BILL NUMBER: SB 1572	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 1, 2012

INTRODUCED BY   Senator Pavley

                        FEBRUARY 24, 2012

   An act to add  Sections 38575 and 38575.1  
Section 38575  to the Health and Safety Code, relating to
greenhouse gases.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1572, as amended, Pavley. California Global Warming Solutions
Act of 2006: Greenhouse Gas Reduction Account.
   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 state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emission
reductions. The act authorizes the state board to include use of
market-based compliance mechanisms. The act authorizes the state
board to adopt a schedule of fees to be paid by the sources of
greenhouse gas emissions regulated pursuant to the act, and requires
the revenues collected pursuant to that fee schedule be deposited
into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for the purposes of carrying out
the act.
   This bill would create the Greenhouse Gas Reduction 
Account within the Air Pollution Control  Fund. The bill
would require moneys, as specified, collected pursuant to a
market-based compliance mechanism to be deposited in this 
account   fund  . The bill also would require those
moneys, upon appropriation by the Legislature, be used for purposes
of carrying out the act.  The bill would require the Governor
to submit to the Legislature a draft plan detailing how moneys in
the account should be spent and to establish criteria for the
development and implementation of a final expenditure plan, as
specified, for moneys appropriated from the Greenhouse Gas Reduction
Account. The bill would require that funds appropriated from the
account be spent according to the final expenditure plan and for the
purpose of achieving the goal of reducing greenhouse gas emissions in
a manner that is consistent with the act. The bill would require
state agencies designated by the Governor to develop and adopt the
final expenditure plan through an open, public process. 
   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 finds and declares all of the
following:
   (a) In accordance with its discretionary authority to adopt
market-based compliance mechanisms pursuant to Part 5 (commencing
with Section 38570) of Division 25.5 of the Health and Safety Code,
the State Air Resources Board adopted on December 22, 2011, a final
regulation order establishing the cap-and-trade program, which took
effect on January 1, 2012.
   (b) California's cap-and-trade program is authorized by the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code), and
the funds generated by the program are regulatory fees, the use of
which is required to conform with Sinclair Paint Co. v. State Bd. of
Equalization (1997) 15 Cal.4th 866.
   (c) Provided the cap-and-trade regulation remains substantially
unchanged, the state board will auction greenhouse gas emissions
allowances beginning in the 2012 calendar year.
   (d) Pursuant to the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), proceeds from the auction of allowances will be
deposited in the Air Pollution Control Fund, and will only be
available, upon appropriation by the Legislature, for the purposes
designated in the act.
   (e) If the cap-and-trade regulation does not remain in effect, the
state board may consider alternate rules or regulations that would
be adopted pursuant to the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) in an open public process to ensure that statewide
greenhouse gas emissions are reduced to 1990 levels by 2020.
  SEC. 2.  Section 38575 is added to the Health and Safety Code, to
read:
   38575.  (a) The Greenhouse Gas Reduction  Account
  Fund  is hereby created  within the Air
Pollution Control Fund  .
   (b) Notwithstanding Section 38597, all moneys collected pursuant
to this part, excluding penalties and fines, shall be deposited in
the Greenhouse Gas Reduction  Account   Fund
 and shall be available, upon appropriation by the Legislature,
for purposes of carrying out this division. 
  SEC. 3.    Section 38575.1 is added to the Health
and Safety Code, to read:
   38575.1.  (a) The Governor shall submit to the Legislature a draft
expenditure plan detailing how moneys in the Greenhouse Gas
Reduction Account established in Section 38575 should be spent.
   (b) Based on the draft expenditure plan, the Governor shall
establish criteria to be used by state agencies, as designated by the
Governor, to develop and adopt a final expenditure plan for the
expenditure of moneys in the Greenhouse Gas Reduction Account, upon
appropriation of those moneys by the Legislature.
   (c) Funds appropriated from the Greenhouse Gas Reduction Account
shall be spent according to the final expenditure plan and for the
purpose of achieving the goal of reducing greenhouse gas emissions in
a manner that is consistent with Division 25.5 (commencing with
Section 38500).
   (d) State agencies designated by the Governor pursuant to
subdivision (b) shall develop and adopt the final expenditure plan
through an open, public process.