BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1447
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1447 (Waldron) - As Amended:  April 22, 2014 

          Policy Committee:                              Natural  
          ResourcesVote:9-0
                        Transportation                                16-0  

                       
          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill specifies that projects to reduce greenhouse gas (GHG)  
          emissions through traffic signal synchronization are eligible to  
          receive funding from the state's cap-and-trade program.

           FISCAL EFFECT  

          No direct fiscal impact.  Traffic signal synchronization  
          projects that reduce GHG emissions are eligible for funding from  
          the Greenhouse Gas Reduction Fund (GGRF).

           COMMENTS  

           1)Purpose.   According to the author, funding for traffic signal  
            synchronization has diminished along with transportation bond  
            dollars.  This bill was introduced to provide a means of  
            funding future projects.

           1)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.  

            All moneys collected by ARB from the auction or sale of  
            allowances pursuant to a market-based compliance mechanism  
            (i.e., the cap-and-trade program adopted by ARB under AB 32)  
            are deposited into the GHG Reduction Fund available for  








                                                                  AB 1447
                                                                  Page  2

            appropriation by the Legislature.  

           2)State's Investment Plan.   AB 1532 (John A. P�rez), Chapter  
            807, Statutes of 2012, creates the Greenhouse Gas Reduction  
            Fund Investment Plan and Communities Revitalization Act to set  
            procedures for the investment of AB 32 cap-and-trade auction  
            revenues.  

            AB 1532 allows expenditures from the GHGF to reduce GHG  
            emissions through strategic planning and development of  
            sustainable infrastructure projects, including transportation  
            and housing. Additionally, the adopted investment plan for  
            2013-14 through 2015-15 recognizes the state needs to fund  
            programs that modernize existing road systems to promote  
            efficient use, such as complete streets and traffic management  
            technologies.



            For the 2014-15 Budget, the Governor has proposed spending  
            $850 million on a variety of programs, including $100 million  
            for grants to local governments to support implementation of  
            Sustainable Communities Strategies, $50 million for inter-city  
            rail grants, $30 million for organic waste diversion  
            infrastructure, and $20 million for water and energy saving  
            projects.

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081