BILL ANALYSIS Ó
AB 2293
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2293 (Cristina Garcia) - As Amended April 27, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the Green Assistance Program in CalEPA,
and moves the Green Business Program from the Department of
Toxic Substance Control (DTSC) to CalEPA and expands its
provisions. This bill annually appropriates unspecified amounts
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of funds, without regard to fiscal year, to both programs from
the AB 32 Greenhouse Gas Reduction Fund (GGRF) or from funds
available to the Affordable Housing and Sustainable Communities
Program (GGRF). Specifically, this bill:
1)Creates the Green Assistance Program (GAP) to assist small
businesses and nonprofits including the development of grant
proposals to apply for Greenhouse Gas Revenue Funds (GGRF),
complying with existing law, identifying state agency grant
programs, and coordinating with existing local GHG reduction
programs.
2)Eliminates the Green Business Program (GBP) at DTSC and
recasts and expands the program at CalEPA. GBP is required to
assist local governments in establishing green business
certification programs, seeking and providing funding,
coordinating with other programs, and collaborating with the
GAP. Unlike the GBP program at DTSC, this program does not
require compliance with applicable federal, state and local
environmental laws as a condition of receiving certification.
FISCAL EFFECT:
1)Unspecified annual appropriations (that do not require
appropriation by the Legislature) likely in the hundred
million dollar range, from GGRF or the Affordable Housing and
Sustainable Communities Program funds (continuously
appropriated GGRF).
2)Assuming CalEPA tasks the California Air Resources Board (ARB)
with implementing the GAP, ARB estimates it would require 6
new positions and $873,000 to administer with an additional $8
to $10 million in contracts (GGRF and Cost of Implementation
Account).
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3)Unknown costs to implement GBP, likely similar to those
identified for the GAP program (GGRF and other special funds.)
It is unclear if CalEPA would administer this program or
task it to a constituent department or agency.
COMMENTS:
1)Purpose. According to the author, as cap and trade proceeds
are make their way into our communities, it has become
apparent there are barriers that prevent the funding from
getting into many of places it is needed.
This bill creates a Green Assistance Program to assist
nonprofits and small businesses in accessing cap and trade
funding. The already established Green Business Program is
modified to green our small businesses and collaborate with
the Green Assistance Program to provide technical assistance
to small non-profits, which often lack capacity to effectively
compete for grants.
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.
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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.
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 (DACs), and that 25% of
available revenues fund projects that benefit those
communities.
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
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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)GBP unfunded since 2012. In 2012, the GBP was defunded in a
budget trailer bill that also made many of DTSC's mandates in
the Pollution Prevention Program (where the GBP was housed)
permissive.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081