BILL ANALYSIS Ó AB 156 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 156 (Perea) - As Amended April 27, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: SUMMARY: This bill requires the Air Resources Board (ARB) to include technical assistance funds to assist disadvantaged and low-income communities in its AB 32 Greenhouse Gas Reduction Fund (GGRF) Investment Plan. AB 156 Page 2 Specifically, this bill: 1)Requires the Investment Plan to allocate technical assistance funds to ARB to assist disadvantaged communities in developing project funding proposals to reduce GHG. 2)Prohibits technical assistance funds from counting towards the 25% set aside for projects that benefit disadvantaged communities and the 10% set aside for projects located within identified disadvantaged communities. 3)Requires ARB, upon appropriation of funds, to establish a comprehensive technical assistance program for communities that meet the California Communities Environmental Health Screening Tool (CalEnviroScreen) criteria for disadvantaged communities and other communities ARB determines require technical assistance with median incomes at or below 80% of the statewide median income. 4)Requires the technical assistance program to provide assistance to applicants with any of the following: a) Identifying state agencies with appropriate grant programs. b) Developing competitive project proposals to apply for funds. c) Coordinating existing programs to reduce GHG emissions with new programs funded by the GGRF. AB 156 Page 3 d) Conducting community outreach on programs, including, but not limited to, programs that improve air quality, reduce residential and commercial water use, and increase residential and commercial energy efficiency. FISCAL EFFECT: Increased administrative costs to the ARB (GGRF) potentially in the millions of dollars. Some costs may be reduced by contracting with nonprofit agencies and regional air boards. COMMENTS: 1)Purpose. This bill seeks to improve the quality of life in disadvantaged communities (DACs) by funding GHG reduction projects. DACs often have a difficult time bringing the right technology, project, or program to mitigate and reduce GHG emissions. Because many disadvantaged communities lack the technical and managerial resources to apply for help, it is difficult to be awarded funds for projects that can reduce the amount of GHG emissions in their communities. Therefore, these communities are often left with limited options to improve their environment. Various state departments that are appropriated moneys from the GGRF fund administer the funding for these programs and projects. These agencies then distribute the funds in rebates, loans, and grants to the most qualified candidates. Some DACs with most need do not participate because they do not have the consultants, research, and money to apply competitively. The CalEnviroScreen 2.0 report identifies a long list of AB 156 Page 4 disadvantaged communities that need to apply for money and programs to reduce the impact of GHG emissions in their communities. The inability for disadvantaged communities to apply competitively for grants is not a new phenomenon. In the past, laws and policies have been drafted to empower these communities by providing technical assistance. For example, the State Water Resource Control Board provides free TA across the state for the neediest DACs. 2)Background. The California Global Warming Solutions Act of 2006 (AB 32) requires ARB to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations, including market-based compliance mechanisms, to achieve maximum technologically feasible and cost-effective GHG emission reductions. As part of the implementation of AB 32 market-based compliance measures, ARB adopted a cap-and-trade program that caps the allowable statewide emissions and provides for the auctioning of emission credits, the proceeds of which are quarterly deposited into the GGRF available for appropriation by the Legislature. 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% 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% will be appropriated annually by the Legislature for investments in programs that include low-carbon transportation, energy efficiency and AB 156 Page 5 renewable energy, and natural resources and waste diversion. 3)Disadvantaged Communities. SB 535 (De León), Chapter 830, Statutes of 2012, requires no less than 10% of cap-and-trade revenues fund projects located within disadvantaged communities, and that 25% of available revenues fund projects that benefit those communities. In October 2014, CalEPA released its list of disadvantaged communities for the purpose of SB 535. CalEPA relied on CalEnviroScreen, to identify the areas disproportionately burdened by and vulnerable to multiple sources of pollution. CalEnviroScreen is a tool that assess all census tracts in California to identify the areas disproportionally affected and vulnerable to multiple sources of pollution. Areas (census tracts) identified as disadvantaged for SB 535's purposes by CalEnviroScreen 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. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 156 Page 6