PowerPoint Presentation

Environmental Justice through Implementation of the Greenhouse Gas Reduction Fund

March 13, 2015

Colleen CallahanDeputy Director

Good morning. Im Colleen Callahan, deputy director of the Luskin Center. We are a community-oriented research centers that unites scholars with civic partners to inform policy and planning solutions in the areas of sustainability, climate, environmental health and justice.

This is a crucial moment. The State is laying the foundation for a multi-year implementation of billions of dollars to fight climate change and provide local environmental, public health and economic benefits for disadvantaged communities across California, through a wide array of investments. I would bet there is at least one investment category eligible for funding that every foundation represented here today cares about.

The take away message of my talk today will be that the Greenhouse Gas Reduction Fund is an new and unprecedented funding opportunity to advance healthier communities. But this initiative also requires a focus on many issues to help ensure we are maximizing local benefits and truly creating healthier, more sustainable and equitable communities.

The world is watching this unprecedented, complex roll-out of the Greenhouse Gas Reduction Fund. It is critical that we get it right, resulting in tangible and measurable benefits for households and communities across the state. 1How do Revenues from Cap-and-Trade get to EJ Communities?Major CA GHG EmissionsCap-and-TradeAuction RevenuesGHG Reduction Fund

State Agencies -Program Investments in 3 Main Categories

Major emitters of greenhouse gas emissions, GHGs, are required to purchase pollution permits through the Cap-and-Trade auction systems. This includes major industrial sources and electricity producers. As part of the States phased-in approach for the cap and trade program, this calendar year the transportation sector is now included under the cap. Gasoline and diesel providers must purchase allowances, adding significantly to the revenue of the GHG Reduction Fund.

The auction revenues go into the Greenhouse Gas Reduction Fund. Through the States annual budget process, the Legislature and Governor appropriate dollars from the GGRF to state agencies and their funded programs. The annual budget is affected by the Three-Year Investment Plan put forth by the Dept of Finance and the Air Resources Board, and laws like SB 535.

State agencies have been updating their policies and program level guidelines to be consistent with the laws governing the GGRF>

The major investment buckets for the GHG Reduction Fund monies are sustainable communities and clean transportation, energy efficiency and renewable energy, and natural resources and waste diversion.

2SB 535 (de Len) and AB 1532 (J. Perez)

AB 1532:Establishes a process for the Greenhouse Gas Reduction FundMandates that moneys in the GGRF be used to reduce GHGs and maximize economic, environmental, and public health benefitsSB 535:

Ensures a minimum of 25% of the investments benefit disadvantaged communities

Requires at least 10% of the investments are for projects located in disadvantaged communities

Directs CalEPA to define disadvantaged communities

SB 535 (de Len) establishes a framework to direct investments to disadvantaged communities. Requires that the California Department of Finance allocate at least 25 percent of the money in the GHG Reduction Fund to projects that provide benefits to disadvantaged communities, and to allocate at least 10 percent to projects located in these communities.This is an unprecedented set-aside. Probably the largest environmental health investment opportunity that these communities will see for decades.

AB 1532 establishes a process for the Greenhouse Gas Reduction Fund. And requires Dept of Finances and State Air Resources Board to develop a 3 year investment plan

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This is the first fiscal year of investment from the GGRF. This year the Legislature and Governor appropriated $832 million from the GHG Reduction Fund to 11 major existing state programs with a local reach. This includes $250 million for High Speed Rail, $200 million for the Low-Carbon Transportation Program and $130 million for the Affordable Housing and Sustainable Communities Program. 4 Estimated Investments to Benefit EJ Communities (2014-2015 Fiscal Year) Cleaner Freight $100 Million

Clean Energy $75 Million

Affordable Housing Near Transit $65 M.

Urban Forestry $18 M.

Public Transit and Intercity Rail $14 M.

Later this year you will make budgetary decisions related to the Greenhouse Reduction Fund. Some estimate that the State will take in between $1 billion to $2 billion into the Fund this year. But no one knows for sure yet what the auctions will generate this year and the Governors Office has but forth a budget for $1 billion. Per legislation passed in 2014, 60% of the funding is automatically allocated to programs, mainly in the sustainable communities and clean transportation investment category. This includes $150 million for transit and $200 million for the Affordable Housing and Sustainable Communities Program to support affordable housing near transit and with infrastructure for active transportation like biking and walking. Other key funded programs to benefit disadvantaged communities include the Low-Income Weatherization and Solar for All Program and as well as Cal Fires Urban Forestry Program. In a minute, Ill give examples of specific people who have benefited from these programs. 6

What Investments should Accomplish7RecommendationsEstablish a performance management approachStrategically adopt criteria and indicators to screen and score investmentsGuide project selection using metrics, thresholds and community inputAdvance data and methods for ex-ante and ex-post assessments

State agencies have started to update their program level guidelines to abide by laws like SB 535 governing the GGRF. The UCLA Luskin Center requests a performance management approach that helped inform the overarching guidelines provided to the agencies receiving monies from the Fund. Key components of a performance management approach include eligibility criteria, scoring criteria and evaluative metrics. In order to be achieved, desired outcomes must be required or strongly incentivized through the eligibility criteria and scoring indicators. Also, sub-contractors and program grantees need to know what metrics they will need to report on to track and report progress and ultimately success delvering measurable local environmental, economic, and health benefits to the communities that need the investments the most. 8Solar for Hardworking Low-Income FamiliesHomeowners in the Inland Empire: Tyrone and Jerome Saxton, twin brothers and retired U.S. Army Reservists, in Jurupa Valley, CA.

Partners: GRID Alternatives, Habitat for Humanity Riverside & Wells Fargo Volunteers.

Impact: 2 solar systems; savings of over $40,000 to homeowners; over 126 tons GHGs eliminated, equivalent to planting 3,000 trees; 20 community volunteers/job trainees trained.

Now I will quickly show 3 examples of existing programs that will receive dollars from the GGRF and how they have already benefited disadvantaged communities across California.Here are just two of over 700 low-income households in the Inland Empire of Southern California that have benefited from a low-income solar program, saving these families more than $23 million in energy costs. GRID Alternatives is a state-wide organization that will serve as a program administration for the Department of Community Services and Development Low Income Weatherization Program now funded by the GHG Reduction Fund.

9Energy Efficiency Providing Household Cost Savings and JobsThis program made a big difference in my familys lives. I am no longer afraid of the cold winter months.- Leonard Scott of Sacramento, referring to CSDs Low-Income Weatherization Program, which has weatherized 180,000 homes in 5 years.

This job has changed my life dramatically. Im able to support my family and my newborn baby.- Jonathan Chavez, trained in the IBEW Local 11 Utility Pre-Craft Program to do energy efficiency installations.

Cost Savings Weatherization services can reduce annual utility bills by 35%.

Health and Safety Low-income families are more likely to live in substandard housing that poses health and safety risks that weatherization mitigates.

Affordable Housing Weatherization supports the preservation of affordable housing.|

Employment

Cost Savings Weatherization services can reduce annual utility bills by 35%, freeing up money families can spend locally on necessities like food, transportation and medicine.

Health and Safety- Low-income families are more likely to live in substandard housing that poses health and safety risks. Weatherization mitigates exposure to byproducts of incomplete combustion from poorly maintained furnaces and appliances.10Greening Disadvantaged Communities and Creating JobsBroadway Blvd in South Los Angeles: mile with no trees, transformed with 120 trees.

Young adults from the LA Conservation Corps go to LACC's charter high school and then work for the tree planting program until they graduate.

Businesses benefit, like Franks.

ContactColleen Callahanccallahan@luskin.ucla.edu 310-267-5435

310-267-5435

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