BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 398  


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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 398  
          (Leyva) - As Amended June 2, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill establishes the Green Assistance Program (GAP) to be  
          administered by the Secretary for Environmental Protection (Cal  
          EPA Secretary) in concert with environmental justice programs.   
          Specifically, this bill:








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          1)Requires GAP to provide technical assistance to small  
            businesses, small nonprofits and disadvantaged communities  
            applying for funding from the Greenhouse Gas Reduction Fund  
            (GGRF).  The technical assistance may include:

             a)   Basic information on available programs, eligibility  
               requirements, and deadlines.

             b)   Referrals to designated contact people in agencies  
               administering the programs. 



          2)Requires the Cal EPA Secretary to conduct outreach activities  
            to inform eligible entities about GAP.  Authorizes the Cal EPA  
            Secretary to coordinate outreach activities with other state  
            agencies, local agencies, and nonprofits.

          3)Requires GAP to use existing resources appropriated by the  
            Legislature to Cal EPA in the annual budget act.



          FISCAL EFFECT:


          Cost pressures in the hundreds of thousands to low millions of  
          dollars from an unspecified source (GF, GGRF or other special  
          fund).


          There are currently 14 state agencies that administer GGRF  
          funds, approximately 40 sub-programs and hundreds of different  
          project types.  This bill requires Cal EPA to conduct outreach  
          and directly work with over 2,000 disadvantaged communities  
          identified by census track, as well as potentially thousands of  
          small businesses and small nonprofit agencies.








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          Although this bill requires the Cal EPA Secretary to use  
          existing resources to establish the program, it will likely  
          create substantial new workload.  It is unlikely that Cal EPA  
          will be able to absorb the costs and meet the requirements of  
          the bill.


          





          COMMENTS:


          1)Purpose.  According to the author, currently there is no  
            single place to assist small communities and businesses in  
            accessing funds for mitigating the impacts of poor air  
            quality.  


            This bill creates a program to provide technical assistance to  
            such entities applying for funding from AB 32 Cap and Trade  
            revenues (GGRF).


          2)Background.  The California Global Warming Solutions Act of  
            2006 (AB 32) requires ARB to adopt a statewide GHG emissions  
            limit equivalent to 1990 levels by 2020 and adopt regulations,  
            including market-based compliance mechanisms, to achieve  
            maximum technologically feasible and cost-effective GHG  
            emission reductions.  

            As part of the implementation of AB 32 market-based compliance  
            measures, ARB adopted a cap-and-trade program that caps the  
            allowable statewide emissions and provides for the auctioning  








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            of emission credits, the proceeds of which are quarterly  
            deposited into the GGRF and available for appropriation by the  
            Legislature.  



            The 2014-15 Budget Act allocated cap-and-trade revenues for  
            the 2014-15 fiscal year and established a long-term plan for  
            the allocation of cap-and-trade revenues beginning in fiscal  
            year 2015-16.  


            The Budget continuously appropriates 35% of cap-and-trade  
            funds for investments in transit, affordable housing, and  
            sustainable communities.  Twenty-five percent of the revenues  
            are continuously appropriated to continue the construction of  
            high-speed rail.  The remaining 40% will be appropriated  
            annually by the Legislature for investments in programs that  
            include low-carbon transportation, energy efficiency and  
            renewable energy, and natural resources and waste diversion.  


            The 2015-16 40% annual allocation expenditure plan has not yet  
            been adopted by the Legislature.


          3)Disadvantaged Communities.  SB 535 (De León), Chapter 830,  
            Statutes of 2012, requires no less than 10% of cap-and-trade  
            revenues fund projects located within disadvantaged  
            communities, and that 25% of available revenues fund projects  
            that benefit those communities. 

            In October 2014, CalEPA released its list of disadvantaged  
            communities for the purpose of SB 535.  CalEPA relied on  
            CalEnviroScreen, to identify the areas disproportionately  
            burdened by and vulnerable to multiple sources of pollution.   
            CalEnviroScreen is a tool that assesses all census tracts in  
            California to identify the areas disproportionally affected  
            and vulnerable to multiple sources of pollution.








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            Areas (census tracts) identified as disadvantaged for SB 535's  
            purposes by CalEnviroScreen include the majority of the San  
            Joaquin Valley; much of Los Angeles and the Inland Empire;  
            pockets of other communities near ports, freeways, and major  
            industrial facilities such as refineries and power plants; and  
            large swaths of the Coachella Valley, Imperial Valley and  
            Mojave Desert.







          4)Environmental Justice.  The principles of environmental  
            justice call for fairness, regardless of race, color, national  
            origin or income, in the development of laws and regulations  
            that affect every community's natural surroundings, and the  
            places people live, work, play and learn.

            Cal EPA administers an Environmental Justice Small Grant  
            program and awarded more than $500,000 in grants to 28  
            organizations to improve environmental and health conditions  
            and promote public engagement in California communities  
            disproportionately burdened by pollution. This bill requires  
            GAP to coordinate with this and any other state environmental  
            justice programs.




          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081












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