BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                    AB 1179

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          Date of Hearing:  April 13, 2015


                                 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  

          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  


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            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



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          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  


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          California Black Health Network (CBHN)

          California Pan-Ethnic Health Network (CPEHN)


          None on file

          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  


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