BILL ANALYSIS Ó
AB 1555
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON BUDGET
Philip Ting, Chair
AB 1555
(Gomez) - As Amended March 28, 2016
SUBJECT: Greenhouse Gas Reduction Fund
SUMMARY: Appropriates $800 million Greenhouse Gas Reduction
Funds for various programs in 2016. Specifically, this bill:
1) Appropriates $300 million to the Air Resources Board for
the following programs:
a. $290 million for low carbon transportation and
infrastructure programs; and
b. $10 million for active transit and transit passes.
1) Appropriates $240 million for clean energy communities
including the following programs:
a. $100 million to the Department of Community
Services and Development and the California
Conservation Corp for weatherization and low-income
solar rooftop programs, with an unspecified earmark of
funding for rooftop solar;
b. $100 million to the California State Energy
Resources Conservation and Development Commission and
the Department of Water Resources for equipment and
other replacement programs, including turf and toilet
replacement;
AB 1555
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c. $10 million to the Department of Water
Resources for energy efficient ground water pump
replacement grant programs;
d. $20 million to provide incentive programs for
waste diversion, biogas development, and compost
programs, including grants to agriculture and urban
waste organic diversion facilities; of this amount:
i. $5 million would be appropriated to
the Department of Food and Agriculture, and
ii. $15 million would be appropriated
to the Department of Resources Recycling and
Recovery; and
e. $10 million to the Department of Food and
Agriculture for on-farm energy and water efficiency
programs.
2) Appropriates $100 million to the Department of Fish and
Wildlife for wetland development, rehabilitation, and
enhancement.
3) Appropriates $85 million to the California Coastal
Conservancy for wetland and watershed restoration, and
carbon sequestration.
4) Appropriates $15 million to the Natural Resources Agency
for riparian and revegetation programs.
5) Appropriates $25 million to the Natural Resources Agency
for local-climate-beneficial projects for urban greening,
urban canopies, urban brownfield conversion, and other
related projects.
6) Appropriates $10 million to the Natural Resources Agency
for agricultural and rangeland carbon sequestration
programs
7) Appropriates $25 million to the Department of Forestry
and Fire Protection for urban forestry.
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8) Expresses Legislative Intent to use $150 million of
additional Greenhouse Gas Reduction funds to fund future
legislative priorities.
FISCAL EFFECT: This bill would appropriate $800 million of the
available balance of the Greenhouse Gas Reduction Fund for
various programs. While this fund does have sufficient balance
to allow this appropriation, the Governor's 2016-17 budget
proposal also seeks to use the same funds for programs in the
budget year.
COMMENTS: This bill would appropriate $800 million,
approximately half of the current Greenhouse Gas Reduction Fund
balance in 2016. While the Greenhouse Gas Reduction fund
currently has a $1.6 billion balance, the underlying revenue for
the fund is likely to decline as the number of pollution
allowances available for sale declines in future years and 60
percent of all new Greenhouse Gas Reduction funds are
continuously appropriated for programs. Therefore, this fund
balance would be unlikely to grow in future years and these
one-time funds would only be available for one-time purposes.
The Governor's proposed 2016-17 Budget includes a spending plan
that has a great deal of overlap with appropriations contained
in this bill. The Governor's $3.1 billion plan contains
additional programmatic elements beyond what are proposed by
this bill. However, this bill includes funding for active
transportation and transit passes, which are not included in the
Governor's proposal.
It is unlikely this bill could be enrolled before the 2016-17
budget was in place, so the funding assumed in this bill may
already be appropriated through the budget process.
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REGISTERED SUPPORT / OPPOSITION:
Support
None on File.
Opposition
CalTax
California Chamber of Commerce
Analysis Prepared by:Christian Griffith / BUDGET / (916)
319-2099