BILL ANALYSIS Ó
AB 2722
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(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
2722 (Burke, et al.)
As Amended August 31, 2016
Majority vote
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|ASSEMBLY: |51-26 |(June 2, 2016) |SENATE: | |(August 31, |
| | | | |25-12 |2016) |
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Original Committee Reference: NAT. RES.
SUMMARY: Establishes the Transformative Climate Communities
Program (Program) in the Strategic Growth Council (SGC) to fund
the development and implementation of neighborhood-level
transformative climate community plans (plans).
The Senate amendments:
1)Limit eligibility for the Program to disadvantaged
communities.
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2)Require SGC to award competitive grants to eligible entities
through an application process, and define eligible entities as
nonprofit organizations, community-based organizations,
faith-based organizations, coalitions or associations of
nonprofit organizations, community development finance
institutions, community development corporations, local
agencies, joint powers authorities, or tribal governments that
demonstrate multistakeholder partnerships.
3)Remove direction to SGC to prioritize certain projects and
require SGC to prioritize funding for disadvantaged
communities.
4)Require the California Environmental Protection Agency (CalEPA)
to provide assistance with outreach to eligible communities.
5)Require that projects maximize climate, public health,
environmental, workforce, and economic benefits.
6)Require SGC to consider whether eligible plans and projects
avoid economic displacement of low-income disadvantaged
community residents and businesses when developing the
guidelines.
7)Make related technical and clarifying changes.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill has the following costs:
1)Unknown ongoing costs, between the high hundreds of thousands
to low millions (Greenhouse Gas Reduction Fund (GGRF)) for the
SGC to develop, administer, and oversee the financial
assistance programs.
2)Approximately $715,000 annually in years one and two for Air
Resources Board (ARB), and approximately $550,000 ongoing
(GGRF).
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3)Unknown, potentially significant, costs (GGRF) to CalEPA for
consultation.
COMMENTS: The Global Warming Solutions Act (AB 32 (Núñez),
Chapter 488, Statutes of 2006) requires ARB to adopt a statewide
greenhouse gas (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 deposited into the
GGRF to be available for appropriation by the Legislature.
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% is 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.
According to the author, this bill is intended to establish a
new program to ensure that California is making "comprehensive,
cross-cutting, and transformative climate investments that
achieve multiple GHG, public health, and economic benefits in
our state's most vulnerable communities" to help cities, local
jurisdictions, and communities accelerate sustainability plans
and help California meet its ambitious climate change goals.
Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
AB 2722
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FN: 0005032