BILL ANALYSIS �
AB 1970
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Date of Hearing: April 23, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 1970 (Gordon) - As Amended: April 10, 2014
SUBJECT : California Global Warming Solutions Act of 2006:
Community Investment and Innovation Program.
SUMMARY : Requires the Strategic Growth Council (SGC) to
administer the Community Investment and Innovation Program
(CIIP) to provide grants and other financial assistance to
eligible local government recipients for the purposes of
developing and implementing greenhouse gas emission reduction
projects. Specifically, this bill :
1)Establishes the CIIP, to be administered by SGC, in
consultation with the Air Resources Board (ARB), to provide
grants and other financial assistance to eligible applicants
who submit plans to develop and implement integrated
community-level greenhouse gas emissions reduction projects in
their region.
2)Requires moneys to be available from the Greenhouse Gas
Reduction Fund, upon appropriation by the Legislature, for the
CIIP.
3)Defines "eligible applicant" to mean a city, county, city and
county, charter city, charter county, district, special
district, or collection of cities, counties, districts, or
special districts, including, but not limited to, a regional
energy network.
4)Requires the SGC, in consultation with ARB, to develop
guidelines for the implementation of the CIIP, and requires
the guidelines to do all of the following:
a) Allow for project implementation by eligible applicants,
as well as metropolitan planning organizations, regional
climate authorities, joint powers authorities, regional
collaboratives, or nonprofit organizations working in
coordination with the eligible applicant;
b) Provide for a portfolio of projects to be implemented
that reduce greenhouse gases and maximize the ability to
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achieve one or more of the following:
i) Decrease air or water pollution;
ii) Reduce the consumption of natural resources or
energy;
iii) Provide opportunities to increase localized energy
resources;
iv) Promote public-private partnerships to implement
energy efficiency and clean energy projects;
v) Promote financing incentives for residential and
commercial facilities;
vi) Increase the reliability of local water supplies;
vii) Increase solid waste diversion from landfills;
viii) Increase electric vehicle infrastructure;
ix) Reduce vehicle miles traveled; and,
x) Prevent the conversion of agricultural, forest, and
open-space lands to uses that result in higher greenhouse
gas emissions.
c) Maximize the development of community-level projects
that reduce greenhouse gas emissions;
d) Provide opportunities for both small- and large-
population participants and take into consideration
regional context when determining project eligibility;
e) Provide incentives for projects that are in addition to
projects already being implemented at the local level;
f) Provide opportunities for the development and
implementation of innovative projects that create new
systems or technologies;
g) Provide opportunities for existing, proven greenhouse
gas emissions reducing or sequestering projects, including,
but not limited to, those projects and programs already
adopted by local agencies;
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h) Provide for the aggregation of community- and
regional-scale emissions reduction or sequestration
projects;
i) Ensure projects funded pursuant to the CIIP maximize
moneys appropriated, provide environmental benefits, create
jobs, and are consistent with law; and,
j) Provide for the allocation of moneys appropriated by the
Legislature for the purposes of this bill consistent with
the Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act, including, but not limited
to, the allocation of moneys to disadvantaged communities.
5)Requires the SGC, in consultation with ARB, to give priority
to projects that demonstrate one or more of the following
characteristics, in evaluating potential projects to be funded
pursuant to the CIIP:
a) The ability to leverage additional public and private
funding;
b) The potential for co-benefits or multi-benefit
attributes;
c) The potential for the project or program to be
replicated and to create best practices to serve as a model
for communities across the state; and,
d) Demonstration of innovative strategies and approaches to
reducing greenhouse gas emissions.
EXISTING LAW :
1)Requires the ARB, pursuant to California Global Warming
Solutions Act of 2006 (AB 32), 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.
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3)Establishes the Greenhouse Gas Reduction Fund (GHGRF) and
requires all moneys, except for 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 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
FISCAL EFFECT : This bill is keyed fiscal.
COMMENTS :
1)Purpose of this bill . This bill creates the CIIP, to be
administered by the SGC, and requires moneys from the
Greenhouse Gas Reduction Fund, upon appropriation by the
Legislature, to be used for purposes of awarding grants and
other financial assistance to local government applicants for
greenhouse gas emissions reductions projects. The bill is
author-sponsored.
2)Author's statement . According to the author, "AB 1970 is the
next step in the SGC's Sustainable Communities Planning Grant
and Incentives Program?.the Program will help local
governments meet the challenges of adopting climate action
plans and integrating strategies to transform communities and
create long-term sustainability.
"Local governments are instrumental to meeting the state's
climate goals set forth by AB 32. As the closest level of
government to Californians, local governments are able to make
a significant impact by taking action in our communities and
promoting public awareness. Local governments are uniquely
positioned to work with local planners and the public to
initiate integrated, multi-benefit projects that can deliver
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the greatest GHG reductions per dollar. This integrated
approach allows local governments to develop unified programs
that would otherwise require multiple applications to multiple
state agencies. In addition, these projects will provide
other environmental and economic benefits, including better
air and water quality, reduction of natural resources and
energy consumption, increased water supply and greater
diversion of waste. Equally important are the jobs these
projects will create that will benefit local economies as well
as the state's economy."
1)Prior legislation . AB 1532 (John A. P�rez), Chapter 802,
Statutes of 2012, establishes a long-term spending strategy
for moneys in the Fund, including procedures for deposit and
expenditure of cap-and-trade auction revenues pursuant to an
investment plan.
The bill is substantially similar to AB 416 (Gordon), which
was approved by this committee in April 2013, and later held
in the Assembly Appropriations Committee.
2)Arguments in support . The League of California Cities,
California State Association of Counties, Urban Counties
Caucus, California Special Districts Association, and a large
number of individual local agencies are in support of this
bill because it paves the way for investments at the local
level to engage in meaningful GHG reduction projects while
promoting sustainable communities.
3)Arguments in opposition . Opponents argue that there is
pending litigation which calls into question the legality of
raising revenue from the cap-and-trade program, and that
expenditures on high-speed rail, conservation projects, and
environmental justice projects, have little or no nexus to
regulated parties that purchase cap-and-trade allowances.
4)Double-referral . This bill was heard by the Natural Resources
Committee on April 7, 2014, and passed with a 6-1 vote.
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REGISTERED SUPPORT / OPPOSITION :
Support
Association of California Healthcare Districts
California Association of Sanitation Agencies
California Special Districts Association
California State Association of Counties
Cities of Sacramento and Thousand Oaks
Counties of Alpine, Humboldt, Imperial, Los Angeles, Mono,
Monterey, San Luis Obispo,
San Mateo, Santa Barbara, Santa Clara, and Sierra
East Bay Municipal Utility District
Environmental Defense Fund
Fulton-El Camino Recreation and Park District
Hayward Area Recreation and Park District
League of California Cities
Local Government Commission
Rural County Representatives of California
Sonoma County Water Agency
Three Valleys Municipal Water District
Upper Salinas-Las Tablas Resource Conservation District
Urban Counties Caucus
Opposition
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California Chamber of Commerce
California League of Food Processors
California Manufacturers & Technology Association
California Taxpayers Association
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958