Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1970

Introduced by Assembly Member Gordon

February 19, 2014

An act to add Chapter 3.6 (commencing with Section 39680) to Part 2 of Division 26 of the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 1970, as amended, Gordon. California Global Warming Solutions Act of 2006: Community Investment and Innovation Program.

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 act 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 from the auction or sale of allowances as part of a market-based compliance mechanism 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.

This bill would create the Community Investment and Innovation Program and would require moneys to be available from the Greenhouse Gas Reduction Fund, upon appropriation by the Legislature, for purposes of awarding begin delete local assistance end delete grants and other financial assistance to eligible begin delete grant end delete applicants, as defined, who submit plans to develop and implement integrated community-level greenhouse gas emissions reduction projects in their region. The bill would require the Strategic Growth Council, in begin delete coordination end delete begin insert consultation end insert with the state board, to administer the program, as specified. begin delete The bill would require 25% of the moneys appropriated for purposes of the program be awarded to eligible grant applicants whose projects include and specifically benefit environmental justice communities, as defined. end delete

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) The reduction of greenhouse gas emissions is critical to
public health, safety, the economy, and the natural begin delete environment
that residents rely on end delete begin insert environment end insert .

(b) The scoping plan prepared by the State Air Resources Board
pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) encourages local governments to adopt
greenhouse gas begin delete emissions end delete begin insert emission end insert reduction goals consistent with
the state’s overall goal of reducing statewide emissions to 1990
levels by 2020. In addition, the scoping plan recognizes local
governments as critical partners in achieving the state’s goals to
reduce greenhouse gas emissions.

(c) Local and regional governments have broad influence and,
in some cases exclusive authority, over activities that contribute
to significant direct and indirect greenhouse gas emissions through
their planning and permitting processes, local ordinances, outreach
and education efforts, and municipal operations. Many of the
measures in the scoping plan to reduce greenhouse gas emissions
rely on local government actions.

(d) State investments in local and regional greenhouse gas
emission reduction projects in this state help local communities
thrive, support the state’s emission-reduction and clean-energy
targets, lower the statewide unemployment rate, and spur new job
growth.

(e) Providing incentives to local governments to plan and
implement their own greenhouse gas emission reduction efforts
will assist the state to reach its emission-reduction targets faster
and more efficiently.

(f) Local greenhouse gas emission reduction initiatives begin delete best end delete
recognize the particular reduction opportunities at the local level
and provide an opportunity to enhance the environment and
economy of local and regional places through multibenefit projects.

(g) Local governments are well suited to coordinate and
aggregate micro-, small-, community-, and regional-scale projects
that will help the state reach its environmental targets while
providing incentives for investments and job growth at the local
level.

(h) It is the intent of the Legislature to promote investments in
local and regional greenhouse gas emission reduction projects.

SEC. 2.  

Chapter 3.6 (commencing with Section 39680) is added
to Part 2 of Division 26 of the Health and Safety Code, to read:

 

Chapter  3.6. Community Investment and Innovation
Program

 

39680.  

(a) The Community Investment and Innovation
Program is hereby created.

(b) Moneys shall be available from the Greenhouse Gas
Reduction Fund, created by Section 16428.8 of the Government
Code, upon appropriation by the Legislature, for purposes of
carrying out this chapter.

(c)  begin delete (1) end delete begin delete   end delete The Strategic Growth Council, in begin delete coordination end delete
begin insert consultation end insert with the state board, shall begin delete administer the Community
Investment and Innovation Program. end delete

begin delete (2) end delete begin delete   end delete begin delete The Strategic Growth Council, in coordination with the state
board, shall establish end delete begin insert administer end insert the Community Investment and
Innovation Program to provide begin delete local assistance end delete grants and other
financial assistance to eligible begin delete grant end delete applicants who submit plans
to develop and implement integrated community-level greenhouse
gas emissions reduction projects in their region.

(d) For purposes of this chapter, begin delete the following terms have the
following meanings: end delete

begin delete (1) end delete begin delete   end delete begin delete “Eligible grant end delete begin insert “eligible end insert applicant” means a city, county,
city and county, charter city, charter county, begin insert district, end insert special
district, begin delete regional energy network, environmental justice community, end delete
or a collection of cities, counties, begin insert districts, end insert or special districts begin insert ,
including, but not limited to, a regional energy network end insert .

begin delete

(2) “Environmental justice community” means a community
that has been in the top 10 percent of statewide community scores
under the latest version of the California Communities
Environmental Health Screening Tool published by the Office of
Environmental Health Hazard Assessment.

end delete

39681.  

The Strategic Growth Council, in consultation with the
state board, shall develop guidelines for the implementation of this
chapter consistent with Division 25.5 (commencing with Section
38550) and Chapter 4.1 (commencing with Section 39710). The
guidelines shall do all of the following:

(a) Allow for project implementation by eligible begin delete grant end delete
applicants, as well as metropolitan planning organizations, regional
climate authorities, begin delete regional energy networks, end delete joint powers
authorities, begin delete districts, end delete regional collaboratives, or nonprofit
organizations working in coordination with the eligible begin delete grant end delete
applicant.

(b) Provide for a portfolio of projects to be implemented that
reduce greenhouse gases and maximize the ability to achieve one
or more of the following:

(1) Decrease air or water pollution.

(2) Reduce the consumption of natural resources or energy.

(3) Provide opportunities to begin delete achieve greenhouse gas emissions
reductions in ways that end delete increase localized energy resources.

(4) Promote public-private partnerships to implement energy
efficiency and clean energy projects.

(5) Promote financing incentives for residential and commercial
facilities.

(6) Increase the reliability of local water supplies.

(7) Increase solid waste diversion from landfills.

(8) Increase electric vehicle infrastructure.

(9)  begin delete Achieve greenhouse gas emissions reductions in ways that
reduce end delete begin insert Reduce end insert vehicle miles traveled.

(10) Prevent begin insert the end insert conversion of agricultural, forest, and
open-space lands to uses that result in higher greenhouse gas
emissions.

(c) Maximize the development of community-level projects that
reduce greenhouse gas emissions.

begin delete

(d) Ensure projects are consistent with Chapter 4.1 (commencing
with Section 39710).

end delete begin delete

(e)

end delete

begin insert (d) end insert  Provide opportunities for both small- and large-population
participants and take into consideration regional context when
determining project eligibility.

begin delete

(f)

end delete

begin insert (e) end insert  Provide incentives for projects that are in addition to projects
already being implemented at the local level.

begin delete

(g)

end delete

begin insert (f) end insert  Provide opportunities for the development and
implementation of innovative projects that create new systems or
technologies.

begin delete

(h)

end delete

begin insert (g) end insert  Provide opportunities for existing, proven greenhouse gas
emissions reducing or sequestering projects, including, but not
limited to, those projects and programs already adopted by local
agencies.

begin delete

(i)

end delete

begin insert (h) end insert  Provide for the aggregation of community- and regional-scale
emissions reduction or sequestration projects.

begin delete

(j)

end delete

begin insert (i) end insert  Ensure projects funded pursuant to this chapter maximize
moneys appropriated, provide environmental benefits, create jobs,
and are consistent with law.

begin insert

(j) Provide for the allocation of moneys appropriated by the
Legislature for the purposes of this chapter consistent with Chapter
4.1 (commencing with Section 39710), including, but not limited
to, the allocation of moneys to disadvantaged communities required
pursuant to Section 39713.

end insert

39682.  

In evaluating potential projects to be funded pursuant
to this chapter, the Strategic Growth Council, in begin delete coordination end delete
begin insert consultation end insert with the state board, shall give priority to projects
that demonstrate one or more of the following characteristics:

begin delete

(a) Regional integrated implementation.

end delete begin delete

(b)

end delete

begin insert (a) end insert  The ability to leverage additional public and private funding.

begin delete

(c)

end delete

begin insert (b) end insert  The potential for cobenefits or multibenefit attributes.

begin delete

(d)

end delete

begin insert (c) end insert  The potential for the project or program to be replicated and
to create best practices to serve as a model for communities across
the state begin delete and region end delete .

begin delete

(e) Consideration of geographic and socioeconomic issues.

end delete begin delete

(f)

end delete

begin insert (d) end insert  Demonstration of innovative strategies and approaches to
reducing greenhouse gas emissions.

begin delete

39683.  

(a) (1) Twenty-five percent of the moneys appropriated
by the Legislature for purposes of this chapter shall be set aside
for projects from eligible grant applicants that include and
specifically benefit environmental justice communities.

(2) A project is only eligible for the set-aside if it meets both
of the following requirements:

(A) One or more of the applicants is a city, county, city and
county, or special district.

(B) The project is located in whole or in part in an environmental
justice community and directly benefits an environmental justice
community.

(b) Of the moneys to be appropriated pursuant to this section,
the eligible grant applicant may use a portion of the moneys to
provide technical assistance to environmental justice communities
for purposes of preparing competitive projects and plans to be
submitted to the Strategic Growth Council.

end delete