Greenhouse gases: emissions reduction.

(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 from the auction or sale of allowances 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. This bill would establish the CalRecycle Greenhouse Gas Reduction Revolving Loan Program, which would authorize the Department of Resources Recycling and Recovery to provide loans and grants to reduce greenhouse gas emissions by promoting in-state development of infrastructure to process organics and other recyclable materials into new value-added products, as specified. The bill would establish the CalRecycle Greenhouse Gas Reduction Revolving Loan Fund. The bill would continuously appropriate moneys in the CalRecycle Greenhouse Gas Reduction Revolving Loan Fund to provide loans under the program. The bill would transfer $10,000,000 from the Greenhouse Gas Reduction Fund to the CalRecycle Greenhouse Gas Reduction Revolving Loan Fund, as specified, thereby making an appropriation. The bill would require the department to administer a grant program to provide financial assistance to reduce greenhouse gas emissions, as specified, from any additional appropriation by the Legislature from the Greenhouse Gas Reduction Fund. (2) Existing law establishes the Department of Community Services and Development and requires the department to administer, among other things, the federal Low-Income Home Energy Assistance Program. This bill would require the Department of Community Services and Development to develop and administer the Energy Efficiency Low-Income Weatherization Program and to expend moneys appropriated by the Legislature from the Greenhouse Gas Reduction Fund for the purposes of the program. (3) Existing law, pursuant to the Budget Act of 2013, provides for a $500 million loan from the Greenhouse Gas Reduction Fund to the General Fund. Existing law creates the High-Speed Rail Authority, with certain powers and duties relative to development and construction of a high-speed rail system. This bill would require that $400 million of the $500 million loan made from the Greenhouse Gas Reduction Fund to the General Fund in 2013, upon repayment to the Greenhouse Gas Reduction Fund, be available to the High-Speed Rail Authority beginning in the 2015–16 fiscal year for specified components of the initial operating segment and the Phase I Blended system of the high-speed rail project. The bill would require the loan to be repaid as necessary based on the financial needs of the high-speed rail project, and would continuously appropriate these funds from the Greenhouse Gas Reduction Fund to the authority. This bill would also, beginning in the 2015–16 fiscal year, continuously appropriate 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to the authority for these high-speed rail purposes. (4) Existing law provides various sources of funding for transportation programs, including capital and operating funds for rail services, including intercity, commuter, and urban rail systems. This bill would create the Transit and Intercity Rail Capital Program to fund capital improvements and operational investments to modernize California's intercity, commuter, and urban rail systems to achieve certain policy objectives, including the expansion and integration of rail services, with the program to be administered by the Transportation Agency. The bill would provide for the awarding of grants by the California Transportation Commission for various purposes to public agency operators of rail services from funds appropriated in that regard from the Greenhouse Gas Reduction Fund. The bill would require a project to demonstrate that it will achieve a reduction in greenhouse gas emissions in order to be eligible for funding under the program, and would require funds to be programmed with a goal of providing 25% of available funding to projects benefiting disadvantaged communities. The bill would require the Transportation Agency to adopt procedures and guidelines governing the program, and to conduct at least 2 public workshops on draft program guidelines containing selection criteria. The bill would require the commission to award grants pursuant to the project list prepared by the Transportation Agency. The bill would, beginning in the 2015–16 fiscal year, continuously appropriate 10% of the annual proceeds of the Greenhouse Gas Reduction Fund for the program. This bill would establish the Low Carbon Transit Operations Program to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantage communities. The bill would require the Department of Transportation, in coordination with the State Air Resources Board, to develop guidelines for use by transit agencies to demonstrate that proposed expenditures will meet specified criteria and establish reporting requirements for documenting ongoing compliance with those criteria. The bill would require the department, in consultation with the state board, to determine whether proposed expenditures are eligible for funding under the program before authorizing the Controller to release the funds. The bill would, beginning in the 2015–16 fiscal year, continuously appropriate 5% of the annual proceeds of the Greenhouse Gas Reduction Fund for the program. (5) Existing law establishes in the State Treasury the Energy Efficiency State Property Revolving Loan Fund, which serves as a repository for moneys received by the State Energy Resources Conservation and Development Commission under the federal American Recovery and Reinvestment Act of 2009 for the purposes of the federal State Energy Programs. Existing law continuously appropriates moneys in the fund to the Department of General Services for loans for projects on state-owned buildings and facilities to achieve greater, long-term energy efficiency, energy conservation, and energy cost and use avoidance. Existing law authorizes the commission to recover the project costs through energy utility rebates awarded to the state agency receiving the loan as a result of completed projects. This bill would establish in the State Treasury the Energy Efficiency Retrofit State Revolving Fund and would continuously appropriate moneys in the fund to the department for loans for projects in or on state-owned buildings and facilities to implement energy efficiency retrofit projects and to use renewable energy technology to achieve energy efficiency, reduce emissions of greenhouse gases, and reduce grid-based electricity purchases, thereby making an appropriation. The bill would authorize the commission to recover project costs through interest earnings, rather than through energy utility rebates. (6) Existing law establishes the Strategic Growth Council consisting of specified members and requires the council to, among other things, manage and award grants and loans to support the planning and development of sustainable communities. Existing law requires the council on July 1, 2010, and annually thereafter, to report to the Legislature on the financial assistance provided. This bill would increase the membership of the council by 2 members with one appointed by the Speaker of the Assembly and one appointed by the Senate Committee on Rules. The bill would require the council to develop and administer the Affordable Housing and Sustainable Communities Program to reduce greenhouse gas emissions through projects that implement land use, housing, transportation, and agricultural land preservation practices to support infill and compact development and that support other related and coordinated public policy objectives. The bill would require the executive director of the council to report the progress on the implementation of the program as a part of the council's annual report to the Legislature. The bill would, beginning in the 2015–16 fiscal year, continuously appropriate to the council 20% of the annual proceeds of the Greenhouse Gas Reduction Fund for the program. (7) The Z'berg-Nejedly Forest Practice Act of 1973 prohibits a person from conducting timber operations on timberland unless a timber harvesting plan has been prepared by a registered professional forester and has been submitted to the Department of Forestry and Fire Protection and approved by the Director of Forestry and Fire Protection or the State Board of Forestry and Fire Protection. A violation of the act is a crime. This bill would authorize the director to enter into agreements and make grants for the purpose of preparing a program timberland environmental impact report (PTEIR) for projects that demonstrate potential to increase carbon sequestration, decrease atmospheric carbon levels, and reduce the potential for large wildland fires on land owned by smaller nonindustrial landowners, as defined. The bill would require a participating landowner to do certain things to be eligible to participate, including submit a proposal to the department detailing the long-term forest and land management plans, for approval by the director. The bill would require the department to pay for the costs of preparing the PTEIR or provide grants from funds appropriated to the department from the Greenhouse Gas Reduction Fund. The bill would authorize the board to promulgate regulations, guidelines, or publications as the board deems necessary to carry out the above provisions. The bill would require the regulations to specify, among other things, criteria to determine that timberlands have demonstrated potential for increased carbon sequestration and fire protection benefits. Because a violation of these provisions by participating landowners would be a crime, the bill would impose a state-mandated local program. (8) The California Constitution establishes the State Personnel Board and sets forth the duties of the board, including prescribing classifications for state employees. Existing law authorizes the Department of Human Resources to conduct demonstration projects, defined as a project approved by the State Personnel Board and conducted by the department or another appointed authority to determine whether a specified change in personnel management policies or procedures would result in improved state personnel management. This bill would authorize the Department of Forestry and Fire Protection to conduct a demonstration project for competitive examinations on a position specific basis for specified classifications relating to forestry and to make appointments to positions based on a merit process open to all persons meeting specific minimum qualifications, as provided. (9) Existing law authorizes the Director of Forestry and Protection to enter into an agreement, including a grant agreement, for the prescribed burning or other hazardous fuel reduction with the owner or any other person who has legal control of any property or any public agency, as provided. This bill would additionally authorize the director to enter into an agreement, including a grant agreement, with any nonprofit organization. (10) The Forest Legacy Program encourages the conservation of private forest lands by authorizing the Department of Forestry and Fire Protection to acquire conservation easements of eligible properties according to specified criteria. Existing law repeals these provisions on January 1, 2015, but requires the department to, among other things, provide monitoring of the conservation easements, despite the repeal. This bill would delete the provision repealing the program, thereby continuing the program indefinitely. (11) 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, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses. Existing law requires the Controller to transfer, as a loan, $30,000,000 from the Vehicle Inspection and Repair Fund to the Air Quality Improvement Fund. Existing law appropriates to the state board these moneys in the Air Quality Improvement Fund to be expended only for the Clean Vehicle Rebate Project and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. This bill instead would appropriate $30,000,000 from the Greenhouse Gas Reduction Fund to the state board to be expended only for the Clean Vehicle Rebate Project and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. The bill would require the unencumbered balance of the appropriations from the Air Quality Improvement Fund to revert to the Vehicle Inspection and Repair Fund. The bill would require the appropriation from the Greenhouse Gas Reduction Fund to be available for encumbrance until June 30, 2015. (12) Existing law requires a certain amount of the smog abatement fee collected from owners of specified vehicles to be deposited in the Vehicle Inspection and Repair Fund. This bill would authorize those moneys to be expended, upon appropriation by the Legislature, for the Clean Vehicle Rebate Project. The bill would transfer $15,000,000 from the Vehicle Inspection and Repair Fund to the Air Quality Improvement Fund. (13) Existing law requires a state agency expending moneys appropriated by the Legislature from the Greenhouse Gas Reduction Fund to prepare a record regarding the expenditure of those moneys. This bill would require the State Air Resources Board to develop guidance on reporting and quantification methods for agencies receiving an appropriation from the Greenhouse Gas Reduction Fund. (14) Existing law requires the California Environmental Protection Agency to identify disadvantaged communities for investment opportunities funded by the Greenhouse Gas Reduction Fund. Existing law requires the Department of Finance, in consultation with the State Air Resources Board and other relevant state agencies, to develop a 3-year investment plan for moneys deposited in the Greenhouse Gas Reduction Fund. Existing law requires the investment plan to allocate a certain amount of moneys from the fund to benefit disadvantaged communities. Existing law requires funding guidelines developed for agencies administering programs funded by the Greenhouse Gas Reduction Fund to include guidelines for how an administering agency should maximize benefits for disadvantaged communities. This bill would require the California Environmental Protection Agency to hold one public workshop before making the identification. The bill would require the State Air Resources Board, in consultation with the California Environmental Protection Agency, to develop guidelines for administering agencies to ensure the above requirements are met. (15) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires every electric utility, as defined, to develop a standard contract or tariff providing for net energy metering, as defined, and to make this contract or tariff available to eligible customer-generators, as defined, upon request for generation by a renewable electrical generation facility, as defined. An eligible customer-generator is defined as meaning a residential customer, small commercial customer, or commercial, industrial, or agricultural customer of an electric utility, who uses a renewable electrical generation facility, or a combination of those facilities, with a total capacity of not more than one megawatt, that is located on the customer's owned, leased, or rented premises, and is interconnected and operates in parallel with the electrical grid, and is intended primarily to offset part or all of the customer's own electrical requirements. This bill would include, as an eligible customer-generator, a facility of the Department of Corrections and Rehabilitation using a renewable electrical generation technology, or a combination of renewable electrical generation technologies, with a total capacity of not more than 8 megawatts and that does not export more than 1.35 megawatts of electricity generated by wind technologies to the electrical grid at any time. (16) 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 a specified reason. (17) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.