BILL ANALYSIS Ó SB 830 Page 1 Date of Hearing: August 31, 2016 ASSEMBLY COMMITTEE ON BUDGET Philip Ting, Chair SB 830 (Committee on Budget and Fiscal Review) - As Amended August 30, 2016 SENATE VOTE: 25-11 SUBJECT: CAP AND TRADE SUMMARY: Amends the 2016 Budget Act to appropriate $900 million of Greenhouse Gas Reduction Funds consistent with the 2016 Cap and Trade Plan. Specifically, this bill: 1) Appropriates $900 million of Greenhouse Gas Reduction Funds for a portfolio of programs: a. $135 million for the Transit and Intercity Rail Capital program, helping fund essential local capital projects to keep Californians moving by bus and commuter rail; b. $10 million for the Active Transportation Program to fund bicycle and pedestrian programs that make walking or biking to school and work safer and easier; SB 830 Page 2 c. $133 million for a reformed Clean Vehicle Rebate Project, which help low and middle income families purchase the newest, cleanest vehicles available; d. $150 million for the Heavy Duty and Off-Road Investments to help develop and pilot cleaner industrial vehicles, buses, and port equipment with new low or zero emissions; e. $80 million for the Enhanced Vehicle Fleet Modernization program to provide low income families help in replacing their existing polluting vehicle with a newer, cleaner vehicle; f. $140 million for the Transformative Climate Communities program to allow for a community-wide approach for disadvantaged communities specified in statute to implement an integrated transportation, housing, and green space development plan to reduce pollution and improve local quality of life; g. $5 million to reduce black carbon emissions by supplementing successful local programs to reduce wood smoke pollution through fireplace, stove, and heater replacement; h. $40 million for waste diversion projects for organic material which fund projects that have a double environmental benefit of capture greenhouse gases while also reducing methane emissions; SB 830 Page 3 i. $7.5 million for the Healthy Soils program, to establish innovative farming practices that capture carbon, reduce water use and improve soil health; j. $50 million for programs that help dairies reduce emissions and pollution associated with animal manure; aa. $7.5 million to continue the successful State Water Efficiency and Enhancement Program (SWEEP) which helps replace older inefficient water irrigation and pumping equipment with new state-of-the-art replacements that pollute less and save water; bb. $25 million for the Healthy Forest program, which preserves existing forests by reducing the threat of wildfires by reducing fuels, removing dead trees, and providing long-term protection to forest land; cc. $80 million for the Urban Greening program, to create green spaces and parks in communities in California that lack green space; dd. $15 million to continue the successful Urban Forestry program, which helps urban disadvantage communities plant trees in their neighborhood; ee. $20 million to help individuals in low-income communities reduce their energy use with weatherization and energy efficiency improvements, including solar installations; and SB 830 Page 4 ff. $2 million to assist disadvantaged communities and local governments with developing climate action plans. 2) Reappropriates previously appropriated funds for the Building Equity and Growth in Neighborhoods (BEGIN) program at the Department of Housing and Community Development and Affordable Housing and Sustainable Community program funds at the Strategic Growth Council. FISCAL EFFECT: This bill contains $900 million of Greenhouse Gas Reduction Fund appropriations, which would result in a remaining fund balance for the fund of at least $460 million for future appropriations. COMMENTS: This bill amends the 2016 Budget Act, SB 826 (Leno) (Chapter 23, Statutes of 2016) to add appropriations related to Cap and Trade. When the budget agreement was reached in June, the decision regarding programmatic funding for Cap and Trade programs was deferred. This bill reflects the result of a subsequent agreement on spending a portion of available Greenhouse Gas Reduction funds and thus adds these appropriations into the 2016 Budget. REGISTERED SUPPORT / OPPOSITION: Support None on File SB 830 Page 5 Opposition None on File Analysis Prepared by:Christian Griffith / BUDGET / (916) 319-2099