BILL ANALYSIS Ó AB 156 Page 1 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, | | AB 156 Page 2 | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- 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. AB 156 Page 3 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 AB 156 Page 4 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 AB 156 Page 5 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 AB 156 Page 6