BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 859| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 859 Author: Committee on Budget and Fiscal Review Amended: 8/30/16 Vote: 21 SENATE FLOOR: Not relevant ASSEMBLY FLOOR: Not available SUBJECT: Public resources: greenhouse emissions and biomass SOURCE: Author DIGEST: This bill is the cap-and-trade trailer bill for 2016-17. This bill contains necessary statutory changes to implement the cap-and-trade expenditures in the 2016-17 Budget. Assembly Amendments delete the Senate version of the bill and insert the current language. ANALYSIS: This bill does the following: 1) Makes changes, effective November 1, 2016, to the 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, $204,000 for head-of-household filers, and $300,000 for joint filers; SB 859 Page 2 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 125 megawatts of power from biomass facilities that generate electricity from forest materials removed from specific high fire hazard zones, as designated by CAL FIRE 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 to support the development of sustainable communities. Under this program, the Secretary of the Natural Resources Agency awards 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. SB 859 Page 3 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 in 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 Resources Board to develop a standardized emissions greenhouse gas emissions inventory for natural and working lands and a framework for accounting 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 Resources 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: Appropriation: Yes Fiscal Com.:YesLocal: Yes SB 859 Page 4 This bill provides statutory provisions associated with the $900 million 2016 Cap and Trade Expenditure plan contained in SB 830 (Committee on Budget and Fiscal Review) and AB 1613 (Committee on Budget). This bill also contains a $1.4 million special fund appropriation related to the Salton Sea. SUPPORT: (Verified8/30/16) None received OPPOSITION: (Verified8/30/16) None received Prepared by:Catherine Freeman / B. & F.R. / (916) 651-4103 8/31/16 20:32:54 **** END ****