BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 726
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 726 (Lara) - As Amended:  August 5, 2013 

          Policy Committee:                             Natural  
          ResourcesVote:9-0
                       Judiciary                                     10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill condition's California's involvement with the Western  
          Climate Initiative, Inc. (WCI, Inc.) upon its adoption of open  
          meeting and public records requests consistent with California  
          law.  Specifically, this bill:

          1)Repeals the existing exemption from Bagley-Keene and instead  
            explicitly applies Bagley-Keene and the Public Records Act to  
            WCI, Inc. and the ARB and CalEPA appointees.

          2)Requires WCI, Inc. to report annually to the Governor and  
            appropriate committees of the Legislature regarding emission  
            reductions achieved and general plans to foster relationships  
            with other localities, states and nations in order to reduce  
            GHG emissions in California.

          3)Requires ARB to include information in the Governor's Budget  
            on all proposed expenditures and allocations of moneys to WCI,  
            Inc.

           FISCAL EFFECT
           
          1)Potential costs of up to $75,000 from the Cost of  
            Implementation (COI) Account to comply with the Public Records  
            Act, depending on the number and complexity of actual  
            requests.

          2)Minor, if any, costs to comply with the Bagley-Keene Open  
            Meeting Act.









                                                                  SB 726
                                                                  Page  2

          California pays a membership fee to WCI, Inc.  If additional  
          costs are incurred, WCI, Inc. will determine whether they will  
          charge all members or directly bill the entire cost to  
          California.  
           
          COMMENTS  

           1)Purpose.   According to the author, this bill is intended to  
            provide transparency and accountability regarding ARB's  
            involvement with WCI, Inc.  
             
           2)Background.   In November 2011, the Western Climate Initiative  
            formed WCI, Inc., a non-profit corporation established to  
            provide administrative and technical services to support the  
            implementation of state and provincial greenhouse gas  
            emissions trading programs.  
             
             According to their website, WCI, Inc. will develop a system to  
            track compliance with both allowances and offsets; administer  
            allowance auctions; and conduct market monitoring of allowance  
            auctions and offset certificate trading.   

            In 2012, the Resources Budget Trailer Bill (SB 1018), exempted  
            WCI, Inc. from the Bagley-Keene Open Meetings Act.
             
               

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081