Existing law creates the Transformative Climate Communities Program, which is administered by the Strategic Growth Council. Existing law requires the council to award competitive grants to specified eligible entities for the development and implementation of neighborhood-level transformative climate community plans that include greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities, as defined. Existing law requires the California Environmental Protection Agency to provide assistance in performing outreach to disadvantaged communities and assessing the environmental justice benefits of project awards.

This bill would require the council council, among other things, to establish no less than 10 regional climate assistance centers, as specified. specified, and award competitive grants to eligible entities through an application process, as specified. The bill would require the climate assistance centers to provide to target user groups technical assistance in applying for moneys, provide to target user groups assistance and training in project management and implementation, and work with local organizations to formulate policy ideas policies and programming that accomplish specified goals. The bill would authorize the council and climate assistance centers to solicit and accept nonstate money. The bill would require the council, among other things, to convene an annual statewide summit for climate assistance center staff and grant recipients, as specified. The bill would require the council and the State Air Resources Board to make a specified report to the Legislature.

Existing law creates the Transformative Climate Communities Program, which is administered by the Strategic Growth Council. Existing law requires the council to award competitive grants to specified eligible entities for the development and implementation of neighborhood-level transformative climate community plans that include greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities, as defined. Existing law requires the California Environmental Protection Agency to provide assistance in performing outreach to disadvantaged communities and assessing the environmental justice benefits of project awards.

This bill would require the council to establish no less than 10 regional climate assistance centers, equitably distributed across urban and rural areas of the state, to build the capacity of local community organizations, municipalities, and small businesses from disadvantaged communities to participate in state climate investment programs, as specified. The bill would require the council to allocate available moneys to community-based and nonprofit organizations to engage with climate assistance centers and conduct outreach in disadvantaged communities, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation by the council for the purposes of the climate assistance centers. The bill would require the council to establish a state interagency working group, coordinated by the council and including specified state agency staff, to develop integrated outreach information on state climate investment programs and to coordinate outreach activities with the climate assistance centers. to provide to target user groups technical assistance in applying for moneys, provide to target user groups assistance and training in project management and implementation, and work with local organizations to formulate policy ideas that accomplish specified goals. The bill would authorize the council and climate assistance centers to solicit and accept nonstate money. The bill would require the council, among other things, to convene an annual statewide summit for climate assistance center staff and grant recipients, as specified. The bill would require the council and the state board State Air Resources Board to make a specified report to the Legislature.

Existing law creates the Transformative Climate Communities Program, which is administered by the Strategic Growth Council. Existing law requires the council to award competitive grants to specified eligible entities for the development and implementation of neighborhood-level transformative climate community plans that include greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities, as defined. Existing law requires the California Environmental Protection Agency to provide assistance in performing outreach to disadvantaged communities and assessing the environmental justice benefits of project awards.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of 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.

This bill would require the council to establish no less than 10 regional climate assistance centers, equitably distributed across urban and rural areas of the state, to build the capacity of local community organizations, municipalities, and small businesses from disadvantaged communities to participate in state climate investment programs, as specified. The bill would require the council to allocate available moneys to community-based and nonprofit organizations to engage with climate assistance centers and conduct outreach in disadvantaged communities, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation by the council for the purposes of the climate assistance centers. The bill would require the council to establish a state interagency working group, coordinated by the council and including specified state agency staff, to develop integrated outreach information on state climate investment programs and to coordinate outreach activities with the climate assistance centers. The bill would require the council and the state board to make a specified report to the Legislature.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 263 (Leyva) - Climate Assistance Centers

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

Bill Summary:

SB 263 requires the Strategic Growth Council (SGC) to establish at least 10, equitably distributed regional assistance centers (centers) throughout California, to provide technical assistance to community organizations, municipalities, and small businesses from disadvantaged communities.

Fiscal Impact:

• Unknown, likely in the several millions of dollars annually (cost of implementation or other special fund), for expenses necessary to establish and maintain regional climate assistance centers. (See staff comments)

Background:

The California Global Warming Solutions Act of 2006 (referred to as AB 32) requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level, to approve a statewide GHG emissions limit equivalent to that level that will be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. ARB is authorized to include the use of market-based mechanisms to comply with the regulations. Under this authority, the ARB initiated the cap-and-trade program. All monies, except for fines and penalties, collected pursuant to the cap-and-trade program are deposited in the Greenhouse Gas Reduction Fund (GGRF). Existing law requires that the GGRF only be used to facilitate the achievement of reductions of GHG emissions consistent with AB 32 (HSC §39710 et seq.).

Cap-and-Trade Auction Revenue. Since November 2012, ARB has conducted eight California-only and nine joint California-Québec cap-and-trade auctions. To date, $3.4 billion has been appropriated by the Legislature to 12 state agencies that have distributed $1.2 billion to projects that have been completed or are under way.

Disadvantaged Communities. SB 535 (de León, Chapter 830, Statutes of 2012) requires the Department of Finance, in the investment plan, to allocate at least 25% of available moneys in the GGRF to projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities.

To meet the SB 535 mandate, the Office of Environmental Health Hazard Assessment, under the California Environmental Protection Agency’s (CalEPA) guidance, developed a tool (termed CalEnviroScreen) to assess and rank census tracts across the state that are disproportionately affected by multiple types of pollution and areas with vulnerable populations. CalEPA has designated 25% of census tracts in California as disadvantaged communities for the purpose of investing cap-and-trade proceeds.

Budget allocations. SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) established a long-term cap-and-trade expenditure plan by continuously appropriating portions of the funds for designated programs or purposes. The legislation appropriates 25% for the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to the Transit and Intercity Rail Capital Program, and 5% for low-carbon transit operations. The remaining 40% is available for annual appropriation by the Legislature.

The Governor’s 2017-18 proposed budget proposes the following $2.2 billion expenditure plan: (1) $900 million continuously appropriated for state transit assistance ($75 million), transit and intercity rail ($150 million), the Sustainable Communities Strategy ($300 million), and the state’s high-speed rail project ($375 million), and; (2) $1.3 billion in discretionary funding for a variety of projects. This includes $500 million for the Governor’s transportation package and $363 for the Air Resources Board’s Low Carbon Transportation Program, as well as $392 million for a variety of other greenhouse gas reducing programs.

Proposed Law:

This bill:

1. Makes Findings and declarations.
2. Defines terms for the purposes of the bill.
3. Requires the SGC to establish no less than 10 regional centers. One in each northern California, southern California, and the San Joaquin Valley must be established no later than January 1, 2020; the remaining centers must be equitably distributed across urban and rural areas of the state no later than January 1, 2023.
4. Requires the SGC to do all of the following:
   1. Develop a policy for siting the centers, and post the draft policy on its Internet Web site.
   2. Hold at least one public hearing in the region in which the center will be located before adopting the site.
   3. Conduct outreach and provide direct technical assistance to the centers and the public in order to identify relevant state funding programs, develop eligible activities, and prepare applications.
   4. Promote the effective alignment and streamlining of state climate investment programs for low-income customers and disadvantaged communities.
   5. Identify potential matching funds from federal, state, and local agencies.
   6. Award competitive grants to eligible entities to staff the regional centers and ensure compliance.
5. Requires that an eligible entity be a multistakeholder collaborative of community-based organizations, labor groups, local agencies, small businesses, and other stakeholders, and requires it to include, at a minimum, a combination of four or more specified types of organizations.
6. Authorizes the SGC and the centers to solicit and accept nonstate money.
7. Specifies that the centers must provide technical assistance in applying for moneys, provide assistance and training in project management and implementation for the projects funded, work with local organizations to formulate policies and programming to meet specified program goals, and seek scientific and technical support from federal, state, and local sources.
8. Requires the SGC and the ARB to develop performance measures for activities and, on or before January 1, 2022, and annually thereafter, to report to the Legislature on performance measure.

Related Legislation:

SB 398 (Leyva, 2015) would have established the Green Assistance Program at CalEPA to accomplish many of the same goals as this will, including providing technical support to small businesses, nonprofits, and disadvantaged communities for the purpose of applying for GGRF moneys. SB 398 died in the Assembly Appropriations Committee.

AB 2293 (Garcia, 2016) would have would have established the Green Assistance Program at CalEPA to provide technical support to small businesses and nonprofits for the purpose of applying for GGRF moneys. AB 2293 died in the Assembly Appropriations Committee.

AB 1179 (Rendon) would have required ARB to prepare and post on its Internet Web site a report on the funded projects that provide benefits to, or are located within, disadvantaged communities. AB 1179 died in the Assembly Appropriations Committee.

Staff Comments:

This bill intends to create regionally-focused, and run, centers that aid rural and disadvantaged communities in the one-time and ongoing technical assistance necessary to apply for and effectively implement GGRF funded programs. The author contends that, without these centers, certain localities are unable to participate in GGRF programs.

While consistent with the state’s goal to expend a significant portion of GGRF funds in disadvantaged communities, this bill creates a significant expense, which will depend upon, among other things, the number of centers, staff needed per center, space that must be leased, and existing expertise and infrastructure that may be leveraged. The bill mandates a minimum of 10 centers; however, it is unclear whether this many will be necessary or sustainable. The author and the committee may wish to consider amending the bill to require the SGC to determine the number of centers necessary to ensure that the bill’s intent is achieved in the most cost-efficient manner.

-- END --

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Robert Hertzberg, Chair

2017 - 2018 Regular

Bill No: SB 263 Hearing Date: April 25, 2017

Subject: Climate Assistance Centers

BACKGROUND AND EXISTING LAW

Existing law:

1. Establishes the Strategic Growth Council (SGC) as a multi-agency council with wide-ranging responsibilities to, among other things, coordinate policy and investments that respond to climate change. The relevant statute is Public Resources Code section 75121.
2. Assigns to the SGC the administration of the Transformative Climate Communities Program which is funded with revenues generated by AB 32, the California Global Warming Solutions Act of 2006.
3. Requires the SGC to award competitive grants to specified eligible entities for the development and implementation of neighborhood-level transformative climate community plans that include greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities, as defined.
4. Requires the California Environmental Protection Agency to provide assistance in performing outreach to disadvantaged communities and assessing the environmental justice benefits of project awards.

PROPOSED LAW

1. Makes findings and declarations about the need for, and current lack of, help for small businesses, community-based nonprofits, and other eligible entities in disadvantaged communities to gain access to Greenhouse Gas Reduction Fund (GGRF) moneys.
   
2. Requires the SGC to establish at least ten, equitably distributed regional assistance centers throughout California. A northern, central, and southern center would be established by January 1, 2020. The remaining seven would be established by January 1, 2023 based on a policy developed by the SGC. At least one public meeting would be held to solicit comments before adopting the siting policy. The policy would also be posted for at least 30 days prior to adoption, and SGC is required to respond to all public comments.
   

1. Requires the regional centers to provide technical assistance so that community organizations, municipalities, and small businesses from disadvantaged communities increase their participation in programs funded with GGRF and other moneys.
   
2. Requires regional centers to provide assistance and training in implementing the projects for which it provides technical assistance in the application process.
   
3. Requires, by the end of 2021, that the SGC host an annual summit for the regional centers.
4. Requires the Air Resources Board and the SGC to provide annual reports to the Legislature beginning January 1, 2022, on the effectiveness of the regional centers in terms of increasing participation of eligible entities from disadvantaged communities in applying for and receiving grants, surveys of each region served by a center including any recommended changes to how they operate that are made by the public.
   

ARGUMENTS IN SUPPORT

According to the author, many small disadvantaged communities suffer not only from poverty, but also from pollution including elevated levels of asthma, cancer, and other diseases. Despite the prioritization of these areas for investments from the state’s cap-and-trade program and other ongoing funding sources, many of these communities lack the technical expertise, infrastructure, and necessary experience to compete successfully for funding. Currently, the author notes that there is no single place for small communities to turn for assistance in accessing funds for mitigating the effects of poor air quality or in reducing greenhouse gases on a localized basis.

The purpose of this bill is to build locally-generated capacity in five areas: leadership development, partnership development, project development, application development, and resource development.

A coalition of environmental and environmental justice organizations is also in support and states that the bill is necessary to ensure that underserved areas in California, whether large, small, urban, or rural must have an equal opportunity and access to tools to lead on climate actions at the local level.

ARGUMENTS IN OPPOSITION

None received.

COMMENTS

1. In discussions with the author that focused mainly on the substantive provisions of the bill within the jurisdiction of this committee, (but with one eye on Appropriations as mentioned in Comment 2), the following amendments will be adopted by the author:
   1. Delete the public meeting requirement before adopting a siting policy (but retain the public hearing requirement in each region prior to siting a center),
   2. Delete the provision regarding an annual statewide summit, delete the provision regarding the Air Board’s role in developing performance measures.
   3. In addition, the author will adopt technical amendments in the findings to underscore the goals of the bill.
   4. In Section 75252 the bill will be amended to add references to public sector partnerships, and expanded leadership development and workforce training opportunities, as well as adding provisions regarding the ability to secure new funds from public and private sources and add a consultative role for associations of municipal and county governments to better inform the council of what works best with local governments.
   5. In 75256, to ensure that the regional centers better reflect a diversity of local input, the bill will be amended as follows:

The Council shall award competitive grants to eligible entities through an application process to establish regional centers and ensure compliance with section 75252. To be eligible, an entity shall be a multi-stakeholder collaborative of community-based organizations, labor groups, local agencies, small businesses, and other stakeholders, as appropriate. An eligible entity shall include, at a minimum, a combination of four or more of the following:

1. A community-based organization.
2. A nonprofit organization.
3. A faith-based organization.
4. A coalition of nonprofit organizations.
5. A community development finance institution.
6. A community development corporation.
7. A small business.
8. A local agency.
9. A local, statewide, or national technical assistance provider.
   1. In sections 75256 and 75260 there are clarifying amendments that add a provision for the council to focus on alignment and streamlining of all state competitive grant programs and to add a provision that includes natural resources in the list of programs that will be included. In the latter section, a reporting requirement is added.
10. The author is undoubtedly aware that several similar bills have been unsuccessful in recent years, largely because of cost issues.

SB 398 (Leyva, 2015) would have established the Green Assistance Program at CalEPA to accomplish many of the same goals as this will, including providing technical support to small businesses, nonprofits, and disadvantaged communities for the purpose of applying for GGRF moneys. SB 398 died in the Assembly Appropriations Committee.

AB 2293 (Garcia, 2016) would have established the Green Assistance Program at CalEPA to provide technical support to small businesses and nonprofits for the purpose of applying for GGRF moneys. AB 2293 died in the Assembly Appropriations Committee.

AB 156 (Perea, 2015) would have required the GGRF Investment Plan to allocate technical assistance funds to the ARB for the purposes of establishing a technical assistance program for eligible applicants assisting disadvantaged communities and other communities as specified. AB 156 was subsequently amended in the Senate Rules Committee to deal with ammunition and ultimately died on the Senate Inactive File.

AB 1179 (Rendon) would have required ARB to prepare and post on its Internet Web site a report on the funded projects that provide benefits to, or are located within, disadvantaged communities. AB 1179 died in the Assembly Appropriations Committee.

SUGGESTED AMENDMENTS

AMENDMENT 1

In Section 75252 (b) (1), delete “and hold at least one public meeting to solicit public input before adopting the policy” and in (b)(3) delete entirety.

AMENDMENT 2

Several amendments related to 75252:

In 75252 (d) (3), add “policies and programming” after “formulate.”

In 75252 (d)(3) (A) add “public” before and, and add “partnerships and” before engagement.

In 75252(d)(3), add a new (F): Create and secure new funding from public and private sources.”

In 75252 (d)(4) add, at end: “including but not limited to associations of municipal and county governments.”

In 75252 (e), add provision: To support the goals of this part, the council and the centers may solicit and accept nonstate money, including, but not limited to, philantrophic donations.”

AMENDMENT 3

Add amendment identified in comment (1)(e).

AMENDMENT 4

In 75256 (b), add “alignment and streamlining of all” before state, and add “natural resources” after “resilience.”

AMENDMENT 5

Delete 75256(d).

AMENDMENT 6

In 75260, require reporting on or before January 1, 2022, and annually thereafter and in (C) (3), delete “due to the centers.”

SUPPORT

350 Bay Area

American Lung Association in California

Amigos de los Rios

Arroyos & Foothills Conservancy

Asian Pacific Environmental Network

Audubon California

Bike SGV

CalBike

California Association of Local Conservation Corps

California League of Conservation Voters

Central Coast Energy Services

Central Valley Air Quality Coalition

Coalition for Clean Air

COFEM

Community Water Center

East Yard Communities for Environmental Justice

Environmental Defense Fund

Fossil Free California

Fresno Economic Opportunities Commission

Friends Committee on Legislation of California

From Lot to Spot

Greenlining Institute

GRID Alternatives

LA County Bike Coalition

LA Neighborhood Land Trust

Leadership Counsel for Justice and Accountability

Local Government Commission

Los Angeles Neighborhood Initiative

Los Cerritos Wetlands Land Trust

Move LA

National Parks Conservation Association

Pacific Forest Trust

Pacoima Beautiful

Public Advocates

Safe Routes to School National Partnership

San Gabriel Mountains Forever

Scope

Sierra Business Council

The Nature Conservancy

The Watershed Project

Transform

Trust for Public Land

Valley Vision

Voices for Progress Education Fund

Wholly H2O

OPPOSITION

None Received

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: SB 263

SUBJECT: Climate Assistance Centers

ANALYSIS:

Existing law:

1. Under the California Global Warming Solutions Act of 2006 (also known as AB 32), requires the California Air Resources Board (ARB) to 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, and to adopt GHG emissions reductions measures by regulation. ARB is authorized to include the use of market-based mechanisms to comply with these regulations. (Health and Safety Code (HSC) §38500 et seq.)
   
2. Further requires ARB to ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030. (HSC §38566)
   
3. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund. (Government Code (GOV) §16428.8)
4. Prohibits the state from approving allocations for a measure or program using GGRF moneys except after determining that the use of those moneys furthers the regulatory purposes of AB 32, and requires moneys from the GGRF be used to facilitate the achievement of reductions of GHG emissions in California. (HSC §39712)
   
5. Requires the GGRF investment plan to allocate a minimum of 25% of the funds to projects that benefit disadvantaged communities and to allocate 10% of the funds to projects located within disadvantaged communities. (HSC §39713)
   
6. Requires the ARB, in consultation with the California Environmental Protection Agency (CalEPA), to develop funding guidelines for administering agencies receiving allocations of GGRF funds that include a component for how agencies should maximize benefits to disadvantaged communities. (HSC §39715)
   
7. Establishes the Strategic Growth Council (SGC). (PRC §75121)
   
8. Defines a disadvantaged community as areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation; and as areas with concentrations of people that are of low income, high unemployment, low levels of homeownership, high rent burden, sensitive populations, or low levels of educational attainment. (HSC §39711)
   
9. Defines disadvantaged community as a community with a median household income less than 80% of the statewide average. (PRC §75005).
   
10. Establishes the Active Transportation Program for the purpose of encouraging increased use of active modes of transportation, such as biking and walking. (Streets and Highways Code §2380 et seq.)
    
11. Establishes the California Farmland Conservancy Program to accomplish, among other things, voluntary long-term private stewardship of agricultural lands by offering landowners financial incentives and improvements to enhance long-term sustainable agricultural uses. (PRC §10200 et seq.)
    
12. Defines, with certain exceptions, “Persons and families of low or moderate income” as families whose income does not exceed 120 percent of area median income, adjusted for family size by the department in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. (HSC §50093)
    
13. Establishes a process for reports from state and local agencies to be submitted to the Legislature. (GOV §9795)
    

This bill:

1. Makes findings and declarations about the need for, and current lack of, help for small businesses, community-based nonprofits, and other eligible entities in disadvantaged communities to gain access to GGRF moneys.
   
2. Requires the SGC to establish at least ten, equitably distributed regional assistance centers throughout California.
   
3. Establishes a policy and process for siting regional assistance centers.
   
4. Requires the regional centers to provide technical assistance so that community organizations, municipalities, and small businesses from disadvantaged communities increase their participation in programs funded with GGRF and other moneys.
   
5. Requires regional centers to provide assistance and training in implementing the projects for which it provides technical assistance in the application process.
   
6. Requires, by the end of 2021, that the SGC host an annual summit for the regional centers.
   
7. Requires, with specifications, the ARB to provide annual reports to the Legislature beginning January 1, 2022, on the effectiveness of the regional centers.
   

Background

1. Cap-and-Trade Auction Revenue.
   
   Since November 2012, ARB has conducted eight California-only and nine joint California-Québec cap-and-trade auctions. To date, $3.4 billion has been appropriated by the Legislature to12 state agencies that have distributed $1.2 billion to projects that have been completed or are under way.
   
   State law specifies that the auction revenues must be used to facilitate the achievement of GHG emissions reductions and outlines various categories of allowable expenditures. Statute further requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop a three-year investment plan for the auction proceeds, which are deposited in the GGRF. ARB is required to develop guidance for administering agencies on reporting and quantifying methodologies for programs and projects funded through the GGRF to ensure the investments further the regulatory purposes of AB 32.
   
2. Disadvantaged Communities.
   
   SB 535 (de León, Chapter 830, Statutes of 2012) requires the Department of Finance, in the investment plan, to allocate at least 25% of available moneys in the GGRF to projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities.
   
   To meet the SB 535 mandate, the Office of Environmental Health Hazard Assessment (OEHHA), under the California Environmental Protection Agency’s (CalEPA) guidance, developed a tool (termed CalEnviroScreen) to assess and rank census tracts across the state that are disproportionately affected by multiple types of pollution and areas with vulnerable populations. CalEPA has designated 25% of census tracts in California as disadvantaged communities for the purpose of investing cap-and-trade proceeds.
   
   Additionally, SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) requires ARB to develop guidelines on maximizing benefits for disadvantaged communities by agencies administering GGRF funds.
   
   AB 1550 (Gomez, Chapter 369, Statutes of 2016) requires a minimum of 25% of GGRF moneys be spent on projects located within and benefiting disadvantaged communities and an additional minimum of 10% of GGRF moneys be spent on projects that benefit low-income households or are within, and benefit low-income communities.
   
3. Legal consideration of cap-and-trade auction revenues.
   
   The 2012-13 Budget analysis of cap-and-trade auction revenue by the Legislative Analyst’s Office noted that, based on an opinion from the Office of Legislative Counsel, the auction revenues should be considered “mitigation” fee revenues, subject to the “Sinclair Nexus Test.” This test requires that a clear nexus must exist between an activity for which a mitigation fee is used and the adverse effects related to the activity on which that fee is levied. The LAO concluded, based on the opinion, that in order for their use to be valid as mitigation fees, revenues from the cap-and-trade auction must be used to mitigate GHG emissions or the harms caused by GHG emissions.
   
   In 2012, the California Chamber of Commerce filed a lawsuit against the ARB claiming that cap-and-trade auction revenues constitute illegal tax revenue. In November 2013, the superior court ruling declined to hold the auction a tax, concluding that it is more akin to a regulatory fee. In February of 2014, the plaintiffs filed an appeal with the 3rd District Court of Appeal in Sacramento. Arguments were heard before the Appellate Court in January of 2017. A decision is expected in late April of 2017.
   
4. Budget allocations.
   
   SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) established a long-term cap-and-trade expenditure plan by continuously appropriating portions of the funds for designated programs or purposes. The legislation appropriates 25% for the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to the Transit and Intercity Rail Capital Program, and 5% for low-carbon transit operations. The remaining 40% is available for annual appropriation by the Legislature.
   
   The Governor’s 2017-18 proposed budget proposes the following $2.2 billion expenditure plan: (1) $900 million continuously appropriated for state transit assistance ($75 million), transit and intercity rail ($150 million), the Sustainable Communities Strategy ($300 million), and the state’s high-speed rail project ($375 million), and; (2) $1.3 billion in discretionary funding for a variety of projects. This includes $500 million for the Governor’s transportation package and $363 for the Air Resources Board’s Low Carbon Transportation Program, as well as $392 million for a variety of other greenhouse gas reducing programs.
   
   The Governor’s 2017-18 proposed budget makes the aforementioned funding contingent on the Legislature confirming ARB’s authority to administer cap-and-trade auctions beyond 2020 with a two-thirds vote.
   

Comments

1. Purpose of Bill.
   
   According to the author, “many of our state’s most polluted areas are small disadvantaged communities – areas with higher rates of poverty and elevated levels of asthma and cancer. California has prioritized climate investments for communities such as these; unfortunately, they often lack the technical expertise, infrastructure, partnerships, resources, and implementation experience to compete for funding. Currently, there is no single place for small communities and businesses to turn to for assistance in accessing funds for mitigating the impacts of poor air quality.
   
   “SB 263 establishes the Community Climate Assistance Program to build capacity for local municipalities and support technical assistance and capacity building in five areas: leadership development, partnership development, project development, application development and resource development. Additionally, the program establishes Outreach Coordinators as liaisons to regional Climate Assistance Centers. In order for the state to meet its climate goals and commitment to disadvantaged communities, every community in California must have an equal opportunity and access to tools to meet our state greenhouse gas emission reduction goals. SB 263 is critical to meeting these goals.”
   
2. The Need for Assistance.
   
   Each of the programs administering GGRF moneys have separate guidelines and grant proposal request documents on their respective websites. Eligibility criteria and application processes vary, as do recommendations about working with the administering agency to develop proposals or applications. For those small organizations and disadvantaged communities lacking experience in this area, assistance through regional centers may very well help them successfully apply for and utilize GGRF and other state moneys.
   
3. Other Options.
   
   Some programs being funded with GGRF moneys already provide some level of technical assistance and outreach. Certainly that assistance and outreach could be expanded and improved.
   
   As this bill moves forward, the author may wish to consider whether regional centers are the most cost- and time-effective way to get money into the communities this bill is attempting to address.
   

Related/Prior Legislation

SB 398 (Leyva, 2015) would have established the Green Assistance Program at CalEPA to accomplish many of the same goals as this will, including providing technical support to small businesses, nonprofits, and disadvantaged communities for the purpose of applying for GGRF moneys. SB 398 died in the Assembly Appropriations Committee.

AB 2293 (Garcia, 2016) would have would have established the Green Assistance Program at CalEPA to provide technical support to small businesses and nonprofits for the purpose of applying for GGRF moneys. AB 2293 died in the Assembly Appropriations Committee.

AB 156 (Perea, 2015) would have required the GGRF Investment Plan to allocate technical assistance funds to the ARB for the purposes of establishing a technical assistance program for eligible applicants assisting disadvantaged communities and other communities as specified. AB 156 was subsequently amended in the Senate Rules Committee to deal with ammunition and ultimately died on the Senate Inactive File.

AB 1179 (Rendon) would have required ARB to prepare and post on its Internet Web site a report on the funded projects that provide benefits to, or are located within, disadvantaged communities. AB 1179 died in the Assembly Appropriations Committee.

DOUBLE REFERRAL:

If this measure is approved by the Senate Environmental Quality Committee, the do pass motion must include the action to re-refer the bill to the Senate Natural Resources and Water Committee.

SOURCE:

Trust for Public Land

SUPPORT:

350 Bay Area

American Lung Association in California

Amigos de los Rios

Arroyos & Foothills Conservancy

Asian Pacific Environmental Network

Audubon California

BikeSGV

CalBike

California Association of Local Conservation Corps

California League of Conservation Voters

Central Coast Energy Services

Central Valley Air Quality Coalition

Coalition for Clean Air

COFEM

Community Water Center

East Yard Communities for Environmental Justice

Fossil Free California

Fresno Economic Opportunities Commission

Greenlining Institute

LA County Bike Coalition

LA Neighborhood Land Trust

Leadership Counsel for Justice and Accountability

Local Government Commission

Los Angeles Neighborhood Initiative

Los Cerritos Wetlands Land Trust

Move LA

National Parks Conservation Association

Pacoima Beautiful

Public Advocates

Safe Routes to School National Partnership

San Gabriel Mountains Forever

Scope

Sierra Business Council

The Nature Conservancy

The Watershed Project

Transform

Valley Vision

Voices for Progress Education Fund

Wholly H2O

OPPOSITION:

None received

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