BILL ANALYSIS Ó
AB 416
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 416 (Gordon) - As Amended: April 4, 2013
SUBJECT : State Air Resources Board: Local Emission Reduction
Program.
SUMMARY : Requires the Air Resources Board to establish the
Local Emission Reduction Program to provide grants and other
financial assistance to eligible local government recipients for
the purposes of developing and implementing greenhouse gas
emissions reduction projects. Specifically, this bill :
1)Requires the Air Resources Board (ARB), in coordination with
other state entities, as appropriate, to establish the Local
Emission Reduction Program (LERP) to provide local assistance
grants and other financial assistance to eligible recipients
for the purposes of developing and implementing greenhouse gas
(GHG) emissions reduction projects in the state.
2)Requires ARB, in coordination with the Strategic Growth
Council (SGC) to administer LERP.
3)Defines "eligible recipients" for purposes of the bill to mean
"a city, county, city and county, charter city, charter
county, metropolitan planning organization, regional climate
authority, special district, joint powers authority, air
pollution control or air quality management district, regional
collaborative, or nonprofit organization working in
coordination with a local government."
4)Requires ARB to develop standards and guidelines for the
distribution of funds to reduce greenhouse gas emissions and
to maximize the ability to achieve one or more of the
following:
a) Decrease air or water pollution;
b) Reduce the consumption of natural resources or energy;
c) Provide opportunities to achieve greenhouse gas
emissions reductions in ways that increase localized energy
resources;
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d) Promote public-private partnerships to implement energy
efficiency and clean energy projects with financing
incentives for residential and commercial facilities;
e) Increase the reliability of local water supplies;
f) Increase solid waste diversion from landfills;
g) Increase electric vehicle infrastructure;
h) Achieve greenhouse gas emissions reductions in ways that
reduce vehicle miles traveled; or,
i) Prevent conversion of agricultural, forest, and open
space lands to uses that result in higher greenhouse gas
emissions.
5)Requires ARB and SGC, in evaluating potential projects to be
funded, to give priority to projects that demonstrate one or
more of the following characteristics:
a) Regional implementation;
b) The ability to leverage additional public and private
funding;
c) The potential for cobenefits or multibenefit attributes;
d) The potential for the project or program to be
replicated; or,
e) Consideration of geographic and socioeconomic issues.
6)Requires ARB, in coordination with SGC, to ensure funding is
available for both of the following:
a) The development and implementation of innovative
projects that create new systems or technologies; and,
b) The implementation of existing, proven greenhouse gas
emissions reducing or sequestering projects, including, but
not limited to, those projects and programs already adopted
by local agencies.
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7)Requires funding to be on a competitive basis.
8)States the intent of the Legislature that moneys appropriated
pursuant to the bill's provisions must be in a manner
consistent with the requirements of the Greenhouse Gas
Reduction Fund Investment Plan and Communities Revitalization
Act.
9)Makes the development of standards and guidelines by ARB and
the provision of financial assistance to eligible recipients
contingent upon appropriation of funds by the Legislature.
10)Makes findings and declarations.
EXISTING LAW :
1)Requires ARB, pursuant to California Global Warming Solutions
Act of 2006 (AB 32), to adopt a statewide GHG emissions limit
equivalent to 1990 levels by 2020 and adopt regulations to
achieve maximum technologically feasible and cost-effective
GHG emission reductions.
2)Authorizes ARB to permit the use of market-based compliance
mechanisms to comply with GHG reduction regulations, under
limited circumstances once specified conditions are met.
3)Establishes the GHG Reduction Fund and requires all moneys,
except for fines and penalties, collected by ARB from the
auction or sale of allowances pursuant to a market-based
compliance mechanism (i.e., the cap-and-trade program adopted
by ARB under AB 32) to be deposited in the Fund and available
for appropriation by the Legislature.
4)Creates the Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act to set procedures for the
investment of regulatory fee revenues derived from the auction
of GHG allowances pursuant to the cap and trade program
adopted by ARB under the California Global Warming Solutions
Act of 2006 (AB 32 (Nuñez and Pavley), Chapter 488, Statutes
of 2006), which includes funding to reduce GHG emissions
through investments in programs implemented by local and
regional agencies, local and regional collaboratives, and
nonprofit organizations coordinating with local governments.
5)Requires, under the provisions of SB 375 (Steinberg), Chapter
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728, Statutes of 2008, a regional transportation plan to
include a sustainable communities strategy designed to achieve
the targets for greenhouse gas emission reductions.
6)Establishes SGC and requires the SGC to manage and award
financial assistance to Councils of Governments (COGs),
Metropolitan Planning Organizations (MPOs), Regional
Transportation Planning Agencies (RTPAs), cities, counties,
and Joint Powers Authorities (JPAs) to develop, adopt, or
implement a regional plan or other planning instrument
consistent with a regional plan that improves air and water
quality, improves natural resource protection, increases the
availability of affordable housing, improve transportation,
meets the goals of AB 32, and encourages sustainable land use.
FISCAL EFFECT : Unknown
COMMENTS :
1)This bill requires ARB to establish the Local Emission
Reduction Program to provide grants and other financial
assistance to eligible local government recipients for the
purposes of developing and implementing GHG emissions
reduction projects. This bill is an author-sponsored measure.
2)According to the author, "local governments are uniquely
positioned to implement the greatest emissions-reducing
projects and as a result, should be at the center of an
investment strategy aimed to achieve California's climate
goals. Absent AB 416, local-scale and regional-scale emission
reduction initiatives are not likely to be undertaken. AB 416
ensures that direct investments reach California communities
for GHG reducing projects, enhancing the environments and
economies of local and regional areas through multi-benefit
projects. Investments can advance clean and efficient energy,
expand low-carbon and public transportation, protect natural
resources, promote sustainable infrastructure development,
increase the reliability of local water supplies, improve
infrastructure, reduce local costs, create jobs, and achieve
many other local priorities."
3)The 2012-13 Budget Act (AB 1464) authorized the Department of
Finance (DOF) to allocate at least $500 million from
cap-and-trade revenue, and make commensurate reductions to
General Fund expenditure authority, to support the regulatory
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purposes of AB 32. AB 1532 (John A. Pérez), Chapter 802,
Statutes of 2012, establishes a long-term spending strategy
for moneys in the Fund, including procedures for deposit and
expenditure of cap-and-trade auction revenues pursuant to an
investment plan. AB 1532 specifically authorizes funding for
the same local recipients described in this bill (local and
regional agencies, local and regional collaboratives, and
nonprofit organizations coordinating with local governments).
Pursuant to AB 1532, DOF and ARB are developing a three-year
investment plan for the auction proceeds. The investment plan
will identify the state's GHG emission reduction goals and
priority programs for investment of proceeds to support
achievement of those goals. The Governor's proposed 2013-14
Budget includes a brief discussion of Administration
priorities for investment, emphasizing investments in the
transportation and energy sectors from which large reductions
in GHG emissions are possible. In addition, areas to be
examined during the planning process include sustainable
agriculture practices (including the development of
bioenergy), forest management and urban forestry, and the
diversion of organic waste to bioenergy and composting.
In February 2013, ARB released an investment plan "concept
paper" and held public workshops to solicit public input. The
release of a draft investment plan is pending, and will be
followed by an ARB public hearing (tentatively scheduled for
April 25-26, 2013). DOF will submit the final plan to the
Legislature in May 2013. Funding will be appropriated to
state agencies by the Legislature and Governor through the
annual Budget Act, consistent with the plan.
4)The League of California Cities, California State Association
of Counties, Urban Counties Caucus, California Special
Districts Association, and a large number of individual local
agencies are in support of this bill because it paves the way
for investments at the local level to engage in meaningful GHG
reduction projects while promoting sustainable communities.
5)Support arguments : According to the California Special
Districts Association, "a program dedicating funds for local
governments to implement GHG reducing and energy efficiency
improving projects will best serve the state in its quest to
achieve the goals set forth by AB 32."
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Opposition arguments : None on file.
6)This bill was heard on April 1, 2013, by the Assembly Natural
Resources Committee and passed on a 6 - 2 vote.
REGISTERED SUPPORT / OPPOSITION :
Support Opposition
Association of California Healthcare DistrictsNone on file
Audubon California
Bay Area Urban Forest Ecosystem Council
Bolsa Chica Land Trust
Support (continued)
California Association of Sanitation Agencies
California Climate and Agriculture Network
California ReLeaf
California State Association of Counties
California Urban Forests Council
California Special Districts Association
Central Coast Urban Forests Council
City of Hayward
Counties of Monterey, Santa Clara and Sonoma
Crestline Sanitation District
Environmental Defense Fund
Fulton-El Camino Recreation & Park District
Goleta Sanitary District
Green Cities California
Grizzly Flats Community Services District
Hidden Valley Lake Community Services District
Inland Urban Forest Council
Land Trust of Santa Cruz County
League of California Cities
Local Government Commission
Los Medanos Community Healthcare District
Marin Agricultural Land Trust
McCloud Community Services District
Menlo Park Fire Protection District
Peninsula Open Space Trust
Planning & Conservation League
Pleasant Hill Recreation & Park District
Rancho Simi Valley Recreation & Park District
Sacramento Urban Forests Council
San Diego Regional Urban Forest Council
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San Joaquin Valley Urban Forest Council
Sonoma County Agricultural Preservation & Open Space District
Sonoma County Regional Climate Protection Authority
Sonoma County Water Agency
South Tahoe Public Utility District
Street Tree Seminar/Los Angeles-Orange County Urban Forests
Council
The Nature Conservancy
Three Valleys Municipal Water District
Urban Counties Caucus
Ventura County Resource Conservation District
Vista Irrigation District
Western Municipal Water District
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958