BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1532
                                                                       

                       SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                         Senator S. Joseph Simitian, Chairman
                               2011-2012 Regular Session
                                            
           BILL NO:    AB 1532
           AUTHOR:     Pérez, John A.
           AMENDED:    August 24, 2012
           FISCAL:     Yes               HEARING DATE:     August 29, 2012
           URGENCY:    No                CONSULTANT:       Peter Cowan
            
           SUBJECT  :    CALIFORNIA GLOBAL WARMING SOLUTIONS ACT: GREENHOUSE 
                          GAS REDUCTION FUND

            SUMMARY  :    
           
            Existing law  :

           1) Under the California Global Warming Solutions Act of 2006 
              (CGWSA): 

              a)    Requires the California Air Resources Board (ARB) to 
                 determine the 1990 statewide greenhouse gas (GHG) 
                 emissions level and approve a statewide GHG emissions 
                 limit that is equivalent to that level, to be achieved by 
                 2020, and to adopt GHG emission reduction measures by 
                 regulation, and sets certain requirements in adopting the 
                 regulations. ARB may include the use of market-based 
                 mechanisms to comply with these regulations. (Health and 
                 Safety Code §38500 et seq.).

              b)    Requires ARB to prepare and approve a scoping plan by 
                 January 1, 2009, for achieving the maximum technologically 
                 feasible and cost-effective reductions in GHG emissions 
                 from sources or categories of sources of GHGs by 2020. ARB 
                 must evaluate the total potential costs and total 
                 potential economic and noneconomic benefits of the plan 
                 for reducing GHGs to the state's economy and public 
                 health, using the best economic models, emission 
                 estimation techniques, and other scientific methods. The 
                 plan must be updated at least once every five years. 
                 (§38561).

           2) Establishes the Greenhouse Gas Reduction Fund (GHGRF) in the 









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              State Treasury and requires all moneys, except for fines and 
              penalties, collected pursuant to a market-based mechanism be 
              deposited in the fund. (Government Code §16428.8).

           3) Requires that prior to the expenditure of moneys appropriated 
              from the GHGRF a state agency prepare a record consisting of 
              a description of: a) each expenditure; b) how the proposed 
              expenditure will further the purposes of the CGWSA; c) how 
              the proposed expenditure will contribute to reducing GHG 
              emissions; d) how the agency considered the applicability and 
              feasibility of other objectives pursuant to the CGWSA; and e) 
              how the agency will document the result achieved by the 
              expenditure.  (§16428.9)

           4) Requires the Department of Finance submit to the Legislature, 
              in bill format, by January 10, 2013, a proposed detailed 
              spending plan that includes: (§16428.8):

              a)    Criteria and requirements for use of the moneys.

              b)    Establishment of program categories eligible for 
                 funding.

              c)    A specification for a public process that ARB must use 
                 to develop a long-term spending strategy.

              d)    The proposed role for the Legislature in reviewing the 
                 strategy.

           5) Specifies that #4 does not apply if the Legislature passes a 
              bill on or before August 31, 2013, that becomes law and 
              specifies a long-term spending strategy and includes the 
              components required of the plan in #4.
            
           This bill as amended by the Committee on July 2, 2012 (August 6, 
           2012 version of the bill)  : 

           1) Establishes the Greenhouse Gas Reduction Account (the 
              account) within the GHGRF and requires that all moneys 
              excluding penalties and fines collected pursuant to the CGWSA 
              be deposited in the account and available upon appropriation 
              by the Legislature for the purposes of carrying out the 
              CGWSA.









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           2) Requires no measure or programs be approved using money 
              appropriated from the account unless it is determined that 
              the use is consistent with the requirement of the use of 
              moneys derived from valid regulatory fees, as established by 
              the California Supreme Court in Sinclair Paint Co. v. State 
              Bd. of Equalization (1997).

           3) Requires that moneys must be used to facilitate the 
              achievement of feasible and cost-effective reductions of 
              greenhouse gas emissions in this state and the following 
              complementary goals:
              
              a)    Maximize economic, environmental, and public health 
                 benefits to the state.

              b)    Foster job creation by promoting in-state GHG emission 
                 reduction projects carried out by California workers and 
                 businesses.

              c)    Complement efforts to improve air quality.

              d)    Direct investment toward the most disadvantaged 
                 communities and households in the state.

              e)    Provide opportunities for small businesses, schools, 
                 affordable housing developers, water agencies, local 
                 governments, and other community institutions to 
                 participate in and benefit from statewide efforts to 
                 reduce GHG emissions.

           4) Provides that funds appropriated from the account may be 
              allocated for the purpose of reducing greenhouse gas 
              emissions in this state through investments that include, but 
              are not limited to, investments in: 

              a)    Clean and efficient energy including specified programs 
                 and projects.

              b)    Low-carbon transportation and infrastructure, including 
                 specified programs and projects.

              c)    Natural resource protection, including specified 









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                 programs and projects.

              d)    Research, development, and deployment of innovative 
                 technologies, measures, and practices related to programs 
                 and projects funded pursuant to this part; and specified 
                 categories for each of these investment areas.

           5) Specifies ARB and any other state agency identified by the 
              Legislature are the administering agencies and are required 
              to carry out programs to allocate moneys appropriated by the 
              Legislature using financial mechanisms, such as competitive 
              grants, loans, or other specified mechanisms.

           6) Requires ARB to adopt guidelines, pursuant to the 
              Administrative Procedure Act, to provide state agencies, 
              potential funding applicants and the public guidance 
              regarding the allocation and allowable uses of moneys. The 
              guidelines must, at a minimum, do all of the following:

              a)    Establish minimum criteria for receiving funding and 
                 additional criteria, as specified, that the state agencies 
                 shall take into account in establishing preferences for 
                 awarding moneys.

              b)    Provide a process to verify the qualifications of 
                 recipients.

              c)    Provide for the monitoring and, as deemed necessary, 
                 the audit of expenditures.

              d)    Establish minimum criteria and provide for the tracking 
                 of outcomes.

           7) Requires any state agency that allocates moneys as described 
              above adopt guidelines that are consistent with the 
              guidelines adopted by ARB pursuant 
              to #6.

           8) Requires ARB to develop and adopt, beginning April 1, 2013, 
              three investment plans for the time periods: 2013 to 2014, 
              2015 to 2017, and 2018 to 2020. Requires that each investment 
              plan identify, for the specified time period, the anticipated 
              expenditures of moneys appropriated from the account. Each 









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              investment plan must: a) analyze existing programs and 
              requirements that reduce GHG emission and identify gaps; b) 
              establish priorities for the allocation of moneys; c) 
              identify specific categories of programs and projects; d) 
              identify proposed levels of expenditures for each category; 
              and e) identify the state agencies best qualified to 
              implement the programs.

           9) Requires the Public Utilities Commission (PUC) to develop and 
              send to ARB an investment plan to be included in each 
              investment plan adopted by ARB. The plan must include its 
              requirements on how investor-owned utilities (IOUs) may use 
              moneys they might collect from allowance auctions pursuant to 
              cap-and-trade.

           10)Requires ARB, prior to adopting each investment plan, to 
              consult with the PUC to ensure the investment plan is 
              coordinated with, and does not conflict with or unduly 
              overlap with, any expenditure plan PUC might adopt.

           11)Requires ARB receive input from an advisory body that 
              includes the secretaries for the Natural Resources Agency, 
              the California Environmental Protection Agency (CalEPA), the 
              Department of Food and Agriculture, and the Business, 
              Transportation and Housing Agency; and to hold at least two 
              public workshops in different regions of the state and one 
              public hearing prior to adopting any investment plan. The 
              advisory body must participate in each public workshop on an 
              investment plan and provide testimony to the ARB on each 
              investment plan.

           12)Requires ARB to submit to the budget committees of both 
              houses each proposed investment plan or any amendment to an 
              adopted investment 30 days prior to adoption.

           13)Requires ARB to provide to the Governor a plan consistent 
              with the relevant investment plan detailing proposed 
              appropriations from the Account and that the Governor include 
              proposed appropriations as part of the annual January budget 
              proposal.

           14)Requires ARB to submit an annual report no later than 
              December 1 to the appropriate committees of the Legislature 









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              on the status of projects and their outcomes and any changes 
              ARB recommends to the investment plan and declares 
              legislative intent that the appropriations required for 
              implementation of these changes be included in the annual 
              Budget Act for the subsequent fiscal year.

            August 21, 2011 Senate Appropriations Committee Amendments  :

             1)   Delete provisions conflicting with current law regarding 
                the establishment of the GHGRF (see existing law #2).  

              2)   Add the mitigation of climate change impacts and effects 
                on the state's communities, economy, and environment, to 
                the list of complementary goals for the use of the GHGRF.  
                  
              3)   Clarify and identity additional potential purposes for 
                investments for moneys in the GHGRF.  

              4)   Require CalEPA to develop, and update every two years, a 
                methodology that identifies priority community areas based 
                on geographic, socioeconomic, and environmental hazard 
                criteria which may include: a) area adversely affected by 
                environmental pollution and hazards; b) areas that contain 
                or produce material that pose a significant hazard to 
                humans; c) areas with concentrations of low income, high 
                unemployment, low home ownership, high rent, and low levels 
                of education attainment.  
                  
              5)   Require ARB to develop guidelines for agencies for the 
                purposes of allocating moneys to projects that maximize 
                benefits for priority community areas pursuant to #4 above.  
                  
              6)   Authorize agencies to set aside a portion of appropriated 
                funds for projects that maximize benefits to priority 
                community investment areas.  Agencies must ensure 
                investments maximize the benefits for investments to 
                priority community areas through specified activities.

             7)   Strike the requirement for ARB to adhere to the 
                Administrative Procedure Act for the development of 
                guidelines for agencies, potential funding applicants, and 
                the public; and instead authorizes the guideline adoption 
                after ARB holds one or more public hearing.









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             8)   Add additional requirements for each of the three 
                investment plans including: 

                   a)        Maximizing benefit to priority community 
                     investment areas though specified activities.

                   b)        Identifying near and long-term GHG emissions 
                     reduction goals by sector including current and 
                     projected GHG emissions, progress toward sector GHG 
                     emission reduction goals, and the sectors progress 
                     compared to statewide GHG emissions targets.

                   c)        Listing and describing key measures and 
                     strategies the state relies on to achieve GHG 
                     emissions reductions including specified analysis for 
                     each measure or strategy.

                   d)        Analyzing gaps in current state strategies to 
                     reduce GHG emissions including: funding, policies, 
                     compliance, market preparedness, and state and local 
                     authority.

                   e)        Identifying programmatic investments of 
                     moneys, the expected GHG reduction and other 
                     cobenefits, the administering agency that will 
                     implement the investment, and other information ARB 
                     deems necessary.

             9)   Require that the Governor, if ARB in its report to the 
                Legislature finds that an investment plan did not allocate 
                25% of available moneys from the prior fiscal year to 
                priority community areas, include as part of the annual 
                budget submission allocations to investments in an amount 
                equal to the difference between 25% of the available moneys 
                and the total investments that benefited priority community 
                investment areas. This allocation must be in addition to 
                the 25% required for that fiscal year.

             10)  Require ARB in its annual report to the Legislature 
                describe how agencies have maximized the benefits of 
                investments to priority community investment areas, 
                including, but not limited to, the percentage of funds 









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                allocated to date that have been invested in priority 
                community investment areas.

            Amendments taken on the Senate Floor (August 24, 2012, version of 
           the bill) and subsequently referred to the Senate Committee on 
           Environmental Quality pursuant to Senate Rule 29.10  :

              1)   Strike the requirement that the state determine a 
                measure or program is consistent with requirements, as 
                established by the California Supreme Court in Sinclair 
                Paint Co. v. State Bd. Of Equalization prior to approving 
                funding.

              2)   Add specified investments to the specified purposes for 
                the use of GHGRF moneys.

              3)   Add specified criteria for CalEPA to consider when 
                developing a methodology that identifies priority 
                communities for investment, including areas with proximity 
                to sources that produce criteria and toxic air pollution 
                and area with high concentrations of sensitive populations.

              4)   Strike redundant requirements and add new requirements 
                to the GHGRF investment plans including, identifying GHG 
                emission reduction goals for sectors that do not have 
                targets. 

              5)   Require that if ARB and CalEPA find that less than 10% 
                of all available moneys from a fiscal year was invested in 
                priority community investment areas the Governor include in 
                the annual budget additional allocations to projects in 
                priority community investment areas equal to the difference 
                between 25% of the prior year's allocation and the actual 
                allocation.

              6)   Require ARB to hold one public hearing on the required 
                report prior to its submission to the Legislature.

           COMMENTS  :

            1) Back on 29.10  . Since the committee heard AB 1532 on July 2, 
              2012, amendments were taken in the Senate Appropriations 
              Committee and the on the Senate floor.  These amendments: a) 









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              make changes to conform to the natural resources budget 
              trailer bill, SB 1018; b) add mitigation of the impacts and 
              effects of climate change on the state's communities, 
              economy, and environment to the list of complementary goals 
              for the use of the GHGRF; c) add or expand several identified 
              investments to the specified purposes for the use of GHGRF 
              moneys; d) require CalEPA to develop a methodology that 
              identifies priority community investment areas using 
              specified criteria and requires that 25% of the available 
              moneys be allocated to projects in community investment 
              areas; e) make various changes to the analyses required in 
              each investment plan and the required annual report; f) 
              strike the requirement that a program be consistent with the 
              requirements established by the Sinclair nexus test (see 
              Comment #6 below); and g) rather than requiring the 
              guidelines for agencies, applicants, and the public be 
              adopted by the ARB pursuant to the Administrative Procedure 
              Act instead specifies the guidelines be adopted after one or 
              more public hearings.

            2) Proposed amendments  .  If AB 1532 is approved by the 
              Committee, the author is proposing further amendments to:  
                  
               a)    Require that the state not approve any funding until it 
                 determines that use furthers the regulatory purposes of 
                 the CGWSA.  

               b)    Strike requirements that the moneys be used only to 
                 achieve feasible and cost-effective GHG reductions.  
                  
              c)    Strike the specified list of eligible investments, and 
                 instead specify investments may include, but are not 
                 limited to, funding to reduce emissions through: 

                 i)         Energy efficiency, clean and renewable energy 
                      generation, transmission and storage and other 
                      related actions.

                 ii)        Development of advanced technology vehicles and 
                      vehicle infrastructure, advanced biofuels, 
                      state-of-the art goods movement, and efficient public 
                      transportation.










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                 iii)       Land and natural resource conservation and 
                      management, forestry, water use and supply, and 
                      sustainable agriculture.

                 iv)        Strategic planning and development of 
                      infrastructure.

                 v)         Increasing the in-state diversion of municipal 
                      solid waste from disposal through waste reduction, 
                      reuse and low-carbon recycled-content processing, 
                      manufacturing and other market development.

                 vi)        Community climate innovation programs that 
                      foster projects consistent with the above categories 
                      and are implemented by specified local entities.

                 vii)       Research, development, and deployment of 
                      innovative technologies or measures.

              d)    Strike the requirement that CalEPA develop a 
                 methodology for identifying priority community investment 
                 areas, instead requiring CalEPA to identify disadvantaged 
                 communities using specified criteria.

              e)    Require that the Department of Finance, rather than 
                 ARB, develop guidelines for administering agencies and 
                 strikes several requirements for those guidelines.

              f)    Require that the Department of Finance on behalf of the 
                 Governor and in consultation with ARB and other relevant 
                 state agencies, rather than ARB develop and submit to the 
                 Legislature the three investment plans, and strikes 
                 several requirements, including the analysis of GHG 
                 emissions by sector, and existing GHG emission reduction 
                 measures.

              g)    Strike the requirement for an advisory body, instead 
                 requiring the Climate Action Team along with the 
                 Secretaries of Agriculture and Labor and Workforce 
                 Agencies provide information to the Department of Finance 
                 to assist in the development of the investment plans.

              h)    Require the investment plan to allocate 25% of 









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                 available moneys to projects that provide benefits to 
                 disadvantaged communities, and 10% of available moneys to 
                 projects within disadvantaged communities, and strike 
                 provisions requiring any shortfall to be made up in the 
                 subsequent fiscal year.

              i)    Require that the Department of Finance, rather than ARB 
                 submit the annual report, strike several requirements for 
                 the report.

              j)    Authorize, upon appropriation, moneys in the GHGRF to 
                 be available for administrative purposes.

              aa)   Specifies that all loan repayments and all interest 
                 earning shall be deposited back into the GHGRF.

            3) Purpose of Bill  . According to the author, "there is no 
              current statutory direction as to the expenditure of the 
              revenue from Ýcap-and-trade allowance] auctions, whether for 
              eligible investments or criteria to use to differentiate 
              between potential projects, a process the State should use to 
              develop plans and programs for investment or direction on how 
              to ensure legislative oversight on the use of the funds? AB 
              1532 addresses the above issues by creating the Greenhouse 
              Gas Reduction Account, establishing the criteria and 
              requirements for use of the auction revenue, establishing the 
              program categories eligible for funding and defining a 
                                                                                  process that the ARB shall use to develop an investment plan 
              and the role of the legislature in reviewing it."

            4) Brief background on cap-and-trade  . The adopted cap-and-trade 
              regulation imposes a cap on the aggregate GHG emissions 
              allowed from "capped sectors." The entities covered within 
              these sectors constitute approximately 85% of all statewide 
              GHG emissions. Each year the cap declines, thus resulting in 
              a reduction in GHG emissions over time. To comply with the 
              cap, covered entities must surrender to the state a number of 
              "compliance instruments" equal to the amount of their GHG 
              emissions, as expressed in the equivalent metric tons of CO2. 
              The regulations describe two types of compliance instruments: 
              a) an "allowance" to emit GHGs, all of which are generated by 
              the state in an amount equal to the cap and; b) an "offset" 
              resulting from an emissions reduction achieved in an uncapped 









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              sector and generated by third party pursuant to a protocol 
              adopted by ARB. 

              Under the cap-and-trade regulation many of the allowances are 
              freely allocated to the covered entities, some are held in a 
              price containment reserve, and the remainder auctioned. 
              Allowances received or purchased can be traded, thus creating 
              an emissions market which according to ARB minimizes 
              compliance costs and encourages businesses to invest in GHG 
              emissions reductions. ARB plans to hold auctions quarterly 
              starting in November 2012, and moneys collected for 
              allowances sold at auction are deposited into the Air 
              Pollution Control fund, with the exception of allowances sold 
              on behalf of Investor Owned Utilities (IOUs).

              In fiscal year 2012-13 ARB plans to auction over 60 million 
              tons of allowances at a floor price of $10 per ton. The 
              amount of allowances auctioned declines in fiscal year 
              2013-14, before expanding as transportation fuels and natural 
              gas are brought into the cap-and-trade program. Barring a 
              change in the regulation as many as 230 million tons of 
              allowances will be auctioned in fiscal year 2015-16 which 
              will decline in subsequent years as the state approaches its 
              2020 limit.

              IOUs and publicly owned utilities (POUs) are allocated free 
              allowances to cover the majority of their emissions in order 
              to lessen impacts of CGWSA implementation on electricity 
              ratepayers. ARB requires IOUs to auction them all; POUs are 
              permitted, but not required, to offer their allowances 
              auction. The revenues from these auctions are then returned 
              to the IOUs to be used for ratepayer benefit in accordance 
              with an ongoing rulemaking at the PUC.

            5) Cap-and-trade revenues in the budget  . The Governor's budget 
              proposal estimated that fee revenues from the first set of 
              auctions will be $1 billion in the 2012-13 Budget, with 
              auctions planned for November 2012, February 2013, and May 
              2013.  Actual revenues cannot be known until the auctions 
              have been completed. 

              SB 1018, the natural resources budget trailer bill, 
              establishes the Greenhouse Gas Reduction Fund as a special 









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              fund in the State Treasury to receive all funds resulting 
              from cap-and-trade auctions. It also specifies that the fund 
              be appropriated in the annual Budget Act and requires the 
              Department of Finance to submit to the Legislature a proposal 
              for expenditure of the fund, unless the Legislature passes a 
              bill before August 31, 2012, specifying a process for 
              establishing a long-term spending plan with specified 
              requirements (see existing law #4 and #5). 
               
               SB 1018 also allows the PUC to allocate up to 15% of proceeds 
              from the auction of allowance distributed to IOUs for clean 
              energy and energy efficiency projects established by statute 
              and administered by the IOUs. The remainder of the IOU 
              allowance allocation proceeds must be credited directly to 
              residential, small business, and emissions-intensive 
              trade-exposed retail ratepayers.

            6) Sinclair Paint nexus test  . The Childhood Lead Poisoning 
              Prevention Act of 1991 required the Department of Health 
              Services to establish a regulatory fee on businesses that are 
              or were sources of lead contamination to implement various 
              lead poisoning programs. Sinclair Paint Company argued that 
              this regulatory fee was a tax because: a) the program 
              provides a broad public benefit, not a benefit to the 
              regulated business, and b) the companies that pay the fee 
              have no duties regarding the lead poisoning program other 
              than payment of the fee. The California Supreme Court upheld 
              the fee, as a "mitigation fee," ruling that the state may 
              impose fees on companies that make contaminating products and 
              use those proceeds to mitigate the adverse effects resulting 
              from those products. 

              According to an opinion received by the Legislative Analyst's 
              Office (LAO) from Legislative Counsel, revenues resulting 
              from ARB's cap-and-trade auctions would constitute 
              "mitigation fee" revenue, and be subject to the limitations 
              of the Sinclair nexus. Thus the revenues must only be used to 
              mitigate GHG emissions or the adverse effects caused by them. 
              Earlier versions of AB 1532 require that no funding be 
              approved unless it is determined to meet the limitations of 
              the Sinclair nexus, floor amendments strike this requirement.

            7) Planning the investments  . AB 1532 establishes the reduction 









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              of GHG emissions as the priority for the expenditure of 
              cap-and-trade and identifies several other complementary 
              goals. The bill further identifies several categories to be 
              considered for investment. These categories include emission 
              sources that, under the cap-and-trade program, are capped 
              sources as well as non-capped sources which may include 
              emission sources for which ARB has adopted GHG emission 
              offset protocols. Investment in GHG reductions from each of 
              these sources has different pros and cons. Investments in 
              non-capped sectors would provide incentives for the 
              reductions of GHG emissions from sources for which 
              insufficient incentives exist and may result in highly 
              cost-effective GHG emissions reductions that would not 
              otherwise have occurred. Investments in capped sectors add an 
              additional incentive, above the cap-and-trade program, for 
              GHG emission reductions and may reduce cap-and-trade 
              compliance costs. 

            8) Support and opposition concerns (as raised for June 18, 2013 
              version)  . According to supporters of AB 1532, this bill 
              advances the goals of CGWSA by creating a clear and open 
              framework for developing the investment plan and the adoption 
              of funding criteria. Supporters also endorse application of 
              Sinclair tests in funding determinations.

              Opponents state that AB 1532 prematurely anticipates proceeds 
              resulting from the allowance auctions that ARB may not have 
              the necessary authority to conduct. Opponents also contend 
              that not all priorities indicated in AB 1532 are consistent 
              with the Sinclair decision. 

            9) Related legislation  . SB 237 (Wolk) would have established the 
              California Agricultural Climate Benefits Advisory Committee 
              and established eligible uses in the agricultural sector for 
              revenues generated from the cap-and-trade program and died in 
              the Senate Appropriations Committee.

              SB 535 (De León) enacts the California Communities Healthy 
              Air and Revitalization Act and requires CalEPA to develop a 
              methodology for identifying priority community investment 
              areas.  A minimum of 10% of moneys deposited in GHGRF must be 
              used in the most impacted and disadvantaged communities.  SB 
              535 would also require ARB to develop investment plans and 









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              report on their progress to the Legislature and require the 
              Office of Environmental Health Hazard Assessment to prepare a 
              specified report by March 1, 2013, and every three years 
              thereafter.  SB 535 contains several sections that conflict 
              with AB 1532 and amendments will be necessary to address the 
              conflicts.  SB 535 has been referred to the Assembly Natural 
              Resources Committee pursuant Assembly Rule 77.2.
               
               SB 1572 (Pavley) appropriates moneys from the auction of 
              allowances during the 2012-13 fiscal year to specified 
              projects and establishes the Higher Education Greenhouse Gas 
              Emissions Reduction Account within the GHGRF and any revenue 
              collected by the state board from the sale of an allowance to 
              the University of California or the California State 
              University must be deposited into this account.  SB 1572 has 
              been referred to the Assembly Natural Resources Committee 
              pursuant Assembly Rule 77.2.

              AB 1186 (Skinner) enacts the School Energy Efficiency and 
              Greenhouse Gas Reduction Act and establishes the School 
              Energy Efficiency and Greenhouse Gas Reduction Fund. The bill 
              requires 20% of specified revenues deposited during the 
              2012-13 fiscal year in the GHGRF to be used for a grant 
              program for eligible K-12 schools for energy efficiency 
              improvements. AB 1186 is currently on the Senate Floor.

              AB 2404 (Fuentes) requires cap-and-trade revenues to be 
              deposited in a newly created 'Local Emission Reduction Fund' 
              where they are available to fund locally adopted greenhouse 
              gas reduction plans that emphasize specified co-benefits. All 
              reduction plans must be adopted by a local government in 
              furtherance of CGWSA goals. AB 2404 is currently in the 
              Assembly Appropriations Committee Suspense file.

            SOURCE  :        Speaker Pérez  

           SUPPORT  :       American Federation of State, County and 
                          Municipal 
                          Employees, AFL-CIO
                          American Lung Association
                          American Society of Landscape Architects - 
                          California 
                          Asian Pacific Environmental Network









                                                               AB 1532
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                          Audubon California
                          Big Sur Land Trust
                          Bolsa Chica Land Trust
                          Breathe California
                          California Association of Local Conservation 
                          Corps
                          California Biomass Energy Alliance
                          California Clean DG Coalition
                          California Climate and Agriculture Network
                          California Housing Partnership Corporation
                          California Infill Builders Federation
                          California Interfaith Power & Light
                          California ReLeaf
                          California State Association of Counties
                          California Transit Association
                          California Urban Forests Council
                          California Watershed Coalition
                          California Watershed Network
                          Californians Against Waste
                          CALSTART
                          Coalition for Clean Air
                          Electrification Leadership Council
                          Ella Baker Center, Green Collar Jobs Campaign
                          Energy Independence Now
                          Environmental Defense Center
                          Environmental Defense Fund
                          Friends of Harbors, Beaches and Parks
                          Golden Gate Audubon Society
                          Greenlining Institute
                          Honda North America
                          Intelligent Transportation Society of California
                          Land Trust of Santa Cruz County
                          Los Angeles County Metropolitan Transportation 
                          Authority
                          Marin Agricultural Land Trust
                          Natural Resources Defense Council
                          Non-Profit Housing Association of Northern 
                          California
                          Open Space District
                          Pacific Forest Trust
                          Peninsula Open Space Trust
                          Santa Clara County Open Space Authority
                          Sensys Networks









                                                               AB 1532
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                          Silicon Valley Leadership Group
                          Sonoma County Agricultural Preservation and Open 
                          Space  
                          District
                          State Building and Construction Trades Council of 
                          California 
                          Sunrun
                          The Nature Conservancy
                          The Wilderness Society
                          Trust for Public Land
                          Union of Concerned Scientists
                          Waste Management
                          Water Replenishment District of Southern 
                          California
            
           OPPOSITION  :    American Council of Engineering Companies of 
                          California 
                           California Asian Pacific Chamber of Commerce
                           California Business Properties Association
                           California Chamber of Commerce
                           California Chapter of the American Fence 
                           Association
                           California Fence Contractors' Association
                           California Framing Contractors Association
                           California Grocers Association
                           California Independent Oil Marketers Association
                           California League of Food Processors
                           California Manufacturers & Technology 
                           Association 
                           California Metals Coalition 
                           California Retailers Association
                           California Taxpayers Association 
                           Cal Tax
                           Can Manufacturers Institute
                           Chemical Industry Council of California
                           Engineering Contractors' Association
                           Flasher/Barricade Association
                           Golden State Builders Exchange
                           Marin Builders' Association
                           National Federation of Independent Business
                           United Contractors
                           Western State Petroleum Association 










                                                               AB 1532
                                                                 Page 18

           Support and opposition based on June 18th version of AB 1532.