BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
333 (Hancock)
Hearing Date: 05/18/2009 Amended: 05/04/2009
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
SB 333 (Hancock)
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BILL SUMMARY: SB 333 would establish a voluntary greenhouse gas
emission offset program in the Natural Resources Agency. Funds
given to the state on a voluntary basis would be available for
projects to offset the impacts of greenhouse gas emissions.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Developing guidelines and $240
$210General /
administering grants Special
*
* New special fund. Future costs potentially offset by voluntary
contributions.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense file.
Under the California Global Warming Solutions Act of 2006 (AB
32, Pavley), the Air Resources Board is required to regulate
greenhouse gasses to achieve specified emission reduction
targets. One of the emission reduction methods under
consideration by the Board is the use of "offsets". Essentially,
an offset allows someone to eliminate the impact of greenhouse
gas emissions by performing an action that offsets the impact of
those emissions, for example, by planting trees that absorb
carbon dioxide from the atmosphere. In recent years, a variety
of private offset companies have begun to sell offsets to
emitters who wish to voluntarily reduce the impact of their
emissions.
SB 333 would establish the Voluntary Greenhouse Gas Emission
Offset Program Fund in the state Treasury. The bill would allow
funds received by the state on a voluntary basis to be spent,
upon appropriation of the Legislature, on projects to offset the
emission of carbon dioxide. Allowable projects would reduce
greenhouse gas emissions, protect public trust resources from
the impacts of climate change, or provide for urban greening.
SB 333 (Hancock)
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These projects would be selected through a competitive grant
process. In addition, the Legislature could appropriate funds to
the California Conservation Corps and local conservation corps
for tree planting projects. Funds may also be directed to
nonprofit conservation organizations for tree planting.
The bill requires the Natural Resources Agency to adopt
guidelines for grant distribution and strategies for the sale of
voluntary offsets by the state. The bill requires that
greenhouse gas emission reductions are real, permanent,
quantifiable, verifiable, enforceable, and occur in addition to
any legally required reductions that would otherwise occur.
Staff notes that the start up costs to develop guidelines and
regulations and begin program implementation will occur
regardless of whether voluntary contributions are made. At some
point in the future, once the state can show that offsets are
available, contributions could fund ongoing program costs.