BILL ANALYSIS Ó
AB 156
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Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 156
(Perea) - As Amended March 26, 2015
SUBJECT: California Global Warming Solutions Act of 2006:
investment plan
SUMMARY: Requires the Greenhouse Gas Reduction Fund (GGRF)
Investment Plan to allocate technical assistance funds to the
Air Resources Board (ARB) to assist disadvantaged communities in
developing GHG reduction project funding proposals.
EXISTING LAW:
1)Requires ARB, pursuant to California Global Warming Solutions
Act of 2006 [AB 32 (Núñez), Chapter 488, Statutes of 2006], 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, once
specified conditions are met.
3)Establishes the GGRF and requires all moneys, except for fines
and penalties, collected by ARB from the auction or sale of
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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)Establishes the GGRF Investment Plan and Communities
Revitalization Act [AB 1532 (John A. Pérez), Chapter 807,
Statutes of 2012] to set procedures for the investment of GHG
allowance auction revenues. AB 1532 authorizes a range of GHG
reduction investments and establishes several additional
policy objectives.
5)Requires the Investment Plan to allocate: 1) a minimum of 25%
of the available moneys in the fund to projects that provide
benefits to identified disadvantaged communities; and, 2) a
minimum of 10% of the available moneys in the fund to projects
located within identified disadvantaged communities [SB 535
(De Leon), Chapter 830, Statutes of 2012].
THIS BILL:
1)Requires the Investment Plan to allocate technical assistance
funds to ARB to assist disadvantaged communities in developing
GHG reduction project funding proposals.
2)Provides that the allocation of these technical assistance
funds shall not be used to meet the 10% and 25% minimums set
by SB 535.
3)Requires ARB, upon appropriation of funds, to establish a
comprehensive technical assistance program to provide
assistance to applicants with any of the following:
a) Identifying state agencies with appropriate grant
programs.
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b) Developing competitive project proposals to apply
for funds.
c) Coordinating existing local programs to reduce GHG
emissions with new programs receiving GGRF funds.
d) Conducting community outreach to residents of
disadvantaged communities on consumer programs or for
other programs that reduce GHG emissions.
FISCAL EFFECT: Unknown
COMMENTS:
1)Background. The 2014-15 Budget Act allocates cap-and-trade
revenues for the 2014-15 fiscal year and establishes a
long-term plan for the allocation of cap-and-trade revenues
beginning in fiscal year 2015-16. The Budget continuously
appropriates 35 percent of cap-and-trade funds for investments
in transit, affordable housing, and sustainable communities.
Twenty-five percent of the revenues are continuously
appropriated to continue the construction of high-speed rail.
The remaining 40 percent will be appropriated annually by the
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Legislature for investments in programs that include
low-carbon transportation, energy efficiency and renewable
energy, and natural resources and waste diversion.
SB 535 directed that, in addition to reducing greenhouse gas
emissions, a quarter of the proceeds from the GGRF must also
go to projects that provide a benefit to disadvantaged
communities, as identified by the California Environmental
Protection Agency (CalEPA). A minimum of 10 percent of the
funds must be for projects located within those communities.
In October 2014, CalEPA released its list of disadvantaged
communities for the purpose of SB 535. To inform its
decision, CalEPA relied on the California Communities
Environmental Health Screening Tool (CalEnviroScreen), a tool
that assesses all census tracts in California to identify the
areas disproportionately burdened by and vulnerable to
multiple sources of pollution.
Areas (census tracts) identified as disadvantaged for SB 535's
purposes by CalEnviroScreen 2.0 include the majority of the
San Joaquin Valley; much of Los Angeles and the Inland Empire;
pockets of other communities near ports, freeways, and major
industrial facilities such as refineries and power plants; and
large swaths of the Coachella Valley, Imperial Valley and
Mojave Desert.
2)Is technical assistance an allowable use of GGRF funds? It
seems that the expenditure of GGRF for technical assistance
will not directly reduce GHG emissions. In some cases, it may
facilitate projects which reduce GHG emissions. In other
cases, there may be no measureable result. AB 1532 prohibits
the state from approving allocations for a measure or program
using moneys appropriated from the GGRF except after
determining, based on the available evidence, that the use of
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those moneys furthers the regulatory purposes of AB 32 and is
consistent with law. However, AB 1532 does allow ARB and other
agencies to use GGRF funds for "administrative purposes."
3)Are disadvantaged communities the only entities in need of
technical assistance? This bill anticipates using the general
pool of GGRF revenue for technical assistance, but requires
the technical assistance to target only disadvantaged
communities, and further prohibits these funds from counting
toward the minimum expenditures required by SB 535. This
approach excludes many rural communities that may face similar
challenges in competing for funds, and could benefit from
technical assistance, but do not have the pollution burden to
meet the CalEnviroScreen criteria for disadvantaged community.
REGISTERED SUPPORT / OPPOSITION:
Support
American Lung Association in California
California Coalition for Rural Housing
California League of Conservation Voters
California Vanpool Authority
City of Reedley, Mayor Ray Soleno
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Clean Water Action
Community Water Center
Environmental Defense Fund
Environmental Justice Program of Catholic Charities, Diocese of
Stockton
Greater Fresno Area Chamber of Commerce
La Cooperativa Campesina
Leadership Counsel for Justice and Accountability
LeadingAge California
Safe Routes to School National Partnership
Sierra Club California
South Coast Air Quality Management District
Valley Ag Water Coalition
Valley Clean Air Now
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Opposition
California Chamber of Commerce
Rural County Representatives of California (RCRC)
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092