41998-41999

HEALTH AND SAFETY CODE
SECTION 41998-41999




41998.  (a) (1) The state board shall impose a three dollar ($3.00)
per gallon fee on every manufacturer of percholorethylene in the
state and on every person that imports perchloroethylene into the
state for use in dry cleaning.
   (2) The amount of the fee imposed pursuant to paragraph (1) shall
increase by one dollar ($1.00) per gallon on January 1, 2005, and
shall increase by one dollar ($1.00) each subsequent year, until
January 1, 2013, inclusive.
   (b) Moneys generated by the fee imposed pursuant to subdivision
(a) shall be deposited in the Nontoxic Dry Cleaning Incentive Trust
Fund, which is hereby established in the State Treasury.
   (c) Moneys deposited in the Nontoxic Dry Cleaning Incentive Trust
Fund are available for expenditure by the state board, upon
appropriation by the Legislature, to fund the grant program described
in Section 41999 and to fund the demonstration project described in
subdivision (f) of Section 41999. The state board shall allocate,
from the moneys derived from the imposition of the fee pursuant to
this section, moneys that it determines are sufficient to fund the
demonstration project described in subdivision (f) of Section 41999,
and shall utilize the remaining moneys to fund the grant program.
   (d) Not more than 5 percent of the moneys in the fund, calculated
annually, may be utilized by the state board to administer the grant
and demonstration programs.
   (e) The state board shall expend moneys from the fund, upon
appropriation by the Legislature, sufficient to repay any General
Fund moneys expended to implement the requirements of this article.




41999.  (a) The state board shall develop and establish a grant
program that provides incentives for dry cleaners in the state that
utilize perchloroethylene in their operations to transition to
utilizing dry cleaning systems determined by the state board, in
consultation with the Office of Environmental Health Hazard
Assessment, the State Water Resources Control Board, the Department
of Toxic Substances Control, and any other entity the state board
determines to be appropriate, to be nontoxic and nonsmog-forming.
   (b) To be eligible for a grant pursuant to this section,
applicants shall completely replace their percholorethylene-based dry
cleaning system with a system that the state board, in consultation
with the Office of Environmental Health Hazard Assessment, the State
Water Resources Control Board, the Department of Toxic Substances
Control, and any other entity the state board determines to be
appropriate, has determined to be nontoxic and nonsmog-forming. The
state board shall determine the eligibility of grant recipients.
   (c) The state board shall make grants available in the amount of
ten thousand dollars ($10,000) to any eligible dry cleaning operation
for the purchase of a professional dry cleaning system that uses a
nontoxic and nonsmog-forming process, as determined by the state
board, in consultation with the Office of Environmental Health Hazard
Assessment, the State Water Resources Control Board, the Department
of Toxic Substances Control, and any other entity the state board
determines to be appropriate.
   (d) The state board shall ensure that at least 50 percent of the
grant moneys provided pursuant to this section are awarded in a
manner that directly reduces air contaminants or reduces the public
health risk associated with air contaminants in communities with the
most significant exposure to air contaminants or localized air
contaminants, or both, including, but not limited to, communities of
minority populations or low-income populations, or both.
   (e) Commencing January 1, 2007, and every three years thereafter,
the state board shall provide a report to the Legislature evaluating
effectiveness of the grant program.
   (f) The state board shall establish a demonstration program to
showcase professional nontoxic and nonsmog forming dry cleaning
technologies in the state. The demonstration program shall require 50
percent matching funds to cover the costs of the demonstration
program. Any entity may contribute monies as matching funds,
including, but not limited to, a state or federal agency, an air
pollution control district or air quality management district, a
public utility district, or a nonprofit entity. Not more than 30
percent of the funds deposited annually in the Nontoxic Dry Cleaning
Incentive Trust Fund may be used for the demonstration program.