Bill Text: CA AB1629 | 2015-2016 | Regular Session | Amended

---

Bill Title: Public resources: greenhouse emissions and biomass.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1629 Detail]

Download: California-2015-AB1629-Amended.html

---

BILL NUMBER: AB 1629	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2016
	AMENDED IN SENATE  AUGUST 25, 2016
	AMENDED IN ASSEMBLY  APRIL 14, 2016

INTRODUCED BY   Committee on Budget (Assembly Members Ting (Chair),
 Travis Allen, Bigelow,  Bloom, Bonta, Campos,
 Chávez,  Chiu, Cooper, Gordon,  Grove,
Harper,  Holden, Irwin,  Kim, Lackey, 
McCarty,  Melendez,  Mullin, Nazarian, 
Obernolte, O'Donnell,  Patterson, 
Rodriguez, Thurmond,  Wilk,  and Williams)

                        JANUARY 7, 2016

   An act to  add Section 412 to   amend Section
568 of, and to add Sections 412 and 569 to,  the Food and
Agricultural Code, to add  Section 12802.10 to  
Sections 12802.10 and 16428.86 to  the Government Code, 
to amend Section 39712 of, and  to add  and repeal 
Section 44274.3  to   of,  the Health and
Safety Code,   and   to amend Sections 6009.1,
42997, and 42999 of, and  to add  Section 4799.05 to
  Sections 717 and 4799.05 to,  the Public
Resources Code,   and to add Section 399.20.3 to the Public
Utilities Code,   relating to  greenhouse gases,
  public resources,  and making an appropriation
therefor, to take effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1629, as amended, Committee on Budget.  Greenhouse gas
emissions.   Public resources: gr   eenhouse
emissions and biomass. 
   (1) The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The act authorizes the state board to include the use of market-based
compliance mechanisms. Existing law requires all moneys, except for
fines and penalties, collected by the state board as part of a
market-based compliance mechanism to be deposited in the Greenhouse
Gas Reduction Fund and to be available upon appropriation.  
 Existing law requires all moneys, except for fines and
penalties, collected by the state board as part of a market-based
compliance mechanism to be deposited   in the Greenhouse Gas
Reduction Fund and to be available upon appropriation. Existing law
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. Existing law requires moneys from the fund to be
allocated for the purpose of reducing greenhouse gas emissions in
this state and satisfying other purposes, where applicable and to the
extent feasible, and authorizes specified investments if the
investment furthers the regulatory purposes of the act and is
consistent with law.  
   Existing law, the Cannella Environmental Farming Act of 1995,
requires the Department of Food and Agriculture to establish and
oversee an environmental farming program to provide incentives to
farmers whose practices promote the well-being of ecosystems, air
quality, and wildlife and their habitat. The act requires the
Secretary of Food and Agriculture to convene a 5-member Scientific
Advisory Panel on Environmental Farming, as prescribed, for the
purpose of providing advice and assistance to federal, state, and
local government agencies on issues relating to air, water, and
wildlife habitat, as specified. Existing law authorizes the panel to
establish ad hoc committees to assist the panel in performing its
functions.  
   This bill would increase the number of members on the panel from 5
to 9 members and would require that the secretary appoint 5 instead
of 3 of these members, the Secretary for Environmental Protection
appoint 2 instead of one of these members, and the Secretary of the
Natural Resources Agency appoint 2 instead of one of these members,
as prescribed. The bill would additionally allow the secretary to
appoint, in consultation with the panel, ex officio nonvoting members
to the panel. The bill would add representatives of nongovernmental
entities to persons who may be on the ad hoc committees.  
   This bill would require the State Air Resources Board to consult
with the Secretary of Food and Agriculture and the panel in
developing the quantification methods to demonstrate and quantify
on-farm greenhouse gas emissions reductions.  
   This bill would require the Department of Food and Agriculture, in
consultation with the panel, to establish and oversee a Healthy
Soils Program to seek to optimize climate benefits while supporting
the economic viability of California agriculture by providing
incentives, including loans, grants, research, and technical
assistance, or educational materials and outreach, to farmers whose
management practices contribute to healthy soils and result in net
long-term on-farm greenhouse gas benefits. The bill would authorize
the program to include funding of on-farm demonstration projects and,
if the funding of those projects is included, would require the
department to establish a technical advisory committee to review the
project applications for scientific validity and the project's
potential to achieve greenhouse gas benefits. The bill would require
the department to implement the program and quantify greenhouse gas
emissions reductions in accordance with the quantification methods
developed by the State Air Resources Board and specified funding
guidelines.  
   This bill would require the Department of Food and Agriculture,
prior to awarding grant funds from moneys from the Greenhouse Gas
Reduction Fund, to review the applicant analysis identifying
potential adverse impacts of a proposed project. The bill would
prohibit a project from receiving funding from the department unless
the applicant has made certain demonstrations to the department. The
bill would require the department to prioritize projects based on the
criteria pollutant emission benefits achieved by the project. 
   Existing law requires the California Environmental Protection
Agency to identify disadvantaged communities and requires the
Department of Finance, in consultation with the State Air Resources
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 would additionally require moneys in the fund, where
applicable and to the extent feasible, to be allocated to provide
opportunities for Native American tribes in the state to participate
in and benefit from statewide efforts to reduce greenhouse gas
emissions. The bill also would additionally authorize moneys in the
fund to be allocated to fund investments in programs implemented by
Native American tribes in the state if the investments further the
regulatory purposes of the act and are consistent with law. 
   This bill would require the Secretary of the Natural Resources
Agency to support the development of sustainable communities by
managing and awarding financial assistance for the preparation and
implementation of specified green infrastructure projects that reduce
greenhouse gas emissions and provide multiple benefits, as defined,
to specified entities. The bill would authorize moneys from the
Greenhouse Gas Reduction Fund, upon appropriation, to be available
for allocation by the Secretary of the Natural Resources Agency for
the purposes of awarding the financial assistance. The bill would
require the  secretary   Secretary of the
Natural Resources Agency  to allocate at least 75% of the moneys
to projects in critically underserved communities or
 disadvantaged communities, as specified. The bill would
exempt the development and adoption of guidelines and selection
criteria from the Administrative Procedure Act.
   This bill would require the State Air Resources Board, no later
than  January 1, 2017,   December 30, 2018,
 in consultation with the Natural Resources Agency and the
Department of Forestry and Fire Protection, to complete a
standardized greenhouse gas emissions inventory, as specified, and,
by  January 1,   December 30,  2018, to
complete a standardized accounting framework that supports statewide
greenhouse gas emissions reduction goals and investments of moneys
from the Greenhouse Gas Reduction Fund, as specified.
   This bill would find and declare that a diversity of dairy methane
management practices, including anaerobic digesters and nondigester
dairy methane management strategies, can effectively reduce
greenhouse gas emissions.
   (2) Existing law establishes the Air Quality Improvement Program
that is administered by the State Air Resources Board for the
purposes of funding projects related to, among other things, the
reduction of criteria air pollutants and improvement of air quality.
Pursuant to its existing statutory authority, the state board has
established the Clean Vehicle Rebate Project, as a part of the Air
Quality Improvement Program, to promote the production and use of
zero-emission vehicles by providing rebates for the purchase of new
zero-emission vehicles.
   The Charge Ahead California Initiative requires the State Air
Resources Board to adopt, no later than June 30, 2015, revisions to
the criteria and other requirements for the Clean Vehicle Rebate
Project to, among other things, limit eligibility based on income.
   This bill  would   would, between November 1,
2016, and July 1, 2017,  require the State Air Resources
 Board to adopt regulations   Board,  for
the purposes of the Clean Vehicle Rebate  Project that would
establish the   Project, to, among other things, offer
rebates only to applicants who purchase an eligible vehicle and have
a specified  maximum gross annual  income at specified
levels for a person to be eligible for a rebate;  
income;  increase rebate payments by $500 for low-income
applicants, as defined;  include outreach to disadvantaged
communities, as specified, to increase consumer awareness; 
and prioritize rebate payments for low-income applicants.
   (3) Existing law authorizes the Director of Forestry and Fire
Protection to enter into agreements and make loans for various forest
resource improvement projects to improve the timber productivity of
forest lands in the state and to improve all forest resources and the
total forest resource system.
   This bill would additionally authorize the Director of Forestry
and Fire Protection to provide grants to, or enter into contracts or
other cooperative agreements with, private or nongovernmental
entities, Native American tribes, or local, state, and federal public
agencies for the implementation and administration of projects and
programs to improve forest health and reduce greenhouse gas
emissions. The bill would require any such project or program funded
with moneys from the Greenhouse Gas Reduction Fund to comply with all
statutory and program requirements applicable to the use of moneys
from that fund.
   This bill would require the Department of Forestry and Fire
 Protection, from moneys appropriated to it, to allocate not
less than $5,000,000 to the Wildlife Conservation Board and public
conservancies with public land management responsibilities for
working forest conservation easements, as provided, and not less than
$2,500,000 for specified fire prevention and management activities
related to the implementation of managed ignition and prescribed
burns. The bill would also require the department  
Protection  to allocate funding to specified landscape-scale
projects. 
   (4) Existing law establishes the CalRecycle Greenhouse Gas
Reduction Revolving Loan Program, administered by the Department of
Resources Recycling and Recovery (CalRecycle), to provide loans to
reduce the emissions of greenhouse gases by promoting in-state
development of infrastructure to process organic and other recyclable
materials into new value-added products. Existing law requires
CalRecycle to administer a grant program to provide financial
assistance, in the form of grants, incentive payments, contracts, or
other funding mechanisms, to reduce the emissions of greenhouse gases
by promoting in-state development of infrastructure to process
organics and other recyclable materials into new value-added
products.  
   This bill would revise the 2 programs described above to, among
other things, expand the projects eligible for financial assistance
under those programs to other projects to reduce organic waste. 

   (5) Existing law grants to various local entities the right,
title, and interest of the state in and to certain tidelands and
submerged lands in trust for public trust purposes. Existing law
makes legislative declarations and findings regarding those granted
public trust lands, the role of the state as both trustor and
representative of the people of the state, who are the trust
beneficiaries, and the fiduciary duties of the trustee, including the
duty to take reasonable steps to enforce claims that are part of the
trust property and to defend actions that may result in a loss to
the trust.  
   This bill would additionally find and declare that a trustee of
public trust lands may bring any action related to its granted public
trust lands, including an action to abate a public nuisance, as a
representative of the trust beneficiaries.  
   (6) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations. Existing law requires every electrical corporation to
file with the commission a standard tariff for electricity generated
by an electric generation facility, as defined, that qualifies for
the tariff, is owned and operated by a retail customer of the
electrical corporation, and is located within the service territory
of, and developed to sell electricity to, the electrical corporation.
The commission refers to this requirement as the renewable feed-in
tariff. Existing law requires that, in order to qualify for the
tariff, the electric generation facility: (1) have an effective
capacity of not more than 3 megawatts, subject to the authority of
the commission to reduce this megawatt limitation, (2) be
interconnected and operate in parallel with the electric transmission
and distribution grid, (3) be strategically located and
interconnected to the electrical transmission and distribution system
in a manner that optimizes the deliverability of electricity
generated at the facility to load centers, and (4) meet the
definition of an eligible renewable energy resource under the
California Renewables Portfolio Standard Program. Existing law
requires an electrical corporation to make the tariff available to
the owner or operator of an electric generation facility within the
service territory of the electrical corporation, upon request, on a
first-come-first-served basis, until the electrical corporation meets
its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under the renewable
feed-in tariff and a renewable feed-in tariff that is applicable to a
local publicly owned electric utility. In addition to the 750
megawatt limitation, the renewable feed-in tariff law requires the
commission to direct the electrical corporations to collectively
procure at least 250 megawatts of cumulative rated generating
capacity from developers of bioenergy projects that commence
operation on or after June 1, 2013. The commission is required to
undertake specific steps to implement the bioenergy feed-in tariff
requirement.  
   This bill would additionally require electrical corporations by
December 1, 2016, to collectively procure, through financial
commitments of 5 years, their proportionate share of 125 megawatts of
cumulative rated generating capacity from bioenergy projects
commencing operation prior to June 1, 2013, that each produces its
generation using specified minimum percentages of certain types of
forest feedstock. The bill would require local publicly owned
electric utilities serving more than 100,000 customers to procure
their proportionate shares of 125 megawatts of cumulative rated
capacity from those kinds of bioenergy projects subject to terms of
at least 5 years. Because this bill would impose additional duties on
a local publicly owned electric utility, this bill would impose a
state-mandated local program.  
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.  
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, this bill would
impose a state-mandated local program.  
   (7) Existing law establishes the Department of Forestry and Fire
Protection in the Natural Resources Agency and requires the
department to coordinate programs of fire protection, fire
prevention, pest control, and forest and range maintenance and
enhancement.  
   This bill would require the Secretary of the Natural Resources
Agency to establish a working group on expanding wood product markets
that can utilize woody biomass, especially biomass removed from high
hazard zones, as determined by the department.  
   (4) This bill would appropriate $100,000 from the Greenhouse Gas
Reduction Fund to the Wildlife Conservation Board to provide
administrative support for projects and programs to improve forest
health and reduce greenhouse gas emissions.  
   (8) This bill would appropriate $1,400,000 from certain moneys
deposited in the Waste Discharge Permit Fund to the State Water
Resources Control Board to provide grants or contracts for the
development of planning, environmental, and design documents in
furtherance of projects for eliminating public health and safety
risks from wastewater, and agricultural and other drainage of
urbanized areas for tributaries to the Salton Sea.  
   (9) The bill would incorporate changes to Section 42999 of the
Public Resources Code proposed by this bill and SB 970, which would
become operative only if both bills are enacted and become effective
on or before January 1, 2017, and this bill is chaptered last. 

   (10) 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.  
   (5) 
    (11)  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.
State-mandated local program:  no   yes  .


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

  SECTION 1.  It is the intent of the Legislature to provide funding
for various projects that decrease wildfire risk and reduce
greenhouse gas emissions that are caused by wildfires in Tier 1 High
Hazard Zones identified by the Tree Mortality Task  Force,
however,   Force. However,  it is not the intent of
the Legislature that this act eliminate, alter, or otherwise
interfere with any activities implemented by the Tree Mortality Task
Force relating to forest improvement and health, including vegetation
management activities.
  SEC. 2.  Section 412 is added to the Food and Agricultural Code, to
read:
   412.  (a) The Legislature finds and declares that a diversity of
dairy methane management practices, including anaerobic digesters and
nondigester dairy methane management strategies, can effectively
reduce greenhouse gas emissions. Nondigester dairy methane management
strategies include, but are not limited to, scrape conversion, open
solar drying and composting of manure onsite, conversion of dairy
operations to pasture-based management, and solid separation
technologies.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "Conversion of dairy operations to pasture-based management"
means dairying systems where the dairy cows spend a portion of their
time grazing on fields in which some or all of the manure is
deposited and left in the field and decomposes aerobically, which
avoids methane emissions.
   (2) "Open solar drying and composting of manure onsite" means the
collection, storage, and drying of dairy manure in a nonliquid
environment.
   (3) "Scrape conversion" means the conversion of flush water lagoon
systems to solid-scrape or dry manure management practices,
including vacuum technologies for manure management.
   (4) "Solid separation technologies" means technologies designed to
separate liquid components of manure from minerals and organic
components, for the purposes of reducing methane emissions.
   SEC. 3.    Section 568 of the   Food and
Agricultural Code   is amended to read: 
   568.  (a) The secretary shall convene a  five-member
  nine   -   member  Scientific
Advisory Panel on Environmental Farming to advise  the secretary
on the implementation of the Healthy Soils Program established
pursuant to Section 569, and the State Water Efficiency and
Enhancement Program established by the department   from
moneys made available pursuant to Chapter 2 of the Statutes of 2014,
 and  to  assist federal, state, and local government
 agencies   agencies, as appropriate or
necessary,  on issues relating to  the impact of
agricultural practices on  air, water, and wildlife habitat to
do the following:
   (1) Review data on the impact that agriculture has on the
environment and recommend to  the secretary and  appropriate
state agencies  data that the panel approves as
scientifically valid. A state agency that receives data recommended
by the panel may adopt and incorporate the data into the appropriate
program. If a state agency does not utilize the data recommended by
the panel, it shall provide the panel with a written statement of
reasons for not utilizing the data. The reasons, at a minimum, shall
specify the scientific basis for not utilizing the data. The reasons
shall be provided within 180 days of receiving the data from the
panel.   the best available science on environmental
impacts of agriculture, as well as practices and policies based on
that information to advance the goals of this article, including
Section 569. 
   (2) Compile the net environmental impacts that agriculture creates
for the environment, identified pursuant to paragraph (1).
   (3) Research, review, and comment on data upon which proposed
environmental policies and regulatory programs are based to ensure
that the environmental impacts of agricultural activities are
accurately portrayed and to identify incentives that may be provided
to encourage agricultural practices with environmental benefits.
   (4) Assist government agencies to incorporate  benefits
  policies and practices  identified pursuant to
paragraph (1) into environmental regulatory programs.
   (b)  (1)    Members of the panel shall be highly
qualified and professionally active or engaged in the conduct of
scientific research. Of the members first appointed to the panel, two
shall serve for a term of two years and three shall serve for a term
of three years, as determined by lot. Thereafter, members shall be
appointed for a term of three years. The members shall be appointed
as follows: 
   (A) Five members shall be appointed by the secretary as follows:
 
   (1) Three members shall be appointed by the secretary. At least
one of these 
   (i)     At least two  members shall
have a minimum of five years of training and experience in the field
of agriculture and shall represent production agriculture. 
   (ii) At least one member shall have training and field experience
in on-farm management practices that reduce greenhouse gas emissions,
sequester carbon, or both.  
   (iii) At least one member shall be certified as a producer
pursuant to federal Organic Foods Production Act of 1990 (7 U.S.C.
Sec. 6501 et seq.).  
   (2) One member, who has  
   (iv) At least one member shall have technical expertise in
agricultural conservation planning and management. 
    (B)     Two members shall be appointed by
the Secretary for Environmental Protection. One shall have  a
minimum of five years of training and experience in the field of
human health or environmental science,  shall be appointed by
the Secretary of the Environmental Protection Agency.  
and one shall have expertise in greenhouse gas emissions reductions
practices related to agriculture.  
   (3) One member, who has 
    (C)     Two members who have  a
minimum of five years of training and experience in the field of
resource  management, shall be appointed by the Secretary of
the Resources Agency.   management shall be appointed by
the Secretary of the   Natural Resources Agency. One member
shall additionally have expertise in climate change adaptation and
climate change impacts in the agricultural sector.  
   (2) The secretary may also appoint, in consultation with the
panel, ex officio nonvoting members to the panel. 
   (c) The panel may establish ad hoc committees, which may include
 professionals or scientists,   professionals,
scientists, or representatives of nongovernmental entities,  to
assist it in performing its functions.
   (d) The panel shall be created and maintained with funds made
available from existing resources within the department to the extent
they are available. 
   (e) The State Air Resources Board shall consult with the secretary
and the panel, as appropriate, in developing the quantification
methods described in subdivision (b) of Section 16428.9 of the
Government Code as it relates to the demonstration and quantification
of on-farm greenhouse gas emissions reductions. 
   SEC. 4.    Section 569 is added to the  
Food and Agricultural Code   , to rea   d: 

   569.  (a) (1) The department, in consultation with the panel,
shall establish and oversee a Healthy Soils Program. The program
shall seek to optimize climate benefits while supporting the economic
viability of California agriculture by providing incentives,
including, but not limited to, loans, grants, research, and technical
assistance, and educational materials and outreach, to farmers whose
management practices contribute to healthy soils and result in net
long-term on-farm greenhouse gas benefits. The program may also
include the funding of on-farm demonstration projects that further
the goals of the program.
   (2) The department, in consultation with the panel, may determine
priorities for the program and give priority to projects that occur
in and benefit disadvantaged communities identified pursuant to
Section 39711 of the Health and Safety Code, show promise of being
replicable in other parts of the state, or provide environmental and
agronomic cobenefits, such as improved air and water quality,
improved crop yield, and reduced soil erosion.
   (3) The panel shall also advise the department on scientific
findings, program framework, guidelines, grower incentives, and
providing technical assistance.
   (4) If the department elects to fund on-farm demonstration
projects described in paragraph (1), the department, in consultation
with the panel, shall establish a technical advisory committee to
review on-farm demonstration project applications for scientific
validity and the proposed project's potential to achieve greenhouse
gas benefits.
   (b) The department shall implement the program and quantify
greenhouse gas emissions reductions in accordance with the funding
guidelines developed by the State Air Resources Board pursuant to
Section 39715 of the Health and Safety Code and the quantification
methods developed by the State Air Resources Board pursuant to
Section 16428.9 of the Government Code.
   (c) (1) The department may pursue public and private sources to
support the Healthy Soils Program.
   (2) To the extent funds are available, the department may provide
support to the program, including, but not limited to, technical
assistance, education, and outreach.
   (d) For purposes of this section, "panel" means the Scientific
Advisory Panel on Environmental Farming.
   (e) For purposes of the Healthy Soils Program, the following terms
have the following meanings:
   (1) "Greenhouse gas benefits" means greenhouse gas emissions
source reduction or carbon sequestration.
   (2) "Healthy soils" means soils that enhance their continuing
capacity to function as a biological system, increase soil organic
matter, improve soil structure and water- and nutrient-holding
capacity, and result in net long-term greenhouse gas benefits.
   (3) "On-farm demonstration projects" means projects that
incorporate farm management practices that result in greenhouse gas
benefits across all farming types with the intent to establish or
promote healthy soils. 
   SEC. 3.   SEC. 5.   Section 12802.10 is
added to the Government Code, to read:
   12802.10.  (a) For purposes of this section, the following terms
have the following meanings:
   (1) "Critically underserved community" has the same meaning as
defined in Section 5642 of the Public Resources Code.
   (2) "Disadvantaged community" means a community identified
pursuant to Section 39711 of the Health and Safety Code or pursuant
to Section 75005 of the Public Resources Code.
   (3) "Multiple benefits" includes, but is not limited to, a
decrease in air and water pollution or a reduction in the consumption
of natural resources and energy, including, but not limited to, the
establishment and enhancement of projects listed in subdivision (e).
   (4) "Secretary" means the Secretary of the Natural Resources
Agency.
   (b) To support the development of sustainable communities, the
secretary shall manage and award financial assistance, for the
preparation and implementation of green infrastructure projects that
reduce greenhouse gas emissions and provide multiple benefits, to any
of the following:
   (1) A city.
   (2) A county.
   (3) A special district.
   (4) A nonprofit organization.
   (5) An agency or entity formed pursuant to the Joint Exercise of
Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1) if at least one of the parties to the joint powers
agreement qualifies as an eligible applicant, notwithstanding the
Joint Exercise of Powers Act.
   (c) Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8, shall be available, upon appropriation
by the Legislature, for allocation by the secretary pursuant to this
section.
   (d) The secretary shall develop minimum requirements for awarding
moneys for eligible projects pursuant to this section. Those
requirements shall require a project, in addition to reducing
greenhouse gas emissions, to do at least one of the following:
   (1) Acquire, create, enhance, or expand community parks and green
spaces.
   (2) Use natural systems or systems that mimic natural systems to
achieve multiple benefits.
   (e) The multiple benefits of a project may include, but are not
limited to, the establishment or enhancement of at least two of the
following:
   (1) The greening of existing public lands and structures,
including schools.
   (2) Multiobjective stormwater projects, including the construction
of permeable surfaces and collection basins and barriers.
   (3) Green streets and alleys that integrate green infrastructure
elements into the street or alley design, including permeable
surfaces, bioswales, and trees.
   (4) Urban heat island mitigation and energy conservation efforts
through greening, including green roof projects.
   (5) Nonmotorized urban trails that provide safe routes for both
recreation and travel between residences, workplaces, commercial
centers, and schools.
   (6) Tree canopy.
   (7) Wetlands.
   (8) Neighborhood, city, regional, or county parks and open space.
   (9) Climate resilience and adaptation of urban areas that reduce
vulnerability to climate impacts and improve the ability of natural
systems to buffer the impacts of climate change.
   (10) Economic, social, and health benefits, including, but not
limited to, recreational opportunities, workforce education and
training, contracting, and job opportunities for disadvantaged
communities.
   (f) The secretary shall give additional consideration to awarding
moneys for a project pursuant to this section that meets at least two
of the following criteria:
   (1) Provides park or recreational benefits to a critically
underserved community or disadvantaged community.
   (2) Is proposed by a critically underserved community or
disadvantaged community.
   (3) Develops partnerships with local community organizations and
businesses in order to strengthen outreach to disadvantaged
communities, provides access to quality jobs for residents of
disadvantaged communities, or provides access to workforce education
and training.
   (4) Uses interagency cooperation and integration.
   (5) Uses existing public lands and facilitates the use of public
resources and investments, including schools.
   (g) The secretary shall allocate at least 75 percent of the moneys
available for  the  purposes of this section to projects
that are located in, and that provide benefits to, 
critically underserved communities or  disadvantaged
 communities, and shall allocate at least one-third of that
75 percent to disadvantaged communities, as identified pursuant to
Section 39711 of the Health and Safety Code. 
communities. 
   (h) In implementing this section, the secretary shall maximize the
expenditure of funds made available pursuant to the Statewide Park
Development and Community Revitalization Act of 2008 (Chapter 3.3
(commencing with Section 5640) of Division 5 of the Public Resources
Code).
   (i)  The secretary shall hold at least two public hearings to
gather public input on program development before establishing the
program guidelines and selection criteria.  The Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1)
does not apply to the development and adoption of guidelines and
selection criteria adopted pursuant to this section.
   SEC. 6.   Section 16428.86 is added to the  
Government Code   , to read:  
   16428.86.  (a) Prior to awarding grant funds from moneys made
available from the Greenhouse Gas Reduction Fund, the Department of
Food and Agriculture shall review the applicant's analysis
identifying potential adverse impacts of the proposed project,
including a net increase in criteria pollutants, toxic air
contaminants, and hazardous air pollutants; groundwater and surface
water impacts; and truck traffic and odor.
   (b) A project shall not receive funding unless the applicant has
demonstrated to the Department of Food and Agriculture that the
applicant has done all of the following:
   (1) Conducted outreach in areas that will potentially be adversely
impacted by the project.
   (2) Determined potential adverse impacts of the project.
   (3) Committed to measures to mitigate impacts.
   (c) In making awards, the Department of Food and Agriculture shall
prioritize projects based on the criteria pollutant emission
benefits achieved by the project.
   (d) A project funded by the Department of Food and Agriculture
that results in localized impacts in disadvantaged communities shall
not be considered to provide a benefit to disadvantaged communities
for the purposes of Section 39713 of the Health and Safety Code.

   SEC. 7.    Section 39712 of the   Health and
Safety Code   is amended to read: 
   39712.  (a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent with
the requirements of this chapter and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code.
   (2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5 (commencing
with Section 38500) and is consistent with law. If any expenditure of
moneys from the fund for any measure or project is determined by a
court to be inconsistent with law, the allocations for the remaining
measures or projects shall be severable and shall not be affected.
   (b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent with
Division 25.5 (commencing with Section 38500) and, where applicable
and to the extent feasible:
   (1) Maximize economic, environmental, and public health benefits
to the state.
   (2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
   (3) Complement efforts to improve air quality.
   (4) Direct investment toward the most disadvantaged communities
and households in the state.
   (5) Provide opportunities for businesses, public agencies, 
Native American tribes in the state,  nonprofits, and other
community institutions to participate in and benefit from statewide
efforts to reduce greenhouse gas emissions.
   (6) Lessen the impacts and effects of climate change on the state'
s communities, economy, and environment.
   (c) Moneys appropriated from the fund may be allocated, consistent
with subdivision (a), for the purpose of reducing greenhouse gas
emissions in this state through investments that may include, but are
not limited to, any of the following:
   (1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public
universities, state and local public buildings, and industrial and
manufacturing facilities.
   (2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
   (4) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (5) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
   (6) Funding to reduce greenhouse gas emissions through investments
in programs implemented by local and regional agencies, local and
regional collaboratives,  Native American tribes in the state,
 and nonprofit organizations coordinating with local
governments.
   (7) Funding research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded pursuant to this chapter.
   SEC. 4.   SEC. 8.   Section 44274.3 is
added to the Health and Safety Code, to read:
   44274.3.  (a) For purposes of this section, "low income" means a
resident of the state whose household income is less than or equal to
300 percent of the federal poverty level. 
   (b) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts, and the
public, shall adopt regulations for the purposes of the Clean
Vehicle Rebate Project, established as part of the Air Quality
Improvement Program, that do all of the following:  

   (1) Limit eligibility for the project based on income by providing
that, for all eligible vehicle types except fuel cell electric
vehicles, the gross annual income, as reported on the Internal
Revenue Service Form 1040, the Internal Revenue Service Form 1040A,
or the Internal Revenue Service Form 1040EZ, for a person to be
eligible for a rebate payment shall not exceed the following:
 
   (A) One hundred twenty-five thousand dollars ($125,000) for single
filers.  
   (B) One hundred seventy thousand dollars ($170,000) for
head-of-household filers.  
   (C) Two hundred fifty thousand dollars ($250,000) for joint
filers.  
   (2) For a low-income applicant, increase the rebate payment by
five hundred dollars ($500) for all eligible vehicle types. 

   (3) Include outreach to disadvantaged communities, as identified
pursuant to Section 39711, to increase consumer awareness. 

   (4) Prioritize rebate payments for low-income applicants.
 
   (b) Beginning November 1, 2016, under the Clean Vehicle Rebate
Project established as a part of the Air Quality Improvement Program,
the state board shall do the following:  
   (1) Only offer rebates to applicants who purchase an eligible
vehicle and have a gross annual income, as reported on the Internal
Revenue Service Form 1040, the Internal Revenue Service Form 1040A,
or the Internal Revenue Service Form 1040EZ, that does not exceed the
following:  
   (A) One hundred fifty thousand dollars ($150,000) for single
filers.  
   (B) Two hundred four thousand dollars ($204,000) for
head-of-household filers.  
   (C) Three hundred thousand dollars ($300,000) for joint filers.
 
   (2) Increase the rebate payment by five hundred dollars ($500) for
a low-income applicant for all eligible vehicle types.  
   (3) Only offer rebates for plug-in hybrids that have an electric
range of at least 20 miles.  
   (4) Provide outreach to low-income households to increase consumer
awareness of the rebate project.  
   (5) Prioritize rebate payments to low-income applicants. 

   (c) The income restrictions set forth in paragraph (1) of
subdivision (b) shall not apply to fuel cell vehicles.  
   (d) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 9.    Section 717 is added to the  
Public Resources Code  , to read:  
   717.  (a) The Secretary of the Natural Resources Agency shall
establish a working group on expanding wood product markets that can
utilize woody biomass, especially biomass that is removed from high
hazard zones, as determined by the department. These markets include,
but are not limited to, animal bedding, biochar, cross-laminated
timber, mulch, oriented strand board, pulp, post, shredding, and
veneer products.
   (b) At a minimum, the working group shall include members of the
working group on wood market products established under the
Proclamation of a State of Emergency on Tree Mortality declared by
the Governor on October 30, 2015.
   (c) By June 1, 2017, the working group shall submit
recommendations to the Legislature on actions that may be taken to
encourage the development of the wood product markets, including the
identification of potential pilot projects. 
   SEC. 5.   SEC. 10.   Section 4799.05 is
added to the Public Resources Code, to read:
   4799.05.  (a) The director may provide grants to, or enter into
contracts or other cooperative agreements with, entities, including,
but not limited to, private or nongovernmental entities, Native
American tribes, or local, state, and federal public agencies, for
the implementation and administration of projects and programs to
improve forest health and reduce greenhouse gas emissions.
   (b) Any project or program described in this section that is
funded with moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, shall comply with
all statutory and program requirements applicable to the use of
moneys from the fund.
                                (c) Moneys appropriated to the
department for  the purposes of this section  
landscape-scale projects  shall be allocated as follows:

   (1) Not less than five million dollars ($5,000,000) to the
Wildlife Conservation Board and other public conservancies with
public land management responsibilities for working forest
conservation easements. The department shall collaborate with the
board and those conservancies to facilitate the easement acquisition
process.  
   (2) Not less than two million five hundred thousand dollars
($2,500,000) for the collaborative use of managed ignition or
prescribed burns that are carried out either as part of a
landscape-scale project, as described in paragraph (3), or as an
individual project. The department shall collaborate with all
directly affected public agencies in the implementation of this
paragraph.  
   (3) For landscape-scale projects, as follows:  
   (A) (i) 
    (1)  To subsidize the removal of small diameter
material, especially surface fuels and ladder fuels, as well as dead
trees,  including the transportation of this material to
biomass plants or shredding facilities.   in order to
help develop markets for beneficial uses of the material, including,
but not limited to, animal bedding, biochar, cross-laminated timber,
mulch, oriented strandboard, pulp, post, shredding, and veneer
products.  
   (ii)  For purposes of this subparagraph, the State Air Resources
Board shall develop and adopt new carbon and particulate emission
standards for biomass plants that it considers to be the best
available technology.  
   (iii) A biomass plant may receive a subsidy pursuant to this
subparagraph until January 1, 2019. The plant may continue to receive
the subsidy until July 1, 2023, if the plant complies with the
applicable standards adopted by the state board pursuant to clause
(ii) within 18 months after adoption of the standards. 

   (B) 
    (2)  For multiple benefit  projects 
 projects,  such as tree thinning, carbon sequestration,
 biomass processing,  forest resilience, and
improved ecological outcome  projects.  
projects, including, but not limited to, restoring watershed health
and function and supporting biodiversity and wildlife adaptation to
climate change.  The department shall give grant funding
priority to landowners who practice uneven-age forest management 
with a resilient forest of diverse age, size, and species class
 within the boundaries of the project and whose activities are
conducted pursuant to an approved timber harvest plan, nonindustrial
timber harvest plan, or working forest management plan. An
application for a grant for a project under this subparagraph shall
include a description of how the proposed project will increase
average stem diameter and provide other site-specific improvement to
forest complexity, as demonstrated by the expansion of the variety of
tree age classes and species  covering  
persisting for  a period of at least 50 years. The department
shall also give funding priority to landowners who agree to long-term
forest management goals prescribed by the department. 
   (C) 
    (3)  For activities on National Forest lands to increase
tree stand heterogeneity, create forest openings of less than one
acre, and increase average tree stand diameter of residual trees. Any
grants provided under this subparagraph shall be approved by the
 department and the State Air Resources Board,  
department,  in collaboration with appropriate state 
agencies.   agencies, including the State Air Resources
Board. 
   SEC. 11.    Section 6009.1 of the   Public
Resources Code   is amended to read: 
   6009.1.  The Legislature finds and declares all of the following:
   (a) Granted public trust lands remain subject to the supervision
of the state and the state retains its duty to protect the public
interest in granted public trust lands.
   (b) The state acts both as the trustor and the representative of
the beneficiaries, who are all of the people of this state, with
regard to public trust lands, and a grantee of public trust lands,
including tidelands and submerged lands, acts as a trustee, with the
granted tidelands and submerged lands as the corpus of the trust.
   (c) A grantee may fulfill its fiduciary duties as trustee by
determining the application of each of the following duties, all of
which are applicable under common trust principles:
   (1) The duty of loyalty.
   (2) The duty of care.
   (3) The duty of full disclosure.
   (4) The duty to keep clear and adequate records and accounts.
   (5) The duty to administer the trust solely in the interest of the
beneficiaries.
   (6) The duty to act impartially in managing the trust property.
   (7) The duty to not use or deal with trust property for the
trustee's own profit or for any other purpose unconnected with the
trust, and to not take part in a transaction in which the trustee has
an interest adverse to the beneficiaries.
   (8) The duty to take reasonable steps under the circumstances to
take and keep control of and to preserve the trust property.
   (9) The duty to make the trust property productive under the
circumstances and in furtherance of the purposes of the trust.
   (10) The duty to keep the trust property separate from other
property not subject to the trust and to see that the trust property
is designated as property of the trust.
   (11) The duty to take reasonable steps to enforce claims that are
part of the trust property.
   (12) The duty to take reasonable steps to defend actions that may
result in a loss to the trust.
   (13) The duty to not delegate to others the performance of acts
that the trustee can reasonably be required to perform and to not
transfer the administration of the trust to a cotrustee. If a trustee
has properly delegated a matter to an agent, the trustee has a duty
to exercise direct supervision over the performance of the delegated
matter.
   (d) All duties endowed upon a trustee of state lands shall depend
upon the terms of the trust, and if there is no provision, express or
implied, within the terms of the trust, a statute, or a grant, the
trustee's duties shall be interpreted and determined by principles
and rules evolved by courts of equity with respect to common trust
principles. 
   (e) Notwithstanding any other law, and in addition to any other
rights and capacities of a trustee to act under law, a trustee of
public trust lands shall have the right to bring any action related
to its granted public trust lands, including an action to abate a
public nuisance, as a representative of the beneficiaries. 

   (e) 
    (f)  Common trust principles do not nullify an act of
the Legislature or modify its duty under the California Constitution
to do all things necessary to execute and administer the public
trust.
   SEC. 12.    Section 42997 of the   Public
Resources Code   is amended to read: 
   42997.  (a) The CalRecycle Greenhouse Gas Reduction Revolving Loan
Program is hereby established and shall be administered by the
department.
   (b) (1) The department shall expend the moneys transferred
pursuant to subdivision (c) of Section 42996, and any additional
moneys appropriated by the Legislature for the purposes of this
subdivision, to provide loans to reduce  greenhouse gas
emissions   the emissions of greenhouse gases  by
promoting in-state development of infrastructure  or  
other projects  to  reduce organic waste or  process
 organics   organic  and other recyclable
materials into new value-added products. The moneys shall be expended
consistent with the requirements of Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code and Chapter 4.1 (commencing with Section 39710)
of Part 2 of Division 26 of the Health and Safety Code.
   (2) For a loan made pursuant to this subdivision, the department
shall expend the moneys in the loan fund to provide loans to public
and private entities  located in the state  for 
in   -state infrastructure projects or other projects that
reduce the emissions of greenhouse gases by  any of the
following:
   (A) Organics composting.
   (B)  Anaerobic   Organics in-vessel 
digestion.
   (C) Recyclable material  manufacturing infrastructure
projects or other related activities that reduce greenhouse gas
emissions.   manufacturing.  
   (D) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

   (3) For purposes of this subdivision, eligible infrastructure
projects that reduce greenhouse gas emissions include, but are not
limited to, any of the following:
   (A) Capital investments in new facilities and increased throughput
at existing facilities for activities, such as converting windrow
composting to aerated-static-pile composting to use food waste as
feedstock.
   (B) Designing and constructing  anaerobic  
organics in-vessel  digestion facilities to produce 
biofuels and bioenergy.   products, such as biofuels,
bioenergy, and soil amendments. 
   (C) Designing and constructing facilities for processing
recyclable materials.
   (4) For a loan made pursuant to this subdivision, both of the
following apply:
   (A) The terms and conditions of an approved loan shall be
specified in a loan agreement and related documents between the
borrower and the department. These terms and conditions shall include
reporting requirements that include, but are not limited to,
reporting the information specified in Section 16428.9 of the
Government Code.
   (B) The department shall approve only those loan applications that
demonstrate the applicant's ability to repay the loan.
   (5) The department may establish additional requirements that it
determines to be necessary or useful to achieve the revolving loan
program's objectives, including, but not limited to, ensuring
repayment ability.
   SEC. 13.    Section 42999 of the   Public
Resources Code   is amended to read: 
   42999.  (a) Any additional funds appropriated by the Legislature
from the Greenhouse Gas Reduction Fund, established pursuant to
Section 16428.8 of the Government Code, to the department shall be
used to administer a grant program to provide financial assistance to
reduce  greenhouse gas emissions   the
emissions of greenhouse gases  by promoting in-state development
of  infrastructure to process organics  
infrastructure, food waste prevention, or other projects to reduce
organic waste   or process organic  and other
recyclable materials into new value-added products. The moneys shall
be expended consistent with the requirements of Article 9.7
(commencing with Section 16428.8) of Chapter 2 of Part 2 of Division
4 of Title 2 of the Government Code and Chapter 4.1 (commencing with
Section 39710) of Part 2 of Division 26 of the Health and Safety
Code.
   (b)  For a grant made pursuant to this section, the
  The  department shall expend the moneys to
provide grants, incentive payments, contracts, or other funding
mechanisms to public and private entities  located in the
state  for  in-state   infrastructure projects
or other projects that reduce the emissions of greenhouse gases by
 any of the following:
   (1) Organics composting.
   (2)  Anaerobic   Organics in-vessel 
digestion.
   (3) Recyclable material  manufacturing infrastructure
projects or other related activities that reduce greenhouse gas
emissions.   manufacturing.  
   (4) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

   (c) For purposes of this section, eligible infrastructure projects
that reduce greenhouse gas emissions include, but are not limited
to, any of the following:
   (1) Capital investments in new facilities and increased throughput
at existing facilities for activities, such as converting windrow
composting to aerated-static-pile composting to use food waste as
feedstock.
   (2) Designing and constructing  anaerobic  
organics in-vessel  digestion facilities to produce 
biofuels and bioenergy.   products, such as biofuels,
bioenergy, and soil amendments. 
   (3) Designing and constructing facilities for processing
recyclable materials.
   SEC. 13.5.    Section 42999 of the   Public
Resources Code   is amended to read: 
   42999.  (a) Any additional funds appropriated by the Legislature
from the Greenhouse Gas Reduction Fund, established pursuant to
Section 16428.8 of the Government Code, to the department shall be
used to administer a grant program to provide financial assistance to
reduce  greenhouse gas emissions   the
emissions of greenhouse gases  by promoting in-state development
of  infrastructure to process organics  
infrastructure, food waste prevention, or other projects to reduce
organic waste  or process organic  and other recyclable
materials into  new   new,  value-added
products. The moneys shall be expended consistent with the
requirements of Article 9.7 (commencing with Section 16428.8) of
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code
and Chapter 4.1 (commencing with Section 39710) of Part 2 of Division
26 of the Health and Safety Code.
   (b)  For a grant made pursuant to   From
moneys appropriated for purposes of    this section,
the department shall  expend the moneys to  provide
grants, incentive payments, contracts, or other funding mechanisms to
public and private entities  located in the state 
for  in-state infrastructure projects or other projects that
reduce the emissions of greenhouse gases by  any of the
following:
   (1) Organics composting.
   (2)  Anaerobic   Organics in-vessel 
digestion.
   (3) Recyclable material  manufacturing infrastructure
projects or other related activities that reduce greenhouse gas
emissions.   manufacturing.  
   (4) Activities that expand and improve waste diversion and
recycling, including, but not limited to, food waste prevention.

   (c) For purposes of this section, eligible infrastructure projects
that reduce greenhouse gas emissions include, but are not limited
to, any of the following:
   (1) Capital investments in new facilities and increased throughput
at existing facilities for activities, such as converting windrow
composting to aerated-static-pile composting to use food waste as
feedstock.
   (2) Designing and constructing  anaerobic  
organics in-vessel  digestion facilities to produce 
biofuels and bioenergy.   products, such as biofuels,
bioenergy, and soil amendments. 
   (3) Designing and constructing facilities for processing
recyclable materials. 
   (d) In awarding a grant for organics composting or anaerobic
digestion pursuant to this section, the department shall consider all
of the following:  
   (1) The amount of greenhouse gas emissions reductions that may
result from the project.  
   (2) The amount of organic material that may be diverted from
landfills as a result of the project.  
   (3) If, and how, the project may benefit disadvantaged
communities.  
   (4) For a grant awarded for an anaerobic digestion project, if,
and how, the project maximizes resource recovery, including the
production of clean energy or low-carbon or carbon negative
transportation fuels.  
   (5) Project readiness and permitting that the project may require.
 
   (6) Air and water quality benefits that the project may provide.
 
   (e) To the degree that funds are available, the department may
provide larger grant awards for large-scale regional integrated
projects that provide cost-effective organic waste diversion and
maximize environmental benefits. 
   SEC. 14.    Section 399.20.3 is added to the 
 Public Utilities Code   , to read:  
   399.20.3.  (a) For purposes of this section, the following
definitions apply:
   (1) "Bioenergy" has the same meaning as set forth in paragraph (4)
of subdivision (f) of Section 399.20.
   (2) "Tier 1 high hazard zone" includes areas where wildlife and
falling trees threaten power lines, roads, and other evacuation
corridors, critical community infrastructure, or other existing
structures, as designated by the Department of Forestry and Fire
Protection pursuant to the Proclamation of a State of Emergency on
Tree Mortality declared by the Governor on October 30, 2015.
   (3) "Tier 2 high hazard zone" includes watersheds that have
significant tree mortality combined with community and natural
resource assets, as designated by the Department of Forestry and Fire
Protection pursuant to the Proclamation of a State of Emergency on
Tree Mortality declared by the Governor on October 30, 2015.
   (b) In addition to the requirements of subdivision (f) of Section
399.20, by December 1, 2016, electrical corporations shall
collectively procure, through financial commitments of five years,
their proportionate share of 125 megawatts of cumulative rated
generating capacity from existing bioenergy projects that commenced
operations prior to June 1, 2013. At least 80 percent of the
feedstock of an eligible facility, on an annual basis, shall be a
byproduct of sustainable forestry management, which includes removal
of dead and dying trees from Tier 1 and Tier 2 high hazard zones and
is not from lands that have been clear cut. At least 60 percent of
this feedstock shall be from Tier 1 and Tier 2 high hazard zones.
   (c) (1) For each electrical corporation, the commission shall
allocate its proportionate share of the 125 megawatts based on the
ratio of the electrical corporation's peak demand to the total
statewide peak demand.
   (2) Procurement by an electrical corporation of generation
capacity pursuant to a contract under the commission's Resolution
E-4770 that is in excess of the requirement of that electrical
corporation under that resolution shall count towards meeting the
electrical corporation's proportionate share allocated pursuant to
paragraph (1).
   (d) The commission may direct each electrical corporation to
develop standard contract terms and conditions that reflect the
operational characteristics of the bioenergy projects and to provide
a streamlined contracting process or may require electrical
corporations to use the mechanism established pursuant to the
commission's Resolution E-4770 to meet the requirements of
subdivision (c). The procurement pursuant to the developed standard
contract shall occur on an expedited basis due to the Proclamation of
a State of Emergency on Tree Mortality declared by the Governor on
October 30, 2015.
   (e) A local publicly owned electric utility serving more than
100,000 customers shall procure its proportionate share, based on the
ratio of the utility's peak demand to the total statewide peak
demand, of 125 megawatts of cumulative rated capacity from existing
bioenergy projects described in subdivision (b) subject to terms of
at least five years.
   (f) The commission shall ensure that the costs of any contract
procured by an electrical corporation to satisfy the requirements of
this section are recoverable from all customers on a nonbypassable
basis.
   (g) The Procurement Review Group within the commission shall
advise the commission on the cost of the generation procured pursuant
to this section and its impact on ratepayers. 
   SEC. 6.   SEC. 15.   The State Air
Resources Board, in consultation with the Natural Resources Agency
and the Department of Forestry and Fire Protection, shall do both of
the following:
   (a) No later than  January 1, 2017,  
December 30, 2018,  complete a standardized greenhouse gas
emissions inventory for natural and working lands.
   (b) (1) No later than  January 1,   December
30,  2018, complete a standardized accounting framework for
forests that supports statewide greenhouse gas emissions reduction
goals and investments of moneys from the Greenhouse Gas Reduction
Fund, established pursuant to Section 16428.8 of the Government Code.

   (2) The accounting framework shall include a statewide baseline
projection of business-as-usual emissions and carbon sequestration
and shall consider state, regional, and project scales of accounting
based on forest type and other ecological indicators. 
  SEC. 7.    The sum of one hundred thousand dollars
($100,000) is hereby appropriated from the Greenhouse Gas Reduction
Fund, created pursuant to Section 16428.8 of the Government Code, to
the Wildlife Conservation Board to provide administrative support for
projects and programs to improve forest health and reduce greenhouse
gas emissions. 
   SEC. 16.    Notwithstanding subdivision (c) of
Section 13264 of, subdivision (f) of Section 13268 of, subdivision
(k) of Section 13350 of, and paragraph (2) of subdivision (n) of
Section 13385 of, the Water Code, one million four hundred thousand
dollars ($1,400,000) is hereby appropriated in fiscal year 2016-17 to
the State Water Resources Control Board from the moneys deposited
into, and separately accounted for in, the Waste Discharge Permit
Fund pursuant to the balance of penalty revenues generated by the
imposition of liabilities pursuant to subdivision (c) of Section
13264 of, subdivision (f) of Section 13268 of,   subdivision
(k) of Section 13350 of, and paragraph (2) of subdivision (n) of
Section 13385 of, the Water Code. The funds appropriated in this
section are available to the State Water Resources Control Board to
provide grants or contracts for the development of planning,
environmental, and design documents in furtherance of projects for
eliminating public health and safety risks from wastewater, and
agricultural and other drainage of urbanized areas for tributaries to
the Salton Sea. 
   SEC. 17.    Section 13.5 of this bill incorporates
amendments to Section 42999 of the Public Resources Code proposed by
both this bill and Senate Bill 970. It shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2017, but this bill becomes operative first, (2) each bill amends
Section 42999 of the Public Resources Code, and (3) this bill is
enacted after Senate Bill 970, in which case Section 42999 of the
Public Resources Code, as amended by Section 13 of this bill, shall
remain operative only until the operative date of Senate Bill 970, at
which time Section 13.5 of this bill shall become operative. 
   SEC. 18.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act or
because costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution. 
   SEC. 8.   SEC. 19.   This act is a bill
providing for appropriations related to the Budget Bill within the
meaning of subdivision (e) of Section 12 of Article IV of the
California Constitution, has been identified as related to the budget
in the Budget Bill, and shall take effect immediately.