BILL ANALYSIS Ó
SB 535
Page 1
Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 535 (De Leon) - As Amended: July 5, 2011
Policy Committee: Natural
ResourcesVote:6-3
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill sets aside a portion of the monies collected by the
Air Resources Board (ARB) pursuant to the board's greenhouse gas
emissions (GHGs) reduction program (AB 32), to be used for
related benefits in communities the bill describes as most
subject to air pollution and most suffering from socioeconomic
vulnerability.
FISCAL EFFECT
1)Potential revenue of an unknown amount, but possibly in the
tens of millions of dollars. (California Communities Healthy
Air Revitalization Trust.)
2)Potential ongoing administrative costs to ARB of an unknown
amount, but possibly in the millions of dollars and no more
than 5% of revenue in the trust. (California Communities
Healthy Air Revitalization Trust.)
SUMMARY (CONTINUED)
Specifically, this bill:
1)Establishes the California Communities Healthy Air
Revitalization Trust within the Air Pollution Control Fund
(APCF) and directs to the trust 10% of nonadminstrative
revenues placed into the APCF pursuant to AB 32.
2)Dedicates monies in the trust, upon appropriation, for use in
the most impacted and disadvantaged communities for programs
and projects, including "green collar" employment and
training, to reduce GHGs and mitigate direct health effects of
climate change, and allows up to 5% of the monies in the trust
SB 535
Page 2
to be used for administration, upon appropriation.
3)Defines "most impacted and disadvantaged communities" as those
areas with the highest 10% air pollution exposure and
socioeconomic vulnerability within an air basin that does not
meet one or more national or state ambient air quality
standards, or those areas with the highest 10% socioeconomic
vulnerability to direct health or environmental impacts of
climate change.
4)Requires ARB to administer trust funds and begin
implementation of the program within 90 days of finding that
more than $5 million has been deposited in the trust and
authorizes up to 5% of trust funds for administration.
5)Requires ARB, in consultation with the Climate Action Team, to
adopt, and update every three years, a list of the most
impacted and disadvantaged communities and report to the
Legislature periodically.
6)Requires ARB, in consultation with the Senate pro Tempore and
the Speaker of the Assembly, to appoint a seven-member review
panel, with each member possessing demonstrated expertise and
a minimum of seven years of working experience in the areas of
air pollution, public health, energy efficiency,
transportation, economics or running a small business and
three members possessing demonstrated knowledge and experience
in advancing community interests in the area of environmental
protection for at least seven years.
7)Requires project awards selected by ARB to be approved by at
least four members of the review panel.
COMMENTS
1)Rationale . The author intends this bill to ensure that as the
state implements its program to reduce GHGs it dedicates
monies to helping those who currently suffer from higher
levels of air pollution and who are least able to confront the
expected effects of climate change.
2)Background. AB 32 requires California to limit its emissions
of GHGs so that, by 2020, those emissions are equal to what
they were in 1990. Consistent with AB 32, ARB's AB 32 program
includes both direct regulatory measures and a "cap-and-trade"
market-based compliance mechanism. Implementation of ARB's
cap-and-trade program has been delayed by legal challenge.
SB 535
Page 3
However, the program, if implemented, has the potential to
generate significant revenue, ranging in the hundreds of
millions of dollars per compliance period, as emission permits
are sold to emissions sources.
3)Related Legislation.
a) AB 1405 (De León, 2009) , similar to this bill, passed
the Assembly 49-29 and the Senate 22-15 but was vetoed by
the governor, who described the measure as premature.
b) SB 237 (Wolk, 2009), which would use revenues generated
under the AB 32 cap-and-trade program to support
agricultural activities related to climate change, was held
on suspense by Senate Appropriations.
4)Support. This bill is supported by a long list of
environmental and community justice advocates, who contend it
appropriate to ensure AB 32 revenues go to help the most
disadvantaged communities address air pollution and the
effects of climate change.
5)Opposition . This bill is opposed by a long list of business
and industry organizations who contend the bill is premature
and poorly defined in that it is unknown which communities
will qualify to receive funds from the trust and how much
money, if any, will be deposited into the trust, and that the
AB 32 revenue would be better used to address the effect of
the AB 32 program on electricity ratepayers.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081