Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the State Air Resources Board and the Department of Toxic Substances Control.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

This bill would establish the California Green Business Program within the California Environmental Protection Agency to provide support and assistance to Agency. The bill would require the California Green Business Program to, among other things, develop baseline, beyond compliance environmental standards, as defined, for green business certification programs operated by local governments that governments. The bill would also provide for the establishment of these local programs, which would certify small- and medium-sized businesses that and public agencies as California green businesses, or an equivalent designation of the local programs choosing, for voluntarily adopt adopting environmentally preferable business practices, including, but not limited to, increased energy efficiency, pollution prevention, reduced greenhouse gas emissions, emissions reduction, water conservation, and waste reduction, as specified. reduction practices. The bill would repeal delete an existing authorization for the Department of Toxic Substances Control to create a similar program.

Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the State Air Resources Board and the Department of Toxic Substances Control.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

This bill would establish the California Green Business Program within the California Environmental Protection Agency to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, pollution prevention, reduced greenhouse gas emissions, water conservation, and waste reduction, as specified. The bill would repeal an existing authorization for the Department of Toxic Substances Control to create a similar program.

Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the State Air Resources Board and the Department of Toxic Substances Control.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

This bill would also establish the California Green Business Program within the California Environmental Protection Agency to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, reduced greenhouse gas emissions, water conservation, and waste reduction, as specified. The bill would repeal an existing authorization for the Department of Toxic Substances Control to create a similar program.

Existing federal law, the federal State Small Business Credit Initiative Act of 2010, provides funding to qualified state-run programs that support lending to small businesses, including state-run capital access loan programs and collateral support programs. Existing law establishes the Capital Access Loan Program to assist qualified small businesses in financing the costs of complying with environmental mandates and the remediation of contamination on their properties, which is administered by the California Pollution Control Financing Authority. Under the program, the authority may enter into contracts with participating financial institutions and is required to establish a loss reserve account with participating financial institutions. Under existing law, a participating financial institution that experiences a default on a qualified loan enrolled in the Capital Access Loan Program may obtain reimbursement from the authority by submitting a claim for reimbursement for a specified amount of the loss covered by that loan, subject to certain procedures.

Existing administrative law establishes the Collateral Support Program within the Capital Access Loan Program in order to provide a cash deposit to cover a collateral shortfall to a qualifying loan, subject to procedures and standards that are similar to the Capital Access Loan Program as described above.

This bill would state the intent of the Legislature to enact subsequent legislation that would expand the Capital Access Loan Program, including the Capital Access Loan Program for Small Business and the Collateral Support Program, in order to provide additional funding for businesses willing to embrace sustainable business practices and eco-friendly infrastructure changes.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 2211 (Limón) - California Green Business Program

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill would establish the California Green Business Program (CGBP) within the California Environmental Protection Agency (CalEPA) to provide assistance to green business certification programs.

Fiscal Impact:

• Ongoing annual costs of approximately $1.14 million for CalEPA to establish a new program unit, including $600,000 (3 positions) and $535,000 for contracts with the Green Business Network and other entities.

Background:

In 2011, AB 913 (Feuer, Chapter 578, Statutes of 2011) established the CGBP within DTSC to provide support and assistance to Green Business Programs (GBPs). The CGBP oversees voluntary certification of businesses that adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, reduced greenhouse gas emissions, promotion of water conservation, and reduced waste generation. In passing AB 913 (Feuer, Chapter 578, Statutes of 2011) it was the intent of the Legislature that the CGBP assist GBPs in helping businesses achieve and move past regulatory compliance. To this end, GBPs were required to adopt industry-specific standards for green business certification. To date, GBPs exist in 15 counties and 13 cities throughout the state.

After the passage of AB 913, CGBP received in-kind staff support and funding from DTSC. However, in 2012, due to state budget cuts, the funding and support for the program was eliminated through SB 1018 (Committee on Budget and Fiscal Review), Chapter 39, Statutes of 2012.

Proposed Law:

This bill would:

1. Establish the CGBP within CalEPA, administered by the Secretary for Environmental Protection, to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, pollution prevention, reduced greenhouse gas (GHG) emissions, water conservation, and waste reduction.
2. Specify that the CGBP may do any of the following:
   1. Assist local governments in the development and implementation of guidelines and structures that establish and promote a level of consistency among green business certification programs (programs) throughout the state.
   2. Promote the early adoption of environmental initiatives at participating businesses and provide a publicly recognizable incentive for participating businesses to make their operations more sustainable and profitable.
   3. Develop technical guidance on GHG emission reduction measures, conduct industry studies and pilot projects, establish metrics, and provide policy coordination for the programs.
   4. Develop tools, templates, and outreach campaigns on behalf of the programs to encourage business participation and public recognition of the certification as a reliable indicator of sustainability.
   5. Support funding for on-the-ground professionals specializing in technical assistance for small- and medium-sized businesses seeking green business certification and for public involvement to recruit additional participating businesses.
   6. Provide for collaboration between the programs and state agencies that operate small business efficiency and economic development programs, as specified.
   7. Maintain and enhance a common network database integrating measurable pollution reductions and cost savings to businesses seeking green business certification through the local government programs. Create a directory of certified green businesses that would be used for promotion to businesses that are seeking to “green” their supply chain and to consumers seeking to support sustainable businesses.
   8. Position certified green businesses as supply chain partners for state, national, and international companies seeking green supply chain partners.
   9. Solicit the participation of additional local government programs and facilitate the startup of new local programs, including extra support and a specific prioritized focus on assistance for disadvantaged communities that lack local funding and resources to develop a program.
   10. Provide funding to local government program for staff support and provide additional resources and funding for direct rebates and grants to certified green businesses.
3. Repeals DTSC’s green business certification program for small businesses.

Related Legislation:

AB 2293 (C. Garcia, Alejo, Eggman, E. Garcia, Gomez, Principle coauthor Leyva 2016) would have established the Green Assistance Program within CalEPA to assist small businesses in applying for GGRF moneys and the California Green Business Program within CalEPA, repealing existing authorization from DTSC. This bill died in Assembly Appropriations.

Staff Comments:

AB 913 codified the establishment of the CGBP by DTSC. However, in 2012, due to state budget cuts, the funding and support for the program was effectively eliminated.

Membership funding from local green business programs has kept the CGBN afloat, allowing maintenance of a statewide web-based tracking system of GBPs. The CGBN has also received a small amount of federal funding from the United States Environmental Protection Agency. The CGBP at the same time has been seeking new state funding to be able to continue the program. State funds were recently allocated by the 2017-18 Budget Act when $1 million was appropriated to CalEPA for the program. This bill would align statute with the budget action by moving the CGBP from DTSC to CalEPA.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 2211

SUBJECT: California Green Business Program

ANALYSIS:

Existing law:

1. Requires, under the Hazardous Waste Source Reduction and Management Review Act of 1989, the Department of Toxic Substances Control (DTSC) to do the following:
   
   1. Establish a program for hazardous waste source reduction.
      
   2. Establish a technical assistance and outreach program to promote implementation of model source reduction measures in priority industry categories.
      
   3. Establish a technical and research assistance program to assist generators in identifying and applying methods of source reduction and other hazardous waste management approaches.
      
   4. Expand the source reduction program to provide source reduction training and resources to Certified Unified Program Agencies (CUPAs), small business development corporations, business environmental assistance centers, and other regional and local government environmental programs so that they can provide technical assistance to generators in identifying and applying methods of source reduction. (Health and Safety Code (HSC) §25244.12 et seq.)
      
2. Requires, under the California Global Warming Solutions Act of 2006 (also known as AB 32), ARB to (1) determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020; (2) ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030 (i.e., SB 32); and (3) adopt regulations, until December 31, 2030, that utilize market-based compliance mechanisms to reduce GHG emissions (i.e., the cap-and-trade program). (Health and Safety Code (HSC) §38500 et seq.)
   
3. Requires DTSC to develop a California Green Business Program (CGBP) and specifies requirements for the program:
   
   1. Provide support and assistance to programs operated by local governments that would voluntarily certify small businesses that adopt environmentally preferable business practices.
      
   2. Collaborate with relevant state agencies that operate small business efficiency and economic development programs, including, but not limited to, the Department of Resources Recycling and Recovery, the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the Department of Water Resources.
      
   3. Provide support and assistance to local government programs. (HSC §25244.17.2)
      
4. Makes the development of the CGBP discretionary. (HSC §25244.17.2)
   

This bill:

1. Establishes the CGBP within the California Environmental Protection Agency (CalEPA), administered by the Secretary for Environmental Protection, to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, pollution prevention, reduced greenhouse gas (GHG) emissions, water conservation, and waste reduction.
2. Specifies that the CGBP may do any of the following:
   1. Assist local governments in the development and implementation of guidelines and structures that establish and promote a level of consistency among green business certification programs (programs) throughout the state.
   2. Promote the early adoption of environmental initiatives at participating businesses and provide a publicly recognizable incentive for participating businesses to make their operations more sustainable and profitable.
   3. Develop technical guidance on GHG emission reduction measures, conduct industry studies and pilot projects, establish metrics, and provide policy coordination for the programs.
   4. Develop tools, templates, and outreach campaigns on behalf of the programs to encourage business participation and public recognition of the certification as a reliable indicator of sustainability.
   5. Support funding for on-the-ground professionals specializing in technical assistance for small- and medium-sized businesses seeking green business certification and for public involvement to recruit additional participating businesses.
   6. Provide for collaboration between the programs and state agencies that operate small business efficiency and economic development programs, as specified.
   7. Maintain and enhance a common network database integrating measurable pollution reductions and cost savings to businesses seeking green business certification through the local government programs. Create a directory of certified green businesses that would be used for promotion to businesses that are seeking to “green” their supply chain and to consumers seeking to support sustainable businesses.
   8. Position certified green businesses as supply chain partners for state, national, and international companies seeking green supply chain partners.
   9. Solicit the participation of additional local government programs and facilitate the startup of new local programs, including extra support and a specific prioritized focus on assistance for disadvantaged communities that lack local funding and resources to develop a program.
   10. Provide funding to local government program for staff support and provide additional resources and funding for direct rebates and grants to certified green businesses.
3. Repeals DTSC’s green business certification program for small businesses.

Background

1. Green Business Programs (GBP). California’s first GBP was launched in 1996 in Alameda County. The initial motivation behind this effort was to improve compliance and pollution prevention among small businesses such as vehicle repair shops and printers that collectively generate significant amounts of hazardous waste and adversely impact air quality. Organizers saw an opportunity to expand the concept to include energy and water conservation and solid waste reduction. Participating businesses agree to implement dozens of measures to conserve energy and water, reduce solid waste and prevent pollution. To date, GBPs exist in 15 counties and 13 cities throughout the State.

Along with helping make businesses greener, GBPs generally provide the following co-benefits:

• 1. Improve regulatory compliance.
     
  2. Help agencies and utility companies achieve conservation/pollution prevention objectives.
     
  3. Foster interagency cooperation/coordination.
     
  4. Establish constructive relationships with businesses, facilitating ongoing education and improvement.
     
  5. Boost business viability – more efficient businesses are often more successful.
     
  6. Provides residents with a way to identify green businesses.

1. California Green Business Network (CGBN). The CGBN is a nonprofit network of local GBPs operated by Chambers of Commerce, cities and counties throughout California. CGBN maintains a statewide web-based tracking system of GBPs. The goals of CGBN’s incentive and assistance programs are to help local businesses conserve energy and water, minimize waste, prevent pollution, and shrink their carbon footprints. Businesses that apply receive assistance from participating public agencies. CGBN is funded by grass-roots contributions from local government and utility partners. CGBN is also funded in part by the United States Environmental Protection Agency under assistance agreement G14-EA-001 with ARB.
2. California Green Business Program(CGBP). In 2011, AB 913 (Feuer, Chapter 578, Statutes of 2011) established the CGBP within DTSC to provide support and assistance to GBPs. The CGBP oversees voluntary certification of businesses that adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, reduced greenhouse gas emissions, promotion of water conservation, and reduced waste generation. In passing AB 913 (Feuer, Chapter 578, Statutes of 2011) it was the intent of the Legislature that the CGBP assist GBPs in helping businesses achieve and move past regulatory compliance. To this end, GBPs were required to adopt industry-specific standards for green business certification. The requirements that were placed on GBPs by the CGBP include:
   1. Being operated by a local government of its designee.
      
   2. Adopting industry-specific standards for green business certification.
      
   3. Only granting a green business certification to a business upon its determination by the program operator that is a small business and that it complies with industry-specific standards.
      
   4. That it would grant green business certification in accordance with the following requirements:
      
      1. The program conducts an evaluation to verify compliance with the appropriate industry-specific green business certification standards.
         
      2. A green business certification is only granted to an individual small business.
         
      3. A green business certification is granted for a limited time period, and after the elapse of that time period the business is required to reapply for certification.
         
      4. Compliance with applicable federal, state and local environmental law and regulation is required as a condition of receiving a green business certification.
         

After the passage of AB 913, CGBP received in-kind staff support and funding from DTSC. However, in 2012, due to state budget cuts, the funding and support for the program was eliminated through SB 1018 (Committee on Budget and Fiscal Review), Chapter 39, Statutes of 2012.

Comments

1. Purpose of Bill. According to the author, “this bill will ensure that the California Green Business Network will continue to receive the State oversight and support needed to expand California’s green economy, and meet ambitious State goals of sustainability and greenhouse gas reduction.”
   
2. A California Green Business Program is long overdue. The first Green Business Program (GBP) originated in Alameda County in 1996. Approximately a decade later, legislation to codify a CGBP as state oversight and support for GBPs was introduced in 2004. SB 1703 (Alarcon, 2004) passed through both houses but was vetoed by Governor Schwarzenegger. The number of GBPs continued to grow, and by 2011 a network of 16 GBPs, the CGBN, had certified over 2,600 businesses. AB 913 (Feuer, Chapter 578, Statutes of 2011) codified the establishment of the CGBP by DTSC. However, in 2012, due to state budget cuts, the funding and support for the program was effectively eliminated through SB 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012) when the development of the program was made discretionary.
   

Membership funding from local green business programs has kept the CGBN afloat, allowing maintenance of a statewide web-based tracking system of GBPs. The CGBN has also received a small amount of federal funding from the United States Environmental Protection Agency under assistance agreement G14-EA-001 with the ARB. The CGBP at the same time has been seeking new state funding to be able to continue the program. State funds were recently allocated by the 2017-18 Budget Act when $1M was appropriated to CalEPA for the program. This bill would align statute with the budget action by moving the CGBP from DTSC to CalEPA.

1. California certified green businesses. The CGBP has a state oversight function for GBPs. Therefore, it is essential that the program defines the certification requirements that GBPs use to grant California certified green business awards. The CGBP at its inception at DTSC through AB 913 (Feuer, Chapter 578, Statutes of 2011) had specific requirements for GBP certification standards. Namely, businesses were required to not only achieve and move past regulatory compliance, but also to adopt industry-specific standards for green business certification. This bill, in moving the CGBP from DTSC to CalEPA, preserves the role of the CGBP to facilitate the start up of new GBPs, however it cuts short the oversight function of the CGBP by not including certification requirements for GBPs. The following amendments are necessary to address this deficiency.

An amendment is needed to include the following definitions :

1. “California certified green business”
   
2. “Beyond compliance”
   
3. “Industry-specific green business standards”

An amendment is needed to describe the requirements on businesses receiving green businesses certifications by GBPs to not only achieve and move past regulatory compliance, but also to adopt industry-specific standards for green business certification.

An amendment is needed to define the green business certification requirements of GBPs.

1. Program administration at the agency level. CalEPA and its boards, departments, and offices offer funding opportunities authorized by legislation to assist public and private entities in the safe and effective management of environmental protection. This bill places the administration of the CGBP directly with the Secretary for Environmental Protection. Even though the Rural California State Unified Program Reimbursement Program and the Environmental Justice Small Grants Program are also administered at the agency level at CalEPA, more efficient program management might place program administration at the department level in the future.
   

Related/Prior Legislation

SB 1703 (Alarcon, 2004) would have established a voluntary California certified green business program to certify businesses that engage in environmentally beneficial operations. This bill was vetoed by the Governor.

SB 563 (Alarcon 2005) declared the intent of the Legislature to enact legislation to establish a California certified green business program that would assist businesses that operate in California to protect the environment, conserve natural resources and reduce pollution. This bill was returned to the Secretary of the Senate pursuant to Joint Rule 56.

AB 3018 (Nunez, Chapter 312, Statutes of 2008) set forth legislative findings and declarations relating to the state’s green economy and enacted the California Green Jobs Act of 2008 requiring the California Workforce Investment Board to establish the Green Collar Jobs Council to develop green job training programs.

AB 913 (Feuer, Chapter 578, Statutes of 2011) required DTSC to develop a California Green Business Program that provides support to local government programs that provide for the voluntary certification of small businesses that adopt environmentally preferable business practices.

SB 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012) this bill made the development of the California Green Business Program discretionary.

AB 2293 (C. Garcia, Alejo, Eggman, E. Garcia, Gomez, Principle coauthor Leyva 2016) would have established the Green Assistance Program within CalEPA to assist small businesses in applying for GGRF moneys and the California Green Business Program within CalEPA, repealing existing authorization from DTSC. This bill died in Assembly Appropriations.

SOURCE:

Author

SUPPORT:

California Association of Local Conservation Corps

The California Green Business Network

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2211

Author:(Limón)

As Amended Ver:April 30, 2018

Majority vote

SUMMARY: Repeals the Green Business Program within the Department of Toxic Substances Control (DTSC) and establishes the California Green Business Program (CGBP) within the California Environmental Protection Agency (CalEPA) to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices. Specifically, this bill:

1. Establishes the CGBP within CalEPA, administered by the Secretary for Environmental Protection, to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, pollution prevention, reduced greenhouse gas (GHG) emissions, water conservation, and waste reduction.
2. Specifies that the CGBP may do any of the following:
   1. Assist local governments in the development and implementation of guidelines and structures that establish and promote a level of consistency among green business certification programs (programs) throughout the state.
   2. Promote the early adoption of environmental initiatives at participating businesses and provide a publicly recognizable incentive for participating businesses to make their operations more sustainable and profitable.
   3. Develop technical guidance on pollution prevention and GHG emission reduction measures, conduct industry studies and pilot projects, establish metrics, and provide policy coordination for the programs.
   4. Develop tools, templates, and outreach campaigns on behalf of the programs to encourage business participation and public recognition of the certification as a reliable indicator of sustainability.
   5. Support funding for on-the-ground professionals specializing in technical assistance for small- and medium-sized businesses seeking green business certification and for public involvement to recruit additional participating businesses.
   6. Provide for collaboration between the programs and state agencies that operate small business efficiency and economic development programs, as specified. The nature of the collaboration may include attempting to meet and measure state-mandated conservation efforts at small- and medium-sized businesses; developing methods to collect, measure, and report on environmental outcomes; and, using green businesses as the early adopters of environmental initiatives that lead to GHG emissions reductions.
   7. Maintain and enhance a common network database integrating measurable pollution reductions and cost savings to businesses seeking green business certification through the local government programs and add participating businesses that receive the certification to a directory of certified green businesses that would be used to promote the certified businesses both to other businesses that are seeking to green their supply chain and to consumers seeking to support sustainable businesses.
   8. Position certified green businesses as supply chain partners for state, national, and international companies seeking green supply chain partners.
   9. Solicit the participation of additional local government programs and facilitate the startup of new local programs, including extra support and a specific prioritized focus on assistance for disadvantaged communities that lack local funding and resources to develop a program.
   10. Provide funding to local government program for staff support and provide additional resources and funding for direct rebates and grants to certified green businesses.
3. Repeals DTSC's green business certification program for small businesses.

EXISTING LAW requires DTSC to develop a CGBP and specifies requirements for the program.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has the following costs:

1. Unknown cost pressures, likely in the annual range of hundreds of thousands to low millions of dollars, to provide direct rebates and grants to certified green businesses (General Fund (GF) or special fund).
2. Ongoing annual CalEPA staffing costs of approximately $600,000 (three Program Year (PY)) and $535,000 in contract funds to work with Green Business Network and other entities (GF or special fund.)

COMMENTS: The CGBN is a nonprofit network of local programs operated by cities and counties throughout California. The goals of CGBN's incentive and assistance programs are to help local businesses conserve energy and water, minimize waste, prevent pollution, and shrink their carbon footprints. Businesses that apply receive assistance from participating public agencies. CGBN is funded by grass-roots contributions from local government and utility partners. CGBN is also funded in part by the United States Environmental Protection Agency under an assistance agreement with Air Resources Board (ARB).

CGBN has certified over 3,000 businesses. Green business programs currently exist in 14 counties and 12 cities throughout California. According to CGBN, these businesses have reduced GHG emissions by over 800,000 metric tons, conserved enough energy to power 25,000 homes for one year, diverted over 400,000 metric tons of solid waste, saved over 124 million gallons of water, and eliminated over 28,000 gallons of hazardous waste.

In 2011, AB 913 (Feuer), Chapter 578, established the CGBP within DTSC to support the CGBN. After the passage of AB 913, CGBP received in-kind staff support and funding from DTSC equaling approximately $90,000 annually. However, in 2012, due to state budget cuts, the funding and support for the program was eliminated through SB 1018 (Committee on Budget and Fiscal Review), Chapter 39, Statutes of 2012. The CGBP has been seeking new state funding to continue the program. Membership funding from local green business programs has kept the program afloat, allowing maintenance of a statewide web-based tracking system. Recently, it received a small amount of federal funding to serve as a platform for other states to launch green business programs. The 2017-18 Budget Act appropriated $1 million to CalEPA for the CGBP. This bill would align statute with the budget action by moving state support for the CGBN through the CGBP to CalEPA and expands the program to include medium-sized businesses.

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0003043

Date of Hearing: May 23, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2211

Author:(Limón) – As Amended Ver:April 30, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill repeals the Green Business Program within the Department of Toxic Substances Control (DTSC) and establishes the California Green Business Program (CGBP) within CalEPA to provide support and assistance to green business certification programs operated by local governments to certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices. Specifically, this bill specifies that the CGBP may do any of the following:

1. Assist local governments with development and implementation of guidelines and structures to establish and promote a level of consistency among green business certification programs (programs) throughout the state.
2. Promote early adoption of environmental initiatives at participating businesses and provide publicly recognizable incentives to make business operations more sustainable and profitable.
3. Develop technical guidance on pollution prevention and GHG emission reduction measures, conduct industry studies and pilot projects, establish metrics, and provide policy coordination.
4. Develop tools, templates, and outreach campaigns to encourage business participation and public recognition of the certification as a reliable indicator of sustainability.
5. Support funding for on-the-ground professionals specializing in technical assistance for small- and medium-sized businesses seeking green business certification and for public involvement to recruit additional participating businesses.
6. Provide for collaboration between the programs and state agencies, as specified.
7. Maintain and enhance a common network database integrating measurable pollution reductions and cost savings to businesses seeking green business certification through the local government programs, as specified.
8. Position certified green businesses as supply chain partners for state, national, and international companies seeking green supply chain partners.
9. Solicit participation of additional local government programs and facilitate the startup of new local programs, including extra support and a specific prioritized focus on assistance for disadvantaged communities that lack local funding and resources to develop a program.
10. Provide funding to local government programs for staff support and direct rebates and grants to certified green businesses.

FISCAL EFFECT:

1. Unknown cost pressures, likely in the annual range of hundreds of thousands to low millions of dollars, to provide direct rebates and grants to certified green businesses (GF or special fund).
2. Ongoing annual CalEPA staffing costs of approximately $600,000 (3 PY) and $535,000 in contract funds to work with Green Business Network and other entities (GF or special fund.)

COMMENTS:

Background and Purpose. The CGBN is a nonprofit network of local programs operated by cities and counties throughout California. The goals of CGBN's incentive and assistance programs are to help local businesses conserve energy and water, minimize waste, prevent pollution, and shrink their carbon footprints. Businesses that apply receive assistance from participating public agencies. CGBN is funded by grass-roots contributions from local government and utility partners. CGBN is also funded in part by the United States Environmental Protection Agency under an assistance agreement with the California Air Resource Board (ARB).

AB 913 (Feuer), Chapter 578, Statutes of 2011, established the CGBP within DTSC to support the CGBN. After the passage of AB 913, CGBP received in-kind staff support and funding from DTSC equaling approximately $90,000 annually. However, in 2012, due to state budget cuts, the funding and support for the program was eliminated through SB 1018 (Committee on Budget and Fiscal Review), Chapter 39, Statutes of 2012.

The CGBP has been seeking new state funding to continue the program. Membership funding from local green business programs has kept the program afloat, allowing maintenance of a statewide web-based tracking system. Recently, the program received a small amount of federal funding to serve as a platform for other states to launch green business programs. The 2017-18 Budget Act appropriated $1 million to CalEPA for the CGBP.

This bill aligns statute with the budget action by moving state support for the CGBN through the CGBP to CalEPA and expands the program to include medium-sized businesses.

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

Date of Hearing: April 23, 2018

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Al Muratsuchi, Acting Chair

ABPCA Bill Id:AB 2211 (

Author:Limón) – As Amended Ver:April 2, 2018

SUBJECT: California Green Business Program

SUMMARY: Repeals the Green Business Program within the Department of Toxic Substances Control (DTSC) and establishes the California Green Business Program (CGBP) within the California Environmental Protection Agency (CalEPA) to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices.

EXISTING LAW requires DTSC to develop a California Green Business Program (CGBP) and specifies requirements for the program:

1. Provide support and assistance to programs operated by local governments that would voluntarily certify small businesses that adopt environmentally preferable business practices.
2. Collaborate with relevant state agencies that operate small business efficiency and economic development programs, including, but not limited to, the Department of Resources Recycling and Recovery, the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the Department of Water Resources.
3. Provide support and assistance to local government programs.
   

THIS BILL:

1. Establishes the CGBP within CalEPA, administered by the Secretary for Environmental Protection, to provide support and assistance to green business certification programs operated by local governments that certify small- and medium-sized businesses that voluntarily adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, reduced greenhouse gas (GHG) emissions, water conservation, and waste reduction.
2. Specifies that the CGBP may do any of the following:
   1. Assist local governments in the development and implementation of guidelines and structures that establish and promote a level of consistency among green business certification programs (programs) throughout the state.
   2. Promote the early adoption of environmental initiatives at participating businesses and provide a publicly recognizable incentive for participating businesses to make their operations more sustainable and profitable.
   3. Develop technical guidance on GHG emission reduction measures, conduct industry studies and pilot projects, establish metrics, and provide policy coordination for the programs.
   4. Develop tools, templates, and outreach campaigns on behalf of the programs to encourage business participation and public recognition of the certification as a reliable indicator of sustainability.
   5. Support funding for on-the-ground professionals specializing in technical assistance for small- and medium-sized businesses seeking green business certification and for public involvement to recruit additional participating businesses.
   6. Provide for collaboration between the programs and state agencies that operate small business efficiency and economic development programs, as specified. The nature of the collaboration may include attempting to meet and measure state-mandated conservation efforts at small- and medium-sized businesses; developing methods to collect, measure, and report on environmental outcomes; and, using green businesses as the early adopters of environmental initiatives that lead to GHG emissions reductions.
   7. Maintain and enhance a common network database integrating measurable pollution reductions and cost savings to businesses seeking green business certification through the local government programs and add participating businesses that receive the certification to a directory of certified green businesses that would be used to promote the certified businesses both to other businesses that are seeking to green their supply chain and to consumers seeking to support sustainable businesses.
   8. Position certified green businesses as supply chain partners for state, national, and international companies seeking green supply chain partners.
   9. Solicit the participation of additional local government programs and facilitate the startup of new local programs, including extra support and a specific prioritized focus on assistance for disadvantaged communities that lack local funding and resources to develop a program.
   10. Provide funding to local government program for staff support and provide additional resources and funding for direct rebates and grants to certified green businesses.
3. Repeals DTSC's green business certification program for small businesses.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's statement:

Promoting the regulations and best practices put in place by California's environmental agencies, the California Green Business Network (CGBN) is a cost-effective vehicle for California's environmental agencies to meet their air quality, water management, and wate reduction goals.

AB 913 (Feuer) [Chapter 578, Statutes of 2011] established the CGBN under DTSC in 2011 to be supported by staff and funding. Yet shortly thereafter, in response to economic downturn, DTSC cut resource support, and as a result, DTSC no longer supports or works with the CGBN.

Despite this, the ARB, and more recently CalEPA, have provided resources and support to the CGBN. Under these partners, the CGBN has developed a strategic vision to serve 40,000 California small and medium businesses by 2040.

1. California Green Business Network. The CGBN is a nonprofit network of local programs operated by cities and counties throughout California. The goals of CGBN's incentive and assistance programs are to help local businesses conserve energy and water, minimize waste, prevent pollution, and shrink their carbon footprints. Businesses that apply receive assistance from participating public agencies. CGBN is funded by grass-roots contributions from local government and utility partners. CGBN is also funded in part by the United States Environmental Protection Agency under an assistance agreement with ARB.
   
   CGBN has certified over 3,000 businesses. Green business programs currently exist in 14 counties and 12 cities throughout California. According to CGBN, these businesses have reduced GHG emissions by over 800,000 metric tons, conserved enough energy to power 25,000 homes for one year, diverted over 400,000 metric tons of solid waste, saved over 124 million gallons of water, and eliminated over 28,000 gallons of hazardous waste.
2. California Green Business Program. In 2011, AB 913 established the CGBP within DTSC to support the CGBN. After the passage of AB 913, CGBP received in-kind staff support and funding from DTSC equaling approximately $90,000 annually. However, in 2012, due to state budget cuts, the funding and support for the program was eliminated through SB 1018 (Committee on Budget and Fiscal Review), Chapter 39, Statutes of 2012. The CGBP has been seeking new state funding to continue the program. Membership funding from local green business programs has kept the program afloat, allowing maintenance of a statewide web-based tracking system. Recently, it received a small amount of federal funding to serve as a platform for other states to launch green business programs. The 2017-18 Budget Act appropriated $1 million to CalEPA for the CGBP. This bill would align statute with the budget action by moving state support for the CGBN through the CGBP to CalEPA and expands the program to include medium-sized businesses.
3. Suggested amendment. This bill does not include assistance to green businesses for pollution prevention. The committee may wish to amend the bill to clarify that the CGBP and related technical assistance include pollution prevention.

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of Local Conservation Corps

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /