BILL NUMBER: AB 2404	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2012
	AMENDED IN ASSEMBLY  APRIL 11, 2012

INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 24, 2012

   An act to add Part 8 (commencing with Section 38600) to Division
25.5 of the Health and Safety Code, relating to greenhouse gases.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2404, as amended, Fuentes. California Global Warming Solutions
Act of 2006: Local Emission Reduction Program.
   The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and to
monitor and enforce compliance with the reporting and verification
program, and requires the state board to adopt a statewide greenhouse
gas emissions limit equivalent to the statewide greenhouse gas
emissions level in 1990 to be achieved by 2020. The act requires the
state board to adopt rules and regulations in an open public process
to achieve the maximum technologically feasible and cost-effective
greenhouse gas emission reductions and authorizes the state board to
use market-based compliance mechanisms to achieve these ends. The act
authorizes the state board to adopt a schedule of fees to be paid by
the sources of greenhouse gas emissions regulated pursuant to the
act, and requires the revenues collected pursuant to that fee to be
deposited into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for the purposes of carrying out
the act.
   This bill would create the Local Emission Reduction Program and
would  require   permit  specified moneys
collected  under the   pursuant to 
market-based compliance mechanisms  to  be available, upon
appropriation by the Legislature, for  award under the
program to specified local governmental entities for specified
purposes by the state board   purposes of carrying out
the Global Warming Solutions Act of 2006  . The bill would
require the state board, in coordination with  the Strategic
Growth Council and  other state  agencies  
entities  , as appropriate, to  develop standards and
guidelines to ensure the funded projects maximize the funds
appropriated, provide environmental and economic benefits, and do not
conflict with the act   provide local assistance grants
to eligible recipients for the purposes of developing and
implementing multibenefit greenhouse gas emission reduction projects
in this state. The bill would authorize the Strategic Growth Council
to award moneys under the program to a county, or counties, that
adopts a local greenhouse gas emission reduction program, as
certified by the state board, that achieves specified purposes 
.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The reduction of greenhouse gas emissions is critical to
public health, safety, the economy, and the natural environment that
 California  residents rely on.
   (b) State investments in local and regional greenhouse gas
emission reduction projects  in this state  help local
communities thrive, support the state's emission-reduction and
clean-energy targets, lower the statewide unemployment rate, and spur
new job growth.
   (c) Incentivizing local governments to plan and implement their
own greenhouse gas emission reduction efforts will assist the state
to reach its emission-reduction targets faster and more efficiently.
   (d) Local and regional governments that partner with
not-for-profit entities and community groups can identify, plan, and
implement innovative community-scale emission-reduction initiatives
and projects that utilities and other regulated entities may not
identify or participate in.
   (e) Local greenhouse gas emission reduction initiatives best
recognize the particular reduction opportunities at the local level
and provide an opportunity to enhance the environment and economy of
local and regional places through multibenefit projects.
   (f) Local governments are well-suited to coordinate and aggregate
micro-, small-, community-, and regional-scale projects that will
help the state reach its environmental targets while incentivizing
investments and job growth at the local level.
   (g) It is the intent of the Legislature to promote investments in
coordinated and aggregated local and regional greenhouse gas emission
reduction projects.
  SEC. 2.  Part 8 (commencing with Section 38600) is added to
Division 25.5 of the Health and Safety Code, to read:

      PART 8.  Local Emission Reduction Program


   38600.  (a) The Local Emission Reduction Program is hereby
created.
   (b) Moneys collected pursuant to Part 5, excluding penalties and
fines,  shall  may  be available, upon
appropriation by the Legislature, for purposes of carrying out this
 division   part  . 
   (c) The state board shall award the moneys appropriated to the
Local Emission Reduction Program to cities, counties, city and county
governments, metropolitan planning organizations, special districts,
and joint powers authorities for measures and programs that are
consistent with a locally adopted greenhouse gas emission reduction
plan that includes and maximizes viable partnerships with other local
governments, Native American tribes, not-for-profit entities,
regional bodies, California Conservation Corps, state-certified local
conservation corps, and local Youth Build programs. The plan shall
identify and maximize all of the following:  
   (1) Micro-, small-, community-, and regional-scale greenhouse gas
emission reduction opportunities, including sequestration. 

   (2) Opportunities to change or update existing local and regional
plans, policies, or programs to achieve greenhouse gas emission
reductions.  
   (3) Opportunities to achieve greenhouse gas emission reductions in
ways that increase adaptability or resiliency to extreme weather
events.  
   (4) Opportunities to achieve greenhouse gas emission reductions in
ways that create local job training and job creation benefits.
 
   (5) Opportunities to achieve greenhouse gas emission reductions in
ways that decrease air or water pollution.  
   (6) Opportunities to achieve greenhouse gas emission reductions in
ways that reduce the consumption of natural resources or energy.
 
   (7) Opportunities to achieve greenhouse gas emission reductions in
ways that increase localized energy resources.  
   (8) Opportunities to achieve greenhouse gas emission reductions in
ways that increase the reliability of local water supplies.
 
   (9) Opportunities to achieve greenhouse gas emission reductions in
ways that reduce or avoid vehicle miles traveled.  

   (10) Opportunities to coordinate and aggregate greenhouse gas
emission reduction projects or programs.  
   (11) Opportunities to achieve greenhouse gas emission reductions
in ways that reduce or avoid costs to the state or local governments.
 
   (c) (1) The state board, in coordination with the Strategic Growth
Council and other state entities, as appropriate, shall establish
the Local Emission Reduction Program to provide local assistance
grants to eligible recipients for the purposes of developing and
implementing multibenefit greenhouse gas emission reduction projects
in this state.  
   (2) The Strategic Growth Council shall administer the Local
Emission Reduction Program.  
   (d) An eligible recipient under the Local Emission Reduction
Program shall be any county, or combination of counties, that adopts
a local greenhouse gas emission reduction plan certified by the state
board and that enters into a memorandum of understanding for the
purposes of developing and implementing projects consistent with this
division with cities in its jurisdiction as well as any state
conservancies, metropolitan planning organizations, regional climate
protection authorities, special districts, air pollution control and
air quality management districts, or joint powers authorities that
many choose to participate.  
   (e) A local greenhouse gas emission reduction plan is a
comprehensive plan for emission reduction projects in a local or
regional area that identifies and maximizes any viable partnerships
with Native American tribes, not-for-profit entities, regional
collaboratives, California Conservation Corps, state-certified local
conservation corps, and local Youth Build programs. A local
greenhouse gas emission reduction plan shall seek to achieve one or
more of the following:  
   (1) The development of micro-, small-, community-, and
regional-scale greenhouse gas emission reduction or sequestration
projects.  
   (2) The implementation of existing plans that reduce greenhouse
gas emissions.  
   (3) The achievement of greenhouse gas emission reductions in ways
that increase adaptability or resiliency to extreme weather events
and other climate change impacts.  
   (4) The conservation of energy, the promotion of energy
efficiency, or the increase of localized clean energy resources.
 
   (5) The protection of natural resources and the conservation of
benefits or greenhouse gas mitigation, including urban and community
greening, sequestration, green print implementation, agricultural
preservation, natural community conservation plan development and
implementation, and open-space protection.  
   (f) The Strategic Growth Council shall award local assistance
grants on a competitive basis based on the potential for greenhouse
gas emission reductions, including sequestration, with consideration
also given to the ability of a project or projects to provide any of
the following:  
   (1) Create local job training and job creation benefits. 

   (2) Decrease air or water pollution.  
   (3) Reduce the consumption of natural resources or energy. 

   (4) Increase the reliability of local water supplies.  
   (5) Distribute fair and equitably Local Emission Reduction Program
funding throughout the state.  
   (g) The Strategic Growth Council shall ensure that the Local
Emission Reduction Program provides opportunities for both small and
large population participants.  
   (d) 
    (h)     (1)  Any  local 
greenhouse gas emission reduction plan adopted for purposes of
subdivision  (c)   (d)  shall provide for
public notice and at least one opportunity for public input. 
   (2) If the adoption of a local greenhouse gas emission reduction
plan pursuant to subdivision (d) is subject to the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) or Section 65080 of the
Government Code, the procedures in those sections shall govern the
adoption of a local greenhouse gas emission reduction plan. 
   38601.  The state board, in coordination with other state
agencies, as appropriate, shall develop standards and guidelines to
ensure projects funded pursuant to this part maximize funds
appropriated, provide environmental and economic benefits, and do not
conflict with this division.
   38602.  The state board shall  approve funding for a
measure or program, awarded   certify a local greenhouse
gas emission reduction plan adopted  pursuant to this part,
only after determining, based on the available evidence, that
 the use of moneys for that measure or program is 
 the projects identified are  consistent with the
requirements for the use of moneys derived from valid regulatory
fees, as established by the California Supreme Court in Sinclair
Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866.