BILL ANALYSIS Ó AB 1179 Page 1 Date of Hearing: April 13, 2015 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 1179 (Rendon) - As Introduced February 27, 2015 SUBJECT: California Global Warming Solutions Act of 2006: disadvantaged communities: report SUMMARY: Requires the Air Resources Board (ARB) to report on projects funded in or benefiting disadvantaged communities pursuant to SB 535. EXISTING LAW: 1)Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Núñez), Chapter 488, Statutes of 2006], to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2)Authorizes ARB to permit the use of market-based compliance mechanisms to comply with GHG reduction regulations, once specified conditions are met. 3)Establishes the Greenhouse Gas Reduction Fund and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based AB 1179 Page 2 compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the Fund and available for appropriation by the Legislature. 4)Establishes the Greenhouse Gas Reduction Fund 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. 5)Requires the investment plan to allocate: 1) a minimum of 25% of the available moneys in the fund to projects that provide benefits to identified disadvantaged communities; and, 2) a minimum of 10% of the available moneys in the fund to projects located within identified disadvantaged communities [SB 535 (De Leon), Chapter 830, Statutes of 2012]. THIS BILL requires ARB to prepare, and post on its website, a report on the projects funded pursuant to SB 535. The report must include: 1)A general description of the project. 2)The location where the project will be implemented. 3)The estimated date of completion of each project. 4)The amount awarded to each project. 5)The status of any moneys in the fund that are not awarded pursuant to this section and the reasons, if any, why those moneys have not been awarded. FISCAL EFFECT: Unknown COMMENTS: AB 1179 Page 3 Background. 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. The Budget continuously appropriates 35 percent 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 percent 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 greenhouse gas emissions, a quarter 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 (CalEPA). A minimum of 10 percent of the funds must be for projects located within those communities. In October 2014, CalEPA released its list of disadvantaged communities for the purpose of SB 535. To inform its decision, CalEPA relied on the California Communities Environmental Health Screening Tool (CalEnviroScreen), a tool that assesses all census tracts in California to identify the areas disproportionately burdened by and vulnerable to multiple sources of pollution. Areas (census tracts) identified as disadvantaged for SB 535's purposes by CalEnviroScreen 2.0 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 AB 1179 Page 4 Desert. REGISTERED SUPPORT / OPPOSITION: Support California Black Health Network (CBHN) California Pan-Ethnic Health Network (CPEHN) Opposition None on file Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916) 319-2092 AB 1179 Page 5