Bill Text: CA SB535 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: California Global Warming Solutions Act of 2006:
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2012-09-30 - Chaptered by Secretary of State. Chapter 830, Statutes of 2012. [SB535 Detail]
Download: California-2011-SB535-Amended.html
Bill Title: California Global Warming Solutions Act of 2006:
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2012-09-30 - Chaptered by Secretary of State. Chapter 830, Statutes of 2012. [SB535 Detail]
Download: California-2011-SB535-Amended.html
BILL NUMBER: SB 535 AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 21, 2011 AMENDED IN SENATE MAY 31, 2011 AMENDED IN SENATE MARCH 24, 2011 INTRODUCED BY Senator De León ( Coauthor: Senator Pavley ) ( Coauthors: Assembly Members Davis and Lara ) FEBRUARY 17, 2011 An act to add Part 5 (commencing with Section 71420) to Division 34 of the Public Resources Code, relating to climate change. LEGISLATIVE COUNSEL'S DIGEST SB 535, as amended, De León. California Communities Healthy Air Revitalization Trust. 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. The act authorizes the state board to include use of market-based compliance mechanisms. 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 establish the California Communities Healthy Air Revitalization Trust in the State Treasury and would require a minimum of 10% of specified revenues generated for the state each year from the act to be deposited into that trust . The moneys in the trust would be used, upon appropriation by the Legislature, in the most impacted and disadvantaged communities, as defined, to fund programs or projects that reduce greenhouse gas emissions or mitigate direct health or environmental impacts of climate change through competitive grants, loans, or other funding mechanisms. The bill would require the State Air Resources Board to administer moneys appropriated from the trust, establish criteria and procedures, convene a review panel, and meet other specified requirements in connection with implementation. 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) California embraced the challenge posed by climate change with the passage of the California Global Warming Solutions Act in 2006, enacted as Chapter 488 of the Statutes of 2006 (Assembly Bill 32). Assembly Bill 32 recognizes the disproportionate impacts climate change will have on disadvantaged and low-income communities in California, which already face disproportionate impacts from substandard air quality in the form of higher rates of respiratory illness, hospitalizations, and premature death. (b) Assembly Bill 32 recognizes the potential vulnerability of California's low-income and disadvantaged population to efforts to reduce greenhouse gas emissions and requires that activities taken to comply with Assembly Bill 32 do not disproportionately impact those communities. (c) Assembly Bill 32 recognizes the public health impacts of climate change and requires that activities taken to comply with Assembly Bill 32 consider the localized and cumulative impacts in communities that are already adversely impacted by air pollution. (d) Assembly Bill 32 requires that public and private investment be directed toward the most disadvantaged communities in California to provide an opportunity for small businesses, schools, affordable housing associations, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions. (e) Assembly Bill 32 does not provide a definition, however, for California's most impacted and disadvantaged communities, nor direction on how the state will mitigate adverse impacts from climate change in these communities, nor direction on how the state will ensure these communities can participate in and receive investments from activities taken pursuant to Assembly Bill 32 and not experience disproportionate impacts. (f) Since the passage of Assembly Bill 32, the State Air Resources Board and other state agencies have adopted various regulatory programs to enable California to achieve Assembly Bill 32's greenhouse gas emissions reduction target. The people of California voiced their strong support for continued implementation of Assembly Bill 32 with the defeat of Proposition 23 in November 2010. (g) It is the intent of the Legislature that this act continue California's implementation of Assembly Bill 32 by directing resources to the state's most impacted and disadvantaged communities to ensure activities taken pursuant to that authority will provide economic and health benefits to these communities as originally intended. (h) It is the intent of the Legislature that funds collected pursuant to this act continue California's implementation of Assembly Bill 32 by achieving additional emission reductions and mitigating direct health impacts on California's most impacted and disadvantaged communities. SEC. 2. Part 5 (commencing with Section 71420) is added to Division 34 of the Public Resources Code, to read: PART 5. CALIFORNIA COMMUNITIES HEALTHY AIR REVITALIZATION TRUST 71420. This part shall be known, and may be cited, as the California Communities Healthy Air Revitalization Trust (Cal CHART). 71421. As used in this part, the following terms have the following meanings: (a) "Trust" means the California Communities Healthy Air Revitalization Trust. (b) (1) "Most impacted and disadvantaged communities" means either those areas having the highest 10 percent air pollution exposure and socioeconomic vulnerability within an air basin that does not meet one or more national or state ambient air quality standards, or those areas having the highest 10 percent socioeconomic vulnerability to direct health or environmental impacts of climate change. (2) The evaluation criteria for air pollution exposure shall include, at a minimum, criteria and toxic air pollution levels, proximity to sources of air pollution, and sensitive populations. (3) The evaluation criteria for socioeconomic vulnerability shall include, to the extent feasible, multiple indicators, including, but not limited to, poverty level, percent home ownership, unemployment level, and educational attainment. 71422. (a) The California Communities Healthy Air Revitalization Trust is established in the State Treasury. Not less than 10 percent of the revenues deposited in the Air Pollution Control Fund pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), other than revenues collected for administrative purposes pursuant to Section 38597 of the Health and Safety Code, shall be allocated to the trust. Moneys in the trust are available, upon appropriation by the Legislature , for the purposes described in this part. (b) (1) Moneys allocated to the trust shall be used solely in the most impacted and disadvantaged communities in California. (2) Moneys allocated to the trust shall be used to fund programs or projects that reduce greenhouse gas emissions or mitigate direct health impacts of climate change, through competitive grants, loans, or other funding mechanisms. (3) To the extent allowed by law, and consistent with paragraph (2), moneys allocated to the trust may be appropriated for green collar employment or training opportunities for the most impacted and disadvantaged communities. (4) Up to 5 percent of the moneys allocated to the trust may be used for purposes of administering this part, upon appropriation by the Legislature. (c) To the extent that funds allocated to the trust are provided to existing programs, those funds shall be used to supplement, not supplant, those programs to meet the goals of this part. 71423. (a) The State Air Resources Board shall administer moneys appropriated from the trust and shall establish criteria and procedures for the implementation of this part. The State Air Resources Board shall begin implementation of the program created pursuant to this part within 90 days of finding that more than five million dollars ($5,000,000) has been deposited in the trust. (b) The State Air Resources Board, following an open and public process, shall develop and adopt a report that describes the support structure and framework for the implementation of this part, the types of programs and projects to be funded under this part, the selection and oversight process for the programs and projects to be funded, and the eligibility criteria. The report shall be made available to the public on the State Air Resources Board's Internet Web site. (c) Upon implementation of the program, and by every third January 1 thereafter, the State Air Resources Board, in consultation with the Climate Action Team, in an open process, shall develop and adopt the list of the most impacted and disadvantaged communities in California and triennial plans describing the specific type of programs and projects to be solicited for funding during the three-year period. The plans and lists shall be made public on the State Air ResourcesBoardBoard's Internet Web site. (d) (1) By September 1, 2015, and every three years thereafter, the State Air Resources Board, in consultation with the Climate Action Team, shall submit a report to the Legislature describing the activities taken during the preceding three-year period pursuant to this part, including the amount and geographic distribution of programs and projects funded, a description of each program and project funded, and the manner in which those programs and projects and the plan adopted pursuant to subdivision (c) furthered the goals of the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code). The report shall be made public on the State Air Resources Board's Internet Web site. (2) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (e) (1) The adoption of triennial plans and identification of the most impacted and disadvantaged communities pursuant to subdivision (c) and the expenditure of moneys for individual programs or projects shall be approved or adopted with the approval of no fewer than four members of the review panel described in Section 71424. (2) If four panel members do not approve an action as required by paragraph (1), the State Air Resources Board shall resubmit the action, revised as appropriate, to the panel for reconsideration, within 90 days of the disapproval. 71424. (a) (1) The State Air Resources Board shall convene a review panel to make recommendations, approve programs and projects funded under this part, and review the development of policies, plans, and programs as they relate to this part. (2) The panel shall have seven members meeting the following requirements: (A) Each member shall have demonstrated expertise, and a minimum of seven years of working experience, in the areas of air pollution, public health, energy efficiency, transportation, economics, or running a small business. (B) Three members shall have demonstrated knowledge and experience in advancing community interests in the area of environmental protection for at least seven years. (3) The State Air Resources Board shall solicit nominations to serve on the panel in an open and public process, and shall appoint panel members in consultation with the Senate pro Tempore and the Speaker of the Assembly. A member of the panel shall serve for a three-year term and may be reappointed for no more than a second three-year term. For the initial appointments pursuant to this section, the State Air Resources Board shall appoint panel members for two- or three-year terms to ensure staggered terms and continuity of the panel. (b) The panel shall convene every three months to review, make recommendations, and approve projects or programs funded pursuant to this part. The panel shall convene annually to review the support structure and framework for the implementation of this part, the list of the most impacted and disadvantaged communities in California, and the selection and eligibility criteria for the programs and projects to be funded under this part.71424.71425. (a) Except as otherwise provided in subdivision (b), the State Air Resources Board shall only approve a program or project for funding after determining, based on the available evidence, that the use of moneys for that program or project is 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 and reaffirmed in California Farm Bureau Federation v. State Water Resources Control Bd. (2011) 51 Cal.4th 421. (b) The requirements of subdivision (a) do not apply to the use of penalty moneys, if those moneys are segregated from fee moneys.71425.71425.5 Nothing in this part shall be construed as resulting in any taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution.