BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 398|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 398
Author: Leyva (D), et al.
Amended: 6/2/15
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-1, 4/29/15
AYES: Wieckowski, Gaines, Hill, Jackson, Leno, Pavley
NOES: Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Green Assistance Program
SOURCE: Author
DIGEST: This bill establishes the Green Assistance Program
(GAP) through the Office of the Secretary for Environmental
Protection (Secretary) to provide technical assistance to small
businesses, small nonprofits, and disadvantaged communities in
applying for moneys from the Greenhouse Gas Reduction Fund
(GGRF) and directs the Secretary to conduct outreach activities
to inform applicants of GAP.
ANALYSIS:
Existing law:
1) Requires, under the California Global Warming Solutions Act
of 2006, the California Air Resources Board (ARB) to
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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 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 GGRF; and requires the Department of Finance, in
consultation with the ARB 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) Requires, under the GGRF Investment Plan and Communities
Revitalization Act, 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.
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 GAP to be administered by the Secretary in
concert with environmental justice programs.
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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
moneys. 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.
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.
Background
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.
Disadvantaged communities. Using CalEnviroScreen, a tool
developed by the Office of Environmental Health Hazard
Assessment, 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
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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
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
leaves our most vulnerable communities at a financial
disadvantage.
"SB 398 helps to connect disadvantaged communities, small
businesses, and small nonprofits 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."
The need for assistance and outreach. Each of the programs
administering GGRF moneys have separate guidelines and grant
proposal request documents on their respective Web sites.
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 GAP may very well help them
successfully apply for and utilize GGRF moneys, as intended by
SB 535 and this bill.
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Related Legislation
AB 156 (Perea, 2015) requires the GGRF Investment Plan to
allocate funds to ARB to establish a technical assistance
program to assist disadvantaged and low-income communities. AB
156 is on the Assembly Floor and due to be heard this week.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
Cost pressures in the hundreds of thousands to low millions of
dollars from the General Fund or possibly the GGRF to the
CalEPA for technical assistance and outreach.
SUPPORT: (Verified6/1/15)
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
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OPPOSITION: (Verified6/1/15)
None received
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."
Prepared by:Laurie Harris / E.Q. / (916) 651-4108
6/2/15 21:20:07
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