BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1336


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          Date of Hearing:  January 21, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1336 (Salas) - As Amended January 14, 2016


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          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  








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          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).








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          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  








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            SB 101 to continue funding for specified existing programs.  





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