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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