BILL ANALYSIS �
AB 2593
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2593 (Bradford) - As Introduced: February 21, 2014
Policy Committee: Utilities and
Commerce Vote: 10-4
Natural Resources 5-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires businesses with gross annual revenues
exceeding $25 million that participate in programs funded by the
state's cap-and-trade program to report to the Air Resources
Board (ARB) on efforts to increase procurement from women,
minority, and disabled veterans enterprises.
FISCAL EFFECT
Increased annual costs to ARB in the $150,000 to $350,000 range
to identify qualifying businesses, develop reporting guidelines
and mechanisms, and monitor and track projects (Greenhouse Gas
Reduction Fund).
COMMENTS
1)Purpose. According to the author, greenhouse gas emission
(GHG) reduction programs should factor in the inclusion of
diverse sectors within California's economy to ensure that
access to new job opportunities are available to all
Californians. This bill will provide information regarding
the extent to which programs funded in whole or in part
through the cap-and-trade program are procuring goods and
services from women, minority, and disabled veteran
businesses.
2)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
AB 2593
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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 and are available
for appropriation by the Legislature. The local and regional
agencies defined in this bill are eligible for funding under
this program.
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.
3)Similar Programs. Electric, gas and telephone corporations
regulated by the Public Utilities Commission (PUC) with gross
annual revenues exceeding $25 million are required to submit
annual detailed and verifiable plans to increase procurement
from women, minority and disabled veteran-owned businesses
under General Order 156. Cable corporations with gross
annual revenues exceeding $25 million are similarly required
by statute to submit plans for increasing procurement from
women, minority and disabled veteran owned businesses.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081