(a) For purposes of this section, the following definitions apply:

1. (1) “2.0L partial consent decree” means the October 25, 2016, Amended Partial Consent Decree among the State Air Resources Board, Volkswagen AG et al., and the United States Department of Justice in the United States of America v. Volkswagen AG et al., Case No. 16-cv-295 (N.D. Cal.).
2. (2) “Investment plans” mean the plans required to be submitted to the state board for approval pursuant to Appendix C of the 2.0L partial consent decree.
3. (3) “Lead agency” means the state agency appointed by the Governor to implement Appendix D of the 2.0L partial consent decree.
4. (4) “State board” means the State Air Resources Board.
5. (5) “Volkswagen” means the defendants in the United States of America v. Volkswagen AG et al., Case No. 16-cv-295 (N.D. Cal.).

(b)

1. (1) The state board shall strive to ensure that investments made pursuant to Appendix C of the 2.0L partial consent decree are aligned with the state’s priorities and provide for public transparency before approval.
2. (2) The lead agency shall strive to ensure that the expenditures made pursuant to Appendix D of the 2.0L partial consent decree are aligned with the state’s priorities and provide for public transparency before approval.

(c)

1. (1) On and after the effective date of this section, the state board, in approving each of the investment plans proposed by Volkswagen, shall strive to ensure, to the maximum extent allowable under the 2.0L partial consent decree, both of the following:

   1. (A) At least 35 percent of funds for the investment plan benefit low-income or disadvantaged communities disproportionately affected by air pollution.
   2. (B) The periodic submission of progress reports to the state board on the implementation of the investment plan from Volkswagen or its subsidiary.
2. (2) The state board shall approve each investment plan at a public hearing.
3. (3) The state board shall post each proposed investment plan for public comment.
4. (4) Notwithstanding Section 10231.5 of the Government Code and pursuant to Section 9795 of the Government Code, the state board shall report annually to the Legislature on the progress of the implementation of the investment plan.

(d)

1. (1) The lead agency shall strive to ensure, to the maximum extent allowable under the 2.0L partial consent decree, that 35 percent of the moneys received pursuant to Appendix D of the 2.0L partial consent decree benefit low-income or disadvantaged communities disproportionately affected by air pollution.
2. (2) Notwithstanding Section 10231.5 of the Government Code and pursuant to Section 9795 of the Government Code, the lead agency shall report annually to the Legislature on the proposed and actual expenditures of the moneys received pursuant to Appendix D of the 2.0L partial consent decree.