BILL ANALYSIS
AB 1405
Page 1
ASSEMBLY THIRD READING
AB 1405 (De Leon and V. Manuel Perez)
As Amended June 1, 2009
Majority vote
NATURAL RESORUCES 6-3 APPROPRIATIONS 12-5
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|Ayes:|Skinner, Brownley, |Ayes:|De Leon, Ammiano, Charles |
| |Chesbro, | |Calderon, Davis, Fuentes, |
| |De Leon, Hill, Huffman | |Hall, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Gilmore, Knight, Logue |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
| | | | |
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SUMMARY : Directs an unspecified percentage of revenues
generated pursuant to AB 32 (Nunez and Pavley), Chapter 488,
Statutes of 2006, to a Community Benefits Fund (CBF) to be
awarded by an appointed panel as grants to benefit disadvantaged
communities. Specifically, this bill:
1)Provides that an unspecified percentage of the total revenues
generated by AB 32 be deposited in the CBF, which the bill
creates.
2)Requires moneys in the CBF be used, upon appropriation, for
the Community Benefits Program (Program) to award competitive
grants for projects in the most impacted and disadvantaged
communities in California to accelerate greenhouse gas (GHG)
emission reductions and mitigate direct health impacts of
climate change.
3)Requires the Air Resources Board (ARB) to develop a
methodology to identify the most impacted and disadvantaged
communities.
4)Requires ARB, the California Energy Commission (CEC), and the
Department of Public Health (DPH) to jointly develop
semiannual plans for use of Program funds, and present them to
AB 1405
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the Panel for approval.
5)Provides the Panel may only approve a project if it determines
that the use of moneys would not be inconsistent with Article
XIII A of the California Constitution (tax limitations,
including requirement that tax increases must be approved by
two-thirds vote of the Legislature).
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)One-time costs to ARB of approximately $350,000 to develop a
methodology to identify the most impacted and disadvantaged
communities. (Air Pollution Control Fund)
2)Minor, absorbable costs to ARB, CEC, and DPH to develop
semiannual plans.
3)This bill may result in a potential shift in funds, possibly
in the hundreds of millions of dollars annually, from the Air
Pollution Control Fund to the CBF, to the extent that ARB
adopts an AB 32 fee that produces revenue and depending on the
percentage of revenue directed to the CBF.
COMMENTS : AB 32 authorizes ARB to adopt via regulation "a
schedule of fees to be paid by the sources of greenhouse gas
emissions" and deposit revenues into the Air Pollution Control
Fund. AB 32 also authorizes, but does not require, the use of
market-based mechanisms to achieve GHG emission reductions,
provided specified conditions are met.
Thus far, ARB has proposed only to use its fee authority for the
limited purpose of funding its own and other state agencies' AB
32 implementation costs, and to repay loans of other state funds
that previously have been approved by the Legislature for these
purposes. The fee revenue necessary for these purposes is
estimated at $55 million per year. The proposed administrative
fee is scheduled for adoption by ARB in June 2009. It's
possible that a more expansive fee on GHG emitters, the auction
of GHG emission allowances, or another market mechanism will
produce significantly higher revenues over the course of AB 32
implementation.
AB 32 also requires ARB to ensure that the GHG emission
reduction rules, regulations, programs, mechanisms, and
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incentives under its jurisdiction direct public and private
investment toward the most disadvantaged communities in
California and provide an opportunity for small businesses,
schools, affordable housing associations, and other community
institutions to participate in and benefit from statewide
efforts to reduce GHG emissions. ARB has yet to propose how it
will meet this requirement.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0001312