BILL NUMBER: AB 892	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Furutani

                        FEBRUARY 26, 2009

   An act to amend Section 39626.5 of the Health and Safety Code,
relating to air pollution, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 892, as introduced, Furutani. Goods Movement Emission Reduction
Program.
   Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, approved by the voters as
Proposition 1B at the November 7, 2006, general election, authorizes
the issuance of general obligation bonds for various
transportation-related purposes, including reducing emissions and
improving air quality in trade corridors. The State Air Resources
Board is required to allocate the funds to be used for air quality
purposes pursuant to specified requirements. No project can be funded
unless the project is sponsored by an applicant, as defined.
Returned funds or unspent funds from obligated contracts received by
the applicant prior to the end of a requirement to liquidate funds
within 4 years of the date of the award of a contract between the
applicant and a contractor revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation upon appropriation by the Legislature.
   This bill would authorize the applicant to reallocate these funds
to backup projects covered by the same grant agreement, or these
funds revert to the state board for reallocation consistent with
guidelines to be developed by the state board. Funds reallocated
either by the applicant or the state board must be liquidated within
4 years of the date of the award of the original contract, or the
funds revert to the California Ports Infrastructure, Security, and
Air Quality Improvement Account for allocation upon appropriation by
the Legislature.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 39626.5 of the Health and Safety Code is
amended to read:
   39626.5.  (a) A project shall not be funded pursuant to this
chapter unless both of the following requirements are met:
   (1) The project is sponsored by an applicant.
   (2) The project is consistent with any comprehensive local or
regional plans or strategies to reduce emissions from goods movement
activities in its jurisdiction.
   (b) Notwithstanding Section 16304.1 of the Government Code, an
applicant receiving funds pursuant to this chapter shall have up to
two years from the date that the funds are allocated to the applicant
to award the contract for implementation of the project, or the
funds shall revert to the California Ports Infrastructure, Security,
and Air Quality Improvement Account for allocation as provided in
paragraph (2) of subdivision (c) of Section 8879.23 of the Government
Code upon appropriation by the Legislature. Funds not liquidated
within four years of the date of the award of the contract between
the applicant and the contractor shall revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation as provided in paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code upon appropriation by the
Legislature. Returned funds or unspent funds from obligated contracts
received by the applicant prior to the end of the  four- 
 year  liquidation period  may be reallocated by the
applicant to fund other projects listed in the same contract award,
or shall be returned to the   state board for reallocation
by the state board pursuant to guidelines developed and adopted by
the state board through a public process. These guidelines shall give
first priority to projects that are both in the same emission source
category and in the same trade corridor as the original project, and
second priority to projects that are only in the same trade corridor
as the original project. All funds reallocated either by the
applicant or the state board shall be liquidated within four years of
the date of the award of the original contract. Funds not liquidated
within these four years  shall revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation provided in paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code upon appropriation by the Legislature.

   (c) Of the amount appropriated in Item 3900-001-6054 of the Budget
Act of 2007, not more than twenty-five million dollars ($25,000,000)
shall be available to the state board for the purpose of executing
grant agreements directly with ports, railroads, or local air
districts for eligible projects to achieve the earliest possible
health risk reduction from the emission sources identified in
subdivision (c) of Section 39625.1. It is the intent of the
Legislature that funds allocated pursuant to this subdivision be
distributed pursuant to the guidelines adopted by the state board
under Section 39626, and that the  state  board provide
sufficient opportunity for the public to review and comment on any
projects proposed to be funded pursuant to this subdivision.