BILL ANALYSIS Ó
AB 1336
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Date of Hearing: January 11, 2016
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 1336
(Salas) - As Amended January 4, 2016
SUBJECT: Greenhouse gases: Community Climate Improvement
Program
SUMMARY: Establishes the Community Climate Improvement Program
(CCIP), administered by the Strategic Growth Council (SGC), to
provide grants for "multicounty, multielement" projects to
reduce or sequester greenhouse gas (GHG) emissions using funds
appropriated from the Greenhouse Gas Reduction Fund (GGRF).
EXISTING LAW:
1)Requires the Air Resources Board (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 GGRF as the repository for all moneys, except
for fines and penalties, collected by ARB from the auction or
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sale of allowances pursuant to a market-based compliance
mechanism (i.e., the cap-and-trade program adopted by ARB
under AB 32).
4)Establishes the GGRF 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 GGRF 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
(DACs); and, 2) a minimum of 10% of the available moneys in
the fund to projects located within identified DACs [SB 535
(De Leon), Chapter 830, Statutes of 2012].
THIS BILL:
1)States the intent of the Legislature to establish a
comprehensive grant program funded by the GGRF for purposes of
investing in regional, "multibenefit" projects that maximize
GHG emissions reductions or sequestration, especially in DACs.
2)Requires SGC, in coordination with ARB, to administer the CCIP
to provide grants for "multicounty, multielement" climate
beneficial projects that maximize GHG emissions reduction or
sequestration.
3)Requires SGC, in coordination with ARB, to develop program
guidelines that do all of the following:
a) Promote projects based on the potential to provide
integrated climate services to the most DACs, especially
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projects that use proven community outreach.
b) Maximize the delivery of multiple climate benefits,
including, but not limited to, clean cars and trucks,
clean energy generation, energy efficiency and
weatherization, organic waste diversion and compost
development, water quality, supply, and waterfowl habitat
improvements, river habitat and access improvements, and
drought-tolerant lawn, park, and urban greening projects.
c) Ensure all ancillary elements of project development
and implementation are eligible for funding if they lead
to better implementation and program delivery.
d) Ensure that project investments funded pursuant to
the program use consistent accounting and modeling
approaches to estimate and monitor GHG emissions and
emissions reductions over time.
e) Promote projects that assist the state in reaching
its climate goals beyond 2020.
f) Promote investments in projects that include
"cobenefits," including, but not limited to, achieving
state and federal air quality goals.
g) Ensure projects funded pursuant to the program
maximize moneys appropriated for the program, create job
opportunities, and are consistent with other laws.
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4)Requires SGC to give priority to projects that demonstrate one
or more of the following characteristics:
a) Regional implementation.
b) The ability to leverage additional public and
private funding.
c) The potential for "cobenefits" or "multibenefit"
attributes.
d) The potential for the project to be replicated.
e) The use of existing regional infrastructure and
institutions.
f) Inclusion of technical assistance.
5)Requires an unspecified percentage of the amount appropriated
for CCIP be made available to projects in the San Joaquin
Valley.
FISCAL EFFECT: Unknown
COMMENTS:
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1)Existing GGRF funding and programs. The 2014-15 Budget Act
allocated GGRF revenues for the 2014-15 fiscal year and
established a long-term plan for the allocation of GGRF
revenues beginning in fiscal year 2015-16. Thirty-five
percent of GGRF is continuously appropriated for investments
in transit, affordable housing, and sustainable communities.
Twenty-five percent is continuously appropriated to continue
the construction of the high-speed rail project. The
remaining 40% is subject to annual appropriation by the
Legislature for investments in programs that include
low-carbon transportation, energy efficiency and renewable
energy, and natural resources and waste diversion. An
expenditure plan for the 40% was not included in the 2015-16
Budget Act, with the exception of $227 million appropriated by
SB 101 to continue funding for specified existing programs.
The remaining 2015-16 revenues, along with 2016-17 revenues,
are available for appropriation this year.
Major GGRF program areas, administering agency, and funding to
date:
a) Transportation and Sustainable Communities
i. High Speed Rail, High Speed Rail
Authority, $750 million
ii. Transit and Intercity Rail Capital
Program, State Transportation Agency, $225 million
iii. Low Carbon Transit Operations Program,
CalTrans, $125 million
iv. Affordable Housing and Sustainable
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Communities Program, SGC, $530 million
v. Low Carbon Transportation, ARB, $325
million
b) Clean Energy and Energy Efficiency Funding
i. Low-Income Weatherization Program,
Community Services and Development, $154 million
ii. Energy Efficiency in Public Buildings,
California Energy Commission, $20 million
iii. Agricultural Energy and Operational
Efficiency, Department of Food and Agriculture, $75
million
iv. Water-Energy Efficiency, Department of
Water Resources, $75 million
c) Natural Resources and Waste Diversion Funding
i. Wetlands and Watershed Restoration,
Department of Fish and Wildlife, $27 million
ii. Urban Forestry, Forest Health
Restoration, and Reforestation, CALFIRE, $42 million
iii. Waste Diversion, CalRecycle, $31 million
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2)DACs. SB 535 directed that, in addition to reducing GHG
emissions, a quarter of the proceeds from the GGRF must go to
projects that provide a benefit to DACs, as identified by the
California Environmental Protection Agency (CalEPA). A
minimum of 10% of the funds must be for projects located
within those communities.
To identify DACs for the purpose of SB 535, CalEPA developed
the California Communities Environmental Health Screening Tool
(CalEnviroScreen), which 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 Desert.
3)Is this bill's emphasis on DACs and set-aside for the San
Joaquin Valley appropriate for a statewide program? While the
existing GGRF-funded programs can and do fund regional
projects, this bill establishes a program whose purpose is to
fund regional projects with multiple GHG-reduction elements.
It's not clear why the program should fund projects primarily
or exclusively in DACs, or why an unspecified percentage
should be set aside specifically for the San Joaquin Valley.
There are many communities, urban and rural, throughout the
state that may develop worthy programs, but do not have the
pollution burden to be a DAC according to CalEnviroScreen.
The author and the committee may wish to consider broadening
the criteria to include non-DAC low-income communities and
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eliminating the set aside for the San Joaquin Valley.
4)Technical and clarifying amendments. The author and the
committee may wish to consider adopting technical and
clarifying amendments to eliminate unnecessary and vague
terms, such as "multielement climate beneficial" and
"integrated climate services," as well as project types that
aren't clearly related to reducing GHG, such as "water
quality, supply, and waterfowl habitat improvements, river
habitat and access improvements, and drought-tolerant lawn,
park, and urban greening projects."
REGISTERED SUPPORT / OPPOSITION:
Support
Fresno Economic Opportunities Commission
Opposition
California Chamber of Commerce
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092
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