AB 1087

Bill Subjects

Abstract

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 requires the state board to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030. The act requires the state board to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. The state board is authorized to include market-based compliance mechanisms to comply with the regulations. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations pursuant to a market-based compliance mechanism. Under existing law, the Public Utilities Commission (PUC) has regulatory authority over electrical corporations. Existing law authorizes the PUC to allocate 15% of the revenues received by the electrical corporations from that allocation of allowances for clean energy and energy efficiency projects established pursuant to statute that are administered by electrical corporations. Existing law requires the PUC to direct the balance of the revenues to be credited directly to the residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporations, as specified. Beginning with the fiscal year commencing July 1, 2022, and ending with the fiscal year ending June 30, 2027, except as provided, this bill would require the PUC to annually allocate 5% of the revenues received by the electrical corporations from that allocation of greenhouse gas allowances to the Environmental Justice Community Resilience Hubs Program, which would require each electrical corporation to award those allocated revenues to a single third-party administrator, selected by the commission, that will award competitive grants to owners of critical community institutions, meeting eligibility criteria established by the PUC, for building upgrade projects that demonstrate community engagement in all phases, demonstrate multistakeholder partnerships, reflect the geographic diversity of the state, and are installed at critical community institutions. The bill would require the PUC to select a third-party administrator by no later than March 1, 2023, and require that the program be operational and begin processing applications by no later than July 1, 2023. The bill would require that the program be jointly operated among all the participating electrical corporations and be consistent across the utility territories. The bill would require the third-party administrator ensure that program moneys from each utility are used only for projects located in the service territory of that utility from which the moneys are received and to provide technical assistance to program applicants. The bill would prohibit more than 10% of those allocated revenues from being used for administration, technical assistance, and outreach. The bill would require the PUC to establish requirements relating to hiring, wages, apprenticeship programs, and workforce standards for the program. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because a violation of a PUC action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.