Bill Text: CA SB155 | 2021-2022 | Regular Session | Chaptered

California Senate Bill 155 (Prior Session Legislation)

Bill Title: Public resources trailer bill.

Spectrum: Committee Bill

Status: (Passed) 2021-09-23 - Chaptered by Secretary of State. Chapter 258, Statutes of 2021. [SB155 Detail]

Download: California-2021-SB155-Chaptered.html

Senate Bill No. 155

CHAPTER 258

An act to amend Section 49015 of the Food and Agricultural Code, to amend Sections 11553.5, 63048.92, 63048.93, 63048.94, and 63048.95 of, and to add and repeal Section 12805.9 of, the Government Code, to amend Sections 39719, 43018.9, 44270.3, 44271, 44272, 44272.5, 44273, 116766, 116767, and 116773.4 of, to amend the heading of Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of, and to add Section 44271.5 to, the Health and Safety Code, to amend Sections 5090.15, 42012, 42013, 42014, 42019, 42020, 42023.1, 42023.4, 42024, and 42999 of, to add Sections 5090.42, 21166.2, 31103.1, and 42025 to, to add and repeal Sections 14571.6.1 and 21080.56 of, and to repeal Sections 42011, 42015, 42016, 42017, 42018, and 42021 of, the Public Resources Code, to amend Section 2827.10 of the Public Utilities Code, and to amend Sections 5001, 5101, 5104, and 5202 of the Water Code, relating to public resources, and making an appropriation therefor, to take effect immediately, bill related to the budget.

[ Approved by Governor September 23, 2021. Filed with Secretary of State September 23, 2021. ]

LEGISLATIVE COUNSEL'S DIGEST

SB 155, Committee on Budget and Fiscal Review. Public resources trailer bill.

(1) Existing law creates the Healthy Stores Refrigeration Grant Program in the Department of Food and Agriculture upon the appropriation of funds. Existing law requires the department to administer the program and to award grants to qualified entities, which is defined to include a small business or corner store, a city or county with representative low-income areas that contain small businesses or corner stores, and certain nonprofit entities that meet specified requirements. Existing law requires grant funds to be provided to corner stores and small businesses that are located within low-income areas or low-access areas, as defined, for the purchase of an energy-efficient refrigeration unit or units. Under existing law, if a city or county is awarded a grant under the program, it is required to provide grant funds to applicant small businesses and corner stores that are located in low-income areas or low-access areas. Existing law authorizes a city, county, or nonprofit entity that is awarded a grant to use up to 10% of the grant funds for technical assistance.

This bill would change the name of the program to the Healthy Refrigeration Grant Program. The bill would expand the definition of “qualified entity” to include a tribal government or tribal organization under certain circumstances and would revise the criteria required for a city, county, tribal government, tribal organization, or nonprofit entity to qualify to apply for a grant. The bill would revise the requirements of a grant recipient under the program and would additionally authorize a grant recipient to provide technical assistance.

This bill would require the department to award at least 3% of the total funds appropriated to the program in each fiscal year to qualified technical assistance providers, as specified. The bill would authorize the department to pay funds to a recipient in advance of the expenditure of funds by the recipient in an amount equal to or less than 90% of the grant amount provided in the recipient’s grant agreement. The bill would increase the amount of grant funds that a city, county, nonprofit entity, tribal government, or tribal organization may use for technical assistance to 20%. The bill would make additional related changes, including by revising other definitions applicable to the program.

(2) Existing provisions in the California Constitution create the Public Utilities Commission (PUC) and prescribe its membership, including the requirement that commissioners be appointed by the Governor and confirmed by the Senate. Existing law, the Public Utilities Act, requires the commissioners to be civil executive officers and their salaries to be fixed and paid in the same manner as those of other state officers. Existing law authorizes the Department of Human Resources to adjust, as needed, the salaries of specified state officers, including the president of the PUC, pursuant to certain requirements. Existing law prescribes the annual salary of members of the PUC, effective as of January 1, 1988, and prescribes a method by which it may be increased.

This bill would provide for an additional increase in the annual compensation of the members of the PUC of 5% in each of the 2021–22, 2022–23, and 2023–24 fiscal years.

(3) Existing law establishes the Natural Resources Agency, composed of departments, boards, conservancies, and commissions responsible for the restoration, protection, and management of the state’s natural and cultural resources. Existing law establishes the Department of Forestry and Fire Protection within the agency and establishes various programs for the prevention and reduction of wildfires. The Budget Act of 2020 appropriates various moneys for purposes of fire prevention and forest health. The Budget Act of 2021, contingent upon future legislation, appropriates from the General Fund $2,500,000,000 for specified purposes, including $258,000,000 from the General Fund on a one-time basis for a wildfire prevention and forest resilience package. The Budget Act of 2021, upon order of the Department of Finance, authorizes up to an additional $500,000,000 of General Fund moneys to be made available for wildfire prevention and forest resilience activities in the 2021–22 fiscal year if the Department of Finance determines additional funding is needed.

This bill would require the agency, on or before April 1, 2022, and annually thereafter on April 1 of each year until April 1, 2026, to develop a report on all programs related to wildfires and forest resilience funded pursuant to the Budget Act of 2020 and the Budget Act of 2021 for the purpose of informing the Legislature and the public on the agency’s implementation of the funded programs. The bill would require the agency to consult with the departments, boards, conservancies, and commissions within the agency, as well as any other state government entities the agency deems appropriate. The bill would require, for each program receiving funding from the budget acts, the agency to include in its report specified information, including, but not limited to, the amount of funding committed to the program and the amount of funding spent on the program from each budget act for the prior fiscal year and a summary of the projects implemented by the program, as provided. The bill would require the agency to publish each report on its internet website, and submit each report to specified legislative committees and to the Legislative Analyst’s Office. The bill would repeal these provisions on January 1, 2027.

(4) Existing law, the Climate Catalyst Revolving Loan Fund Act of 2020, authorizes the Infrastructure and Economic Development Bank (bank), under the Climate Catalyst Revolving Loan Fund Program, to provide financial assistance to any eligible sponsor or participating party for eligible climate catalyst projects, as defined, either directly to the sponsor or participating party or to a lending or financial institution, as specified.

Existing law requires the Strategic Growth Council, in consultation with the Labor and Workforce Development Agency, to advise the Legislature of potential categories of climate catalyst projects that would focus on the state’s key climate mitigation and resilience priorities. Existing law requires the bank to submit an annual report to the council, the Governor, the Speaker of the Assembly, and the President pro Tempore of the Senate on the program, including, among other things, the project category, description, and financial assistance amount for each climate catalyst project.

This bill would remove the requirement that the Strategic Growth Council inform the Legislature of potential categories of climate catalyst projects. The bill would instead, beginning in the 2021–2022 fiscal year, require the bank to meet and consult with specified state agencies to identify potential categories and eligibility criteria of climate catalyst projects that may receive financial assistance under the program, and would require the bank board to adopt that report as a climate catalyst financing plan. The bill would authorize the bank to engage in outreach activities to inform disadvantaged participating parties and disadvantaged sponsors of the categories of financial assistance available under the program. The bill would require the bank to consider applications for financial assistance as they are received, and to provide financial assistance only to projects approved by the bank board prior to July 1, 2025. The bill would require the bank to submit the annual program report commencing October 1, 2022, rather than October 1, 2021, and submit the report to the Legislative Analyst’s Office instead of the council. The bill would also require the report to additionally include, among other things, the aggregate amount of third-party financing.

Existing law excludes from the Administrative Procedure Act any criteria, priorities, and guidelines adopted by the bank in connection with the Climate Catalyst Revolving Loan Fund Program or other bank program.

This bill would also exclude any climate catalyst financing plan from the Administrative Procedure Act but would require the bank to post the plan on its internet website, as specified, at least 30 calendar days before a bank board meeting at which the plan will be considered for approval.

Existing law creates the Climate Catalyst Revolving Loan Fund within the State Treasury and makes the moneys in the fund available for expenditure for purposes of the program, upon appropriation by the Legislature. Existing law prohibits the fund from receiving funds from the state.

This bill would delete the prohibition on receiving funds from the state and would make the fund a continuously appropriated fund, except as specified. By changing the fund to a continuously appropriated fund, this bill would make an appropriation.

(5) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for 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 a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available to the state upon appropriation by the Legislature. Existing law provides that, through the 2023–24 fiscal year, the annual Budget Act shall include an appropriation of $165,000,000 from the fund to the Department of Forestry and Fire Protection for healthy forest and fire prevention projects that improve forest health and reduce greenhouse gas emissions caused by uncontrolled wildfires and an appropriation of $35,000,000 to the department for prescribed fire and other fuel reduction projects through proven forestry practices.

This bill would continuously appropriate, beginning in the 2022–23 fiscal year through 2028–29 fiscal year, the sum of $200,000,000 from the Greenhouse Gas Reduction Fund to the department in each fiscal year for healthy forest and fire prevention programs and projects that improve forest health and reduce emissions of greenhouse gases caused by uncontrolled wildfires and for the completion of prescribed fire and other fuel reduction projects through proven forestry practices consistent with the recommendations of the California Forest Carbon Plan.

(6) Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission (Energy Commission), to provide funding to certain entities to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies. Existing law requires the Energy Commission to give preference to those projects that maximize the goals of the program based on specified criteria and to fund specified eligible projects, including, among others, alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels.

This bill would rename the program as the Clean Transportation Program, which would continue to be administered by the Energy Commission. The bill would include California federally recognized tribes and tribal organizations, as defined, as entities that are eligible to receive funding under the Clean Transportation Program.

(7) The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties relating to the regulation of drinking water to protect public health. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law authorizes the state board to provide for the deposit into the fund of certain moneys, and also provides that, beginning in the 2020–2021 fiscal year, and until June 30, 2030, 5% of the annual proceeds of the Greenhouse Gas Reduction Fund, up to the sum of $130,000,000, is annually transferred to the fund. Existing law continuously appropriates the moneys in the fund to the state board for grants, loans, contracts, or services to assist eligible recipients. Existing law specifies eligible recipients of funding, which include public agencies, nonprofit organizations, mutual water companies, Native American tribes, as provided, administrators, and groundwater sustainability agencies.

This bill would expand the list of eligible funding recipients to include community water systems and technical assistance providers and would define a “technical assistance provider” to mean a person whom the state board has determined is competent to assist a water system by providing administrative, technical, operational, legal, or managerial services, as provided. The bill would provide that a privately owned public utility may serve as a technical assistance provider. By expanding the list of recipients eligible for moneys from the continuously appropriated Safe and Affordable Drinking Water Fund, this bill would make an appropriation.

(8) Existing law establishes the California Water and Wastewater Arrearage Payment Program in the State Water Resources Control Board. Existing law requires the state board, following an appropriation in the annual Budget Act for these purposes, to survey community water systems to determine statewide arrearages and water enterprise revenue shortfalls and adopt a resolution establishing guidelines for application requirements and reimbursement amounts for those arrearages and shortfalls, as specified.

Existing law requires a community water system to provide customers with arrearages accrued during the defined COVID-19 pandemic bill relief period a notice that they may enter into a payment plan. Existing law prohibits a community water system that receives program funds from discontinuing water service due to nonpayment before September 30, 2021, or the date the customer misses the enrollment deadline for, or defaults on, a payment plan, whichever is later.

This bill would expand this prohibition to all community water systems regardless of funding sources and would change the date described above to December 31, 2021.

(9) Existing law, the Off-Highway Motor Vehicle Recreation Act of 2003, states it is the intent of the Legislature that the Department of Parks and Recreation should support both motorized recreation and motorized off-highway access to nonmotorized recreation. Existing law establishes the Off-Highway Vehicle Trust Fund and requires the revenues in the fund to be available, upon appropriation, for specified purposes, including the planning, acquisition, development, mitigation, construction, maintenance, administration, operation, restoration, and conservation of lands in state vehicular recreation areas and certain other areas.

The bill would require the department to determine the best use of land known as the “Alameda-Tesla Expansion Area,” which is currently part of the Carnegie State Vehicular Recreation Area, as provided. The bill would prohibit the land from being designated as a state vehicular recreation area. The bill would transfer $1,000,000 from the General Fund to the State Parks and Recreation Fund for this purpose. The bill would transfer $29,800,000 from the General Fund to the trust fund to be used for the acquisition and development of properties to expand off-highway vehicle recreation, as provided.

Existing law establishes in the department the Off-Highway Motor Vehicle Recreation Commission, consisting of 9 members, as provided. Existing law requires, in order to be appointed to the commission, a nominee to represent one more specified groups, including biological or soil scientists, groups or associations of predominately rural landowners, and nonmotorized recreation interests. Existing law repeals the provisions relating to the commission on January 1, 2023.

This bill, among other things, would require that a nominee to the commission have expertise in or represent one of a list of specified interests, including, environmental restoration, health and safety, and the public-at-large. This bill would delete the repeal of the provisions relating to the commission and would delete other obsolete language.

(10) The California Beverage Container Recycling and Litter Reduction Act, which is administered by the Department of Resources Recycling and Recovery, is established to promote beverage container recycling and provides for the payment, collection, and distribution of certain payments and fees based on minimum refund values established for beverage containers.

The act requires dealers within a convenience zone where no recycling location has been established, or within a convenience zone that is unserved for 60 days, to either submit an affidavit to the department stating that the dealer has met specified standards for empty beverage container redemption, or pay $100 per day to the department, for deposit into the continuously appropriated California Beverage Container Recycling Fund, until a recycling location is established or until the dealer meets the standards for redemption specified in the affidavit provisions.

This bill would, until January 1, 2023, exempt from those requirements dealers that have gross annual sales of less than $1,500,000 and are less than 5,000 square feet.

(11) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

This bill would, until January 1, 2025, exempt from CEQA projects that conserve, restore, protect, or enhance, and assist in the recovery of California native fish and wildlife, and habitat upon which they depend or that restore or provide habitat for California native fish and wildlife. For the exemption to apply, the bill would require those projects to meet certain requirements. The bill would require the lead agency to obtain the concurrence of the Director of Fish and Wildlife for the lead agency’s determinations required under the bill for the exemption to apply. The bill would require the lead agency, within 48 hours of making a determination that a project is exempt under the provision of the bill, to file a notice of exemption with the Office of Planning and Research and would require the Department of Fish and Wildlife to post the concurrence of the Director of Fish and Wildlife on the department’s internet website. The bill would require the Natural Resources Agency to report annually to the Legislature all determinations made under the bill. By imposing additional duties on a lead agency, this bill would impose a state-mandated local program.

This bill would specify that the environmental review set forth in the Final Environmental Impact Report for the Lower Klamath Project License Surrender issued in April 2020 in combination with other environmental review documents related to removal of facilities on the Klamath River prepared and adopted by the Federal Energy Regulatory Commission, as provided, is conclusively presumed to satisfy the requirements of CEQA for any project for the removal of hydroelectric dams and associated facilities, along with associated restoration of formerly inundated lands, hatchery modifications, and implementation of mitigation measures in the Klamath River Basin, undertaken or approved by a public agency if certain conditions are met. Because a lead agency would be required to determine the applicability of this provision, this bill would imposed a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Klamath River.

(12) Existing law establishes the State Coastal Conservancy with prescribed powers and responsibilities for implementing a program of agricultural land preservation, area restoration, and resource enhancement within the coastal zone, as defined. Existing law prohibits Members of the Legislature and state, county, district, judicial district, and city officers or employees from being financially interested in any contract made by them in their official capacity or by any body or board of which they are members. Existing law identifies certain remote interests that are not subject to this prohibition and other situations in which an official is not deemed to be financially interested in a contract. Existing law makes a willful violation of this prohibition a crime.

This bill would provide that an officer or employee of the conservancy shall not be deemed to be financially interested in a contract made in their official capacity when specified conditions are met, including that the contract involves a grant of funds approved by the San Francisco Bay Restoration Authority to the conservancy.

(13) Existing law authorizes a local governing body to propose eligible parcels of property within its jurisdiction as recycling market development zones, as specified. Existing law requires that parcels of property designated as recycling market development zones retain that designation for 10 years. Existing law requires that applicants for designation of a recycling market development zone be selected based on the applications and inclusion of incentives to attract private sector investment.

This bill would repeal those requirements.

Existing law creates and continuously appropriates the Recycling Market Development Revolving Loan Subaccount in the Integrated Waste Management Account. Existing law authorizes the Department of Resources Recycling and Recovery to expend the moneys in the subaccount to make loans to local governing bodies, private businesses, and nonprofit entities within recycling market development zones or within areas outside those zones where partnerships exist with other public entities to assist local jurisdictions, as specified.

This bill would authorize the department to expend the moneys in the subaccount within areas outside those zones instead where making the loan will benefit a local jurisdiction or assist a local jurisdiction, as specified.

Existing law imposes various requirements on those loans made by the department from the subaccount, including, but not limited to, requirements related to interest rates, term duration, and prioritization of projects, and prohibits the financing of more than ³/₄ of a project’s costs or $2,000,000, whichever is less.

This bill would revise those requirements to require the department to establish interest rates as low as possible, eliminate the limit on loan-term duration, prioritize projects for circular recycling programs, require the department to establish project eligibility criteria, eliminate the cap on the project costs that the department is authorized to finance, and prohibit the provision of loans for projects that will result in the production of fuels or energy through transformation, engineered municipal solid waste conversion, or other disposal activities, as specified.

By expanding the purposes for which the moneys in the continuously appropriated subaccount may be expended, this bill would make an appropriation.

This bill would require the department to update its regulations relating to the implementation of the market development zone program. The bill would provide that those regulations in effect on September 1, 2021, remain effective only until they are revised or repealed by the department or January 1, 2022, whichever occurs first.

Under existing law, the department succeeded to, and was vested with, all of the authority, duties, powers, purposes, responsibilities, and jurisdiction of the former California Integrated Waste Management Board.

This bill would update multiple statutory references to the board to instead reference the department.

(14) Existing law establishes the CalRecycle Greenhouse Gas Reduction Revolving Loan Fund in the State Treasury, as part of the CalRecycle Greenhouse Gas Revolving Loan Program, and provides that funds deposited into the fund are continuously appropriated to the Department of Resources Recycling and Recovery for specified purposes. Existing law provides that any additional moneys appropriated by the Legislature from the Greenhouse Gas Reduction Fund to the department shall be expended by the department, consistent with specified laws, to administer a grant program to provide financial assistance to reduce the emissions of greenhouse gases by promoting in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products. Existing law requires the department to provide grants, incentive payments, contracts, or other funding mechanisms for in-state infrastructure projects or other projects that reduce emissions of greenhouse gases by organic composting and organics in-vessel digestion, among other methods. Existing law specifies the eligible infrastructure projects that reduce emissions of greenhouse gases.

This bill would repeal the requirement that any additional moneys appropriated by the Legislature from the Greenhouse Gas Reduction Fund be used to administer the grant program and the requirement that financial assistance be used to reduce emissions of greenhouse gases by promoting development of specified projects. The bill would instead require the department, upon appropriation by the Legislature, to administer the grant program to provide financial assistance to promote in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products. The bill would continue to require that moneys appropriated by the Legislature from the Greenhouse Gas Reduction Fund to the department be expended consistent with specified laws. The bill would specify that eligible financial assistance be additionally provided for preprocessing organic materials for composting or organics in-vessel digestion and codigestion at existing wastewater treatment plants, and would continue to specify eligible infrastructure projects.

(15) Under existing law, the PUC has regulatory authority over public utilities, including electrical corporations. Existing law requires an electrical corporation to file with the PUC a standard tariff providing for net energy meeting for eligible fuel cell customer-generators and make the tariff available, on a first-come-first-served basis, until the total cumulative rated generating capacity of the eligible fuel cell electrical generating facilities receiving service pursuant to the tariff reaches a level equal to the electrical corporation’s proportionate share of a statewide limitation of 500 megawatts cumulative rated generation capacity served in addition to the total installed capacity as of January 1, 2017. Under existing law, a fuel cell electrical generation facility is not eligible for the tariff unless it commences operation on or before December 31, 2021.

This bill would extend eligibility for the tariff to fuel cell electrical generation facilities that commence operation on or before December 31, 2023.

Under the Public Utilities Act, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because a violation of an order or decision of the PUC implementing the tariff requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

(16) Existing law establishes the State Water Resources Control Board for the purpose of providing for the orderly and efficient administration of the water resources of the state.

Existing law requires, with certain exceptions, that each person who, after 1955, extracts groundwater in excess of 25 acre-feet in any year to file a notice of extraction and diversion of water with the state board on or before March 1 of the succeeding year.

This bill would establish several specific dates when these notices would have to be filed depending on when the extraction first occurred, as specified. For extractions after September 30, 2021, the bill would require the notice to include extractions during the one-year period from October 1 of each year through September 30, inclusive, of the following year.

Existing law, with certain exceptions, requires each person who, after December 31, 1965, diverts water to file with the state board, prior to July 1 of the succeeding year, a statement of diversion and use, as specified, and requires supplemental statements to be filed annually, before July 1 of each year. Existing law provides that the making of any willful misstatement in connection with these provisions is a misdemeanor punishable as prescribed.

This bill would establish several specific dates when these annual statements and supplemental statements would have to be filed depending on when the diversion first occurred, as specified. For diversions after September 30, 2021, the bill would require the statement to include diversions during the one-year period from October 1 of each year through September 30, inclusive, of the following year. By changing the conduct that is punishable by a misdemeanor, the bill would impose a state-mandated local program.

Existing law requires a person, except as specified, who extracts groundwater from a probationary basin or, on or after July 1, 2017, in an area within a high- or medium-priority basin, as provided, to file a report of groundwater extraction by December 15 of each year for extractions made in the preceding water year, and prescribes the manner in which the report shall be filed with the state board.

This bill would require that report to be filed by February 1 of each year instead of December 15 of each year.

(17) Under existing law, the State Lands Commission has jurisdiction over tidelands and submerged lands of the state. Existing law authorizes grants to local entities of the right, title, and interest of the state in and to certain tidelands and submerged lands in trust for certain purposes. Existing law grants to the City of Long Beach all of the right, title, and interest of the state in and to all of the tidelands and submerged lands, as specified, that are within the corporate limits of the city, in trust for specified uses and purposes. Existing law establishes rules for how revenue from oil and gas operations on the Long Beach tidelands is divided between the city and the state.

This bill would provide that the state consents to the application of specified city ordinances to the state’s share of oil revenue within the Long Beach tidelands, as defined, for taxes on such production levied and in effect as of October 1, 2021. The bill would prohibit the state’s share of oil revenue within the Long Beach tidelands from being subject to any business license tax, severance tax, oil barrel production tax, or other municipal tax, fee, or assessment not already in existence and levied on or before October 1, 2021, that has the effect of reducing the state’s share of oil revenue, net profits, or remaining oil revenue received into the General Fund, without express statutory authorization for that tax, fee, or assessment.

(18) This bill would make available, upon appropriation by the Legislature in the annual Budget Act, $150,000,000 in the 2022–23 fiscal year and the same amount in the 2023–24 fiscal year to support programs and activities that mitigate extreme heat impacts.

This bill would, upon appropriation by the Legislature, make available $50,000,000 in the 2022–23 fiscal year to the Department of Conservation, in coordination with the State Air Resources Board and the Energy Commission, for pilot projects in the Sierra Nevadas to create carbon-negative fuels from materials resulting from forest vegetation management.

This bill would, upon appropriation by the Legislature in the annual Budget act, make available $593,000,000 in the 2022–23 and $175,000,000 in the 2023–24 fiscal years to the Natural Resources Agency, and to its departments, conservancies, and boards, to support programs and activities that advance multibenefit and nature-based solutions, as specified.

This bill would, upon appropriation by the Legislature, make available $350,000,000 in the 2023–23 fiscal year and $150,000,000 in the 2023–24 fiscal year to the State Coastal Conservancy for grants or expenditures for the protection and restoration of coastal and ocean resources from the impacts of sea level rise and other impacts of climate change. The bill would specify the types of projects eligible for the funds and would authorize the conservancy to coordinate with the Ocean Protection Council on project implementation.

This bill would, upon appropriation by the Legislature, make available $50,000,000 in the 2023–23 fiscal year and $50,000,000 in the 2023–24 fiscal year to the Ocean Protection Council for grants or expenditures for resilience projects that conserve, protect, and restore marine wildlife and healthy ocean and coastal ecosystems, as specified.

This bill would, upon appropriation by the Legislature in the annual Budget Act, make available $25,000,000 in the 2022–23 fiscal year and $75,000,000 in the 2023–24 fiscal year to the Office of Planning and Research, through the Integrated Climate Adaptation and Resiliency Program, for the establishment of a grant program for projects that mitigate the impacts of extreme heat or the urban heat island effect, as specified.

This bill would, upon appropriation by the Legislature in the annual Budget Act, make available $25,000,000 in the 2022–23 fiscal year and $75,000,000 in the 2023–24 fiscal year to the Strategic Growth Council, in coordination with the Office of Planning and Research, for the establishment of a community resilience centers grant program, with funding to be available for the construction or retrofit of facilities to serve as community resilience centers that mitigate the public health impacts of extreme heat and other emergency situations exacerbated by climate change on local populations, as specified.

(19) This bill would incorporate additional changes to Section 116766 of the Health and Safety Code proposed by SB 776 to be operative only if this bill and SB 776 are enacted and this bill is enacted last.

(20) 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 no reimbursement is required by this act for specified reasons.

(21) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 49015 of the Food and Agricultural Code is amended to read:

49015.

(a) For purposes of this section, the following definitions shall apply:

(1) “Corner store” means a small-scale store or grocery store, either an independent store or a chain store, that sells a limited selection of foods and other products, and that is located in a low-income area or low-access area in a rural, urban, or suburban area or tribal community. “Corner store” includes, among others, stores that are not located on a corner and stores commonly referred to as convenience stores or neighborhood stores.

(2) “Low-access area” means a census tract in which there are significant barriers to accessing a supermarket or large grocery store, which may include, but is not limited to, a census tract with at least 500 persons or 33 percent of the population that lives more than one mile, for nonrural areas, or more than 10 miles, for rural areas, from a supermarket or large grocery store.

(3) “Low-income area” means a census tract in which the income of at least 20 percent of the population is at or below the federal poverty level by family size, or if the median family income of the population is at or below 80 percent of the median family income of surrounding census tracts.

(4) “Minimally processed prepared food” may include any food prepared using either of the following processes:

(A) Traditional processes used to make food edible or to preserve it or to make it safe for human consumption, for example, smoking, roasting, freezing, drying, and fermenting.

(B) Physical processes that do not fundamentally alter the raw product or that only separate a whole, intact food into component parts, for example, grinding meat, separating eggs into albumen and yolk, and pressing fruits to produce juices.

(5) “Qualified entity” means any of the following:

(A) A small business or corner store.

(B) A city, county, or city and county, or tribal government or tribal organization with representative low-income areas that contain small businesses or corner stores or that is qualified to provide technical assistance to applicant small businesses or corner stores.

(C) A nonprofit entity or tribal government that works with low-income populations or in low-income areas or low-access areas, and that would do any of the following:

(i) Apply for grants on behalf of a small business, corner store, or tribal members, or a collection of small businesses, corner stores, or tribal members.

(ii) Sell or donate California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods directly in low-income areas or low-access areas.

(iii) Provide technical assistance to applicant small businesses or corner stores.

(6) “Recipient” means a small business, corner store, city, county, city and county, tribal government or tribal organization, or other nonprofit entity that is provided funds pursuant to subdivision (c).

(7) “Small business” means a small business, as defined in Section 14837 of the Government Code, that is authorized to accept nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b) of Section 49012, and is located in a low-income area or low-access area.

(b) The Healthy Refrigeration Grant Program shall be created in the department upon the appropriation of funds, including from a successful application of federal grant funding, if available, by the Legislature for purposes of the Healthy Refrigeration Grant Program.

(c) (1) Upon an appropriation of funds as specified in subdivision (b), the department shall administer the Healthy Refrigeration Grant Program and, pursuant to the program, award grants to qualified entities. If a city, county, or city and county is awarded a grant pursuant to this subdivision, it shall provide grant funds or provide technical assistance, or both, to applicant small businesses and corner stores that are located in low-income areas or low-access areas. Notwithstanding any other law, the department may pay funds to a recipient in advance of the expenditure of funds by the recipient for implementation of the Healthy Refrigeration Grant Program, instead of in the form of a reimbursement after the expenditure of funds for that program, in an amount equal to or less than 90 percent of the grant amount provided in the recipient’s grant agreement.

(2) The department shall award funds to qualified technical assistance providers to provide assistance with grant implementation for program applicants who are not receiving assistance from another recipient. The department shall allocate at least 3 percent of the total amount appropriated to the department in each fiscal year pursuant to subdivision (b) to qualified technical assistance providers pursuant to this paragraph.

(3) When awarding grants, the department shall give priority based on, but not limited to, the prevalence of any of the following in the communities that would be served by the qualified entity:

(A) People who are eligible for, or are receiving, nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b) of Section 49012.

(B) People with diabetes, obesity, or other diet-related illnesses.

(4) When awarding grants, the department shall consider giving priority to qualified entities based on, but not limited to, demonstrated efficiency and capability in the administration of a consumer incentive program, as defined in subdivision (a) of Section 49012.

(5) The department may establish regulations, minimum standards, funding schedules, and procedures for awarding grants to qualified entities, and may adopt any other regulations to implement and administer the Healthy Refrigeration Grant Program.

(d) A recipient shall be required to do all of the following:

(1) Use the grant funds provided pursuant to subdivision (c) to purchase an energy-efficient refrigeration or cold storage unit or units or to provide technical assistance, or both.

(2) Prioritize stocking the refrigeration unit or units purchased with Healthy Refrigeration Grant Program grant funds with California-grown fresh fruits, nuts, vegetables, dairy products, meat, eggs, and minimally processed prepared foods.

(3) Offer for sale fresh fruits, nuts, vegetables, and minimally processed prepared foods, including culturally appropriate foods, grown in California to the extent that is possible.

(e) A recipient shall be subject to reporting and auditing requirements, as determined by the department.

(f) A city, county, city and county, tribal government, tribal organization, or nonprofit entity that is awarded a grant pursuant to paragraph (1) of subdivision (c) and is providing grant funds to corner stores or small businesses to purchase refrigeration equipment may use up to 20 percent of Healthy Refrigeration Grant Program grant funds for technical assistance.

(g) Sections 9 and 42971 do not apply for a violation of this section or any regulation adopted pursuant to paragraph (5) of subdivision (c).

SEC. 2.

Section 11553.5 of the Government Code is amended to read:

11553.5.

(a) Effective January 1, 1988, an annual salary of seventy-nine thousand one hundred twenty-two dollars ($79,122) shall be paid to the following:

(1) Member of the Agricultural Labor Relations Board.

(2) Member of the State Energy Resources Conservation and Development Commission.

(3) Member of the Public Utilities Commission.

(4) Member of the Public Employment Relations Board.

(5) Member of the Unemployment Insurance Appeals Board.

(6) Member of the Workers’ Compensation Appeals Board.

(7) Member of the State Water Resources Control Board.

(8) Member of the Cannabis Control Appeals Panel.

(b) (1) The annual compensation provided by this section shall be increased in any fiscal year in which a general salary increase is provided for state employees. The amount of the increase provided by this section shall be comparable to, but shall not exceed, the percentage of the general cost-of-living salary increases provided for state employees during that fiscal year.

(2) In addition to the annual increase provided in paragraph (1), the members of the Public Utilities Commission shall receive an annual salary increase of 5 percent in each of the 2021–22, 2022–23, and 2023–24 fiscal years.

(c) Notwithstanding subdivision (b), any salary increase pursuant to paragraph (1) of subdivision (b) is subject to Section 11565.5.

SEC. 3.

Section 12805.9 is added to the Government Code, to read:

12805.9.

(a) On or before April 1, 2022, and annually thereafter on April 1 of each year until April 1, 2026, the Natural Resources Agency shall develop a report on all programs related to wildfires and forest resilience funded pursuant to the Budget Act of 2020 and the Budget Act of 2021 for the purpose of informing the Legislature and the public on the agency’s implementation of the funded programs.

(b) In developing the report required pursuant to subdivision (a), the Natural Resources Agency shall consult with the departments, boards, conservancies, and commissions within the agency, as well as any other state government entities the agency deems appropriate.

(c) The Natural Resources Agency shall include in the report required pursuant to subdivision (a), for each program funded pursuant to the Budget Act of 2020 and the Budget Act of 2021, all of the following:

(1) The amount of funding committed to the program and the amount of funding spent on the program from the Budget Act of 2020 and the Budget Act of 2021 for the prior fiscal year.

(2) The total amount of funding committed to the program and the total amount of funding spent on the program from the Budget Act of 2020 and the Budget Act of 2021 through the current fiscal year.

(3) A summary of the projects implemented by the program, including all of the following:

(A) The number of projects for which funding has been committed, as well as the number of projects completed.

(B) The geographic distribution of projects funded by county and region, including the number of projects and the average project cost per county and region. The Natural Resources Agency shall establish regions, as appropriate, for purposes of the report.

(d) The Natural Resources Agency shall, on or before April 1, 2022, and annually thereafter on April 1 of each year until April 1, 2026, do all of the following:

(1) Publish the report required pursuant to subdivision (a) on its internet website.

(2) Submit the report required pursuant to subdivision (a) to the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget.

(3) Submit the report required pursuant to subdivision (a) to the Legislative Analyst’s Office.

(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

SEC. 4.

Section 63048.92 of the Government Code is amended to read:

63048.92.

The definitions contained in this section are in addition to the definitions contained in Section 63010 and together with the definitions contained in that section shall govern the construction of this article, unless the context requires otherwise:

(a) “Bank” means the Infrastructure and Economic Development Bank.

(b) “Climate catalyst project” means any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within California that are consistent with, and intended to, further California’s climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure.

(c) “Climate Catalyst Revolving Loan Fund” means revolving funds by that name created under, and administered pursuant to, this article to provide financial assistance for climate catalyst projects.

(d) “Climate Catalyst Revolving Loan Fund Program” means the program of that name to administer the Climate Catalyst Revolving Loan Fund and to provide financial assistance for climate catalyst projects, to be administered by the bank pursuant to this article and criteria, priorities, and guidelines to be adopted by the bank board.

(e) “Climate catalyst financing plan” means the bank’s report identifying potential categories and eligibility criteria of climate catalyst projects that may receive financial assistance under this article. The climate catalyst financing plan shall be based on the bank’s direct consultation with the consulting agencies.

(f) “Consulting agencies” means the state agencies set forth in subdivision (f) of Section 63048.93 and any additional state agencies identified pursuant to subdivision (g) of Section 63048.93.

(g) “Disadvantaged” when used in conjunction with a participating party recipient or potential recipient of financial assistance means a participating party that is economically disadvantaged, or is operating in a community characterized by socioeconomic indicators that may include, but are not limited to, low- to -moderate income, poverty rates, unemployment, educational attainment, and other disadvantaging factors that limit access to capital and other resources.

(h) “Sponsor” and “participating party” shall mean the same as defined in Section 63010, but also include federally recognized Native American tribes and tribal business enterprises located in California.

SEC. 5.

Section 63048.93 of the Government Code is amended to read:

63048.93.

(a) The bank is hereby authorized and empowered to provide financial assistance under the Climate Catalyst Revolving Loan Fund Program to any eligible sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a climate catalyst project, in accordance with an agreement or agreements, between the bank and the sponsor or participating party, including, but not limited to, tribes, either as a sole lender or in participation or syndication with other lenders.

(b) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 does not apply to any climate catalyst financing plan or any criteria, priorities, and guidelines adopted by the bank in connection with the Climate Catalyst Revolving Loan Fund Program or any other program of the bank. However, any climate catalyst financing plan shall be posted on the bank’s internet website in a conspicuous location at least 30 calendar days before a bank board meeting at which the climate catalyst financing plan will be considered for approval.

(c) Repayments of financing made under the Climate Catalyst Revolving Loan Fund Program shall be deposited in the appropriate account created within the Climate Catalyst Revolving Loan Fund.

(d) (1) Beginning in the 2021–2022 fiscal year, the bank shall meet and confer with the consulting agencies concerning the specific categories of climate catalyst project corresponding to each agency as provided in subdivision (f). Thereafter, the bank board shall adopt, by majority vote of the bank board, a climate catalyst financing plan. Prior to the bank board meeting in which the bank board will first consider adoption of the financing plan, each consulting agency shall submit a letter to the bank board discussing any areas of support and any areas of disagreement with the financing plan under consideration.

(2) Following bank board approval, the climate catalyst financing plan shall be posted on the bank’s internet website.

(3) If the bank board has not approved a climate catalyst financing plan, then no climate catalyst financing plan shall be in effect until approved by the bank board.

(e) (1) A climate catalyst financing plan shall remain in effect until superseded by a revised climate catalyst financing plan. Commencing the first fiscal year following adoption of the initial climate catalyst financing plan, and in each fiscal year thereafter, the bank shall contact each consulting agency to discuss potential revisions to the climate catalyst financing plan last approved by the bank board. Following each consultation, the bank board shall consider adopting, by majority vote, a revised climate catalyst financing plan reflecting any material revisions to the prior climate catalyst financing plan.

(2) A modified climate catalyst financing plan shall not be considered for approval if no consulting agencies propose material revisions to the financing plan then in effect.

(3) In the event the bank board does not adopt a proposed revised climate catalyst financing plan, the existing climate catalyst financing plan shall remain in effect.

(f) Beginning with the 2021–2022 fiscal year, the consulting agencies and corresponding areas of climate catalyst projects they will provide consultation on shall be as follows:

(1) The Natural Resources Agency for climate catalyst projects that relate to sustainable vegetation management, forestry practices, and timber harvesting products. Eligible climate catalyst project categories include, but are not limited to, all of the following:

(A) Clean energy production, except combustion biomass conversion.

(B) Advanced construction materials.

(2) The Department of Food and Agriculture for climate catalyst projects that relate to agricultural improvements that enhance the climate or lessen impacts to the climate resulting from in-force agricultural practices. Eligible climate catalyst project categories include, but are not limited to, all of the following:

(A) Onfarm and food processing renewable energy, including both electricity and fuels, and bioenergy, to be used or distributed onsite.

(B) Energy, water, and materials efficiency.

(C) Methane reduction projects, utilizing best practice approaches consistent with state policy goals, excluding dairy digesters and biogas unless used or distributed onsite.

(D) Energy storage or microgrids.

(E) Equipment replacement.

(g) (1) The bank may engage in outreach activities to inform disadvantaged participating parties and disadvantaged sponsors of the categories of financial assistance potentially available within the climate catalyst revolving loan fund program. The outreach efforts may include, but are not limited to, all of the following:

(A) Conferring with the consulting agencies.

(B) Conferring with the Governor’s Office of Business and Economic Development.

(C) Direct contact with existing bank clients and customers that operate within the boundaries of a disadvantaged community.

(D) Consulting with governmental entities, individuals, and business entities engaged in providing, or assisting the obtaining of, financial assistance for disadvantaged sponsors or participating parties, including, but not limited to, business and industrial development corporations and minority enterprise small business investment companies. The executive director, on behalf of the bank, may enter into service contracts for this purpose. Section 10295 and Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code shall not apply to any such service contracts.

(2) The criteria, priorities, and guidelines adopted for the climate catalyst revolving loan fund program may include potential options for applying interest rate or fee subsidies for disadvantaged participating parties or disadvantaged sponsors seeking financial assistance from the bank under the climate catalyst revolving loan fund program. Further, the bank may offer reduced application fees to disadvantaged sponsors or participating parties seeking financial assistance under the climate catalyst revolving loan fund program.

(3) The bank may offer technical assistance to disadvantaged sponsors or participating parties potentially seeking financial assistance under the climate catalyst revolving loan fund program. The executive director, on behalf of the bank, may enter into service contracts to provide, or assist with the provision of, the technical assistance. Section 10295 and Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code shall not apply to any such service contracts.

(h) All financial assistance under the climate catalyst revolving loan fund program approved by the bank board shall be consistent with the climate catalyst financing plan then in effect.

(i) (1) The bank shall prepare, and the bank board shall approve by majority vote of the board, criteria, priorities, and guidelines for the provision of financial assistance under the climate catalyst revolving loan fund program. The bank board’s approval of any financial assistance for a climate catalyst project shall take into consideration those criteria, priorities, and guidelines together with the climate catalyst financing plan currently in effect. The criteria, priorities, and guidelines shall include, as factors for the determination of whether to approve the provision of financial assistance, the ability of the sponsor or participating party potentially receiving financial assistance to satisfy any obligation incurred and the return of capital to the catalyst revolving loan fund.

(2) The bank board may consider additional factors when determining whether to approve financial assistance for a climate catalyst project, taking into consideration the climate catalyst financing plan.

(3) The bank shall consider applications for financial assistance as they are received, on an ongoing basis, so long as there remain available moneys within the climate catalyst revolving loan fund to provide that financial assistance. The bank board’s determination of whether to approve applications for financial assistance shall be based on the climate catalyst financing plan in effect at the time the bank received the application.

(j) The bank shall provide financial assistance only for climate catalyst projects that the bank board approved prior to July 1, 2025.

SEC. 6.

Section 63048.94 of the Government Code is amended to read:

63048.94.

(a) Annually, commencing October 1, 2022, and no later than October 1 of each year, the bank shall prepare and submit to the Governor, the Speaker of the Assembly, the President pro Tempore of the Senate, and the Legislative Analyst’s Office a report containing Climate Catalyst Revolving Loan Fund Program activity for the preceding fiscal year ending June 30, and including all of the following:

(1) Information on individual Climate Catalyst Revolving Loan Fund Program financing, specifically all of the following:

(A) Climate catalyst project category.

(B) Climate catalyst project description.

(D) Financial assistance amount.

(E) Outstanding financial assistance amount due.

(F) Aggregate amount of third-party financing.

(G) The county and city of the funded climate catalyst project.

(H) A description of the expected contribution of the climate catalyst project to the state’s climate policy objectives, including both greenhouse gas reduction and climate resilience benefits.

(I) Type and quality of any jobs created as a result of the financial assistance.

(2) Total number and type of financial assistance issued to small businesses.

(3) Total number and type of applications received.

(4) Recommendations on needed Climate Catalyst Revolving Loan Fund Program changes or improvements to meet the objectives of this article. The bank shall meet and confer with the state agencies identified in subdivision (f) of Section 63048.93, and any additional agencies added pursuant to subdivision (g) of Section 63048.93, prior to the annual submission of the report required herein in an effort to develop those recommendations.

(b) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795.

(2) The report shall be presented to the bank board at its final public meeting of the calendar year in which the report was prepared. If the bank board holds no public meetings following the submission of the report, the report shall be presented to the bank board at its next available public meeting.

SEC. 7.

Section 63048.95 of the Government Code is amended to read:

63048.95.

(a) (1) There is hereby created in the State Treasury the Climate Catalyst Revolving Loan Fund for the purpose of implementing the objectives and provisions of this article. The Climate Catalyst Revolving Loan Fund shall be separate from any other fund or account created under this division.

(2) Obligations of the bank incurred in connection with the activities authorized under this article shall be payable solely from moneys within the Climate Catalyst Revolving Loan Fund. No other fund or account of the bank shall be available or shall be used for the payment of obligations incurred in connection with this article.

(3) Within the Climate Catalyst Revolving Loan Fund there shall also be established a Climate Catalyst Revolving Loan Account, a Climate Catalyst Guarantee and Credit Enhancement Account, a Climate Catalyst Securities Acquisition Account, and additional accounts and subaccounts that the bank may establish.

(b) (1) (A) Notwithstanding Section 13340, moneys, except as provided in subparagraphs (B) and (C), in the Climate Catalyst Revolving Loan Fund are continuously appropriated, without regard to fiscal year, for the support of the bank and shall be available for expenditure for the purposes as stated in this article.

(B) Moneys in the Climate Catalyst Revolving Loan Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.

(C) Moneys in the Climate Catalyst Revolving Loan Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.

(2) This subdivision shall not limit the authority of the bank to expend funds directly related to the servicing of approved debt, payments on credit enhancements or guarantees, acquisition of securities of any sponsor or participating party in connection with a climate catalyst project, or any other purpose in connection with providing financial assistance to a sponsor or participating party in connection with a climate catalyst project as set forth in this article.

(c) Not more than 5 percent of any bond proceeds administered by the bank in connection with the activities of the bank authorized under this article may be expended to cover the costs of issuance, as that terminology is defined under Section 147(g) of the Internal Revenue Code (26 U.S.C. Sec. 147(g)).

SEC. 8.

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:

(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 of the fund 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.

(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.

(4) Notwithstanding Section 13340 of the Government Code, for each fiscal year, beginning in the 2022–23 fiscal year through the 2028-29 fiscal year, the sum of two hundred million dollars ($200,000,000) is hereby continuously appropriated, to the Department of Forestry and Fire Protection and allocated as follows:

(A) One hundred sixty-five million dollars ($165,000,000) for healthy forest and fire prevention programs and projects that improve forest health and reduce emissions of greenhouse gases caused by uncontrolled wildfires.

(B) Thirty-five million dollars ($35,000,000) for the completion of prescribed fire and other fuel reduction projects through proven forestry practices consistent with the recommendations of the California Forest Carbon Plan, including the operation of year-round prescribed fire crews and implementation of a research and monitoring program for climate adaptation.

(c) In determining the amount of the annual proceeds of the fund for purposes of the calculation in paragraphs (1) to (3), inclusive, of subdivision (b), the funds subject to Section 39719.1 and the sum set forth in paragraph (4) of subdivision (b) shall not be included.

SEC. 9.

Section 43018.9 of the Health and Safety Code is amended to read:

43018.9.

(a) For purposes of this section, the following terms have the following meanings:

(1) “Commission” means the State Energy Resources Conservation and Development Commission.

(2) “Publicly available hydrogen-fueling station” means the equipment used to store and dispense hydrogen fuel to vehicles according to industry codes and standards that is open to the public.

(b) Notwithstanding any other law, the state board shall have no authority to enforce any element of its existing clean fuels outlet regulation or of any other regulation that requires or has the effect of requiring that any supplier, as defined in Section 7338 of the Revenue and Taxation Code as in effect on May 22, 2013, construct, operate, or provide funding for the construction or operation of any publicly available hydrogen-fueling station.

(c) On or before June 30, 2014, and every year thereafter, the state board shall aggregate and make available all of the following:

(1) The number of hydrogen-fueled vehicles that motor vehicle manufacturers project to be sold or leased over the next three years as reported to the state board pursuant to the Low Emission Vehicle regulations, as currently established in Sections 1961 to 1961.2, inclusive, of Title 13 of the California Code of Regulations.

(2) The total number of hydrogen-fueled vehicles registered with the Department of Motor Vehicles through April 30.

(d) On or before June 30, 2014, and every year thereafter, the state board, based on the information made available pursuant to subdivision (c), shall do both of the following:

(1) Evaluate the need for additional publicly available hydrogen-fueling stations for the subsequent three years in terms of quantity of fuel needed for the actual and projected number of hydrogen-fueled vehicles, geographic areas where fuel will be needed, and station coverage.

(2) Report findings to the commission on the need for additional publicly available hydrogen-fueling stations in terms of number of stations, geographic areas where additional stations will be needed, and minimum operating standards, such as number of dispensers, filling protocols, and pressures.

(e) (1) The commission shall allocate twenty million dollars ($20,000,000) annually to fund the number of stations identified pursuant to subdivision (d), not to exceed 20 percent of the moneys appropriated by the Legislature from the Alternative and Renewable Fuel and Vehicle Technology Fund, established pursuant to Section 44273, until there are at least 100 publicly available hydrogen-fueling stations in operation in California.

(2) If the commission, in consultation with the state board, determines that the full amount identified in paragraph (1) is not needed to fund the number of stations identified by the state board pursuant to subdivision (d), the commission may allocate any remaining moneys to other projects, subject to the requirements of the Clean Transportation Program pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.

(3) Allocations by the commission pursuant to this subdivision shall be subject to all of the requirements applicable to allocations from the Clean Transportation Program pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.

(4) The commission, in consultation with the state board, shall award moneys allocated in paragraph (1) based on best available data, including information made available pursuant to subdivision (d), and input from relevant stakeholders, including motor vehicle manufacturers that have planned deployments of hydrogen-fueled vehicles, according to a strategy that supports the deployment of an effective and efficient hydrogen-fueling station network in a way that maximizes benefits to the public while minimizing costs to the state.

(5) Notwithstanding paragraph (1), once the commission determines, in consultation with the state board, that the private sector is establishing publicly available hydrogen-fueling stations without the need for government support, the commission may cease providing funding for those stations.

(6) On or before December 31, 2015, and annually thereafter, the commission and the state board shall jointly review and report on progress toward establishing a hydrogen-fueling network that provides the coverage and capacity to fuel vehicles requiring hydrogen fuel that are being placed into operation in the state. The commission and the state board shall consider the following, including, but not limited to, the available plans of automobile manufacturers to deploy hydrogen-fueled vehicles in California and their progress toward achieving those plans, the rate of deployment of hydrogen-fueled vehicles, the length of time required to permit and construct hydrogen-fueling stations, the coverage and capacity of the existing hydrogen-fueling station network, and the amount and timing of growth in the fueling network to ensure fuel is available to these vehicles. The review shall also determine the remaining cost and timing to establish a network of 100 publicly available hydrogen-fueling stations and whether funding from the Clean Transportation Program remains necessary to achieve this goal.

(f) To assist in the implementation of this section and maximize the ability to deploy fueling infrastructure as rapidly as possible with the assistance of private capital, the commission may design grants, loan incentive programs, revolving loan programs, and other forms of financial assistance. The commission also may enter into an agreement with the Treasurer to provide financial assistance to further the purposes of this section.

(g) Funds appropriated to the commission for the purposes of this section shall be available for encumbrance by the commission for up to four years from the date of the appropriation and for liquidation up to four years after expiration of the deadline to encumber.

(h) Notwithstanding any other law, the state board, in consultation with districts, no later than July 1, 2014, shall convene working groups to evaluate the policies and goals contained within the Carl Moyer Memorial Air Quality Standards Attainment Program, pursuant to Section 44280, and Assembly Bill 923 (Chapter 707 of the Statutes of 2004).

(i) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.

SEC. 10.

Section 44270.3 of the Health and Safety Code is amended to read:

44270.3.

(a) For the purposes of this chapter, the following terms have the following meanings:

(1) “Benefit-cost score,” for the Clean Transportation Program created pursuant to Section 44272, means a project’s expected or potential greenhouse gas emissions reduction per dollar awarded by the commission to the project from the Alternative and Renewable Fuel and Vehicle Technology Fund.

(2) “Commission” means the State Energy Resources Conservation and Development Commission.

(3) “Full fuel-cycle assessment” or “life-cycle assessment” means evaluating and comparing the full environmental and health impacts of each step in the life cycle of a fuel, including, but not limited to, all of the following:

(A) Feedstock production, extraction, cultivation, transport, and storage, and the transportation and use of water and changes in land use and land cover therein.

(B) Fuel production, manufacture, distribution, marketing, transport, and storage, and the transportation and use of water therein.

(4) “Tribal organization” means a corporation, association, or group controlled, sanctioned, or chartered by a California federally recognized tribe that is subject to its laws or the laws of the United States relating to Native American affairs.

(5) “Vehicle technology” means any vehicle, boat, off-road equipment, or locomotive, or component thereof, including its engine, propulsion system, transmission, or construction materials.

(b) For purposes of the Air Quality Improvement Program created pursuant to Section 44274, the following terms have the following meanings:

(1) “Benefit-cost score” means the reasonably expected or potential criteria pollutant emission reductions achieved per dollar awarded by the board for the project.

(2) “Project” means a category of investments identified for potential funding by the board, including, but not limited to, competitive grants, revolving loans, loan guarantees, loans, vouchers, rebates, and other appropriate funding measures for specific vehicles, equipment, technologies, or initiatives authorized by Section 44274.

SEC. 11.

Section 44271 of the Health and Safety Code is amended to read:

44271.

(a) This chapter creates the Clean Transportation Program, pursuant to Section 44272, to be administered by the commission, and the Air Quality Improvement Program, pursuant to Section 44274, to be administered by the state board. The commission and the state board shall do all of the following in fulfilling their responsibilities pursuant to their respective programs:

(1) Establish sustainability goals to ensure that alternative and renewable fuel and vehicle deployment projects, on a full fuel-cycle assessment basis, will not adversely impact natural resources, especially state and federal lands.

(2) Establish a competitive process for the allocation of funds for projects funded pursuant to this chapter, which considers, among other factors, the benefit-cost score, as defined in subdivision (a) of Section 44270.3, associated with a project for the Clean Transportation Program or, as defined in paragraph (1) of subdivision (e) of Section 44270.3, associated with a project, as defined in paragraph (2) of subdivision (e) of Section 44270.3, for the Air Quality Improvement Program.

(3) Identify additional federal and private funding opportunities to augment or complement the programs created pursuant to this chapter.

(4) Ensure that the results of the reductions in emissions or benefits can be measured and quantified.

(5) Ensure that those revenues derived from fees imposed on motor vehicles that are expended pursuant to this chapter, as amended by Assembly Bill 8 of the 2013–14 Regular Session of the Legislature, are expended in compliance with Section 3 of Article XIX of the California Constitution, as were the revenues derived from fees imposed on motor vehicles pursuant to Assembly Bill 118 (Chapter 750 of the Statutes of 2007).

(b) The state board, in consultation with the commission, shall develop and adopt guidelines for both the Clean Transportation Program and the Air Quality Improvement Program to ensure that programs meet both of the following requirements:

(1) Activities undertaken pursuant to the programs complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant and greenhouse gas emissions.

(2) Activities undertaken pursuant to the programs maintain or improve upon emission reductions and air quality benefits in the State Implementation Plan for Ozone, California Phase 2 Reformulated Gasoline standards, and diesel fuel regulations.

(c) For the purposes of both of the programs created by this chapter, eligible projects do not include those required to be undertaken pursuant to state or federal law, district rules or regulations, memoranda of understanding with a governmental entity, or legally binding agreements or documents. For the purposes of the Clean Transportation Program, the state board shall advise the commission to ensure the requirements of this subdivision are met.

SEC. 12.

Section 44271.5 is added to the Health and Safety Code, to read:

44271.5.

The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 13.

The heading of Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code is amended to read:

Article 2. Clean Transportation Program

SEC. 14.

Section 44272 of the Health and Safety Code is amended to read:

44272.

(a) The Clean Transportation Program is hereby created. The program shall be administered by the commission. The commission shall implement the program by regulation pursuant to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The program shall provide, upon appropriation by the Legislature, competitive grants, revolving loans, loan guarantees, loans, or other appropriate funding measures to public agencies, California federally recognized tribes, tribal organizations, vehicle and technology entities, businesses and projects, public-private partnerships, workforce training partnerships and collaboratives, fleet owners, consumers, recreational boaters, and academic institutions to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies. The emphasis of this program shall be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology.

(b) A project that receives more than seventy-five thousand dollars ($75,000) in funds from the commission shall be approved at a noticed public meeting of the commission and shall be consistent with the priorities established by the investment plan adopted pursuant to Section 44272.5. Under this article, the commission may delegate to the commission’s executive director, or the executive director’s designee, the authority to approve either of the following:

(1) A contract, grant, loan, or other agreement or award that receives seventy-five thousand dollars ($75,000) or less in funds from the commission.

(2) Amendments to a contract, grant, loan, or other agreement or award as long as the amendments do not increase the amount of the award, change the scope of the project, or modify the purpose of the agreement.

(c) The commission shall provide preferences to those projects that maximize the goals of the Clean Transportation Program, based on the following criteria, as applicable:

(1) The project’s ability to provide a measurable transition from the nearly exclusive use of petroleum fuels to a diverse portfolio of viable alternative fuels that meet petroleum reduction and alternative fuel use goals.

(2) The project’s consistency with existing and future state climate change policy and low-carbon fuel standards.

(3) The project’s ability to reduce criteria air pollutants and air toxics and reduce or avoid multimedia environmental impacts.

(4) The project’s ability to decrease, on a life-cycle basis, the discharge of water pollutants or any other substances known to damage human health or the environment, in comparison to the production and use of California Phase 2 Reformulated Gasoline or diesel fuel produced and sold pursuant to California diesel fuel regulations set forth in Article 2 (commencing with Section 2280) of Chapter 5 of Division 3 of Title 13 of the California Code of Regulations.

(5) The project does not adversely impact the sustainability of the state’s natural resources, especially state and federal lands.

(6) The project provides nonstate matching funds. Costs incurred from the date a proposed award is noticed may be counted as nonstate matching funds. The commission may adopt further requirements for the purposes of this paragraph. The commission is not liable for costs incurred pursuant to this paragraph if the commission does not give final approval for the project or the proposed recipient does not meet requirements adopted by the commission pursuant to this paragraph.

(7) The project provides economic benefits for California by promoting California-based technology firms, jobs, and businesses.

(8) The project uses existing or proposed fueling infrastructure to maximize the outcome of the project.

(9) The project’s ability to reduce on a life-cycle assessment greenhouse gas emissions by at least 10 percent, and higher percentages in the future, from current reformulated gasoline and diesel fuel standards established by the state board.

(10) The project’s use of alternative fuel blends of at least 20 percent, and higher blend ratios in the future, with a preference for projects with higher blends.

(11) The project drives new technology advancement for vehicles, vessels, engines, and other equipment, and promotes the deployment of that technology in the marketplace.

(12) The project’s ability to transition workers to, or promote employment in, the alternative and renewable fuel and vehicle technology sector.

(d) The commission shall rank applications for projects proposed for funding awards based on solicitation criteria developed in accordance with subdivision (c), and shall give additional preference to funding those projects with higher benefit-cost scores.

(e) Only the following shall be eligible for funding:

(1) Alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels, including electricity, ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and biomethane, among others, and their feedstocks that have high potential for long-term or short-term commercialization, including projects that lead to sustainable feedstocks.

(2) Demonstration and deployment projects that optimize alternative and renewable fuels for existing and developing engine technologies.

(3) Projects to produce alternative and renewable low-carbon fuels in California.

(4) Projects to decrease the overall impact of an alternative and renewable fuel’s life-cycle carbon footprint and increase sustainability.

(5) Alternative and renewable fuel infrastructure, fueling stations, and equipment. The preference in paragraph (10) of subdivision (c) shall not apply to renewable diesel or biodiesel infrastructure, fueling stations, and equipment used solely for renewable diesel or biodiesel fuel.

(6) Projects to develop and improve light-, medium-, and heavy-duty vehicle technologies that provide for better fuel efficiency and lower greenhouse gas emissions, alternative fuel usage and storage, or emission reductions, including propulsion systems, advanced internal combustion engines with a 40 percent or better efficiency level over the current market standard, lightweight materials, intelligent transportation systems, energy storage, control systems and system integration, physical measurement and metering systems and software, development of design standards and testing and certification protocols, battery recycling and reuse, engine and fuel optimization electronic and electrified components, hybrid technology, plug-in hybrid technology, battery electric vehicle technology, fuel cell technology, and conversions of hybrid technology to plug-in technology through the installation of safety certified supplemental battery modules.

(7) Programs and projects that accelerate the commercialization of vehicles and alternative and renewable fuels, including buy-down programs through near-market and market-path deployments, advanced technology warranty or replacement insurance, development of market niches, supply-chain development, and research related to the pedestrian safety impacts of vehicle technologies and alternative and renewable fuels.

(8) Programs and projects to retrofit medium- and heavy-duty onroad and nonroad vehicle fleets with technologies that create higher fuel efficiencies, including alternative and renewable fuel vehicles and technologies, idle management technology, and aerodynamic retrofits that decrease fuel consumption.

(9) Infrastructure projects that promote alternative and renewable fuel infrastructure development connected with existing fleets, public transit, and existing transportation corridors, including physical measurement or metering equipment and truck stop electrification.

(10) Workforce training programs related to the development and deployment of technologies that transform California’s fuel and vehicle types and assist the state in implementing its climate change policies, including, but not limited to, alternative and renewable fuel feedstock production and extraction; renewable fuel production, distribution, transport, and storage; high-performance and low-emission vehicle technology and high tower electronics; automotive computer systems; mass transit fleet conversion, servicing, and maintenance; and other sectors or occupations related to the purposes of this chapter, including training programs to transition dislocated workers affected by the state’s greenhouse gas emission policies, including those from fossil fuel sectors, or training programs for low-skilled workers to enter or continue in a career pathway that leads to middle skill, industry-recognized credentials or state-approved apprenticeship opportunities in occupations related to the purposes of this chapter.

(11) Block grants or incentive programs administered by public entities or not-for-profit technology entities for multiple projects, education and program promotion within California, and development of alternative and renewable fuel and vehicle technology centers. The commission may adopt guidelines for implementing the block grant or incentive program, which shall be approved at a noticed public meeting of the commission.

(12) Life-cycle and multimedia analyses, sustainability and environmental impact evaluations, and market, financial, and technology assessments performed by a state agency to determine the impacts of increasing the use of low-carbon transportation fuels and technologies, and to assist in the preparation of the investment plan and program implementation.

(13) A program to provide funding for homeowners who purchase a plug-in electric vehicle to offset costs associated with modifying electrical sources to include a residential plug-in electric vehicle charging station. In establishing this program, the commission shall consider funding criteria to maximize the public benefit of the program.

(f) The commission may make a single source or sole source award pursuant to this section for applied research. The same requirements set forth in Section 25620.5 of the Public Resources Code shall apply to awards made on a single source basis or a sole source basis. This subdivision does not authorize the commission to make a single source or sole source award for a project or activity other than for applied research.

(g) The commission may do all of the following:

(1) Contract with the Treasurer to expend funds through programs implemented by the Treasurer, if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270).

(2) Contract with small business financial development corporations established by the Governor’s Office of Business and Economic Development to expend funds through the Small Business Loan Guarantee Program if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270).

(3) Advance funds, pursuant to an agreement with the commission, to any of the following:

(A) A public entity.

(B) A recipient to enable it to make advance payments to a public entity that is a subrecipient of the funds and under a binding and enforceable subagreement with the recipient.

(h) The commission shall collaborate with entities that have expertise in workforce development to implement the workforce development components of this section, including, but not limited to, the California Workforce Development Board, the Employment Training Panel, the Employment Development Department, and the Division of Apprenticeship Standards.

SEC. 15.

Section 44272.5 of the Health and Safety Code is amended to read:

44272.5.

(a) The commission shall develop and adopt an investment plan to determine priorities and opportunities for the Clean Transportation Program created pursuant to this chapter. The investment plan shall establish priorities for investment of funds and technologies to achieve the goals of this chapter and describe how funding will complement existing public and private investments, including existing state programs that further the goals of this chapter. The commission shall create and consult with an advisory body as it develops the investment plan. The advisory body is subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). The commission shall, at a minimum, hold one public hearing on the advisory body’s recommendations prior to approving the investment plan.

(b) Membership of the advisory body created pursuant to subdivision (a) shall include, but is not limited to, representatives of fuel and vehicle technology entities, labor organizations, environmental organizations, community-based justice and public health organizations, recreational boaters, consumer advocates, academic institutions, workforce training groups, and private industry. The advisory body shall also include representatives from the Resources Agency, the Transportation Agency, the Labor and Workforce Development Agency, and the California Environmental Protection Agency.

(c) The commission shall hold at least three public workshops in different regions of the state and one public hearing prior to approving the investment plan. The commission shall annually update and approve the plan. The commission shall reconvene and consult with the advisory body created pursuant to subdivision (a) prior to annually updating and approving the plan.

SEC. 16.

Section 44273 of the Health and Safety Code is amended to read:

44273.

(a) The Alternative and Renewable Fuel and Vehicle Technology Fund is hereby created in the State Treasury, to be administered by the commission. The moneys in the fund, upon appropriation by the Legislature, shall be expended by the commission to implement the Clean Transportation Program in accordance with this chapter.

(b) Beginning with the integrated energy policy report adopted in 2011, and in the subsequent reports adopted thereafter, pursuant to Section 25302 of the Public Resources Code, the commission shall include an evaluation of research, development, and deployment efforts funded by this chapter. The evaluation shall include all of the following:

(1) A list of projects funded by the Alternative and Renewable Fuel and Vehicle Technology Fund.

(2) The expected benefits of the projects in terms of air quality, petroleum use reduction, greenhouse gas emissions reduction, technology advancement, benefit-cost assessment, and progress towards achieving these benefits.

(3) The overall contribution of the funded projects toward promoting a transition to a diverse portfolio of clean, alternative transportation fuels and reduced petroleum dependency in California.

(4) Key obstacles and challenges to meeting these goals identified through funded projects.

(5) Recommendations for future actions.

SEC. 17.

Section 116766 of the Health and Safety Code is amended to read:

116766.

(a) The Safe and Affordable Drinking Water Fund is hereby established in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Notwithstanding Section 13340 of the Government Code, all moneys deposited in the fund are continuously appropriated to the board to fund all of the following:

(1) Operation and maintenance costs to help deliver an adequate supply of safe drinking water in both the near and long terms.

(2) Consolidating water systems, or extending drinking water services to other public water systems, domestic wells, and state small water systems.

(3) The provision of replacement water, as needed, to ensure immediate protection of health and safety as a short-term solution.

(4) The provision of services under Section 116686 for purposes of helping the water systems become self-sufficient in the long term.

(5) The development, implementation, and sustainability of long-term drinking water solutions.

(6) Board costs associated with the implementation and administration of programs pursuant to this chapter.

(b) Consistent with subdivision (a), the board shall expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

(c) (1) Eligible recipients of funding under this chapter are public agencies, nonprofit organizations, public utilities, mutual water companies, federally recognized California Native American tribes, nonfederally recognized Native American tribes on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004, administrators, groundwater sustainability agencies, community water systems, and technical assistance providers.

(2) To be eligible for funding under this chapter, grants, loans, contracts, or services provided to a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system and not the investors.

(d) On and after July 1, 2020, an expenditure from the fund shall be consistent with the fund expenditure plan.

(e) The board may expend moneys from the fund for reasonable costs associated with the administration of this chapter, not to exceed 5 percent of the annual deposits into the fund.

(f) In administering the fund, the board shall make reasonable efforts to ensure that funds are used to secure the long-term sustainability of drinking water service and infrastructure, including, but not limited to, requiring adequate technical, managerial, and financial capacity of eligible applicants as part of funding agreement outcomes.

(g) Beginning in the 2023–24 fiscal year, and each fiscal year thereafter until June 30, 2030, if the annual transfer to the fund pursuant to paragraph (3) of subdivision (b) of Section 39719 is less than one hundred thirty million dollars ($130,000,000), on an annual basis the Director of Finance shall calculate a sum equivalent to the difference, up to one hundred thirty million dollars ($130,000,000), and the Controller shall transfer that sum from the General Fund to the fund. This subdivision is operative only while a market-based compliance mechanism adopted pursuant to Section 38562 is operative.

SEC. 17.5.