BILL ANALYSIS Ó
AB 1051
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Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1051 (Bocanegra) - As Amended: April 8, 2013
Policy Committee: Housing and
Community Development Vote: 4-2
Transportation 11-4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Sustainable Communities for All Program
(Program) to fund the equitable implementation of SB 375
(Steinberg) Chapter 728, Statutes of 2008 consistent with AB
1532 (J. Perez) Chapter 807, Statutes of 2012. Specifically,
this bill:
1)Requires the Program to provide competitive grants and loans
to achieve the goals of the bill by investing in specified
transportation, conservation and housing projects.
2)Provides the implementation of the Program is contingent upon
an appropriation by the Legislature.
3)States legislative intent to fund the Program in the 2013-14
budget year.
4)Appropriates unspecified amounts from the Greenhouse Gas
Reduction fund for numerous eligibility categories and
existing state programs.
FISCAL EFFECT
Significant cost pressures, in the range of tens of millions to
the hundreds of millions of dollars, to fund the Program from
Greenhouse Gas Reduction (cap and trade) Fund revenues.
COMMENTS
1)Purpose. This bill is intended to create a new program to
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expend cap and trade revenues to reduce state GHG emissions
and create sustainable communities by funding environmentally
sound affordable transit and housing choices that allow
lower-income people to drive less and reduce household costs.
2)Background. SB 375 (Steinberg), Chapter 728, Statutes of
2008 requires the Air Resources Board to provide each region
that has a metropolitan planning organization (MPO) with a GHG
reduction target for the automobile and light truck sector for
by 2020 and 2035 respectively. The MPO is required to include
a sustainable communities strategy in its regional
transportation plan designed to achieve the GHG reduction
targets.
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. Two actions have been held thus far.
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.
AB 1532 (J. Perez, 2012 ) created 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 greenhouse gas (GHG) allowances
pursuant to the cap and trade program adopted by the Air
Resources Board (ARB) under the California Global Warming
Solutions Act of 2006.
AB 1051
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Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081