Today's Law As Amended


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SB-2 Greenhouse Gas Reduction Fund.(2015-2016)



As Amends the Law Today


SECTION 1.
 The Legislature hereby finds and declares all of the following:
(a) Over the next 10 years, the state faces a $59 billion shortfall to adequately maintain the state highway system in a basic state of good repair.
(b) Similarly, cities and counties face a $78 billion shortfall over the next decade to adequately maintain the existing network of local streets and roads.
(c) Since the State Air Resources Board imposed the cap-and-trade tax on gasoline production in January 2015, the Governor’s budget is projecting that $2.7 billion will be available from the Greenhouse Gas Reduction Fund in the fiscal year that begins July 1. That figure is more than double the amount that was available last year.
(d) Revenue has surged because cap-and-trade now applies to transportation fuels, the source of roughly 40 percent of the state’s carbon emissions.
(e) The Legislative Analyst’s Office projects that the imposition of cap-and-trade on transportation fuels will raise $1.9 billion this year. This revenue is raised by taxing consumers (through a pass-through increased cost of gasoline) and should be used to repair our streets and roads.
(f) Investing in our streets and roads will end traffic gridlock and improve mobility, which, in turn, will reduce greenhouse gases in the state.

SEC. 2.

 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), the  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 the  annual proceeds of the fund  are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as follows: following: 
(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 Funds  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 of the fund  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.
(3) (A) Beginning in the 2020–21 fiscal year, and until June 30, 2030, 5 percent of the annual proceeds of the fund, up to the sum of one hundred thirty million dollars ($130,000,000), is hereby annually transferred to the Safe and Affordable Drinking Water Fund established pursuant to Section 116766 for the purposes of Chapter 4.6 (commencing with Section 116765) of Part 12 of Division 104.
(B) Moneys transferred under this paragraph shall be used for the purpose of facilitating the achievement of reductions of greenhouse gas emissions in this state in accordance with the requirements of Section 39712 or to improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities, consistent with Division 25.5 (commencing with Section 38500). For purposes of the moneys transferred under this paragraph, a state agency may also comply with the requirements of paragraphs (2) and (3) of subdivision (a) of Section 16428.9 of the Government Code by describing how each proposed expenditure will improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities.
(c) In determining the amount of annual proceeds of the fund for purposes of the calculation in subdivision (b), the funds subject to Section Sections  39719.1 and 39719.3  shall not be included.

SEC. 3.

 Section 39719.3 is added to the Health and Safety Code, to read:

39719.3.
 The annual proceeds of the fund generated from the transportation fuels sector shall be appropriated by the Legislature for transportation infrastructure, including public streets and highways, but excluding high-speed rail.