BILL ANALYSIS Ó
AB 1023
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Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1023 (Eggman) - As Amended: May 8, 2013
Policy Committee: Natural
ResourcesVote:6-3
Urgency: No State Mandated Local Program:
Reimbursable:
SUMMARY
This bill establishes the Greenhouse Gas Reduction through
Recycling, Composting, and Recycled Content Manufacturing
Program (Program). Specifically this bill:
1)Requires CalRecycle, in coordination with ARB, to provide
incentives or grants for waste reduction, recycling,
composting, and recycled content manufacturing projects that
reduce GHG emissions in the state, and identify industry
sectors that could reduce their GHG emissions through this
grant program.
2)Specifies that the industry sectors CalRecycle may identify
include, but are not limited to:
a) Composting and anaerobic digestion.
b) Recycled container glass manufacturing.
c) Food processing.
d) Recycled paper and paperboard packaging.
e) Recycled plastic manufacturing.
3)Requires CalRecycle to develop a market development program to
provide incentives for waste reduction, recycling, composting,
and recycled content manufacturing projects that would reduce
GHG emissions.
4)Requires CalRecycle to give priority to projects benefitting
disadvantaged communities, as identified by ARB. Requires
that 25% of funds allocated be disbursed for projects that
benefit these communities and that 10% be disbursed for
projects located within these communities.
AB 1023
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5)Limits available funds to $30 million from cap-and-trade
proceeds annually, upon appropriation by the Legislature.
FISCAL EFFECT
Cost pressures of up to $30 million per year from the Greenhouse
Gas Reduction Fund (cap-and-trade-revenues), for grants and
administration.
COMMENTS
1)Purpose. According to the author, this bill allocates AB 32
cap-and-trade auction proceeds to fund recycling, organics
processing, and recycled content manufacturing projects that
reduce GHG emissions.
2)Background. AB 32 (Núñez), Chapter 455, Statutes of 2006)
requires California to limit its emissions of GHGs so that, by
2020, those emissions are equal to what they were in 1990.
The stated goal of the ARB in the AB 32 scoping plan, was to
achieve 20% of the necessary reductions from a cap-and-trade
market in which regulated emissions sources buy and sell
credits that give the holder the right to emit a quantity of
GHGs.
The 2012-13 Budget Act 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 purposes of
AB 32.
To date, proceeds from the initial two auctions have raised
approximately $139 million.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081
AB 1023
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