BILL ANALYSIS Ó
AB 2781
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ASSEMBLY THIRD READING
AB
2781 (Eduardo Garcia)
As Amended April 7, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Natural |9-0 |Williams, Jones, | |
|Resources | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Gomez, Hadley, | |
| | |Harper, McCarty, Mark | |
| | |Stone, Wood | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |19-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Quirk, | |
| | |Santiago, Wagner, | |
| | |Weber, Wood | |
| | | | |
AB 2781
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| | | | |
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SUMMARY: Directs 10% of all penalties collected by California
Environmental Protection Agency (CalEPA) boards, departments,
and offices to fund supplemental environmental projects (SEPs)
in disadvantaged communities. Specifically, this bill:
1)Requires that 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).
2)Specifies that the Fund be available, upon appropriation, to
implement environmental projects in disadvantaged communities.
Prioritizes funding for projects on the list compiled by
CalEPA.
EXISTING LAW:
1)Requires CalEPA to:
a) Conduct its programs, policies, and activities and
enforce all health and environmental statutes within its
jurisdiction in a manner that ensures the fair treatment of
people of all races, cultures, and income levels, including
minority and low-income populations.
b) Convene a Working Group on Environmental Justice
(Working Group) comprised of the Secretary of CalEPA, the
Chairs of the Air Resources Board (ARB), the California
Integrated Waste Management Board (now CalRecycle), the
State Water Resources Control Board (SWRCB), the Director
of the Department of Toxic Substances Control (DTSC), the
Director of the Department of Pesticide Regulation (DPR),
the Director of the Office of Environmental Health Hazard
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Assessment (OEHHA), and the Director of the Office of
Planning and Research (OPR). Requires the Working Group to
examine existing data and studies on environmental justice
and recommending policies for implementation by CalEPA;
recommend criteria to the Secretary of CalEPA for
identifying and addressing any gaps in existing programs,
policies, or activities that may impede the achievement of
environmental justice; and, hold public meetings to receive
and respond to public comments prior to the finalization of
the recommendations.
c) Requires each board, department, and office within
CalEPA to review its programs, policies, and activities and
identify and address any gaps in its existing programs,
policies, or activities that may impede the achievement of
environmental justice.
2)Beginning January 1, 2016, requires each board, department,
and office within CalEPA to establish a policy on SEPs that
benefits environmental justice communities. Authorizes up to
50% of an enforcement action to be allocated for SEPs.
Requires CalEPA to compile a list of SEPs developed by its
boards, departments, and offices and post the list on its
website.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, 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: According to OEHHA, approximately 8 million
Californians (21%) live in zip codes that are considered "highly
impacted" by environmental, public health, and socioeconomic
stressors. Nearly half of all Californians live within six
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miles of a facility that is a significant greenhouse gas emitter
(46%), and they are disproportionately people of color (62%).
Throughout California, people of color face a 50% higher risk of
cancer from ambient concentrations of air pollutants listed
under the Clean Air Act. These impacts are felt by all
Californians. ARB estimates that air pollution exposure
accounts for 19,000 premature deaths, 280,000 cases of asthma,
and 1.9 million lost work days every year.
In 2000, legislation [SB 89 (Escutia), Chapter 728, Statutes of
2000] required CalEPA to convene the Environmental Justice
Working Group and develop an agency-wide environmental justice
strategy. In 2001, follow up legislation [SB 828 (Alarcon),
Chapter 765, Statutes of 2001] established a timeline for these
requirements and required CalEPA to update its report to the
Legislature every three years. In October of 2004, CalEPA
released its Environmental Justice Action Plan, but did not
complete the required updates for a decade.
SB 535 (DeLeon), Chapter 830, Statutes of 2012 requires the Cap
and Trade Proceeds Investment Plan to direct a minimum of 25% of
the available moneys in the fund to projects that provide
benefits to identified disadvantaged communities; and, a minimum
of 10% of the available moneys in the fund to projects located
within identified disadvantaged communities. SB 535 also
required CalEPA to identify disadvantaged communities (i.e.,
environmental justice communities). In order to accurately
identify environmental justice communities, OEHHA, on behalf of
CalEPA, created the California Communities Environmental Health
Screening Tool (CalEnviroScreen). CalEnviroScreen is a
screening methodology that can be used to help identify
California communities that are disproportionately burdened by
multiple sources of pollution.
In February of 2014, CalEPA issued an Environmental Justice
Program Update, which included four main areas for future
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actions: 1) increase efforts to eliminate discrimination on the
basis of race, national origin, ethnic group identification,
religion, age, sex, sexual orientation, color, genetic
information, or disability in any program or activity conducted
or funded by the state; 2) develop guidance to promote a sound
legal framework for CalEPA to advance environmental justice
goals and objectives; 3) lead an agency-wide working group
dedicated to increase compliance with environmental laws in
communities with relatively higher environmental burdens; and,
4) add additional indicators to CalEnviroScreen.
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 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.
Within CalEPA, ARB, DTSC, and SWRCB have adopted SEP policies.
ARB and DTSC's policies are consistent with CalEPA's guidelines
and allow SEPs up to 25% of the amount of the enforcement
action. SWRCB, consistent with authority granted by SB 1733
(Aanestad), Chapter 404, Statutes of 2006, allow SEPs up to 50%
of the amount of the penalty. CalEPA's 2013 Environmental
Compliance and Enforcement Report provides information on the
use of SEPs in California. The certified unified program
agencies directed just over $2.1 million to SEPs, approximately
25% of the penalties collected. According to ARB, of the $9.97
million penalties assessed for significant enforcement cases
(over $10,000), $773,600 was directed to SEPs. DPR directed
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only $8,000 of the $3.3 million in penalties collected to one
SEP. The other boards, departments, and offices did not report
any SEP funding in 2013.
Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
FN: 0003194