Amended in Senate May 7, 2014

Amended in Senate April 22, 2014

Senate Bill No. 1268

Introduced by Senator Beall

February 21, 2014

An act to add Chapter 4.3 (commencing with Section 39740) to Part 2 of Division 26 of the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

SB 1268, as amended, Beall. Natural Resources Climate Improvement 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 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 authorizes the state board to include begin insert the end insert 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. 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 establish the Natural Resources Climate Improvement Program, which would be administered by the state board, in coordination with the Natural Resources Agency, to assist in the development and implementation of highly leveraged, regionally integrated natural resources projects that maximize greenhouse gas emissions reductions or sequestration. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation by the Legislature, to the state board to implement the Natural Resources Climate Improvement Program.

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.  

Chapter 4.3 (commencing with Section 39740)
is added to Part 2 of Division 26 of the Health and Safety Code,
to read:

 

Chapter  4.3. Natural Resources Climate Improvement
Program

 

39740.  

(a) The Natural Resources Climate Improvement
Program is hereby established and shall be administered by the
state board, in coordination with the Natural Resources Agency,
to assist in the development and implementation of highly
leveraged, regionally integrated natural resources projects that
maximize greenhouse gas emissions reductions or sequestration.

(b) Moneys from the Greenhouse Gas Reduction begin delete Fund end delete begin insert Fund, end insert
created pursuant to Section 16428.8 of the Government Code, shall
be available, upon appropriation by the Legislature, to the state
board to implement this chapter.

39741.  

(a) The state board, in coordination with the Natural
Resources Agency, shall develop guidelines for the implementation
of this chapter consistent with the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500)) and the Greenhouse Gas Reduction Fund Investment Plan
and Communities Revitalization Act (Chapter 4.1 (commencing
with Section 39710)).

(b) The guidelines adopted pursuant to subdivision (a) shall do
all of the following:

(1) Ensure that project investments funded pursuant to this
chapter utilize consistent accounting and modeling approaches to
estimate and monitor greenhouse gas emissions and reductions
over time.

(2) Promote innovative natural resources projects that protect
existing greenhouse gas emissions begin delete sinks or assist with the
enhancement of other climate-related projects in the transportation
and energy sectors that can be replicated regionally. end delete begin insert sinks. end insert

begin delete

(3) Promote projects based on the potential to increase climate
benefits and reduce extreme weather events, including, but not
limited to, the risk of fire, flood, water supply, sea-level rise, and
urban heat island effect associated with climate change.

end delete begin delete

(4)

end delete

begin insert (3) end insert  Promote projects that assist the state in reaching its climate
goals beyond 2020, consistent with Sections 38550 and 38551.

begin delete

(5)

end delete

begin insert (4) end insert  Prioritize projects that are consistent with, and assist in, the
implementation of county or regional land use greenhouse gas
emissions reduction plans or programs, including, but not limited
to, any of the following:

(A) A sustainable communities strategy, adopted pursuant to
Section 65080 of the Government Code.

(B) A local or regional plan to reduce greenhouse gas emissions.

(C) A local or regional climate adaptation plan.

(D) A natural community conservation plan and a habitat
conservation plan.

begin delete

(6)

end delete

begin insert (5) end insert  Ensure projects are consistent with Section 39716.

begin delete

(7)

end delete

begin insert (6) end insert  Promote investments in projects that include cobenefits,
including, but not limited to, begin delete state and federal air quality goals. end delete
begin insert either of the following: end insert

begin insert

(A) Climate adaptation or climate change resilience.

end insert begin insert

(B) State and federal air quality goals.

end insert begin delete

(8)

end delete

begin insert (7) end insert  Ensure projects funded pursuant to this chapter maximize
begin insert benefits from end insert moneys appropriated, provide environmental benefits,
create jobs for residents, and do not conflict with other areas of
law.

begin delete

(9)

end delete

begin insert (8) end insert  Promote the use of the best climate science and greenhouse
gas emissions reduction analytics.

begin delete

(10)

end delete

begin insert (9) end insert  Promote project consistency with the 2009 California
Climate Adaptation Strategy and its most recent update, adopted
pursuant to Executive Order S-13-2008.

begin delete

(11)

end delete

begin insert (10) end insert  Provide for public participation in the development and
adoption of any new grant programs implemented pursuant to this
chapter.

begin delete

(12)

end delete

begin insert (11) end insert  Require any new grant programs implemented pursuant to
this chapter to be consistent with and recognize the existing
jurisdictions of the implementing agencies.

begin insert

(12) Ensure greenhouse gas emissions reductions resulting from
projects funded pursuant to this chapter are not sold as offsets
through any market-based compliance mechanism that might be
adopted by the state board pursuant to the California Global
Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500)).

end insert begin insert

(13) Ensure projects funded pursuant to this chapter are selected
through a competitive process that is based on greenhouse gas
emissions reductions and that also considers project cobenefits.

end insert

39742.  

To provide greater coordination among state agencies,
boards, and departments, the Natural Resources Agency, in
coordination with the state board, shall do begin delete all of end delete begin insert , to the extent these
activities facilitate the achievement of greenhouse gas emissions
reductions, end insert the following:

(a) Provide begin insert annual end insert updates to the Strategic Growth Council on
critical issues related to climate change.

(b) Identify and notify state conservancies and the Wildlife
Conservation Board regarding major infrastructure projects that
would impact begin delete project planning and implementation. end delete begin insert the planning
and implementation of projects funded pursuant to this chapter. end insert

(c) Identify and conduct climate research to assist with the state’s
understanding on how to reduce or sequester greenhouse gas
emissions in the natural resources sector.

(d) Promote state implementation of the Climate Adaptation
Strategy, adopted pursuant to Executive Order S-13-2008.

(e) Provide technical assistance grants to project applicants from
disadvantaged communities applying for funding from the state
conservancies or the Wildlife Conservation Board.

39743.  

(a) State conservancies and the Wildlife Conservation
Board shall identify, develop, and implement projects within their
jurisdictions consistent with the guidelines developed pursuant to
this chapter, including, but not limited to, any of the following:

(1) Management and restoration of public lands to increase
carbon sequestration and reduce greenhouse gas emissions.

(2) Development and implementation of projects and programs
that encourage or provide incentives for increased carbon
sequestration or reduced greenhouse gas emissions related to the
use or management of natural resources on private lands.

(3) Provide incentives for the protection of agricultural and open
space lands to reduce greenhouse gas emissions and preserve
carbon sequestration potential.

(4) Fund investments in projects that use natural systems,
including, but not limited to, forests, wetlands, sustainable
agriculture, and urban forests, to reduce greenhouse gas emissions
or increase the sequestration of carbon to mitigate the impacts of
greenhouse gas emissions and create greater climate resiliency.

(5) Fund the research and development of methods to increase
carbon sequestration and decrease greenhouse gas emissions related
to the use and management of natural resources and of methods
to measure and verify these climate benefits.

(6) Encourage the diversion of organic waste to bioenergy and
composting.

(b) In evaluating potential projects to be funded pursuant to this
chapter, the state conservancies and the Wildlife Conservation
Board shall give priority to projects that demonstrate one or more
of the following characteristics:

(1) Regional implementation.

(2) The ability to leverage additional public and private funding.

(3) The potential for cobenefits or multibenefit attributes.

(4) The potential for the project or program to be replicated.

(5) The use of existing programs.

(6) Consideration of geographic and socioeconomic issues.