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AB-2842 Wood products.(2017-2018)

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Date Published: 05/01/2018 09:00 PM
AB2842:v97#DOCUMENT

Amended  IN  Assembly  May 01, 2018
Amended  IN  Assembly  April 05, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2842


Introduced by Assembly Member Bigelow
(Coauthors: Assembly Members Gallagher and Mathis)

February 16, 2018


An act to add Article 10 (commencing with Section 4630) to Chapter 8 of Part 2 of Division 4 of the Public Resources Code, relating to wood products, and making an appropriation therefor. products.


LEGISLATIVE COUNSEL'S DIGEST


AB 2842, as amended, Bigelow. Wood products.
(1) Existing law establishes the Department of Forestry and Fire Protection in the Natural Resources Agency. Existing law provides that a thriving in-state forest products sector provides public benefits, including employment opportunities in both rural and urban areas, and economic development for rural communities.
This bill would require the department to develop the California Wood Innovations Small Grants Program to provide grants and low-interest loans or loan guarantees, upon appropriation by the Legislature for these purposes, to entities that expand the use of wood products and increase in-state wood product processing and manufacturing, manufacturing for projects to improve forest health and reduce greenhouse gas emissions, as provided.
(2) 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 in regulating greenhouse gas emissions. 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. Existing law establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” in state government within the Governor’s office. Existing law requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.
This bill would appropriate provide that up to $20,000,000 may be available, upon appropriation, to GO-Biz for purposes of providing grants, loans, and loan guarantees for projects projects, approved by the department and the State Air Resources Board, that add mobile or stationary sawmill capacity for the in-state processing and production of wood products from forest and vegetation management projects activities that are intended to reduce the risk and intensity of wildfires.
Vote: MAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature hereby finds and declares that the state lacks adequate sawmill and manufacturing capacity to process timber from tree mortality and forest management projects into wood products and that increasing the capacity for in-state processing and manufacturing of timber into wood products will help reduce the risk and intensity of wildfires, create additional jobs, and reduce greenhouse gas emissions associated with shipping timber out of state for further processing.

SECTION 1.SEC. 2.

 Article 10 (commencing with Section 4630) is added to Chapter 8 of Part 2 of Division 4 of the Public Resources Code, to read:
Article  10. California Wood Innovations Small Grants Program

4630.
 (a) The department shall develop the California Wood Innovations Small Grants Program to provide grants and low-interest loans or loan guarantees, upon appropriation by the Legislature for these purposes, to entities that expand the use of wood products and increase in-state wood product processing and manufacturing. manufacturing for projects to improve forest health and reduce greenhouse gas emissions.
(b) Up to twenty million dollars ($20,000,000) may be available, upon appropriation, from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, to the Governor’s Office of Business and Economic Development, for purposes of reducing greenhouse gas emissions by providing grants, loans, and loan guarantees for projects, approved by the department and the State Air Resources Board, that add capacity for the in-state processing and production of wood products from forest and vegetation management activities that are intended to reduce the risk and intensity of wildfires.

(b)

(c) Projects eligible for grant funding pursuant to this section include, but are not limited to, research, development, and demonstration projects.

(c)

(d) Projects eligible for low-interest loans and loan guarantees pursuant to this section include, but are not limited to, facility creation or expansion and equipment procurement projects.

SEC. 2.

(a)The Legislature hereby finds and declares that the state lacks adequate sawmill and manufacturing capacity to process timber from tree mortality and forest management projects into wood products and that increasing the capacity for in-state processing and manufacturing of timber into wood products will help reduce the risk and intensity of wildfires, create additional jobs, and reduce greenhouse gas emissions associated with shipping timber out of state for further processing.

(b)The sum of twenty million dollars ($20,000,000) is hereby appropriated from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, to the Governor’s Office of Business and Economic Development, for purposes of reducing greenhouse gas emissions by providing grants, loans, and loan guarantees for projects that add mobile or stationary sawmill capacity for the in-state processing and production of wood products from forest and vegetation management projects that are intended to reduce the risk and intensity of wildfires.