BILL ANALYSIS Ó AB 1030 Page 1 ASSEMBLY THIRD READING AB 1030 (Ridley-Thomas) As Amended May 5, 2015 Majority vote ------------------------------------------------------------------ |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+--------------------| |Natural |9-0 |Williams, Dahle, | | |Resources | | | | | | | | | | | |Cristina Garcia, | | | | |Hadley, Harper, | | | | |McCarty, Rendon, | | | | |Mark Stone, Wood | | | | | | | |----------------+------+---------------------+--------------------| |Appropriations |15-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Holden, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | AB 1030 Page 2 ------------------------------------------------------------------ SUMMARY: Requires state agencies allocating moneys from the Greenhouse Gas Reduction Fund (GGRF) for projects that involve hiring to prioritize projects that include partnerships with training entities that have a proven track record of placing disadvantaged workers in career-track jobs. 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 greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2)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 GGRF and available for appropriation by the Legislature. 3)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. 4)Prohibits the allocation of GGRF for a measure or program except after determining, based on the available evidence, that the use AB 1030 Page 3 of those moneys furthers the regulatory purposes of AB 32 and is consistent with law. 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 León), Chapter 830, Statutes of 2012]. FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown, likely absorbable costs. COMMENTS: The 2014 to 2015 Budget Act allocates cap-and-trade revenues for the 2014 to 2015 fiscal year and establishes a long-term plan for the allocation of cap-and-trade revenues beginning in fiscal year 2015 to 2016. 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, 25% 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. A minimum of 10% of the funds must be for projects located within those communities. AB 1030 Page 4 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. Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0000492