BILL NUMBER: AB 450	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member McCarty

                        FEBRUARY 23, 2015

   An act to amend Section 39712 of the Health and Safety Code,
relating to greenhouse gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 450, as introduced, McCarty. Greenhouse gas: energy efficiency:
financing.
   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 state board is required 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 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.
   Existing law authorizes a public agency to issue revenue bonds
(PACE bonds) that are secured by a voluntary contractual assessment
agreed to between the public agency and a property owner to finance
the installation of distributed generation renewable energy sources
or energy or water efficiency improvements that are permanently
affixed on the owner's real property.
   Existing law requires the California Alternative Energy and
Advanced Transportation Financing Authority to develop and administer
a PACE Reserve program to reduce the overall costs to property
owners of PACE bonds by providing a reserve of no more than 10% of
the initial principal amount of the PACE bonds.
   This bill would authorize the use of the moneys in the Greenhouse
Gas Reduction Fund to provide funding for the implementation of the
PACE Reserve program.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 39712 of the Health and Safety Code is amended
to read:
   39712.  (a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent with
the requirements of this chapter and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code.
   (2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5 (commencing
with Section 38500) and is consistent with law. If any expenditure of
moneys from the fund for any measure or project is determined by a
court to be inconsistent with law, the allocations for the remaining
measures or projects shall be severable and shall not be affected.
   (b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent with
Division 25.5 (commencing with Section 38500) and, where applicable
and to the extent feasible:
   (1) Maximize economic, environmental, and public health benefits
to the state.
   (2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
   (3) Complement efforts to improve air quality.
   (4) Direct investment toward the most disadvantaged communities
and households in the state.
   (5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
   (6) Lessen the impacts and effects of climate change on the state'
s communities, economy, and environment.
   (c) Moneys appropriated from the fund may be allocated, consistent
with subdivision (a), for the purpose of reducing greenhouse gas
emissions in this state through investments that may include, but are
not limited to, any of the following:
   (1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public
universities, state and local public buildings, and industrial and
manufacturing facilities.  Funding may also be used for the
implementation of Article 2 (commencing with Section 26060) of
Chapter 4 of Division 16 of the Public Resources Code. 
   (2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
   (4) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (5) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
   (6) Funding to reduce greenhouse gas emissions through investments
in programs implemented by local and regional agencies, local and
regional collaboratives, and nonprofit organizations coordinating
with local governments.
   (7) Funding research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded pursuant to this chapter.