BILL ANALYSIS Ó AB 1336 Page 1 Date of Hearing: January 21, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1336 (Salas) - As Amended January 14, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|8 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill establishes the Community Climate Improvement Program (Program) and requires the Strategic Growth Council (SGC) to administer the Program in coordination with the California Air Resources Board (ARB). This bill requires SCP to implement the AB 1336 Page 2 program consistent with the California Global Warming Solutions Act of 2006 (AB 32, Chapter 488, Statutes of 2006) funded by cap-and trade revenues and the investment plan adopted by ARB. Specifically, this bill: 1)Requires the Program to provide grants for the development and implementation of regional projects that reduce or sequester greenhouse gas (GHG) emissions. 2)Requires SGC, in coordination with ARB, to develop guidelines for the Program as specified. 3)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. 1)Requires SGC to implement the Program with Greenhouse Gas Reduction Funds (GGRF) appropriated by the Legislature. FISCAL EFFECT: 1)Unknown costs pressures, likely in the tens to hundreds of millions of dollars, to fund the Program (GGRF). AB 1336 Page 3 2)Unknown increased initial and ongoing administrative costs for SGC to establish and administer the Program (GGRF), likely in the hundreds of thousands of dollars. 3)Increased initial and ongoing administrative costs for ARB in the $500,000 to $800,000 range (GGRF). COMMENTS: 1)Purpose. According to the author, this bill establishes a comprehensive grant program with AB 32 cap-and-trade revenues to invest in regional projects that reduce or sequester GHG emissions, especially in disadvantaged communities. 2)Background. 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 AB 1336 Page 4 SB 101 to continue funding for specified existing programs. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081