BILL ANALYSIS Ó
AB 156
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ASSEMBLY THIRD READING
AB
156 (Perea)
As Amended June 1, 2015
Majority vote
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|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
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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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