BILL ANALYSIS Ó AB 2408 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2408 (Eggman) - As Amended April 20, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 1 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 2408 Page 2 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. AB 2408 Page 3 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 AB 2408 Page 4 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. AB 2408 Page 5 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081