BILL NUMBER: AB 892	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 15, 2009

INTRODUCED BY   Assembly Member Furutani

                        FEBRUARY 26, 2009

   An act to amend  Section 39626.5   Sections
39626.5 and 39627.5  of the Health and Safety Code, relating to
air pollution, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 892, as amended, 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
  award  these funds to  backup 
 other  projects  covered by   listed
in  the same grant agreement  as approved by the state board
 ,  or   if not awarded   , the
bill would require  these funds  revert  
to be returned  to the state board for reallocation  to an
applicant  consistent with guidelines to be developed by the
state board. Funds  reallocated either   awarded
 by the applicant  or the state board must 
 would be required to  be liquidated within 4 years of the
date of the award of the original contract,  or 
 if not awarded, the bill   would require  the
funds  to  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
 pursuant to a grant agreement  to award the contract for
implementation of  the   a  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   awarded
 by the applicant to fund other projects listed in the same
 contract award  approved by the state board
 , or shall be returned to the state board for reallocation 
to an applicant  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   awarded  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 
 or  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) Notwithstanding Section 16304.1 of the Government Code, the
state board is not required to disburse to the applicant funds
appropriated to the state board pursuant to this chapter until the
applicant is ready to transfer funds to the contractor for
liquidation.  
   (c) 
    (d)  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.
   SEC. 2.    Section 39627.5 of the   Health
and Safety Code   is amended to read: 
   39627.5.  The state board shall submit an annual report to the
Legislature summarizing its activities related to the administration
of this chapter with the Governor's proposed budget, on January 10,
for the ensuing fiscal year. The summary shall, at a minimum, include
a description of projects funded pursuant to this chapter, the
amount of funds allocated for each project, the location of each
project, the status of each project, and a quantitative description
of the emissions reductions achieved through the project or program.
 The state board shall include in this report a description of
any changes to the scope of gra   nt agreements entered into
to allocate funds to an applicant or changes to the award amounts
described in a grant agreement.