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 in its regulation of those emissions 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. Existing law continuously appropriates portions of the fund for various purposes.

Existing law requires the state board to implement various programs to improve air quality, including air monitoring programs, grant programs, community emissions reduction programs, programs to reduce mobile and stationary sources of criteria air pollutants or toxic air contaminants, and various incentive programs to purchase or retrofit vehicles that meet specified criteria.

This bill would continuously appropriate 10% of the annual proceeds of the fund to the state board to provide funding for purposes of awarding grants, providing technical assistance, supporting community participation, and offering incentives in connection with specified programs to improve air quality, thereby making an appropriation.