BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            SB 398
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          |Author:    |Leyva                                                |
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          |Version:   |4/14/2015              |Hearing      |4/29/2015       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Laurie Harris                                        |
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          SUBJECT:  Green Assistance Program


            ANALYSIS:
          
          Existing law:  
          
          1. Under the California Global Warming Solutions Act of 2006  
             (referred to as AB 32) requires the California Air Resources  
             Board (ARB) to determine the 1990 statewide greenhouse gas  
             (GHG) emissions level, to approve a statewide GHG emissions  
             limit equivalent to that level that will be achieved by 2020,  
             and to adopt GHG emissions reductions measures by regulation.  
              ARB is authorized to include the use of market-based  
             mechanisms to comply with the regulations.  (Health and  
             Safety Code §38500 et seq.)

          2. Establishes the Greenhouse Gas Reduction Fund (GGRF) as a  
             special fund in the State Treasury; requires that all moneys,  
             except for fines and penalties, collected pursuant to a  
             market-based mechanism be deposited in the fund; and requires  
             the Department of Finance, in consultation with the state  
             board and any other relevant state agency, to develop, as  
             specified, a three-year investment plan for the moneys  
             deposited in the GGRF.  (Government Code §16428.8)

          3. Under the GGRF Investment Plan and Communities Revitalization  
             Act, requires GGRF moneys be used to facilitate the  
             achievement of reductions of GHG emissions in the state  
             consistent with the Global Warming Solutions Act of 2006.   







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             Appropriations of the GGRF funds in the annual budget are  
             required to be consistent with the three-year investment  
             plan.  (HSC §39712)

          4. Requires the GGRF investment plan to allocate a minimum of  
             25% of the funds to projects that benefit disadvantaged  
             communities and to allocate 10% of the funds to projects  
             located within disadvantaged communities.  (HSC §39713)

          5. Requires the ARB, in consultation with the California  
             Environmental Protection Agency (CalEPA), to develop funding  
             guidelines for administering agencies receiving allocations  
             of GGRF funds that include a component for how agencies  
             should maximize benefits to disadvantaged communities.  (HSC  
             §39715)

          This bill:  

          1. Establishes the Green Assistance Program (GAP) to be  
             administered by the Secretary for Environmental Protection  
             (Secretary) in concert with environmental justice programs.

          2. Tasks the GAP with providing technical assistance to small  
             businesses and small nonprofits, both as defined by the  
             secretary, and disadvantaged communities applying for GGRF  
             monies.  The technical assistance may include, but is not  
             limited to:

             A.    Basic information on available programs, eligibility  
                requirements, and deadlines;

             B.    Referrals to designated contact people in agencies  
                administering the programs; and

             C.    Assistance during the application preparation and  
                submission process.

          3. Requires the Secretary, who may coordinate with other state  
             agencies, local agencies, and nonprofits, to conduct outreach  
             activities to inform eligible entities about the GAP.

          4. Requires that the program use existing resources appropriated  
             by the Legislature to the Office of the Secretary in the  
             annual Budget Act.








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            Background
          
          1. Cap-and-Trade Expenditure Plan in the Annual Budget &  
             Administering Agencies.

             For the 2014-15 budget year, the Budget provides $832 million  
             of cap-and-trade proceeds to reduce GHG emissions and meet SB  
             535 (de León), Chapter 830, Statutes of 2012, goals.  Of the  
             Budget, 60% is permanently allocated to high-speed rail,  
             public transit, affordable housing, and sustainable  
             communities, administered by four departments.  Seven  
             additional departments receive appropriations to administer  
             programs for low carbon transportation, energy efficiency  
             upgrades and energy efficiency for public buildings,  
             agricultural and operational efficiency, wetlands and  
             watershed restoration, fire prevention and urban forestry  
             projects, and waste diversion.

          2. Disadvantaged Communities.

             Using CalEnviroScreen, a tool developed by the Office of  
             Environmental Health Hazard Assessment (OEHHA), and through  
             the direction of SB 535, CalEPA determined a list of  
             disadvantaged communities throughout California in October  
             2014.  For the identified communities, at least 25% of GGRF  
             moneys are required to be used for projects that benefit them  
             and 10% for projects located within them.  The areas within  
             which the majority of disadvantaged communities were  
             identified included the San Joaquin Valley, parts of Los  
             Angeles and the Inland Empire, and large portions of the  
             Coachella Valley and Mojave Desert, in addition to  
             communities located near industrial areas and major roadways.
            
          Comments
          
          1. Purpose of Bill. 

             According to the author, "Many of our state's most polluted  
             areas are small disadvantaged communities - areas with higher  
             rates of poverty and higher incidences of asthma and cancer.   
             These smaller communities often do not have the technical  
             expertise or marketing capabilities to develop and pursue  
             grant and financing options.  This situation oftentimes  








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             leaves our most vulnerable communities at a financial  
             disadvantage.

             "SB 398 helps to connect disadvantaged communities, small  
             businesses, and small non profits with programs at various  
             state agencies that provide GGRF monies.  This will certainly  
             help lower the cost of doing business and lessen the burden  
             on taxpayers as these communities and organizations access  
             state funds.  SB 398 helps to level the playing field so that  
             these disadvantaged and small entities have a fair shot and  
             equal opportunity to meet air quality goals.  The Green  
             Assistance Program (GAP) addresses a very real gap between  
             the resources currently available to these entities and their  
             ability to access them."

          2. The Need for Assistance and Outreach.

             Each of the programs administering GGRF monies have separate  
             guidelines and grant proposal request documents on their  
             respective websites.  Eligibility criteria and application  
             processes vary, as do recommendations about working with the  
             administering agency to develop proposals or applications.   
             For those small organizations and disadvantaged communities  
             lacking experience in this area, assistance through the Green  
             Assistance Program may very well help them successfully apply  
             for and utilize GGRF moneys, as intended by SB 535 and this  
             bill.  

            Related/Prior Legislation

          AB 156 (Perea) would require the GGRF Investment Plan to  
          allocate technical assistance funds to the California Air  
          Resources Board (ARB) to establish a technical assistance  
          program for eligible applicants assisting disadvantaged  
          communities and other communities as specified.  AB 156 is  
          currently referred to the Assembly Committee on Appropriations.

          AB 1179 (Rendon) would require ARB to prepare and post on its  
          website a report on the funded projects that provide benefits  
          to, or are located within, disadvantaged communities.  AB 1179  
          is currently referred to the Assembly Committee on  
          Appropriations with recommendation to the consent calendar.
           
          SOURCE:                    Author  








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           SUPPORT:               
          American Lung Association in California
          Asian Pacific Environmental Network
          Breathe California
          California League of Conservation Voters
          Climate Resolve
          Coalition for Clean Air
          Environmental Defense Fund
          Leadership Council for Justice and Accountability
          Lutheran Office of Public Policy, California
          Move LA
          National Resources Defense Council
          Physicians for Social Responsibility
          ReLeaf
          Sierra Club California
          Strategic Concepts in Organizing and Policy Education
          Trust for Public Lands
          Union of Concerned Scientists
          Valley Clean Air Now
           
           OPPOSITION:    None on file  

           ARGUMENTS IN  
          SUPPORT:    The coalition of support states, "While AB 32 and SB  
          535 create momentous opportunities to address climate change and  
          poverty in disadvantaged communities, these same communities too  
          often lack the necessary resources and technical capacity to  
          participate in shaping investment proposals that will be  
          competitive for available funding. 

          "Establishing a technical assistance program that assists  
          disadvantaged communities in developing project proposals that  
          meet the goals and requirements of AB 32 and SB 535 is an  
          important and necessary step towards the equitable distribution  
          of GGRF funding."

                                          
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