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SB-1463 California Global Warming Solutions Act of 2006: scoping plan: Greenhouse Gas Reduction Fund.(2017-2018)

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Date Published: 03/23/2018 04:00 AM
SB1463:v98#DOCUMENT

Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill
No. 1463

Introduced by Senator Moorlach

February 16, 2018

An act to amend Section 38560 of the Health and Safety Code, relating to air pollution. An act to amend Sections 38561 and 39719 of the Health and Safety Code, relating to greenhouse gases, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1463, as amended, Moorlach. Emissions of greenhouse gases: California Global Warming Solutions Act of 2006. California Global Warming Solutions Act of 2006: scoping plan: Greenhouse Gas Reduction Fund.
(1) 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 approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030.
The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would require the state board to include greenhouse gas emissions from wildlands and forest fires in the scoping plan.
(2) 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 continuously appropriate 25% of the annual proceeds of the fund to counties, with an equal percentage to each county. The bill would require counties, within 60 days of receiving an appropriation from the fund, to develop a specified plan to allocate the moneys, as specified. The bill would require counties to post the allocation plan on their Internet Web sites in real time and would require the California State Auditor’s Office to conduct an annual audit of each county. The bill would require the Department of Finance to redistribute any moneys that are unencumbered within 2 years of the appropriation in an equal percentage to those counties that have fully encumbered moneys within 2 years of receiving the appropriation. By adding to the duties of local governments, this bill would impose a state-mandated local program.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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 approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions.

This bill would make a nonsubstantive change to these provisions.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Section 38561 of the Health and Safety Code is amended to read:

38561.
 (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.
(b) (1) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.
(2) The state board shall include greenhouse gas emissions from wildlands and forest fires in the plan.
(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.
(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to California’s economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.
(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.
(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.
(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, communities with minority populations, communities with low-income populations, or both.
(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.

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), 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 of the fund are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as 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. Funds 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.
(d) (1) Beginning with the 2019–20 fiscal year, 25 percent of the annual proceeds of the fund are hereby continuously appropriated, without regard to fiscal year, in an equal percentage to each of the 58 counties in the state for the purpose of reducing greenhouse gas emissions.
(2) Within 60 days of receiving an appropriation from the fund pursuant to this subdivision, a county shall develop a plan to allocate the moneys to all of the following:
(A) The hardening of the electric utility infrastructure in critical areas, including, but not limited to, recent fire areas, aging or exposed electric utility infrastructure, high risk zones included on fire hazard severity zone maps developed by the Public Utilities Commission or the Department of Forestry and Fire Protection.
(B) The mitigation and management of wildlands and forests located in fire hazard severity zones or areas recently devastated by fire.
(C) (i) Other related environmental issues to mitigate or reduce the impact of greenhouse gas emissions.
(ii) No more than 25 percent of a county’s appropriation from the fund shall be allocated for the purposes of this paragraph.
(3) For any moneys that are unencumbered within two years of the county receiving the appropriation pursuant to this subdivision, the Department of Finance shall redistribute those moneys in an equal percentage to those counties that have fully encumbered moneys within two years of receiving the appropriation.
(4) For the purposes of this subdivision, a county shall do all of the following:
(A) Comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(B) Post the plan on the county’s Internet Web site in real time.
(5) The California State Auditor’s Office shall conduct an annual audit of each county to ensure conformity with the requirements of this subdivision.

SEC. 3.

  If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 38560 of the Health and Safety Code is amended to read:
38560.

The state board shall adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions from sources or categories of sources, subject to the criteria and schedules set forth in this part.