BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair

          AB 2593 (Bradford) - Greenhouse gases: diversity reporting.
          
          Amended: As introduced.         Policy Vote: EQ 5-2
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                      Consultant:  
          Marie Liu     
          
          This bill meets the criteria for referral to the Suspense File.

          Bill Summary: AB 2593 would require certain businesses who are  
          participating in programs administered by the California Air  
          Resources Board (ARB) that are funded by the Greenhouse Gas  
          Reduction Fund (GGRF) to annually report to the ARB regarding  
          its programs to increase procurement from women, minority, and  
          disabled veteran businesses, if any.

          Fiscal Impact: Annual costs ranging from $150,000 to $300,000  
          from the General Fund to the ARB to collect the required  
          information.

          Background: The California Global Warming Solutions Act of 2006  
          requires the ARB to approve a statewide GHG emissions limit that  
          is equivalent to the 1990 statewide GHG emissions and to adopt  
          reduction measures by regulation to reach this level by 2020.  
          ARB is authorized to use market-based mechanisms to comply with  
          these regulations. Under this authority, the ARB has developed a  
          Cap-and-trade program for GHG emissions. All monies, except for  
          fines and penalties, collected pursuant to the cap-and-trade  
          program are required to be deposited in the Greenhouse Gas  
          Reduction Fund which is established in the State Treasury. To  
          date, approximately $734 million has been received under the  
          cap-and-trade program. Monies in the GGRF must be used to  
          facilitate GHG emission reductions in California consistent with  
          the California Global Warming Solutions Act. 

          In the Budget Act or 2014, $870 million was appropriated from  
          the GGRF in categories including transit, affordable housing and  
          sustainable communities, high speed rail, low carbon  
          transportation, energy efficiency and renewable energy, natural  
          resources, and waste diversion.

          Proposed Law: This bill would require that any business  
          enterprise with gross annual revenues exceeding $25 million  








          AB 2593 (Bradford)
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          dollars that participates in a program that is funded by the  
          GGRF and administered by ARB to annually report to the ARB  
          regarding its programs to increase procurement from women,  
          minority, and disabled veteran businesses, if any. 

          Staff Comments: This bill would require additional workload for  
          the ARB to identify the businesses that would be subject to the  
          reporting requirements under this bill, provide outreach to the  
          impacted businesses regarding their reporting obligation, to  
          develop and update reporting guidance as well as the reporting  
          mechanism. Staff estimates that the necessary increased workload  
          would be in the range of $150,000 to $300,000 in annual costs.  
          Staff notes that these costs assume that ARB would do little or  
          no analysis of the information it receives as no such analysis  
          is required by the bill.