BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 156
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|Author: |Perea |
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|Version: |7/1/2015 |Hearing |7/15/2015 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Laurie Harris |
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SUBJECT: California Global Warming Solutions Act of 2006:
disadvantaged communities.
ANALYSIS:
Existing law:
1) Under the California Global Warming Solutions Act of 2006,
requires the California Air Resources Board (ARB) to
determine the 1990 statewide greenhouse gas (GHG) emissions
level, to approve a statewide GHG emissions limit equivalent
to that level that will be achieved by 2020, and to adopt GHG
emissions reductions measures by regulation. ARB is
authorized to include the use of market-based mechanisms to
comply with the regulations. (Health and Safety Code (HSC)
§38500 et seq.)
2) Establishes the Greenhouse Gas Reduction Fund (GGRF) as a
special fund in the State Treasury; requires that all moneys,
except for fines and penalties, collected pursuant to a
market-based mechanism be deposited in the fund; and requires
the Department of Finance, in consultation with the state
board and any other relevant state agency, to develop, as
specified, a three-year investment plan for the moneys
deposited in the GGRF. (Government Code §16428.8)
3) Requires that GGRF moneys be used to facilitate the
achievement of reductions of GHG emissions in the state
consistent with the Global Warming Solutions Act of 2006.
Appropriations of the GGRF funds in the annual budget are
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required to be consistent with the three-year investment
plan. (HSC §39712)
4) Under the GGRF Investment Plan and Communities Revitalization
Act ("Act"), requires the California Environmental Protection
Agency (CalEPA) to identify disadvantaged communities for
investment opportunities related to the Act. (HSC §39711)
5) Requires the GGRF investment plan to allocate a minimum of
25% of the funds to projects that benefit disadvantaged
communities and to allocate 10% of the funds to projects
located within disadvantaged communities. (HSC §39713)
6) Requires the ARB, in consultation with the California
Environmental Protection Agency (CalEPA), to develop funding
guidelines for administering agencies receiving allocations
of GGRF funds that include a component for how agencies
should maximize benefits to disadvantaged communities. (HSC
§39715)
7) Requires that moneys in the GGRF be available, upon
appropriation, to the ARB and administering agencies for
administrative purposes in carrying out the Act. (HSC
§39718)
This bill:
1) Requires the ARB to prepare and post on its Internet Web site
a report on projects funded to benefit disadvantaged
communities, including for each project: a general
description, location of implementation, estimated date of
completion, and award amount, as well as the status of any
moneys in the fund not awarded pursuant to the Section and
why those moneys were not awarded.
2) Requires the investment plan, developed pursuant to Section
39716, to allocate GGRF moneys to the ARB to establish and
implement a technical assistance program for eligible
applicants assisting disadvantaged communities that ARB
determines require assistance in accessing GGRF moneys.
Eligible applicants include, but are not limited to, regional
agencies and nonprofit organizations coordinating with local
governments.
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3) Redefines "disadvantaged communities" to mean census tracts
identified as disadvantaged pursuant to Section 39711 or with
median incomes at or below 80 percent of the statewide median
household income.
4) Requires the ARB, in consultation with CalEPA and GGRF
administering agencies, to develop guidelines to implement
the program and to provide an opportunity for public comment
prior to finalizing the guidelines.
5) Requires ARB to prioritize technical assistance to
communities demonstrating the greatest need for increased
capacity to access programs using GGRF moneys.
6) Requires that the established program provide assistance to
eligible applicants with any of the following activities:
a) Identifying state agencies with appropriate grant
programs.
b) Developing competitive project proposals.
c) Coordinating existing local programs to reduce GHG
emissions with new programs receiving moneys pursuant to
the chapter.
d) Conduct community outreach to residents of
disadvantaged communities that the ARB determines require
assistance on programs, as specified, on consumer programs
receiving state or local moneys pursuant to the chapter or
other programs that reduce GHGs.
7) Requires that technical assistance promote programs that
reduce emission of GHGs and demonstrate a direct, meaningful
benefit to disadvantaged communities and may have cobenefits
as specified.
Background
1) Cap-and-Trade Expenditure Plan in the Annual Budget &
Administering Agencies.
For the 2014-15 budget year, the Budget provides $832 million
of cap-and-trade proceeds to reduce GHG emissions and meet SB
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535 (de León, Chapter 830, Statutes of 2012) goals. Of the
Budget, 60% is permanently allocated to high-speed rail,
public transit, affordable housing, and sustainable
communities, administered by four departments. Seven
additional departments receive appropriations to administer
programs for low carbon transportation, energy efficiency
upgrades and energy efficiency for public buildings,
agricultural and operational efficiency, wetlands and
watershed restoration, fire prevention and urban forestry
projects, and waste diversion.
2) Disadvantaged Communities.
CalEnviroScreen was developed by OEHHA, at the request of
CalEPA and pursuant to the GGRF Investment Plan and
Communities Revitalization Act (SB 535, de León, Chapter 830,
Statutes of 2012), to determine a list of disadvantaged
communities in California that are the most vulnerable and
pollution-burdened. The tool will be used to help direct
those GGRF investments targeted for disadvantaged
communities, as well as to guide CalEPA in administering its
Environmental Justice Small Grants Program and prioritizing
resources for cleanup and abatement projects and outreach
efforts by the Agency.
Using CalEnviroScreen, CalEPA determined a list of
disadvantaged communities throughout California in October
2014. According to CalEPA, the current version incorporates
19 indicators, including those for exposures, environmental
effects, sensitive populations, and socioeconomic factors.
The areas within which the majority of disadvantaged
communities were identified included the San Joaquin Valley,
parts of Los Angeles and the Inland Empire, and large
portions of the Coachella Valley and Mojave Desert, in
addition to communities located near industrial areas and
major roadways.
3) ARB Reporting.
The ARB currently develops an annual report which includes
the program-level status of funds appropriated from the GGRF
targeted to disadvantaged communities and benefits that have
been achieved by each state agency. However, the report does
not include project-level information.
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The ARB has reportedly requested approval from the California
Technology Agency (CTA) to develop and implement an
information technology system that would track individual
GGRF-funded projects implemented by state agencies and
include a public interface for information such as that
specified by this bill.
Comments
1) Purpose of Bill.
According to the author, "AB 156 would ensure that
disadvantaged communities have the ability to apply
competitively for Greenhouse Gas Reduction Fund money by
establishing a technical assistance program at the ARB. This
bill will increase access for disadvantaged communities to
cap-and-trade revenue and assist them with technical
assistance funding to navigate the pre-planning and
application process. The application process can be
overwhelming for communities most severely impacted by carbon
emissions and without technical assistance these communities
will not have the means to compete with others for grants."
2) Use of GGRF Moneys for Technical Assistance?
By using GGRF moneys for technical assistance, some of the
funds would likely assist project proposals that are not
funded. Therefore, the moneys would not facilitate the
reduction of GHG emissions, as required. However, ARB and
administering agencies are allowed to use GGRF moneys for
"administrative purposes," pursuant to Section 39718 of the
Health and Safety Code for implementation of the GGRF
Investment Plan and Communities Revitalization Act.
Technical assistance and outreach could fall within this
category of approved use for the moneys.
Legislative Counsel provided a written opinion that "it is
[their] opinion that the Legislature may lawfully appropriate
moneys from the Greenhouse Gas Reduction Fund to pay for the
technical assistance program proposed in Assembly Bill No.
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156, as amended April 27, 2015." That version of the bill
included technical assistance to eligible applicants
assisting both disadvantaged communities and those with
median incomes at or below 80% of the statewide median income
and that the state board determines require technical
assistance, as in the current version amended July 1, 2015.
3) Precedent for Technical Assistance for Disadvantaged
Communities.
AB 92 (Assembly Committee on Budget, Chapter 2, Statutes of
2015) established the Office of Sustainable Water Solutions
within the State Water Resources Control Board. The Office
is authorized to provide technical assistance to
disadvantaged communities and small drinking water systems
and wastewater systems, including grant application
assistance, outreach and education in vulnerable communities,
financial management support, and facilitation of discussions
within and between communities.
SB 732 (Steinberg, Chapter 729, Statutes of 2008), within the
Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, established
implementation provisions, including a specification that,
"State agencies that are authorized to award a loan or grant
financed by this division shall provide technical assistance
with regard to the preparation of an application for a loan
or grant in a manner that, among other things, addresses the
needs of economically disadvantaged communities."
4) Who Needs Assistance?
In the Assembly Natural Resources Committee, an amendment was
taken to expand the technical assistance program from
eligible applicants assisting just disadvantaged communities
as defined by the CalEnviroScreen tool to also encompass
communities with median incomes at or below 80% of the median
household income that ARB determines need assistance. It
would stand to reason that ARB would determine the need for
assistance not solely on income, but also on the GHG impact
burdens as specified in the tool.
Through CalEnviroScreen, CalEPA has identified the top 25% of
the highest scoring census tracts to identify disadvantaged
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communities. If disadvantaged communities were broadened to
include communities with median incomes at or below 80% of
the statewide median income, the disadvantaged community
classification would expand to encompass a larger percentage
of the population. It follows that there would be less money
available per eligible applicant for any funds budgeted for
technical assistance.
The basic questions surrounding these changes are:
Which communities most need technical assistance
in applying for moneys from the greenhouse gas reduction
fund given the requirements of the fund's use, and how
would those communities be prioritized?
What capacity is available for meaningful
technical assistance?
1) What Type of Assistance is Appropriate?
The bill currently tasks ARB with providing multiple types of
technical assistance, some of which the board is already
working to implement, such as assistance with
program-specific requirements and eligibility criteria. An
additional provision in the bill would task ARB with
providing assistance to eligible applicants in developing
competitive project proposals.
ARB is the agency responsible, in consultation with the
California Environmental Protection Agency (CalEPA), for
developing funding guidelines for administering agencies
receiving allocations of GGRF. As well, ARB is involved in
the development of the investment plan. Thus, the committee
may wish to consider whether it is appropriate to have ARB
both overseeing GGRF moneys and guideline development and
also helping selected groups to develop proposal for the
moneys.
2) Clarifying Amendments.
a) The current bill language redefines a disadvantaged
community within a single chapter of code. This causes
inconsistency and confusion. Therefore, an amendment is
needed to define the communities receiving assistance in
the bill language as "eligible communities" instead of
"disadvantaged communities."
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b) The definition for disadvantaged communities also
refers to communities with "median incomes" in comparison
to statewide "median household incomes." This is
inconsistent, and to clarify, an amendment is needed to
remove the word "household" to state "communities with a
median income at or below 80 percent of the statewide
median income" as reflected in the amendments taken in the
Assembly Natural Resources Committee.
Related/Prior Legislation
SB 398 (Leyva) would establish the Green Assistance Program
(GAP) to be administered by the Secretary of CalEPA in concert
with environmental justice programs to provide technical
assistance and outreach to small businesses, small nonprofits,
and disadvantaged communities in applying for GGRF moneys. SB
398 is currently referred to the Assembly Natural Resources
Committee.
AB 1179 (Rendon) would require ARB to prepare and post on its
Internet Web site a report on the GGRF funded projects providing
benefits to, or located within, disadvantaged communities. AB
1179 was held under suspense in the Assembly Committee on
Appropriations, and the language of the bill has been
incorporated into AB 156, also adding Assembly Member Rendon as
a principle co-author, with agreement from both authors and
Assembly Appropriations staff.
SB 535 (De León, Chapter 830, Statutes of 2012) required CalEPA
to identify disadvantaged communities for investment
opportunities using the GGRF. OEHHA developed CalEnviroScreen
pursuant to this requirement to determine the state's most
pollution-burdened and vulnerable communities.
SOURCE: Valley Clean Air Now (Valley CAN) &
Leadership Counsel for Justice and Accountability
SUPPORT:
American Lung Association in California
Breathe California
California Bicycle Coalition
California Coalition for Rural Housing
California Climate and Agriculture Network
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California Environmental Justice Alliance
California Equity Leaders Network
California Institute for Rural Studies
California League of Conservation Voters
California ReLeaf
California Vanpool Authority
Catholic Charities, Diocese of Stockton
Center for Sustainable Neighborhoods
City of Firebaugh, City Manager Kenneth McDonald
City of Fowler, City Manager David Elias
City of Huron, Mayor Sylvia V. Chavez
City of Kerman, City Manager Luis Patlan
City of Kingsburg, Mayor Chet Reilly
City of Mendota, City Manager Vince DiMaggio
City of Parlier, City Manager Israel Lara, Jr.
City of Reedley, Mayor Ray Soleno
City of Sanger, Mayor Joshua Mitchell
Clean Water Action
Community Water Center
Creswell Consulting
Environmental Defense Fund
Fresno Chamber of Commerce
Fresno Council of Governments
Housing California
La Cooperativa Campesina
Latino Coalition for a Healthy California
Leading Age California
Public Interest Law Project
Regional Asthma Management & Prevention (RAMP)
Rural Smart Growth Task Force
Safe Routes to School National Partnership
San Joaquin Valley Air Pollution Control District
Self Help Enterprises
Sierra Business Council
Sierra Club California
South Coast Air Quality Management District (SCAQMD)
The Greenling Institute
The Nature Conservancy
Union of Concerned Scientists
Valley Ag Water Coalition
OPPOSITION:
None received
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ARGUMENTS IN
SUPPORT: A coalition of environmental and public health
advocates state, "This bill will help bridge the gap for those
who could most benefit from co-benefits associated with reduced
greenhouse gas emissions but have difficulty applying for
available funds. Too often, DACs [disadvantaged communities] do
not have the staff capacity of resources to identify potential
funding opportunities or assemble detailed and competitive grant
applications. AB 156 has the potential to make DACs more
competitive by helping them identify opportunities and navigate
the application and research process to apply and receive these
funds."
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