CCI Legislative Guidance
California Climate Investments are driven by a suite of legislation that establishes, modifies, and updates the statutory requirements for administering appropriations from the Greenhouse Gas Reduction Fund (GGRF). Assembly Bill 32 (AB 32), the California Global Warming Solutions Act of 2006, is the cornerstone of a suite of legislation that has created a comprehensive, multi-year strategy to reduce greenhouse gas (GHG) emissions in California.
Legislation influences California Climate Investments in a variety of ways, including:
- How auction proceeds are deposited in the GGRF and used to fund California Climate Investments;
- Requirements for expenditures from the GGRF;
- Investment minimums for priority populations;
- How much money is appropriated from the GGRF for various programs through budget bills;
- Individual California Climate Investments program establishment and requirements; and
- Eligibility requirements for applicants.
Bill summaries by year the legislation was enacted
Statutes of 2012
AB 1464 (Blumenfield, Chapter 21, Statutes of 2012)
- Authorizes a loan from the GGRF to the General Fund, without an appropriation.
AB 1532 (Pérez, Chapter 807, Statutes of 2012)
- Requires that Cap-and-Trade auction proceeds be used to facilitate the achievement of GHG emission reductions:
- Maximize economic, environmental, and public health benefits to the State;
- Foster job creation by promoting in-State GHG emissions reduction projects carried out by California workers and businesses;
- Complement efforts to improve air quality;
- Direct investment toward the most disadvantaged communities and households in the State;
- Provide opportunities for businesses, public agencies, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce GHG emissions; and
- Lessen the impacts and effects of climate change on the State’s communities, economy, and environment.
- Requires the Department of Finance, in consultation with CARB and agencies administering programs funded with Cap-and-Trade auction proceeds, to submit a three-year Investment Plan to identify opportunities for GHG emission reductions, and identify potential State investment priorities to help achieve GHG emission reduction goals, benefit disadvantaged communities and low-income communities, and provide co-benefits.
- Requires the Department of Finance to submit an Annual Report to the Legislature each March on the status and outcomes of projects funded from the GGRF.
SB 535 (De León, Chapter 830, Statutes of 2012)
- Requires the California Environmental Protection Agency to identify disadvantaged communities for investment opportunities.
- Requires CARB to provide guidance on maximizing benefits to the identified disadvantaged communities.
- Requires that a minimum of 25 percent of the total investments provide benefit to disadvantaged communities; of that, a minimum of 10 percent are required to be located within disadvantaged communities.
SB 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012)
- Establishes the GGRF as the account to receive Cap-and-Trade auction proceeds.
- Requires State agencies that receive appropriations from the GGRF to prepare an Expenditure Record to describe how the appropriated funds will reduce GHG emissions and further the purposes of AB 32.
Statutes of 2013
AB 110 (Committee on Budget, Chapter 20, Statutes of 2013)
- Appropriated funds for program administration and a loan to the general fund as authorized by AB 1464.
Statutes of 2014
SB 103 (Committee on Budget and Fiscal Review, Chapter 2, Statutes of 2014)
- Amends the Budget Act of 2013 to appropriate approximately $40 million for investments in water and energy efficiency.
SB 852 (Leno, Chapter 25, Statutes of 2014)
- Appropriates over $800 million from the GGRF to multiple agencies for investments in a variety of programs and project types.
SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014)
- Requires CARB to develop guidance on investments for disadvantaged communities, Expenditure Record preparation, reporting, tracking and quantification approaches, and other guidance to be used by all agencies that receive appropriations from the GGRF.
- Establishes continuous appropriations totaling 60 percent of the GGRF monies beginning in FY 2015-16 to the following agencies and programs:
- 25 percent to the High-Speed Rail Project administered by the CHSRA;
- 20 percent to the AHSC Program administered by the OPR, SGC, and its member agencies; and
- 10 percent to TIRCP administered by the CalSTA;
- 5 percent to LCTOP administered by Caltrans.
SB 1204 (Lara, Chapter 524, Statutes of 2014)
- Establishes the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program to be administered by CARB and funded with the GGRF.
Statutes of 2015
AB 91 (Committee on Budget, Chapter 1, Statutes of 2015)
- Amends the Budget Act of 2014 to appropriate funds for investments in clean energy, energy efficiency, and waste diversion.
AB 93 (Weber, Chapter 10, Statutes of 2015)
- Appropriates over $200 million from the GGRF for low carbon transportation and energy efficiency programs, not inclusive of the continuously appropriated funds.
SB 97 (Committee on Budget and Fiscal Review, Chapter 11, Statutes of 2015)
- Amends AB 93 to repeal some expenditures for agencies that administer continuously appropriated funds.
SB 101 (Committee on Budget and Fiscal Review, Chapter 321, Statutes of 2015)
- Appropriates over $200 million from the GGRF for low carbon transportation, energy efficiency, and waste diversion projects, not inclusive of the continuously appropriated funds.
Statutes of 2016
AB 1550 (Gomez, Chapter 369, Statutes of 2016)
- Amends the existing SB 535 disadvantaged community investment minimums to require new investment minimums for low-income communities and low-income households:
- A minimum of 25 percent of the proceeds be invested in projects that are located within and benefiting individuals living in disadvantaged communities;
- An additional minimum of 5 percent be invested in projects that are located within and benefiting individuals living in low-income communities or benefiting low-income households statewide; and
- An additional minimum of 5 percent that are located within and benefiting individuals living in low-income communities, or benefiting low-income households, that are within a 1/2 mile of a disadvantaged community.
More information on priority population funding.
AB 1613 (Committee on Budget, Chapter 370, Statutes of 2016)
- Amends the Budget Act of 2016 to appropriate over $1 billion from the GGRF to administering agencies to invest in programs and projects.
AB 2722 (Burke, Chapter 371, Statutes of 2016)
- Establishes the Transformative Climate Communities (TCC) Program, administered by SGC to fund the implementation of neighborhood-level transformative climate projects that provide local economic, environmental, and health benefits to disadvantaged communities.
SB 32 (Pavley, Chapter 249, Statutes of 2016)
- Requires California to achieve a 40 percent emission reduction below 1990 levels by 2030
SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016)
- Provides administrative direction for existing programs and new programs funded with appropriations in AB 1613.
SB 1464 (De León, Chapter 679, Statutes of 2016)
- Requires that the Investment Plan:
- Assess how proposed investments interact with current State regulation, policies, and programs;
- Evaluate how proposed investments could be incorporated into existing programs; and
- Recommend metrics that would measure progress and benefits from the proposed investments.
Statutes of 2017
AB 97 (Ting, Chapter 14, Statutes of 2017)
- Appropriates funds for program administration.
AB 109 (Ting, Chapter 249, Statutes of 2017)
- Appropriates over $600 million from the GGRF to multiple agencies for investments in a variety of programs and project types.
AB 134 (Committee on Budget, Chapter 254, Statutes of 2017)
- Appropriates $900 million from the GGRF for investments in low carbon transportation, agricultural equipment, and air quality improvements in California’s most polluted communities.
AB 398 (E. Garcia, Chapter 135, Statutes of 2017)
- Reauthorizes the State’s Cap-and-Trade Program from January 1, 2021, through December 31, 2030.
- Identifies legislative priorities for allocating auction revenue proceeds, to include but not be limited to:
- Air toxic and criteria air pollutants from stationary and mobile sources;
- Low- and zero-carbon transportation alternatives;
- Sustainable agricultural practices that promote transition to clean technology, water efficiency, and improved air quality;
- Healthy forests and urban greening;
- Short-lived climate pollutants;
- Climate adaptation and resiliency; and
- Climate and clean energy research.
AB 617 (C. Garcia, Chapter 136, Statutes of 2017)
- Requires CARB to develop a statewide strategy to reduce criteria pollutants and toxic air contaminants in communities with high pollution exposure burdens through approved community emissions reduction programs developed by local air districts, in partnership with residents in the affected communities. AB 134 appropriated $255 million from the GGRF to CARB to support early action in the deployment of cleaner technologies in these communities.
- Requires CARB to establish a uniform system of annual reporting of criteria pollutants and toxic air contaminants for the existing statewide air monitoring network and expedites implementation of best available retrofit control technology in non-attainment areas.
More information on the community assistance funding.
SB 563 (Lara, Chapter 671, Statutes of 2017)
- Codifies the Woodsmoke Reduction Program to be administered by CARB, in coordination with air districts, to promote the voluntary replacement of old wood-burning stoves with cleaner and more efficient alternatives. Authorizes funds from the GGRF to be allocated for incentives offered as part of the program.