BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 156


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          156 (Perea) - As Amended April 27, 2015


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          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.








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          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. 








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             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  








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            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  








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            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
















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