BILL ANALYSIS Ó
AB 2702
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2702 (Atkins) - As Amended March 18, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Air Resources Board (ARB) to
conduct a study outlining best policies and practices for
meeting state greenhouse gas reduction (GGR) goals by July 1,
2018. This bill allows ARB to collaborate with local air
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pollution control and air quality management districts in
conducting the study.
FISCAL EFFECT:
Increased annual costs of approximately $150,000 (Cost of
Implementation Account) over a two-year period.
ARB is currently developing the AB 32 Scoping Plan Update,
expected to be released in 2017. Some of the requirements of
this bill may be included in this effort. To the extent the
author intends for a study developed pursuant to the bill to
offer best practices for local governments to assist them with
reducing GHG emissions, ARB would require additional resources.
COMMENTS:
1)Purpose. The Global Climate Leadership Memorandum of
Understanding (Under 2 MOU) is a non-binding agreement
initiated by Governor Brown and 11 other subnational
signatories in May 2015. The Under 2 MOU commits the
signatories to pursue either reducing the emissions of GHGs to
80% to 95% below 1990 levels by 2050, or achieving a per
capita annual emissions target of less than 2 metric tons of
carbon dioxide equivalent by 2050 to achieve the goal of
limiting global warming to less than two degrees Celsius.
The Under 2 MOU has since been signed by over 100 additional
subnational jurisdictions.
According to the author, this bill will create a clearinghouse
of best practices to assist local governments and other
entities in implementing the Under 2 MOU by identifying those
programs, policies, and actions that provide effective GHG
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emission reduction strategies.
2)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
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 Greenhouse Gas Reduction Fund (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
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revenues totaling $3.1 billion, are available for
appropriation this year.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081