BILL NUMBER: SB 64 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 2, 2014
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
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 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
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 to 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 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 Innovation
Account in the Budget Act. The bill would make the moneys in the
Clean Technology Innovation Account available to the Governor's
Office of Business and Economic Development for the purposes of
evaluating the efficacy of a new technology or product to potentially
reduce greenhouse gas emissions , providing
and to provide grants for activities in California
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 Moneys 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, programs and the
development of appropriate metrics, 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
that have 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 in doing all of the
following:
(1) Develop criteria for greenhouse gas emissions evaluation and
efficacy programs, 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 program
described in paragraphs paragraph (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,
program, 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 grants. These policies 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
fund-matching requirements, if any, and minimum
or maximum dollar amount amounts of
grants to be awarded.
(f) Not more than 5 percent of the funds
moneys 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 the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Division 3. 3).
(i) For purposes of this section, "office" means the Governor's
Office of Business and Economic Development.