BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                    AB 1030

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          Date of Hearing:  May 20, 2015


                                 Jimmy Gomez, Chair

          1030 (Ridley-Thomas) - As Amended May 5, 2015

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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          This bill requires state agencies allocating AB 32 cap and trade  
          revenues for projects involving hiring, to prioritize projects  
          that include partnerships with training entities with a proven  
          track record of placing disadvantaged workers in career-track  


                                                                    AB 1030

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          FISCAL EFFECT:

          Unknown, likely absorbable costs (Greenhouse Gas Reduction  


          1)Purpose.  According to the author, this bill presents an  
            opportunity to generate new workforce training  opportunities  
            for disadvantaged workers through the prioritization of  
            projects with inclusive training and hiring policies. 

          2)Background.  The California Global Warming Solutions Act of  
            2006 (AB 32) requires ARB to adopt a statewide GHG emissions  
            limit equivalent to 1990 levels by 2020 and adopt regulations,  
            including market-based compliance mechanisms, to achieve  
            maximum technologically feasible and cost-effective GHG  
            emission reductions.  

            As part of the implementation of AB 32 market-based compliance  
            measures, ARB adopted a cap-and-trade program that caps the  
            allowable statewide emissions and provides for the auctioning  
            of emission credits, the proceeds of which are quarterly  
            deposited into the GGRF available for appropriation by the  

            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.  


                                                                    AB 1030

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            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.  

          3)Disadvantaged Communities.  SB 535 (De León), Chapter 830,  
            Statutes of 2012, requires no less than 10% of cap-and-trade  
            revenues fund projects located within disadvantaged  
            communities, and that 25% of available revenues fund projects  
            that benefit those communities. 

            In October 2014, CalEPA released its list of disadvantaged  
            communities for the purpose of SB 535.  CalEPA relied on  
            CalEnviroScreen, to identify the areas disproportionately  
            burdened by, and vulnerable to, multiple sources of pollution.  
            CalEnviroScreen is a tool that assesses all census tracts in  
            California to identify the areas disproportionally affected  
            and vulnerable to multiple sources of pollution.

            Areas (census tracts) identified as disadvantaged for SB 535's  
            purposes by CalEnviroScreen 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.



                                                                    AB 1030

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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)