BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                    AB 1030

                                                                    Page  1

          Date of Hearing:  April 27, 2015


                                 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  


                                                                    AB 1030

                                                                    Page  2

            (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.


                                                                    AB 1030

                                                                    Page  3

          FISCAL EFFECT:  Unknown


          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  


                                                                    AB 1030

                                                                    Page  4

          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.



                                                                    AB 1030

                                                                    Page  5


          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



                                                                    AB 1030

                                                                    Page  6

          Plumbing-Heating-Cooling Contractors Association of California

          Western Electrical Contractors Association

          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)