BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2781 (Eduardo Garcia) - Supplemental environmental projects ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 7, 2016 |Policy Vote: E.Q. 6 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 8, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2781 requires each board, department, or office (BDO) within the California Environmental Protection Agency (CalEPA) with enforcement authority to ensure that at least 10 percent of enforcement penalties are spent on supplemental environmental projects allocated to disadvantaged communities. Fiscal Impact: Redirection of at least 10 percent of penalty revenues from various special funds administered by BDOs within the CalEPA. Unknown, likely minor, costs (various special funds), for each BDO to track, report, and oversee SEPs. Background: Under existing law, penalties for violations of environmental laws can be partially offset by a commitment to undertake a SEP. Under CalEPA's recommended guidance on SEPs, released in 2003, SEPs must improve, protect, or reduce risks to public health or the environment at large. The enforcing agency is required to AB 2781 (Eduardo Garcia) Page 1 of ? help shape the scope of the project prior to approval, though the project must remain a voluntary action that the defendant is not legally required to perform. There must also be a relationship between the violation and the SEP. For example, the SEP may remediate or reduce the environmental or public health impacts of the violations. Various CalEPA BDOs have adopted their own SEP policies since the release of the CalEPA guidelines. Proposed Law: This bill: 1) Requires each BDO within the CalEPA with enforcement authority to ensure that at least 10 percent of enforcement penalties are allocated to disadvantaged communities. 2) Requires each BDO to submit to the CalEPA a list of potential projects that may be undertaken to satisfy the requirement above requirement. 3) Requires the CalEPA to compile the lists provided by the BDOs into one list and post it on its website. Related Legislation: AB 1071 (Atkins, Chapter 585, Statutes of 2015) required each board, department, and office within the CalEPA to establish a policy on supplemental environmental projects that benefits environmental justice communities. AB 2781 (Eduardo Garcia) Page 2 of ? Staff Comments: By requiring that at least 10 percent of penalty revenue is spent on SEPs in disadvantaged communities, this bill will result in decreased penalty revenues to various special funds in the millions of dollars. State Water Resources Control Board (SWRCB). The SWRCB collected between $10 million and $12 million per year for fiscal years 2012 through 2014. For that board, this bill would result in at least a $1 million redirection of funds. Impact on Air Pollution Control Fund. Currently, penalty monies from air pollution violations are deposited in the Air Pollution Control Fund and appropriated for programs that mitigate air pollution-related impacts. In 2014, the amount of penalties totaled over $17 million. This bill would result in a loss of about $1.7 million in revenue. Currently, there is pressure on the Air Pollution Control Fund. As such, this redirection could result in reduced spending on air quality measures. -- END --