BILL NUMBER: SB 1402 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Pavley
FEBRUARY 19, 2016
An act to amend Section 39712 of add
Section 39719.6 to 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 would additionally 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 would authorize moneys in the fund
appropriated to the program to be used to promote
and further California climate goals to encourage the in-state
production of alternative fuels with low-carbon intensity
provide incentives for the in-state production of low-carbon
transportation fuels from new and existing facilities,
facilities using sustainable feedstock, with
preference priority to be given to
projects benefitting 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:
SECTION 1. The Legislature funds finds
and declares all of the following:
(a) Petroleum fuels are a leading cause of in-state greenhouse gas
emissions.
(b) California is vulnerable to oil market shocks given the small
number of in-state oil refineries.
(c) It is the policy of the state to address climate goals and the
economic security of California drivers through support of
low-carbon fuel production in a manner that boosts fuel supply and
diversity and provides energy security.
SEC. 2. Section 39719.6 is added to the
Health and Safety Code , to read:
39719.6. The California Low-Carbon Fuels Incentive Program is
hereby created, to be administered by the state board in conjunction
with the State Energy Resources Conservation and Development
Commission. The program, from moneys appropriated from the fund for
purposes of the program, shall provide incentives for the in-state
production of low-carbon transportation fuels from new and existing
facilities using sustainable feedstock. Priority shall be given to
projects providing direct benefits to disadvantaged communities
pursuant to the requirements of Sections 39711 and 39713.
SEC. 2. Section 39712 of the Health and Safety
Code is amended to read:
39712. (a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent with
the requirements of this chapter and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code.
(2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5 (commencing
with Section 38500) and is consistent with law. If any expenditure of
moneys from the fund for any measure or project is determined by a
court to be inconsistent with law, the allocations for the remaining
measures or projects shall be severable and shall not be affected.
(b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent with
Division 25.5 (commencing with Section 38500) and, where applicable
and to the extent feasible:
(1) Maximize economic, environmental, and public health benefits
to the state.
(2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
(3) Complement efforts to improve air quality.
(4) Direct investment toward the most disadvantaged communities
and households in the state.
(5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
(6) Lessen the impacts and effects of climate change on the state'
s communities, economy, and environment.
(c) Moneys appropriated from the fund may be allocated, consistent
with subdivision (a), for the purpose of reducing greenhouse gas
emissions in this state through investments that may include, but are
not limited to, any of the following:
(1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public
universities, state and local public buildings, and industrial and
manufacturing facilities.
(2) (A) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
(B) Funding, with preference to disadvantaged communities, to
promote and further California climate goals to encourage the
in-state production of alternative fuels with low-carbon intensity
from new and existing facilities, using sustainable feedstock.
(3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
(4) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
(5) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
(6) Funding to reduce greenhouse gas emissions through investments
in programs implemented by local and regional agencies, local and
regional collaboratives, and nonprofit organizations coordinating
with local governments.
(7) Funding research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded pursuant to this chapter.