BILL ANALYSIS Ó AB 2781 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2781 (Eduardo Garcia) - As Amended April 7, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill directs 10% of all penalties collected by California Environmental Protection Agency (CalEPA) boards, departments, and offices to fund environmental projects in disadvantaged communities. Specifically, this bill: 1)Requires 10% of all enforcement action monetary penalties collected by a CalEPA board, department, or office to be deposited into the Supplemental Environmental Projects in Disadvantaged Communities Fund (Fund). AB 2781 Page 2 2)Specifies the Fund is available, upon appropriation, to implement environmental projects in disadvantaged communities. Prioritizes funding for projects on the list compiled by CalEPA. FISCAL EFFECT: This bill redirects revenue from monetary penalties to the newly created fund, likely in the $3 to $5 million dollar range (special fund). Additionally, CalEPA would require an additional $175,000 for administrative costs. COMMENTS: 1)Purpose. According to the author, without requiring a mandatory fund, disadvantaged communities will continue to be overlooked and will not benefit from much needed environmental mitigation. By securing resources that benefit disadvantaged communities, the state can help decrease many of the environmental stressors affecting these communities. 2)Background. AB 1071 (Atkins), Chapter 585, Statutes of 2015, requires each board, department, and office within CalEPA to establish a policy on supplemental environmental projects (SEPs) to benefit environmental justice communities. SEPs are environmentally beneficial projects that a violator agrees to undertake as part of a settlement for an enforcement action, but which the violator is not otherwise legally required to perform. In 2003, CalEPA released guidelines for the use of SEPs for its boards, departments, and offices. The guidelines specify that an SEP must improve, protect, or reduce risks to public AB 2781 Page 3 health and the environment at large. The enforcing agency must have the opportunity to help shape the scope of the project before it is implemented and the project must not be commenced until the enforcing agency has identified a violation. Finally, the SEP must not be required by a federal, state, or local law or regulation. CalEPA's SEP guidelines suggest limiting the SEP to 25% of the total enforcement action, but up to 50% of an enforcement action may be allocated for SEPs. AB 1071 also requires CalEPA to compile a list of SEPs and post the list on its website. CalEPA is in the process of implementing AB 1071. According to CalEPA, the draft SEP policy will be available for public review this month; boards, departments, and offices will begin soliciting SEP proposals from the public in late summer, and CalEPA will post the compiled SEP list to the website by December. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081