BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: SB 760 Hearing Date: 4/14/2015
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|Author: |Mendoza |
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|Version: |4/6/2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Erin Riches |
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SUBJECT: Disadvantaged Community Enhancement Act of 2015.
DIGEST: This bill establishes a new program under the Strategic
Growth Council (SGC) to direct cap-and-trade spending to certain
projects in disadvantaged communities.
ANALYSIS:
AB 32: California Global Warming Solutions Act of 2006
AB 32 (Núñez), Chapter 488, Statutes of 2006, requires the state
Air Resources Board (ARB) to develop a plan to reduce emissions
to 1990 levels by 2020. It also requires ARB to ensure that
programs to reduce greenhouse gas (GHG) emissions are targeted,
to the extent feasible, to the most disadvantaged communities
(DACs) in the state. AB 32 authorizes ARB to deposit any fees
paid by GHG emission sources into the Greenhouse Gas Reduction
Fund (commonly known as cap-and-trade).
The 2014-15 budget agreement allocates $832 million in
cap-and-trade revenues to a variety of GHG emission reduction
programs. Beginning in 2015-16, the budget agreement
appropriates 25% for the state's high-speed rail project, 20%
for affordable housing and sustainable communities grants, 10%
to intercity capital rail projects, and 5% to low-carbon transit
projects. The remaining 40% is available for annual
appropriation by the Legislature.
SB 535 (De León), Chapter 830, Statutes of 2012, requires the
Department of Finance, when developing the three-year investment
SB 760 (Mendoza) Page 2 of ?
plan for cap-and-trade monies, to allocate 25% of these funds to
projects that provide benefits to DACs, and at least 10% to
projects located within DACs. To meet the SB 535 mandate, the
California Environmental Protection Agency is developing options
to identify DACs based on a tool called CalEnviroScreen. This
tool assesses census tracts with vulnerable populations that are
disproportionately affected by pollution. In addition, the
2014-15 budget agreement requires ARB to develop guidelines for
agencies administering cap-and-trade funds relating to
maximization of benefits for DACs, as well as GHG emissions
reduction reporting and quantification methods.
Sustainable Communities
Pursuant to SB 375 (Steinberg), Chapter 728, Statutes of 2008,
ARB sets regional targets for GHG emission reductions from
passenger vehicle use. SB 375 requires each of the state's 17
metropolitan planning organizations to prepare a sustainable
communities strategy as part of its regional transportation
plan, to help the region meet its GHG emissions reduction
target. The Sustainable Communities Planning Grants and
Incentives Program, authorized under Proposition 84 of 2006 and
administered by the SGC, assists local governments in developing
sustainable communities strategies. (Proposition 84 provides
$5.4 billion in general obligation bonds for water and parks
projects.)
SGC was created in 2008 to help make California's communities
more sustainable. In addition to the sustainable communities
program, SGC administers the Sustainable Agricultural Lands
Conservation Program. This program reduces GHG emissions by
limiting expansive, vehicle-dependent forms of development in
favor of compact, transit-oriented development. SGC's Urban
Greening Grant Program, also authorized under Proposition 84,
funds urban greening projects to reduce energy consumption,
conserve water, and improve water and air quality.
In addition, the 2014-15 budget agreement established the
Affordable Housing and Sustainable Communities Program (AHSC)
under SGC. AHSC provides grants to local agencies for projects
to reduce GHG emissions through land use, housing,
transportation, and agricultural land preservation. Eligible
projects include infill housing development, transit projects to
support ridership, and active transportation projects. As noted
above, the 2014-15 budget agreement allocates 20% of
SB 760 (Mendoza) Page 3 of ?
cap-and-trade funds to AHSC beginning in 2015-16.
This bill:
1.Requires SGC to develop and implement a Disadvantaged
Community Enhancement Program.
2.Provides that this program shall award grants to DACs for
"community enhancement improvement projects" to reduce GHG
emissions in, and provide multiple environmental benefits to,
DACs.
3.Provides that eligible projects shall include, but are not
limited to:
Land acquisitions in urban settings of blighted or
contaminated properties serving little sequestration
benefit for greenspace conversion
Urban greening projects, including urban forestry and
landscaping
Park development and land protection for passive or
active recreation
Hardscape conversions and repurposing of lands to serve
greenspace benefits
Non-motorized trail and other active transportation
projects
Heat island mitigation
Planning of a sustainable community
1.Requires SGC to award grants through a competitive process.
Requires SGC to consider all of the following factors in
prioritizing awards: poverty rate, unemployment rate,
childhood obesity rate and incidents of asthma, availability
of greenspace and venues for physical activity, lack of
non-motorized infrastructure supporting an active
transportation program, levels of air pollution, drinking
water quality, and groundwater quality (if applicable).
2.Requires SGC to also consider the environmental benefits
resulting from the project, including, but not limited to,
water quality improvement; groundwater storage, recharge, or
remediation; and storm water capture.
3.Requires SGC to prioritize eligible applicants and projects
located wholly within distressed watershed areas with
significant populations and heavy concentrations of industrial
SB 760 (Mendoza) Page 4 of ?
facilities and trade corridor activity.
4.Requires an applicant to articulate how the grant would be
used to address the factors described above; explain what
other funding sources the applicant will leverage for the
project; and demonstrate how the project would help the state
meet its AB 32 goals.
5.Provides that funds awarded under this program shall not
supplant other sources of funding designed to benefit DACs.
6.Requires ARB to determine a methodology to quantify the carbon
reduction benefits of applicant projects.
COMMENTS:
1.Purpose. The author states that for expediency's sake, the
first year of cap-and-trade funding was routed through
existing programs; however, DAC funding was "shoehorned" into
these programs without attempting to tackle the historic
underinvestment in these communities in a targeted manner.
The author states that the Governor's three-year investment
plan for cap-and-trade monies includes no specific mention of
investments in park improvements, despite the relative dearth
of park space in many DACs. This bill calls for a leveraging
of local resources and encourages a "cross-media" approach
(air, water, toxics, park space) to enable utilization of
other funding sources such as Proposition 1. (Proposition 1,
approved by voters in November 2014, authorizes $7.5 billion
in general obligation bonds for state water supply
infrastructure projects.)
2.Why a new program? This bill specifies a number of project
categories that would be eligible under the new program. It
appears that most, if not all, of these project categories are
already included in other programs. For example, this bill
would fund "planning of a sustainable community," but SGC
already administers two sustainable communities programs.
This bill would also provide funds to non-motorized trail and
other active transportation projects; the state Department of
Transportation already administers an Active Transportation
Program. This bill requires SGC to prioritize eligible
applicants and projects in distressed watershed areas with
significant populations and heavy concentrations of industrial
facilities and trade corridor activity. Last year's budget
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agreement allocates $25 million in cap-and-trade funds to the
Department of Fish and Wildlife for wetlands and watershed
restoration.
The author states that this bill seeks to establish and
implement a more targeted method to allocate cap-and-trade
revenues to California's DACs. The Watershed Conservation
Authority, sponsor of this bill, states that it will establish
a mechanism for lasting and targeted funding of greening and
urban park and open space opportunities, including alternative
transportation improvements, in DACs.
3.Effective use of cap-and-trade funds? Existing law (AB 1532,
Pérez, Chapter 807, Statutes of 2012) specifies that
cap-and-trade auction revenues must be used to facilitate the
achievement of GHG emissions reductions and outlines various
categories of eligible expenditures. Several new programs
have already been created to distribute cap-and-trade funds,
including the Low Carbon Transit Operations Program and the
Transit and Intercity Capital Rail Program under the
California State Transportation Agency; AHSC under SGC; and
the California Clean Truck, Bus, and Off-Road Vehicle and
Equipment Technology Program under ARB. Although a new
program can target funds in a new way, it can also slow down
fund allocation because existing law requires agencies to
undergo a public process in order to implement a new program.
4.Assisting DACs. This bill aims to target funds to DACs. As
noted above, existing law already requires a 25% set-aside of
cap-and-trade funds to projects that provide benefits to DACs,
and allocates a minimum of 10% of cap-and-trade funds to
projects located within DACs. Existing law has also
established a process for identifying DACs and for providing
guidance to agencies administering cap-and-trade funds to
maximize benefits for DACs. The program proposed by this bill
may be inconsistent with the SB 535 requirements and process.
5.Double referral. This bill has also been referred to the
Environmental Quality Committee.
Related Legislation:
AB 156 (Perea), pending hearing in the Assembly Natural
Resources Committee, requires ARB to establish a comprehensive
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technical assistance program, and a three-year investment plan,
to assist DAC applicants.
AB 1336 (Salas), also in the Assembly Natural Resources
Committee, requires a minimum of 40% of cap-and-trade funds to
be allocated to projects that provide benefits to DACs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
April 8, 2015.)
SUPPORT:
Watershed Conservation Authority (sponsor)
Safe Routes to Schools National Partnership
OPPOSITION:
None received.
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