BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1030 (Ridley-Thomas) - California Global Warming Solutions
Act of 2006: Greenhouse Gas Reduction Fund.
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|Version: July 7, 2015 |Policy Vote: E.Q. 6 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 17, 2015 |Consultant: Marie Liu |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 1030 would require that the spending of the
Greenhouse Gas Reduction Fund (GGRF) for projects that involve
hiring be prioritized for projects that support targeted
training and hiring of workers from disadvantaged communities
for career-track jobs.
Fiscal
Impact: Likely minor and absorbable costs to the GGRF (special)
to the various state agencies with programs that expend GGRF
funds.
Background: The California Global Warming Solutions Act of 2006 (referred
to as AB 32, HSC §38500 et seq.) requires the California Air
Resources Board (ARB) to determine the 1990 statewide greenhouse
gas (GHG) emissions level, to approve a statewide GHG emissions
AB 1030 (Ridley-Thomas) Page 1 of
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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. All monies, except for fines and
penalties, collected pursuant to a market-based mechanism are
deposited in the Greenhouse Gas Reduction Fund (GGRF)
(Government Code §16428.8).
Existing law requires that the GGRF only be used to facilitate
the achievement of reductions of GHG emissions consistent with
AB 32 (HSC §39710 et seq.). To this end, the Department of
Finance, in consultation with the ARB and any other relevant
state agencies, is required to develop, as specified, a
three-year investment plan for the moneys deposited in the GGRF.
The investment plan must 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. Additionally, the ARB, in
consultation with CalEPA, is required 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.
Existing law, in addition to requiring that GGRF be used to
reduce GHG emissions, also requires that the expenditures take
into account the following factors to the extent feasible:
Maximizing economic, environmental, and public health
benefits to the state;
Fostering job creation by promoting programs carried out
by California workers and businesses;
Complimenting efforts to improve air quality;
Directing investment towards the most disadvantaged
communities and households in the state;
Providing opportunities for community institutions to
participate in and benefit from statewide efforts to reduce
GHG emissions;
Lessen the impacts and effects of climate change on the
state's communities, economy, and environment.
Proposed Law:
AB 1030 would require that the spending of the GGRF for
projects that involve hiring also be prioritized for projects
that support targeted training and hiring of workers from
AB 1030 (Ridley-Thomas) Page 2 of
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disadvantaged communities for career-track jobs.
Staff
Comments: There are a large number of agencies that may use GGRF monies
for projects that involve hiring including the State
Transportation Agency, the Department of Transportation, the
California Energy Commission, the Department of Water Resources,
the Department of Fish and Wildlife, the Department of Forestry
and Fire, and CalRecycle. Of the various agencies that have
programs funded by GGRF that responded to inquiries for costs,
none reported anticipates costs associated by this bill because
either (1) they are already taking into account projects that
will hire and train workers from disadvantaged communities or
(2) this prioritization will occur on the natural by
prioritizing projects located in disadvantaged communities.
The ARB does not believe this bill will require them to change
their GGRF spending guidelines as those guidelines already speak
to job creation.
Staff notes that there are multiple bills being considered by
both houses of the Legislature that propose projects that would
be eligible to receive GGRF funds. It is unclear how these bills
will interact with each other. Staff notes that a discussion on
the spending of GGRF is anticipated in August as part of a
budget discussion.
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