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AB-1182 Energy: Decarbonization Funding Plan.(2023-2024)

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Date Published: 06/20/2023 09:00 PM
AB1182:v97#DOCUMENT

Amended  IN  Senate  June 20, 2023
Amended  IN  Assembly  March 20, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1182

Introduced by Assembly Member Petrie-Norris

February 16, 2023

An act to add and repeal Article 10.5 (Section 12100.115) to Chapter 1.6 of Part 2 4 (commencing with Section 13150) of Chapter 2 of Part 3 of Division 3 of Title 2 of the Government Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1182, as amended, Petrie-Norris. Energy: GO-Biz. Decarbonization Funding Plan.
Existing law creates the Department of Finance and provides that the department has general powers of supervision over all matters concerning the financial and business policies of the state, including collecting financial information related to federal awards received, which includes schedules of cash and noncash federal assistance and passthrough amounts.
Existing law, the California Climate Crisis Act, declares that it is the policy of the state both to achieve net-zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net-negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.
Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office 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. Existing law establishes, within GO-Biz, the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals, including by making recommendations, coordinating between the state’s climate and energy agencies, and cooperating with local, regional, federal, and California public and private businesses and investors.

This bill would require GO-Biz to take specified actions to align state incentives with federal funds awarded in the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), including that GO-Biz identify opportunities to cofund grants that meet the state’s climate goals, post federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, and collaborate with state agencies to maximize awards to projects in the state. The bill would require that GO-Biz report to the Assembly and Senate Budget Committees and appropriate subcommittees all identified opportunities by February 1, 2024, and report all awards from the IRA and IIJA, as described, by May 15, 2024, and annually thereafter. The bill would repeal these provisions on January 1, 2033.

This bill would require the Department of Finance, in conjunction with the Governor’s Budget, to submit a decarbonization funding plan (plan) to the Joint Legislative Committee on Climate Change and to post the plan on its internet website. The bill would require the plan to, among other things, identify decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and set out priorities for funding, suggest efficiencies distributing decarbonization funds, including expediting the application and award process, and provide recommendations on how to effectively align state decarbonization incentives and allocated general fund moneys with federal funds from the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act. The bill would require, by July 1, 2024, the department to establish an internet web portal for purposes of identifying decarbonization funding opportunities with specified information. The bill would require GO-Biz to post a link to the internet web portal on its internet website. The bill would repeal these provisions on January 1, 2033.
This bill would set forth related legislative findings and declarations.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Climate change and air pollution threaten the health and prosperity of all Californians. Historic droughts, devastating wildfires, storms, extreme heat, and the death of millions of trees are creating billions of dollars in property damage and threatening human health and food supplies.
(b) California set ambitious targets to reduce the effects of climate change by reducing greenhouse gas emissions 40 percent below 1990 levels by 2030 and 85 percent below 1990 levels by 2045.
(c) President Joe Biden signed into federal law the Infrastructure Investment and Jobs Act (Public Law 117-58) on November 15, 2021, and the Inflation Reduction Act (Public Law 117-169) on August 16, 2022.
(d) Federal action adopting the IRA and the IIJA represents a tremendous opportunity to leverage state incentives to win federal funds that align with the state’s climate change, water, and energy goals.

SEC. 2.

 Article 4 (commencing with Section 13150) is added to Chapter 2 of Part 3 of Division 3 of Title 2 of the Government Code, to read:
Article  4. Decarbonization Funding Plan

13150.
 It is the intent of the Legislature in enacting this article to ensure that the state establishes a decarbonization funding plan that does both of the following:
(a) Identifies decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
(b) Provides for a retrospective accounting for all decarbonization funding streams administered by the state from January 1, 2007, to June 30, 2023, inclusive.

13151.
 For purposes of this article, the following definitions apply:
(a) “Decarbonization” means activities and programs that reduce greenhouse gas emissions.
(b) “Plan” means the decarbonization funding plan.
(c) “Web portal” means Decarbonization Funding Portal, as described in Section 13154.

13152.
 In conjunction with the Governor’s Budget submitted pursuant to Section 13337, the department shall do all of the following:
(a) (1) Establish a decarbonization funding plan that identifies decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
(2) Include in that plan the components described in Section 13153.
(b) (1) Submit the plan annually to the Joint Legislative Committee on Climate Change.
(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on June 30, 2028, pursuant to Section 10231.5.
(3) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795.
(c) Post the plan on the department’s internet website.

13153.
 The plan shall contain all of the following:
(a) A retrospective accounting for all of the decarbonization funding streams received or administered by the state from January 1, 2007, to June 30, 2023, inclusive.
(b) Identify local, state, and federal decarbonization funding sources.
(c) Identify programs that have been funded, are funded, or are expected to be funded by decarbonization funding sources.
(d) Identify decarbonization projects that have been delivered, are being delivered, or are expected to be delivered in the future, as a result of decarbonization funding sources.
(e) Suggest efficiencies distributing decarbonization funds, including expediting the application and award process.
(f) Identify opportunities and methods to reduce administration overhead.
(g) Provide recommendations on steps that can be taken to increase transparency with respect to grants and project awards.
(h) Identify which programs are most effective at building infrastructure needed to achieve carbon neutrality.
(i) Provide recommendations on how to effectively align state decarbonization incentives and allocated general fund moneys with federal funds from the Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act (IIJA).

13154.
 (a) By July 1, 2024, the department shall establish an internet web portal, known as the “Decarbonization Funding Portal,” which shall identify decarbonization funding opportunities.
(b) The web portal shall include, but is not limited to, an interactive internet website that is launched to include, at a minimum, information identifying all federal IRA and IIJA grants, state and federal tax incentives, or other opportunities to maximize the funding for decarbonization projects in the state.
(c) The Governor’s Office of Business and Economic Development shall post a link to the internet web portal on its internet website.

13155.
 This article shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 2.Article 10.5 (commencing with Section 12100.115) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
10.5.Federal Energy Incentive Alignment
12100.115.

(a)For the purposes of this section, “cofund” means designating state-approved incentives and allocated general fund incentive moneys as match funds within state-based applications to win awards pursuant to the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).

(b)The Governor’s Office of Business and Economic Development (GO-Biz) shall do all of the following to align state incentives with federal funds awarded in the IRA and the IIJA that meet the state’s energy, water, air quality, and climate goals:

(1)Identify opportunities to align state incentives with federal funds adopted in the IRA and the IIJA to cofund grants.

(2)Post all federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, as the grants, incentives, or opportunities are posted federally.

(3)Collaborate with state agencies to align state funding opportunities to maximize federal awards to projects in California.

(c)GO-Biz shall provide the following reports to the Assembly and Senate Budget Committees and appropriate subcommittees:

(1)By February 1, 2024, a report of all opportunities identified pursuant to subdivision (b).

(2)By May 15, 2024, and annually thereafter, a report of all awards to entities in the state from the IRA and the IIJA, including all of the following:

(A)Location of entities granted awards.

(B)A total of all awards in the state.

(3)A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795.

(d)This article shall remain in effect only until January 1, 2033, and as of that date is repealed.