BILL NUMBER: SB 605	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 18, 2013
	AMENDED IN SENATE  MAY 24, 2013
	AMENDED IN SENATE  MAY 8, 2013
	AMENDED IN SENATE  APRIL 8, 2013

INTRODUCED BY   Senator Lara
    (   Coauthor:   Senator  
Steinberg   ) 

                        FEBRUARY 22, 2013

   An act  to amend Section 16428.8 of the Government Code, and
 to add Section 38561.5 to the Health and Safety Code, relating
to greenhouse gases , and making an appropriation therefor 
.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 605, as amended, Lara. California Global Warming Solutions Act
of 2006:  Greenhouse Gas Reduction Fund and  scoping plan.

   The 
    (1)     The  California Global Warming
Solutions Act of 2006 establishes the State Air Resources Board as
the state agency responsible for monitoring and regulating sources
emitting greenhouse gases.  The act  
    The act authorizes the state board to include the use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Existing law authorizes the Controller to use the moneys in the fund
for cash flow loans to the General Fund, as specified. Existing law
requires the Department of Finance, in consultation with the state
board and any other relevant state agency, to develop, as specified,
a 3-year investment plan for the moneys deposited in the Greenhouse
Gas Reduction Fund.  
   This bill, during the 2013-14 fiscal year, would require the
Controller to determine the amount of moneys collected and deposited
in the fund by the state board. The bill would appropriate a
specified amount of those moneys to the State Air Resources Board
from the fund to be expended consistent with the act on projects and
programs that are located within and benefit disadvantaged
communities, as specified, thereby making an appropriation. The bill
would prohibit moneys in the fund designated for those specified
programs and projects to disadvantaged communities from being
transferred or loaned to any other fund. 
    (2)     The   California Global
Warming Solutions Act of 2006  requires the state board to adopt
a statewide greenhouse gas emissions limit, as defined, to be
achieved by 2020, equivalent to the statewide greenhouse gas
emissions levels in 1990. The act requires the state board to prepare
and approve a scoping plan for achieving the maximum technologically
feasible and cost-effective reductions in greenhouse gas emissions.
The act requires the scoping plan to be updated at least once every 5
years.
   This bill would require the state board, when updating the scoping
plan, to include specified criteria. The bill would require the
state board to submit that specified criteria to the Joint
Legislative Budget Committee, as specified. The bill would require
the state board, if it has completed an update of the scoping plan
prior to January 1, 2014, to further update the scoping plan to meet
the criteria and provisions of this bill.
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 16428.8 of the   
 Government Code   is amended to read: 
   16428.8.  (a) The Greenhouse Gas Reduction Fund, hereafter
referred to in this article as the fund, is hereby created as a
special fund in the State Treasury.
   (b) Except for fines and penalties, all moneys collected by the
State Air Resources Board from the auction or sale of allowances,
pursuant to a market-based compliance mechanism established pursuant
to Division 25.5 (commencing with Section 38500) of the Health and
Safety Code and specified in Sections 95800 to 96022, inclusive, of
Title 17 of the California Code of Regulations, shall be deposited in
the fund and available for appropriation by the Legislature.
   (c) All moneys deposited in the fund shall be appropriated and
shall be separately identified in the annual Budget Act. No moneys
from the General Fund or any other fund shall be deposited in the
fund.
   (d) Notwithstanding any other law, the Controller may use the
moneys in the fund for cash flow loans to the General Fund as
provided in Sections 16310 and 16381.
   (e) Any technical amendments made by the State Air Resources Board
to the regulations established under Sections 95800 to 96022,
inclusive, of Title 17 of the California Code of Regulations to
conform that regulation to this article shall be exempt from the
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3) and from the
review and approval of the Office of Administrative Law. 
   (f) (1) During the 2013-14 fiscal year, the month following an
auction or sale of allowances, pursuant to a market-based compliance
mechanism established pursuant to Division 25.5 (commencing with
Section 38500) of the Health and Safety Code and specified in
Sections 95800 to 96022, inclusive, of Title 17 of the California
Code of Regulations, the Controller shall determine the amount of
moneys collected and deposited in the fund by the State Air Resources
Board.  
   (2) Of the moneys determined by the Controller to be in the fund,
an amount not to exceed one hundred twenty-five million dollars
($125,000,000) for the entire 2013-14 fiscal year is hereby
appropriated to the State Air Resources Board.  
   (3) Subject to paragraph (2) of subdivision (a) of Section 39712
of the Health and Safety Code, of the moneys appropriated pursuant to
paragraph (2), the State Air Resources Board shall expend those
moneys on a periodic basis on projects and programs that are located
within and benefit disadvantaged communities, as defined in Section
39711 of the Health and Safety Code. Through an expedited approval
process, the State Air Resources Board shall expend those moneys as
quickly as feasible but no later than June 30, 2014, in accordance
with the three-year investment plan developed and adopted pursuant to
Section 39716 of the Health and Safety Code for the 2013-14 to
2015-16 fiscal years, inclusive.  
   (4) Notwithstanding subdivision (d), moneys in the fund designated
for programs and projects pursuant to paragraph (3) shall not be
transferred or loaned to any other fund. 
   SECTION 1.   SEC. 2.   Section 38561.5
is added to the Health and Safety Code, to read:
   38561.5.  (a) When updating the scoping plan pursuant to
subdivision (h) of Section 38561, the state board shall do all of the
following:
   (1) Prioritize and emphasize measures and actions resulting in
greenhouse gas emissions reductions that do both of the following:
   (A) Create jobs within the state.
   (B) Reduce copollutants in regions of the state most impacted by
toxic and criteria air pollutants.
   (2) Prioritize and emphasize current regulations and actions, and
recommend additional measures and actions that can be implemented
beginning no later than December 31, 2015, to achieve the maximum,
technologically feasible, and cost-effective reductions in
short-lived climate pollutants with high global warming potentials.
   (3) Limit the use of offsets, to the maximum extent feasible, to
those offsets originating and achieved within the state.
   (4) Include a plan that achieves the greenhouse gas emissions
goals established pursuant to Part 3 (commencing with Section 38550)
to be implemented in the event any regulatory measures implemented
and adopted by the state board pursuant to this division are not
projected to result in the greenhouse gas emissions reductions
necessary to meet the greenhouse emissions goals established pursuant
to Part 3 (commencing with Section 38550).
   (5) Consider the use of special funds authorized to be expended
for the purposes of greenhouse gas emissions reductions, including,
but not limited to, funds derived from market-based compliance
mechanisms, the Electric Program Investment Charge Fund created by
Section 25711 of the Public Resources Code, and the Alternative and
Renewable Fuel and Vehicle Technology Fund created by Section 44273
for emissions reductions from sources within the state in furtherance
of achieving and maintaining the greenhouse gas emissions goals
established pursuant to Part 3 (commencing with Section 38550).
   (b) The state board shall submit the criteria required pursuant to
subdivision (a) to the Joint Legislative Budget Committee. If, after
30 days of receipt, the Joint Legislative Budget Committee has not
made a finding on the submitted elements, the updated scoping plan
shall be deemed concurred.
   (c) If the scoping plan is updated prior to January 1, 2014,
pursuant to subdivision (h) of Section 38561, the state board shall
revise the scoping plan to incorporate the requirements detailed in
subdivision (a) and shall comply with subdivision (b).
   (d) For purposes of this section, "offset" means a quantified unit
of greenhouse gas emission that is reduced, avoided, or permanently
sequestered in a sector not regulated by a market-based compliance
mechanism adopted by the state board.