BILL ANALYSIS Ó
AB 2146
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2146 (Patterson) - As Amended April 11, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill allocates up to $200 million of AB 32 cap-and-trade
revenues (Greenhouse Gas Reduction Fund) to CalFire, upon
appropriation, for activities to reduce greenhouse gas emissions
(GHG) caused by uncontrolled forest fires. Additionally, this
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bill:
1)Requires CalFire to develop an accounting system to
demonstrate the long-term GHG reductions of each project.
2)Requires funding recipients to use uneven aged forest
management practices for all future timber operations.
3)Allows and encourages CAL FIRE to provide:
a) Payments to local governmental entities for fire
prevention activities.
b) Incentives for private actions to reduce the risk or
intensity of wildfires or improve the resiliency of lands
prone to wildfires.
c) Funding for state and federal partnerships.
4)Requires CalFire to prioritize and fund projects based on
specified co-benefits and in accordance with AB 32 investment
plans.
FISCAL EFFECT:
1)Cost pressures to appropriate up to $200 million to CalFire to
fund forest activities to reduce GHG (Greenhouse Gas Reduction
Funds).
2)To administer a $200 million program, CalFire estimates
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initial administrative costs of $250,000 in contracts and
approximately $11.2 million to hire 49 positions. Calfire
estimates ongoing annual costs of $9.1 million (Greenhouse Gas
Reduction Fund).
3)Increased ongoing annual costs to ARB of approximately
$670,000 to revise guidelines, develop quantification methods,
evaluate projects and coordinate with CalFire (Greenhouse Gas
Reduction Fund).
This fiscal estimate assumes any funding appropriated by the
Legislature is in addition to the Greenhouse Gas Reduction Funds
requested in the Governor's Budget. CalFire is requesting the
continuation of an additional 12 positions as part of the $140
million request to fund the Healthy Forests program.
COMMENTS:
1)Purpose. California's forests are not only susceptible to the
effect of climate change but are also contributing to GHG
emissions. According to ARB's Short-Lived Climate Pollutant
Strategy, wildfires are now the single largest source of black
carbon emissions in California, representing 66% of black
carbon emissions in 2013. Black carbon or soot is a major
contributor to climate change. Dead, decaying, and dying
trees have been shown to emit GHGs reducing the carbon storage
capacity of the wood.
This bill will provide funding for vegetation management,
forest overgrowth reduction, and measures to ensure that
future fires are more consistent with the historic
regenerative fire regime.
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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
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
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programs. The remaining 2015-16 revenues, along with 2016-17
revenues totaling $3.1 billion, are available for
appropriation this year.
3)Healthy Forests. The Governor's 2016-17 budget includes a
proposal to spend $30 million for urban and community
forestry, $10 million for the Forest Legacy Program, and $140
million from the GGRF for a comprehensive forest health
program to further secure forest carbon and reduce greenhouse
gas emissions. These forest health programs will focus on
landscape-scale projects in high risk fire areas.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081