BILL ANALYSIS Ó
AB 2653
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2653 (Eduardo Garcia) - As Amended April 27, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires each state agency that receives AB 32
cap-and-trade revenues (Greenhouse Gas Reduction Funds) to
include the following additional elements in their existing
report to the California Environmental Protection Agency
(CalEPA):
1) The number of business entities receiving financial
assistance or entering into contracts paid using Greenhouse
Gas Reduction Funds (GGRF).
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2) The amount of other public or private moneys leveraged
when business entities received the GGRF assistance.
3) The geographic location, industry sector, and number of
employees of the business entity.
4) The number of jobs created by the business entities,
including wage levels.
5) Actions and outcomes taken to assist residents of
disadvantaged communities and other target populations, as
identified by the CalEPA Secretary, with the businesses,
employment, and training opportunities through the
activities funded by the GGRF or other funds as specified.
This bill allows the CalEPA Secretary to include this
information in its state agency GHG emission reduction report
card (report card) and applies to awards made by agencies
after February 1, 2017.
FISCAL EFFECT:
1)Unknown increased costs for all state agencies receiving GGRF,
potentially in the hundreds of thousands of dollars (GGRF).
There are approximately 47 state agency programs receiving
GGRF.
2)Unknown increased costs, potentially in the million dollar
range, for CalEPA to reconfigure its website to accommodate
the new data.
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3)Increased ongoing costs for ARB, as the GGRF administrator, of
between $145,000 and $865,000 (GGRF) depending on how the
requirement is interpreted. The upper range assumes data will
be reported for each business entity receiving GGRF; the lower
range assumes reporting on aggregate business data.
COMMENTS:
1)Purpose. According to the author, as California continues its
important work to reduce GHG emissions, state agencies have
demonstrated great creativity in developing programs that
provide co-benefits that help businesses and communities
choose more sustainable actions. This bill will ensure
co-benefits are tracked as the state transforms to a lower
carbon economy.
2)Report Card. CalEPA is required to annually 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 reduction report card"
(report card).
This bill allows CalEPA to include the newly required data in
its annual report card.
3)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.
As part of the implementation of AB 32 market-based compliance
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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.
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
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 $3.1billion, are available for appropriation
this year.
4)Disadvantaged Communities. 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.
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In October 2014, CalEPA released its list of disadvantaged
communities for the purpose of SB 535. CalEPA relied on
CalEnviroScreen to identify the areas disproportionately
burdened by and vulnerable to multiple sources of pollution.
CalEnviroScreen is a tool that assess all census tracts in
California to identify the areas disproportionally affected
and vulnerable to multiple sources of pollution.
Areas (census tracts) identified as disadvantaged for SB 535's
purposes by CalEnviroScreen include: the majority of the San
Joaquin Valley; much of Los Angeles and the Inland Empire;
pockets of other communities near ports, freeways, and major
industrial facilities such as refineries and power plants; and
large swaths of the Coachella Valley, Imperial Valley and
Mojave Desert.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081