Bill Text: CA SB64 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California Global Warming Solutions Act of 2006: market-based compliance mechanisms: Clean Technology

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-08-14 - Set, second hearing. Held under submission. [SB64 Detail]

Download: California-2013-SB64-Amended.html

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BILL NUMBER: SB 64	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 18, 2014
	AMENDED IN ASSEMBLY  JUNE 14, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  APRIL 23, 2013
	AMENDED IN SENATE  APRIL 9, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Corbett

                        JANUARY 10, 2013

   An act to add Section 16428.96 to the Government Code, relating to
greenhouse gases.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 64, as amended, Corbett. California Global Warming Solutions
Act of 2006: market-based compliance mechanisms: Clean Technology
 Investment   Innovation  Account. 
   Existing law establishes the Governor's Office of Business and
Economic Development and sets forth its powers and duties as the
Governor's lead entity for economic strategy and the marketing of
California on issues relating to business development, private sector
investment, and economic growth. The office makes recommendations to
the Governor and the Legislature regarding policies, programs, and
actions to advance statewide economic goals. 
   The California Global Warming Solutions Act of 2006, hereafter the
Global Warming Solutions Act, 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 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 by the Legislature. 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 permits moneys from the fund be
allocated for the research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded under the  California  Global Warming
Solutions Act  of 2006  .
   This bill would create the Clean Technology  Investment
  Innovation  Account within the Greenhouse Gas
Reduction Fund. The bill would require the Legislature to annually
appropriate moneys from the Greenhouse Gas Reduction Fund or other
funds to the Clean Technology  Investment  
Innovation  Account in the Budget Act. The bill would make the
moneys in the Clean Technology  Investment  
Innovation  Account available to the  state board
  Governor's Office of Business and Economic Development
 for the purposes of  providing grants to nonprofit
public benefit corporations and regional technology alliances to
design and implement programs that accelerate the development,
demonstration, and deployment by companies and entrepreneurs of
transformative technologies that would reduce or have the potential
to reduce greenhouse gas emissions and foster job creation in the
state   evaluating the efficacy of a new technology or
product to potentially reduce greenhouse gas emissions, providing
grants for technologies or products that have been evaluated and
confirmed to have the potential to reduce greenhouse gas emissions,
and providing grants to entities that operate programs that target
technologies or products that have the potential to reduce greenhouse
gas emissions  , as specified.  The bill would require the
office to establish a Science and Business Review Committee, with a
prescribed membership, to provide programmatic and technical
expertise to the office. 
   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.    Section 16428.96 is added to the 
 Government Code  , to read:  
   16428.96.  (a) There is hereby created the Clean Technology
Innovation Account within the Greenhouse Gas Reduction Fund,
established pursuant to Section 16428.8. As part of the annual Budget
Act, the Legislature shall appropriate moneys from the Greenhouse
Gas Reduction Fund or other funds to the Clean Technology Innovation
Account.
   (b) Funds in the Clean Technology Innovation Account shall, upon
appropriation by the Legislature, be expended by the Governor's
Office of Business and Economic Development for the following
purposes:
   (1) To evaluate the efficacy of a new technology or product to
potentially reduce greenhouse gas emissions and quantify the
potential emissions reduction on a per unit basis. The office shall
develop criteria for the evaluation of greenhouse gas emissions and
efficacy programs, and the development of appropriate metrics, in
consultation with the Science and Business Review Committee,
established pursuant to subdivision (c). The office shall contract
with the University of California, the California State University,
other academic institutions, federal laboratories, nonprofit
organizations, or any combination thereof, with the necessary
expertise to perform these evaluations.
   (2) To provide grants for technologies or products that have been
evaluated and confirmed to have the potential to reduce greenhouse
gas emissions pursuant to paragraph (1) and that require financial
assistance for commercialization. The Science and Business Review
Committee established pursuant to subdivision (c) shall assist the
office to establish priorities for funding, including, but not
limited to, funding technologies or products with the highest
quantified per unit emissions reduction, with the greatest likelihood
of early or widespread adoption, or both, or providing a strategic
contribution to achieving the state's greenhouse gas reduction goals.
The office shall also consider the commercial viability of the
product or technology in arriving at its funding decisions. Funding
shall be used for activities occurring in California, including, but
not limited to, manufacturing.
   (3) (A) To provide grants on a competitive basis to entities that
operate programs that specifically target technologies or products
that have the potential to reduce greenhouse gas emissions. Eligible
entities shall be located in California and shall assist
California-based start-ups and entrepreneurs, including nonprofit
incubators and accelerators, regional technology alliances,
technology transfer and commercialization programs, or other public
or private consortiums. Nonprofit organizations shall be qualified
under Section 501(c)(3) of the Internal Revenue Code. Not more than
20 percent of the funds in the account shall be used for the purposes
described in this paragraph.
   (B) Funds may be used for activities that include, but are not
limited to, all of the following:
   (i) Entrepreneurial training, emphasizing skills and abilities
needed to successfully create and run small businesses.
   (ii) Providing access to capital and strategic partners by
assisting early-stage companies to identify potential investors and
strategic partners, facilitating connections, and securing capital.
   (iii) Providing demonstration or prototyping capabilities and
equipment, either in house or in partnerships with local providers.
   (iv) Providing long-term structured programs to support startup
businesses as their business plans and technology develop, including
development of deployment plans and negotiation of licensing
agreements, technology transfers, and patenting.
   (v) Providing a physical site to operate the business.
   (C) Priority shall be given to entities demonstrating all of the
following characteristics:
   (i) Is a nonprofit organization that qualifies as an exempt
organization under Section 501(c)(3) of the Internal Revenue Code.
   (ii) Has a board of advisors with diversity of expertise,
including science, business financing, management, market
evaluations, legal, and marketing.
   (iii) Strong evidence of investors and corporate relationships,
either directly through the nonprofit incubator or through
relationships with local economic development organizations, such as
having a multiyear track record of attracting and vetting California
clean technology companies or demonstrating successful fundraising by
companies that have been through the entity's program.
   (iv) Has data collection on start-ups and ventures served, as well
as services provided, with performance and service metrics being
collected for a minimum of three years.
   (c) (1) The office shall establish a Science and Business Review
Committee to provide programmatic and technical expertise to the
office. The committee membership shall consist of one person from
each of the following entities:
   (A) The State Air Resources Board.
   (B) The Department of Food and Agriculture.
   (C) The Department of Water Resources.
   (D) The State Water Resources Control Board.
   (E) The State Energy Resources Conservation and Development
Commission.
   (F) The Department of Transportation.
   (G) The California Council on Science and Technology.
   (2) Persons from other departments or academic institutions whose
expertise the office deems necessary may act as advisors to the
committee.
   (d) The Science and Business Review Committee shall assist the
office to do all of the following:
   (1) Develop criteria for greenhouse gas emissions evaluation and
efficacy programs, and determine the appropriate metrics pursuant to
paragraph (1) of subdivision (b).
   (2) Determine funding priorities and develop the policy guidelines
for the grant programs described in paragraphs (2) and (3) of
subdivision (b), including the project solicitation policies and
evaluation criteria.
   (3) Evaluate and score funding requests.
   (e) In developing the guidelines for the grant programs, the
Science and Business Review Committee shall assist the office to do
all of the following:
   (1) Consult with interested parties, including, but not limited
to, parties from the clean technology industry, academic
institutions, and the investment and business community.
   (2) Establish policies regarding intellectual property rights
arising from research and projects funded by the grants, which shall
balance the opportunity of the State of California to benefit from
the patents, royalties, and licenses that result from that research
and those projects, with the need to ensure that essential clean
technology research is not unreasonably hindered by the intellectual
property agreements.
   (3) Establish policies to recapture, in whole or in part, grants
to new and existing companies that fail to maintain a substantial
business presence within California for a reasonable period of time
after receiving the grant, taking into consideration the amount of
the grant, the ratio of public to private funds used for those
activities, and the value of any intellectual property agreements
entered into with the state.
   (4) Establish reporting requirements and other conditions
necessary to manage an effective program, including, but not limited
to, meaningful measurements to demonstrate and be able to quantify
the effectiveness of program outcomes, fund matching requirements, if
any, and minimum or maximum dollar amount of grants to be awarded.
   (f) Not more than 5 percent of the funds appropriated from the
account shall be used to pay the costs incurred in the administration
of the program.
   (g) The office shall conduct a public meeting to consider public
comments before finalizing the guidelines for the grant programs. At
least 30 days before the public meeting, the office shall publish the
draft solicitation and evaluation guidelines on its Internet Web
site.
   (h) Criteria and guidelines adopted by the office to implement
this section are exempt from Chapter 3.5 (commencing with Section
11340) of Division 3.  
  SECTION 1.    It is the intent of the Legislature
that moneys in the Clean Technology Investment Account be used to
facilitate the achievement of reductions of greenhouse gas emissions
in this state consistent with paragraph (7) of subdivision (c) of
Section 39712 of the Health and Safety Code. 
  SEC. 2.    Section 16428.96 is added to the
Government Code, to read:
   16428.96.  (a) There is hereby created the Clean Technology
Investment Account within the Greenhouse Gas Reduction Fund,
established pursuant to Section 16428.8. Moneys in the Clean
Technology Investment Account shall be available for expenditure by
the State Air Resources Board for the purposes of this section, upon
appropriation by the Legislature. The Legislature shall annually
appropriate moneys from the Greenhouse Gas Reduction Fund or other
funds to the Clean Technology Investment Account in the annual Budget
Act.
   (b) (1) Moneys in the Clean Technology Investment Account shall be
expended by the State Air Resources Board for grants to design and
implement programs that accelerate the development, demonstration,
and deployment by companies and entrepreneurs of transformative
technologies that would reduce or have the potential to reduce
greenhouse gas emissions and foster job creation in the state.
   (2) The State Air Resources Board shall make grants available
pursuant to paragraph (1) to either of the following:
   (A) Nonprofit public benefit corporations formed pursuant to the
Nonprofit Corporation Law (Division 2 (commencing with Section 5000)
of the Corporations Code) that are qualified to do business in
California and are qualified under Section 501(c)(3) of the Internal
Revenue Code.
   (B) Regional technology alliances.
   (3) Not more than 5 percent of the moneys appropriated to the
State Air Resources Board pursuant to this section shall be used to
pay the costs associated with administering this section.
   (c) Priority for grants awarded pursuant to subdivision (b) shall
be given to nonprofit public benefit corporations and regional
technology alliances that have one or more of the following:
   (1) A demonstrated ability to accelerate innovative technologies
intended to reduce greenhouse gas emissions.
   (2) A demonstrated ability to attract private capital.
   (3) Access to a broad network of resources, including, but not
limited to, sponsoring entities, outside venture capital, academia,
volunteers, and mentors.
   (4) Operate as part of a larger effort that it can leverage for
the purposes of the programs designed pursuant to paragraph (1) of
subdivision (b).
   (5) An ability to match public funds with private resources,
whether actual cash or in-kind contributions.
   (d) Prior to disbursing moneys pursuant to this section, the State
Air Resources Board shall develop and adopt project solicitation and
evaluation guidelines. The state board shall conduct a public
meeting to consider public comments prior to finalizing the
guidelines. At least 30 days prior to the public meeting, the state
board shall publish the draft solicitation and evaluation guidelines
on its Internet Web site.
   (e) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2) does not apply to
the development of program guidelines and solicitation and
evaluation guidelines developed pursuant to this section.