BILL ANALYSIS �
AB 1447
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1447 (Waldron and V. Manuel P�rez)
As Amended July 1, 2014
Majority vote
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|ASSEMBLY: |70-2 |(May 19, 2014) |SENATE: |34-0 |(August 19, |
| | | | | |2014) |
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Original Committee Reference: NAT. RES.
SUMMARY : Clarifies that eligible investments of moneys
appropriated from the Greenhouse Gas Reduction Fund (GHGRF) may
include traffic signal synchronization as a component of an
eligible sustainable infrastructure project if specified
conditions are met.
The Senate amendments require traffic signal synchronization to:
1)Be a component of an eligible sustainable infrastructure
project.
2)Be designed and implemented to achieve cost-effective
reductions in greenhouse gas (GHG) emissions, as determined by
the sponsoring agency, and to include specific reduction
targets and metrics to evaluate the project's effect.
3)Meet the requirements of specified existing laws governing
expenditure of funds from the GHGRF.
EXISTING LAW :
1)Requires the Air Resources Board (ARB), pursuant to California
Global Warming Solutions Act of 2006 [AB 32 (N��ez), Chapter
488, Statutes of 2006], to adopt a statewide GHG emissions
limit equivalent to 1990 levels by 2020 and adopt regulations
to achieve maximum technologically feasible and cost-effective
GHG emission reductions.
2)Authorizes ARB to permit the use of market-based compliance
mechanisms to comply with GHG reduction regulations, once
specified conditions are met.
3)Establishes the GHGRF and requires all moneys, except for
AB 1447
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fines and penalties, 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)
to be deposited in the GHGRF and available for appropriation
by the Legislature.
4)Establishes the GHGRF Investment Plan and Communities
Revitalization Act [AB 1532 (John A. P�rez), Chapter 807,
Statutes of 2012] to set procedures for the investment of GHG
allowance auction revenues. AB 1532 authorizes a range of GHG
reduction investments and establishes several additional
policy objectives.
5)Requires the investment plan to allocate: 1) a minimum of 25%
of the available moneys in the fund to projects that provide
benefits to identified disadvantaged communities; and, 2) a
minimum of 10% of the available moneys in the fund to projects
located within identified disadvantaged communities [SB 535
(De Leon), Chapter 830, Statutes of 2012].
FISCAL EFFECT : According to the Senate Appropriations
Committee, no direct fiscal impacts because a traffic signal
synchronization project that has demonstrable GHG reduction
benefits and is included as part of a sustainable communities
project is currently eligible for funding through the GHGRF.
COMMENTS : The Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, approved by the voters as
Proposition 1B on November 7, 2006, provided $250 million to
fund traffic signal synchronization or other technology-based
improvements to improve safety, operations and the effective
capacity of local streets and roads. SB 88 (Budget and Fiscal
Review Committee), Chapter 181, a 2007 budget trailer bill,
allocated $150 million to the City of Los Angeles. The
remaining $100 million was allocated in much smaller amounts by
the California Transportation Commission to jurisdictions around
the state.
The 2012-13 Budget Act authorized Department of Finance (DOF) to
allocate at least $500 million from cap-and-trade revenue, and
make commensurate reductions to General Fund (GF) expenditure
authority, to support the regulatory purposes of AB 32. AB 1532
established a long-term spending strategy for moneys in the
GHGRF, including procedures for deposit and expenditure of
cap-and-trade auction revenues pursuant to an investment plan.
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AB 1532 specifically authorizes funding for transportation
projects that reduce GHG emissions.
While DOF and ARB developed a three-year investment plan for the
auction proceeds pursuant to AB 1532, the 2013-14 Budget Act
provided that the first $500 million in auction revenue be
loaned to the GF and did not appropriate any funds pursuant to
the investment plan.
The 2014-15 Budget Act allocates cap-and-trade revenues for the
2014-15 fiscal year and establishes a long-term plan for the
allocation of cap-and-trade revenues beginning in fiscal year
2015-16. The Budget continuously appropriates 35% of
cap-and-trade funds for investments in transit, affordable
housing, and sustainable communities. Twenty-five percent of
the revenues are continuously appropriated to continue the
construction of high-speed rail. The remaining 40% will be
appropriated annually by the Legislature for investments in
programs that include low-carbon transportation, energy
efficiency and renewable energy, and natural resources and waste
diversion. While no funds have been specifically appropriated
for traffic signal synchronization, it appears to be eligible
under current law.
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092
FN: 0005051