Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1639

Introduced by Assembly Member Grove

February 11, 2014

An act to begin delete amend Section 39712 of, and to end delete add Section begin delete 38597.1 to, end delete begin insert 39712.1 to end insert the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 1639, as amended, Grove. California Global Warming Solutions Act of 2006: greenhouse gas emissions limit.

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.

The act also authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism begin insert , commonly known as cap-and-trade revenues, end insert to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature. Existing law requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a 3-year investment plan for the moneys deposited in the Greenhouse Gas Reduction Fund.

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Existing law creates the High-Speed Rail Authority, with specified powers and duties relative to development and construction of a high-speed rail system.

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This bill would begin delete state the intent of the Legislature that moneys derived from emissions reductions measures be expended to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit. The bill, as part of the 3-year investment plan, would require moneys appropriated from the Greenhouse Gas Reduction Fund be used to achieve the statewide greenhouse gas emissions limit end delete begin insert provide that cap-and-trade revenues shall not be appropriated from the fund for purposes of the high-speed rail system, and would make legislative findings and declarations in that regard end insert .

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares both of the
following: end insert

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(a) The Legislative Analyst’s Office, in its March 27, 2014,
report to the Legislature, concludes that using cap-and-trade
auction revenues for high-speed rail may not maximize greenhouse
gas (GHG) reductions, citing the following reasons in support of
that conclusion:

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(1) The high-speed rail project would not contribute significant
GHG reductions before 2020, which is the statutory target for
reaching 1990 emissions. This is because the high-speed rail system
will not be operational until 2022.

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(2) The construction of high-speed rail would actually generate
GHG emissions of 30,000 metric tons over the next several years.

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(b) It is therefore not appropriate to allocate cap-and-trade
auction revenues from the Greenhouse Gas Reduction Fund to the
high-speed rail system.

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begin insert SEC. 2. end insert   

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begin insert Section 39712.1 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

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begin insert 39712.1. end insert   

Moneys shall not be appropriated from the fund for
purposes of the high-speed rail system.

end insert

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SECTION 1.  

Section 38597.1 is added to the Health and Safety
Code, to read:

38597.1.  

It is the intent of the Legislature that moneys derived
from emissions reductions measures established pursuant to this
division shall be expended to achieve the maximum technologically
feasible and cost-effective reductions in greenhouse gas emissions
in furtherance of achieving the statewide greenhouse gas emissions
limit established pursuant to Section 38550.

SEC. 2.  

Section 39712 of the Health and Safety Code is
amended to read:

39712.  

(a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent
with the requirements of this chapter and Article 9.7 (commencing
with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
2 of the Government Code.

(2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5
(commencing with Section 38500) and is consistent with law. If
any expenditure of moneys from the fund for any measure or
project is determined by a court to be inconsistent with law, the
allocations for the remaining measures or projects shall be
severable and shall not be affected.

(b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent
with Division 25.5 (commencing with Section 38500), to achieve
the statewide greenhouse gas emissions limit established pursuant
to Section 38550, and, where applicable and to the extent feasible:

(1) Maximize economic, environmental, and public health
benefits to the state.

(2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.

(3) Complement efforts to improve air quality.

(4) Direct investment toward the most disadvantaged
communities and households in the state.

(5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.

(6) Lessen the impacts and effects of climate change on the
state’s communities, economy, and environment.

(c) Moneys appropriated from the fund may be allocated,
consistent with subdivision (a), for the purpose of reducing
greenhouse gas emissions in this state through investments that
may include, but are not limited to, any of the following:

(1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public universities,
state and local public buildings, and industrial and manufacturing
facilities.

(2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.

(3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.

(4) Funding to reduce greenhouse gas emissions through
strategic planning and development of sustainable infrastructure
projects, including, but not limited to, transportation and housing.

(5) Funding to reduce greenhouse gas emissions through
increased in-state diversion of municipal solid waste from disposal
through waste reduction, diversion, and reuse.

(6) Funding to reduce greenhouse gas emissions through
investments in programs implemented by local and regional
agencies, local and regional collaboratives, and nonprofit
organizations coordinating with local governments.

(7) Funding research, development, and deployment of
innovative technologies, measures, and practices related to
programs and projects funded pursuant to this chapter.

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