BILL ANALYSIS Ó SB 859 Page 1 (Without Reference to File) SENATE THIRD READING SB 859 (Committee on Budget and Fiscal Review) As Amended August 31, 2016 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE: 25-11 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Budget |19-5 |Ting, Bloom, Bonta, |Obernolte, Travis | | | |Campos, Chávez, Chiu, |Allen, Harper, Kim, | | | |Cooper, Gordon, |Melendez | | | |Holden, Irwin, | | | | |Lackey, McCarty, | | | | |Mullin, Nazarian, | | | | |O'Donnell, Rodriguez, | | | | |Thurmond, Wilk, | | | | |Williams | | | | | | | SB 859 Page 2 | | | | | ------------------------------------------------------------------ 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; 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 SB 859 Page 3 125 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% of the funding allocated by this program must be awarded to disadvantaged communities. 6)Establishes a "Healthy Soils Program" which funds farmer 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 SB 859 Page 4 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 (Budget and Fiscal Review Committee) and AB 1613 (Budget Committee) of the current legislative session. This bill also contains a $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. Analysis Prepared by: Christian Griffith / BUDGET / 916-319-2099 FN: 0005033 SB 859 Page 5