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SB-236 Low-Carbon Innovation Grant Program: Low-Carbon Innovation Panel.(2019-2020)

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Date Published: 03/28/2019 09:00 PM
SB236:v98#DOCUMENT

Amended  IN  Senate  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 236


Introduced by Senator Wilk

February 11, 2019


An act to amend Section 39719 of the Health and Safety add Article 7.1 (commencing with Section 12100.70) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


SB 236, as amended, Wilk. Greenhouse Gas Reduction Fund. Low-Carbon Innovation Grant Program: Low-Carbon Innovation Panel.
The Economic Revitalization Act establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, to serve as the Governor’s lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The office, among others, makes recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic and business development goals.
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 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 continuously appropriates 35% of the annual proceeds of the fund for transit, affordable housing, and sustainable communities programs and 25% of the annual proceeds of the fund for certain components of a specified high-speed rail project.

This bill would make technical, nonsubstantive changes to that provision.

This bill would establish the Low-Carbon Innovation Panel in the Governor’s Office of Business and Economic Development with a specified membership. The bill would establish the Low-Carbon Innovation Grant Program, to be administered by the panel, to award grants to help researchers, entrepreneurs, and companies create and commercialize new low-carbon technologies that will help the state meets its greenhouse gas emissions reductions targets, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation by the panel for the purposes of the program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Article 7.1 (commencing with Section 12100.70) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  7.1. Low-Carbon Innovation Grant Program

12100.70.
 (a) The Low-Carbon Innovation Panel is hereby established in the office. Members shall be appointed as follows:
(1) The Director shall appoint eight members as follows:
(A) Two members shall be professors affiliated with a campus of the University of California or California State University and be experts in the field of climate change or reductions of carbon dioxide emissions.
(B) Two members shall represent a California business or manufacturing association.
(C) Two members shall represent a California environmental association.
(D) Two members shall be professors at a public or private institution of higher learning in California who are experts in entrepreneurship, business, or economics.
(2) The Governor shall appoint one public member.
(3) The Senate Committee on Rules shall appoint one public member.
(4) The Speaker of the Assembly shall appoint one public member.
(b) Each member shall serve a term of three years with no limit on the number of terms that a member may be appointed to serve.

12100.72.
 (a) The Low-Carbon Innovation Grant Program is hereby established, to be administered by the Low-Carbon Innovation Panel established pursuant to Section 12100.70, to award grants to help researchers, entrepreneurs, and companies create and commercialize new low-carbon technologies that will help the state meet its greenhouse gas emissions reductions targets.
(b) An eligible project includes any of the following:
(1) The first-time application of a greenhouse gas emissions reduction technology that addresses a specific need.
(2) The use of a proven technology application that has been successful in a different sector or industry but is unproven in the proposed application.
(3) A significant improvement or enhancement to an existing greenhouse gas emissions reduction technology solution.
(4) Technology validation, including, but not limited to, proof-of-concept and prototype development.
(c) An eligible project also shall meet all of the following criteria:
(1) Be implemented in the state.
(2) Have the potential to help the state meet its greenhouse gas emissions reductions targets.
(3) Be completed within two years.
(d) An eligible applicant shall be a company incorporated in the state or the United States with a permanent establishment in the state or shall be a campus of the University of California or California State University. An eligible applicant also shall meet all of the following criteria:
(1) Have funding commitments from sources other than the State of California at the time of submitting an application.
(2) Be able to commercialize the technology solution in the state.
(3) Meet all other eligibility requirements identified by the Low-Carbon Innovation Panel.
(e) Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8, shall be available, upon appropriation by the Legislature, for allocation by the Low-Carbon Innovation Panel for the purposes of this section.

SECTION 1.Section 39719 of the Health and Safety Code is amended to read:
39719.

(a)The Legislature shall appropriate the annual proceeds of the fund for the purpose of reducing greenhouse gas emissions in this state in accordance with the requirements of Section 39712.

(b)To carry out a portion of the requirements of subdivision (a), annual proceeds of the fund are continuously appropriated for the following:

(1)Beginning in the 2015–16 fiscal year, and notwithstanding Section 13340 of the Government Code, 35 percent of annual proceeds are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as follows:

(A)Ten percent of the annual proceeds of the fund is hereby continuously appropriated to the Transportation Agency for the Transit and Intercity Rail Capital Program created by Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.

(B)Five percent of the annual proceeds of the fund is hereby continuously appropriated to the Low Carbon Transit Operations Program created by Part 3 (commencing with Section 75230) of Division 44 of the Public Resources Code. Moneys shall be allocated by the Controller, according to requirements of the program, and pursuant to the distribution formula in subdivision (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, the Public Utilities Code.

(C)Twenty percent of the annual proceeds of the fund is hereby continuously appropriated to the Strategic Growth Council for the Affordable Housing and Sustainable Communities Program created by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code. Of the amount appropriated in this subparagraph, no less than 10 percent of the annual proceeds shall be expended for affordable housing, consistent with the provisions of that program.

(2)Beginning in the 2015–16 fiscal year, notwithstanding Section 13340 of the Government Code, 25 percent of the annual proceeds of the fund is hereby continuously appropriated to the High-Speed Rail Authority for the following components of the initial operating segment and Phase I Blended System as described in the 2012 business plan adopted pursuant to Section 185033 of the Public Utilities Code:

(A)Acquisition and construction costs of the project.

(B)Environmental review and design costs of the project.

(C)Other capital costs of the project.

(D)Repayment of any loans made to the authority to fund the project.

(c)In determining the amount of annual proceeds of the fund for purposes of the calculation in subdivision (b), the funds subject to Section 39719.1 shall not be included.