BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 156


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          ASSEMBLY THIRD READING


          AB  
          156 (Perea)


          As Amended  June 1, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Natural         |8-0   |Williams, Dahle,    |                      |
          |Resources       |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Cristina Garcia,    |                      |
          |                |      |Hadley, McCarty,    |                      |
          |                |      |Rendon,             |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Mark Stone, Wood    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                      |
          |                |      |Bonta, Calderon,    |                      |
          |                |      |Chang, Daly,        |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |








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          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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          SUMMARY:  Requires the Greenhouse Gas Reduction Fund (GGRF)  
          Investment Plan to allocate technical assistance funds to the Air  
          Resources Board (ARB) to assist disadvantaged and low-income  
          communities in developing greenhouse gas (GHG) reduction project  
          funding proposals.  Further requires ARB to report on projects  
          funded in or benefiting disadvantaged communities.  Specifically,  
          this bill:


          1)Requires the Investment Plan to allocate technical assistance  
            funds to ARB to assist disadvantaged communities and other  
            communities with median incomes at or below 80% of the statewide  
            median income 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.


             b)   Developing competitive project proposals to apply for  
               funds.


             c)   Coordinating existing local programs to reduce GHG  
               emissions with new programs receiving GGRF funds.









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             d)   Conducting community outreach on consumer programs or  
               other programs that reduce GHG emissions. 


          4)Requires ARB to prepare, and post on its website, a report on  
            the projects funded pursuant to SB 535, including a general  
            description of the project, the location where the project will  
            be implemented, the estimated date of completion of each  
            project, the amount awarded to each project, and the status of  
            any moneys in the fund that are not awarded pursuant to this  
            section and the reasons, if any, why those moneys have not been  
            awarded.


          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  
            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  








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            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:  a) a minimum of 25%  
            of the available moneys in the fund to projects that provide  
            benefits to identified disadvantaged communities; and, b) 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].  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, 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.   
          Increased costs of $200,000 for ARB (GGRF) to collect data and  
          make it available in a format consistent with the reporting  
          requirements.


          COMMENTS:  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 renewable energy, and natural resources and waste diversion.  



          SB 535 directed that, in addition to reducing GHG emissions, a  








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          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% 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.

          In addition to targeting disadvantaged communities, this bill  
          includes other communities at or below 80% of the statewide median  
          income that ARB determines require technical assistance.  This  
          includes 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.




          Analysis Prepared by:                                               
                          Lawrence Lingbloom / NAT. RES. / (916) 319-2092     
                                                                    FN:  
          0000844










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