Wood products.

(1) Existing law establishes the Department of Forestry and Fire Protection in the Natural Resources Agency. Existing law provides that a thriving in-state forest products sector provides public benefits, including employment opportunities in both rural and urban areas, and economic development for rural communities. This bill would require the department to develop the California Wood Innovations Small Grants Program to provide grants and low-interest loans or loan guarantees, upon appropriation by the Legislature for these purposes, to entities that expand the use of wood products and increase in-state wood product processing and manufacturing for projects to improve forest health and reduce greenhouse gas emissions, as provided. (2) 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 in regulating greenhouse gas emissions. 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. Existing law establishes the Governor's Office of Business and Economic Development, also known as "GO-Biz," in state government within the Governor's office. Existing law requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. This bill would provide that up to $20,000,000 may be available, upon appropriation, to GO-Biz for purposes of providing grants, loans, and loan guarantees for projects, approved by the department and the State Air Resources Board, that add capacity for the in-state processing and production of wood products from forest and vegetation management activities that are intended to reduce the risk and intensity of wildfires.