BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                    AB 2293

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          Date of Hearing:  May 18, 2016


                               Lorena Gonzalez, Chair

          2293 (Cristina Garcia) - As Amended April 27, 2016

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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          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  

          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  


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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.



          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  

            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  

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