HomeMy WebLinkAboutConsider Positions on Legislation Pending Before the State a (9) 10"3PPRO VE7j
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City of Huntington Beach C y-2
(PE79; SCAJ, POMG
AJO)
File #: 21-501 MEETING DATE: 7/6/2021
REQUEST FOR CITY COL NCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi. City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subiect:
Consider positions on legislation pending before the State and Federal Legislature, as
recommended by the Intergovernmental Relations Committee (IRC)
Statement of Issue:
On June 16, 2021 , the Intergovernmental Relations Committee (IRC), comprised of Mayor Kim Carr
and Mayor Pro Tem Barbara Delgleize (with Council Member Mike Posey absent) discussed State
and Federal issues with relevance to Huntington Beach. Following discussion. the IRC chose to take
positions on certain proposed legislation, which are presented to the City Council for further
consideration.
Financial Impact:
Not applicable
Recommended Action:
Approve one or more City positions on the following State and Federal legislation:
A) Support AB 571 (Mayes) - Impact Fees for Affordable Housing Units
B) Oppose AB 215 (Chiu) - Relative Progress Determination for Housing Elements
C) Support HR 2307 (Deutch) - Carbon Dividend Trust Fund
Alternative Action(s):
Do not approve one or more recommended legislative positions and direct staff accordingly.
Analysis:
On June 16. 2021 . the IRC recommended positions on the following State and Federal legislation.
which are being presented to the City Council for consideration.
1. SUPPORT - AB 571 (Mayes) - Impact Fees for Affordable Housing
City of Huntington Beach Page 1 of 2 Printed on 6/30/2021
. --'34
File #: 21-501 MEETING DATE: 7/6/2021
This bill prohibits a city or county from imposing,, affordable housing impact fees, including
inclusionary zoning fees or in-lieu lees, on a housine development's affordable units. These types of
fees may potentially affect the overall cost of a project, which may be passed along to the income
restricted hovers or renters of these affordable housing units. The City does not impose these types of
impact fees our gljbrdable housing card is supportive of legislation that supports this position.
2. OPPOSE - AB 215 (Chiu) - Relative Progress Determination for Housing Elements
"['his bill. starting with the 6" housing clement revision. would require the California Department of
Housing and Comnnmity Development (1-I0)) to determine the relative progress toward meeting
regional housing needs of each jurisdiction. The bill would require I ICD to make this determination
based on the information contained in the annual reports submitted by each jurisdiction. The IRC
opposes this hill. which imposes new state urarrdcrtes at local jtrrisrlictions that ecperierrce "low
progress " on housing production. These jurisdictions would be forced to consult with FICD and
poewially adopt certain horsing policies, without first/ elcterorirtutg if then are effective.
3. SUPPORT - HR 2307 (Deutch) - Enercy Innovation and Carbon Dividend Act of 2021
This bill imposes a fee on the carbon content of fuels, includin_ crude oil, natural gas, coal. or any other
product derived from those fuels that will be used so as to emit greenhouse gases into the atmosphere.
The fee is imposed on the producers or importers of the fuels and is equal to the gi'eenhouSC gas content
Of the fuel multiplied by the carbon fee rate. The rate begins at S 15 per metric ton of CO2-e in 2021.
increases by SIO each year. and is subject to further adjustments based on the progress in meeting
specified emissions reduction targets. The lees must be deposited into a Carbon Dividend Trust Fund
and used for administrative expenses and dividend payments to U.S. citizens or lawful residents. The
fees must be decommissioned when emissions levels and monthly dividend payments fall below
specified levels. The IRC supports this bill as it may help reduce the nation 's carbon footprint and
support the Cirn's efforts towards green industries and environmental sustainabilirn.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(§):
1. AB 571 (Mayes)
AB 215 (Chiu)
2. HR 2307 (Deutch)
City of Huntington Beach Page 2 of 2 Printed on 6/3012 0 2 1
eowereo35 Legistar'•
T 0 W N S E N D
RU B L 1 C AFFAIRS
TPA
Bill Summaries
AB 215: Housing element: regional housing need: relative progress determination
Summary
• Requires jurisdictions with relatively low progress towards meeting their regional housing
needs to have a mid-cycle housing element consultation with the Department of Housing
and Community Development (HCD) and adopt pro-housing policies
• These conditions apply if:
o A City's progress towards meeting its share of the regional housing need is less
than its pro-rated share of the regional housing need; and
o Either its relative progress for all housing or housing affordable to very low- and
low-income housing is less than that of the jurisdiction's affiliated council of
governments or subregion.
• Should the above conditions apply, requires jurisdictions to attain a pro-housing
designation from HCD as follows:
o A jurisdiction would be required to undertake the consultation if its relative
progress for all housing is at least 10 percentage points less than that of the
jurisdiction's affiliated council of governments or subregion, as determined during
the fifth year of the housing element planning period and upon completion of the
housing element planning period.
o The timing and process for attaining the pro-housing designation is as follows:
• HCD must notify jurisdictions by July 1 of their need to attain the pro-
housing designation,
• Any jurisdiction receiving this notice must attain the pro-housing
designation from HCD by July 1 of the following year.
o If a jurisdiction does not comply with the timeline for receiving the pro-housing
designation, HCD must find that their housing element does not substantially
comply with Housing Element law.
Support
California Housing Consortium [SPONSOR] Lisc San Diego
Bay Area Council Midpen Housing
Bridge Housing Corporation Modular Building Institute
Calchamber Non-profit Housing Association of Northern
California Association of Realtors California
California Yimby Sand Hill Property Company
California Building Industry Association Silicon Valley Community Foundation
Chan Zuckerberg Initiative Silicon Valley Leadership Group
Greenbelt Alliance Spur
Habitat for Humanity California Sv@home
Hello Housing Sv@home Action Fund
Housing Action Coalition The Two Hundred
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AMENDED IN SENATE .TUNE 23, 2021
AMENDED IN ASSEMBLY APRIL 5. 2021
CALIFORNIA LEGISLA'rURE-2021-22 REGULAR SESSION
ASSEMBLY BILL No. 215
Introduced by Assemble Member Chiu
January I I. 2021
An act to amend Section 65585 of, and to add Sections 65585.5 and
65589.10 to. the Government Code, relating to housin_.
LI:GISLA'I'TVE COUNSFL'S DIGEST
AB 215,as amended.Chiu. Housing element: regional housing need:
relative progress determination.
(1) Esistin2 law, the Planning and Zoning Law; requires a city or
county to adopt a general plan for land use development within its
boundaries that includes, among other things, a housing element. That
law requires the Department of Mousing and Community Development
to determine whether the housing element is in substantial compliance
with specified provisions of that law.
This bill, starting with the 6th housing element revision,would require
the department to determine the relative progress toward meeting
regional housing needs of each jurisdiction, council of governments,
Mid subregion, as specified. The bill would require the department to
make this determination based on the information contained in the
annual reports submitted by each jurisdiction, as specified. The bill
would require the department to make this determination for all housim-
and for lower income housing by dividing the applicable entity's
progress toward meeting its share of the regional housing need by its
prorated share of the regional housing need, as specified. The bill would
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All215 —2—
require the department to post the determinations of relative progress
on its internet website by July I of the year in which relative progress
is determined.
The bill would require ajurisdiction to undertake it midcycle housing
element consultation with the department if the jurisdiction's progress
toward meeting its share of the regional housing need is less than its
prorated share ofthe regional housing need and the relative progress
of the jurisdiction for all housing or for lower income housing is less
than the relative progress of the affiliated council of governments or
subregion, as specified.The bill would require a
. . r.��Tjuriscliction, in consultation with the department, as
it part ofthis midcycle housing clement consultatioii.4nelttdi»g a-retie+r
6 . g _ tre
amine .l _ , .rtd-s . to review cmd update its
scheclttled prggrcnns awl ensure that all programs hale en/breeable
actions and concrete timelines. The bill would require the department
to find that it housing element is not in substantial compliance with the
Planning and /_onins Law if the department determines that the
jurisdiction has not complied with these provisions.
Because this bill would require certain jurisdictions to participate in
a midcycle housing element consultation with the department, the bill
imposes a state-mandated local program.
(2) Existing law, for award cycles commencing after July 1. 2021.
dwdrds it city or county additional points in the scoring of specified
program applications if the city or county, among other things, has been
designated by the department as prohousing based upon its adoption of
prohousing local policies for housing, as provided Existing law defines
"prohousing local policies' as policies that facilitate the planning.
approval, or construction of housing, including, but not limited to. local
financial incentives for housing, reduced parking requirements for sites
that are zoned for residential development and the adoption of zoning
allowing for use by right for residential and mixed-use development.
This bill, commencing with the 6th revision of the housing clement,
would require a jurisdiction to attain a prohousing designation by the
department if the jurisdiction's relative progress toward meeting its
share of the regional or subregional housing need for all housing is at
least 10 percentalle points less than the relative progress of their
affiliated council of governments or subregion. as determined pursuant
to the provisions described above, as specified.
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(3) The Planning and Zoning Law also requires the department to
notify a city, county, or city and county, and authorizes the department
to notify the office of the Attorney General, that the city, county, or
city and county is in violation of'state law if the department finds that
the housing element or an amendment to the housing element does not
substantially comply with specified provisions of the Planning and
Zoning Law, or that the local government has taken action or failed to
act in violation of specified provisions of law.
phis bill would add the Housing Crisis Act of 2019 to those specified
provisions of law.
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.
Votc: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
77te people ol'the Stole of California clo enact as follows:
I SECTION 1. Section 65555 of the Government Code is
2 amended to read:
3 65585. (a) In the preparation of its housing element, each city
4 and county shall consider the guidelines adopted by the department
5 pursuant to Section 50459 of the Health and Safety Code. Those
6 guidelines shall be advisory to each city or county in the
7 preparation of its housing element.
S (b) (I) At least 90 days prior to adoption ofits housing element,
9 or at least 60 days prior to the adoption of an amendment to this
10 element, the planning agency shall submit a draft element or draft
1 I amendment to the department.
12 (2) The planning agency staff shall collect and compile the
13 public comments regarding the housing element received by the
14 city. county, or city and county, and provide these comments to
15 each mcnber of the legislative body before it adopts the housing
16 element.
17 (3) The department shall review the draft and report its written
IS findings to the planning agency within 90 days of its receipt of the
19 draft in the case of an adoption or within 60 days of its receipt in
20 the case ofa draft amendment.
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AB 215 —4-
1 (c) In the preparation of its findings, the department may consult
2 with any public agency, group, or person. The department shall
3 receive and consider any written comments from any public
4 agency, �zroup, or person regarding the draft or adopted element
or amendment under review.
6 (d) In its written findings, the department shall determine
7 whether the draft element or draft amendment substantially
S complies with this article.
9 (e) Prior to the adoption of its draft clement or draft amendment,
t0 the legislative body shall consider the findings made by the
11 department. If the department's findings are not available within
12 the time limits set by this section, the legislative body may act
13 without them.
14 (f) If the department finds that the draft element or draft
15 amendment does not substantially comply with this article, the
16 legislative body shall take one of the following actions:
17 (1) Change the draft element or draft amendment to substantially
IS comply with this article.
19 (2) Adopt the draft element or draft amendment without changes.
20 The legislative body shall include in its resolution of adoption
21 written findings which explain the reasons the legislative body
22 believes that the draft element or draft amendment substantially
23 complies with this article despite the findings of the department
24 (g) Promptly following the adoption of its clement or
25 amendment, the planning agency shall submit a copy to the
26 department.
27 (it) The department shall, within 90 days, review adopted
2S housing elements or amendments and report its findings to the
29 planning agency.
30 (i) (I) (A) The department shall review any action or failure
31 to act by the city, county, or city and count\, that it determines is
32 inconsistent with an adopted housing element or Section 65583,
33 including any failure to implement any program actions included
34 in the housing element pursuant to Section 65553.The department
35 shall issue written findings to the cite, county, or city and county
36 as to whether the action or failure to act substantially complies
37 with this article, and provide a reasonable time no longer than 30
3S days for the city, county, or city and county to respond to the
39 findings before taking any other action authorized by this section.
40 includin=_ the action authorized by subparagraph (B).
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1 (13) If the department finds that the action or failure to act by
2 the city, county, or city and county does not substantially comply
3 with this article,and ifit has issued findings pursuant to this section
4 that an amendment to the housing element substantially complies
5 with this article, the department may revoke its findings until it
6 determines that the city, county. or city and county has conic into
7 compliance with this article.
S (2) The department may consult with any local government,
9 public agency. group, or person, and shall receive and consider
10 any written continents from any public agency, group. or person.
I I regarding the action or failure to act by the city, county, or city
12 and count\,described in paragraph (I), in determining whether the
13 housing clement substantially complies with this article.
14 (j) The department shall notify the city. county, or city and
15 county and may notify the office of the Attorney General that the
16 city, county, or city and county is in violation of state lacy if the
17 department finds that the housing element or an amendment to this
IS element. or any action or failure to act described in subdivision
19 (i), does not substantially comply with this article or that any local
20 government has taken an action in violation of the following:
21 (1) Housing Accountability Act (Section 65589.5 of the
22 Government Code).
23 (2) Section 65563 of the Government Code.
24 (3) Chapter 4.3 (commencing with Section 65915) of Division
25 I of Title 7 of the Government Code.
26 (4) Section 65008 of the Government Code.
27 (5) Flousing Crisis Act of 2019 (Section 66300 of the
28 Government Code).
29 (k) Commencing July I, 2019, prior to the Attorney General
30 bringing any suit for a violation of the provisions identified in
3 I subdivision 0) related to housing element compliance and seekin.-
32 remedies available pursuant to this subdivision, the department
33 shall ofler the jurisdiction the opportunity for two meetings in
34 person or via telephone to discuss the violation, and shall provide
35 the jurisdiction written findings regarding the violation. This
36 paragraph does not affect any action filed prior to the effective
37 date of this section. The requirements set forth in this subdivision
38 do not apply to any suits brought for a violation or violations of
39 paragraphs (I), (3), and (4) of subdivision (j).
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AB 215 —6-
1 (1) In any action or special proceeding brought by the Attorney
2 General relating to housing element compliance pursuant to a
3 notice or referral under subdivision 0), the Attorney General may
4 request. upon a finding ofthe court that the housing element does
5 not substantially comply with the requirements of' this article
6 pursuant to this section, that the court issue an order or judgment
7 directing the jurisdiction to brim: its housing element into
S substantial compliance with the requirements of this article. The
9 court shall retain jurisdiction to ensure that its order or judgment
10 is carried out. If'a court determines that the housine element of
I I the jurisdiction substantially complies with this article, it shall
12 have the same force and effect, for purposes of eligibility for any
13 financial assistance that requires a housing element in substantial
14 compliance and for purposes of any incentives provided under
15 Section 65589.9, as a determination by the department that the
16 housing element substantially complies with this article.
17 (1) 11' the jurisdiction has not complied with the order or
IS judgment after twelve months, the court shall conduct a status
19 conference. Following the status conference, upon a determination
20 that the jurisdiction failed to comply with the order or judgment
21 compellint* substantial compliance with the requirements of this
22 article, the court shall impose fines on thejurisdiction, which shall
23 be deposited into the Building Homes and Jobs Trust Fund. Any
24 fine levied pursuant to this paragraph shall be in a minimum
25 amount of ten thousand dollars(S 10,000) per month, but shall not
26 exceed one hundred thousand dollars(S 100,000)per month,except
27 as provided in paragraphs (2) and (3). In the event that the
28 jurisdiction fails to pay fines imposed by the court in full and on
29 time, the court may require the Controller to intercept any available
30 state and local Funds and direct such funds to the Building Homes
31 and Jobs Trust Fund to correct the jurisdiction's failure to pay.
32 The intercept of the funds by the Controller for this purpose shall
33 not violate any provision of the California Constitution.
34 (2) If the jurisdiction has not complied with the order or
35 judgment after three months following the imposition of fees
36 described in paragraph (1), the court shall conduct a status
37 conference. Following the status conference, ifthe court finds that
38 the fees imposed pursuant to paragraph (I) are insufficient to bring
39 the jurisdiction into compliance with the order or judgment, the
40 court may multiply the fine determined pursuant to paragraph (I)
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1 by a factor of three. In the event that the jurisdiction fails to pay
2 lines imposed by the court in Rill and on time, the court may
3 require the Controller to intercept any available state and local
4 Funds and direct such funds to the Building Homes and Jobs Trust
5 fund to correct the jurisdiction's failure to pay. The intercept of
6 the funds by the Controller for this purpose shall not violate any
7 provision of the California Constitution.
S (3) If the jurisdiction has not complied with the order or
9 judgment six months following the imposition of tees described
10 in paragraph(I),the court shall conduct a status conference. Upon
1 I a determination that the jurisdiction failed to comply with the order
12 orjudgment, the corm may impose the following:
13 (A) If the court finds that the fees imposed pursuant to
14 paragraphs (I)and (2)are insufficient to bring the jurisdiction into
15 compliance with the order or judgment, the court may multiply
16 the fine determined pursuant to paragraph (1) by a factor of six.
17 In the event that thejurisdiction fails to pay fines imposed by the
IS court in full and on time. the court may require the Controller to
19 intercept any available state and local funds and direct such funds
20 to the Building Homes and Jobs Trust Fund to correct the
21 jurisdiction's failure to pay. The intercept of the funds by the
22 Controller for this purpose shall not violate any provision of the
23 California Constitution.
24 (B) The court may order remedies available pursuant to Section
25 564 of the Code of Civil Procedure. under which the agent of the
26 court may take all governmental actions necessary to brine the
27 jurisdiction's housing element into substantial compliance pursuant
28 to this article in order to remedy identified deficiencies. The court
29 shall determine whether the housing element of the jurisdiction
30 substantially complies with this article and, once the court makes
31 that determination. it shall have the same force and eflca for all
32 purposes. as the department's determination that the housing
33 element substantially complies with this article.An agent appointed
34 pursuant to this paragraph shall have expertise in planning in
35 California.
36 (4) This subdivision does not limit a court's discretion to apply
37 any and all remedies in an action or special proceeding for a
38 violation of any law identified in subdivision 0).
39 (m) In determining the application of the remedies available
40 under subdivision (1), the court shall consider whether there are
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AB 215 —8-
1 any mitigating circumstances delaying thejurisdiction from coming
2 into compliance With state housing law. The court may consider
3 whether a city. county. or city and county is making a good faith
4 effort to come into substantial compliance or is facing* substantial
5 undue hardships.
6 (n) The office of the Attorney General may seek all remedies
7 available under law including those set forth in this section.
8 SEC. 2. Section 65585.5 is added to the Government Code, to
9 read:
10 65585.5. (a) Commencing with the sixth revision of the
I I housin_e element pursuant to Section 65588. the department shall
12 determine the relative progress toward meetin(I regional housing
13 needs subject to the following:
14 (1) (A) The department shall determine relative progress toward
15 meeting regional housine needs for all housing and lower income
16 housing during the fifth year of the applicable planning period.
17 (13) The department shall also determine relative progress toward
IS meeting regional housing needs for all housing during the year
19 after the completion of the jurisdiction's planning period. The
20 department's determination of relative progress under this
21 subparagraph shad be used to determine jurisdictions that must
22 attain a prohousing designation pursuant to Section 65589.10 and
23 shall not be the basis for a micicycle housing element consultation
24 under subdivision (b).
25 (2) The department shall make relative progress determinations
26 based on the information contained in the annual reports submitted
27 pursuant to Section 65400. and shall measure relative progress
2S subject to the following:
29 (A) For eachjurisdiction:
30 (i) Relative progress for all housing shall be measured by
31 dividing thejurisdiction's progress toward meeting its share ofthe
32 regional housing need by its prorated share of the regional housing
33 need, as determined pursuant to Section 65584.
34 (ii) Relative progress for lower income housing shall be
35 measured by dividing thejurisdiction's progress toward meeting
36 its share of the regional housing need for the very low and
37 low-income categories by its prorated share ofthe regional housing
3S need for very low and low-income households, as determined
39 pursuant to Section 65584.
40 (B) For each council ofgovernments:
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1 (i) Relative progress for all housinL shall be measured by
2 summing the progress of each of the council of governments'
3 member jurisdictions toward meeting their share of the regional
4 housine need and dividing that sum by the prorated regional
5 housine need. as determined pursuant to Section 65584.01.
6 (ii) Relative progress for lower income housing shall be
7 measured by summing the progress of each of the council of
8 _overnments' memberjurisdictions toward meeting their share of
9 the regional housing need for very low and low-income households
10 and dividing that sum by the prorated regional housine need foi-
1 I very low and low-income households, as determined pursuant to
12 Section 65584.01.
13 (C) For each subregion:
14 (i) Relative progress for all housing shall be measured by
15 summing the progress of each of the Subregion's member
16 jurisdictions toward meeting their share ofthe subregional housing
17 need and dividing that sum by the prorated subregional housing
18 need, as determined pursuant to Section 65584.03.
19 (ii) Relative progress for lower income housing shall be
20 measured by summing the progress of each of the subreeion's
21 memberjurisdictions toward meeting their share of the subregional
22 housing need for very low and low-income households and dividing
23 that sum by the prorated subregional housine need for very low
24 and low-income households, as determined pursuant to Section
25 65584.03.
26 (3) This subdivision shall only apply to jurisdictions with an
27 ciuht-year housing element planning period, pursuant to Section
28 6»88.
29 (4) Determinations of relative progress shall be published on
30 the department's internet website by July 1 of the year in which
31 relative progress is determined.
32 (b) (1) A jurisdiction shall undertake a midcycle housing
33 element consultation with the department if both of the following
34 occur:
35 (A) The jurisdiction's progress toward meeting its share of the
36 regional housing need is less than its prorated share of the regional
37 housing need.
38 (B) '1-he jurisdiction meets one of the following:
39 (i) The jurisdiction's relative progress for all housing during
40 the fifth year of the applicable planning period, pursuant to
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A13 215 — W—
I subdivision (a), is less than the relative progress for all housing of
2 the jurisdiction's affiliated council ofgovernments or subregion.
3 (ii) The jurisdiction's relative progress for very low and
4 low-income households during the fifth year of the applicable
5 planning period, pursuant to subdivision (a), is less than the relative
6 progress for very lose and low-income households of the
7 jurisdiction's affiliated council of governments or subregion.
S (2) A jurisdiction required to conduct a midcycle housing
9 element consultation pursuant to this subdivision shall, in
10 coordination with the _
I I depcn-nnenl curd(o crnr of the categories fa a high the jurisdiction
12 is required to unclertake a midcycle housing element consultation
13 pursuant to paragraph ('1). review and update. as necessary, all
14 scheduled programs and ensure that all programs have enforceable
15 actions crud concrete timelines.
16 -
17 rees, and seliccittled progrttms.
IS (B) En�ure that all
19 eone tte timelines. y
20 (3) (A) 13y July I of the year in which the determination of'
21 relative progress has occurred pursuant to subdivision (a), the
22 department shall notify eachjurisdiction, in writing, of their need
23 to comply with this subdivision.
24 (13) A midcycle housing element consultation shall occur within
25 six months of the jurisdiction receiving the notice pursuant to
26 subparagraph (A).
27 (C) Any revisions to the housing element required by the
28 department during a midcycle housing element consultation must
29 be completed within one year of the consultation.
30 (4) The department may apply the requirements of` this
31 subdivision to any jurisdiction that fails to submit a substantially
32 compliant annual report pursuant to the timelines and requirements
33 of Section 65400.
34 (5) If the department determines that a jurisdiction has not
35 complied with the requirements of this subdivision, the department
36 shall find that their housing element does not substantially comply
37 with this article. pursuant to Section 65535.
38 (c) The section shall not be construed to dim it?ish at-undermine
39 the clepcu•anew•s en/oreemew awhorit_v granted elsewhere in
40 stature at- regulation.
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— II — AB215
1 SEC. J. Section 65589.10 is added to the Government Code.
2 to read:
3 65589.10. (a) Commencing with the sixth revision of the
4 housing element pursuant to Section 65558,anyjurisdiction whose
5 relative progress toward meeting its share of the regional or
6 subregional housing need for all housing, as determined pursuant
7 to paragraph (2) of subdivision (a) of Section 65585.5. is at least
S 10 percentage points less than the relative progress of their
9 affiliated council of governments or subregion shall be required
10 to attain a prohousing designation by the department pursuant to
I I subdivision (c) of Section 65589.9.
12 (b) (I) The department shall determine whether a jurisdiction
13 is required to attain a prohousing designation pursuant to
14 subdivision (a) by July 1 of the year in which the determination
15 ofrelative progress has occurred.
16 (2) The department shall make a second determination of
17 whether ajurisdiction is required to attain a prohousing designation
IS pursuant to subdivision (a) by July I of the year after the
19 completion ofthejurisdiction's planning period.
20 (3) The department shall provide written notice to ajurisdiction
21 that must attain a prohousing designation pursuant to subdivision
22 (a) by July I of the vear in which the determination is made.
23 (4) A jurisdiction that receives written notice pursuant to
24 paragraph (3) that does not already have a prohousing designation
25 shall attain a prohousing designation by July I of the year after
26 receiving the notice pursuant to paragraph (3). It'the jurisdiction
27 does not comply with this timeline, the department shall find that
28 the jurisdiction's housing element does not substantially compl%
29 with this article pursuant to Section 65585.
30 (c) The department may apply the requirements of this section
31 to any jurisdiction that fails to submit a substantially compliant
32 annual report pursuant to the timelines and requircntcnts of Section
33 65400.
34 SEC. 4. No reimbursement is required by this act pursuant to
35 Section 6 of Article XI II B of the California Constitution because
36 a local agency or school district has the authority to levy service
37 charges. Ices, or assessments sufficient to pay for the program or
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AB 215 — 12-
1 level of service mandated by this act. within the meaning of Section
2 17556 of the Government Codc.
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TOWNS END
P i R C AFFAIRS
TPA
TMG Partners
Opposition
California Cities for Local Control New Livable California Dba Livable
Catalysts California
California State Association of Counties Riviera Homeowners Association
League of California Cities Rural County Representatives of California
Mission Street Neighbors Sustainable Tamalmonte
Urban Counties of California
Status
Passed the Assembly and is currently in the Senate Rules Committee
AB 571 (Mayes) — Planning and zoning: density bonuses: affordable housing
Summary
• This bill prohibits a city or county from charging affordable housing impact fees, including
inclusionary zoning fees and in-lieu fees, on a housing development's affordable units.
• This bill would prohibit a local government from charging fees through an inclusionary
housing ordinance or in lieu fees, on the affordable housing units in a development that
uses density bonus.
Support
California Association of Realtors [SPONSOR]
Housing Action Coalition [SPONSOR]
American Planning Association, California Chapter
California Apartment Association
California Building Industry Association
Circulate San Diego
Livable California
Opposition
Community Catalysts
Status
Passed the Assembly and is currently in the Senate Rules Committee.
2
49
AMENDED IN ASSEMBLY MAY 3, 2021
AMENDED IN ASSEMBLY MARCH 24, 2021
CALIFORNIA LEGISLATURE-2021-22 REGULAR SESSION
ASSEtNIBLY BILL No. 571
Introduced by Assembly Member haves
February 11, 2021
An act to amend Section 65915 of the Government Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 571, as amended, Maves. Planning and zonin<_,: density bonuses:
affordable housing.
Existing law, known as the Density Bonus Law, requires a city or
county to provide a developer that proposes a housing development in
the city or count\' With a density bonus and other incentives or
concessions for the production of lower income housing units, or for
the donation of land within the development, if the developer agrees
to, anionic, other things, construct a specified percentage of units for
very low income, low-income, or moderate-income households or
qualifying residents, including lower income students. Existing law
requires the amount of a density bonus and the number of incentives
or concessions a qualifying developer receives to be pursuant to a certain
formula based on the total number of units in the housing development.
as specified.
This bill would prohibit affordable housing impact lies, including
inclusionary zoning4;it:.feet and in-lieu fees, _.
from being imposed on a housing development's affordable units.
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50
AR 571 —2—
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: ves.
The people of the State of California clo enact as.follows:
I SECTION 1. Section 65915 of' the Government Code, as
2 amended by Section 2 of Chapter 197 of the Statutes of 2020, is
3 amended to read:
4 65915. (a) (1) When an applicant seeks a density bonus for
5 a housing development within, or for the donation of land for
6 housing within, thejurisdiction of a city,county,or city and county,
7 that local government shall comply with this section. A city,
S county, or city and county shall adopt an ordinance that specifies
9 how compliance with this section will be implemented. Except as
10 otherwise provided in subdivision (s), failure to adopt an ordinance
1 I shall not relieve a city, county, or city and county from complying
12 with this section.
13 (2) A local government shall not condition the submission,
14 review, or approval ol'an application pursuant to this chapter on
15 the preparation of an additional report or study that is not otherwise
16 required by state law, including this section.-[-his subdivision does
17 not prohibit a local government from requiring an applicant to
18 provide reasonable documentation to establish eligibility for a
19 requested density bonus, incentives or concessions, as described
20 in subdivision (d), waivers or reductions of'development standards,
21 as described in subdivision (c), and parking ratios, as described in
22 subdivision (p).
23 (3) In order to provide for the expeditious processing ofa density
24 bonus application, the local government shall do all of the
25 following:
26 (A) Adopt procedures and timelines for processing a density
27 bonus application.
28 (13) Provide a list ofall documents and information required to
29 be submitted with the density bonus application in order for the
97
51
-3 — AB571
1 density bonus application to be deemed complete. This list shall
2 be consistent with this chapter.
3 (C) Notify the applicant for a density bonus whether the
4 application is complete in a manner consistent with the timelines
5 specified in Section 65943.
6 (D) (i) It' the local government notifies the applicant that the
7 application is deemed complete pursuant to subparagraph (C),
S provide the applicant with a determination as to the following
9 matters:
10 (1) The amount of density bonus, calculated pursuant to
I I subdivision (f), for which the applicant is eligible.
12 (11) If the applicant requests a parking ratio pursuant to
13 subdivision (p),the parking ratio for which the applicant is eligible.
14 (111) Ifthe applicant requests incentives or concessions pursuant
15 to subdivision (d) or waivers or reductions of development
16 standards pursuant to subdivision (e), whether the applicant has
17 provided adequate information for the local government to make
IS a determination as to those incentives, concessions, or waivers or
19 reductions of development standards.
20 (ii) Any determination required by this subparagraph shall be
21 based on the development project at the time the application is
22 deemed complete. The local government shall adjust the amount
23 ofdensity bonus and parking ratios awarded pursuant to this section
24 based on any changes to the project during the course of
25 development.
26 (b) (1) A city, county, or city and county shall grant one density
27 bonus, the amount of which shall be as specified in subdivision
28 (f), and, if requested by the applicant and consistent with the
29 applicable requirements ofthis section, incentives or concessions.
30 as described in subdivision (d), waivers or reductions of
31 development standards,as described in subdivision(e),and parking
32 ratios, as described in subdivision (p), when an applicant for a
33 housing development seeks and agrees to construct a housing
34 development, eXcluding any units permitted by the density bonus
35 awarded pursuant to this section, that will contain at least any one
36 of the following:
37 (A) Ten percent ol'the total units of a housing development for
38 lower income households, as defined in Section 50079.5 of the
39 Health and Safety Code.
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52
AR 571 —4-
1 (13) Five percent ofthe total units ofa housing development for
2 very low income households, as defined in Section 50105 of the
3 Health and Safety Code.
4 (C) A senior citizen housing development,as defined in Sections
> >1.3 and 5 1.12 of the Civil Code, or a mobilehome park that limits
6 residency based on age requirements for housing for older persons
7 pursuant to Section 795.76 or 799.5 of the Civil Code.
4 (D) Ten percent of the total dwelling units in a common interest
9 development, as defined in Section 4100 of the Civil Code, for
10 persons and families of moderate income, as defined in Section
1 1 50093 of the Health and Safety Code, provided that all units in the
12 development are offered to the public for purchase.
13 (G) Ten percent of the total units ofa housing development for
14 transitional foster youth. as defined in Section 66025.9 of the
15 Education Code, disabled veterans, as defined in Section 13541.
16 or homeless persons, as defined in the federal McKinney-Vento
17 Homeless Assistance Act(42 U.S.C. Sec. 11301 et seq.).The units
13 described in this subparagraph shall be subject to a recorded
19 affordability restriction of » years and shall be provided at the
20 same affordability level as Very low income units.
21 (F) (i) Twenty percent of the total units for lower income
22 students in a student housing development that meets the following
23 requirements:
24 (1) All units in the student housing development Will be used
25 exclusively for undergraduate, graduate, or professional students
26 enrolled full time at an institution of higher education accredited
27 by the Western Association of Schools and Colleges or the
28 Accrediting Commission for Community and Junior Colleges. In
29 order to be eligible under this subclause, the developer shall, as a
30 condition of receiving a certificate of occupancy, provide evidence
3 1 to the city, county,or city and County that the developer has entered
32 into an operating agreement or master lease with one or more
33 institutions of higher education for the institution or institutions
34 to occupy all units of the student housing development with
35 students from that institution or institutions. An operating
36 agreement or master lease entered into pursuant to this subclause
37 is not violated or breached if. in any subsequent year. there are not
38 sufficient students enrolled in an institution of higher education
39 to fill all units in the student housing development
<»
53
-5— AB 571
1 (11) The applicable 20-percent units will be used for lower
2 income students. For purposes of this clause, "lower income
3 students' means students who have a household income and asset
4 level that does not exceed the level for Cal Grant A or Cal Grant
5 B award recipients as set forth in paragraph (1 ) of subdivision (k)
6 of Section 69432.7 of the Education Code. The eligibility of a
7 student under this clause shall be verified by an affidavit, award
8 letter, or letter of eligibility provided by the institution of higher
9 education that the student is enrolled in, as described in subclause
10 (1). or by the California Student Aid Commission that the student
I I receives or is eligible for financial aid, including an institutional
12 grant or fee waiver, from the college or university, the California
13 Student Aid Commission, or the federal government shall be
14 sufficient to satisfy this subclause.
15 (111) The rent provided in the applicable units ofthe development
16 for Tower income students shall be calculated at 30 percent of 65
17 percent of the area median income for a single-roam occupancy
18 unit type.
19 (IV) The development will provide priority for the applicable
20 affordable units for lower income stuc(cnts experiencing
21 homelessness.A homeless service provider. as defined in paragraph
22 (3) of subdivision (e) of Section 103577 of the Health and Safety
23 Code, or institution of higher education that has knowledge of a
24 person's homeless status may verify a person's status as homeless
25 fir purposes of this subclause.
26 (ii) For purposes ofcalculating a density bonus granted pursuant
27 to this subparagraph, the term "unit"as used in this section means
28 one rental bed and its pro rata share of'associated common area
29 facilities.'[-he units described in this subparagraph shall be subject
30 to a recorded affordability restriction of>j years.
31 (G) One hundred percent of all units in the development.
32 including total units and density bonus units, but exclusive of a
33 manager's unit or units, are for lower income households. as
34 defined by Section 50079.5 ofthe Health and Safety Code, except
35 that up to 20 percent of the units in the development, including
36 total units and density bonus units, may be Ior moderate-income
37 households, as defined in Section 50053 of the Health and Safcty
38 Code.
39 (2) For purposes of calculating the amount of'the density bonus
40 pursuant to subdivision (1), an applicant who requests a density
97
54
AB 571 —6-
1 bonus pursuant to this subdivision shall elect whether the bonus
2 shall be awarded on the basis of subparagraph (A), (B), (C), (D),
3 (E), (P), or (G) of paragraph (I).
4 (3) I-or the purposes of this section. "total units.""total dwelling
5 units."' or "total rental beds' does not include units added by a
6 density bonus awarded pursuant to this section or any local law
7 _,ranting a greater density bonus.
S (c) (1) (A) An applicant shall agree to, and the city, county,
9 or city and count- shall ensure, the continued affordability of all
10 very low and low-income rental units that qualified the applicant
I I fir the award of the density bonus for 55 years or a longer period
12 of time if required by the construction or morumue financing
I3 assistance program, mortgase insurance program,or rental subsidy
14 program.
15 (13) (i) Exceptas othei-xvise provided in clause (ii), rents far the
16 lower income density bonus units shall be set at an affordable rent.
17 as defined in Section 50053 of'the Health and Safer Code.
IS (ii) I-or housing developments meeting the criteria of
19 subparagraph (G) of paragraph (I) of'subdivision (b), rents for all
20 units in the development, including both base density and density
21 bonus units, shall be as follows:
22 (1) The rent for at least 20 percent of the units in the
23 development shall be set at an affordable rent, as defined in Section
24 50053 of the Health and Safety Code.
25 (II) The rent for the remaining units in the development shall
26 be set at an amount consistent with the maximum rent levels for
27 a housing development that receives an allocation of state or federal
23 low-income housing tax credits from the California 'fax Credit
29 Allocation Committee.
30 (2) An applicant shall agree to, and the city, count, or city and
31 county shall ensure that, the initial occupant of all for-sale units
32 that qualified the applicant for the award of the density bonus are
33 persons and families of' very low, low. or moderate'income, as
34 required, and that the units are offered at an affordable housing
35 cost, as that cost is defined in Section 50052.5 of the Health and
36 Safety Code.The local government shall enforce an equity sharing
37 agreement, unless it is in conflict with the requirements ofanother
3S public tending source or law. The following apply to the equity
39 sharing agreement:
97
55
-7— AB 571
1 (A) Upon resale, the seller of the unit shall retain the value of
2 any improvements, the downpayment,and the sellers proportionate
3 share of appreciation. The local government shall recapture any
4 initial subsidy,as defined in subparagraph(13),and its proportionate
5 share of appreciation, as defined in subparagraph (C), which
6 amount shall be used within five years for any of the purposes
7 described in subdivision (e) of Section 33334.2 of the Health and
S Safety Code that promote home ownership.
9 (13) For purposes of this subdivision, the local government's
10 initial subsidy shall be equal to the fair market value of the home
I I at the time of initial sale minus the initial sale price to the
12 moderate-income household,plus the amount ofany downpayment
13 assistance or mortgage assistance. I f upon resale the market value
14 is lower than the initial market value, then the value at the time of
15 the resale shall be used as the initial market value.
16 (C) For purposes of this subdivision, the local government's
17 proportionate share of appreciation shall be equal to the ratio of
18 the local government's initial subsidy to the fair market value of
19 the home at the time of initial sale.
20 (3) (A) An applicant shall be ineligible for a density bonus or
21 ally other incentives or concessions under this section ifthe housing
22 development is proposed on any property that includes a parcel or
23 parcels on which rental dwelling units are or, ifthc dwelling units
24 have been vacated or demolished in the five-year period preceding
25 the application, have been subject to a recorded covenant,
26 ordinance, or law that restricts rents to levels affordable to persons
27 and families of lower or very low income; subject to any other
2S form of rent or price control through a public entity's valid exercise
29 of its police po\ er, or occupied by lower or very low income
30 households, unless the proposed housing development replaces
31 those units, and either of the following applies:
32 (i) The proposed housing development, inclusive Of' tile units
33 replaced pursuant to this paragraph. contains affordable units at
34 the percentages set forth in subdivision (b).
35 (ii) Each unit in the development. exclusive of a manager's unit
36 or units. is affordable to, and occupied by, either a lower or very
37 low income household.
3S (13) For the purposes of this paragraph, "replace" shall mean
39 either of the following:
97
56
Ali571 —K-
1 (i) 11' any dwelling units described in subparagraph (A) are
2 occupied on the date of application, the proposed housinn_
3 developnncnt shall provide at least the same number of twits of
4 equivalent sire to be made available at atfordable rent or affordable
5 housing cost to, and occupied by, persons and families in the same
6 or lower income category as those households in occupancy. If
7 the income category of the household in occupancy is not known,
3 it shall be rebuttably presumed that lower income renter households
9 occupied these units in the same proportion of lower income renter
10 households to all renter households within the jurisdiction, as
I I determined by the most recently available data from the United
12 States Department of flousirn, and Urban Development's
13 Comprehcnsiyc Housing, Affordability Strategy database. For
14 unoccupied dwelling units described in subparagraph (A) in a
15 development with occupied units. the proposed housings
16 development shall provide units of' equivalent sire to be made
17 available at affordable rent or affordable housine cost to. and
IS occupied by, persons and families in the same or lower income
19 category as the last household in occupancy. Ifthe income category
20 of the last household in occupancy is not known, it shall be
21 rebuttably presumed that lower income renter households occupied
22 these units in the same proportion of lower income renter
23 households to all renter households within the jurisdiction, as
24 determined by the most recently available data from the United
25 States Department of Housing and Urban Development's
26 Comprehensive Housing Afibrdability Strategy database. All
27 replacement calculations resulting in fractional units shall be
28 rounded up to the next whole number. If the replacement units will
29 be rental dwellins units, these units shall be subject to a recorded
30 affordability restriction for at least 55 years. If the proposed
31 development is for-sale units, the units replaced shall be subject
32 to paragraph (2).
33 (ii) If all dwelling units described in subparagraph (A) have
34 been vacated or demolished within the fie-year period preceding
35 the application, the proposed housing development shall provide
36 at least the sanne number of units of equivalent size as existed at
37 the highpoint of those units in the five-year period preceding the
38 application to be made available at affordable rent or affordable
39 housing cost to. and occupied by, persons and families in the same
40 or lower income catcuory as those persons and families in
97
57
-9— AB571
1 occupancy at that time, it' known. If the incomes of'the persons
2 and families in occupancy at the highpoint is not known, it shall
3 be rebuttably presumed that low-income and eery tow income
4 renter households occupied these units in the same proportion of
5 low-income and very low income renter households to all renter
6 households within the jurisdiction, as determined by the most
7 recently available data from the United States Department of'
S Housing and Urban Development's Comprehensive Housing
9 A[Tordability StrateLw database. All replacement calculations
10 resulting in fractional units shall be rounded up to the next whole
I I number. If the replacement units will be rental dwelling units,
12 these units shall be subject to a recorded affordability restriction
13 for at least » years. If the proposed development is for-sale units,
Id the units replaced shall be subject to paragraph (2).
15 (C) Notwithstanding subparagraph (13), for any dwelling unit
16 described in subparagraph (A) that is or was, within the five-year
17 period preceding the application, subject to a form of'rent or price
IS control through a local government's valid exercise ol' its police
19 power and that is or was occupied by persons or families above
20 lower income, the city, county, or city and county may do either
21 ofthe lollowin<_,:
22 (i) Require that the replacement units be made available at
23 affordable rent or affordable housing cost to, and occupied by,
24 low-income persons or families. If'the replacement units will be
25 rental dwelling units, these units shall be subject to a recorded
26 affordability restriction for at least 55 years. If the proposed
27 development is for-sale units, the units replaced shall be subject
28 to paragraph (2).
29 (ii) Require that the units be replaced in compliance with the
30 jurisdiction's rent or price control ordinance, provided that each
31 unit described in subparagraph (A) is replaced. Unless otherwise
32 required by tile jurisdiction's rent or price control ordinance. these
33 units shall not be subject to a recorded affordability restriction.
34 (D) Iror purposes of' this paragraph, "equivalent size" means
35 that the replacement units contain at least the same total number
36 of bedrooms as the units being replaced.
37 (E) Subparagraph (A) does not apply to an applicant seeking a
38 density bonus for a proposed housing development it' the
39 applicant's application was submitted to, or processed by, a city,
40 count\,, or city and county before January 1, 2015.
97
58
AB 571 - to-
(d) (I) An applicant for a density bonus pursuant to subdivision
2 (b) may submit to a city, county, or city and county a proposal for
3 the specific incentives or concessions that the applicant requests
4 pursuant to this section, and may request a meeting with the city,
5 county. or city and county. The city,. county, or city and county
6 shall Brant the concession or incentive requested by the applicant
7 unless the city, county. or city and county makes a written finding,
S based upon substantial evidence, of any of the followine:
9 (A) The concession or incentive does not result in identifiable
10 and actual cost reductions, consistent with subdivision (k). to
1 I provide for affordable housing costs, as defined in Section 50052.5
12 of the Health and Safcty Code, or for rents for the targeted units
13 to be set as specified in subdivision (c).
14 (13) "hhe concession or incentive would have a specific, adverse
15 impact. as defined in paragraph (2) of subdivision (d) of Section
16 65589.5, upon public health and safety or the physical environment
17 or on any real property that is listed in the California Register of
IS Historical Resources and for which there is no feasible method to
19 satisfactorily mitigate or avoid the specific, adverse impact without
20 rendering the development unafiordable to low-income. and
21 moderate-income households.
22 (C) The concession or incentive would be contrary to state or
23 federal law.
24 (2) The applicant shall receive the following number of
25 Incentives or concessions:
26 (A) One incentive or concession for projects that include at least
27 10 percent of the total units for lower income households, at least
28 5 percent for very low income households. or at least 10 percent
29 for persons and families of moderate income in a common interest
30 development.
31 (13) Two incentives or concessions for projects that include at
32 least 17 percent of the total units for lower income households, at
33 least 10 percent for very low income households, or at least 20
34 percent for persons and families ofrnoderate income in a common
35 interest development.
36 (C) Three incentives or concessions for projects that include at
37 least 24 percent of the total units for lower income households, at
38 least 15 percent for very low income households, or at least 30
39 percent for persons and families of moderate income in a common
40 interest development.
97
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— II — AB571
1 (D) Four incentives or concessions for projects meeting the
2 criteria of subparagraph (G) of paragraph (I) of subdivision (b).
3 If the project is located within one-half mile of a major transit stop,
4 the applicant shall also receive a height increase of up to three
5 additional stories, or 33 feet.
6 (3) The applicant may initiate judicial proceedings if the city,
7 county, or city and county refuses to grant a requested density
S bonus, incentive, or concession. Ira court finds that the refusal to
9 grant a requested density bonus, incentive, or concession is in
10 violation of this section. the court shall award the plaintill'
I I reasonable attorneys fees and costs of suit. Nothing in this
12 subdivision shall be interpreted to require a local government to
G grant an incentive or concession that has a specific, adverse impact,
14 as defined in paragraph (2) orsubdivision (d) of Section 65589.5.
15 upon health, safety, or the physical environment, and for which
16 there is no feasible method to satisfactorily mitigate or avoid the
17 specific adverse impact. Nothing in this subdivision shall be
IS interpreted to require a local government to grant an incentive or
19 concession that would have an adverse impact on any real property
20 that is listed in the California Register of Historical Resources.
21 The city, county, or city and county shall establish procedures for
22 carrviOU out this section that shall include legislative body approval
23 ofthc means of compliance with this section.
24 (4) The city. county, or city and county shall bear the burden
25 of proof for the denial of a requested concession or incentive.
26 (e) (1) In no case may a city, county, or city and county apply
27 any development standard that will have the ellect of physically
28 precluding the construction of a development meeting the criteria
29 or subdivision (b) at the densities or with the concessions or
30 incentives permitted by this section. Subject to paragraph (3), an
31 applicant may submit to a city, county, or city and county a
32 proposal for the waiver or reduction ofdevelopment standards that
33 will have the effect of physically prechiding the construction of a
34 development meeting the criteria of subdivision (b)at the densities
35 or with the concessions or incentives permitted under this section.
36 and may request a meeting with the city,county, or city and county.
37 If a court finds that the refusal to grant a waiver or reduction of
38 development standards is in violation of this section, the court
39 shall award the plaintiff reasonable attorneys fees and costs of
40 suit. Nothing in this subdivision shall be interpreted to require a
97
60
AB571 — 12 -
1 local government to waive or reduce development standards ifthe
2 waiver or reduction would have a specific, adverse impact, as
3 defined in paragraph (2) of subdivision (d) of Section 65589.5,
4 upon health. safety, or the physical environment, and for which
5 there is no feasible method to satisfactorily mitigate or avoid the
6 specific adverse impact. Nothing in this subdivision shall be
7 interpreted to require a local government to waive or reduce
8 development standards that would have an adverse impact on any
9 real property that is listed in the California Register of Historical
10 Resources, or to grant anv waiver or reduction that would be
I I contrary to state or federal law.
12 (2) A proposal for the waiver or reduction of development
13 standards pursuant to this subdivision shall neither reduce nor
14 increase the number of' incentives or concessions to which the
15 applicant is entitled pursuant to subdivision (d).
16 (3) A housing development that receives a waiver from any
17 maxiInUn controls on density pursuant to clause (ii) of
18 subparagraph (D) of paragraph ( )) of'subdivision (1) shall only be
19 eliuible for a waiver or reduction of development standards as
20 provided in subparagraph (D) of paragraph (2) of subdivision (d)
21 and clause(ii)of subparagraph (D)of'paragraph (3)of subdivision
22 (t), unless the city, county. or city and county agrees to additional
23 waivers or reductions ol'development standards.
24 (f) For the purposes of this chapter. "density bonus" means a
25 density increase over the otherwise maximum allowable gross
26 residential density as of the date of application by the applicant to
27 the city, county, or city and county, or, if'ciccted by the applicant.
28 a lesser percentage of density increase, including, but not limited
29 to, no increase in density.The amount of density increase to which
30 the applicant is entitled shall vary according to the amount by
31 which the percentage of affordable housing units exceeds the
32 percentage established in subdivision (b).
33 (1 ) For housing developments meeting the criteria of
34 subparagraph (A) of paragraph (I) oi'subdivision (b), the density
35 bonus shall be calculated as follows:
36
37 Percentage Loge-Income Units Percentage Density
38 13onus
39 0 20
40 21.
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- 13— AB571
I 12 23
2 13 24.5
3 14 26
4 1 i 27.5
5 16 29
6 17 30.5
7 IS 32
S 19 33.5
9 20 35
10 21 3 S.75
11 22 42.5
12 23 46.25
13 24 50
14
15
16
17
1S
19
20
21
23
24 (2) I-or housin, developments meeting the criteria of
25 subparagraph (B) ofparagraph (I) of subdivision (b). the density
26 bonus shall be calculated as follows:
27
28 Percentage Very Low Income Units Percentage Density Bonus
79 20
30 6 22.5
31 7 25
32 S 27.5
33 9 30
34 10 32.5
35 11 35
36 12 38.75
37 13 42.5
33 14 46.25
39 15 50
40
97
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AB571 — 14—
1
3
4
5
6
7
S
9
10
II
12
13 (3) (A) For housing developments meeting the criteria of
14 subparagraph (C) of paragraph (I) of subdivision (b), the density
15 bonus shall be 20 percent of the number of'senior housing units.
16 (B) For housing developments meeting the criteria of
17 subparagraph (E) c f paragraph (1) of subdivision (b), the density
I S bonus shall be 20 percent of the number of the type of units giving
19 rise to a density bonus under that subparagraph.
20 (C) For housing developments meeting the criteria of
21 subparagraph (F) of paragraph (1) of subdivision (b), the density
22 bonus shall be 35 percent of the student housing units.
23 (D) For housing developments meeting the criteria of
24 subparagraph(G)of paragraph (I)of subdivision (b), the fol lowing
25 shall apply:
26 (i) Except as otherwise provided in clause (ii), the density bonus
27 shall be SO percent of the number of units for lower income
28 households.
29 (ii) If the housing development is located within one-half mile
30 of a major transit stop, the city, county, or city and county shall
31 not impose any maximum controls on density.
32 (4) For housing developments meeting the criteria of
33 subparagraph (D) of paragraph (I) of subdivision (b), the densitn-
34 bonus shall be calculated as follows
35
36 Percentage Moderate-Income knits Percentage Density 13onus
37 10 5
3S Il 6
39 1'_ 7
40 13 S
m
63
- 15— AB571
I 14 9
2 15 10
3 16 11
4 17 12
5 IS 13
6 19 14
7 20 15
8 21 16
9 22 17
10 23 IS
11 24 19
12 25 20
13 26 21
14 27 22
15 28 23
16 29 24
17 30 25
t8 31 M
19 32 27
20 33 2S
21 34 29
22 35 30
23 36 31
24 37 32
25 38 33
26 39 34
27 40 35
28 41 3S.75
29 42 425
30 43 46.25
3 I 44 50
32
33 (5) All density calculations resulting in fractional units shall be
34 rounded up to the neXL whole number. The granting of' density
35 bonus shall not require, or be interpreted, in and of itself, to require
36 a general plan amendment, local coastal plan amendment, zoning
37 change, or other discretionary approval.
3S (6) Affordable housing impact fees, including inclusionary
39 zoning4�--�.fees and in-lieu ices, and publie benefit shall not
40 be imposed on a housing development's allordable units.
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All 571 — 16-
1 (g) (1) When an applicant for a tentative subdivision map,
2 parcel map, or other residential development approval donates
3 land to a city, count\', or city and county in accordance with this
=4 subdivision, the applicant shall be entitled to a I5-percent increase
5 above the otherwise maximum allowable residential density for
6 the entire development, as follows:
7
S Percentage Very Low Income Percentage Density Bonus
9 10 15
10 11 16
II 12 17
12 13 Is
13 14 19
Id 1S 20
15 16 21
16 17 22
17 IS 23
18 19 24
19 20 25
20 21 26
21 ?2 27
27 23 23
23 24 29
24 25 30
25 26 31
26 27 32
27 2s 33
28 29 34
29 30 35
30
31 (2) "this increase shall be in addition to any increase in density
32 mandated by subdivision (b), up to a maximum combined mandated
33 density increase of 35 percent if an applicant seeks an increase
34 pursuant to both this subdivision and subdivision (b). All density
35 calculations resulting in fractional units shall be rounded up to the
36 next whole number. Nothing in this subdivision shall be construed
37 to enlarge or diminish the authority of a city, county, or city and
38 county to require a developer to donate land as a condition of
39 development. An applicant shall be eligible for the increased
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1 density bonus described in this subdivision ifall of the followine
2 conditions are met:
3 (A) The applicant donates and transfers the land no later than
4 the date of approval of the final subdivision map, parcel map, or
5 residential development application.
6 (13) The developable acreage and zoning classification of the
7 land being transferred are sulTicient to permit construction ofunits
S affordable to very low income households in an amount not less
9 than 10 percent of the number of residential units of the proposed
10 development.
I 1 (C) The transferred land is at least one acre in size or of
12 sufficient sire to permit development of at least 40 units, has the
13 appropriate general plan designation, is appropriately zoned with
14 appropriate development standards for development at the density
15 described in paragraph (3) of subdivision (c) of Section 65533.2.
16 and is or will be served by adequate public facilities and
17 infrastructure.
IS (D) The transferred land shall have all of the permits and
19 approvals. other than building permits, necessary for the
20 development of the very low income housing units on the
21 transferred land, not later than the date of approval of the final
22 subdivision map, parcel map, or residential development
23 application, except that the local government may subject the
24 proposed development to subsequent design review to the extent
25 authorized by subdivision (i) of Section 65553-2 if the design is
26 not reviewed by the local uovernment before the time of transfer.
27 (E) The transferred land and the affordable units shall be subject
28 to a deed restriction ensuring- continued affordability of the units
29 consistent with paragraphs (1) and (2) of subdivision (c), which
30 shall be recorded on the property at the time of the transfer.
31 (P) The land is transferred to the local agency or to a housing
32 developer approved by the local agency. "ITie local agency may
33 require the applicant to identify and transfer the land to the
34 developer.
35 (G) The transferred land shall be within the boundary of the
36 proposed development or, if' the local agency agrees, within
37 onc-quarter mile of the boundary of the proposed development.
3S (1-1) A proposed source of funding for the very low income units
39 shall be identified not later than the date of approval of the final
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AB571 — Ix—
I subdivision map, parcel map, or residential development
2 application.
3 (h) (1) `,A'hcn an applicant proposes to construct a housing
4 development that conforms to the requirements ofsubdiyision (b)
5 and includes a childcare facility that will be located on the premises
6 of, as part of', or adjacent to, the project, the city, county, or city
7 and county shall grant either of the following:
S (A) An additional density bonus that is an amount of square
9 tcet of residential space that is equal to or greater than the amount
10 of square feet in the childcare facility.
II (13) An additional concession or incentive that contributes
12 si_nificantIv to the economic feasibility ofthe construction Of tile
13 childcare facility.
14 (2) The city, county, or city and county shall require, as a
15 condition ofapproving the housing development, that the following
16 occur:
17 (A) The childcare facility shall remain in operation for a period
IS of time that is as long as or longer than the period of time during
19 which the density bonus units are required to remain allordable
20 pursuant to subdivision (c).
21 (B) Ofthe children who attend the childcare lacility, the children
22 of very low income households, lower income households, or
23 families of moderate income shall equal a percentage that is equal
24 to or greater than the percentage of dwelling units that are required
25 for very logy income households, lower income households, or
26 families of moderate income pursuant to subdivision (b).
27 (3) Nothvithstanding any requirement of this subdivision, a city,
28 county, or city and county shall not be required to provide a density
29 bonus or concession for a childcare facility if it finds, based upon
30 substantial evidence, that the community has adequate childcare
31 facilities.
32 (4) ''Childcare tacility," as used in this section, means a child
33 daycare facility other than a family daycare home, including, but
34 not limited to, infant centers, preschools, extended daycare
35 facilities, and schoolage childcare centers.
36 (i) "Housing development,-- as used in this section, means a
37 development project for five or more residential units. including
38 mixed-use developments. Forthe Purposes Of this Section,"housins
39 development" also includes a subdivision or common interest
40 development, as defined in Section 4100 of the Civil Code,
7
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- 19— AB571
1 approved by a city, county, or city and county and consists of
2 residential units or unimproved residential lots and either a project
3 to substantially rehabilitate and convert an existing commercial
4 building to residential use or the substantial rehabilitation of an
5 existing Multif tmily dwelling. as defined in subdivision (d) of'
6 Section 65863.4. where the result of the rehabilitation would be a
7 net increase in available residential units. For the purpose of
8 calculating a density bonus, the residential units shall be on
9 conti_uous sites that are the subject of one development
10 application. but do not have to be based upon individual
I I subdivision maps or parcels. The density bonus shall be permitted
12 in geographic areas Of the housing development other than the
13 areas where the units for the lower income households are located.
14 (j) (I) The granting ofa concession or incentive shall not require
15 or be interpreted, in and of itself, to require a general plan
16 amendment, local coastal plan amendment, zoning change, study.
17 or other discretionary approval. For purposes of this subdivision,
18 "study" does not include reasonable documentation to establish
19 eligibility for the concession or incentive or to demonstrate that
20 the incentive or concession meets the definition set forth in
21 subdivision (k). This provision is declaratory of existing law.
22 (2) Except as provided in subdivisions (d) and (c), the granting
23 ofa density bonus shall not require or be interpreted to require the
24 waiver of a local ordinance or provisions ofa local ordinance
25 unrelated to development standards.
26 (k) For the purposes of' this chapter, concession or incentive
27 means any of the following:
28 (I) A reduction in site development standards or a modification
29 ot'zoning code requirements or architectural design requirements
30 that exceed the minimum building standards approved by the
31 California Building Standards Commission as provided in Part 2.5
32 (commencing with Section 18901) of Division 13 of the Health
11
33 and Safety Code, including. but not limited to, a reduction in
34 setback and square footage requirements and in the ratio of'
35 vehicular parking spaces that would otherwise be required that
36 results in identifiable and actual cost reductions, to provide for
37 affordable housing costs, as defined in Section 50052.5 of the
38 Health and Safety Code. or for rents for the targeted units to be
39 set as specified in subdivision (c).
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1 (2) Approval of mixed-use zonin. in conjunction with the
2 housing project ifcornmercial, office, industrial, or other land uses
3 will reduce the cost of the housing development and if the
4 commercial, office, industrial, or other land uses are compatible
5 with the housing project and the c.xistin.> or planned development
6 in the area where the proposed housing project will be located.
7 (3) Other regulatory incentives or concessions proposed by the
8 developer or the city, county, or city and county that result in
9 identifiable and actual cost reductions to provide for alTordable
10 housing costs, as defined in Section 50052.5 of' the Health and
I I Safetv Code. or for rents fix the targeted units to be set as specified
12 in subdivision (c).
13 (/) Subdivision (k) does not limit or require the provision of
14 direct financial incentives for the housing development, including
15 the provision of publicly owned land, by the city, county, or city
16 and county, or the waiver of fees or dedication requirements.
17 (m) This section does not supersede or in any way alter or lessen
18 the effect or application of the California Coastal Act of 1976
19 (Division 20 (commencing with Section 30000) of the Public
20 Resources Code). Any density bonus. concessions, incentives,
21 waivers or reductions of development standards, and parking ratios
22 to which the applicant is entitled under this section shall be
23 permitted in a manner that is consistent with this section and
24 Division 20 (commencing with Section 30000) of' the Public
25 Resources Code.
26 (n) If'permitted by local ordinance, nothing in this section shall
27 be construed to prohibit a city, county, or city and county from
28 granting a density bonus greater than what is described in this
29 section for a development that meets the requirements of this
30 section or from granting a proportionately lower density bonus
31 than what is required by this section for developments that do not
32 meet the requirements of'this section.
33 (o) For purposes of this section, the following definitions shall
34 apply:
35 (1) "Development standard" includes a site or construction
36 condition, including, but not limited to, a height limitation, a
37 setback requirement, a floor area ratio, an onsne open-space
38 requirement, or a parking ratio that applies to a residential
39 development pursuant to any ordinance, general plan element.
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-21 — AB571
1 specific plan. charter. or other local condition, lacy, policy,
2 resolution, or regulation.
3 (2) "Located withiit one-ha I I'm ileofamajortran sit stop' means
4 that any point on a proposed development, for which an applicant
5 seeks a density bonus, other incentives or concessions, waivers or
6 reductions of development standards. or a vehicular parking ratio
7 pursuant to this section, is within one-half mile of any point on
S the property on which a major transit stop is located, including
9 any parkinu tot owned by the transit authority or other local agency
10 operating the major transit stop.
I 1 (3) "Major transit stop" has the same meaning as defined in
12 subdivision (b) of Section 21 155 of the Public Resources Code.
13 (4) `'Maximum allowable residential density" means the density
14 allowed under the zoning ordinance and land use element of the
15 general plan, or, if a range of density is permitted, means the
16 maximum allowable density for the specific zoning range and land
17 use clement of the general plan applicable to the project. If the
IS density allowed under the zoning ordinance is inconsistent with
19 the density allowed under the land use element ofthe general plan,
20 the general plan density shalt prevail.
21 (p) (I) Except as provided in paragraphs (2), (3), and (4), upon
22 the request of the developer. a city,county, or city and county shall
23 not require a vehicular parking ratio. inclusive of parking for
24 persons with a disability and guests,of a development meeting the
25 criteria of subdivisions (b) and (c), that exceeds the following
26 ratios:
27 (A) Zero to one bedroom: one onsite parking space.
28 (B) Two to three bedrooms: one and one-half onsite parking
29 spaces.
30 (C) Pour and more bedrooms: two and one-half parking spaces.
31 (2) (A) Notwithstanding paragraph (1), if a development
32 includes at least 20 percent tow-income units for housing
33 developments meeting the criteria of'subparagraph (A)of paragraph
34 (I) of subdivision (b) or at least I I percent very to%y income units
35 for housing developments meeting the criteria of subparagraph
36 (13) of paragraph (I) of subdivision (b), is located within one-half
37 mile of a major transit stop, and there is unobstructed access to
3S the major transit stop from the development, then, upon the request
39 of the developer, a city.county,or city and county shall not impose
97
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Ali 571 —??—
1 a vehicular parking ratio, inclusive of parking for persons with a
2 disability and guests, that exceeds 0.5 spaces per unit.
3 (13) For purposes of this subdivision, it development shall have
4 unobstructed access to a major transit stop if a resident is able to
5 access the major transit stop without encountering natural or
6 constructed impediments. For purposes of this subparagraph.
7 `natural or constructed impediments" includes, but is not limited
S to, freeways, rivers, mountains. and bodies of water, but does not
9 include residential strictures, shopping centers, parking lots, or
10 rails used for transit.
I 1 (3) notwithstanding paragraph (1), if' a development consists
12 solely of rental units, exclusive of a manager's unit or units, with
13 an affordable housine cost to lower income families, as provided
14 in Section 50052.5 of the Health and Safety Code, then, upon the
15 request of the developer, a city, county, or city and county shall
16 not impose vehicular parking standards if the development meets
17 either of the following criteria:
Is (A) The development is located within one-half mile of a major
19 transit stop and there is unobstructed access to the major transit
20 stop from the development.
21 (13) The development is a for-rent housing development for
22 individuals who are 62 years of age or older that complies with
23 Sections 51 .2 and 51.3 of the Civil Code and the development has
24 either paratransit service or unobstructed access, within one-half
25 mile, to fixed bus route service that operates at least eight times
26 per day.
27 (4) Notwithstanding paragraphs (1) and (S). if a development
2S consists solely of rental units, exclusive of a managers unit or
29 units, with an affordable housine cost to lower income families.
30 as provided in Section 50052.5 ofthe Health and Safety Code, and
31 the development is either a special needs housing development,
32 as defined in Section 51312 of the Health and Safety Code. or a
33 supportive housing development, as defined in Section 50675.14
34 of the Health and Safety Code, then, upon the request of the
35 developer, a city, county, or city and county shall not impose any
36 minimum vehicular parking requirement. A development that is
37 a special needs housing development shall have either paratransit
38 service or unobstructed access, within one-half mile. to fixed bus
39 route service that operates at least eight times per day.
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1 (5) If the total number of parking spaces required for a
2 development is other than a whole number, the number shall be
3 rounded up to the next whole number. I-or purposes ol' this
4 subdivision, a development may provide onsite parking through
5 tandem parking or uncovered parking, but not through onstreet
6 parking.
7 (6) This subdivision shall apply to a development that meets
S the requirements of subdivisions(b)and (c), but only at the request
9 of the applicant. An applicant may request parking incentives or
10 concessions beyond those provided in this subdivision pursuant
I I to subdivision (d).
12 (7) This subdivision does not preclude a city. county, or city
13 and county from reducing or eliminating a parking requirement
14 for development projects of any type in any location.
15 (S) Notwithstanding paragraphs (2) and (3), if a city, county,
16 city and county, or an independent consultant has conducted an
17 areawide orjurisdictionwide parking study in the last seven years.
IS then the city, county, or city and county may impose a higher
19 vehicular parking ratio not to exceed the ratio described in
20 paragraph(1), based upon substantial evidence found in the parking
21 study, that includes, but is not limited to, an analysis of parking
22 availability, differing levels of transit access, walkability access
23 to transit services, the potential for shared parking, the effect of
24 parking requirements on the cost of market-rate and subsidized
25 developments,and the lower rates of car ownership for low-income
26 and very low income individuals, including seniors and special
27 needs individuals. The city, county. or city and county shall pay
28 the costs of any new study. The city. county, or city and county
29 shall make findings, based on a parking study completed in
30 conformity with this paragraph, supporting the need for the higher
31 parking ratio.
32 (9) A request pursuant to this subdivision shall neither reduce
33 nor increase the number ol'incentives or concessions to which the
34 applicant is entitled pursuant to subdivision (d).
35 (q) Each component ofany density calculation, including base
36 density and bonus density, resulting in fractional units shall be
37 separately rounded up to the next whole number. The Legislature
3S finds and declares that this provision is declaratory ofexisting law.
39 (r) This chapter shall be interpreted liberally in favor of
40 producing the maxinuim number of total housing units.
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1 (s) Notwithstanding any other law, if a city, including a charter
2 city, county, or city and county has adopted an ordinance or a
3 housing program, or both an ordinance and a housing program,
4 that incentivizes the development ofa(Tordable housing that allows
5 for density bonuses that exceed the density bonuses required by
6 the version of this section effective throueh December 31, 2020,
7 that city, county, or city and county is not required to amend or
S otherwise update its ordinance or corresponding affordable housing
9 incentive program to comply with the amendments made to this
10 section by the act addine this subdivision, and is exempt from
I complying with the incentive and concession calculation
12 amendments made to this section by the act adding this subdivision
13 as set forth in subdivision (d), particularly subparagraphs (C) and
14 (D)of paragraph(2)of that subdivision,and the amendments made
15 to the density tables under subdivision (f).
16 SEC. 2. No reimbursement is required by this act pursuant to
17 Section 6 of Article XIII B of the California Constitution because
is a local agency or school district has the authority to levy service
19 charges, fees, or assessments sufFicicnt to pay for the program or
20 level ofservice mandated by this act, within the m 4-Section
Section
21 17556 of the Government Code.
O
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'v[vfit�i[D
nrtvwuv�gvvr
cP0
I
117TEI CON CRESS
sSISTSFio', H. R. 2307
To create a Carbon DiNidend Trust G4ind for the American people in order
to encourage market-driven innovation of clean energy technologies and
market efficiencies which will rednec harmful pollution and leave a
healthier, more stable, and more prosperous Nation for firture genera-
tions.
IN THE HOUSE OF RLPRLSENTATIVPS
Ai,Ru, 1, 2021
1I1'. DEUTCH (for hmlSelf, 11r. \'IAIdNGwSKI, itils. Lsnoo, 11s. SCli.uwwsrv,
Mr. CRls,r, Mr. KILMER, All'. PETERS, A'fs. CHU, Air. CONNOLLY, Nk
CRAIG, Air. Nloltnu, Air. GARIBA,IAL, Nlr. RASKIN, ilir. SIRES, Air.
S-IEMIAN, NIr. CROW, illr. CORREA, his. SCASLON, Mr. JOHNSON of
Georgia, 31s. PINGREE, All'. NIOULTON, IMS. Rnl'HAL-ALLuw, fir.
GAiLUIENDI, fir. EVANS, Mr. PHILLIPS, NIS. MENG, N'll'. C,VRDENAS, MS.
LEE of California, and \Ir. CARTWRIGHT) introduced the following bill;
which was referred to the Committee on Nays all(] ilieans, and in addi-
tion to the Committees on I nerg7 and Commerce, and Forcipl Affairs,
For a period to be subsequently determined by the Speaker, in each case
for consideration of such prolrisions as fall within the ,jurisdiction of the
committee concerned
A BILL
To create a Carbon Dividend Trust Pund for the American
people in order to encourage market-driven innovation
of clean energy- technologies and market efficiencies
which will reduce harmful pollution and leave a healthier,
more stable, and more prosperous Nation for future gen-
erations.
74
2
1 Be it enacted by lite Senate and House of'Representa-
2 lives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Energy Innovation and
5 Carbon Dividend Act of 2021.".
6 SEC. 2. FINDINGS.
7 The Congress finds that-
8 (1) efficient markets strengthen our economy
9 and benefit our Nation by encouraging competition,
10 innovation, and technological progress;
11 (2) efficient markets should reflect all costs of
12 goods to ensure that they advance America's pros-
13 perity and national interests;
l4 (3) emissions of carbon pollution and other
15 harmful pollutants into our Nation's air impose sub-
16 stantia,l costs on all Americans and on future gen-
17 crations; and
18 (4) creation of. a Carbon Dividend Trust Fund,
19 to be distributed to the American people, NNU make
20 markets more efficient, create jobs, and stimulate
21 competition, innovation, and technological progress
22 that benefit all Arnericans and future generations.
23 SEC. 3. CARBON DIVIDENDS AND CARBON FEE.
24 The Internal Revenue Code of 1986 is amended by
25 adding at the end the following new subtitle:
•HR 2307 ni
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3
1 "Subtitle L—CARBON DIVIDENDS
2 AND CARBON FEE
"GILWrea 101. CARBON PEES.
"Cn. mat 102. CARBON Bomwit l''NH Audlls•rmn•.N9'.
3 "CHAPTER 101—CARBON FEES
"Sec. 9901. Definitions.
"Sec. 9902. Carbon fee.
"Sec. 9903. Emissions reduction schedule.
"Sce. 9904. Decommissioning of carlwn fee.
"Sec. 9905. Carbon Capture and Sequestration.
"Sec; 99W Administrative authority.
4 "SEC. 9901. DEFINITIONS.
5 "For purposes of this subtitle:
6 "(a) ADmINISTRA'rOlt.—'Phe term `Administrator'
7 means the Administrator of the Environmental 11rotection
8 Agency.
9 "(b) CARBON DIOXIDE El QUIVAI,ENT OR CO2-e.—` lIC
10 term `carbon dioxide equivalent' or `CO2-c' means the
l I number of metric tons of carbon dioxide emissions with
12 the same global warming• potential its one metric ton of
13 another greenhouse gas.
14 "(C) CARBON-INTENSIVE PRODUCT.—` IIC term `cat'-
15 bon-intensive product' means, as identified by the Sec-
16 rebu-3, by rule-
17 "(1.) for purposes of this chapter-
18 "(A) any manufactured or agricultural
19 product which the Secretary in consultation
20 with the Administrator determines is cmissions-
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4
1 intensive and trade-exposed, except that no cov-
2 erect fuel is a carbon-intensive product, and
3 "(13) until such time that the Secretary
4 promulgates rules identifying carbon-intensive
5 products, the folloN%ring shall be considered car-
6 bon-intensive products: iron, steel, steel mill
7 products (including pipe and tube), aluminum,
8 cement, glass (including flat, container, and
9 specialty glass and fiberglass), pulp, paper,
10 chemicals, or industrial ceramics, and
11 "(2) for purposes of.' chapter :102, any economic;
12 sector, or product: from that; sector, which the Sec-
13 rotary in consultation with the Administrator deter-
14 mines is prone to carbon leakage because it is ernis-
15 sions-intensive and trade-exposed, along NNrith other
16 pertinent criteria, except that no covered fuel is a
17 carbon-intensive product.
18 "(d) CARBON LEAKAGE.—The term `carbon leakage'
19 means an increase of global greenhouse gas emissions
20 which are substantially due to the relocation of greenhouse
21 gas sources from the United States to jurisdictions which
22 lack comparable controls upon greenhouse gas emissions.
23 "(e) COST OF CjUIBON OR CiARUON COSTS.—The
24 term `cost of carbon' or `carbon costs' means a national
25 or sub-national government policy which explicitly places
•HR 2307 [H
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I a price on g•rconhouso gas pollution and shall be limited
2 to either a tax on greenhouse gases or a system of cap-
3 and-trade. The cost of carbon is expressed as the price
4 per metric; ton of CO2-e.
5 "(f) COVERED EN'rrrY.—'I'lre term `covered entity'
6 means-
7 "(1) in the case of crude oil-
8 "(A) a refinery operating in the United
9 States, and
10 "(B) any importer of any pctrolcum or pe-
11 troleum product into the United States,
12 "(2) in the case of coal-
13 "(A) any coal mining operation in the
14 United States, and
15 "(13) any importer of coal into the United
16 States,
17 "('�� ) in the case of natural g•as-
18 "(A) any entity entering pipeline quality
19 natural gas into the natural gas transmission
20 system, and
21 "(13) any importer of natural gas into the
22 United States, and
23 "(4) any entity or class of entities which, as dc-
24 termined by the Secretary, is transporting, selling,
25 or otherMse using a covered fuel is a manner which
•HH 2307 IH
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6
1 emits a greenhouse gas to the atmosphere and which
2 has not been covered by the carbon fee or the carbon
3 border fee adjustment.
4 "(g) COVERED FUEL.—The term `covered fuel'
5 means crude oil, natural gas, coal, or any other product
6 derived from crude oil, natural gas, or coal which shall
7 be used so as to ernit greenhouse gases to the atmosphere.
8 "(h) CRUDE OIL.—The term `crude oil' means
9 unrefined petroleum.
10 "(i) Exl>owr.—Thc term `exhort' means to transport
11 a product from within the jurisdiction of the United States
12 to persons outside the United States.
13 "(j) FOSSIL F UEI,.—The term `fossil fuel' means
14 coal, coal products, petroleum, petroleum products, or nat-
15 Ural gas.
16 "(k) FULL FUEL CYCLE GREE,NHMITSE: GAS E\I1s-
17 SIOVS.—The term `full fuel cycle greenhouse gas cmis-
18 lions' means the greenhouse gas content of a covered fuel
19 plus that covered fuel's upstream greenhouse gas emis-
20 sions.
21 "(1) GLOBAL WARMINTO POTENTIAL.—The term
22 'global warming potential' means the Patio of the timc-
23 integrated radiative forcing from the instantaneous release
24 of one kilogram of a trace substance relative to that of
25 one kilogram of carbon dioxide.
.HR 2907 IH
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7
1 "(rn) GREENI-iousr:, GAS.—Thc term `greenhouse
2 gas' means carbon dioxide (CO2), methane (CI-I4), nitrous
3 oxide (N20), and other gases as defined by rule of the
4 Administrator.
5 "(n) G1tI:L:Ni-IpUBE GAS C'UN'N N'P.—Thc term
6 `greenhouse gas content' means the amount of greenhouse
7 gases of a product or a fuel, expressed in metric tons of
8 CO2-e, which would be emitted to the atmosphere by the
9 use of a covered fuel and shall include, nonexclusivcly,
10 emissions of carbon dioxide (CO2), nitrous oxide (N20),
11 methane (CI--14), and other greenhouse gases as identified
12 by rule of the Administrator.
13 "(o) GREENHOUSI; GAS term `green-
14 house gas effect' means the adverse effects of greenhouse
15 gases on health or welfare caused by the greenhouse gas's
16 heat-trapping potential or its cff.'ect on ocean acidification.
17 "(p) hii,owr.—Irrespective of any other definition in
18 law or treaty, the term `import' means to land on, bring
19 into, or introduce into any place subject to the jurisdiction
20 of the United States.
21 "(q) PETROLEUM.—The term `petroleum' means oil
22 removed from the earth or the oil derived from tar sands
23 or shale.
24 "(r) PRODUCTION GRrrNriocsr•, G.�s EmigSioNs.-
25 The term `production greenhouse gas emissions' means
•HR 2807 [H
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I the quantity of greenhouse gases, expressed in metric tons
2 of CO2-e, emitted to the atmosphere resulting from, non-
3 exclusively, the production, manufacture, assembly, trans-
4 portation, or financing of a product.
5 "(s) IJPSTiiErliu GKEEXxousE GAS EIMIsstGNs.-
6 The term `upstacana greenhouse gas emissions' means the
7 quantity of greenhouse gases, expressed in metric tons of
8 CO2-e, emitted to the atmosphere resulting from, non-
9 exclusively, the extraction, processing, transportation, fi-
10 nancing, or other preparation of a covered fuel for use.
l 1 "SEC. 9902. CARBON FEE.
12 "(a) CARBON I`1�7r.—There is hereby imposed a car-
13 bon fee on wiy covered entity's emitting use, or sale or
14 transfer for an emitting use, of any covered fuel.
15 "(b) AmoUNT of THE CARBON FEE rphe carbon
16 fee imposed by this section is an amount equal to-
17 "(1) the greenhouse gas content of the covered
18 fuel, multiplied by
19 "(2) the carbon fee rate.
20 "(C CAR.13ON I!t:E It:�91E.—Por purposes of this see-
21 tion-
22 "(1.) IN GEiNERtIL.—Thc Carbon fee rate, Rath
23 respect to any use, sale, or transfer during a cal-
24 enclar ,year, shall be-
-HI[ 2307 IH
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9
1 "(A) in the case of calendar year 2021,
2 $'15 per metric ton of CO2-c, and
3 "(I3) except as provided in paragraph (2),
4 in the case of any calendar year thereafter-
5 "(i) the carbon fee rate in effect
6 colder this subsection for the preceding cal-
1 endar year, plus
8 "(ii) $10.
9 "(2) EXCEPTIONS.-
10 "(A) INCREASED CARBON FEE RATE
11 APTER NLISSED ANNUAL, EMISSIONS REDUCTION
12 rARGIYr.—Lu the case of any year immediately
13 following a year for which the Secretary deter-
14 mines Lender section 9903(b) that the actual
15 emissions of greenhouse gases from covered
16 fuels exceeded the emissions reduction target
17 for the previous year, paragraph (1)(13)(ii) shall
18 be applied by substituting `$15' for the dollar
19 amount othemise in effect for the calendar year
20 under such paragraph.
21 "(13) CESSATION OP CARBON PEE RATE, IN-
22 CREASE AP'rER MvrivIN EALISSION REDUCTIONS
23 ACHIEVED.—In the case of ally year inune-
24 diately folloN�6ng a year for which the Secretary
25 determines under 9903(b) that actual emissions
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1 of greenhouse gases from covered fuels is not
2 more than 10 percent of the greenhouse gas
3 emissions from covered fucls during the year
4 2010,. paragraph (1)(13)(ii) shall be applied by
5 substituting `$0' for the dollar amount other-
6 wise in effect for the calendar year hiller such
7 paragraph.
8 "(3) INPLATION AnaosTMENT.—Ir1 the case of
9 any calendar year after 2021., each of the dollar
10 amounts in paragraphs (1)(13) and (2)(A) shall be
11 increased by an amount equal to-
12 "(A) such dollar amount, multiplied by
13 "(13) the cost-of-living acdjustnient deter-
14 mined under section 1(f)(3) for the calendar
15 year, determined by substituting `calendar year
16 201.0' for `calendar year 201.6' in subparagraph
17 (A.)(ii) thereof.
18 "(d) EXEMPTION AND R,r• FUND.—Tile Secretary
19 shall prescribe such rules as are necessary to ensure the
20 fee imposed by this section is not imposed Mth respect
21 to any nonemitting use, or any sale or transfer for a non-
22 emitting use, including rules providing for the refund of
23 any carbon fee paid wider this section with respect to any
24 such use, sale, or transfer.
25 "(c) Exio tPTIOvs.—
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1 "(1 ) AGRICULTURE.-
2 "(A) FUi i,.—If ally covered fuel or its de-
3 rivative is used on it fa Fin for a Farming pUr-
4 pose, the Secretary shall pay (without interest)
5 to the ultimate purchaser of such covered fuel
6 or its derivative, the total amount of carbon
7 fees previously paid Upon that covered fuel or
8 its derivative, as specified by rule of the See-
9 retary.
10 "(13) PARM, FARMING USE, A\D FARMING
II PURPOSE.—Thc terms Tarm', 'farming Use',
12 and 'farming purpose' shall have the respective
13 meanings given such terms under section
14 6420(c).
15 "(C) OTHER GREENHOUSP GASES ENfls-
16 SIONS FROM AGRICULTURE.—The carbon fee
17 shall not be lc,,�ed upon non-fossil fuel green-
18 house gas emissions which occur on a farm.
19 "(2) ARnnr:I) FORCES 0p TiIE UN,ITi•:D
20 STATES.—If any covered fuel or its derivative is
21 used by the Armed Forces of the United States as
22 supplies for vessels of war, vehicles, or electrical
23 power generation equipment, the Secretary shall pay
24 (Without interest) to the ultimate purchaser of such
25 covered fuel or its derivative, the total amount of
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l carbon fees previously paid upon that covered feel or
2 its derivative, as specified by rule of the Secretary.
3 "SEC. 9903. EMISSIONS REDUCTION SCHEDULE.
4 "(a) IN GENEHk1,.—An emissions reduction schedule
5 for greenhouse gas emissions from covered fuels is hereby
6 established, as follows:
7 "(1) RLFEI. ENCE STAR.—'Che net greenhouse
8 gas emissions during the year 20.1.0 shall be the ref-
9 erence amount; of emissions and shall be determined
10 fron the `Inventoy of U.S. Greenhouse Gas Emis-
11 lions and Sinks: 1990-20.10' published by the Em5-
12 ronmental Protection Agency in April of 2012.
13 "(2) EMISSIONS 1tEDUCTIOV T.altclrl .—The
14 first emission reduction target shall be for the year
15 2023. The emission target for each year thereafter
16 shall be the previous year's target emissions minus
17 a percentage of emissions during the reference year
18 determined in accordance with the folloNNring table:
"Year Emissions Reduction Target
2010 Reference veto.
2021 to 2022 No emissions reduction target
2023 to 2030 5 ImTent of 2010 emissions per year
2031 to 2050 3 Ix:rcent of 2010 emismotis per year
19 "(b) ADMINISTRATnTE DETER\iINATION.—Not later
20 than 60 clays after the beginning of each calendar year
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1 beginning after the enactment of this section, the Sec-
2 rotary, ill c011sultation �6th the Administrator, shall cletcr-
3 mine whether actual emissions Of greenhouse gases from
4 covered fuels exceeded the emissions reduction target for
5 the preceding calendar year. The Secretary shall make
6 such determination using the same, or appropriately up-
7 elated, greenhouse gas accounting method as was used to
8 determine the net greenhouse gas emissions in the `Inven-
9 tort' of U.S. Greenhouse Gas Emissions and Sinks: 1990-
10 2010' published by the Environmental Protection Agency
11 in April of 2012.
12 "SEC. 9904. DECOMMISSIONING OF CARBON FEE.
13 "(a) IN GENEILM,.—At such time that-
14 "(1.) the Secretary determines Cooler 9903(b)
15 that actual emissions of greenhouse gases from cov-
16 eyed fuels is not more than 10 percent of the green-
17 house gas emissions during the year 201.0, and
18 "(2) the monthly carbon dividend payable to an
19 aclult eligible individual has been less than $20 for
20 3 consecutive years,
21 the Secretary shall decommission in an orderly manner
22 programs administering the carbon fee, the carbon border
23 fee adjustment, and the Carbon Dividend Trust Fund.
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1 "(b) INPL:vPION ADJUSTMENT.—In the case of any
2 calendar year after 2021, the $20 amount under sub-
3 section (a)(2) shall be increased by an amount equal to-
4 "(1.) such dollar amount, multiplied by
5 "(2) cost-of-living adjustment determined cooler
6 section l.(f)(3) for the calendar year, determined by
7 substituting `Calendar year 2020' for `calencar year
8 2010' in subparagraph (A)(ii) thereof.
9 "SEC. 9905. CARBON CAPTURE AND SEQUESTRATION.
10 "(a) IN GENEILU,.—`1'he Secretary, in consultation
1 1 with the Administrator and the Secretary of Energy, shall
12 prescribe regulations for malting payments as provided in
13 subsection (b) to qualified facilities which capture and se-
14 quester qualified carbon dioxide or sequester qualified car-
15 bon dioxide obtained from one or more qualified facilities.
16 "(b) P,MMEN,r AmOUNTS.-
17 "(1) IN GENERAL.—The Secretary shall make
18 payments to a qualified facility in the same manner
19 as if such payment was a refund of an overpayment
20 of the carbon fee innposed by section 9902, in cases
21 in which such qualified facilit3-
22 "(A) uses any covered f.'uel-
23 "(i) with respect to whicli the carbon
24 fee has been paid, and
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1 "(ii) which resuhs in the emission of
2 qualified carbon dioxide,
3 "(13) captures such emitted, or an equiva-
4 lent amount of, qualified carbon dioxide, and
5 "(C)(i) sequesters such qualified carbon di-
6 oxide in a manner which is safe, permanent,
7 and in compliance with any applicable local,
8 State, and Federal laws, or
9 "(ii) utilizes such qualified carbon dioxide
10 or an equivalent amount of carbon dioxide in a
11 manner provided in paragraph (3)(C).
12 "(2) A\IOIJNT OP RETUND.—The payment de-
13 termined under this section shall be an amount
14 equal to the lesser of.'-
15 "(A)(i) the adjusted metric tons of quali-
16 red carbon dioxide captured and sequestered or
17 utilized, multiplied by
18 "(ii) the carbon fee rate during the ,year in
19 which the carbon fee was imposed by section
20 9902 upon the covered fucl to which such car-
21 bon dioxide relates, or
22 "(B) the amount of the carbon fee imposed
23 by section 9902 with respect to such covered
24 fuel.
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1 "(3) DEFINITIONS AND SPECIA1. ItumEs.—For
2 purposes of this section-
3 "(A) QUALIPIED CARBON DTO- IDE; QUALI-
4 PIED FACILITY.-
5 "(i) QUALIFIED CA1tBON DIOXIDE.-
6 The term `gw:llifird carbon dioxide' has the
7 same Incanillo given such term I.Indcr sec-
8 tion 45Q(c).
9 "(ii) QUAIAPIPD PACIIATY.—'rhe term
10 `qualified facility' mca.ns any industrial fa-
1 1 cility at which carbon capture equipment is
12 placed in service.
13 "(B) ADJtJs,mI i) 'I'O'I.m, METRIC TONS.-
14 The adjusted total metric tons of qualified car-
15 bon dioxide captured anCI segLiCstered or utilircd
16 shall be the total metric tons of qualified carbon
17 dioxide captured and sequestered or utilized, re-
18 duced by the amount of any carbon dioxide like-
19 ly to escape and be emitted into the atmosphere
20 due to imperfect storage technology or other-
21 NNrisc, as determined by the Secretary in con-
22 sultation «rith the Administrator.
23 "(C) UTILIZATION.—'I'h0 SM-CU11y, in
24 consultation with the Administrator, shall es-
25 tablish regulations proNriding for the methods
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1 and processes by which qualified carbon dioxide
2 may be utilized so as to exelucle that qualified
3 carbon dioxide safely and permanently from the
4 atmosphere. Utilization may include the produe-
5 Lion of substances such as but not limited to
6 plastics and chemicals. Such regulations shall
7 minimize the escape or further emission of the
8 qualified carbon dioxide into the atmosphere.
9 "(D) SEQUESTRATION.—Not later than
10 540 clays after the (late of the enactment of. this
11 section, the Secretary, in consultation with the
12 Administrator, shall prescribe regulations iden-
13 tif'ying the conditions under which carbon cliox-
14 ide may be safely and permanently sequestered.
15 "(4) COORDINATIOV WITII CREDIT FOR CARBON
16 DIOIIDE SEQUESTRATION.—At such time that the
17 Secretary prescribes regulations implementing this
18 section, no payment under this section shall be al-
19 lowed to it twxpaver to whom a credit has been al-
20 lowed for any taxable ,year under section 45Q.
21 "SEC. 9906. ADMINISTRATIVE AUTHORITY.
22 "(a) IN GENERAL.-TlIC Secretary In consultation
23 with the Administrator shall prescribe such regulations,
24 and other guidance, as may he necessary to carry out the
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I purposes of this subtitle and assess and collect the carbon
2 fee imposed by section 9902.
3 "(b) SPECIFIC:\LLY.—Such regulations and g7.iidance
4 shall includc-
5 "(1) the identification of an effective point in
6 the production, distribution, or use of a covered fuel
7 for collecting such carbon fee, in such a manner so
8 as to minimize administrative burden and maximize
9 the extent to which hill file] cycle greenhouse gas
10 emissions from covered fuels have the carbon fee lev-
11 ied upon them,
12 "(2) the identif.`ication of covered entities which
13 shall be liable for the payment of the carbon fee,
14 requirements for the monthly payment of
15 such fees,
16 "(4) as may be necessary or convenient, rules
17 for distinguishing between different types of covered
18 fuels,
19 "(5) as may be necessary or convenient, rules
20 for distinguishing between a covered fuel's green-
21 house gas content and its upstream greenhouse gas
22 emissions,
23 "(6) rules to ensure that no covered fuel has
24 the carbon fee or carbon border fee adjustment im-
25 posed upon it more than once, and
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1 "(7) ruleS to ensure that the domestic imple-
2 mentation of the carbon fee coordinate with the im-
3 plementation of the carbon border fee adjustment of
4 chapter 102.
5 "CHAPTER 102—CARBON BORDER FEE
6 ADJUSTMENT
"See. 9908. C3rimn Voider fee a(Ijustment.
"Sce. 9909. Administration of the carbon border fee adjustment.
"See. 9910. Apnea Lion of Carbon I)omer fee mijustment reveimes.
"See. 9911. TI eaties and ie ternatio esl eegotiations.
7 "SEC. 9908. CARBON BORDER FEE ADJUSTMENT.
8 "(a) 1� GEM'iiw,.—The fees imposed by, and re-
9 funds allowed under, this section shall be referred to as
10 the `carbon border fee adjustment'.
11 "(b) PuR1 ou..—The purpose of the carbon border
12 fee adjustment is to protect animal, plant, and human life
13 and health, to conserve exhaustible; natural resources by
14 preventing carbon leakage, and to facilitate the creation
15 of international agreements.
16 "(c) 11113012TS TO THE UNITED STATES.-
17 "(1) I.MP011TED COVEItED FUELS FEE.—In the
18 case of any person that imports into the United
19 States any covered fuel, there shall be imposed a fee
20 equal to the total carbon fee that would be imposed
21 on the fuel's greenhouse gas content under the do-
22 mestic carbon fee, including processing emissions.
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1 "(2) IMPORTED CARBON-INTFNSIVF p32ODUCTS
2 PGI7.—In the case of any person that imports into
3 the United States any carbon-intensive product,
4 there shall be imposed a fee equal to the total car-
5 bon fee which would have accumulated upon the
6 greenhouse gas content of the imported carbon-in-
7 tensive product had the imported carbon-intensive
8 product been produced domestically and subject to
9 the domestic carbon fee.
10 "(3) (MODIFICATIONS.—The Secretary shall
11 make an administrative determination of whether
12 any class of imported covered fuels or class of im-
13 ported carbon-intensive product is carrying any total
14 foreign carbon cost. The Secretary shall make a dc-
15 termination of whether international law or the en-
16 hancement of global greenhouse gas mitigation ef-
17 forts require that those foreign cost of carbon be de-
18 ducted from the border carbon fee adjustment deter-
19 mined in subsection (c)(1) or subsection (d)(1).
20 "(4) PORFIGN' COST OP CARBON; FORFIGN CAR-
21 Bo-N COSTS.—For purposes of this subsection, the
22 term `foreign cost of carbon' or `foreign carbon cost'
23 means the explicit price a foreign jurisdiction places
24 upon the emission of greenhouse gas pollution to the
25 atmosphere through law or regulation. Such price
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1 shall be expressed as the price per metric ton of
2 CO2-c.
3 "(d) REPuND rn Em,owrs FROM UNITED
4 STATES.-
5 "(.1) COVERED FUELS.—Under regulations pre-
6 scribed by the Secretary, in the case of a covered
7 fuel produced in the United States with respect to
8 which the fee under section 9902 was paid, there
9 shall be allowed as a credit or re(iind (without inter-
10 est) to any exporter of such covered fuels an amount
11 equal to the total carbon fee levied upon the ex-
12 ported covered fuel up to the time of its exportation,
13 including processing emissions. Any such credit or
14 refound shall be allowed in the same manner as if it
15 were an overpayment of tax imposed by section
16 9902.
17 "(2) CARBON-INTENSIVE PRODUCTS.—Under
18 regulations prescribed by the Secretary, there shall
19 be allowed a credit or refund (without interest) to
20 exporters of carbon-intensive products manufactured
21 or produced in the United States an amount equal
22 to the total carbon fees accumulated upon the green-
23 house gas content of the exported carbon-intensive
24 product up to the time of exportation. Any such
25 credit or rcfiuul shall be allowed in the same manner
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I as if it were an overpayment of.' the fee imposed by
2 section 9902 or 9904.
3 "SEC. 9909. ADMINISTRATION OF THE CARBON BORDER
4 FEE ADJUSTMENT.
5 "(a) GENER.,W,Y.—The Secretary in consultation
6 with the Administrator shall prescribe regulations and
7 guidance which implement the carbon border fee actjust-
8 ntent under section 9908.
9 "(b) COLLAI30RXHO\.—hi administering any aspect
10 of the border carbon fee adjustment it is the sense of Con-
11 gross that the Secretary should collaborate with author-
12 ized officers of any jurisdiction, including sub-national
13 governments, affected by the carbon border fee adjust-
14 meat.
15 "(e) NIETHODOLOGY.—In administering the border
16 carbon fec adjustment, the Secretary shall use methodolo-
17 gies, procedures, and data which as may be necessary or
18 convenient-
19 "(1.) disaggregate it product's greenhouse gas
20 content;
21 "(2) are ronsistent with international law and
22 facilitate international cooperation;
23 "(3) in the case of incomplete data, use cus-
24 tomary methods of interpolation that favor enhanced
25 mitigation and facilitate international cooperation;
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1 "(4) avoid the double pricing of greenhouse gas
2 emissions; and
3 "(5) harmonize the border carbon fee adjust-
4 meat Nvith the domestic carbon fee so as to ensure
5 all covered fuels used in the United States are sub-
6 ject to the carbon fee.
7 "(d) Scmmmj ,,.—The Secretary shall-
8 "(1) begin implementation the border carbon
9 fee adjustment for covered fuels at the same time as
10 the implementation of the carbon fee; and
11 "(2) begin implementation of the border carbon
12 fee adjustment for carbon-intensive products within
13 two years of the date of the enactment of the En-
14 orgy Innovation and Carbon Dividend Act of 2021 .
15 "(e) PROCEDURE.—The Secretary shall-
16 "(1) establish fair, timely, impartial, and as
17 necessary confidential procedures by which the im-
18 porter of any carbon-intensive product or any cov-
19 erect fuel may petition the Secretary to revise the
20 Secretary's determination or its border carbon fee
21 adjustment liability calculated under section
22 9905(c)(1);
23 "(2) establish fair, timely, impartial, and as
24 necessary confidential procedures by which any es-
25 porter of any product from the United States may
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1 petition the Secretary to include that exported prod-
2 uct on the list of carbon-intensive products; and
3 "(3) establish fair, timely, impartial, and as
4 nccessaiy confidential proccdures by which the ex-
5 porter of any carbon-intensive product or any cov-
6 Bred fuel may petition the Sceretaiy to revise the
7 Secretary's determination of its border carbon fee
8 adjustment refund calculated under section 9908(d).
9 "(f) SHIPMENTS PROM THE 111vITFD STATES TO I'M;]
10 Ti.muTomp.,s oI. rlrus UNrrrn STATrs.—Notwith-
11 standing any other treaty, law, or policy, shipments of cov-
12 Bred fuels or carbon-intensive products from the United
13 States to Guam, the United States Virgin islands, Amer-
14 ican &unoa, Puerto Rico, and the Northern Afariana Is-
15 lands shall be eligible for a refund of the carbon fee under
16 section 9908(d).
17 "(g) IMPORTS TO TIIF TERRITORIES 01-1 THE UNITED
18 STATPS.—Notwithstanding any other treaty, la%v, or pol-
19 icy, imports of covered fuels or carbon-intensive products
20 to Guam, the United States Virgin Islands, American
21 Samoa, Puerto Rico, and the Northern Mariana Islands
22 shall not be subject to section 9908(c).
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1 "SEC. 9910. ALLOCATION OF CARBON BORDER FEE ADJUST-
2 MENT REVENUES.
3 "'l'lic revenues collected under this chapter may be
4 used to supplement appropriations made available in fiscal
5 years 2022 and tllereaftcr-
6 "(1) to U.S. Customs and Border Protection, in
7 such amounts as arc necessary to administer the
8 carbon border fee adjustment, then
9 "(2) to the Green Climate Fund, created by dc-
10 cision 3/CP.17 adopted at the 17th Conference of
11 the Parties to the United Nation Framework Con-
12 vcntion on Climate Changc held in Durban, Novem-
13 ber 28 to December 111 2011.
14 "SEC. 9911. TREATIES AND INTERNATIONAL NEGOTIA-
15 TIONS.
16 "(a) CONFOIZAIANCF. WITH INTE1tNA•rIONA1, `P11EA-
17 TIES.—In the case that the Appellate Body of the World
18 'Grade Organization, or any other authoritative inter-
1.9 national trcaty interpreter, shall find any portion of the
20 carbon border fcc adjustment under this chapter to violate
21 any treaty to which the United States is a party, the Sec-
22 rotary of State is authorized to alter that aspect of such
23 carbon border fee adjustment found to violate a treaty ob-
24 ligation so as to bring the carbon border fee adjustment
25 into conformance with international law.
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1 "(b) INTERNATIONAL NEGOTIATIONS.—The Con-
2 gress finds the international mitigation of greenhouse gas
3 emissions to be of national importance. Therefore, the
4 Congress encourages the Secretary of State, or the See-
5 retaiy's designee, to commence and complete negotiations
6 Nvith other nations Niith the goal of forming treaties, envi-
7 ronmental agreements, accords, partnerships or any other
8 instrument that effectively reduces global greenhouse gas
9 emissions to zcro percent of 2010 levels by 2050 and
10 which respect the principle of common but differentiated
I 1 responsibilities and respective capabilities.
12 "(C) SUSPENSION OF THE CARBON BORDER FEE, AD-
13 JUSTINIENT.—T11C Secretary may suspend the border car-
14 bon fee adjustment, in whole or in part-
15 "(1.) when, in the determination of the Sec-
16 reta17, a country has implemented greenhouse gas
17 mitigation policies sufficient to contribute to a global
18 net reduction of greenhouse gas emissions to zero by
19 2050. In making such determination, the Secretary
20 may partially suspend particular provisions of the
21 carbon border fee adjustment. In making the cleter-
22 urination, the Secretary shall Cousalt «ith the i1fi-
23 porting country. In making the determination, the
24 Secretary shall follow all existing treaty obligations.
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1 The Secretary shall review any carbon border fee ad-
2 justment suspension at least every 5 ,years, or
3 "(2) by treaty or other international agreement
4 that meets the criteria of section 99.11(c)(1) and in-
5 eludes provisions for the suspension of the border
6 carbon fee adjustment.".
7 SEC. 4. ESTABLISHMENT OF THE CARBON DIVIDEND TRUST
8 FUND.
9 (a) IN GEmm_-uL.-Subchapter A of: chapter 98 of the
10 Internal Revenue Code of 1986 is amended by adding at
I 1 the end the following:
12 "SEC. 9512. CARBON DIVIDEND TRUST FUND.
13 "(a) ESTABLISIBIE.NT AND F IINDING.—There is
14 hereby established ill the Treasury of the United States
15 a trust fund to be known as the `Carbon Di-,ridend 'Trust
16 Fund', consisting of such amounts as uiay be appropriated
17 to Such trustfiuld as provided Form this section.
18 "(b) TIZr1NSPEIZS TO THE CAP130iV' DIVIDEND 1111jU8q'
19 FUND.—There is hereby appropriated to the Carbon Divi-
20 dcnd Trust Fund amounts equal to the fees received into
21 the Treasury less any amounts refunded or paid under
22 section 9902(d) or 9905 of chapter 101 for each month.
23 in the trust f.'und
24 shall be available for the following purposes:
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1 "(1) Ai)mINISTRATIVE EXPENSES.—So mach of
2 the ex3mnses necessary to administer the Carbon
3 Dividend Trust Find for each year, as does not ex-
4 cced-
5 "(A) in the case of the first 5 calendar
6 years ending after the date of the enactment of
7 this section, the administrative expenses for any
8 year may not exceed 8 percent of amounts ap-
9 propriated to the Carbon Di-,ridend Trust Fund
10 during such year, and
11 "(B) in the case of any calendar year
12 thereafter, 2 percent of the 5-year rolling aver-
13 age of the amounts appropriated to the Carbon
14 Dividend Trust Fund.
15 "(2) OTHER ADAIIXISWRLvmvI. EXPENSES.-SO
16 much of the expenses as are necessary to administer
17 chapter 101 for any year as does not to exceed 0.60
18 percent of the amounts appropriated to the Carhon
19 Dividend Trust: Fund for the previous year, and fur-
20 ther limited as follows:
21 "(A) The Department of the Treasury.
22 "(B) The Social Security Administration.
23 "(C) The Environmental Protection Agen-
24 cy.
25 "(D) Department of State.
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1 "(3) CARBON DIVIDEND PAYMENTS.-
2 "(A) IN GENERAL.—From the amounts in
3 the Carbon Dividend 'Trust fund made avail-
4 able tinder paragraphs (1.) and (2) of this sub-
5 section for any year, 1:11e Secretary shall for
6 each month beginning no more than 270 clays
7 after the date of the enaetment of the Energ3,
8 Innovation and Carbon Dividend Act of 202.1 ,
9 make carbon dividend payments to each eligible
10 indivndual.
11 "(B) PRO-R VPA SHARE.—A carbon divi-
12 dead payment; is one pro-rata share for cacti
13 adult, and half a pro-rata share for each child
14 under .19 years old, of amounts available for the
15 month in the Carbon Dividend 'Trust Fund.
16 "(C) EIAGIBLE INDIVIDUAL.—The terns
17 `eligible individual' means, with respect to any
18 month, any natural living person who has a
19 valid Social Security member or ULxpayer identi-
20 fication number and is a citizen of- lawful resi-
21 dent of the United States (other than any indi-
22 victual who is a citizen of any possession of the
23 United States and whose bona fide residence is
24 outside of the United States). The Secretary is
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1 authorized to verify an individUal's eligibility to
2 receive a carbon dividend payment.
3 "(D) PEI-' TRt ATstrNT OF PAYMENTS.-
4 Amounts paid under this subsection shall be in-
5 cludible in gross income.
6 "(Ili) FEDERAL PROGRA\{S AND PEDEALU:
7 ASSISTED PROct;.ums.—The carbon clMdend
8 amount received by any individual shall not be
9 talcen into account as income and shall not be
10 taken into account as resources for purposes of
11 determining the eligibility of such individual or
12 any other individual for benefits or assistance,
t3 or the amount or eAent of benefits or assist-
14 ance, under any Federal program or under any
15 State or local program financed in whole or in
16 part N%ith Federal fi.mcls.
17 "(P) ADVANCE PAYMENT.—The Secretary
18 shall transfer to the Carbon Diviciencl Trust
19 Fund such amounts as are necessary for the
20 disbursement of an advanced carbon dividend to
21 all eligible individuals as follows:
22 "(i) An advanced carbon dividend
23 shall be the same as the anticipated first
24 carbon dividend required to be distributed
25 under subparagraph (A) and shall be dis-
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1 tributed the month prior to the first collec-
t tion of the carbon fee.
3 "(ii) Total amounts disbursed as ad-
4 vanced carbon dividends shall be deducted
5 from the carbon dividends on a pro-rota
6 basis over the first 3 years after the dis-
7 bursement of the first carbon dividends.
8 "(d) AD\IINISTIbATR-r AUTHORITY.—The Secretary
9 shall promulgate rules, guidance, and regvlatiorls uScfril
10 and necessary to implement the Carbon Dividend Trust
1 I P und.
12 "(e) ASS[GNarrNT OP BiLm3rrPs.—The right of any
13 person to any future payment under this chapter shall not
14 be transferable or assignable, at law or in equity, and none
15 of the moneys paid or payable or rights existing under
16 subsection (c)(3) shall be suhjcet to execution, levy, at-
17 tachment, garnishment, or other legal process, or to the
18 operation of any bankruptcy or insolvency
19 (b) CLERICAL A-A1ENll.1E.NT.—The table of sections
20 For subchapter A of: chapter 98 of such Corte is amended
21 by adding at the end the following new item:
"Sec. 9512. Carbon Dividend 'I'mst fund.".
22 SEC. 5. LIMITED DISCLOSURE OF INFORMATION.
23 Scetion 6103(I) of the Internal Revenue Cocle of 1.986
24 is amended by adding at the end the following new para-
25 graphs:
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1 "(23) JAMITED DISCLOSURE OF IDENTITY I\-
2 FORMATION RELATING TO CARBON DIVIDEND PAY-
3 ivuwrs.-
4 "(A) DEPART.IENT OF TREASURY.—Ildi-
5 vidual identity information shall, without writ-
6 ten request, he open to inspection by or disclo-
7 sure to officers and employees of the Depart-
8 meat of the Treasury whose official duties re-
9 quire such inspection or disclosure for purposes
10 of administering section 9512 (relating the Car-
11 bon Dividend Trust fund).
12 "(13) COM-MISSIONER OF SOCIAL. SECU-
13 m,rY.—The Commissioner of Social Security
14 shall, on written request, disclose to officers
15 and employees of the Department of the Treas-
16 uiy individual identity information which has
17 been disclosed to the Social Security Adminis-
18 tration as is necessary to administer section
19 9512.
20 "(C) RESTRICTION ON DISCLOSURE.—In-
21 formation disclosed under this paragraph shall
22 be disclosed only for purposes of, and to the ex-
23 tent necessary in, carr3nng out section 9512.".
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1 SEC. 6. NATIONAL ACADEMY OF SCIENCES REVIEW OF CAR-
2 BON FEE AND EMISSIONS REDUCTION
3 SCHEDULE.
4 (a) IN GIINItRAI,.—Not later than 5 years after the
5 (late of the enactment of this Act, the Secretary of Energy
6 shall enter into an agreement with the National Academy
7 of Sciences to prepare a report relating to the carbon fee
8 imposed by section 9902 of the Internal Revenue Code of
9 1986 and the emissions reductions schedule established
10 under section 9903 of such Code.
I 1 (b) RM'O T REQUIRE.AIr;NTS.—Such report shall-
12 (1) assess the efficiency and effectiveness of.' the
13 carbon fee in achieving the emissions reduction tar-
14 gets set forth in section 9903 of such Code;
15 (2) describe and make recommendations on
16 whether the carbon fee rate and annual increases
17 prescribed by section 9902(c) of such Code should
18 be adjusted in order to optimize the efficiency and
19 effectiveness of this Act in achieving the emissions
20 reduction targets set forth in section 9903 of such
21 Code;
22 (3) describe the potential of the carbon fee to
23 achieve future emissions targets set forth in section
24 9903(a) of such Code through the year 2050;
25 (4) describe and evaluate the effectiveness of
26 the carbon fee in reducing emissions from key sec-
.FIR 2307 m
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34
1 tors of the economy, including sectors of the ccon-
2 omy that have decreased their carbon emissions, sec-
3 tors of the economy that have increased their carbon
4 emissions, and sectors of the economy in which car-
5 bon emissions have not changed;
6 (5) make findings and recommendations to
7 Federal departments and agencies and to Congress
8 on actions that could be taken to reduce carbon
9 emissions in the sectors of the economy in which
10 carbon emissions have not decreased;
11 (6) make findings and recommendations on ad-
12 ,justiug regulations enacted under the Clean Air Act
13 and other Federal laws that affect economic sectors
14 aehie-6ng the emissions reductiml targets set forth in
15 scetion 9903 of such Code; and
16 (7) provicle an assessment of any other factors
17 determined to be material to the program's effi-
18 cicncy and effectiveness in achieving the goals set
19 forth in this Act.
20 (C) REPORT (MADE PLJm,icI.,Y AVA LABLf .—NOt later
21 than one year after the rcNiew in subsection (a) has com-
22 mcneed, the Secretary of Energy shall submit to Congress
23 the report required under subsection (a). Such report shall
24 be made electronically available to the public and open to
.HR 2307 IH
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35
1 public comment for at; least 60 clays before the final sub-
2 mission to Congress.
3 SEC. 7. IMPACT OF CARBON FEE. ON BIOMASS USE AND
4 CARBON SINKS.
5 (a) STUDY OP BIOMASS.—'l'Ire Secretary of Energy
6 shall enter into an agreement with the National Academy
7 of Sciences and the Administrator of the Environmental
8 Protection Agency to conduct a study, make recommenda-
9 tions, and submit a report regarding the impact of the
10 carbon fee on the use of biornass as an encrg5- source and
1 1 the resulting impacts on carbon sinks and biodiversity.
12 (b) STUDY 13EQUntE. 1EN'rs.—` lic study conducted
13 under subsection (a) by the National Academy of Sciences
14 shall include analysis, documentation, and determinations
15 on-
16 (1) the carbon fee and its impact on the use of
17 biomass as an energy sourcc and greenhouse gas
18 emissions from the use of biomass as an energy
19 source;
20 (2) the impacts of the use of biomass as an en-
21 ergry source on carbon sinks and biodiversity; and
22 (3) the various types of biomass that arc being
23 used as an energy source.
24 (c) ttECO:.N[iIENDATIONS.—Based on the findings and
25 conclusions of the study, the National Academy of
.HH 2307 rH
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36
1 Sciences shall make recommendations to Federal depart-
2 meats and agencies and to Congress. The recommencla-
3 tions shall include any actions that should be taken to
4 mitigate impacts of the carbon fee on-
5 (1) increasing greenhouse gas emissions from
6 the use of biomass as an energy source; and
7 (2) degradation of carbon sinks and biodiversity
8 relating to the use of biomass as an energy source.
9 (d) ffiPOwr.—The National Academy of Sciences
10 shall prepare a report that includes any findings and rec-
II ommendations made pursuant to this section and, not
12 later than I8 months after the date of the enactment of
13 this Act, make such report electronically available to the
14 public.
15 SEC. 8. EFFECTIVE DATE.
16 The amendments made by this Act shall talc effect
17 on the elate of the enactment of this Act, except the carbon
18 fee under section 9902 of the Internal Revenue Code of
19 1986 shall apply to uses, sales, or transfers no more than
20 270 days after the date of the enactment of this Act.
21 SEC. 9. PRINCIPLE OF INTERPRETATION.
22 In the case of ambiguity, the texts of this statute and
23 its amending texts shall be interpreted so as to allow for
24 the most effective abatement of greenhouse gas emissions.
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37
1 SEC. 10. NO PREEMPTION OF STATE LAW.
2 (a) I� GENEitm,.—Nothing in this Act shall preempt
3 or supersede, or be interpreted to preempt or supersede,
4 any State law or regulation.
5 (b) No PRi,Emp,riov Or STATE COINDION LAW OR
6 STATUTORY CAUSES oI' ACTION.—Noting in this Act, nor
7 any standard, rule, requirement, risk evaluation, or assess-
8 meat created or implemented pursuant to this Act, shall
9 be construed to preempt any State common law or State
10 statutory law creating a remedy for civil relief.
O
•HR 2307 HI
110
Switzer, Donna
From: Estanislau, Robin
Sent: Friday, July 2, 2021 2:53 PM
To: Switzer, Donna
Subject: Fwd: 7/6/21 Council meeting
Attachments: IRC Input.pdf
Sent from my iPad
Begin forwarded message:
From: "Pikes. Cathy" <Cl-'ikes a surfcity-hb.org>
Date: Julv 2. 2021 at 12:46:54 PM PDT
To: "Carr. Kim" <Kim.Carr a surfcity-hb.org>, "Delgleize. Barbara"
<Barbara.Delgleizc a surfcity-hb.org>. "Pikes. Cathy" <CPikes o surfcity-hb.org>, "Kalmick.
Dan" <Dan.Kalmick «surfcity-Itb.org>. "Moser. Natalie" <Natalie.Moser a surfcity-hb.orc>.
"Peterson, Erik" <Irik.Peterson a surfcity-hb.org>. "Posey. Mike" <Mike.Posey a surfcity-
hb.org>
Cc: "Lstanislau. Robin" <Robin.Estanislau a surfcity-hb.ort>
Subject: FW: 7/6/21 Council meeting
FYI
From:James Martin <ja mesa martin5@outlook.com>
Sent: Friday,July 2, 2021 12:39 PM
To: Fikes, Cathy<CFikes@surfcity-hb.org>
Cc: Paul Horgan <pchorgan@gmail.com>
Subject: 7/6/21 Council meeting
plan to speak at the Council meeting. I have attached a file with input. Please provide the
input to the Council so that they will be able to see it while I speak.
Jim Martin
SUPPLEMENTAL.
COMMUNICATION
Meetlng pate: /lo /cp2/
Agenda hem No.
t
Climate Change Input to Huntington Beach IRC
Jim Martin
Huntington Beach Resident
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Climate Forcing
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This graph from the EPA website httns://www.eoa.aov/climate-indicators/climate-change-indicators-
chmate-forcing shows the climate forcing caused by human and natural sources since 1750. Changes
in energy from the sun are insignificant compared to those from human activity.
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Climate Change Indicators: Heat
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These graphs from the EPA website httns://www.epa,pov/climate-indicators/climate-change-indicators-
heat-waves show how heat waves have increased as climate change has progressed.
What is not shown is that climate change will progress for some time even if we stop using fossil fuels
today because of the emissions already in the air. The current air composition will lead to additional
climate change until a new equilibrium exists. We have not yet seen the damage from emissions to
date.