BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 760 (Mendoza) - Distressed watershed: urban greening.
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: May 11, 2015           |Policy Vote: not relevant       |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: May 18, 2015      |Consultant: Marie Liu           |
          |                                |                                |
           ----------------------------------------------------------------- 


          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  SB 760 would require that a public agency that  
          receives an appropriation of monies from Proposition 1 to  
          enhance an urban creek or its tributaries, prioritize its  
          spending as specified.


          Fiscal  
          Impact:  Unknown, but potential costs to the General Fund (bond  
          monies) for a public agency that receives monies from §79735(a)  
          to develop regulations to implement the priorities established  
          in this bill.


          Background:  Proposition 1, which was approved by the voters in November of  
          2014, included the authorization for $100 million for projects  
          that protect and enhance an urban create and its tributaries  
          (WAT §79735(a)). Proposition 1, similar to various previous  
          bonds, defined a "disadvantaged community" as a community with  
          an annual median household income that is less than 80% of the  







          SB 760 (Mendoza)                                       Page 1 of  
          ?
          
          
          statewide annual median household income. (WAT §79505.5)
          Under the California Global Warming Act of 2006, the California  
          Air Resources Board (ARB) is required to establish a statewide  
          greenhouse gas (GHG) emissions limit such that by 2020  
          California reduces its GHG emissions to the level they were in  
          1990. The act authorizes the ARB to include the use of  
          market-based mechanisms to comply with these regulations. Under  
          that authority, the ARB established the Cap-and-Trade Program in  
          which ARB establishes an overall limit - or "cap" - on GHG  
          emissions from specified industries.  As part of the  
          Cap-and-Trade Program, ARB auctions off GHG emission allowances  
          as mitigation fees.  To date, ARB has completed 10 auctions,  
          taking in a total of $1.6 billion in proceeds. Existing law  
          requires that at least 25% of the revenues are to be available  
          for projects that provide benefits to disadvantaged communities.  
          For the purposes of this requirement, the secretary of the  
          Environmental Protection Agency is required to identify  
          disadvantaged communities based on geographic, socioeconomic,  
          public health, and environmental hazard criteria (HSC §39711).  
          The secretary has provided this identification through  
          CalEnviroScreen.




          Proposed Law:  
            This bill would require that a public agency, which receives  
          funds from Proposition 1 to enhance an urban creek and its  
          tributary, give priority to projects that are located directly  
          in, or directly adjacent to, a disadvantaged community within a  
          distressed watershed and provide greenspace or other venues for  
          physical activities.
          This bill would define "disadvantaged communities" as a  
          community that is considered disadvantaged under CalEnviroScreen  
          and has significant population densities, significant  
          concentrations of industrial facilities, and trade corridor  
          activity. 




          Staff  
          Comments:  The definition of "disadvantaged communities" in this  
          bill is substantially different than the definition of  








          SB 760 (Mendoza)                                       Page 2 of  
          ?
          
          
          "disadvantaged communities" used under Proposition 1. Staff  
          notes that  if  the definition used under this bill identifies  
          communities that would not also be considered disadvantaged  
          under the Proposition 1 definition, this bill could conflict  
          with a voter-passed measure. However, if this definition only  
          identifies a subset of the "disadvantaged communities" as  
          defined by Proposition 1, the language under this bill is  
          permissible. Whether this is the situation is unclear.
          Staff notes that no public agency has received funds from  
          Section 79730 so it is unclear what agency might be affected by  
          this bill at this time. Furthermore, it is unclear whether a  
          public agency that receives this category of Proposition 1 money  
          would receive those monies in order for it to administer grants  
          to other agencies or whether that public agency would receive  
          the these bond funds for a specific project. In the case of the  
          former, the public agency would potentially be required to  
          develop guidelines for the distribution of grants for several  
          purposes, including to provide additional specifics for the  
          definition of disadvantaged communities. For example, the  
          definition of disadvantaged communities under this bill is one  
          that is identified on CalEnviroScreen, and has "significant  
          population densities, significant concentrations of industrial  
          facilities, and trade corridor activity. It is not clear what  
          would constitute "significant" for the purposes of this  
          definition. "Industrial facilities" and "trade corridor  
          activity" may also need to be defined to ensure transparent  
          spending of the bond funds. The guideline or regulatory process  
          would also need to assure that the definition of disadvantaged  
          communities does not include communities that would be  
          identified under Proposition 1, as discussed above. Staff notes  
          that grant program guidelines are frequently exempted from the  
          Administrative Procedures Act, which would minimize but not  
          eliminate regulatory costs. 


          There is the possibility that the agency would need to develop  
          regulations to interpret the bills requirements even outside of  
          a grant program. 


          Because it has not yet been determined how this section of  
          Proposition 1 monies will be administered, or by which agency,  
          it is unknown whether that public agency might have costs to  
          develop regulations to implement the language in this bill. 








          SB 760 (Mendoza)                                       Page 3 of  
          ?
          
          




                                      -- END --