BILL ANALYSIS Ó
AB 2653
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Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 2653
(Eduardo Garcia) - As Introduced February 19, 2016
SUBJECT: Greenhouse Gas Reduction Fund: report
SUMMARY: Requires each state agency that expends moneys from
the Greenhouse Gas Reduction Fund (GGRF) to include specified
economic information in their annual reports to the California
Environmental Protection (CalEPA) relating to greenhouse gas
(GHG) emissions reductions.
EXISTING LAW:
1)Requires the Air Resources Board (ARB), pursuant to California
Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter
488, Statutes of 2006], to adopt a statewide GHG emissions
limit equivalent to 1990 levels by 2020 and adopt regulations
to achieve maximum technologically feasible and cost-effective
GHG emission reductions. AB 32 authorizes ARB to permit the
use of market-based compliance mechanisms to comply with GHG
reduction regulations, once specified conditions are met.
2)Establishes the GGRF and requires all moneys, except for fines
and penalties, collected by ARB from the auction or sale of
allowances pursuant to a market-based compliance mechanism
(i.e., the cap-and-trade program adopted by ARB under AB 32)
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to be deposited in the GGRF and available for appropriation by
the Legislature.
3)Establishes the GGRF Investment Plan and Communities
Revitalization Act (Act) to set procedures for the investment
of GHG allowance auction revenues. Authorizes a range of GHG
reduction investments and establishes several policy
objectives:
a) Maximize economic, environmental, and public health
benefits;
b) Foster job creation;
c) Complement efforts to improve air quality;
d) Direct investment toward the most disadvantaged
communities and households in the state;
e) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate
in and benefit from statewide efforts to reduce GHG
emissions; and,
f) Lessen the impacts and effects of climate change on the
state's communities, economy, and environment.
4)Specifies that moneys appropriated from the GGRF through
investments that may include funding to reduce GHG emissions
through:
a) Energy efficiency, clean and renewable energy
generation, distributed renewable energy generation,
transmission and storage, and other related actions;
b) The development of state-of-the-art systems to move
goods and freight, advanced technology vehicles and vehicle
infrastructure, advanced biofuels, and low-carbon and
efficient public transportation;
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c) Strategic planning and development of sustainable
infrastructure projects;
d) Investments in programs implemented by local and
regional agencies, local and regional collaboratives, and
nonprofit organizations coordinating with local
governments; and,
e) Funding research, development, and deployment of
innovative technologies, measures, and practices related to
programs and projects funded pursuant to the Act.
5)Requires the investment plan to allocate (1) a minimum of 25%
of the available moneys in the GGRF to projects that provide
benefits to identified disadvantaged communities, and (2) a
minimum of 10% of the available moneys in the GGRF to projects
located within identified disadvantaged communities.
6)Requires each state agency to annually prepare and submit to
the Secretary of the California Environmental Protection
Agency (CalEPA) a report that includes:
a) A list of those measures that have been adopted and
implemented by the state agency to meet GHG emission
reduction targets and a status report of the actual GHG
emissions reduced as a result of the measures;
b) A list a timetable for adoption of any additional
measures needed to meet GHG emissions reduction targets;
c) An estimate of the department's own GHG emissions and an
explanation of any increase or decrease compared to the
previous year's emissions.
7)Requires CalEPA, on or before January 1 of each year, to
compile and organize the information submitted by state
agencies into a clear, standardized format and provide the
information on its website as a "state agency GHG emission
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reduction report card" (report card).
THIS BILL:
1)Requires that each state agency that receives allocations from
the GGRF to include in their report to CalEPA for purposes of
the report card to include the following:
a) The number of business entities receiving financial
assistance or entering into contracts paid using GGRF;
b) The amount of other public or private moneys leveraged
when business entities received the GGRF assistance;
c) The location, industry sector, gross revenue, and number
of employees of the business entities;
d) The number of jobs created, including wage levels and
education and training requirements set, by the business
entities; and,
e) Actions taken to connect residents of disadvantaged
communities and other target populations with the
businesses, employment, and training opportunities offered
through the activities funded by the GGRF.
FISCAL EFFECT: Unknown
COMMENTS:
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1)Existing GGRF funding and programs. The 2014-15 Budget Act
allocated GGRF revenues for the 2014-15 fiscal year and
established a long-term plan for the allocation of GGRF
revenues beginning in fiscal year 2015-16. Thirty-five
percent of GGRF is continuously appropriated for investments
in transit, affordable housing, and sustainable communities.
Twenty-five percent is continuously appropriated to continue
the construction of the high-speed rail project. The
remaining 40% is subject to annual appropriation 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 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, are
available for appropriation this year.
The 2016 Annual Report of Cap and Trade Auction Proceeds
includes an analysis of funds spent within and benefiting
disadvantaged communities, excluding high speed rail spending.
According to the report, 39% of expenditures were for
projects located within disadvantaged communities and 51% of
the overall funding benefited disadvantaged communities.
Listed below are the major GGRF program areas, administering
agency, and funding to date:
a) Transportation and Sustainable Communities
i) High Speed Rail, High Speed Rail Authority
(Authority), $850 million
ii) Transit and Intercity Rail Capital Program,
Transportation Agency, $265 million
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iii) Low Carbon Transit Operations Program, Department of
Transportation (Caltrans), $145 million
iv) Affordable Housing and Sustainable Communities
Program, Strategic Growth Council (SGC), $610 million
v) Low Carbon Transportation, ARB, $325 million
b) Clean Energy and Energy Efficiency
i) Low-Income Weatherization Program, Community
Services and Development (CSD), $154 million
ii) Energy Efficiency in Public Buildings, California
Energy Commission (CEC), $20 million
iii) Climate Smart Agriculture, Department of Food and
Agriculture (CDFA), $75 million
iv) Water-Energy Efficiency, Department of Water
Resources (DWR), $70 million
c) Natural Resources and Waste Diversion
i) Wetlands and Watershed Restoration, Department of
Fish and Wildlife (DFW), $27 million
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ii) Urban Forestry, Forest Health Restoration, and
Reforestation, Department of Forestry and Fire Protection
(CAL FIRE), $42 million
iii) Waste Diversion, Department of Resources Recycling
and Recovery (CalRecycle), $31 million
The Governor's 2016-17 Budget proposes just under $3.1 billion
in expenditures:
a) Continuous Appropriations
i) High Speed Rail, Authority, $500 million
ii) Low Carbon Transit Operations, State Transit
Assistance, $100 million
iii) Transit and Intercity Rail Capital Program,
Transportation Agency, $200 million
iv) Affordable Housing and Sustainable Communities
Program, SGC, $400 million
b) Fifty Percent Reduction in Petroleum Use
i) Transit and Intercity Rail Capital Program,
Transportation Agency, $400 million
ii) Low Carbon Road Program, Caltrans, $100 million
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iii) Low Carbon Transportation and Fuels, ARB, $500
million
iv) Biofuel Facility Investments, CEC, $25 million
c) Local Climate Action
i) Transformative Climate Communities, SGC, $100
million
d) Short-Lived Climate Pollutants
i) Black Carbon Woodsmoke and Refrigerants, ARB, $60
million
ii) Waste Diversion, CalRecycle, $100 million
iii) Climate Smart Agriculture - Healthy Soils and Dairy
Digesters, CDFA, $55 million
e) Safeguarding California/Water Action Plan
i) Water and Energy Efficiency, CDFA and DWR, $30
million
ii) Drought Executive Order, CEC, $60 million
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iii) Wetlands and Watershed Restoration/CalEcoRestore,
DFW, $60 million
f) Safeguarding California/Carbon Sequestration
i) Healthy Forests and Urban Forestry, CAL FIRE, $180
million
ii) Urban Greening, Natural Resources Agency, $20
million
g) Energy Efficiency/Renewable Energy
i) Energy Efficiency for Public Buildings, Department
of General Services, $30 million
ii) California Lending for Energy and Environmental
Needs Center, I Bank, $20 million
iii) Energy Corps, Conservation Corps, $15 million
iv) Energy Efficiency Upgrades/Weatherization, CSD, $75
million
v) Renewable Energy and Energy Efficiency Projects,
University of California, California State University,
$60 million
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1)Jobs and Economic Development Efforts. There are a number of
entities throughout state government designed to increase
workforce and economic development efforts, with a particular
emphasis on emerging technology, green jobs, and the green
economy.
a) GO-Biz: GO-Biz serves as California's single point of
contact for economic development and job creation efforts.
GO-Biz markets the business and investment opportunities
available in California by working in partnership with
local, regional, federal, and other state public and
private institutions to encourage business development and
investment in the state.
The iHub Program within GO-Biz designates 'iHubs' (i.e.,
areas in the state) to stimulate partnerships, economic
development, and job creation by leveraging assets to
provide an innovation platform for startup businesses,
economic development organizations, business groups, and
venture capitalists. These assets include research parks,
technology incubators, universities, and federal
laboratories.
b) Commission for Economic Development: The commission,
consisting of the Lieutenant Governor as Chairperson, three
members appointed by each the Senate Committee on Rules and
the Assembly Speaker, and 10 members appointed by the
Governor, was established to provide bipartisan
legislative, executive branch and private sector support
and guidance for the best possible overall economic
development of the state.
c) California Workforce Investment Board: CWIB is charged
with developing a unified, strategic planning process to
coordinate various education, training, and employment
programs into an integrated workforce development system
that supports economic development. CWIB has adopted
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"sector strategies" as the statewide framework for
workforce development and works with partners, including
other state agencies, to support the emergence of effective
statewide and regionally driven sector initiatives.
d) Green Collar Jobs Council: GCJC was created to address
the workforce needs that accompany California's growing
green economy under the purview of CWIB. GCJC makes
recommendations and creates strategies for comprehensive
and effective workforce training opportunities to help
prepare California's current and future workforce to meet
the skills demand from businesses supporting the energy
efficiency and clean energy sectors. GCJC is also tasked
with developing, collecting, analyzing, and distributing
statewide and regional labor market data on California's
new and emerging green industries workforce needs, trends,
and job growth and identifying funding resources and making
recommendations on how to expand and leverage these funds.
CWIB is required to report annually to the Legislature on
the status of GCJC activities, grants awarded, and its
development and implementation of a green workforce
strategic initiative.
The GCJC issued a Proposed Jobs and Workforce Development
Program Elements for Carbon Reduction Investments in
California in January 2014, which proposed "a common
approach to workforce development and job creation for
California's multiple public investments in carbon
reduction initiatives under the umbrella of AB 32."
2)Author's statement:
As California continues in its important work to reduce GHG
emissions, state agencies have demonstrated great
creativity in developing programs that provide co-benefits
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that help businesses and communities choose more
sustainable actions. This bill ensures tracking the
co-benefit[s] and sheds light on the state's economic
transformation to a lower carbon economy.
3)Previous legislation.
SB 189 (Hueso) of 2015 would have established the Clean Energy
and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee to
advise state agencies on the most effective ways to maximize
California's economic benefits and jobs growth through actions
and investments in a low-carbon economy. This bill was held in
the Assembly Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
AB 2653
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Opposition
None on file
Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092