BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1532|
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                                 THIRD READING


          Bill No:  AB 1532
          Author:   John A. Pérez (D), et al.
          Amended:  8/24/12 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-2, 7/2/12
          AYES:  Simitian, Hancock, Kehoe, Lowenthal, Pavley
          NOES:  Strickland, Blakeslee
           
          SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/16/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  4-1, 8/29/12 
            (pursuant to Senate Rule 29.10)
          AYES:  Simitian, Hancock, Kehoe, Lowenthal
          NOES:  Blakeslee
          NO VOTE RECORDED:  Strickland, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/12 (pursuant to 
            Senate Rule 29.10)
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton
           
          ASSEMBLY FLOOR  :  49-27, 5/29/12 - See last page for vote


           SUBJECT  :    Greenhouse gas emissions

           SOURCE  :     Author


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           DIGEST  :    This bill (1) requires moneys in the Greenhouse 
          Gas Reduction Fund (GHGRF) to facilitate the achievement of 
          feasible and cost-effective reductions of greenhouse gas 
          (GHG) emissions in the state; (2) requires administering 
          agencies, including the Air Resources Board (ARB) and any 
          other state agency identified by the Legislature, to 
          allocate those moneys to measures and programs that meet 
          specified criteria; (3) requires the ARB to develop, as 
          specified, three investment plans that identify the 
          anticipated expenditures of moneys appropriated from the 
          Fund, to submit each plan to the Budget Committees of each 
          house of the Legislature, as specified, and to adopt each 
          investment plan, as specified; (4) requires the Governor to 
          submit a budget to the Legislature that includes specified 
          appropriations consistent with each investment plan and 
          requires the Legislature to consider these appropriations 
          when adopting the Budget Act; and (5) requires the ARB to 
          annually submit a report no later than December of each 
          year to the appropriate committees of the Legislature on 
          the status of projects and their outcomes and any changes 
          the ARB recommends need to be made to the investment plan.

           Senate Floor Amendments  of 8/24/12 strike and add 
          requirements and criteria for the expenditure of revenue 
          and the development of investment plans for revenue 
          collected pursuant to the California Global Warming 
          Solutions Act (CGWSA).  Specifically, the amendments (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 Board of Equalization; (2) add specified investments 
          to the specified purposes for the use of GHGRF moneys; (3) 
          add specified criteria for the California Environmental 
          Protection Agency (CalEPA) to consider when developing a 
          methodology that identifies priority communities for 
          investment; (4) strike redundant requirements and adds new 
          requirements related to investment in priority communities 
          area to GHGRF investment plans; (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; and (6) 

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          require the ARB to hold one public hearing on the required 
          report prior to its submission to the Legislature. 
          
           ANALYSIS  :    The CGWSA designates the ARB as the state 
          agency charged with monitoring and regulating sources of 
          emissions of GHGs.  The ARB is required to adopt a 
          statewide GHG emissions limit equivalent to the statewide 
          GHG emissions level in 1990 to be achieved by 2020, and to 
          adopt rules and regulations in an open public process to 
          achieve the maximum, technologically feasible, and 
          cost-effective GHG emissions reductions.  The CGWSA 
          authorizes the ARB to include use of market-based 
          compliance mechanisms.  The CGWSA authorizes the ARB to 
          adopt a schedule of fees to be paid by the sources of GHG 
          emissions regulated pursuant to the act, and requires the 
          revenues collected pursuant to that fee schedule be 
          deposited into the Air Pollution Control Fund and be 
          available, upon appropriation by the Legislature, for the 
          purposes of carrying out the CGWSA.

          This bill: 


          1. Requires that moneys must be used to facilitate the 
             achievement of feasible and cost-effective reductions of 
             GHG 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 and 
                wastewater agencies, local governments, and other 
                community institutions to participate in and benefit 

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                from statewide efforts to reduce GHG emissions.

             F.    Mitigate the impacts and effects of climate change 
                on the state's communities, economy, and environment.

          2. Provides that moneys appropriated from the fund may be 
             allocated for the purpose of reducing GHG emissions in 
             this state through investments that include, but are not 
             limited to, investments in: 

             A.    Clean and efficient energy including:

                (1)      Industrial and manufacturing investment in 
                   energy efficiency, energy storage, and clean and 
                   renewable energy project.

                (2)      Public universities, schools, water and 
                   wastewater agencies, local governments, and other 
                   public facilities and fleets and their energy 
                   suppliers to reduce GHG emissions by investment in 
                   energy and water use efficiency, energy storage, 
                   and clean and renewable energy and fuel projects.

                (3)      Single-family and multifamily residential 
                   and commercial distributed generation and energy 
                   efficiency programs. 

                (4)      Increasing the in-state division of 
                   municipal and solid waste from disposal through 
                   waste reduction, reuse, and low-carbon, 
                   recycled-content processing, manufacturing, and 
                   other market development activities, as specified.

             B.    Low-carbon transportation, sustainable 
                development, and infrastructure, including:

                (1)      Public transportation and sustainable 
                   transportation and infrastructure development, 
                   including, but not limited to, transit, bicycle, 
                   and pedestrian facilities.

                (2)      Programs for clean vehicles and the 
                   advancement of transportation technologies.


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                (3)      Advanced transportation and fueling 
                   infrastructure.

                (4)      Local and regional sustainable development 
                   efforts. 

                (5)      Low-carbon goods movement and freight 
                   vehicle technologies and infrastructure, 
                   including, but not limited to, locomotives and 
                   heavy-duty fleets.

             C.    Natural resource protection, including:

                (1)      Natural resource management programs and 
                   projects.

                (2)      Land conservation and restoration, 
                   including, but not limited to, watershed projects 
                   with cobenefits of water quality, flood 
                   protection, and coastal and ocean protection.

                (3)      Development and implementation of 
                   sustainable agriculture, forestry, and related 
                   water, land, and resource management practices.

             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.

             E.    Investments in community climate innovation 
                programs.

          3. Requires the California Environmental Protection Agency 
             to develop a methodology that identifies priority 
             community areas for investment opportunities related to 
             this bill.  These priority community investment areas 
             shall be identified and updated no less than every two 
             years, based on geographic, socioeconomic, and 
             environmental hazard criteria, which may include, but 
             not limited to, any of the following:

             A.    Areas disproportionately adversely affected by 

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                environmental pollution and hazards.

             B.    Areas that contain or produce material that, 
                because of its quantity, concentration, or physical 
                or chemical characteristics, pose a significant 
                hazard to human health and safety.

             C.    Areas with concentrations of people that are of 
                low income, high unemployment, low levels of 
                homeownership, high rent burden, and low levels of 
                educational attainment.

          4. Requires ARB to develop guidelines for administering 
             agencies for purposes of allocating moneys to projects 
             that maximize benefits for priority community areas.

          5. Requires administering agencies to have the authority to 
             set aside a percentage of their appropriated moneys from 
             the fund for projects that maximize benefits to priority 
             community investment areas.

          6. Requires, in implementing #3, #4, and #5 above, 
             administrative agencies to ensure the investments 
             maximize the benefits for investments to priority co 
             munity investment areas through activities that include, 
             but are not limited to, any of the following:

             A.    Participatory program guideline development.
             B.    Targeted solicitation outreach.
             C.    Education and training efforts.
             D.    Solicitation scoring criteria priority.

          7. 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.

          8. Requires ARB to adopt guidelines, after one or more 
             public hearings, 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:

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             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 and outcomes.

          9. Requires any state agency that allocates moneys, as 
             described above, adopt guidelines that meet the 
             requirements of #8 above.

          10.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 investment plan 
             must list and describe the key measures and strategies 
             that the state is relying on to achieve GHG emissions, 
             reduction targets by sectors, analyze gaps, where 
             applicable, in current state strategies to meeting the 
             state's GHG emissions reduction goals by sector, and 
             identify priority programmatic investments of moneys 
             appropriated from the fund that will facilitate the 
             achievement of feasible and cost-effective GHG emissions 
             reductions toward achievement of reduction targets by 
             sector.

          11.Requires ARB, prior to adopting each investment plan, to 
             consult with the Public Utilities Commission (PUC) to 
             ensure the investment plan is coordinated with, and does 
             not conflict with or unduly overlap with, activities 
             under the oversight or administration of the PUC that 
             facilitate GHG emissions reductions consistent with the 
             law.
          12.Requires the PUC to develop and send to ARB a report to 
             be included in each investment plan adopted by ARB.  The 
             report must include its requirements on how 
             investor-owned utilities (IOUs) may use moneys they 

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             might collect from allowance auctions pursuant to 
             cap-and-trade.

          13.Requires ARB receive input from an advisory body that 
             includes the secretaries for the Natural Resources 
             Agency, the California Environmental Protection Agency, 
             the Department of Food and Agriculture, the Labor and 
             Workforce Development Agency, 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.

          14.Requires ARB to submit to the budget committees of both 
             houses each of the following 30 days prior to adoption, 
             each proposed investment plan; any amendment to an 
             adopted investment plan that would, in the aggregate, 
             modify the adopted investment plan.

          15.Provides that if ARB, in consultation with the CalEPA, 
             finds in its report to the Legislature, pursuant to this 
             bill, that the investment made in the prior fiscal year 
             did not result in at least 25% of the available moneys 
             from that fiscal year being allocated to projects that 
             provide benefits described in the bill to priority 
             community investment areas and that at least 10% of all 
             of the available moneys from that fiscal year were not 
             invested in projects located in priority investment 
             areas, then the Governor shall include as part of the 
             Governor's annual budget submission to the Legislature, 
             allocations to administering agencies to make 
             investments in eligible projects in priority community 
             investment areas in an amount equal to the difference 
             between the total investments in the prior fiscal year 
             that benefited priority community investment areas and 
             an amount equal to 25% of the total allocations from the 
             prior fiscal year.  This allocation shall not be 
             considered part of the next fiscal year's priority 
             community investment area considerations for purposes of 
             this part and shall be separately identified in the 
             Governor's annual budget submission to the Legislature 
             to provide transparency to the investment.

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

          17.Requires ARB to submit a report, on or before December 
             of each year, to the appropriate committees of the 
             Legislature 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, 
             and a description of how agencies have maximized the 
             benefits of the investments to priority community 
             investment areas, including, but not limited to, the 
             percentage of funds allocated to date and in the prior 
             fiscal year that have been invested in projects in 
             priority community investment areas and that have 
             provided benefits to priority community investment 
             areas.  Requires ARB to hold one public hearing on the 
             report prior to its submission to the Legislature.

           Background  

           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 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 

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          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 
          2013-2014, 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.
           
          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.  The proposal does not 
          contain a specific plan for expenditure of the revenue, 
          rather it includes a General Fund offset of $500 million, 
          and identifies general categories of spending, including 
          (1) clean and efficient energy, (2) low-carbon 
          transportation, (3) natural resource protection, and (4) 
          sustainable infrastructure development. 

          The Natural Resources Budget Trailer Bill establishes the 

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          Greenhouse Gas Reduction Fund as a special 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 that includes (1) criteria and requirements for the 
          use of the auction proceeds, (2) establishment of program 
          categories eligible for funding, and (3) the specification 
                                                                          of the process that ARB use to develop the strategy.  The 
          Trailer Bill further requires agencies expending moneys 
          from the fund to prepare a record describing the uses of 
          the funds, how they further the goals of the CGWSA, 
          including attainment of the 2020 limit, how non-GHG 
          emissions objectives of the CGSWA were considered, and a 
          description of how the agency will document the results of 
          the expenditure.
           
           The Trailer Bill 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.
           
          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 (1) the 
          program provides a broad public benefit, not a benefit to 
          the regulated business, and (2) 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 

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          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.  This bill requires that no funding 
          be approved unless it is determined to meet the limitations 
          of the Sinclair nexus.

           Related Legislation
           
          AB 237 (Wolk) establishes a program to use cap and trade 
          auction revenues for the support of the agricultural 
          industry.  The bill was held on this committee's Suspense 
          File.

          SB 535 (De Leon) requires 10% of cap and trade auction 
          revenues to be expended for programs to mitigate climate 
          change impacts in disadvantaged communities.  The bill is 
          in the Assembly Appropriations Committee.

          SB 1572 (Pavley) establishes a fund for the deposit of cap 
          and trade auction revenues and requires that the lesser of 
          half of cap and trade auction revenues in 2012-13 or $250 
          million would be available, upon appropriation, for 
          specified purposes.  The bill is in the Assembly 
          Appropriations Committee.

          AB 1186 (Skinner) requires the Public Utilities Commission 
          to require investor owned utilities to use at least ten 
          percent of the revenues that they receive from auctioning 
          their free emissions allowances for public school energy 
          efficiency projects.  The bill is on Senate Third Reading.

          AB 2404 (Fuentes) requires cap and trade auction revenues 
          to be deposited in a specified fund, to be used to fund 
          local greenhouse gas emission programs.  The bill is in the 
          Assembly Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee, based on 
          information developed by the ARB, near-term administrative 

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          costs to adopt spending guidelines and develop investment 
          plans, pursuant to this bill, would likely be about $6 
          million per year (Greenhouse Gas Reduction Fund) for 
          several years (across all state agencies). 

          The Legislative Analyst's Office has projected that 
          long-term revenues from cap and trade auction proceeds will 
          be between $2 billion and $12 billion per year.  Based on 
          state's recent history of expending bond funds, 
          administrative costs to plan for, expend, and monitor 
          expenditures of those funds would likely range from $40 
          million per year to as high as $600 million per year.  
          However, it is important to note that those revenues will 
          be generated, and can be appropriated by the Legislature, 
          under the existing authority of AB 32. 

          The costs described above reflect an estimate of the 
          administrative costs directly attributable to this bill - 
          primarily the development of guidelines and the preparation 
          of investment plans.  The long-term costs to the state to 
          oversee the expenditure of cap and trade auction revenues, 
          while very significant, will occur whether or not this bill 
          is enacted.

           SUPPORT  :   (Verified  8/30/12)

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

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          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
          Global Green
          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
          Nature Conservancy
          Natural Resources Defense Council
          Non-Profit Housing Association of Northern California
          Open Space District
          Pacific Forest Trust
          Peninsula Open Space Trust
          San Francisco Bay Area Rapid Transit District
          Santa Clara County Open Space Authority
          Sensys Networks
          Silicon Valley Leadership Group
          Sonoma County Agricultural Preservation and Open Space 
          District
          State Building and Construction Trades Council of 
          California 
          Sunrun
          Trust for Public Land
          Waste Management
          Water Replenishment District of Southern California
          Wilderness Society

           OPPOSITION  :    (Verified  8/24/12)

          American Council of Engineering Companies of California 

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          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
          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

           ARGUMENTS IN SUPPORT  :    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 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."  According to 
          supporters, 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.

           ARGUMENTS IN OPPOSITION  :    Opponents state that this bill 
          prematurely anticipates proceeds resulting from the 

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          allowance auctions that the 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.  
           

           ASSEMBLY FLOOR  :  49-27, 5/29/12
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Chesbro, Davis, 
            Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani, 
            Gatto, Gordon, Hayashi, Roger Hernández, Hill, Huber, 
            Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mitchell, 
            Monning, Pan, Perea, V. Manuel Pérez, Portantino, 
            Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, 
            Yamada, John A. Pérez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman, 
            Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, 
            Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth, 
            Valadao, Wagner
          NO VOTE RECORDED:  Cedillo, Fletcher, Hall, Mendoza


          DLW:m1  8/30/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
          















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