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  







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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  








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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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