BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 859


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          (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


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          |                |     |                      |                    |
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          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  








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            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  








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            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









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