BILL ANALYSIS Ó
AB 2343
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2343 (Cristina Garcia) - As Amended April 27, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of Finance (DOF) to include
additional information relating to the economic impacts of
Greenhouse Gas Reduction Fund (GGRF) expenditures in its annual
report to committees of the Legislature. Specifically, this
bill requires the report to include:
1)The levels of investment funded on a geographic basis across
the state.
2)The GHG emissions reductions resulting from investments.
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3)The economic benefits associated with the investments
including, but not limited to, the jobs created and salaries
and wages associated with those jobs.
This reporting requirement applies once sufficient data is
collected from the first two auctions conducted in the 2017
calendar year.
FISCAL EFFECT:
1)Unknown increased costs for GGRF implementing agencies,
potentially in the hundreds of thousands of dollars, to track
information and integrate the data in reports (GGRF). There
are approximately 47 state agencies receiving GGRF.
2)Increased annual costs of $245,000 ($100,000 in contracts)
(GGRF) for ARB, as the GGRF administrator, to revise
guidelines, create reporting templates, include data and
outcomes in existing reports, and consult with other agencies.
3)Absorbable costs to DOF.
COMMENTS:
1)Purpose. According to the author, this bill will provide
additional information to enable legislators to easily compare
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levels of investment across the state as well as the economic
benefits associated with those investments.
2)Reporting Requirements. ARB and DOF are required to submit
various reports to the Legislature relating to the states's
cap-and-trade program and GGRF expenditures. The primary
report is ARB's Scoping Plan, which lays out ARB's plan to
reduce GHG emissions to 1990 levels by 2020. The Scoping Plan
was first adopted in 2008 and must be updated every five
years. ARB is also tasked with developing a short-lived
climate pollution reduction strategy. ARB also prepares an
annual report of climate investments using cap-and-trade
funds.
DOF is required to develop a three-year investment plan for
cap-and-trade funding. DOF is required to annually report to
the Legislature on the status of projects funded by the GGRF
and their outcomes.
3)The California Global Warming Solutions Act of 2006 (AB 32).
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.
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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.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081