AB 844
| Author: |
Timothy S. Grayson (D-014) |
| Coauthor |
Dodd (D) |
| Title: |
Empowerment Zone for the Northern Waterfront Area |
| Fiscal Committee: |
no |
|
| Urgency Clause: |
no |
|
| Introduced: |
02/17/2021 |
| Last Amend: |
05/04/2021 |
| Disposition: |
Pending |
| Location: |
Senate Business, Professions & Economic Development Committee |
| Summary: |
Authorizes establishment of a Green Empowerment Zone for the Northern Waterfront area of the Counties of Contra Costa and Solano. |
| Status: |
| 06/07/2021 |
In SENATE Committee on BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT: Not heard. |
Full Status
| 02/17/2021 |
INTRODUCED. |
| 03/18/2021 |
To ASSEMBLY Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY. |
| 03/18/2021 |
From ASSEMBLY Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY with author's amendments. |
| 03/18/2021 |
In ASSEMBLY. Read second time and amended. Re-referred to Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY. |
| 04/21/2021 |
From ASSEMBLY Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY with author's amendments. |
| 04/21/2021 |
In ASSEMBLY. Read second time and amended. Re-referred to Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY. |
| 04/27/2021 |
From ASSEMBLY Committee on JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY: Do pass as amended. To Consent Calendar. (6-0) |
| 05/04/2021 |
In ASSEMBLY. Read second time and amended. To second reading. |
| 05/05/2021 |
In ASSEMBLY. Read second time. To Consent Calendar. |
| 05/10/2021 |
In ASSEMBLY. Read third time. Passed ASSEMBLY. *****To SENATE. (74-0) |
| 05/19/2021 |
To SENATE Committees on BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT and GOVERNANCE AND FINANCE. |
| 06/07/2021 |
In SENATE Committee on BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT: Not heard. |
|
2021 CA A 844: Bill Analysis - 06/03/2021 - Senate Bus, Prof and Econ Dev Committee, Hearing Date 06/07/2021
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Richard Roth, Chair
2021 - 2022 Regular
Bill No: AB 844 Hearing Date: June 7, 2021
Author: Grayson
Version: May 4, 2021
Urgency: No Fiscal: No
Consultant: Dana Shaker
Subject: Green Empowerment Zone for the Northern Waterfront area of the
Counties of Contra Costa and Solano
NOTE:
Double-referral to Senate Governance and Finance Committee, Second
SUMMARY:
Authorizes establishment of a Green Empowerment Zone (Green EZ) for the Northern Waterfront area of the Counties of Contra Costa and Solano until January 1, 2028; tasks the Green EZ with various duties, and requires the Green EZ to report to the Legislature.
Existing law:
1) Establishes the GO-Biz within the Governor's Office for the purpose of serving as the lead state agency for economic strategy and marketing of California on issues relating to business development, private sector investment, and economic growth. (Government Code (GOV) Section ; 12096-12098.5)
2) Authorizes GO-Biz to make recommendations to the Governor and the Legislature on new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the state economic and business development goals, among other things. (GOV Section 12096.3 (b))
3) Requires the California Air Resources board (CARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and ensure statewide GHG emissions are reduced to 40% below the 1990 level by 2030, and adopt GHG emissions reductions measures by regulation. (Health and Safety Code (HSC) Section ; 38566, 38500 et seq.)
4) Requires increased the Renewables Portfolio Standard (RPS) requirement from 50 to 60 percent by 2030, and created a policy which endeavors to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045. (Public Utilities Code (PUC) Section ; 399.11 et seq., 454.53)
This bill:
1) Authorizes establishment of a Green EZ for the Northern Waterfront area of the Counties of Contra Costa and Solano until January 1, 2028.
2) States that the purpose of the Green EZ is to build upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, loan programs, workforce training programs, and private sector investment in the renewable energy sector.
3) Specifies particular cities that the Green EZ may include. Establishes that the Green EZ's Board of Directors may add additional members.
4) Establishes that the Green EZ Board of Directors will be comprised of seven stakeholder groups, including local government, large employers, state government, small business and economic development, universities, laboratories, and foundations, the largest private sector organized labor organizations, and workforce development and public and private educational entities. Establishes that every member of the United States Congress representing a city, as specified, shall be ex officio voting members of the Board of Directors. Specifies that members of the Board shall serve without compensation and procedures for handling a conflict of interest.
5) Tasks the Green EZ with various duties, including but not limited to identification of projects and programs that will best utilize public dollars and improve the economic vitality of the Northern Waterfront area of the Counties of Contra Costa and Solano in a coordinated effort to address the just transition to a clean energy economy.
6) Requires the Board make recommendations to the Governor that would improve the economic well-being of the region and the quality of life of its residents.
7) Requires the Green EZ to produce a report each year that includes recommendations for action by the Legislature and the progress of the zone, and to post the report on its internet website, as specified.
8) Makes findings and declarations as to a special statute for the Counties of Contra Costa and Solano.
COMMENTS:
1. Purpose. The Author is the Sponsor of this bill. According to the Author, "AB 844 will create the Green Empowerment Zone for the Northern Waterfront area of the Counties of Contra Costa and Solano, to prioritize access to tax incentives, grants, loan programs, workforce training programs, and private sector investment in the clean and green energy sector. The Bay Area is the second largest oil refining center on the West Coast and home to five refineries. In light of the Governor's recent executive orders, and the potential for the loss of thousands of high-paying union jobs, it is imperative that an equitable transition to clean energy be a priority for Federal, State, and local stakeholders."
2. Background.
Promise Zones and Opportunity Zones as Efforts to Increase Economic Development. In the last decade, efforts such as Promise Zones and Opportunity Zones have emerged as a way to support the country's most disadvantaged and economically-distressed geographical locations and communities. Generally speaking, Promise Zones are high-poverty areas that are eligible for various tax credits in order to create jobs and spur investment. These zones also receive governmental aid and partnership in the form of assistance to reduce crime and recidivism, as well as increase educational opportunities. There are currently 22 Promise Zones in the United States.
Originally created via the federal 2017 Tax Cuts and Jobs Acts, Opportunity Zones are economically-distressed areas where private investments may be eligible for capital gain tax incentives, under certain conditions. According to the Brookings Institute, "Opportunity Zones offer favorable capital gains treatment for taxpayers with unrealized gains who invest in designated low-income communities." Only investors with pre-existing capital gains and those who anticipate facing future capital gains taxes qualify for Opportunity Zone tax benefits. Both of these efforts are examples of programs meant to increase economic development in areas that need assistance.
California's Green Energy and Economy Efforts. California has been a leader in prioritizing green energy and a green economy. In 2006, AB 32 (Nunez, Chapter 488, Statutes of 2006) required CARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that was equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. AB 32 (Pavley, Chapter 249, Statutes of 2016) modified this goal slightly, requiring CARB to ensure statewide GHG emissions are reduced to 40% below the 1990 level by 2030. In 2018, Governor Jerry Brown signed SB 100 (De Leon, Chapter 312, Statutes of 2018), which increased the Renewables Portfolio Standard (RPS) requirement from 50 to 60 percent by 2030, and created a policy which endeavors to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045. Governor Brown also signed an Executive Order in 2018 requiring that California reduce its net output of greenhouse gases to zero by 2045. Governor Newsom has engaged in a number of climate-related efforts as well, including issuing an Executive Order requiring sales of all new passenger vehicles to be zero-emission by 2035, requiring the end of new permits for hydraulic fracturing (or "fracking") by January 2024, and requesting that CARB analyze how to phase out oil extraction in California by 2045. According to the EPA, the oil and gas sector, and refineries specifically, are some of the highest overall contributors to GHG emissions.
Contra Costa and Solano Counties, Oil Refineries, and their Economies. According to the Los Angeles County Economic Development Corporation, in 2017 the Oil and Gas Industry in California provided 152,100 direct employment jobs and 365,970 jobs in the state, which makes up about 1.6% of the state's overall employment. The Bay Area is the second largest oil refining center on the West Coast. It is home to five refineries; four of those five refineries are in Contra Costa County.
Given the state's mandates and goals to produce a clean-energy economy in the next few decades, the Author says "it is a matter of equity and economic justice that we support the growth of high-paying jobs and industry to replace the ones that are being phased out." The phasing out of industries such as coal in West Virginia without a transition plan have had a devastating effect on the state's economy in regions where the coal industry was a primary employer. For example, where the coal industry used to provide more than 100,000 jobs to West Virginians in the 1950s, it now provides less than 20,000. The region is also grappling with increased drug addiction rates. This bill is the Author's attempt to avoid a similar outcome in his district.
3. Arguments in Support. The California Professional Firefighters write in support: "Covering a number of cities throughout both Contra Costa and Solano Counties, the newly established Green Empowerment Zone would seek to encourage and prioritize investments and projects that both revitalize the economies of its local jurisdictions as well as advance important sustainability goals. The Green Empowerment Zone will be governed by a board of directors comprised of individuals representing the local government entities that have opted into the program, employers, labor groups, state agencies, and others. By bringing together a diverse coalition of experts and representatives of their communities, this board seeks to identify the projects that are best suited to the overall goals of the Green Empowerment Zone, as well as reviewing policies and legislation to ensure that they are beneficial to the represented counties and local jurisdictions.
The ongoing movement towards a greener economy, energy production, and manufacturing requires must be undertaken thoughtfully to ensure that communities and individuals are not harmed by rapid changes to previously established systems. AB 844 seeks to bring together representatives of communities that are at the center of much of this transition, and empowers them to advocate for projects, programs, and investments that best address these changes and growth."
4. Concerns. The Solano County Board of Supervisors writes with both questions and concerns: "One key question is the geographic scope of the bill. It references 3 cities in Solano County (Vallejo, Benicia and Suisun City) and the County of Solano. The Solano waterfront extends from San Pablo Bay and the Carquinez Strait all the way to the Sacramento/San Joaquin Delta. Does the bill intend to span the full breadth of this waterfront or a smaller geographic area? Would areas such as the city of Rio Vista or community of Collinsville be included under the scope of this bill. Also, the bill references "the northern waterfront areas of the Counties of Contra Costa and Solano". The text should be amended to note it is the southern waterfront of Solano County. Overall, the County recommends the bill language be tightened up to clarify geographic scope and extent and the legislative intent for these areas.
The key concern with the bill that might be able to be addressed with clarifying language is possible conflict of certain forms of green energy development (Wind turbine farms and commercial scale solar) As you know, the Travis Air Force Base (TAFB) is one of the largest employers in the County and operations at the base generate multiplied economic activity in the surrounding communities. While Solano County is supportive of alternative and green energy solutions, the establishment of wind turbines in the vicinity of TAFB in particular is incompatible with TAFB operations and air radar equipment used for national security purposes of the base and safe movement of all types of aircraft through the region. In short, wind turbines create radar interference that negatively affect air traffic control at TAFB. While the subject bill does not directly address wind energy development, it is unclear in current language if it could be interpreted to facilitate wind turbines and large scale wind energy projects Solano County currently has a moratorium on wind turbine development and the TAFB Land Use Compatibility Plan administered by the Solano County Airport Commission contains provision limiting wind turbine development. The County also prohibits commercial scale solar development in agricultural zones to preserve active agriculture and to minimize possible glare impacts on aircraft. The County's request is the bill include language requiring compliance with local ordinances addressing wind turbine, commercial scale solar and utility projects."
SUPPORT AND OPPOSITION:
Support:
California Professional Firefighters
Opposition:
Solano County Board of Supervisors
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