Amended in Senate March 28, 2016

Senate BillNo. 1402


Introduced by Senator Pavley

February 19, 2016


An act tobegin delete amend Section 39712 ofend deletebegin insert add Section 39719.6 toend insert the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

SB 1402, as amended, Pavley. Low-carbon fuels.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a 3-year investment plan for the moneys deposited in the Greenhouse Gas Reduction Fund. Existing law authorizes moneys from the fund to be allocated for the purpose of reducing greenhouse gas emissions in this state through specified investments if the investment furthers the regulatory purposes of the act and is consistent with law.

This bill wouldbegin delete additionallyend deletebegin insert create the California Low-Carbon Fuels Incentive Program to be administered by the state board and the State Energy Resources Conservation and Development Commission, and wouldend insert authorize moneys in the fundbegin insert appropriated to the programend insert to be used tobegin delete promote and further California climate goals to encourage the in-state production of alternative fuels with low-carbon intensityend deletebegin insert provide incentives for the in-state production of low-carbon transportation fuelsend insert from new and existingbegin delete facilities,end deletebegin insert facilitiesend insert using sustainable feedstock, withbegin delete preferenceend deletebegin insert priorityend insert to be given tobegin insert projects benefittingend insert disadvantaged communities.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

The Legislaturebegin delete fundsend deletebegin insert findsend insert and declares all of
2the following:

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

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

7(c) It is the policy of the state to address climate goals and the
8economic security of California drivers through support of
9low-carbon fuel production in a manner that boosts fuel supply
10and diversity and provides energy security.

11begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 39719.6 is added to the end insertbegin insertHealth and Safety
12Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert39719.6.end insert  

The California Low-Carbon Fuels Incentive Program
14is hereby created, to be administered by the state board in
15conjunction with the State Energy Resources Conservation and
16Development Commission. The program, from moneys
17appropriated from the fund for purposes of the program, shall
18provide incentives for the in-state production of low-carbon
19transportation fuels from new and existing facilities using
20sustainable feedstock. Priority shall be given to projects providing
21direct benefits to disadvantaged communities pursuant to the
22requirements of Sections 39711 and 39713.

end insert
begin delete
23

SEC. 2.  

Section 39712 of the Health and Safety Code is
24amended to read:

25

39712.  

(a) (1) It is the intent of the Legislature that moneys
26shall be appropriated from the fund only in a manner consistent
27with the requirements of this chapter and Article 9.7 (commencing
28with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
292 of the Government Code.

P3    1(2) The state shall not approve allocations for a measure or
2program using moneys appropriated from the fund except after
3determining, based on the available evidence, that the use of those
4moneys furthers the regulatory purposes of Division 25.5
5(commencing with Section 38500) and is consistent with law. If
6any expenditure of moneys from the fund for any measure or
7project is determined by a court to be inconsistent with law, the
8allocations for the remaining measures or projects shall be
9severable and shall not be affected.

10(b) Moneys shall be used to facilitate the achievement of
11reductions of greenhouse gas emissions in this state consistent
12with Division 25.5 (commencing with Section 38500) and, where
13applicable and to the extent feasible:

14(1) Maximize economic, environmental, and public health
15benefits to the state.

16(2) Foster job creation by promoting in-state greenhouse gas
17emissions reduction projects carried out by California workers and
18businesses.

19(3) Complement efforts to improve air quality.

20(4) Direct investment toward the most disadvantaged
21communities and households in the state.

22(5) Provide opportunities for businesses, public agencies,
23nonprofits, and other community institutions to participate in and
24benefit from statewide efforts to reduce greenhouse gas emissions.

25(6) Lessen the impacts and effects of climate change on the
26state’s communities, economy, and environment.

27(c) Moneys appropriated from the fund may be allocated,
28consistent with subdivision (a), for the purpose of reducing
29greenhouse gas emissions in this state through investments that
30may include, but are not limited to, any of the following:

31(1) Funding to reduce greenhouse gas emissions through energy
32efficiency, clean and renewable energy generation, distributed
33renewable energy generation, transmission and storage, and other
34related actions, including, but not limited to, at public universities,
35state and local public buildings, and industrial and manufacturing
36facilities.

37(2) (A) Funding to reduce greenhouse gas emissions through
38the development of state-of-the-art systems to move goods and
39freight, advanced technology vehicles and vehicle infrastructure,
P4    1advanced biofuels, and low-carbon and efficient public
2transportation.

3(B) Funding, with preference to disadvantaged communities,
4to promote and further California climate goals to encourage the
5in-state production of alternative fuels with low-carbon intensity
6from new and existing facilities, using sustainable feedstock.

7(3) Funding to reduce greenhouse gas emissions associated with
8water use and supply, land and natural resource conservation and
9management, forestry, and sustainable agriculture.

10(4) Funding to reduce greenhouse gas emissions through
11strategic planning and development of sustainable infrastructure
12projects, including, but not limited to, transportation and housing.

13(5) Funding to reduce greenhouse gas emissions through
14increased in-state diversion of municipal solid waste from disposal
15through waste reduction, diversion, and reuse.

16(6) Funding to reduce greenhouse gas emissions through
17investments in programs implemented by local and regional
18agencies, local and regional collaboratives, and nonprofit
19organizations coordinating with local governments.

20(7) Funding research, development, and deployment of
21innovative technologies, measures, and practices related to
22programs and projects funded pursuant to this chapter.

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