BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           128 (Padilla)
          
          Hearing Date:  05/28/2009           Amended: 4/2/2009
          Consultant:  Brendan McCarthy   Policy Vote: EQ 5-2 














































          SB 128 (Padilla)
          Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 128 establishes the California Climate Change  
          Institute and requires the Institute to support research and  
          education programs relating to climate change and greenhouse gas  
          emissions.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Administering research Unknown, potentially in the  
          millionsUnknown
            programs

          Research funding       Unknown, potentially in the tens of  
          millions               Unknown
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Suspense File. 

          SB 128 would create the California Climate Change Institute.  
          Under the bill, the Institute would be tasked with a)  
          identifying and supporting research and education relating to  
          climate change, b) overseeing, coordinating, and managing a  
          research and development program for meeting the state's  
          greenhouse gas emission reduction targets and mitigating the  
          impacts of climate change, and 3) developing educational  
          curricula to support emerging green technology industries.

          This bill does not specify a governance structure for the  
          Institute, the size or scope of the research to be undertaken by  
          the Institute, or the funding source for the Institute's  
          operating costs or research.

          On April 29, 2009 the California Public Utilities Commission  
          administratively established the California Institute for  
          Climate Solutions, to conduct research into climate  
          change-related topics. The anticipated budget for the institute  
          was $60 million per year, funded from electricity and natural  
          gas ratepayers. AB 1338 (Committee on Budget, 2007) clarified  
          existing law which prohibits the commission from  
          administratively creating or funding such a program.








          SB 128 (Padilla)
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          Last session, SB 1762 (Perata) proposed to create the California  
          Climate Change Research and Workforce Development Institute at  
          the University of California. The purpose of the bill was to  
          support research on ways to reduce or mitigate greenhouse gas  
          emissions. SB 1762 would have been funded from about $10 million  
          per year in existing natural gas ratepayer funds and up to $30  
          million per year from a new surcharge on electricity ratepayers.  
          The Governor vetoed SB 1762, with the following veto message:

          I am returning Senate Bill 1762 without my signature.

          This bill would establish the California Climate Change  
          Institute within the University of California (UC) to perform  
          climate change research and develop educational and green  
          workforce development strategies.  Funding for the institute  
          comes from a redirection of public interest energy research  
          (PIER) funds and authorization of a new surcharge on electric  
          service provided by investor- and publicly-owned utilities.

          Unfortunately, this bill is too limiting and is too premature to  
          be signed this year.

          First, the bill places the institute entirely within the UC  
          system. Doing so does not recognize the role that the other  
          segments of California's higher education system can provide,  
          not only for climate change research, but for the development  
          and deployment of new technologies that will reduce our  
          greenhouse gas emissions and keep California at the forefront of  
          these emerging technologies.

          Additionally, this bill is premature because the Air Resources  
          Board (ARB) is still developing the Scoping Plan required by the  
          Global Warming Solutions Act of 2006.  This plan should be in  
          place prior to re-organizing the way climate change research in  
          the state is conducted.

          Finally, the bill prohibits ratepayer-funded climate change  
          research in other state agencies.  This is ill-advised as it may  
          deprive the state from being able to receive federal funding for  
          projects that must be administered by particular state agencies.  
           It would be a disservice to Californians if the state could not  
          fully participate in federal funding paid for by their tax  
          dollars.









          SB 128 (Padilla)
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