BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1179


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1179 (Rendon) - As Introduced February 27, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:    
          No


          


          SUMMARY:










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          This bill requires the Air Resources Board (ARB) to prepare and  
          post on its website a report on AB 32 Greenhouse Gas Reduction  
          Fund (GGRF) projects funded in or benefiting disadvantaged  
          communities pursuant to existing law.  The report must include:   



          1)A general description of the project.


          2)The location where the project will be implemented


          3)The estimated completion date of each project.


          4)The amount awarded to each project from the GGRF.


          FISCAL EFFECT:


          Increased costs of $200,000 for ARB (GGRF) to collect data and  
          make it available in a format consistent with the reporting  
          requirements.


          Data collected by the agencies cover a diversity of project  
          types with a wide variety of information and formats.  The new  
          tasks specific to this bill include:

          1)Identifying data for 14 GGRF agencies, more than 40  
            sub-programs, hundreds of project types, and thousands of  
            individual projects and mapping individual projects.

          2)Verifying that each project meets the SB 535 criteria and is a  
            benefit to a disadvantaged community.










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          3)Posting GGRF projects benefitting disadvantaged communities  
            and their status on ARB's website.



          COMMENTS:


          1)Purpose.  The purpose of this bill is to increase transparency  
            and public access to information regarding the funding of  
            projects in disadvantaged communities from AB 32 cap-and-trade  
            revenues.


          2)Background. The California Global Warming Solutions Act of  
            2006 (AB 32) requires ARB to adopt:  a) statewide GHG  
            emissions limit equivalent to 1990 levels by 2020; and b)  
            regulations, including market-based compliance mechanisms, to  
            achieve maximum technologically feasible and cost-effective  
            GHG emission reductions.  

            As part of the implementation of AB 32 market-based compliance  
            measures, ARB adopted a cap-and-trade program that caps the  
            allowable statewide emissions and provides for the auctioning  
            of emission credits, the proceeds of which are quarterly  
            deposited into the GGRF available for appropriation by the  
            Legislature.  

            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% 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  








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            high-speed rail.  The remaining 40% 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 (De León), Chapter 830, Statutes of 2012, requires no  
            less than 10% of cap-and-trade revenues fund projects located  
            within disadvantaged communities, and that 25% of available  
            revenues fund projects that benefit those communities. 

          3)Current Reporting.   ARB currently develops an annual report  
            that provides a program-level status of GGRF appropriations  
            and disadvantaged community benefits achieved by each State  
            agency.  The report does not include individual project-level  
            information.

            ARB has requested approval from the California Technology  
            Agency (CTA) to develop and implement an information  
            technology system that would track individual GGRF funded  
            projects implemented by State agencies and would include a  
            public interface that includes the information requested in  
            this bill.

            Once ARB receives approval of the GGRF project tracking system  
            from CTA, the project tracking system is expected to be  
            operational within two years. 

            This bill would require ARB to work with administering  
            agencies to define manual reporting and data capture processes  
            while the project tracking system is still under development.   
              The author may wish to amend this bill to require program  
            related reporting.




             









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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081