BILL ANALYSIS Ó
AB 1030
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Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 1030
(Ridley-Thomas) - As Introduced February 26, 2015
SUBJECT: California Global Warming Solutions Act of 2006:
Greenhouse Gas Reduction Fund
SUMMARY: Requires state agencies allocating moneys from the
Greenhouse Gas Reduction Fund (GGRF) to prioritize projects
based on specified employment-related factors.
EXISTING LAW:
1)Requires the Air Resources Board (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
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(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
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, including fostering job creation by
promoting in-state GHG emissions reduction projects carried
out by California workers and businesses.
5)Prohibits the allocation of GGRF for a measure or program
except after determining, based on the available evidence,
that the use of those moneys furthers the regulatory purposes
of AB 32 and is consistent with law.
6)Requires the investment plan to allocate: 1) a minimum of 25%
of the available moneys in the fund to projects that provide
benefits to identified disadvantaged communities; and, 2) 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].
THIS BILL requires a state agency that allocates GGRF to
prioritize a project that includes any of the following:
1)Project labor agreements with targeted hire goals.
2)Community workforce agreements that connect local residents to
jobs or training opportunities.
3)Partnerships with training entities that have a proven track
record of placing disadvantaged workers in career-track jobs.
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FISCAL EFFECT: Unknown
COMMENTS:
1)Background. 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 percent 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 percent 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 greenhouse gas
emissions, a 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 percent of the
funds must be for projects located within those communities.
2)Author's statement:
AB 1030 presents a tremendous opportunity to generate new
workforce training and job opportunities for disadvantaged
workers through the prioritization of good projects that not
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only accelerate emission reductions across the state, but that
have inclusive training and hiring policies for workers facing
barriers to employment and that create good paying career track
jobs with benefits.
3)Is GGRF the right lever? First and foremost, GGRF moneys must
be used to facilitate GHG emission reductions consistent with
AB 32. It is not clear how a state agency will reconcile that
requirement with this bill's requirement to prioritize a
project that includes a project labor agreement, community
workforce agreement, or partnership with a training entity.
The author and the committee may wish to consider amendments
to clarify that these employment-related priorities are
subordinate to the objective of reducing GHG emissions.
It is also evident that many legitimate uses of GGRF do not
involve hiring or training of employees or contractors.
Therefore, the author and the committee may wish to consider
amendments to limit the scope of the bill to projects with a
hiring or training element.
4)Author's amendments. The author has indicated his intent to
remove project labor agreements and community workforce
agreements from the bill (i.e., striking page 2, line 35-page
3, line 2), leaving training partnerships as the only factor.
REGISTERED SUPPORT / OPPOSITION:
AB 1030
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Support
California Black Health Network
California Rural Legal Assistance Foundation
Communities United for Restorative Youth Justice
Fathers & Families of San Joaquin
Latino Coalition for a Healthy California
Leadership Counsel for Justice & Accountability
Physicians for Social Responsibility, Los Angeles
Urban Habitat
Valley Latino Environmental Advancement Project
Opposition
AB 1030
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Plumbing-Heating-Cooling Contractors Association of California
Western Electrical Contractors Association
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092