BILL ANALYSIS Ó
AB 1815
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1815 (Alejo) - As Amended May 2, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the AB 32 investment plan to allocate
technical assistance funds to the California Environmental
Protection Agency (CalEPA) to assist disadvantaged and
low-income communities in developing project funding proposals.
Specifically, this bill:
1)Requires CalEPA, upon appropriation of Greenhouse Gas
Reduction Funds (GGRF), to establish a comprehensive technical
assistance program for applicants located in disadvantaged
communities or communities with median incomes at or below 60%
the statewide median or designated as very low income by the
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Department of Housing and Community Development (HCD), as
specified.
2)Specifies that eligible applicants include regional agencies
and nonprofit organizations coordinating with local
governments.
3)Requires CalEPA to prioritize technical assistance for those
communities based on specified criteria.
4)Requires technical assistance to promote programs that reduce
GHG emissions and demonstrate a direct, meaningful benefit to
the eligible communities.
FISCAL EFFECT:
1)Unknown cost pressures, likely in the $100 million range
(GGRF) to establish a comprehensive technical assistance
program.
2)Increased annual costs of over $5.7 million for 37 positions
and $200,000 in contracts if CalEPA designates the California
Air Resources Board (ARB) as the implementing agency (GGRF and
Cost of Implementation Fund).
3)Increased costs of approximately $900,000 for 6 positions and
between $8 and $10 million for contracts if CalEPA implements
the bill through contracts or partnerships with local
administrators (GGRF and Cost of Implementation Fund).
COMMENTS:
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1)Purpose. According to the author current law allows
disadvantaged communities to apply for GHG funds, but does not
provide the technical assistance necessary to complete a
competitive application. This bill a comprehensive technical
assistance program for communities identified as disadvantaged
by CalEnviro Screen and well as other low-income households
and communities.
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 adopt 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 allocated cap-and-trade revenues for
the 2014-15 fiscal year and established 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
high-speed rail. The remaining 40% are to be appropriated
annually by the Legislature for investments in programs that
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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 to continue funding for specified existing
programs. The remaining 2015-16 revenues, along with 2016-17
revenues, totaling $3.1 billion are available for
appropriation this year.
3)Disadvantaged Communities. 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.
In October 2014, CalEPA released its list of disadvantaged
communities for the purpose of SB 535. CalEPA relied on
CalEnviroScreen to identify the areas disproportionately
burdened by and vulnerable to multiple sources of pollution.
CalEnviroScreen is a tool that assess all census tracts in
California to identify the areas disproportionally affected
and vulnerable to multiple sources of pollution.
Areas (census tracts) identified as disadvantaged for SB 535's
purposes by CalEnviroScreen 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.
4)Previous Legislation. Last year, AB 156 (Perea), required ARB
to include technical assistance funds to assist disadvantaged
and low-income communities in its AB 32 Greenhouse Gas
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Reduction Fund (GGRF) Investment Plan. This bill was held on
suspense in the Senate Appropriations Committee.
5)Related Legislation. AB 2293 (Garcia) creates the Green
Assistance Program and California Green Business program in
CalEPA to assist nonprofits and business in applying for GGRF
funds and to help certify businesses who voluntarily adopt
environmentally preferable practices. This bill will be heard
today in this Committee.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081