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. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 7, 2015 |Policy Vote: E.Q. 6 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- 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 ? 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 ? 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. -- END --