BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2408


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2408 (Eggman) - As Amended April 20, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill directs allocations from AB 32 cap-and-trade revenues  
          (Greenhouse Gas Reduction Funds) to maximize the delivery of  
          integrated projects for households in low-income and  
          disadvantaged communities.   Specifically, this bill: 


          1)Requires state agencies administering grant programs with  
            Greenhouse Gas Reduction Funds (GGRF) to update guidelines and  
            encourage the coordination of grantees by:


             a)   The use of a single or coordinated application by  








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               grantees to determine the eligibility of a member of the  
               public for benefits provided by the regional and  
               neighborhood programs.

             b)   The use of a single mechanism by grantees to report to  
               the granting agencies on the efficacy of their programs, to  
               the extent feasible.  

          1)Requires state agencies administering GGRF grant programs to  
            authorize the use of a percentage of the grant to provide  
            technical assistance.

          2)Requires state agencies administering GGRF grant programs to  
            prioritize programs that demonstrate one or more of the  
            following characteristics:



             a)   Coordination with other programs;
             b)   The ability to leverage additional public or private  
               funding;
             c)   The potential for multiple benefits;
             d)   The potential for program replication;
             e)   The use of existing regional infrastructure and  
               institutions;
             f)   The inclusion of workforce development programs for  
               various populations as specified, in low-income or  
               disadvantaged communities.

          FISCAL EFFECT:


             1)   Unknown cost increases, potentially in the hundreds of  
               thousands of dollars, for state agencies administering GGRF  
               grant programs to revise and reprioritize their programs  
               and coordinate across state government (GGRF).  There are  
               approximately 47 state agencies with GGRF funded programs.










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             2)   Increased ongoing costs of approximately $380,000 for  
               the California Air Resources Board (ARB), as the GGRF  
               administering agency, to coordinate across programs, revise  
               guidelines, collect data, and evaluate eligibility for  
               legal consistency (GGRF)


           COMMENTS:


          1)Purpose.  This bill is intended to require state agencies to  
            develop systems that will allow grant applicants to apply for  
            multiple grants and assistance programs, from multiple state  
            agencies, with a single application.   This bill additionally  
            requires state agencies to prioritize projects based on  
            additional funding options, co-benefits, and other factors. 


          2)Background. 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.  





            SB 535 (De León), Chapter 830, Statutes of 2012, requires no  
            less than 10% of cap-and-trade revenues fund projects located  








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            within disadvantaged communities, and that 25% of available  
            revenues fund projects that benefit those communities. 





          3)Environmental Justice.  According to the Office of  
            Environmental Health Hazard Assessment (OEHHA), approximately  
            8 million Californians (21%) live in zip codes that are
            considered "highly impacted" by environmental, public health,  
          and socioeconomic stressors.
            Nearly half of all Californians live within six miles of a  
          facility that is a significant
            GHG emitter and they are disproportionately people of color.  

            In February of 2014, CalEPA issued an Environmental Justice  
            Program Update, which included four main areas for future  
            actions:  1)Increase efforts to eliminate discrimination on  
            the basis of race, national origin, ethnic group  
            identification, religion, age, sex, sexual orientation, color,  
            genetic information, or disability in any program or activity  
            conducted or funded by the state; 2)Develop guidance to  
            promote a sound legal framework for CalEPA to advance  
            environmental justice goals and objectives; 3)Lead an  
            agency-wide working group dedicated to increase compliance  
            with environmental laws in communities with relatively higher  
            environmental burdens; and, 4)Add additional indicators to  
            CalEnviroScreen to identify disadvantaged communities for the  
            purpose of GGRF expenditures.

            This bill targets a variety of vulnerable populations  
            including veterans, former foster care recipients,  
            farmworkers, and at-risk youth living in low-income or  
            disadvantaged communities.  












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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081