May 9, 2019
The Honorable Rudy Salas, Chair Joint Legislative Audit Committee California State Assembly State Capitol, Room 4016 Sacramento, California 95814
Dear Assemblymember Salas:
I appreciated the opportunity to provide testimony to you and the Committee members at the March 6, 2019 Joint Legislative Audit Committee regarding the California Air Resources Board’s (CARB) transportation policies and programs related to greenhouse gas (GHG) emission reductions. On April 23, we submitted to you and the members of the Committee responses to the five questions that we received prior to the hearing.
As you know, a number of additional important questions were raised at the hearing and subsequently transmitted to CARB in a letter on March 8. This transmittal includes our responses to those additional twenty-nine questions. We have also included the responses to the initial five questions for your convenience. We are looking forward to meeting with you on May 14 to discuss further. In the meantime, please do not hesitate to contact me at (916) 322-7077.
Sincerely,
Richard W. Corey Executive Officer
Enclosure
The Honorable Rudy Salas May 9, 2019 Page 2
cc: The Honorable Toni G. Atkins Senate President pro Tempore State Capitol, Room 205 Sacramento, California 95814
The Honorable Anthony Rendon Speaker of the Assembly State Capitol, Room 219 Sacramento, California 95814
The Honorable Richard Roth, Vice Chair Joint Legislative Audit Committee California State Senate State Capitol, Room 2080 Sacramento, California 95814
The Honorable Andreas Borgeas Joint Legislative Audit Committee California State Senate State Capitol, Room 3082 Sacramento, California 95814
The Honorable Maria Elena Durazo Joint Legislative Audit Committee California State Senate State Capitol, Room 5066 Sacramento, California 95814
The Honorable Robert Hertzberg Joint Legislative Audit Committee California State Senate State Capitol, Room 313 Sacramento, California 95814
The Honorable William Monning Joint Legislative Audit Committee California State Senate State Capitol, Room 4040 Sacramento, California 95814
The Honorable Rudy Salas May 9, 2019 Page 3
cc: (continued)
The Honorable John M. W. Moorlach Joint Legislative Audit Committee California State Senate State Capitol, Room 2048 Sacramento, California 95814
The Honorable Scott Wiener Joint Legislative Audit Committee California State Senate State Capitol, Room 5100 Sacramento, California 95814
The Honorable Tasha Boerner Horvath Joint Legislative Audit Committee California State Assembly State Capitol, Room 4130 Sacramento, California 95814
The Honorable Tyler Diep Joint Legislative Audit Committee California State Assembly State Capitol, Room 4153 Sacramento, California 95814
The Honorable Jim Patterson Joint Legislative Audit Committee California State Assembly State Capitol, Room 3132 Sacramento, California 95814
The Honorable Blanca Rubio Joint Legislative Audit Committee California State Assembly State Capitol, Room 5175 Sacramento, California 95814
The Honorable Rudy Salas May 9, 2019 Page 4
cc: (continued)
The Honorable Randy Voepel Joint Legislative Audit Committee California State Assembly State Capitol, Room 4009 Sacramento, California 95814
The Honorable Jim Wood Joint Legislative Audit Committee California State Assembly State Capitol, Room 4016 Sacramento, California 95814
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
This document, Attachment 1, contains the responses to each of the 29 questions outlined in Assemblymember Salas’ letter dated March 8, 2019 to the California Air Resources Board (CARB). This document refers to attachments originally submitted on April 23, 2019, and included in the current submittal, labeled as Attachment A, B, and C.
1. What is the overall budget of the ARB? How many people are employed by the ARB?
CARB’s current budget (FY 18-19), as approved by the Legislature, is $231,253,000, with 1,493 positions.
2. In the 52 years since the ARB was founded, how many comprehensive audits have been conducted by the State Auditor to review the effectiveness of its program?
CARB is the subject of multiple audits by the State Auditor each year. Topics vary widely, including reviewing employee leave practices (Report 2012-603), intellectual property management (Report 2011-106), high-risk issues (Report 2015-611, Report 2012-603, Report 2008-601, Report 2008-602, Report 2008-604, Report 2009-611.1), data reliability (Report 2008-401), investigations of improper activities by State employees (I2008-1, I2007-1, I2006-1, I2006-2, I2004-2), SIM/SAM/Federal Information Systems Control Audit Manual (annual), and the Greenhouse Gas Reduction Fund (annual).
Additionally, CARB’s Carl Moyer Program (established by AB 1571 (Brulte, Chapter 923, Statutes of 1999)) was the subject of a State audit released in 2007 (Report 2006-115). The State Auditor recommended that CARB seek legislative action to get more than 10 percent (as established by Health and Safety Code 44286(d)) of the funds allocated to multi-district projects and direct funds towards projects that achieve the lowest cost per ton of emissions reductions. This recommendation has been incorporated into the program via the Rural Assistance Program.
CARB also regularly responds to information requests about California Climate Investments from the Legislature and the public on behalf of all administering State agencies. California Climate Investments is a statewide initiative that incentivizes projects that facilitate the reduction of greenhouse gas (GHG) emissions using funding from the Greenhouse Gas Reduction Fund (GGRF). California Climate Investments are implemented by over 20 State agencies and CARB collects and compiles data each year for the Department of Finance (DOF) Annual Report to the Legislature (Assembly Bill (AB) 1532 (Pérez, Chapter 807, Statutes of 2012)).
In 2016, the Joint Legislative Audit Committee (JLAC) requested information on program effectiveness beyond what was included in the 2016 Annual Report.
May 9, 2019 1
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
CARB provided information on how each administering agency incorporates cost-effectiveness and additional metrics to evaluate program effectiveness. Subsequently, CARB revised its reporting requirements for agencies to provide this information regularly. Since 2017, Annual Reports have included additional information on program effectiveness, including cost per GHG emission reduction. CARB has also developed co-benefit assessments that provide a uniform approach to metrics for evaluating the effectiveness of programs and projects.
3. How many transportation policies and programs do we have in place in California that fall in the jurisdiction of ARB?
CARB has 58 transportation policies and programs in place in California with the goal of reducing air pollutant emissions from the millions of different types of equipment that operate on and off California’s roads (e.g., cars, trucks, forklifts, cargo handling equipment, marine vessels, motorcycles, garbage trucks, school buses, etc.). Of those, 32 programs focus on reducing greenhouse gas (GHG) emissions in the transportation sector and 26 focus on reducing criteria air pollutants and air toxics. Although CARB’s transportation programs have different primary objectives, they facilitate other emission reductions as a co-benefit. Many CARB GHG transportation programs provide multiple reductions benefits including those that reduce criteria pollutants/toxics from the transportation sector. For more detail, Attachment B in CARB’s Letter to Assemblymember Salas dated April 23, 2019 and included in this package describes CARB’s Transportation Programs that directly or indirectly achieve GHG emission reductions. For each program, there is a description of the program, a link to the program’s website, and references to page numbers relevant to emissions reductions achieved by each program.
Attachment B is structured by light-duty vehicle regulation programs, light-duty vehicle incentive programs, heavy-duty regulation programs, heavy-duty incentive programs, fuels regulation programs, and land use and transportation programs. The right-hand column of the table in Attachment B indicates the type of emission reductions that CARB’s GHG transportation programs achieve, with many programs reducing air pollutants, toxics, and GHG emissions.
4. What is the dollar amount of investment that the ARB allocated to the state for incentive programs over the last decade? What is the amount of investment that will be made in this budget year? Please also provide a breakdown of these investments by region and by the most polluted communities throughout the state.
Over the last decade, the Legislature has appropriated over $5 billion dollars for CARB incentive programs such as the Carl Moyer Program, Community Air Protection Program, Proposition 1B Goods Movement Emissions Reduction Program (Prop 1B), Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program, Air Quality Improvement Program (AQIP), Low Carbon Transportation (LCT)
May 9, 2019 2
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Program, and the Woodsmoke Reduction Program. The Governor’s FY 19-20 Budget proposes $755 million in appropriations to CARB for incentive funds (Table 1).
Table 1: CARB’s Statewide Incentive Program Appropriations ZE VW FAR AB Wood Prop Carl AQIP LCT Ware ZEV VW1 Total Moyer MER 617 Smoke 1B2 Fiscal house Scrap/ Replace Year (in Millions)
09-10 $70 $28 ------$98
10-11 $72 $35 ------$107
11-12 $72 $29 ------$101
12-13 $65 $42 ------$107
13-14 $67 $95 $30 ------$192
14-15 $70 $25 $197 ------$292
15-16 $70 $23 $90 ------$183
16-17 $70 $28 $363 - $5 - - - - - $466 17-18 $78 $28 $560 $50 $135 $250 - $25 - - $1,126
18-19 $81 $28 $455 $132 $245 $3 - - - - $944 Total $715 $361 $1,695 $50 $267 $495 $8 $25 $423 $980 $5,019 Governor's Proposed Budget
19-20 $70 $48 $382 $25 $230 - - - - $755 -
Of the $5 billion appropriated over the past decade, CARB has implemented nearly $3.2 billion. The time between appropriation and implementation varies and includes several steps to ensure that CARB is spending money in a fair and transparent manner. Steps CARB takes include developing programs and solicitation material, early and continued engagement with communities and stakeholders, allowing time for applicants to develop projects and complete applications, selecting recipients to ensure quality projects, and executing legal contracts to transfer funds to the recipient. Many of CARB’s programs are administered statewide, so investments by region are determined when funding recipients have been selected following a competitive solicitation process. Likewise, emissions benefits are known for implemented projects, rather than when a Legislative appropriation is made.
1 Funding for the Volkswagen NOx Mitigation Settlement is not specific to a fiscal year. 2 Funding for the Proposition 1B Goods Movement Emission Reduction Program is not specific to a fiscal year.
May 9, 2019 3
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Table 2 shows the investments and benefits achieved by local air district for the $3.2 billion of implemented funds.
Table 2: CARB’s Implemented Incentive Programs and Emission Benefits by Local Air District 2009-2018 NOx ROG PM 2.5 GHG District Name Implemented $ (tons) (tons) (tons) (MTCO2e) Amador APCD $396,000 29 2.2 0.41 2,100 Antelope Valley AQMD $21,100,000 530 82 18 84,000 Bay Area AQMD $612,000,000 25,000 2,800 750 3,700,000 Butte County AQMD $8,070,000 580 72 24 9,000 Calaveras County APCD $2,590,000 89 7.2 3.3 3,500 Colusa County APCD $5,740,000 1,500 170 73 360 Eastern Kern APCD $2,340,000 120 12 3.1 5,200 El Dorado AQMD $3,300,000 23 0.80 0.71 35,000 Feather River AQMD $5,800,000 670 90 28 5,400 Glenn County APCD $3,220,000 560 68 21 350 Great Basin Unified APCD $1,500,000 8.5 0.22 0.07 1,100 Imperial County APCD $27,400,000 1,900 40 55 20,000 Lake County AQMD $1,140,000 26 1.4 1.2 4,300 Lassen County APCD $2,010,000 220 26 8.7 170 Mariposa County APCD $311,000 2.6 0.08 0.20 2,500 Mendocino County AQMD $4,750,000 280 20 9.5 11,000 Modoc County APCD $276,000 46 5.8 1.6 - Mojave Desert AQMD $8,270,000 630 92 9.2 19,000 Monterey Bay Unified APCD $24,200,000 890 88 29 136,000 North Coast Unified AQMD $10,100,000 780 48 32 16,000 Northern Sierra AQMD $3,570,000 110 12 4.7 10,000 Northern Sonoma County APCD $4,500,000 97 13 4.7 19,000 Placer County APCD $7,130,000 92 3.3 1.5 76,000 Sacramento Metropolitan AQMD3 $158,000,000 11,000 710 410 200,000 San Diego County APCD $168,000,000 6,200 290 180 800,000 San Joaquin Valley APCD4 $508,000,000 53,000 3,100 1,600 410,000 San Luis Obispo County APCD $9,680,000 360 61 12 39,000 Santa Barbara County APCD $13,100,000 530 130 15 64,000
3 Sacramento figures may include projects in surrounding districts for which it administers Carl Moyer Program funds, including El Dorado, Placer, and Yolo-Solano. 4 San Joaquin Valley figures may include projects in the Great Basin air district.
May 9, 2019 4
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
NOx ROG PM 2.5 GHG District Name Implemented $ (tons) (tons) (tons) (MTCO2e) Shasta County AQMD $9,560,000 510 44 17 9,500 Siskiyou County APCD $2,420,000 140 12 4.7 1,100 South Coast AQMD $1,480,000,000 85,000 2,400 2,200 4,500,000 Tehama County APCD $3,450,000 310 37 16 1,300 Tuolumne County APCD $2,100,000 100 9.9 4.1 1,600 Ventura County APCD $41,800,000 2,700 350 110 190,000 Yolo-Solano AQMD $6,110,000 150 5.4 1.2 54,000 Statewide $10,600,000 310 10 3.5 -
TOTAL5 $3,170,000,000 200,000 11,000 5,700 10,000,000
Additional geographic breakdown, including by disadvantaged and low-income communities, is available for CARB’s California Climate Investments programs on the California Climate Investments project map, available at: https://arb.ca.gov/ccimap.
California Climate Investments Since 2014, California Climate Investments comprises $9.3 billion of appropriated funds for a variety of programs implemented statewide. Of that, almost $2.5 billion has been allocated to CARB for investments in Low Carbon Transportation, Community Air Protection, Agricultural Replacement Measures, Woodsmoke Reduction, and Prescribed Fire Smoke Monitoring. The 2019 Annual Report details the allocations by program for each of CARB’s California Climate Investments programs. This information is in Table ES-2 on page xiv of the 2019 Annual Report (included in this package as Attachment 2).
For all California Climate Investments programs, implemented by over 20 State agencies, CARB provides a project map that displays the location of each California Climate Investments project. To supplement the statewide project map, CARB posts additional information about the geographic distribution of all of California Climate Investments by region, metropolitan planning organization, county, rural/urban county designation, and Legislative district. Of the $3.4 billion in implemented projects for all California Climate Investments, 36 percent has been invested in the Los Angeles/Inland Empire area, 22 percent in the Bay Area, 17 percent in the San Joaquin Valley, 7 percent in San Diego/Imperial, and the remaining funds have been distributed in the other regions throughout the State. The most recent geographic analysis can be found at: https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/2019_cci_geographic_break down.pdf.
5 Totals may not add up due to rounding. Note that these are funds implemented to date; CARB continues to implement all appropriated funds as described in Table 1.
May 9, 2019 5
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
5. Do you have available data on how that spending will be made by region and what the estimated reductions in emissions will be overall in each region of the state, as well as in the most polluted communities throughout the state?
Please refer to the response to question 4 in this document for details of regional spending and emissions reductions data.
6. What are the highest priority programs for the ARB?
All of CARB’s programs are necessary to meet federal and State public health and climate change goals. During the public process to develop the plans to meet health based air quality standards as well as legislatively mandated greenhouse gas (GHG) reduction targets a list of priority programs is developed and acted on by the Board at a public hearing. Low priority programs are not included in these plans. CARB documents such as the Mobile Source Strategy, State Implementation Plan, and Climate Change Scoping Plan are examples of CARB’s integrated approach to planning, which allows consideration of multi-pollutant benefits, identifies interactions between policies, and maximizes program effectiveness. These policies and documents contain CARB’s multi-pronged approach to achieving State goals through regulations and incentives - and in response to State and federal law. CARB’s programs are driven by legislation or are mandatory plans to achieve federal air quality standards with additional benefits of reducing GHG emissions.
7. What are the administrative costs of ARB’s major GHG and transportation programs?
In 2017-18, CARB’s administrative costs for greenhouse gas (GHG) and transportation programs were approximately $148,600,000 (Table 3). In FY 2017-18, the Legislature approved $220,866,000 in labor authority to CARB. CARB’s actual labor expenditures were approximately $207,643,565; therefore, CARB’s GHG and transportation programs represented approximately 72 percent of CARB’s total FY 2017-18 administrative costs.
May 9, 2019 6
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Table 3: CARB’s FY 2017-18 Administrative costs for major GHG and Transportation Programs Program Total Costs by Fund Motor Vehicle Account Fund $ 86,308,896 Cost of Implementation Account, Air Pollution $ 22,646,930 Air Pollution Control Fund $ 13,344,371 Greenhouse Gas Reduction Fund $ 8,548,730 Vehicle, Inspection, and Repair Fund $ 8,004,573 Federal Trust Fund $ 7,371,228 Prop 1B - Goods Movement Project $ 1,035,277 Air Quality Improvement Fund $ 882,719 Oil, Gas, and Geothermal Administrative Fund $ 425,375 Total Transportation Labor $ 148,568,099
8. In assessing the overall effectiveness of our state’s polices, what method, if any, do you use to quantify all variables and factors that affect emissions such as economic conditions and negative health impacts?
Each CARB regulation undergoes a multi-year process that includes documented analyses of the impact on air quality, environmental justice, the economy, and the environment. The documented analyses form the basis for CARB staff recommendations considered by the Board at publicly noticed hearings. State law requires the development of an initial statement of reasons (ISOR) for proposing the adoption, amendment, or repeal of a regulation. The ISOR includes a statement of the specific purpose of each adoption, amendment, or repeal, the problem the agency intends to address, and the rationale for the determination by the agency that each adoption, amendment, or repeal is reasonably necessary to carry out the purpose and address the problem for which it is proposed. The ISOR enumerates the benefits anticipated from the regulatory action, including the benefits or goals provided in the authorizing statute. These benefits may include, to the extent applicable, nonmonetary benefits such as the protection of public health and safety, worker safety, or the environment, the prevention of discrimination, the promotion of fairness or social equity, and the increase in openness and transparency in business and government, among other things. Where the adoption or amendment of a regulation would mandate the use of specific technologies or equipment, a statement of the reasons why the agency believes these mandates or prescriptive standards are required.
Air Quality In any ISOR, there is a chapter discussing air quality impacts. Each regulation’s impact on air quality is specific to that regulation and describes the anticipated emissions benefits associated with the regulatory amendments using CARB’s Emission Factors
May 9, 2019 7
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter inventory model. The chapter also includes a discussion of the baseline emissions, the projected benefits, and the anticipated health impacts.
Economic/Fiscal Impacts State law requires that when a State agency proposes to adopt, amend, or repeal any regulation, it must assess the potential for adverse economic impact on California business enterprises and individuals, avoiding the imposition of unnecessary or unreasonable regulations or reporting, recordkeeping, or compliance requirements. When developing a proposed regulation, CARB’s Office of Economic Policy and Analysis coordinates with the CARB regulation team in order to develop an economic impact assessment and/or a standard regulatory impact analysis. Government Code sections 11346.2(b)(2) and 11346.3(b) require the preparation of an economic impact assessment (EIA) for a non-major regulation (also referred to as a Form 399), while Government Code sections 11346.2(b)(2) and 11346.3(c) require the preparation of a standard regulatory impact analysis (SRIA) for a major regulation.
Environmental Considerations Included in every ISOR is a section on the Environmental Analysis which includes either the basis for exemption or a description of the environmental review process, impacts, methods of compliance, resource areas impacts, an analysis of alternatives (if applicable), and more dependent of the regulation.
9. What targeted policies do you have in place to help low-income households deal with some of the costs associated with the current transportation programs and policies? What has been the measurable outcome of these target policies?
Legislation requires at least 35 percent of California Climate Investments must benefit disadvantaged communities, low-income communities, and low-income households. Senate Bill (SB) 535 (De León, Chapter 830, Statutes of 2012) set minimum investments for projects that benefit disadvantaged communities and projects that are located within disadvantaged communities. Assembly Bill (AB) 1550 (Gomez, Chapter 369, Statutes of 2016) updated the investment minimums for disadvantaged communities introduced by SB 535 and established new investment minimums for low-income communities and low-income households. AB 1550 requires the available monies for California Climate Investments be minimally allocated as follows: • 25 percent to projects located within the boundaries of, and benefiting individuals living in, disadvantaged communities. • 5 percent to projects that benefit low-income households or to projects located within the boundaries of, and benefiting individuals living in, low-income communities located anywhere in the State. • 5 percent to projects that benefit low-income households that are outside of, but within a half mile of, disadvantaged communities, or to projects located within the boundaries of, and benefiting individuals living in, low-income communities that are outside of, but within a half mile of, disadvantaged communities.
May 9, 2019 8
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
The statutory investment requirements apply to the overall California Climate Investments portfolio, rather than to each individual administering agency’s program. CARB develops individual targets for each program to drive investments that achieve direct and meaningful benefits to help ensure that the statutory investment minimums for California Climate Investments as a whole are met. CARB also develops the guidance that agencies must use to ensure that investments are direct, meaningful, and assured. Investment targets and guidance documents are available on the California Climate Investments Funding Guidelines website. The 2019 Annual Report provides program-specific detail on the priority populations benefiting from these investments and includes individual stories from funding recipients.
CARB light-duty incentive programs increase the number of clean cars on California’s roadways and increases access to clean vehicles in disadvantaged communities and for lower-income households. For example, the Enhanced Fleet Modernization Program Plus-Up provides vehicle rebates to low-income consumers and has invested 100 percent of implemented funds to benefit priority populations. Car sharing and mobility options help launch car sharing services that use clean transportation options, including plug-in hybrid or battery electric vehicles, and serve only disadvantaged communities. Often these programs help facilitate transit access in the cases where the final destination of an individual or family who uses public transportation is located too far away from the endpoint of the transit route – people can drive station cars to complete the final leg of their trip. The Agricultural Worker Vanpools in the San Joaquin Valley is a pilot project that provides expanded access to reliable, clean transportation vanpools for agriculture workers in San Joaquin’s disadvantaged communities. The vanpool project is an example of CARB exploring barriers to and opportunities to increase access to zero-emission and near-zero emission transportation and mobility options for low-income residents and improve air quality for communities most impacted by air pollution.
To date, 57 percent of overall California Climate Investments benefit low-income and disadvantaged communities, while 59 percent of CARB’s California Climate Investments programs benefit disadvantaged and low-income communities. In addition to the local air quality benefits, mobility choices are increasing while costs are being offset from these incentive programs. Individuals purchasing new, clean vehicles are eligible for income-tiered rebates; others have access to clean vehicles through car share programs, potentially eliminating the need to purchase a vehicle.
10. What targeted policies do you have aimed at supporting technological innovation, such as incentives for pilots and demonstrations of new technologies?
CARB’s transportation regulations and incentive programs in both the light-duty and heavy-duty sectors help bring newer and innovative technology to the market to further emission reductions. Examples below highlight CARB’s light- and heavy-duty
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
programs that promote pilot and demonstration technology funding for vehicles and equipment, supporting infrastructure, workforce training, and outreach.
Light-Duty Programs The Zero-Emission Vehicle (ZEV) Program comprises both regulatory and non-regulatory efforts intended to advance commercialization of zero-emission vehicles to facilitate California’s transition to a predominantly zero-emission light-duty fleet by 2050.
The ZEV Regulation establishes annual sales requirements for automakers to produce increasing numbers of innovative electric technologies necessary for achieving California’s long-term goals. The most recent requirements span through 2025 model year, and require, at minimum, approximately 8 percent of all new car sales to be a ZEV, which means a fully battery electric vehicle or hydrogen fuel cell vehicle, or plug-in hybrid electric vehicle (PHEV), a vehicle that can run on both electricity and gasoline. Currently, manufacturers within the regulation are over complying with the regulatory requirements, resulting in an increased number and diversity of ZEVs on California’s roads. The sales requirements on manufacturers are supported by light-duty incentive programs that help increase the demand for a greater variety of ZEVs and PHEV options.
As of February 2019, approximately 537,000 new ZEVs and PHEVs have been sold in California since December 2010. This represents approximately 36 percent of the overall goal of 1.5 million vehicles on California roads by 2025 and half of the total US market for electric vehicle sales.
Heavy-Duty Programs Both Assembly Bill (AB) 8 (Perea, Chapter 401, Statutes of 2013) and Senate Bill (SB) 1204 (Lara, Chapter 452, Statutes of 2014) provide important policy direction for CARB’s heavy-duty investment strategy. AB 8 provides continued funding for the Air Quality Improvement Program (AQIP), which invests in cleaner vehicle and equipment projects that reduce criteria pollutant and air toxic emissions. SB 1204 created the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, which uses monies from the Greenhouse Gas Reduction Fund to support projects that advance innovation, with a priority to those that benefit disadvantaged communities. CARB prepares an annual funding plan through a public process to guide the implementation of funding appropriated by the Legislature for these programs. The Fiscal Year 2018-19 Funding Plan for Clean Transportation Incentives includes CARB’s vision for technology development, demonstration, pre-commercial pilots, and early commercial deployments and provides a summary of heavy-duty Low Carbon Transportation investments, including $183 million for advanced technology freight demonstrations and $85 million for zero-emission truck and bus pilots. The Fiscal Year 2018-2019 Funding Plan for Clean Transportation Incentives can be found at: https://www.arb.ca.gov/msprog/aqip/fundplan/proposed_1819_funding_plan.pdf. This funding has supported 30 individual projects including 16 located in the South
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Coast Air Quality Management District and 9 in the San Joaquin Valley Air Pollution Control District. Summaries of each project are available on the Moving California website: https://www.arb.ca.gov/msprog/lct/movingca.htm. In 2017, CARB received $135 million to reduce agricultural sector emissions by providing grants, rebates, and other financial incentives for agricultural harvesting equipment, heavy-duty trucks, agricultural pump engines, tractors, and other equipment used in agricultural operations. CARB created the Funding Agricultural Reduction Measures for Emission Reductions (FARMER) Program to meet legislative direction. In 2018, the Board approved funding to local air districts to administer the program, including allocating 80 percent of the funds to the San Joaquin Valley Air Pollution Control District.
CARB also develops regulations to complement incentives and help to further advance technology innovation. The Board recently approved the Innovative Clean Transit Regulation that will require transition to a zero-emission bus fleet by 2040 and encourage the use of innovative mobility programs. The Board is also expected to make a final decision on a staff recommendation to require airport shuttles to transition to zero-emission shuttles by 2035 and to approve an optional zero-emission powertrain certification program.
Other regulatory efforts focused on innovation in the heavy-duty sector are in various stages of development. Staff are developing regulatory strategies that are focused on last mile delivery fleets, drayage trucks, and other local use trucks to accelerate the early market for zero-emission trucks and buses in the next decade. Staff have also been working with truck and chassis manufacturers on a proposed advanced clean truck regulation that would require an increasing percentage of truck sales in California to be zero-emissions for model years 2024 through 2030.
11. What are the overall GHG reductions per dollar of investment for the major programs and policies currently in place? Please identify any other metrics that are used in the programs to evaluate their effectiveness, including air quality benefits and impact to disadvantaged communities.
CARB’s Incentive Programs CARB has a portfolio of incentive programs that reduce emissions to improve air quality and public health and address climate change, advance technology, increase access to clean transportation, and benefit low income and disadvantaged communities. Each incentive program has its own statutory requirements, emission reduction goals, and eligible projects. The portfolio strikes a balance between investing in technologies that provide cost-effective, near-term emission benefits and investing in transformative zero-emission technologies that cost more in the near-term but are needed to meet the State’s longer-term public health and air pollution goals. Both are needed.
The Legislature has underscored this through appropriations to innovative incentive programs and by establishing multiple priorities in programs, such as the many
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter co-benefits identified for Greenhouse Gas Reduction Fund programs (including Assembly Bill (AB) 617 (Garcia, C., Chapter 136, Statutes of 2017), AB 398 (Garcia, E., Chapter 135, Statutes of 2017), and AB 1532 (Pérez, Chapter 807, Statutes of 2012)).
Attachment B from CARB’s Letter to Assemblymember Salas dated April 23, 2019, and included in this package, provides detail on the metrics CARB uses for assessing progress in each of its programs. Attachment C – CARB Reports Tables, includes CARB’s reports related to measuring or evaluating the effectiveness and efficiency of CARB’s current transportation programs. These are reports that CARB produces to meet Legislative requirements, strategy plans to further emissions reductions, federal strategy plans to meet national attainment goals, incentive funding plans that contain information on various aspects of programs that reduce air pollution administered within CARB, and other reports that CARB produces. California Climate Investments On average, the approximately 60 California Climate Investments programs implemented by over 20 State agencies are reducing greenhouse gas (GHG) emissions at a rate of $75 per metric tons of carbon dioxide equivalent (MTCO2e). Table ES-2 of the 2019 Annual Report submitted to the Legislature details the GHG cost-effectiveness of each program. In addition to reducing GHG emissions, California Climate Investments programs are achieving multiple benefits including advancing technology, improving public health, and laying the groundwork for long-term transformative change.
12. Are programs required to meet a cost-effectiveness threshold?
There are multiple requirements in statute that provide direction regarding cost-effectiveness. In setting all light-duty regulations (such as the Low Emission Vehicle or Zero-Emission Vehicle regulations), California statute requires CARB to consider cost-effectiveness and pursue the most cost-effective control measures. Health and Safety Code Section 43018(c) states, “the state board shall adopt standards and regulations which will result in the most cost-effective combination of control measures on all classes of motor vehicles and motor vehicle fuel.” For greenhouse gases (GHG), Assembly Bill (AB) 32 (Nunez, Chapter 488, Statutes of 2006) requires CARB to “achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions.”
Cost-effectiveness as a cost per mass of pollution reduced can be a useful tool for evaluating alternatives for a regulation or incentive program (for example, comparing various potential regulatory structures and comparing various potential projects to fund). However, cost-effectiveness does not encompass the full range of economic metrics CARB considers in the rulemaking process. Other considerations include technical feasibility, costs to typical and small-businesses, jobs, competitive advantages or disadvantages to California businesses, affordability, and the potential to drive innovation, which could reduce future compliance costs. In addition, pollutant
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
reductions may have multiple quantified and unquantified benefits, which are not considered in the cost-effectiveness calculation including benefits to public health, ecosystem, and the environment. CARB routinely estimates monetized public health benefits of major regulations to identify the relative costs and benefits of the proposal and alternatives in addition to calculating the cost-effectiveness value. Generally, CARB is required through its certified regulatory program to consider these factors during its rulemaking process.
CARB regulations typically compare the cost-effectiveness of the proposed regulation to both regulator alternatives and previous regulations. For example, CARB’s light-duty regulations consider cost, technology feasibility, and both economic and environmental impacts, including benefits, at multiple points during the life of a regulation.
Please also refer to the response to question 8 regarding the economic/fiscal impact assessment as part of the initial statement of reasons (ISOR) during the development of regulations.
13. To what extent are metrics for cost-effectiveness factored into plans for future investment?
Cost-effectiveness is a key factor that informs all of CARB’s regulatory and incentive programs. Future investments would likely include cost-effectiveness as one important metric. Please refer to responses to questions 10, 11, and 29 for additional information.
14. With respect to the Clean Vehicle Rebate Program and the Clean Cars 4 All program, do you have available data on what the average income level is for those who take advantage of the program? Of the total $589 million in rebates to customers since 2010, do you have data specific to which regions and zip codes of the state have proportionately received these rebates?
Clean Vehicle Rebate Program The Clean Vehicle Rebate Program (CVRP) administrator, the Center for Sustainable Energy, collects household income information for rebate customers (Figure 1). Income eligibility requirements were included in March 2016 per Senate Bill (SB) 1275 (De Leon, Chapter 530, Statutes of 2014) and adjusted by SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016) in November 2016. Since then, the number of CVRP rebates issued to higher-income households has decreased while the number of rebates issued to lower-income households has increased, as shown in Figure 1.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Figure 1: CVRP Rebates by Household Income over Time
Source: CVRP: Data and Analysis Update
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
The Center for Sustainable Energy also collects information from participants, such as a street address, which allows them to produce a publicly-available dashboard that shows rebate distribution by local air district, electric utility, county, California Senate and Assembly district, and underserved communities. For example, Table 4 and Figure 2 show the distribution of CVRP rebates by local air district.
Table 4: Summary of Rebate by Local Air District
Source: https://cleanvehiclerebate.org/eng/rebate-statistics
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Figure 2: Rebates by Local Air District
Source: https://cleanvehiclerebate.org/eng/cvrp-rebate-map
Clean Cars 4 All Program The Clean Cars 4 All Program is a voluntary car scrap and replacement program established by Assembly Bill (AB) 630 (Cooper, Chapter 636, Statutes of 2017). Local air districts implementing the Clean Cars 4 All Program report to CARB detailed information on each participant, including street address and household income category relative to the Federal Poverty Limit (FPL) (i.e., under 225 percent, 225-300 percent, or 300-400 percent). With these data, CARB can calculate funding spent at the census tract, zip code, or regional level. To date, 90 percent of all participants have incomes less than 225 percent of the FPL, which is $56,475 per year for a family of four.
CARB provides much of the reported data on its website, which is updated quarterly.
15. Of the $1 billion that has been spent or is planned to be spent on the ZEV infrastructure, what percentage is planned to be spent in each region and community of the state?
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
CARB contributes to, but does not lead, statewide efforts to deploy zero-emission vehicle (ZEV) infrastructure. Rather, CARB supports ZEV infrastructure programs via interagency coordination as well as through monitoring the implementation of investments.
Volkswagen Settlement – Electrify America CARB monitors the implementation of the Volkswagen (VW) ZEV Investment Commitment under Appendix C of the first Partial Consent Decree, which requires VW to make investments to further increase ZEV adoption in California. Electrify America, VW’s subsidiary, identifies investments for four 30-month cycles of $200 million each through ZEV Investment Plans of which there is a category dedicated for ZEV infrastructure. Electrify America identifies target regions and corridors within each investment plan. Under the approval of Cycle 1 and Cycle 2, Electrify America plans to install charging infrastructure in 9 metropolitan areas and many regional routes and highway corridors throughout California. The Consent Decree, Senate Bill (SB) 92 (Committee on Budget and Fiscal Review, Chapter 26, Statutes of 2017) and Board Resolution 17-23 outline reporting requirements for Electrify America to follow. SB 92 puts forth reporting requirements and criteria to ensure a percentage of the funds are benefiting disadvantaged or low-income communities. To ensure Electrify America is investing 35 percent of its investments in disadvantaged or low-income communities, CARB will map current charging infrastructure as well as charging stations Electrify America installments.
Hydrogen Fueling Infrastructure Investments Assembly Bill (AB) 8 (Perea, Chapter 401, Statutes of 2013) extended the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP), previously established by AB 118 (Núñez, Chapter 750, Statutes of 2007). The directives of AB 8 require that the California Energy Commission (CEC) is the administrator of the funds provided by the ARFVTP for the purposes of establishing light-duty hydrogen fueling infrastructure within California. Per AB 8, CARB staff are required to annually identify areas of need for expansion of the hydrogen refueling network to provide sufficient refueling coverage and capacity to the growing fleet of FCEV (fuel cell electric vehicle) drivers. CARB staff developed the California Hydrogen Infrastructure Tool and California Hydrogen Accounting Tool, which are geographical information system and database tools that track network and FCEV deployment status and identify gaps between potential future deployments and the funded hydrogen fueling network. CARB staff also complete analyses on the need to expand hydrogen fuel production capacity in the State, projections of the hydrogen network’s potential for financial self-sufficiency, and evaluations to support the development and implementation of the Low Carbon Fuel Standard’s provisions designed to support the deployment of hydrogen fueling stations.
California Climate Investments CARB also allocates funding from the Greenhouse Gas Reduction Fund (GGRF) through the Low Carbon Transportation program for heavy-duty infrastructure that
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter directly supports vehicles and equipment funded through demonstrations, pilots, and commercial incentives (Table 5).
Table 5: Summary of CARB’s Heavy-Duty Infrastructure Funding from GGRF since 2014 Total # of # of Fueling Funding Chargers Stations since 2014 South Coast AQMD $55,908,830 666 8 Bay Area AQMD $14,948,678 419 1 San Joaquin Valley APCD $11,659,956 91 1 Ventura APCD $2,553,296 17 2 Sacramento Metropolitan $979,494 66 - AQMD San Diego APCD $900,344 100 - Monterey Bay Air Resources $241,812 27 - District Placer County APCD $179,120 20 - Santa Barbara APCD $18,000 1 - Total $87,389,530 1,407 12
16. According to the research from the Center for Sustainable Energy, more than half of the consumers who have received a rebate reported that they would have purchased a ZEV even if the program did not exist. Do you have a plan to target this program more towards people who would not purchase a ZEV without the rebate? Are there ways to the free-rider problem?
Clean Vehicle Rebate Project CARB makes every effort to minimize free-ridership in all of its incentive and rebate programs. Through the Clean Vehicle Rebate Project (CRVP) Electric Vehicle Consumer Surveys, consumers identified rebates as an important component of their decision to purchase a zero-emission vehicle (ZEV). Over 90 percent of respondents rated rebates moderately to extremely important in making it possible to acquire a ZEV, and over 50 percent of those ZEV consumers report they would not have bought their ZEV without the rebate. (This fraction is increasing as the program moves beyond the earliest adopters. It is up to 58 percent based on the most recent data). CARB continues to take steps to focus the rebate where it has the most impact. These include: introducing an income cap per Senate Bill (SB) 1275 (De León, Chapter 530, Statutes of 2014) and SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016); limiting consumers to two lifetime CVRP rebates, so those who have already embraced ZEVs do not get an incentive; and increasing rebate amounts for low-income consumers.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
CARB staff will propose further changes to focus CVRP rebates in the fiscal year 2019-20 Funding Plan to reflect the recent growth in the ZEV market. CARB will consider making changes such as: limiting rebates to one per person for the lifetime of the program; limiting the amount of time consumers have to apply for a rebate after vehicle purchase or lease; increasing the all-electric range requirement for plug-in hybrid electric vehicles and implementing a range requirement for battery electric vehicles; further reducing the income cap; and implementing an MSRP cap for eligible vehicles. CARB is currently conducting a public process and working with stakeholders to determine the feasibility of incorporating these or other changes. To date, CARB has held two public workshops and two workgroups and will continue meeting with stakeholders through the spring to further discuss CVRP to inform the fiscal year 2019-20 funding plan and update to the Three-Year Plan for Light-Duty Vehicle Incentives.
Clean Cars 4 All Clean Cars 4 All provides incentives to help low-income Californians replace their older, high-polluting vehicles with advanced technology vehicles such as hybrid, plug-in hybrid, and battery electric vehicles or use alternative mobility options, such as public transit and/or car sharing. Clean Cars 4 All complements a similar but smaller scrap-and-replace program called the Enhanced Fleet Modernization Program (EFMP). Both programs reduce greenhouse gas emissions, improve local air quality, and benefit Californians through reduced vehicle ownership costs. Established by Assembly Bill (AB) 630 (Cooper, Chapter 636, Statutes of 2017), Clean Cars 4 All codifies the existing EFMP Plus-Up Pilot Project, which has been operating in the South Coast and San Joaquin Valley air districts since June of 2015. Clean Cars 4 All will expand to the Bay Area in late spring and to the Sacramento area later in 2019.
Health and Safety Code section 44125 (7) requires that Clean Cars 4 All (and EFMP) ensure that “cost-effectiveness and impacts on disadvantaged and low-income populations are considered” and that program eligibility may be “limited on the basis of income to ensure the program adequately serves persons of low or moderate income.” Consequently, Clean Cars 4 All participation is limited to low- to moderate-income consumers, defined as those with annual incomes of less than 225 percent and 400 percent of the Federal Poverty Level (FPL), respectively, who live in or a near a disadvantaged community.
To date, 90 percent of all participants have incomes less than 225 percent of the FPL, which is $56,475 per year for a family of four. Moreover, by requiring participants to scrap their functioning vehicle, the Program is focusing on a subset of the population that is less likely to be already looking to buy a new car.
17. The LAO report states that more consistent evaluations of these programs’ cost and benefits would better assist the Legislature in policymaking decisions regarding how to allocate limited resources. Do you have a plan in place to provide a more consistent evaluation of these programs’ costs and benefits?
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If so, what is the timeline for establishing more consistent evaluations of the programs’ costs and benefits?
CARB evaluates programmatic costs and benefits as consistently as possible. Costs and benefits across the programs differ to the extent that legislative direction may vary by program. Also, many programs fortunately provide multiple benefits (e.g., a measure that reduces emissions for diesel particulate matter as well as greenhouse gases (GHG)) thus adding a level of complexity to the calculations. But, the overarching methodologies are the same.
For example, the Clean Vehicle Rebate Project (CVRP) estimates GHG benefits based on multiple factors, such as emissions from an eligible vehicle type and a conventional vehicle, and an estimated project life of vehicles. CVRP delivers multiple benefits beyond just GHG emission reductions, including air quality, lowered costs to purchasing a clean vehicle, etc. The overarching approach to quantifying these benefits is consistent but multiple variables (such as tiered rebates based on income levels) can make evaluations more complex.
CARB reports on the costs and benefits of these programs through an annual funding plan and Legislatively-mandated reports:
Annual Clean Transportation Incentives Funding Plan (Funding Plan) The Funding Plan provides recommendations for funding Low Carbon Transportation and Air Quality Improvement Program incentives. The Funding Plan is developed through a multi-month public process, which includes updates and evaluations of projects, and recommendations for future funding for existing and new projects. The report quantifies expected air quality and GHG emission reductions for the projects funded, as well as expected market or awareness outcomes.
Annual Report to the Joint Legislative Budget Committee on AB 32 (AB 32 Report) As required by Senate Bill (SB) 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012), this report contains a summary of the progress made on achieving the goals of Assembly Bill (AB) 32 (Nunez, Chapter 488, Statutes of 2006), including recent developments and upcoming milestones, through the Cap-and-Trade Program, Low Carbon Fuel Standard, among others. The AB 32 Report also contains resource reports that quantify the Board's AB 32 staffing and operations expenses and the retrospective fiscal report intended to quantify the major revenue and board expenses for AB 32 program for the prior fiscal year. The AB 32 Report provides a consistent evaluation of multiple programs’ costs and benefits. Costs are included on pg. 78 (projected for FY 2017-18), and GHG estimated GHG reduction benefits are included on pg. 65. Longer term emission reduction trends are in the annual GHG Emissions Trends Report.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
California Climate Investments Annual Report to the Legislature A Department of Finance document required by AB 1532 (Pérez, Chapter 807, Statutes of 2012), the California Climate Investments Annual Report describes the status of funded programs and lists the projects funded. The report provides a consistent evaluation of the status of programs, GHG emissions reductions, leveraging, fiscal data, funding to low-income and disadvantaged communities, and other program data, using CARB’s reporting requirements and quantification methodologies. CARB continues to develop additional methodologies to estimate GHG and other benefits (e.g., air pollution reduction, jobs) to provide additional and consistent information to the Legislature on program and project outcomes.
18. Which of the heavy-duty vehicle programs are most likely to encourage technological innovation? Which programs are most likely to achieve the greatest reductions of co-pollutants?
CARB’s transportation regulations and incentive programs work together to bring newer and innovative technology to the market for the purposes of emissions reductions.
While most incentive programs provide some opportunity for advanced technologies, the Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Senate Bill (SB) 1204 (Lara, Chapter 452, Statutes of 2014)) has the strongest focus on supporting technology innovation. SB 1204 specifically identifies funding eligibility for zero- and near-zero emission technologies, as well as vehicle and equipment efficiency technologies such as intelligent transportation systems and autonomous vehicles. As described in the response to question 10, most of CARB’s pre-commercial demonstration and pilot projects have been funded under the SB 1204 framework with Low Carbon Transportation funding.
The Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), also funded mainly by Low Carbon Transportation, is CARB’s cornerstone incentive opportunity for commercially available advanced technology trucks and buses. Prior to funding by Low Carbon Transportation, HVIP received funding from the Air Quality Improvement Program. With total funding of almost $400 million since its inception in 2010, HVIP has supported about 5,000 vouchers for clean trucks and buses, with about 50 percent of vouchers requested for vehicles based in disadvantaged communities.
CARB is launching a new Clean Off-Road Equipment Voucher Incentive Project (CORE) that is modeled after HVIP. CORE will provide incentives for zero-emission off-road freight equipment that has not yet achieved a significant market foothold, such as yard trucks, transport refrigeration units, forklifts, and cargo handling equipment. This new project will launch in 2019 to support advanced technology innovation in the off-road sector.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Regulations can also help support technology innovation in sectors where advanced technologies are commercially available. CARB recently adopted the Innovative Clean Transit Regulation that will require a transition to a zero-emission bus fleet by 2040 and encourages the use of innovative mobility programs. The regulation is structured to provide sufficient time to access incentive funds and to encourage transit agencies to make progress ahead of the regulatory schedule to remain eligible for funding. The Board is expected to make a final decision on a staff recommendation to require airport shuttles to transition to zero-emission shuttles by 2035 and to approve an optional zero-emission powertrain certification program. These zero-emission regulations provide sufficient time for affected fleets to access funding before the first zero-emission purchase target. There are more than 30 models that are commercially available and most major manufacturers have announced plans to commercialize zero-emission trucks by 2021. Other regulations under consideration are described in the response to question 10.
Incentive and regulatory programs that support zero-emission technologies are essential to meet multiple goals. Zero-emission trucks and freight equipment achieve significant greenhouse gas (GHG) reductions and help achieve co-benefits such as reduced near-source exposure to air toxics, especially around freight hubs such as ports, rail yards, and distribution centers. These technologies eliminate tailpipe emissions of oxides of nitrogen (NOx) and diesel particulate matter, which is especially important to help the most polluted areas of the State to achieve federal clean air standards. Cleaner combustion technologies, such as low NOx engines, still emit pollutants but can provide benefits in applications that are not well-suited to zero-emission. Cleaner combustion engines can help to achieve GHG co-benefits if paired with renewable fuels.
19. Is there a way to consolidate heavy-duty vehicle programs that are administered by different agencies to improve coordination and accountability?
No single agency has the authority or expertise to fully develop and implement the regulatory (CARB) and incentive (CARB, Department of Transportation (Caltrans)), and local air districts) programs, associated infrastructure planning and development (California Energy Commission (CEC) and California Public Utilities Commission (CPUC)), and outreach and education (all agencies) needed for the replacement of heavy-duty vehicles. CARB coordinates with its partner agencies in all these efforts to ensure the investments complement one another. CARB’s regulatory authority is a key component of ensuring that State agencies can jointly meet the State’s larger goal of advancing clean technology, while the use of incentives is an additional important tool to help move the process forward.
Heavy-Duty Vehicle Investment Coordination CARB, Caltrans, and local air districts all make significant heavy-duty vehicle investments. CARB establishes the program guidelines for the major local air district implemented programs like the Carl Moyer Program and Community Air Protection
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Program thereby ensuring coordination among the programs. CARB strategically designs its Low Carbon Transportation investments so they are not duplicative with local air district investments. Other efforts are funded by multiple agencies and programs, such as heavy-duty vehicle demonstrations and school bus replacement. As an example, the Legislature recently reprogrammed CEC’s school energy efficiency funding to support additional school bus replacements. To support CEC’s efforts and the legislative directive to replace school buses, CARB has taken a larger role through the Lower Emission School Bus Program for incentive funding for school bus replacements, and has taken a role to coordinate with the CEC and local air districts on funding from the Low Carbon Transportation Program, the Carl Moyer Program, and the Community Air Protection Program to identify school bus funding available through their respective programs.
Infrastructure Coordination CARB coordinates with CEC, CPUC, local air districts, and the utilities on infrastructure. Coordination includes: recently convened Funders Forum meetings (a collaborative of agencies including CARB, CEC, CPUC, local air districts, and utilities to discuss issues related to vehicle and infrastructure funding), regular conversations with CPUC to provide the guidance required under Senate Bill (SB) 350 (De León, Chapter 547, Statutes of 2015), and meetings with utilities to align CARB’s programs. In addition, CARB is a member of the CEC’s Alternative and Renewable Fuel and Vehicle Technology Program that provides input on the development of each year’s investment plan.
20. The LAO report and other research determined that the Low Carbon Fuel Standard has much higher economic costs than the cap-and-trade program. Do you have a way to determine what the costs are to the lowest-income households? Are there ways to reduce those costs to the lowest-income households?
CARB’s programs are a diverse package of policies that are put together based on analyses of the most cost-effective ways to achieve federal mandates, State-required statutory programs, and achieve the State’s greenhouse gas (GHG) reduction goals.
The Cap-and-Trade program and the Low Carbon Fuel Standard (LCFS) are both important parts of the package that reflect a balance between achieving air pollution, public health and climate goals, and minimizing the costs to Californians, especially low-income and disadvantaged communities.
The LCFS is part of a portfolio of policies identified in the Scoping Plan that, if successfully implemented, will reduce fossil fuel demand by 45 percent in 2030 compared to today’s levels, leading to reductions not only in GHG emissions but also in criteria pollutants and toxic air contaminants. These air quality improvements will benefit the most vulnerable communities that face disproportionate exposure to air quality impacts and climate change. A detailed environmental analysis was completed
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for the recently adopted LCFS amendments. The analysis shows that the increased use of alternative fuels and emission reduction projects expected at petroleum refineries and oil fields in California in response to the LCFS will result in significant criteria pollutant emission reductions, benefitting vulnerable communities located near highways, ports, refineries, airports, and oil fields.
As discussed in the Supplemental Regulatory Impact Analysis for the recently completed LCFS amendments, the LCFS market results in a transfer of money from producers of high carbon-intensity fuels such as gasoline and diesel to producers or suppliers of low carbon-intensity fuels such as electricity and renewable natural gas. This transfer results in cost savings for consumers of alternative fuels with slightly higher costs being passed through to consumers of gasoline and diesel. For example, during the period of Q4 2017 through Q3 2018, California transit agencies generated 336,000 LCFS credits from the use of low carbon electricity and natural gas in bus fleets and electric rail. The revenue generated by these credits, nearly $65 million annually at current credit prices, is then available for transit agencies to reinvest in their transportation services and/or reduce (or delay increasing) rates for consumers. As another example of price savings passed on to consumers, Southern California Gas Company recently pointed to the LCFS when announcing a reduction in price for compressed natural gas sold at its public access fueling stations. Many investments by refineries are following suit as a result of the LCFS program to diversify fuel types and reduce carbon intensity, potentially leading to similar cost savings to customers. A refinery in Paramount, California, is converting to renewable jet, diesel, gasoline, and propane to reduce both refinery and fuel emissions while supporting advanced green economy jobs. More investments like these can lead to more opportunities to reduce costs to consumers.
21. The LAO made recommendations that the Legislature ensure that the LCFS achieves some significant benefits that cap-and-trade does not and that these benefits outweigh higher program costs. Is there a plan in place to achieve this goal?
The Cap-and-Trade Program guarantees greenhouse gas (GHG) emissions reductions through an overall emissions limit that decreases each year, while trading provides businesses with flexibility in their approach to reducing emissions. By providing flexibility through the Cap-and-Trade Program, companies can look at the least expensive way to reduce emissions first. However, simply relying on a Cap-and-Trade Program to the exclusion of complementary policies like the Renewables Portfolio Standard or Low Carbon Fuel Standard (LCFS) would be insufficient to effectively transform key sectors such as electricity and transportation and the associated co-benefits such as reductions in air pollution that will result.
Transportation is the biggest GHG emitting sector in California, accounting for over 50 percent of emissions, and is especially difficult to decarbonize.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
The LCFS has already achieved significant improvements in the transportation sector including: • increasing diversity and volume of low carbon fuels, • increasing use of waste-based feedstock for the production of fuels, and • incentivizing many innovative low carbon fuel projects that are in the pipeline, including over a billion gallons of additional renewable diesel production from both new facilities and expansions of existing facilities expected to come online in the next few years.
CARB transparently reports data on a quarterly basis which tracks the success of the LCFS program in reducing emissions from the transportation sector, increasing the diversity and volume of low carbon fuels, increasing the use of waste-based feedstock for the production of alternative fuels and lowering the carbon intensity of these fuels, and promoting innovative emission reduction projects within the petroleum sector. LCFS Reporting Tool Quarterly Summaries can be found at: https://www.arb.ca.gov/fuels/lcfs/lrtqsummaries.htm. LCFS Data Dashboard and Quarterly Data Spreadsheet are available here: https://www.arb.ca.gov/fuels/lcfs/dashboard/quarterlysummary/quarterlysummary_04 3019.xlsx.
As an example of this reported data, Figure 3 shows volumes of alternative fuels consumed in California since the inception of the program in 2011, and corresponding credits generated by those fuels. A credit under the LCFS represents one ton of GHG emission reduction.
Figure 3: Volume of Alternative Fuels and Credits Generated under LCFS
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
22. Is there a plan or review process that the ARB is looking at to make design changes to the LCFS that better target the program toward innovative technologies?
CARB continually evaluates opportunities to target the Low Carbon Fuel Standard (LCFS) program to drive rapid scale up of innovative technologies. In addition to doubling the carbon intensity reduction goal of the program by 2030, the recent round of amendments approved last year by the Board support innovation through allowing for low carbon alternative jet fuels and propane to participate in the program, adopting a rigorous protocol to allow for carbon capture and sequestration projects to generate credits, adding flexibility for matching low carbon electricity to electric vehicle charging and hydrogen production, promoting the development of zero-emission vehicle infrastructure, and promoting the use of innovative technologies to reduce emissions within conventional fuel supply chains.
CARB also tracks innovation throughout the alternative fuels sector encouraged by LCFS. These innovative projects under development include: • Enhanced oil recovery project developed by GlassPoint Solar in Kern County that will use solar energy in lieu of natural gas combustion to recover oil, reducing greenhouse gas emissions and criteria pollutants in the San Joaquin Valley. • Conversion of a California oil refinery (at Paramount, California) and a North Dakota oil refinery to renewable diesel biorefineries. • Addition of cellulosic ethanol production at Pacific Ethanol’s California and Idaho facilities, and the construction of a new cellulosic ethanol biorefinery in California by Aemetis. • Increased use of waste and solar energy in the production of biofuels. The following provide just a few examples underway at alternative fuel production facilities: o Calgren recently applied to use dairy biogas to produce ethanol at their Pixley, California facility. o Aemetis will use orchard waste to produce cellulosic ethanol at its Riverbank, California project. o Pacific ethanol will add a 5 MW solar power system to its Madera, California facility. o Biodico opened a new facility at Five Points, California that will utilize waste biogas and solar energy to produce biodiesel. o Fulcrum Energy is planning to convert syngas produced through gasification of municipal solid waste to renewable diesel. o Ensyn is producing biocrude (produced from forest waste) for use in California refineries. • Carbon Engineering partnering with Chevron and Occidental Petroleum to directly capture carbon dioxide from the atmosphere, to use for fuel production.
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• Carbon capture and sequestration projects at White Energy and Red Trail Energy ethanol production facilities.
23. How much funding is allocated toward research and development activities related to low carbon fuels?
By design, the Low Carbon Fuel Standard (LCFS) rewards private investment in research, development and deployment of low carbon fuels. As a result of the LCFS billions of dollars are being invested in cleaner alternatives to traditional petroleum fuels.
LCFS is a market-based program that sets declining annual benchmarks for average carbon intensity (CI) of fuels consumed in California. Producers of fuels with CI values above the benchmark generate deficits, while producers of fuels with CI values below the benchmark generate credits. Compliance is achieved when a regulated party uses credits to balance its deficits. This creates a credit market, in which entities generating deficits must buy credits from low carbon fuel producers or suppliers. In 2018, the total value transferred from producers of high carbon fuels to producers or suppliers of low carbon fuels was nearly $2 billion.
In addition to the LCFS, California Climate Investment programs help provide financial incentives for research and development. Examples of these programs are the California Department of Resources Recycling and Recovery’s Organics Grant Program and the California Department of Food and Agriculture’s Dairy Digester Research and Development Program, which both capture methane that can be counted as a renewable fuel in LCFS market.
24. The Legislature has no statutory discretion for the rebates and incentives provided through the LCFS. Can you provide an overview of these rebates and incentives and how they have been allocated by region and by zip codes?
The Low Carbon Fuel Standard (LCFS) does not provide rebates. As noted in response to question 23, the LCFS is a market-based program that sets declining annual benchmarks for average carbon intensity (CI) of fuels consumed in California. Producers of fuels with CI values above the benchmark generate deficits, while producers of fuels with CI values below the benchmark generate credits. Compliance is achieved when a regulated party uses credits to balance its deficits. This creates a credit market, in which entities generating deficits must buy credits from low carbon fuel producers or suppliers. Credit transactions in the LCFS occur directly between the deficit-generating entity and the low carbon fuel producer or supplier. These transactions do not involve CARB receiving or distributing any money in the form of rebates or incentives.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
25. Has the ARB looked at, or considered, establishing a hard price ceiling for the LCFS, similar to the cap-and-trade price ceiling that was established by AB 398?
The LCFS currently has a “cost containment mechanism” that is designed to function as a soft cap. CARB has considered and will continue to evaluate the need for additional cost-containment features in the program. Most recently, CARB held a workshop on this topic on April 5, 2019 and is considering a proposal to further strengthen the cost-containment mechanism of the program.
26. Has the ARB identified the communities who are hit hardest by air pollution?
California has some of the most polluted communities in the nation. Identifying those “hardest hit” by air pollution varies based on the type and exposure to pollutants. Sensitive populations, proximity to sources, multi-pollutant exposure, and income levels are also important considerations. CARB, in conjunction with the 35 local air districts and federal partners, has for the past fifty years operated a statewide network of regulatory air quality monitors that now numbers over 250 sites and includes monitoring of particulate matter (PM10 and PM 2.5), oxides of nitrogen (NOx), toxic air contaminants, and greenhouse gases (GHG).
These data inform analysis of communities impacted by air pollution, such as identifying regions that are in non-compliance with federal air quality standards (and subject to the State Implementation Plans (SIPs) process) and areas of pollution hotspots where additional non-regulatory monitoring may be warranted.
CARB has identified those regions that are not in attainment with federal and State clean air standards. These include the San Joaquin Valley, South Coast, San Diego, San Francisco Bay Area, Imperial Valley, and Mojave Desert air basins. To bring these regions into attainment, CARB in conjunction with the local air districts has developed and implemented numerous SIPs that have dramatically improved air quality through adoption of stringent air pollution regulations.
Additional guidance on determining communities most impacted from air pollution are informed by legislative direction. CalEPA was tasked with identifying the State’s most disadvantaged communities under Senate Bill 535 (De León, Chapter 830, Statutes of 2012) for the purpose of California Climate Investments. CalEPA designated communities using CalEnviroScreen, a tool that assesses all census tracts in California to identify the areas disproportionately burdened by and vulnerable to multiple sources of pollution. A map of these communities is available at: https://calepa.ca.gov/EnvJustice/GHGInvest/. Together with low-income communities (as defined by Assembly Bill (AB) 1550 (Gomez, Chapter 369, Statutes of 2016), California Climate Investments must expend at least 35 percent of funds to benefit these communities (see response to question 9 for more information).
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
CalEnviroScreen uses environmental, health, and socioeconomic metrics to produce “scores” for each metric and ranks each census tract with an overall score. Data for ozone, PM2.5, and diesel PM are based on data from CARB. According to CalEnviroScreen version 3.0, the census tracts receiving as score of 100% (the most impacted) for ozone, PM2.5, and diesel PM are in the counties listed in Table 6.
Table 6: Counties with Census Tracts with CalEnviroScreen Score of 100 County Ozone PM2.5 Diesel PM Number of census tracts Kern 11 Los Angeles 1 Riverside 66 San Bernardino 78 1 Tulare 1
AB 617 (Garcia, C., Chapter 136, Statutes of 2017) required the identification and selection of communities with high cumulative exposure burdens for toxic air contaminants and criteria air pollutants and annual consideration and selection, as appropriate, of individual communities for either community air monitoring, a community emissions reduction program, or both. In response to this, in September 2018, CARB’s Board approved the Community Air Protection Blueprint (Blueprint), which outlines the community selection process as well as the criteria for developing monitoring plans and emissions reduction programs. In September, the Board also selected ten initial communities for these focused actions, as shown in Figure 4.
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Figure 4: Year 1 Recommended Communities for AB 617 Community Action Planning
27. Have we monitored the poorest air quality communities to determine how particulate matter, NOx and GHG levels have increased or decreased since the implementation of AB 32?
CARB consistently monitors air quality for multiple pollutants across the State and for the past 50 years has maintained one of the most extensive air monitoring networks in the world. Federal regulations require that CARB compile these monitoring stations into an Annual Network Plan and submit them to the U.S. Environmental Protection Agency (U.S. EPA). These monitoring programs provide the crucial real world verification that emissions reductions plans and measures have a verifiable impact in regional and community air quality.
Currently, the air pollutant monitoring focuses on ground-level ozone (O3), particulate matter (PM10 and PM2.5) carbon monoxide (CO), oxides of nitrogen (NO2), sulfur dioxide (SO2), and lead (Pb).
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Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Additionally, the Board selected nine communities for additional monitoring in the first year of Assembly Bill (AB) 617 (Garcia, C., Chapter 136, Statutes of 2017) implementation to support greater local data collection. The local air districts are currently working with community steering committees to develop air monitoring plans. Statute requires that the air monitoring systems in the nine selected communities begin deployment by July 1, 2019.
Under the Community Air Grants program, CARB has also awarded grants to 23 community-based projects that propose community-led monitoring for criteria pollutants and air toxics in communities throughout the State.
CARB has also created an online Resource Center that includes an air monitoring toolbox that serves as a repository of community air monitoring information and guidance. The goal of the toolbox is to support the process of fostering collaborative relationships for community air monitoring, streamline data collection, display, and interpretations, and support the advancement and utility of air monitoring methods. This will also include a new web tool known as AQ-VIEW to make community air monitoring data available in a user-friendly and accessible manner. An initial version of AQ-VIEW will be launched this summer.
Data are available on CARB’s website and multiple geographic scales at: https://www.arb.ca.gov/adam/. Trends in PM10 for the South Coast, San Joaquin Valley Air Basin and San Francisco Bay Area Air Basin are shown in Figures 5, 6, and 7, respectively.
Figure 5: PM10 in the South Coast Air Basin 1988-2017
Micrograms per cubic meter per cubic Micrograms
May 9, 2019 31
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Figure 6: Annual Average PM10 in the San Joaquin Valley Air Basin 1988-2017
Micrograms per cubic meter per cubic Micrograms
Figure 7: Annual Average PM10 in the San Francisco Valley Air Basin 1988-2017
per cubic meter Micrograms Micrograms
South Coast is the only area in non-attainment for NO2. Trends in NO2 for the South Coast are shown in Figure 8.
May 9, 2019 32
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
Figure 8: Summer Average NO2 in the South Coast Air Basin 2000-2015
CARB tracks the State’s greenhouse gas (GHG) emissions progress as a whole or by industry. Since implementing AB 32 (Nunez, Chapter 488, Statutes of 2006), CARB has seen GHG reductions, as shown in Figure 9, even while California’s Gross Domestic Product (GDP) and population have increased. During this same period, statewide criteria pollutants have also declined. Between 2000 and 2015, NOx and ROG have reduced by 59% and 48%, respectively, throughout the State.
Figure 9: California GHG, Population, and GDP 2000-2015
May 9, 2019 33
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
28. What investments have been made in the most polluted communities and what measurable outcomes have come about?
CARB has a portfolio of incentive programs to reduce emissions and increase access to clean transportation with a focus on benefiting disadvantaged and low-income communities and low-income populations. Incentives complement CARB’s regulatory programs by providing extra or early emission reductions, and they support future regulatory efforts by helping prove the feasibility of advanced emission control technologies.
CARB’s incentive programs are intended to maximize benefits to priority populations. Please refer to question number 4 for details of CARB’s incentive programs. California Climate Investments are implemented statewide, including in the State’s most polluted communities. CARB published an online map that shows the location of each project. The California Climate Investments project map is available at: https://arb.ca.gov/ccimap and a detailed project list is available at: https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/ccirts_all_projects_march20 19.xlsx. The 2019 Annual Report details the allocations by program for each of CARB’s California Climate Investments programs. To date, 57 percent of investments benefit disadvantaged and low-income communities. This information is in Table ES-2 of the 2019 Annual Report. Many of CARB’s programs focus investments on the most polluted communities, such as Community Air Protection Grants program, which implements Assembly Bill 617 (Garcia, C., Chapter 136, Statutes of 2017).
As indicated in question 27, CARB has in partnership invested in a network of over 250 air monitors to understand the trends and impacts of air pollution in the State – including the most polluted communities. These monitoring partnerships provide the real-world verification that CARB’s long history of emissions reductions plans, regulations, and incentive programs have a positive impact in regional and community air quality. This portfolio approach of CARB programs has yielded quantifiable results. Statewide, 2016 emissions fell below the State’s 2020 greenhouse gas target which is four years earlier than mandated and at the same time, reductions in criteria and air toxic air pollutants has been dramatic. For example, specific to progress in the San Joaquin Valley, ozone and particulate levels have shown improvement. Since 2000, oxides of nitrogen emissions have decreased by 400 tons per day (or 63 percent). Particulate matter emissions decreased by 46 ton per day or about 44 percent.
29. Does life-expectancy drop for those communities who are greatly and adversely affected by poor air quality? What programs has the ARB implemented in these communities specifically?
Yes, there are multiple adverse effects associated with air pollution, including decreased life expectancy. Additional adverse impacts include asthma and respiratory health, cardiovascular health, and cancer.
May 9, 2019 34
Attachment 1: CARB Response to March 8, 2019 Assemblymember Salas Letter
The Scoping Plan includes estimates of avoided premature mortality and avoided health impacts from achieving the 2030 greenhouse gas target as well as the environmental benefits from avoided emissions as calculated using the social cost of carbon.
CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change. CARB’s entire suite of programs, policies, and incentives are designed to improve air quality to reduce these impacts and improve public health.
May 9, 2019 35
2019
ANNUAL REPORT
Cap-and-Trade Auction Proceeds
California Climate Investments · 2019 Annual Report Program Webpage For more information on this topic and upcoming meetings, please see the program website for Administration activities at caclimateinvestments.ca.gov. Document Availability Electronic copies of this document and related materials can be found at caclimateinvestments.ca.gov. Paper copies may be obtained from: California Air Resources Board 1001 I Street, 1st Floor Visitors & Environmental Services Center Sacramento, California 95814 (916) 322-2990
For individuals with sensory disabilities, this document is available in Braille, large print, audiocassette or computer disk. Please contact CARB’s Disability Coordinator at (916) 323-4916 by voice or through the California Relay Services at 711 to place your request for disability services. If you are a person with limited English and would like to request interpreter services, please contact the CARB’s Bilingual Manager at (916) 323-7053. Annual Report to the Legislature on California Climate Investments Using Cap-and-Trade Auction Proceeds
GREENHOUSE GAS REDUCTION FUND MONIES
March 2019 CONTENTS
Executive Summary i Investing Auction Proceeds ii Reporting Outcomes v Achieving New Priorities vi Delivering Climate and Other Environmental, Economic, and Public Health Benefits vii Benefiting Priority Populations viii Reaching Across California ix Measuring Program Effectiveness xi Leveraging Other Funding Sources xi Growing the Demand for Funding xi Understanding Cumulative Program Outcomes xii
Background 1 Cap-and-Trade Auction Proceeds 1 Electric Utility and Natural Gas Supplier Investments 3 Policy Framework 4 Investment Plan 4 Funding Guidelines 4 Quantification Methodologies 5 Project Reporting 5 Broader Impact 6 New Legislation 9
Priority Populations 10 Cumulative Benefits to Priority Populations 11 Statutory Investment Minimums 12 Outreach 14 Awareness and Outreach 14 Technical Assistance and Capacity Building 18 Interagency Coordination 18 Accountability and Transparency 18
Outcomes from 2018 21 Planned Investments 21 Co-benefits 22 New Programs Established in 2018 23 Cross-sectoral Investments 24 Individual Program Statistics 25
Transportation & Sustainable Communities 27
Clean Energy & Energy Efficiency 64
Natural Resources & Waste Diversion 75
Appendix A: Cumulative California Climate Investments Leveraged Funds 105
Appendix B: 2018 Statistics on Competitive Project Proposals Received 108
Appendix C: Cumulative Budgetary Expenditures 111 EXECUTIVE SUMMARY
CUMULATIVE OUTCOMES California is a leader in combating climate change on a national level and continues to make global headlines as we work toward a just and sustainable future. Achieving the State’s ambitious climate goals 110,000 projects installing efficiency requires coordinated support from State and local measures in homes agencies and California communities. California Climate Investments have grown to include more than 20 State agencies that work collaboratively, 3,200+ affordable housing learn from each other, and increase community units under contract engagement to ensure projects are meeting local needs. While California Climate Investments alone will not achieve our climate goals, the program serves 207,000+ rebates issued for zero- as a model for the transformative change needed to emission and plug-in hybrid vehicles ensure that California thrives on a vibrant, healthy planet for centuries to come. To achieve these objectives, California Climate 500,000+ acres of land preserved Investments are directing billions of dollars into our or restored State’s transition to a low-carbon, more equitable, and resilient future. Electric vehicle rebates and home solar installations lower the cost of energy 50,000+ trees planted in urban areas and transportation for recipients, new transit lines and affordable housing units increase mobility and housing options, improved forest management decrease our risk of catastrophic wildfires, and new 462+ transit agency projects funded, technologies increase water efficiency on agricultural adding or expanding transit options lands. Across the suite of California Climate Investments, projects are improving air quality, supporting jobs, and creating safer, more resilient 57% of funding for projects benefiting priority communities communities. With its strong focus on equity, more ($1.5 billion +) than 57 percent of funds implemented to date benefit our most vulnerable populations. 2018 was marked by significant progress in implementing critical 343,000+ individual projects implemented
i California Climate Investments · 2019 Annual Report near-term projects and building a pipeline for transformative long-term investments. Agencies selected, awarded, and implemented funding at significantly higher rates than in previous years. Implemented funds in 2018 alone total $1.4 billion — almost doubling investments made in 2017 — and billions more are planned for the years to come. The Legislature and Administration continue to advance State climate and equity goals through California Climate Investments. New appropriations include technical assistance to increase equity in accessing funds, forest management to reduce fire risk, and community-based programs to improve air quality and meet local needs. Agencies are responding by adjusting programs, increasing community engagement, and using new tools to quantify additional benefits from funded projects. Equity is central to California Climate Investments. Policy changes in 2017 increased the focus on disadvantaged communities and directed additional investments toward low-income communities and low-income households. In 2018, California Climate Investments are benefiting these “priority populations” more than ever. Investing Auction Proceeds The Legislature appropriates money from the Greenhouse Gas Reduction Fund (GGRF) to agencies to administer California Climate Investments programs that facilitate greenhouse gas (GHG) emission reductions and provide economic, environmental, and public health benefits. Four agencies receive a set portion of each quarterly auction through continuous appropriations enacted in Senate Bill (SB) 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014), and the Legislature makes additional annual investments through the Budget Act. SB 901 (Dodd, Chapter 626, Statutes of 2018) states that these annual Budget Acts shall include $200 million through Fiscal Year (FY) 2023 – 24 for forest health, fire prevention, and fuel reduction programs. Additional legislation identifies other expenditures from the GGRF, such as a credit from a manufacturing tax and use fee and offsetting residents’ fire prevention fee in State Responsibility Areas. As of the end of 2018, there are more than 20 State agencies involved in the program development, project selection, and implementation of 60 California Climate Investments programs. Table ES-1 shows the FY 2018-19 and cumulative appropriations for investments as of November 30, 2018. Note that program names may change over time.
California Climate Investments · 2019 Annual Report ii Table ES-1: Cumulative Appropriations for California Climate Investments
Appropriations1,2 ($M) Cumulative Appropriations, Administering Agency Program FY 2018–19 Cumulative Prior to Appropriations Total FY 2018–19 Appropriations
Community Air Protection $267 $290 $556 Funding Agricultural Replacement Measures $85 $112 $197 for Emission Reductions Low Carbon Transportation $1,263 $462 $1,725 Active Transportation $10 -- $10 Low Carbon Transit $231 $148 $379 Operations
High-Speed Rail Project3 $1,287 $736 $2,023
Transit and Intercity $575 $294 $869 Rail Capital Affordable Housing and Sustainable Communities $959 $596 $1,555 Sustainable Agricultural Lands Conservation Climate Change Research $11 $18 $29 Technical Assistance $2 $2 $4 Transformative Climate $150 $40 $190 Communities
Woodsmoke Reduction $5 $3 $8
Low-Income Weatherization $192 $10 $202
Alternative Renewable Fuels $3 -- $3 State Water Efficiency $66 -- $66 and Enhancement State Water Project Turbines $20 -- $20
Water-Energy Grant $50 -- $50 Food Production Investment $60 $64 $124 Low-Carbon Fuel Production -- $13 $13 Renewable Energy for Agriculture $6 $4 $10
iii California Climate Investments · 2019 Annual Report Appropriations1,2 ($M) Cumulative Appropriations, Administering Agency Program FY 2018-19 Cumulative Prior to Appropriations Total FY 2018-19 Appropriations
Prescribed Fire Smoke Monitoring -- $6 $6
Local Coastal Program $2 $2 $3
Training and Workforce $10 $14 $24 Development
Wetlands and Watershed $42 $5 $47 Restoration Dairy Methane $161 $99 $260
Healthy Soils $8 $5 $13
Fire Prevention $77 $28 $105 Prescribed Fire -- $25 $25 Sustainable Forests $297 $160 $457
Waste Diversion $111 $25 $137
Wildfire Response and Readiness $25 $25 $50
Regional Forest and Fire Capacity -- $20 $20
Urban Greening $106 $20 $126
Climate Ready $4 $3 $7
Climate Adaptation and $20 -- $20 S t a t eCB o f C a l i f o r n i a Conservation Easements Wildlife Conservation Board
Coastal Resilience Planning $1 $1 $1
Total $6,105 $3,227 $9,332
1 Appropriations from previous fiscal years may be retroactively adjusted to account for Budget Control Sections or for special legislation (e.g., Trailer Bills). As a result, reported cumulative appropriations may not reflect summations of Budget Act line items. 2 Certain administering agencies have provisional language allowing for transfer of appropriated funds to other State agencies to implement California Climate Investments programs. 3 SB 862 states that $400 million shall be available to the California High-Speed Rail Authority beginning in FY 2015-16 as repayment of a loan from the GGRF to the General Fund. This money shall be repaid as necessary, based on the financial needs of the High-Speed Rail Project. This loan amount is not included in the reported $2.0 billion cumulative appropriations.
California Climate Investments · 2019 Annual Report iv Reporting Outcomes This report describes the status and outcomes of California Climate Investments, which are funded by Cap-and-Trade auction proceeds and distributed through GGRF. Assembly Bill (AB) 1532 (Pérez, Chapter 807, Statutes of 2012) requires the Department of Finance (Finance) to submit an Annual Report to the Legislature. The report fulfills the statutory requirements by describing the ongoing demand for funding and program-level benefits; providing estimates of benefits including GHG emission reductions and benefits to priority populations; and including project profiles demonstrating how these funds are improving lives across the State. Data are reported for 2018 as well as cumulatively, as follows: • 2018: Data reported for December 1, 2017 — November 30, 2018. • Cumulative: Data reported since a program’s inception. The Legislature created the GGRF in 2012 and first appropriated funds in 2014. • To Date: Information that is current as of the release of this Annual Report in March 2019. Administering agencies are responsible for reporting information on each funded project. To provide a clear and consistent approach for tracking and reporting funds and project benefits, the following terms describe how the funding flows from the Legislature to recipients: appropriated, allocated, selected, awarded, and implemented. These terms are specific to the reporting and tracking of California Climate Investments and may differ from the terms used by individual administering agencies. Figure ES-1 provides working definitions for terms used to report outcomes from California Climate Investments.
Figure ES-1: Terms for California Climate Investments
The Legislature authorizes an agency to make expenditures or incur financial obligations from the GGRF for a specified purpose and period of time.
An agency distributes funds or establishes an expenditure limit for a program or subprogram.
An agency announces funding recipients (e.g., Board action, or public announcement) prior to executing grant agreements; not yet awarded.
An agency commits funding to a project (e.g., executed a contract; transferred funds to an administering agency).
Final funding recipient receives funds and projects have attributable GHG and priority population benefits.
v California Climate Investments · 2019 Annual Report For more information on the reporting process for administering agencies, please refer to the Funding Guidelines and reporting templates available at www.arb.ca.gov/cci-fundingguidelines. Figure ES-2 shows the status of California Climate Investments funding by category. Agencies and award recipients must complete many tasks between an appropriation and project implementation, and those are reflected in the gap between appropriated and awarded funds. Tasks can take more than a year and include: early and continued engagement with communities and stakeholders, determining the type of projects to fund, allowing time for applicants to develop projects and complete complex applications and quantification methodologies, carefully selecting recipients to ensure quality projects, and executing legal contracts to transfer funds to the recipient. These steps ensure that the expenditure of State funds is fair and transparent.
Figure ES-2: Summary of California Climate Investments Funding
Achieving New Priorities Experience implementing California Climate Investments is allowing administering agencies to build on lessons learned and continuously improve the efficiency and impact of investments. California Climate Investments is increasingly responsive to new priorities and stakeholder feedback, as reflected in recent guidance document updates. In 2018, the California Air Resources Board (CARB) updated the Funding Guidelines for administering agencies to increase focus on important co-benefits, and improve accountability and transparency. Also in 2018, a multi-agency effort led to the development of the Third Investment Plan for Fiscal Years 2019 – 20 through 2021 – 22. The Third Investment Plan recommends that the Legislature continue to invest in existing programs and prioritize programs that have a community focus, achieve near-term climate and health benefits, contribute to a long-term transformation to adaptable and resilient low-carbon communities and ecosystems, and support job training and apprenticeship opportunities. The Third Investment Plan also emphasizes the importance of providing funding certainty over multiple years so that programs can better support Legislative priorities.
California Climate Investments · 2019 Annual Report vi The Legislature passed several new bills in 2018 related to California Climate Investments. In addition to annual appropriations, the Legislature passed SB 901 to help address wildfire. SB 901 established ongoing appropriations for new and existing CAL FIRE programs through FY 2023 – 24. Through SB 1072 (Leyva, Chapter 377, Statutes of 2018) and AB 2377 (Irwin, Chapter 868, Statutes of 2018), the Legislature signaled the importance of enhanced technical assistance to assist under-resourced communities access incentive funding, including California Climate Investments. SB 1072 also tasked the Strategic Growth Council with developing technical assistance guidelines, which will be a critical tool for all agencies administering California Climate Investments. Delivering Climate and Other Environmental, Economic, and Public Health Benefits The projects implemented through 2018 are expected to reduce GHG emissions by nearly 37 million
metric tons of carbon dioxide equivalent (MTCO2e) over time — GHG emissions equivalent to 4 billion gallons of diesel fuel use. Projects implemented in 2018 alone are expected to reduce GHG emissions
by approximately 17 million MTCO2e over time. Figure ES-3 shows estimated GHG emission reductions from cumulative implemented projects. Additional GHG emission reductions are expected from planned investments, such as the High-Speed Rail project, which is expected to reduce GHG emissions by
64.3 to 75.9 million MTCO2e over the first 50 years of its operating life.
Figure ES-3: Estimated GHG Benefits from Cumulative Projects
Cumulative GHG Emission GHG Emission Reductions from Reductions from Implemented Projects Full High-Speed Rail System
70 MMT 70 MMT
60 MMT 60 MMT
50 MMT 50 MMT
40 MMT 40 MMT Natural Resources High-Speed Rail 30 MMT & Waste Diversion 30 MMT Clean Energy & 20 MMT Energy Efficiency 20 MMT
10 MMT Transportation & 10 MMT Sustainable Communities
0 MMT 0 MMT Through 2018 Estimated GHG Benefits Over Estimated GHG Benefits Project-specific Quantification Period Over 50-year Timeframe
vii California Climate Investments · 2019 Annual Report In addition to GHG emission reductions, investments improve community health because they reduce exposure to near-term air pollutants that impair heart and lung health. Implemented projects with
quantified air pollution emissions reduction are cumulatively expected to reduce nitrogen oxide (NOX) emissions by 7,000 tons and particulate matter (PM) emissions by almost 500 tons. Additionally, California residents are saving water and energy, and in turn, saving money by participating in Climate Investments. Efficiency projects implemented in 2018 alone will save 85 billion gallons of water and 161 gigawatt-hours (GWh) of electricity — enough to power more than 15,000 homes for a year. Similarly, new low-carbon vehicle owners are expected to save 12 million gallons of fuel from investments made in 2018. Projects are also greening our communities and strengthening our forests — cumulatively, implemented projects will plant more than 3,650,000 trees. Benefiting Priority Populations Cumulatively, 57 percent of investments are benefiting disadvantaged and low-income communities, vastly exceeding the 35 percent aggregate investment minimums established in statute. When the program began in 2012, the Legislature established investment minimums for California Climate Investments to benefit disadvantaged communities with SB 535 (De León, Chapter 830, Statutes of 2012). AB 1550 (Gomez, Chapter 369, Statutes of 2016) replaced and expanded those minimums to also include low-income communities and low-income households.4 This report collectively refers to disadvantaged communities, low-income communities, and low-income households as “priority populations.” Since 2012, agencies have tailored their programs to meet the statutory objectives for benefiting priority populations. Figure ES-4 shows how cumulative investments made through 2018 have contributed to the investment minimums for priority populations.
Figure ES-4: Cumulative Investments Benefiting Priority Populations
Other Areas of California 43%
57%
Benefiting priority populations
The "Benefits to Priority Populations" section further describes the benefits of California Climate Investments.
4 SB 535 requires that a minimum of 25 percent of investments fund projects that benefit disadvantaged communities and a minimum of 10 percent of investments fund projects that benefit and are located within disadvantaged communities. AB 1550 requires that a minimum of: 25 percent of investments fund projects that benefit and are located within disadvantaged communities; an additional 5 percent fund projects that benefit and are located in low-income communities or households located anywhere in the State; and an additional 5 percent to fund projects that benefit and are located in low-income communities or households that are outside of, but within ½-mile of, disadvantaged communities.
California Climate Investments · 2019 Annual Report viii Reaching Across California California Climate Investments span all areas of the State. Urban forestry projects are focused on developed areas while conservation easements are focused on undeveloped areas. Each agency designs their program and selects projects in accordance with the Funding Guidelines and program objectives, which can include targeting certain populations or geographies. Some programs, such as rebate programs, are better suited for wide distribution. In contrast, place-based programs such as Transformative Climate Communities focus on dense investments in a specific geographic region. Certain programs, such as CARB’s Rural School Bus Program, specifically target all funds in rural areas; others, such as the Strategic Growth Council’s Affordable Housing and Sustainable Communities program, have established a funding set-aside for rural areas. CARB’s online map provides an interactive display of the location of each project implemented. Figure ES-5 shows cumulative investments in each county. For more detailed maps of individual programs and projects, visit the online map at caclimateinvestments.ca.gov.
ix California Climate Investments · 2019 Annual Report Figure ES-5: Cumulative California Climate Investments by County
Del Norte > $250 million Siskiyou Modoc $201 – $250 million $101 – $200 million Shasta Lassen Humboldt Trinity $11 – $100 million Tehama ≤ $10 million Plumas Glenn Butte Mendocino Sierra In addition, High-Speed Rail has implemented Nevada $626 million. Of this, 59% funds construction in Colusa Yuba Placer the Central Valley, 18% funds Caltrain electrification, Lake Sutter 2% funds San Mateo grade separation, and El Dorado 21% funds project development. Sonoma Yolo Napa Sacra- Alpine mento Amador Solano Marin Calaveras San Contra San Costa Tuolumne Mono Francisco Joaquin Alameda San Mateo Santa Stanislaus Mariposa Clara Madera Santa Merced Cruz San Benito Fresno Inyo
Tulare Monterey Kings
San Luis Obispo Kern
Santa San Bernardino Barbara Los Ventura Angeles
Riverside Orange
San Diego Imperial
California Climate Investments · 2019 Annual Report x Measuring Program Effectiveness In addition to reducing GHG emissions, California Climate Investments programs are achieving multiple benefits including advancing technology, improving public health, and laying the groundwork for long-term transformative change. Appropriations reflect a range of legislative priorities such as reducing criteria air pollutants and toxic air contaminants or helping communities adapt to climate hazards. Promoting early-stage technology can help the longer-term transition to a low-carbon economy as such technologies need time to reach large-scale deployment. Investments can signal opportunities for new businesses and spur new jobs, establishing a supportive green economy. These benefits are not only happening across California Climate Investments but within individual programs and projects, demonstrating a future-thinking approach to project design and implementation that is needed to meet multiple State goals.
Overall, California Climate Investments are reducing GHGs at an average rate of $75 per MTCO2e. Table ES-2 details the GHG cost-effectiveness of each program’s GGRF expenditures, and do not include the amount of non-GGRF (or “leveraged”) funds. Individual programs are also achieving important co-benefits that are specific to the project type funded, including benefits to priority populations. For example, California Department of Food and Agriculture’s State Water Efficiency and Enhancement Program saves 5,800 gallons of water per dollar of GGRF investment. Leveraging Other Funding Sources Many California Climate Investments programs extend the reach of their appropriations by requiring or encouraging applicants to secure additional support from federal, State, local, or private sources. Cumulatively, $3.4 billion in implemented GGRF funds have leveraged an additional $10.8 billion from other sources, not including the other funds leveraged for the High-Speed Rail project, which could total more than $60 billion. These billions of dollars of non-GGRF funds support California Climate Investments projects that reduce GHG emissions, benefit priority populations, and generate co-benefits such as employment opportunities, cleaner air, and lower transportation costs. Affordable housing developments funded by the Strategic Growth Council’s Affordable Housing and Sustainable Communities program, for example, leveraged $314 million from the GGRF into $1.6 billion in total funding, including federal and State Low-income Housing Tax Credits. An independent study by researchers from the University of California, Los Angeles (UCLA) Luskin Center for Innovation found that the $2.2 billion of California Climate Investments between 2013 and 2016 spurred an additional $6.4 billion from other funding sources.5 Appendix A provides more detail about the leveraged funds by program. Growing the Demand for Funding As awareness of and access to California Climate Investments improves, demand for funding continues to grow. On average, California Climate Investments’ competitive funding programs receive applications requesting over 300 percent of available funding. Appendix B includes statistics on the applications received compared to the applications selected for funding in 2018 for each competitive program. Agencies are required to post information on all project applications or proposals received, including those not selected for funding, on their program websites. This information can provide context for the competitiveness of project proposals and may help future applicants identify areas to strengthen their projects. Agencies also post information about proposed and final funding decisions on their program websites.
5 DeShazo, J.R., et al. (2018) Employment Benefits from California Climate Investments and Co-investments. http://innovation.luskin.ucla.edu/CCIJobsStudy
xi California Climate Investments · 2019 Annual Report Understanding Cumulative Program Outcomes Table ES-2 includes cumulative summary statistics for each California Climate Investments program. The “Outcomes from 2018” section of this report provides specific program pages that include more information on the program design and projects funded. Detailed data are available at www.caclimateinvestments.ca.gov, including information on project location, GHG emission reductions, and benefits to priority populations. The information is available on an interactive map and can be downloaded as an Excel file.
California Climate Investments · 2019 Annual Report xii xiv California Climate Investments · 2019 Annual Report
Table ES-2: Summary of California Climate Investments and Outcomes through 2018
Cumulative Funding Status ($M) Implemented Projects
GHG Funds Benefiting Administering Agency Subprogram Selected & Reduction Cost per GHG Number Priority Allocated 6 Implemented Populations Awarded (1,000 ($/MTCO2e) of Projects MTCO e) 2 ($M) % Community Air Grants $15.0 $9.9 $8.5 --7 N/A 24 $8.3 97% Community Air Protection Funds $515.0 $235.0 $113. 4 64 $1,768 787 $105.3 93% Funding Agricultural Replacement $197.0 $79.5 $13.2 10 $1,332 342 $9.7 74% Measures for Emission Reductions Advanced Technology Freight $84.0 $79.2 $79.2 16 $4,939 11 $79.2 100% Demonstration Projects Agricultural Worker Vanpools $9.0 $6.0 $6.0 5 $1,307 1 $6.0 100% Clean Mobility Options for $48.1 $9.6 $9.6 3 $2,952 7 $9.6 100% Disadvantaged Communities Clean Mobility in Schools Project $10.0 NEW PROGRAM FOR FY 2018 – 19 California Air Clean Off-Road Equipment $40.0 TBD TBD TBD TBD TBD TBD TBD Resources Board Clean Truck & Bus Voucher Program $362.9 $369.9 $227. 4 879 $259 3,632 $158.0 69% Clean Vehicle Rebate Project $708.4 $708.0 $484.0 5,478 $88 207, 882 $156.4 32% Enhanced Fleet Modernization $102.0 $61.0 $21.2 19 $1,138 3,508 $21.2 100% Program/Plus-Up Financing Assistance for $25.9 $5.9 $1.6 2 $970 267 $1.6 98% Lower-Income Consumers Rural School Bus Pilot Projects $55.0 $40.0 $9.4 8 $1,232 28 $2.7 29% Zero- and Near Zero-Emission $155.0 $153.5 TBD TBD TBD TBD TBD TBD Freight Facilities Zero-Emission Truck and Bus $85.0 $82.8 $82.8 107 $778 9 $64.5 78% Pilot Projects California Department Active Transportation $10.0 $10.0 $10.0 < 1 $163,934 3 $10.0 100% of Transportation Low Carbon Transit Operations $378.7 $305.7 $250.7 3,200 $78 441 $239.4 96% Cumulative Funding Status ($M) Implemented Projects
GHG Funds Benefiting Administering Agency Subprogram Selected & Reduction Cost per GHG Number Priority Allocated 6 Implemented Populations Awarded (1,000 ($/MTCO2e) of Projects MTCO e) 2 ($M) % California High-Speed High-Speed Rail $2,023.0 $626.0 $626.0 --8 --9 1 $0.0 0% Rail Authority California State Transit and Intercity Rail Capital $869.1 $2,715.0 $338.9 2,340 $145 21 $327.9 97% Transportation Agency Affordable Housing and $1,121.8 $572.0 $314.5 842 $374 42 $247. 2 79% Sustainable Communities Sustainable Agricultural $118 . 5 $114 . 6 $19.4 TBD TBD 15 $4.3 22% Lands Conservation Strategic Growth Council Climate Research $29.0 $23.6 $6.9 --7 N/A 8 $0.0 0% Technical Assistance $4.0 $3.2 $0.9 --7 N/A 7 $0.9 100% Transformative Climate Communities $190.0 $133.0 TBD TBD TBD TBD TBD TBD California Air Woodsmoke Reduction $8.0 $5.3 $1.3 12 $106 381 $1.2 95% Resources Board Food Production Investment $124.0 $27. 3 TBD TBD TBD TBD TBD TBD California Energy Low-Carbon Fuel Production $12.5 NEW PROGRAM FOR FY 2018 – 19 Commission Renewable Energy for Agriculture $10.0 TBD TBD TBD TBD TBD TBD TBD Community Solar $4.4 $4.4 TBD TBD TBD TBD TBD TBD Farmworker Housing Single-Family $10.8 $0.2 TBD TBD TBD TBD TBD TBD Energy Efficiency and Solar PV California Department Multi-Family Energy of Community Services $54.4 $54.4 $20.7 97 $213 5,018 $20.7 100% Efficiency and Renewables and Development Single-Family Energy Efficiency $70.3 $70.3 $51.5 185 $279 16,704 $51.5 100% and Solar Photovoltaics Single-Family Solar Photovoltaics $51.0 $51.0 $ 47. 6 137 $348 1,800 $ 47. 6 100% Alternative Renewable Fuels $3.0 $3.0 $3.0 --7 N/A 1 $0.0 0% California Department State Water Efficiency of Food and Agriculture $66.0 $61.5 $61.5 746 $83 600 $22.7 37% and Enhancement
xv California Climate Investments · 2019 Annual Report xvi California Climate Investments · 2019 Annual Report
Cumulative Funding Status ($M) Implemented Projects
GHG Funds Benefiting Administering Agency Subprogram Selected & Reduction Cost per GHG Number Priority Allocated 6 Implemented Populations Awarded (1,000 ($/MTCO2e) of Projects MTCO e) 2 ($M) %
California Department State Water Project Turbines $20.0 $20.0 $20.0 37 $542 2 $0.0 0% of Water Resources Water-Energy Grant $50.0 $44.8 $32.3 337 $96 88,917 $21.1 55% California Air Prescribed Fire Smoke Monitoring $5.5 NEW PROGRAM FOR FY 2018 – 19 Resources Board California Coastal Local Coastal Program $3.0 $1.0 TBD --7 N/A TBD TBD TBD Commission California Training and Workforce Development $24.1 $6.1 $6.1 --7 N/A 81 $2.9 48% Conservation Corps California Department Wetlands & Watershed Restoration $ 47. 2 $21.3 $21.3 571 $37 12 $13.4 63% of Fish and Wildlife Alternative Manure Management $31.5 $29.7 696 $43 54 $0.0 0% California Department Dairy Digester Research $244.0 $114 . 5 $112. 6 12,587 $9 64 $71.2 63% of Food and Agriculture and Development Healthy Soils $12.5 $5.7 $5.7 51 $111 105 $0.0 0% Fire Prevention $102.9 $75.5 $75.5 --7 N/A 39 $52.4 69% Prescribed Fire $24.5 NEW PROGRAM FOR FY 2018 – 19 California Department of Fire Prevention Grants $43.8 TBD 2,433 N/A 31 $0.0 0% Forestry and Fire Protection $404.2 Forest Health $127.1 $110.1 2,767 $40 27 $34.4 35% Urban and Community Forestry $57.8 $52.8 $38.3 261 $147 12,309 $37. 3 97% Food Waste Prevention $15.1 $9.4 $9.4 358 $26 32 $9.4 100% and Rescue Grants Organics and Recycling California Department $9.2 $2.6 $2.6 484 $5 3 $0.8 32% of Resources Recycling Manufacturing Loans and Recovery Organics Grants $85.6 $60.7 $60.7 1,293 $47 24 $51.2 84% Recycled Fiber, Plastic, $18.0 $14.0 $14.0 495 $28 6 $6.0 43% and Glass Grants Cumulative Funding Status ($M) Implemented Projects
GHG Funds Benefiting Administering Agency Subprogram Selected & Reduction Cost per GHG Number Priority Allocated 6 Implemented Populations Awarded (1,000 ($/MTCO2e) of Projects MTCO e) 2 ($M) %
California Governor’s Office Fire Engines and Equipment $25.0 NEW PROGRAM FOR FY 2018 – 19 of Emergency Services Wildfire Response and Readiness $25.0 $2.5 $2.5 --7 N/A 47 $0.0 0%
California Natural Regional Forest and Fire Capacity $20.0 NEW PROGRAM FOR FY 2018 – 19 Resources Agency Urban Greening $126.0 $100.7 $6.8 2 $3,253 5 $6.8 100% California State Coastal Climate Ready $7.0 $0.0 TBD --7 N/A TBD TBD TBD Conservancy California Wildlife Climate Adaptation and $20.0 TBD TBD TBD TBD TBD TBD TBD Conservation Board Conservation Easements San Francisco Bay Conservation and Coastal Resilience Planning $1.0 $0.1 TBD --7 N/A TBD TBD TBD Development Commission TOTAL $8,918.3 $7,354.9 $3,356.6 36,519 -- 343,298 $1,902.8 57%
6 Some administering agencies may plan for future projects by selecting projects for funding in advance of receiving appropriations to fulfil those commitments. For this reason, in some instances “Selected & Awarded” funds may exceed “Allocated” funds. The High-Speed Rail Authority does not select or award funds, so this value represents implemented funds to date. The values reported here as “Selected and Awarded” also includes “Implemented” Projects. 7 These programs have no quantified GHG emission benefit.
8 Estimated GHG emission reductions from the California High-Speed Rail project range from 64.3 to 75.9 million MTCO2e over its first 50 years of operating life, as detailed in the 2018 California High-Speed Rail Sustainability Report available at www.hsr.ca.gov/docs/programs/green_practices/sustainability/Sustainability_Report_2018.pdf. 9 GGRF funds provide a critical part of the total funds for the system, though it is difficult to estimate precisely what the ultimate GGRF investment will be, and consequently, a comparable “GGRF investment per ton of GHG reduced” metric.
NOTE: TBD indicates additional forthcoming information that is not available at the time of this report.
xvii California Climate Investments · 2019 Annual Report
BACKGROUND
Cap-and-Trade Auction Proceeds California’s integrated approach toward climate action began with the California Global Warming Solution Act of 2006 (AB 32, Nunez, Chapter 488, Statutes of 2006). AB 32 set California on a path towards a 2020 target of reducing GHG emissions to 1990 levels by 2020. Today, the State is on track to exceed its 2020 climate target while the economy continues to grow. The State is now developing and implementing measures that will achieve the goal of reducing GHG emissions to 40 percent below 1990 levels by 2030 and is laying the groundwork to meet a 2050 target of 80 percent below 1990 levels and achieve carbon neutrality. California’s 2017 Climate Change Scoping Plan describes the State’s approach to achieving our climate goals by building on the State’s successes to date, proposing to strengthen established programs while further integrating efforts to reduce both GHG emissions and air pollution. The Scoping Plan identifies a suite of economically viable and technologically feasible measures for reducing GHG emissions, including California’s Cap-and-Trade Program to ensure the State meets its ambitious targets. Figure 1 illustrates some of the key measures in achieving the State’s 2030 goal. The Cap-and-Trade Program is a market-based system that establishes a limit — or cap — on about 80 percent of statewide GHG emissions from the largest polluters (“covered entities”) in the State, and the cap declines each year. The program sets a price signal needed to drive long-term investment in cleaner fuels and more efficient use of energy. Covered entities must obtain allowances equal to their emissions. When these entities reduce emissions with equipment upgrades or efficiency improvements, the number of allowances they need also declines. A portion of their emissions may be offset by purchasing credits from non-covered entities that reduce GHG emissions or sequester carbon. Offset credits are derived from rigorously verified GHG emissions reductions or carbon sequestration projects and may be used to satisfy only a small portion of a covered entity’s emissions. This market-based system provides flexibility to covered entities to seek the lowest-cost approach to reduce emissions, and the firm cap provides certainty that statewide emissions will continue to decline. A portion of allowances are freely allocated to covered entities. For electrical distribution and natural gas utilities, the value of those allowances must be used to benefit ratepayers either by offsetting higher energy costs due to the Cap-and-Trade Program or through GHG emissions reductions. More information on utility investments is available in the “Electric utility and natural gas supplier investments” section
California Climate Investments · 2019 Annual Report 1 below. Large industrial facilities also receive some allowances at no cost to support transitioning to cleaner and more efficient technologies and discourage “leakage” of GHG emissions to other states. A portion of allowances is reserved to ensure stability in the cost of allowances. The remaining portion of allowances is available for auction.
Figure 1: California’s 2030 Vision
California’s 2030 Vision
CAP-AND-TRADE Firm limit on 80% of emissions CLEAN ENERGY At least 50% renewable electricity
Double energy efficiency in existing buildings CLEAN FUELS 18% carbon intensity reduction
High density, transit-oriented housing
NATURAL & WORKING Walkable & bikable communities LANDS CLEAN TRANSIT RESTORATION On-road oil demand 100% of new buses 15-20 million metric reduced by half are zero-emission tons of reductions
CLEAN CARS Over 4 million affordable REDUCE “SUPER POLLUTANTS” electric cars on the road 40% reduction in methane and HFCs SUSTAINABLE FREIGHT Transitioning to zero emissions everywhere feasible, and near-zero emissions with renewable fuels everywhere else
2 California Climate Investments · 2019 Annual Report Proceeds from the sale of State-owned allowances are deposited into the GGRF for California Climate Investments. To date, the quarterly auctions have generated $9.5 billion for the GGRF. When the Legislature established the GGRF, it set several requirements for California Climate Investments. The funds must facilitate GHG emission reductions, benefit priority populations, and maximize other economic, environmental, and public health benefits where applicable and to the extent feasible. For more information on this and subsequent legislation related to California Climate Investments, visit ww2.arb.ca.gov/resources/documents/cci-legislative-guidance. The Legislature appropriates money from the GGRF to State agencies consistent with the Investment Plan. These administering agencies design and implement programs; establish eligibility requirements; develop guidelines and solicitation materials; and select, award, and implement projects. Figure 2 shows the cumulative deposits into and appropriations from the GGRF.
Figure 2: Cumulative State Auction Proceeds and Appropriations
10 000
000 Appropriations
Auction Proceeds 000 Millions 000
2 000
0 e 1 e e 1 e e 1 e e 1 e e 1 e e 1 e Au 1 Au 1 Au 1 Au 1 Au 1 Au 1 ov 1 ov ov 12 ov ov 1 ov ov 1 ov ov 1 ov ov 1 ov ov 1 ov a 1 a 1 a 1 a 1 a 1 a 1
Electric Utility and Natural Gas Supplier Investments California Climate Investments are funded through the sale of the portion of allowances owned by the State at quarterly auctions. Electrical distribution utilities and natural gas suppliers are participants in the Cap-and-Trade Program and may consign allowances to be sold at quarterly auctions. These entities must use their auction proceeds for the benefit of ratepayers and annually report to CARB on how the funds were spent. Electric utilities use auction proceeds to fund a variety of measures including: energy efficiency projects, electric vehicle infrastructure, renewable energy, and customer rebates. One example is the California Climate Credit, which, for investor-owned utilities, has provided direct bill credits since 2014 to protect households and eligible small businesses from costs associated with reducing GHG emissions and complying with Cap-and-Trade regulations. In 2018, natural gas suppliers began providing households with an annual natural gas Climate Credit. CARB provides summaries of how utilities used their auction proceeds, available at www.arb.ca.gov/cc/Cap-and-Trade/allowanceallocation/EDU-NG-allowance-value.htm.
California Climate Investments · 2019 Annual Report 3 Policy Framework The Department of Finance (Finance), the California Environmental Protection Agency (CalEPA), and CARB provide an overarching administrative framework for agencies administering California Climate Investments. Together, Finance, CalEPA, and CARB are responsible for developing tools, plans, guidelines, methodologies, reports, and other resources. These documents create a framework for ensuring that California Climate Investments meet the State’s goals related to climate change, equity, and accountability for the use of public funds. Guidance documents and tools are developed through extensive dialogue with administering agencies, funding recipients, and members of the public. These materials provide important venues for public input that contribute to shaping the California Climate Investments framework and improving program transparency. Guidance documents and tools are updated periodically to reflect new legislation, updated information, or stakeholder feedback.
Investment Plan State law requires the Department of Finance, in consultation with CARB and other State agencies, to submit a three-year Investment Plan to the Legislature to guide the investments of Cap-and-Trade auction proceeds. The Third Investment Plan was submitted in 2019.
Funding Guidelines State law requires CARB to develop guidance for all State agencies that receive appropriations for California Climate Investments programs, including guidance on reporting, quantification methods, and maximizing benefits to disadvantaged communities. Administering agencies use the Funding Guidelines to design and implement programs that meet the State’s statutory and policy objectives for California Climate Investments. The Funding Guidelines ensure that investments achieve GHG emission reductions; benefit disadvantaged communities, low-income communities, and low-income residents; and provide transparency and accountability of the funds. CARB updated this document in 2018.
THIRD INVESTMENT PLAN FOR FISCAL YEARS FY 2019-20 THROUGH 2021-22 The Third Investment Plan recommends that the Legislature: 1. Continue to invest in existing programs and prioritize programs that: i. Emphasize meaningful community input in program modifications and project solicitation and design, and fund community-led projects, both community-wide and on a small-scale. ii. Achieve near-term climate and health benefits and contribute to long-term transformation to low-carbon communities and ecosystems that are adaptable and resilient. 2. Provide funding certainty over multiple years for more of the existing California Climate Investments programs to better support Legislative priorities. 3. Support job training and apprenticeship opportunities, with a focus on disadvantaged communities, to provide the State’s workforce with the job skills necessary to transition to a low-carbon economy. The first two Investment Plans focused on project types that achieve GHG emission reductions and investments in disadvantaged communities. The Legislature appropriated funding consistent with those priorities. The Third Investment Plan builds on past efforts and existing programs. In 2018, CARB, as required, held two public workshops and a public hearing on the Third Investment Plan. In February 2019, the Department of Finance submitted the Third Investment Plan, which identifies current funding priorities and future opportunities.
4 California Climate Investments · 2019 Annual Report 2018 FUNDING GUIDELINES UPDATE The updated Funding Guidelines allow flexibility for new programs that facilitate GHG emission reductions, increase focus on providing important co-benefits, and improve accountability and transparency. California Climate Investments have been successful in reducing GHG emissions and reaching disadvantaged communities.
The Legislature and administering agencies have learned from early years of implementation and identified areas to improve. In 2018, CARB updated the Funding Guidelines to reflect and build on that progress. The updated Funding Guidelines now require administering agencies to quantify and report on a suite of co-benefits. The Funding Guidelines also include an increased emphasis on fostering job creation and require all projects to estimate and report potential future jobs benefits when projects are awarded funds. After projects are implemented, large projects and projects that claim employment benefits for priority populations must also report information on the quantity and quality of jobs benefits provided.
Quantification Methodologies As part of providing guidance to administering agencies, CARB develops quantification methodologies supported by empirical research to estimate project-level GHG benefits and other project benefits. CARB currently maintains 35 quantification methodologies with accompanying calculator tools. Administering agencies may use Expected Benefits to select projects for funding and demonstrate that investments facilitate GHG emission reductions. Administering agencies must use and report benefits from a CARB quantification methodology to quantify GHG emission reductions if one exists for the project type. Some project types will not have quantifiable GHG emission reductions, and administering agencies need to develop a qualitative assessment to demonstrate how expenditures facilitate GHG emission reductions and support State goals. Project Reporting All administering agencies are required to track project status and report the Expected Benefits. CARB supports this effort by providing standardized reporting templates and consolidating the data reported from all administering agencies. Administering agencies are responsible for collecting and submitting project information and submitting data twice a year. Reporting consistency provides transparency on project outcomes and meeting statutory requirements, including benefits to priority populations. This report includes data collected at the time projects are implemented. Administering agencies also report information on a subset of projects to show ongoing progress of projects after they are operational or completed. Over the past year, many projects are nearing completion, and in 2018 agencies began reporting project outcome information. As an early example of outcomes, CDFA reported that 27 completed agricultural water-energy efficiency projects saved an average of more than 100,000 kilowatt-hours each over a single growing season. CARB will publish project outcome data from operational projects as agencies report more information.
California Climate Investments · 2019 Annual Report 5 CO-BENEFIT QUANTIFICATION The value of California Climate Investments extend far beyond CO-BENEFIT METHODOLOGIES GHG emission reductions. Continued legislation and stakeholder feedback have highlighted the importance of these investments to achieve economic, environmental, and public health co-benefits. An initial set of standardized assessment methods • Jobs for 10 co-benefits are now available to agencies to quantify • Air pollutant emissions the benefits of their projects. • Travel cost savings Of note, the new Job Co-benefit Modeling Tool provides a • Vehicle miles traveled prospective estimate of each project’s employment benefits. This • Energy and fuel cost savings tool uses an input-output model developed by the U.S. Bureau of Economic Analysis to estimate direct, indirect, and induced jobs • Water savings likely to be supported by each project based on total project costs • Soil health and conservation and the main funded activities (e.g., new construction, procurement • Climate adaptation of electric vehicles, forestry, and the like). Agencies must report • Community engagement estimated employment benefits from every project using this • Heart and lung health co-benefit assessment method.
Broader Impact For the past two decades, California has taken the lead on tackling the global challenge of climate change. Complementary to the State’s current GHG reduction targets, previous Administrations and Legislatures have put forth mandates for producing energy from renewable sources, shifting the State’s automobile fleet to zero-emission vehicles, coordinating transportation and land use plans to promote cleaner and more efficient modes of travel, and achieving carbon neutrality. California Climate Investments are a critical component of the measures needed to meet our GHG targets identified in the Scoping Plan. California Climate Investments projects are helping drive progress and serve as examples of how the State can approach many other important State goals, including: • Sustainable Communities: SB 375 (Steinberg, Chapter 728, Statutes of 2008) incentivizes regional and local development patterns that promote better accessibility between people and their destinations through low‑carbon and convenient transportation choices. Regional metropolitan planning organizations in California are required to develop Sustainable Communities Strategies, or long-range plans, which align transportation, housing, and land use decisions toward achieving GHG reduction targets set by CARB. California Climate Investments consisting of coordinated projects that improve mobility through transit-oriented development, urban greening, and walkability and bikeability serve as prime examples of SB 375 implementation. • Reducing Emissions from Freight: The California Sustainable Freight Action Plan calls for improved freight efficiency, transition to zero-emission operations, and increased competitiveness of California’s freight system. In addition to funding heavy-duty engine replacements, California Climate Investments programs support pilot and demonstration projects for advanced technologies that lay the groundwork for the large-scale deployment needed to transition the freight system and protect community health.
6 California Climate Investments · 2019 Annual Report EMERGING INITIATIVES California Climate Investments address climate change and other important issues. Agencies can and have adapted programs to address emerging initiatives, a few of which are introduced below. As you read the report, note the use of icons to indicate which programs and projects contributing to these initiatives.
JOBS: California Climate Investments have been putting people to work on clean transportation, clean energy, and sustainable natural resources projects. Projects support employment and workforce development, as well as a just transition to a low-carbon economy.
WILDFIRE & RESILIENCY: Tragic natural disasters in recent years illustrate California’s extreme vulnerability to the impacts of climate change. In 2018, California experienced the largest, deadliest, and most destructive wildfires in State history. Wildfire smoke covered nearly the entire State, caused more than 1 million children to miss school, resulted in over 100 deaths, and destroyed the town of Paradise — all while communities statewide continue to recover from previous fire disasters. Many California Climate Investments programs and projects are taking steps to reduce wildfire risk and build resilient communities to adapt to a changing climate.
COMMUNITY FOCUS: California’s communities want a voice in how investments are made. More than ever, State agencies are responding by building partnerships and collaborating on the ground with community members and advocacy groups. The California Climate Investments program is leading a change in the way the State implements incentive programs by engaging with communities throughout program design and implementation, and selecting projects aligned with community needs.
California Climate Investments · 2019 Annual Report 7 • Renewable Energy and Energy Efficiency: SB 100 (De León, Chapter 312, Statutes of JOBS 2018) sets a vision for the State to get 100 California Climate Investments percent of its energy from renewable sources are putting Californians to by 2045. SB 100 also expedites the existing work on clean transportation, requirements that 50 percent of the electricity sold to retail consumers be produced by clean energy, transit-oriented renewable sources to 2026. California Climate affordable housing, and Investments projects help achieve this goal sustainable natural resources projects. Programs by incorporating renewable infrastructure can support a just transition to a low-carbon where feasible, such as in transit stations economy by enabling workforce development and residential housing, as well as funding through job training programs, providing direct community solar facilities. SB 350 (De León, employment across the State, and targeting these Chapter 547, Statutes of 2015) aims to reduce benefits to priority populations. California Climate GHG emissions in the electricity sector and Investments programs also indirectly support jobs sets a 2030 goal of doubling energy efficiency savings in electricity and natural gas. California in California industries that supply the goods and Climate Investments in energy efficiency projects services needed to implement projects. Lastly, jobs demonstrate effective practices necessary to directly and indirectly supported by California achieve these goals. Climate Investments generate additional • Carbon Neutrality: In September 2018, household demand for goods and services, which Governor Brown signed Executive Order supports induced jobs throughout the California B-55-18, which establishes a goal for the economy. In 2018, the UCLA Luskin Center for State to achieve carbon neutrality by 2045 Innovation released a report that estimated the and maintain net-negative emissions after that. number of jobs supported by California Climate Carbon neutrality will require both reductions in GHG emissions and resilient carbon storage Investments programs from 2013 to 2016. and increased sequestration, particularly in our The report estimated that the $2.2 billion in natural and working lands. appropriations made in that period would support • Natural and Working Lands almost 20,000 jobs in California. Implementation Plan: In January 2019, a consortium of State agencies released a draft Implementing legislation emphasized the Natural and Working Lands Implementation importance supporting of California workers and Plan that sets forth a united approach that will businesses (AB 1532) and prioritized investments move California toward maintaining a resilient in disadvantaged communities (SB 535 and AB carbon sink and improving air and water 1550). The Legislature and stakeholders have quality, water availability, wildlife habitat, expressed a need for a robust, standardized recreation, and other benefits. The Natural and tracking system for measuring the quantity and Working Lands Implementation Plan lays the quality of employment benefits. As an example of groundwork for the additional work necessary data reported in 2018, CalRecycle’s Food Waste to meet our goals and cites California Climate Investments as an integral component in Prevention Program projects are supporting 78 incentivizing projects that reduce emissions and full-time equivalent jobs with an average hourly sequester carbon. wage of $23. More than 8,000 project work hours have been performed by priority populations.
8 California Climate Investments · 2019 Annual Report • Building Resiliency in Forests: Released in 2018, the California Forest Carbon Plan was created in response to increased wildfire activity, an intense wave of tree mortality following years of drought, and a need to ensure the resilience of California forests. This plan calls for greatly increasing the pace and scale of forest restoration efforts, including new efforts to use prescribed burns to reintroduce fire into ecosystems and remove hazardous fuels. Unlike wildfires, prescribed fires are only permitted to burn when weather forecasters predict the exposure of people and communities to smoke will be limited. In support of the Forest Carbon Plan, the Legislature increased funding to existing California Climate Investments programs that work to create more fire-resilient communities and ecosystems and also created several new programs to reduce wildfire risk through controlled burns and protect public health from smoke exposure. New Legislation Several key pieces of legislation related to California Climate Investments passed in 2018, including annual appropriations, new ongoing appropriations, the establishment of new programs, and a focus on technical assistance. • Annual Appropriations: SB 840 (Committee on Budget & Fiscal Review, Chapter 29, Statutes of 2018) and SB 856 (Committee on Budget & Fiscal Review, Chapter 30, Statutes of 2018) appropriate FY 2018 – 19 funds to existing and new programs. • Ongoing Appropriations: SB 901 established new ongoing appropriations for forestry investments through FY 2023 – 24 and requires CARB to improve methods for quantifying the benefits of such investments. • New Program: SB 1013 (Lara, Chapter 375, Statutes of 2018) established the Fluorinated Gases Emission Reduction Incentive Program administered by CARB to promote the adoption of new refrigerant technologies to achieve short- and long-term climate benefits, energy efficiency, and other benefits. • Technical Assistance: SB 1072 (Leyva, Chapter 377, Statutes of 2018) established a regional Climate Collaborative program to assist underresourced communities in accessing grant money for climate change mitigation and adaptation projects, including California Climate Investments. The bill charged the Strategic Growth Council with developing technical assistance guidelines for all agencies administering California Climate Investments. In addition, AB 2377 (Irwin, Chapter 868, Statutes of 2018) requires California Department of Food and Agriculture to establish a technical assistance program for two California Climate Investments agricultural programs. • Additional Legislation: SB 1119 (Beall, Chapter 606, Statutes of 2018) changed the way the Low Carbon Transit Operations Program can count investments as benefiting disadvantaged communities. Transit agencies will implement SB 1119 beginning in 2019 and these projects will be included in the analysis of benefits to priority populations in future Annual Reports. For more information on legislation that influences California Climate Investments, visit ww2.arb.ca.gov/resources/documents/cci-legislative-guidance.
California Climate Investments · 2019 Annual Report 9 PRIORITY POPULATIONS
All Californians are impacted by climate change. However, certain populations are especially vulnerable to its impacts or need additional assistance to be a part of the State’s climate solution. Disadvantaged communities in California face disproportionate impacts from substandard air quality in the form of higher rates of respiratory illness, hospitalizations, and premature death. Lower income households tend to spend a greater share of their income to pay for energy intensive goods such as electricity, heating, and transportation and the policies necessary to meet our climate goals can increase those costs. Recognizing that these Californians are particularly vulnerable to climate change, legislation requires at least 35 percent of California Climate Investments must benefit these “priority populations,” which include disadvantaged communities, low-income communities, and low-income households. California Climate Investments are exceeding those statutory requirements. Initial legislation in 2012 (SB 535) set minimum investments for projects that benefit disadvantaged communities and projects that are located within disadvantaged communities. In 2016, AB 1550 replaced the investment minimums for disadvantaged communities introduced by SB 535 and established new investment minimums for low-income communities and low-income households. AB 1550 requires the available monies for California Climate Investments be minimally allocated as follows: • 25 percent to projects located within the boundaries of, and benefiting individuals living in, disadvantaged communities. • 5 percent to projects that benefit low-income households or to projects located within the boundaries of, and benefiting individuals living in, low-income communities located anywhere in the State. • 5 percent to projects that benefit low-income households that are outside of, but within a half mile of, disadvantaged communities, or to projects located within the boundaries of, and benefiting individuals living in, low-income communities that are outside of, but within a half mile of, disadvantaged communities.
HOW PRIORITY POPULATIONS ARE DETERMINED CalEPA designated individual census tracts as disadvantaged communities using the CalEnviroScreen screening tool. More information is available at www.calepa.ca.gov/EnvJustice/GHGInvest. AB 1550 defines low-income as communities and households with incomes at or below: 1) 80 percent of the statewide median income, or 2) the threshold designated as low-income by California Department of Housing and Community Development’s list of State income limits.
10 California Climate Investments · 2019 Annual Report The AB 1550 investment requirements apply to the overall California Climate Investments portfolio, rather than to each individual administering agency’s program. CARB collaborates with administering agencies to develop individual targets for each program to drive investments that achieve direct and meaningful benefits to priority populations and help ensure that the statutory investment minimums for California Climate Investments as a whole are met. Investment targets are created annually and are available at www.arb.ca.gov/cci-fundingguidelines. To count a project toward the investment minimums, administering agencies must show that a project provides direct, meaningful, and assured benefits and meets an important community need according to CARB’s Funding Guidelines. CARB works with administering agencies to develop criteria for providing benefits to priority populations and solicits input through a public comment process. The Funding Guidelines include other requirements and guidance for targeting investments to priority populations. Each project can only be counted as benefiting a single priority population. However, these projects may provide benefits to more than one priority population (e.g., both residents of disadvantaged communities and low-income households). Cumulative Benefits to Priority Populations Equity has always been a foundational part of California Climate Investments, and investments continue to reach the State’s most vulnerable populations. Figure 3 shows that 57 percent ($1.9 billion) of the $3.4 billion in cumulative investments made through 2018 are benefiting priority populations. Projects awarded prior to August 2017 were subject to the investment requirements in SB 535; since then, projects awarded are subject to AB 1550.10
Figure 3: Cumulative Investments Benefiting Priority Populations
Other Areas of California 43%
57%
Benefiting priority populations
10 While current legislation (AB 1550) expands the percentage of projects located in and benefiting disadvantaged communities, it does not include targets for projects located outside of disadvantaged communities that also provide a benefit to those communities. Projects funded prior to 2017 counted toward the statutory targets if they were located outside that community but met criteria for providing a direct, meaningful, and assured benefit to a disadvantaged community. Project selected for funding after 2017 no longer count as “benefiting disadvantaged communities,” because all projects must both benefit and be located in disadvantaged communities in order to count toward the statutory investment minimums.
California Climate Investments · 2019 Annual Report 11 Statutory Investment Minimums Since August 2017, agencies have been implementing programs to benefit an expanded definition of priority populations, consistent with the direction in the Funding Guidelines on implementing AB 1550. Out of the $3.4 billion in projects to date, $1.1 billion are subject to AB 1550 requirements. Of those, 60 percent are benefiting priority populations (Figure 4). SB 535 required 25 percent of funds to benefit disadvantaged communities and 10 percent to be located within a disadvantaged community. Projects subject to this requirement continue to report on progress, and of the $2.2 billion in projects awarded under SB 535 requirements, 54 percent are benefiting disadvantaged communities (Figure 4).
Figure 4: Cumulative Investments Contributing to Statutory Investment Minimums
40% 46%
34% 39%
5% 20% 16%
SB 535 August 2017 AB 1550
lo ate in enefitin isa vanta e ommunities lo ate outsi e of enefitin isa vanta e ommunities lo ate in enefitin lo in ome ommunities ouse ol s ot er areas of California lo ate in enefitin lo in ome ommunities ouse ol s it in a mile of isa vanta e ommunities
12 California Climate Investments · 2019 Annual Report
OUTREACH
Awareness and Outreach Reaching priority populations is critical to the success of California Climate Investments. In addition to the investment requirements, administering agencies must design programs to target funding, meaningfully address community identified needs, and provide tangible benefits to priority populations. More than ever, agencies are involving communities throughout the many stages of program development and implementation. Administering agencies continue to improve public engagement and expand the range of program awareness. Year over year, agencies continue to expand the number of events held (Figure 5), and in 2018 alone had more than 25,000 participants.
Figure 5: California Climate Investments Outreach Statistics
476 events 133 cities
359 events 81 cities
219 events 62 cities
14 California Climate Investments · 2019 Annual Report Outreach and engagement activities included traditional program workshops, bus tours across impacted neighborhoods, webinars and online workshops, conferences convened by community and advocacy organizations, truck shows, festivals, presentations at tribal roundtables, and tours to hear lessons learned. Diversifying the kinds of outreach activities allows agencies to engage with more Californians, in more communities, in more places. More than 90 events included remote participation, so that people anywhere in California could participate. A complete list of outreach events by agency and program is available at www.caclimateinvestments.ca.gov. In addition to the efforts from individual administering agencies, CARB facilitates outreach for all Climate Investments through a contract with the Foundation for California Community Colleges (Foundation). The Foundation works to raise awareness of California Climate Investments funding opportunities in disadvantaged and low-income communities. In 2018, the Foundation attended 45 community CONNECT WITH CALIFORNIA events across the State, including Chinese New Year CLIMATE INVESTMENTS parades, Earth Day celebrations, family health fairs, agricultural festivals, and Native American pow wows. The Foundation’s events had a combined @CAClimateInvest attendance of more than 116,000 attendees, and Foundation staff spoke directly with more than 5,600 1-800-757-2907 English & Español people. This outreach increases the visibility of the program and provides a forum to ask questions and discuss individual programs. The Foundation distributes materials and information about funding opportunities, and follows up with people interested in sharing information with others in their community. The Foundation continues to operate a telephone hotline, social media accounts, and email for general questions about California Climate Investments, and distributes an electronic newsletter. Social media ads reached more than 420,000 people in 2018. The Foundation used their relationship with community colleges to train operators of “Smog Check Referee” stations and phone hotlines on clean car rebates to inform people struggling to pass a smog check about funding available to buy a newer, cleaner vehicle. The Foundation also connected with dozens of student organizations on college campuses to share information about California Climate Investments, and launched the Student Ambassador program in the spring of 2018. Together, administering agencies and the Foundation are increasing the number of events and hosting events in diverse locations throughout the State (Figure 6).
California Climate Investments · 2019 Annual Report 15 Figure 6: California Climate Investments Public Outreach Events in 2018
16 California Climate Investments · 2019 Annual Report Student Ambassador Profile NAME: Isabel CURRENT ENROLLMENT: Riverside City College GOAL: Earn B.S. & position at Engineers Without Borders Isabel – a second-year, trilingual, mechanical engineering student at Riverside City College – has been passionate about environmental issues since she was a small child. Born in Bolivia, Isabel moved to Southern California with her family at age 7. Isabel’s mom created beach and park “clean-up games” for her and her siblings to pick up trash, instilling the importance of taking care of and protecting the environment from a young age. According to Isabel, “growing up with these clean-up events shaped my need to get involved with environmental reform, especially within disadvantaged communities.” Initially, Isabel dreamed of attending film school, with interests ranging from short film, music video, and environmental documentary production, the latter specifically focusing on environmental justice issues. The student ambassador program has But in high school, Isabel took an environmental been a great experience for me. I’ve science class, inspiring her to shift her focus to studying been able to connect with people of environmental policy, and later, mechanical engineering. all backgrounds and engage them While acknowledging the importance of documentaries in conversation about important to bring public awareness to the numerous environmental environmental issues, which is very issues currently plaguing our planet, Isabel was intrigued fulfilling.” by the possibility of designing machinery to help reduce – Isabel plastic in our oceans. A supporter of the Netherlands- based nonprofit The Ocean Cleanup, Isabel has a deep love for “practical design approaches that can make an immediate difference.” She hopes to focus her future engineering work on ocean cleanup, with an eye towards protecting marine life and collaborating with scientists and other engineers to prevent plastics from ever entering our fragile marine ecosystem. A STEM friend first alerted Isabel to the California Climate Investments student ambassador program, for which she applied and was accepted in Fall 2018. Through the California Climate Investments student ambassador program, Isabel has had the opportunity to engage diverse audiences in discussion of topics close to her heart. Recently, she gave a wildfire prevention presentation at the University of California, Riverside, in addition to representing California Climate Investments at Las Posadas de Riverside Holiday Celebration through impactful tabling. Isabel is on the path to completing her associate’s degree at Riverside City College and transferring to a four-year university to complete her bachelor’s degree in mechanical engineering. Upon completing her degree, her goal is to work for Engineers Without Borders, a Boulder, CO-based nonprofit that designs and implements solutions for engineering projects worldwide that are community-based, community- owned, and community-maintained.
California Climate Investments · 2019 Annual Report 17 The California Climate Investments website (www.caclimateinvestments.ca.gov) is a central hub for program information and had more than 25,000 unique visitors in 2018 alone. Also in 2018, staff launched a shared event calendar, which administering agencies update with program milestones such as workshops, technical assistance events, and application deadlines to provide a single source for relevant program information. Technical Assistance and Capacity Building Equity is a key principle of California Climate Investments. Recognizing that applicants, particularly those in disadvantaged communities, often face challenges in accessing funding opportunities, the Legislature has appropriated funds specifically to provide technical assistance to improve their capacity to identify and apply for California Climate Investments. To date, the Legislature has appropriated $4 million to the Strategic Growth Council for the California Climate Investments Technical Assistance Program to prepare organizations serving disadvantaged communities to access California Climate Investments programs — including, but not limited to, those administered by Strategic Growth Council. The type of support provided by the California Climate Investments Technical Assistance Program varies by program. A pilot program was established beginning in 2018 with the Low Carbon Transit Operations Program (LCTOP) and the Transit and Intercity Rail Capital Program (TIRCP) to help determine the best strategies transit agencies can implement towards enhancing the benefits of projects located in disadvantaged communities. For the LCTOP’s technical assistance, two consulting firms with records of engaging in community outreach and transportation planning were selected. The scope of work for LCTOP technical assistance included coordinating meetings for transit agencies and community-based organizations across California, to increase program awareness and facilitate new government-community based organizational partnerships. For the TIRCP’s technical assistance, one consulting firm was selected to help coordinate between four transit agencies, whose projects were awarded from the 2018 TIRCP award cycle to enhance project benefits located in disadvantaged communities. Both LCTOP and TIRCP Technical assistance pilot programs received additional funding to provide financial support for community-based organizations that agreed to participate with each respective program. Outside of the established Technical Assistance Program, agencies are encouraged, through the Funding Guidelines, to set aside appropriated funds to provide direct technical assistance where needed. Interagency Coordination Administering agencies continue to work together and share resources and strategies that improve program implementation, including creation of a coordinated workgroup for strategic outreach to priority populations. Agencies formed an interagency outreach workgroup in 2015 to share lessons and coordinate outreach, and it continues to grow in membership and collaboration. The workgroup, initially composed of administering agencies, has expanded to include outreach and technical assistance partners, as well as staff from programs that intersect with Climate Investments. The workgroup gathers monthly to share lessons, have open dialogue, and discuss ways to improve outreach efforts. As a result, staff from one program are inviting other program staff to outreach events and workshops to bring and present information on multiple funding opportunities, and agencies regularly co-host workshops and events. This coordination builds interagency staff capacity to implement effective outreach through shared knowledge and experience and to leverage resources for coordinated and focused investments.
18 California Climate Investments · 2019 Annual Report Accountability and Transparency Accountability and transparency continue to be essential elements for all California Climate Investments. The public needs to know how agencies are investing funds and how those investments provide benefits, including those to priority populations. Agencies are now in the second year of using an online system for tracking and reporting on projects. The reporting system improves consistency across programs, facilitates greater public access to data, and allows for more frequent reporting of data. 2018 marked the first year of administering agencies reporting data twice a year. In July 2018, CARB released updated semi-annual information on the California Climate Investments Project Map — an interactive map displaying project locations in a downloadable and searchable format to support independent analysis of investments data. The Administration continues to host a website to provide a user-friendly and accessible web presence for California Climate Investments, and to communicate the program’s benefits, achievements, progress, and updates to the public. The website includes descriptions of agency programs, current funding opportunities, upcoming agency events, and more. The website information from this and previous Annual Reports to the Legislature, as well as links to the California Climate Investments Project Map is available at www.caclimateinvestments.ca.gov.
COMMUNITY LEADERSHIP SUMMIT On March 12, 2018, agency outreach staff collaborated in hosting a Community Leadership Summit: Best Practices in Building Successful Projects. This Summit brought together more than 200 community members, advocates, technical assistance providers, outreach partners, local governments, and State agencies in Riverside to discuss how California Climate Investments can fund impactful projects that meet community needs. Panels and interactive discussion groups led by community leaders and agency staff fostered fruitful conversations and mutual learning. The workgroup synthesized information from the Summit, and observations from years of implementing these programs, into a Best Practices in Community Engagement and Building Successful Projects document, which is available at www. caclimateinvestments.ca.gov/community-leadership-summit-2018. The document provides a roadmap for improving community leadership and engagement, with core values and practical examples. State agency staff, contractors and awardees, and community partners can use the document at several stages in program and project development and deployment.
California Climate Investments · 2019 Annual Report 19
OUTCOMES FROM 2018
Planned Investments In addition to the $3.4 billion in implemented projects, administering agencies have more than $7.4 billion of projects in the pipeline, such as the full High-Speed Rail project and several major transformative transportation and housing projects. These planned investments, those that are selected and awarded but not yet fully implemented, are expected to reduce GHG emissions by at least an
additional 92 million MTCO2e (Figure 7).
Figure 7: Estimated GHG Emission Reductions from Planned Investments
Cumulative GHG Emission Reductions from Planned Investments
100 MMT
80 MMT
60 MMT
High-Speed Rail Project 40 MMT
20 MMT Transit & Intercity Rail Capital Projects
Other Selected Projects 0 MMT
Future Projects
California Climate Investments · 2019 Annual Report 21 Co-benefits Agencies are beginning to report on important co-benefits, which support other Legislative priorities, State goals, and community benefits. In the coming years, more data will become available to better represent the wide range of benefits being achieved in addition to GHG reductions. While only a subset of projects currently have quantified co-benefits, early co-benefit reporting efforts demonstrate how these programs are achieving benefits beyond GHG emission reductions. Table 1 highlights a few of the quantified outcomes expected over the life of the projects implemented in 2018 alone.
Table 1: 2018 Co-benefits from a Subset of California Climate Investments Projects
Co-benefits Outcomes from 2018
NOX Emission Reductions 7,000 tons PM2.5 Emission Reductions 475 tons Diesel PM Emission Reductions 330 tons Renewable Energy Generated 747 GWh Energy Savings 161 GWh of electricity and 268 therms of natural gas Water Savings 85 billion gallons Natural and Working Lands Treated, Restored, or Preserved 247,667 acres Trees To Be Planted 3.6 million
Reductions in the criteria air pollutants and toxic air contaminants from all sectors improve community health. Implemented projects are cumulatively expected to result in fewer incidents of premature cardiopulmonary mortality, hospitalizations for cardiovascular and respiratory illness, and emergency room visits for respiratory illness and asthma. These numerical outcomes are expected to grow substantially as more projects use the enhanced tools and reach the implemented stage. In addition to quantitative benefits highlighted above, California Climate Investments programs support a range of other activities that help the State meet some of its most pressing challenges. The Strategic Growth Council’s Affordable Housing and Sustainable Communities program, for example, has made investments to create more than 3,200 units of affordable housing near transit. The Strategic Growth Council structured the program to encourage local agencies and developers to plan and build projects together that address the State’s serious housing crisis, mobility, and climate goals. The new and rehabilitated housing developments funded include active transportation infrastructure and are located in close proximity to public transit, providing low-income families benefits that go far beyond the availability of shelter and a reduction in vehicle miles traveled and GHG emissions from transportation. The Affordable Housing and Sustainable Communities program, along with a number of other programs including the High Speed Rail project, Transit and Intercity Rail Capital Program, the Low Carbon Transportation and Operations Program, Active Transportation Program, and Urban Greening Program also increase access to transit and bicycle and pedestrian facilities, which lowers transportation costs, expands opportunities for employment, and can provide health benefits and time savings from shorter and more active commutes. A suite of California Climate Investments programs are also tackling the challenge of adapting communities and ecosystems to the effects of climate change. A number of projects result in climate adaptation co-benefits based on their ability to reduce vulnerabilities to extreme heat, drought, sea level rise and inland flooding, agricultural productivity and conservation, species habitat, and wildfire.
22 California Climate Investments · 2019 Annual Report New Programs Established in 2018 Clean Mobility in Schools $10 M CARB's Clean Mobility in Schools program is a new transportation equity project being funded through CARB’s Low Carbon Transportation Program pursuant to SB 1275 (De León, Chapter 530, Statutes of 2014). The grant program will deploy scalable clean transportation and mobility strategies for reducing GHG emissions from schools in disadvantaged communities. Strategies may include electric vehicles and electric vehicle supply equipment in schools (K – 12), car sharing for staff at schools to rotate using zero- emission vehicles, and outreach to students, parents and the community. Low Carbon Fuel Production Program $12.5 M The California Energy Commission will provide incentives to support low-carbon fuel production projects in California. The program will support new and expanded renewable ultra-low carbon transportation fuel production at commercial scale, helping the State’s fuel industry work towards a low-carbon future. Fire Engines and Equipment Program $25 M The California Governor’s Office of Emergency Services (Cal OES) will fund the procurement and maintenance of fire engines for local fire agencies and support of the California Fire and Rescue Mutual Aid System. The goal of the program is to increase and maintain emergency response capabilities within the State’s Fire and Rescue Mutual Aid System in order to help protect communities from wildfires and other disasters. Prescribed Fire Smoke Monitoring Program $5.5 M CARB’s new program will enhance air quality monitoring for prescribed fires and provide a public awareness campaign regarding prescribed burns. The intent of the program is to protect public health while optimizing the existing prescribed burning program to help achieve the goals called for in the California Forest Carbon Plan. The program will provide grants to local air districts to facilitate increased smoke monitoring, utilize a common reporting platform for prescribed fire information, and develop an app that the public can use to understand smoke impacts in their area and learn how to minimize health impacts. Prescribed Fire Program $24.5 M CAL FIRE will create six crews of wildland fire professionals dedicated to increasing the pace and scale of fuel reduction and land restoration treatments in support of the California Forest Carbon Plan. These crews will be located around the State and will conduct prescribed burns and other fuel reduction treatments to help protect communities from wildfires, create healthier and more climate-resilient ecosystems and watersheds, and stabilize carbon stored in natural lands. Regional Forest and Fire Capacity Program $20 M The purpose of this new California Natural Resources Agency program is to increase local capacity in the northern, central, and southern regions of the State to develop region-wide plans and shovel-ready projects for forest restoration, fire protection, and watershed improvements in support of the California Forest Carbon Plan. The program will provide block grants to regional entities that will distribute funding to local organizations to assist in the creation of a regional plan, to develop specific projects, and to implement demonstration projects. Some grant funds will also be available statewide for project implementation.
California Climate Investments · 2019 Annual Report 23 WILDFIRE EMISSIONS During 2017, 1.2 million acres burned in California wildfires. While the death and property destruction caused by these fires often dominates headlines, the smoke emitted by uncontrolled fires can have severe and widespread consequences for public health, increasing respiratory problems and mortality rates. In addition, these fires emitted an estimated 37.1 million metric tons
of CO2, equivalent to approximately 10 percent of all anthropogenic CO2 emissions in the State.
While wildfires and anthropogenic activities may emit similar amounts of CO2, these emissions have very different
influences on the global carbon cycle. The CO2 emitted from anthropogenic activities comes largely from fossil fuels, bringing carbon to the surface that had been stored deep in the Earth for millions of years. In contrast, fire is a natural component of many natural and working lands, necessary to support biodiversity, and an important
regulator of ecosystem function. The CO2 emitted by wildfires is a natural part of the carbon cycle, which is constantly moving carbon between the atmosphere and biosphere through the processes of photosynthesis, respiration, and combustion. When emissions from wildfires and other disturbances are not balanced by new plant
growth and carbon sequestration in other areas, this has a dramatic impact on atmospheric CO2. Over the last several decades, wildfire activity consistently increased across the western United States. In California, four of the five largest fires in State history have occurred in the last six years and most of the largest, deadliest, and most destructive fires in State history have occurred in the last 20 years. The increases in wildfire activity have been attributed to both changes in climate and shifts in land management, including a century of fire suppression policy. Across much of California and the western United States, emissions from increasing wildfire activity have counteracted many of the gains made in controlling pollution from transportation and industry over the last several decades. California Climate Investments in forestry and wildfire protect communities from wildfire, restore ecosystems, secure carbon sequestered in natural lands, and create more resilient forests.
Cross-sectoral Investments California’s population is projected to grow to 50 million people by 2050. Supporting this growth will require coordinated investments in land use, transportation, and affordable housing. California Climate Investments programs are demonstrating approaches to this by expanding access to housing and mobility options, promoting physical activity, improving air quality, increasing connectivity, and enhancing resilience. Investments in the built and natural environment complement each other to reduce conversion of the State’s most productive farmland, rangeland, and forests while supporting infill-oriented regional development. By promoting infill and providing clean, safe, and convenient travel options for Californians to get to work, school, shopping, and recreation, California Climate Investments increase accessibility and reduce congestion and reliance on single occupancy vehicles. California Climate Investments further reduce transportation emissions through the promotion of low- and zero-emission vehicles. In addition to reducing emissions from personal vehicles through deployment of advanced technologies and incentivizing fewer and shorter trips, California Climate Investments continue to address social inequities by directing resources to disadvantaged and low-income communities. Efficient land use, transit-oriented development, and complete street designs prioritize transit, biking, and walking and result in more livable, vibrant communities. Health benefits also accrue to communities near freight corridors and a variety of stationary sources that are emitting fewer air pollutants because of incentive funds. Climate change mitigation measures can improve overall population health and safety and support a better standard of living through direct cost savings, access to opportunity, and economic development.
24 California Climate Investments · 2019 Annual Report Service and infrastructure investments in transit, affordable housing, active transportation, urban greening, shared-use mobility, energy efficiency, air quality, and conservation of natural and working lands deliver benefits to these communities and across the State. California Climate Investments also provide funding for local planning efforts, technical assistance, capacity building, and partnership development that can result in greater coordination of future investments, enable policies, and inspire further action in support of sustainable and vibrant Californian communities. California Climate Investments programs span sectors and provide key linkages between sectors. For the purposes of this report, the programs are organized by the following sectors: Transportation and Sustainable Communities Clean Energy and Energy Efficiency Natural Resources and Waste Diversion
Individual Program Statistics The remainder of this report provides summary pages of the status of each ongoing California Climate Investments program. Figure 8 defines the terms used in this report.
Figure 8: Reporting Terms for California Climate Investments
The Legislature authorizes an agency to make expenditures or incur financial obligations from the GGRF for a specified purpose and period of time.
An agency distributes funds or establishes an expenditure limit for a program or subprogram.
An agency announces funding recipients (e.g., Board action, or public announcement) prior to executing grant agreements; not yet awarded.
An agency commits funding to a project (e.g., executed a contract; transferred funds to an administering agency).
Final funding recipient receives funds and projects have attributable GHG and priority population benefits.
California Climate Investments · 2019 Annual Report 25 The summary pages include the following information for each program, where applicable: • The total amount of funds available for the program to date (“appropriated” or “allocated”); • The total amount of funds implemented to date (“implemented”); • The amount of funds assigned to future projects that have been announced or committed for investment but have yet to be implemented (“selected” and “awarded”); • A high-level overview of the program including: administering agency; what type of projects are funded; how funds are distributed (whether competitive or first-come, first-served); who is eligible to receive funds; and how the funds reach priority populations; • Estimated GHG emission reductions from the projects reported as implemented in 2018; • Co-benefits that are expected from projects reported as implemented in 2018; and • Benefits to priority populations from projects reported as implemented in 2018.11 Summary statistics on every California Climate Investments program can be found at www.caclimateinvestments.ca.gov. This report includes program pages for programs that have implemented less than 90 percent of their appropriated funds. Additional information on individual implemented projects is also available on the website, both on the California Climate Investments Project Map that shows project location and in a spreadsheet for download.
11 The program pages display benefits to priority populations as counted towards statutory investment minimums. Projects counted for a specific statutory investment minimum may provide benefits to more than one priority population, but are not shown to avoid double counting.
26 California Climate Investments · 2019 Annual Report TRANSPORTATION & SUSTAINABLE COMMUNITIES Community Air Protection 2018 OUTCOMES
FUNDING Community Air Grants $8.5 M implemented
FUNDING DISTRIBUTION CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding $8.3 M to benefit priority populations How much funding has the program received? $15.0 million allocated. 3% How much has gone to implemented projects? $8.5 million implemented. 16% How much has been assigned for future projects? $1.4 million selected and awarded but not yet implemented.
Program Description 80% What type of projects are funded? Air Grants fund projects that provide support for California community-based organizations and California tribes. Grants help awardees participate in the AB 617 process, and to build capacity to become active partners with government to identify, evaluate, and ultimately reduce air pollution and exposure to harmful isa vanta e ommunities emissions in their communities. lo in ome ommunities ouse ol s How to access funds? Competitive application process (CARB’s Environmental Justice outsi e enefitin Office administers the program). isa vanta e ommunities ot er areas of California Who receives funds? California community-based and nonprofit organizations and California tribal governments. How do funds reach priority populations? Investments only target the state’s most disadvantaged communities.
28 California Climate Investments · 2019 Annual Report Community Air Protection Grants San Ysidro is a predominantly low-income, 93% Latino community, situated along the US-Mexico border, across from the Mexican city of Tijuana. Sources of air pollution include vehicle exhaust from traffic waiting to cross the San Ysidro Port of Entry, the largest land-border crossing in the Western Hemisphere, as well as air pollution from Mexico. This is where Casa Familiar, a community-based organization, has kicked off its Community Air Grant project, in order to empower community members to participate in the AB 617 process by helping to identify, evaluate, and ultimately reduce exposure to harmful emissions in their community. The project will allow Casa Familiar to sustain and expand a current network of community-operated air monitors, providing residents of the border region, the local air district, CARB, and US EPA with the necessary data to better understand air quality impacts from vehicular border crossing at the new Port of Entry, currently under construction. “As a community that deals with 120,000 vehicles crossing the U.S.-Mexico border on a daily basis, San Ysidro residents and its local schools suffer 10 times higher levels of pollution than the neighboring city of Imperial Beach by the Pacific Ocean. We have learned from initial community air monitoring that for every 100-minute passenger vehicle wait time, there is a direct and relatable impact on air quality. This impacts 90% of all San Ysidro neighborhoods and schools,” according to David Flores, Community Development Director for Casa Familiar. The goals for the project are to inform San Ysidro residents of the air quality levels and leverage partnerships to work towards air quality solutions. A unique aspect of Casa Familiar’s Community Air Grant is the planned community-to-community outreach. “As Casa continues to gain knowledge and expertise, we want to share this with other adjacent communities that are interested in establishing their own air monitoring and goal setting for community health & environmental justice. This is easier done when someone can point the way and identify challenges from experience,” says Flores. Specifically, under the project, Casa Familiar will hold at least three community-to- community training events, sustain and expand their current network community air monitoring sites, and deploy new ultra-low cost sensors for PM to provide information on pollution reaching indoor environments.
California Climate Investments · 2019 Annual Report 29 Community Air Protection 2018 OUTCOMES
FUNDING Community Air Protection Funds $113.4 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 64,115 e reductions How much funding has the program received? MTCO2 GHG $515.0 million allocated. 12,297,562 How much has gone to implemented projects? gallons fuel reductions $113.4 million implemented. 9,676,304 pounds reductions How much has been assigned for future projects? NOX $121.7 million selected and awarded but not yet implemented. 449,794 Program Description pounds diesel PM reductions What type of projects are funded? FUNDING DISTRIBUTION Incentive grants to help owners of older high-polluting vehicles and equipment replace them with newer models that have much lower emissions — or zero emissions. Grant funds may also be $105.3 M used for changes at local industrial facilities that reduce emissions to benefit priority populations of toxic or smog-forming pollutants, to build zero-emission charging stations, or to support local measures that air districts and communities identify through AB 617 Community Emissions 7% Reduction Programs. 18% How to access funds? Competitive application process (local air districts will select which projects to fund). 75% Who receives funds? Local air districts receive funds based on a formula and distribute them to individual projects. How do funds reach priority populations? At least 55 percent of funds go to projects benefiting disadvantaged communities. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
30 California Climate Investments · 2019 Annual Report Community Air Protection Program Solid waste collection vehicles are known for releasing diesel PM in communities as they idle during the pickup and removal of waste from homes and businesses. With Community Air Protection Funds, administered by the South Coast Air Quality Management District (SCAQMD) through the Carl Moyer Program, CR&R Inc. is reducing air pollution in southern California by replacing 61 of its heavy-duty diesel trucks with near zero-emission renewable natural gas (RNG) trucks. The new trucks are fueled by RNG fuel produced from organic waste at CR&R’s anaerobic digestion facility in Perris, California, which previously received California Climate Investments funding from CalRecycle’s Organics Grant Program. CR&R was awarded over $2,000,000 from the Community Air Protection program and is using the funds
to begin operating the cleanest certified heavy-duty engines — with NOX emissions 90% lower than the current on-road heavy-duty standard for RNG-fueled trucks. The vehicles are expected to be in service in by June 2019, years ahead of when the existing trucks would otherwise be required to meet emission standards under California’s Truck and Bus Regulation. The project will provide significant NOX, diesel PM, GHG emission reductions over the 7-year project life. CR&R is also investing in strategically locating RNG refueling stations throughout its multi-county service area to minimize miles travelled and improve fleet operating efficiencies. In November 2018, SCAQMD awarded CR&R an additional $223,901 of Community Air Protection Funds for an RNG fueling station in Colton to support the operation of the near-zero emission vehicles. Community Air Protection Funds continue to provide incentives for vehicle and equipment replacements to reduce pollution in the state’s most impacted communities.
California Climate Investments · 2019 Annual Report 31 2018 OUTCOMES
FUNDING Funding Agricultural Replacement Measures for Emission Reductions $13.2 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 9,905 MTCO e GHG reductions How much funding has the program received? 2 $197.0 million appropriated. 1,781,859 pounds NO reductions How much has gone to implemented projects? X $13.2 million implemented. 99,201 pounds diesel PM reductions How much has been assigned for future projects? 2.5 $66.3 million selected and awarded but not yet implemented. 136,905 Program Description gallons fuel reductions
What type of projects are funded? FUNDING DISTRIBUTION Agricultural harvesting equipment, heavy-duty trucks, agricultural pump engines, tractors, and other equipment used in agricultural operations. $9.7 M to benefit priority populations How to access funds? Potential participants apply for funding through their local air districts. Air districts then select projects for funding.
Who receives funds? 26% Local air districts receive funds based on a formula and award them to farmers and agricultural businesses for individual projects. 5% 68% How do funds reach priority populations? At least 50 percent of funds go to projects benefiting disadvantaged communities and 5 percent of funds go to projects benefiting low-income communities.
isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
32 California Climate Investments · 2019 Annual Report Low Carbon Transportation 2018 OUTCOMES
FUNDING Advanced Technology Freight Demonstration Projects $31.9 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 2,957 MTCO e GHG reductions How much funding has the program received? 2 $84.0 million allocated. 19,632 pounds NO reductions How much has gone to implemented projects? X $79.2 million implemented. 2,765 How much has been assigned for future projects? pounds ROG reductions No additional funds have been selected or awarded. 22,400 Program Description gallons fuel reductions
What type of projects are funded? FUNDING DISTRIBUTION Advanced Technology Freight Demonstration Projects provide funding for pre-commercial demonstrations of advanced vehicles, engines, equipment, and transportation systems. These advanced $31.9 M technology projects demonstrate zero-emission or near zero-emission to benefit priority populations vehicles and equipment that use less petroleum and emit less GHG
and air pollutant (NOX, PM, carbon monoxide (CO), and ROG) emissions than conventional, diesel-fueled equipment. How to access funds? Competitive application process. Who receives funds? 100% Local air districts, other California public entities, and nonprofits, which may partner with private sector parties (e.g., end-users, manufacturers) as providers or demonstrators. How do funds reach priority populations? All projects must benefit disadvantaged communities and projects within disadvantaged communities receive enhanced isa vanta e ommunities application scoring. lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 33 Low Carbon Transportation 2018 OUTCOMES
FUNDING Agricultural Worker Vanpools $6.0 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 4,592 MTCO e GHG reductions How much funding has the program received? 2 $9.0 million allocated. 576 pounds NO reductions How much has gone to implemented projects? X $6.0 million implemented. 850 How much has been assigned for future projects? pounds PM2.5 reductions No additional funds have been selected or awarded. 154 Program Description vehicles in service
What type of projects are funded? FUNDING DISTRIBUTION Expanded access to cleaner, lower GHG-emitting transportation options for agricultural workers in disadvantaged communities with a focus on the San Joaquin Valley. $6.0 M to benefit priority populations How to access funds? Competitive application process open to government entities, public entities or non-profit organizations. Who receives funds? California Vanpool Authority (CalVans) is providing affordable vanpools for agricultural workers in disadvantaged areas of the San Joaquin Valley. 100% How do funds reach priority populations? Program will be limited to projects that serve disadvantaged communities.
isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
34 California Climate Investments · 2019 Annual Report Agricultural Worker Vanpool Pilot Project Alejandro migrated to the United States as a boy from Oaxaca, Mexico. He finished high school while still working in the fields, and then went to community college and state university. Alejandro explains, “We had to start our day at five or six in the morning and my father would drive us to work.” It is common for farmworkers to drive to the field site themselves or to pay to commute in a vanpool. Between one-third and half of all farmworkers in America reside in California, or roughly 500,000 to 800,000 farmworkers. Agricultural Worker Vanpools in the San Joaquin Valley is a new pilot project that will provide expanded access to reliable, clean technology vanpools for agricultural workers in the valley’s disadvantaged communities. The California Air Resources Board awarded the program $6 million through the California Climate Investments program. CalVans, a public transit agency sponsored by the California Vanpool Authority that serves 17 mostly agricultural California counties, will deploy 154 new, 15-passenger hybrid vans that provide near-zero emission transportation to agricultural job sites in the San Joaquin Valley and other disadvantaged agricultural areas of California, such as the Coachella Valley and Salinas Valley. Benito lives in Selma, California and is thankful for the program. “We’ve been part of the problem for more than 10 years. It is a great help for us. We put fewer cars on the roads of the San Joaquin Valley and we contribute to cleaning the air. And it feels nice to do that. Today we received a new van that will help the environment. We heard about CalVans through friends and it’s helped us a lot. In the future for those of you who are interested, I invite you to call CalVans and get a van.” The vans reduce fuel consumption by 25 percent, resulting in immediate emission reductions benefits within disadvantaged communities, while also meeting a basic transportation need of agricultural workers.
California Climate Investments · 2019 Annual Report 35 Low Carbon Transportation 2018 OUTCOMES
FUNDING Clean Mobility Options for Disadvantaged Communities $5.5 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 2,313 MTCO e GHG reductions How much funding has the program received? 2 $48.1 million allocated. 3,519 pounds NO reductions How much has gone to implemented projects? X $9.6 million implemented. 447 How much has been assigned for future projects? pounds PM2.5 reductions No additional funds have been selected or awarded. 63 Program Description vehicles in service
What type of projects are funded? FUNDING DISTRIBUTION A variety of clean mobility projects (including car share, bike share, vanpool, and ridesourcing) in disadvantaged communities using advanced clean vehicles (zero-emission or plug-in hybrid $5.5 M electric vehicles) and associated infrastructure. to benefit priority populations How to access funds? Competitive application process. Who receives funds? Pilot project administrators serving disadvantaged communities throughout California. 100% How do funds reach priority populations? Projects are placed in locations that serve disadvantaged communities.
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36 California Climate Investments · 2019 Annual Report Clean Mobility Options for Disadvantaged Communities Pilot Project The Clean Mobility Options for Disadvantaged Communities pilot projects address the barriers and transportation needs of low-income residents and those living in disadvantaged communities. The City of Los Angeles received a $1.7 million grant to start a zero-emission car share pilot project, BlueLA, to operate in four Los Angeles disadvantaged communities. Los Angeles Mayor Eric Garcetti welcomed the program, saying “BlueLA is the nation’s largest effort to bring car sharing to low-income communities, so that a zip code doesn’t define how you can contribute to saving this planet.” This BlueLA project will ultimately deploy 100 electric cars (EV) and 200 EV chargers and serve portions of Westlake, Pico Union, Koreatown, Echo Park, Downtown, Boyle Heights, and Chinatown by March 2019. Launching to the public in April 2018 with 25 EVs and 35 chargers in 7 locations, the project now has 70 EVs and 85 chargers in 17 locations. “For the first time in the City of Los Angeles, we are focusing specifically on disadvantaged communities. These communities are low-income and are disproportionately impacted by air quality. It was really critical for us to work with our partner Bollore [BlueLA] to establish a geography that aligned with our vision to bring clean, convenient, accessible transportation to these areas. Also, we are offering low-income rates for households that make under $35,000,” explains Marcel Porras, with the LA Department of Transportation. For residents who do not own a car, this program enables them to get to their destinations more easily. They can also drop the car off at any BlueLA station. Currently, there are approximately 1,000 members. Andrew Castillo uses the BlueLA electric cars. “I just turned 18 a few months ago and I don’t have a car, so if I ever want to go with friends somewhere this will be a cheap and an affordable option.” Due to the success of the BlueLA car share project, the California Air Resources Board has tentatively selected the project to receive $3 million for expansion, which will add another 200 vehicles and 60 more stations throughout the disadvantaged communities, and an e-bike sharing program. This car share project will provide a reliable method of transportation at a low cost for residents in need and will help clean up the air at the same time. Visit bluela.com to learn how to rent an electric vehicle for your next trip.
California Climate Investments · 2019 Annual Report 37 Low Carbon Transportation 2018 OUTCOMES
Clean Off-Road Equipment No projects were implemented in 2018.
CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding How much funding has the program received? $40.0 million allocated. How much has gone to implemented projects? TBD How much has been assigned for future projects? TBD Program Description What type of projects are funded? Vouchers toward the purchase of zero-emission and near zero-emission equipment used in off-road freight transport (such as forklifts, transport refrigeration units, gantry cranes, and terminal trucks). How to access funds? First-come, first-served; program administration is awarded competitively. Who receives funds? Public and private off-road freight fleet operators. How do funds reach priority populations? Larger voucher values for vehicles located within disadvantaged communities.
38 California Climate Investments · 2019 Annual Report Low Carbon Transportation 2018 OUTCOMES
FUNDING Clean Truck & Bus Voucher Program $196.4 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 759,228 MTCO e GHG reductions How much funding has the program received? 2 $362.9 million allocated. FUNDING DISTRIBUTION How much has gone to implemented projects? $227.4 million implemented. $137.1 M How much has been assigned for future projects? to benefit priority populations $142.5 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Promotes clean vehicle adoption by offering vouchers for the 30% purchase of zero-emission, hybrid, and low NOX emitting trucks and buses. 52% How to access funds? Vouchers available first-come, first-served; program administration 18% awarded competitively. Who receives funds? Public and private operators of medium- and heavy-duty truck and bus fleets. isa vanta e ommunities How do funds reach priority populations? lo in ome ommunities Larger vehicle rebates for vehicles located in disadvantaged ouse ol s communities. outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 39 Low Carbon Transportation 2018 OUTCOMES
FUNDING Clean Vehicle Rebate Project $143.2 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 373,883 MTCO e GHG reductions How much funding has the program received? 2 $708.4 million allocated. 96,053 pounds NO reductions How much has gone to implemented projects? X $484.0 million implemented. 59,971 How much has been assigned for future projects? pounds PM2.5 reductions $224.0 million selected and awarded but not yet implemented. FUNDING DISTRIBUTION Program Description What type of projects are funded? $33.1 M Rebates for the purchase or lease of new, eligible light-duty to benefit priority populations vehicles, including electric, fuel-cell, and plug-in hybrid electric vehicles.
How to access funds? 9% First-come, first-served statewide; administered by the Center for Sustainable Energy. 14% Who receives funds? Individuals, businesses, and government entities. 77% How do funds reach priority populations? Outreach events targeting priority populations; larger rebates for lower-income applicants and for public fleets located in disadvantaged communities.
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40 California Climate Investments · 2019 Annual Report Clean Vehicle Rebate Project Under the Clean Vehicle Rebate Project (CVRP), California residents can receive up to $7,000 to purchase or lease a new, advanced technology vehicle. This includes plug-in hybrid electric, battery electric or fuel-cell electric vehicles (EVs). Through June 2018, CVRP provided rebates for over 256,000 vehicles at a cost of over $570 million since the project’s launch in 2010. The Clean Vehicle Rebate Project hopes to promote electric vehicle adoption, especially among lower-income buyers, with its new CVRP Rebate Now program. The pilot program launched in San Diego County in January 2018. Consumers can now complete a simple online registration process, and once pre-approved, they are eligible for an immediate discount toward the purchase or lease of eligible models. Making the process of buying a new electric vehicle easier will attract more lower-income customers and lead the way towards reaching the State’s goal to put at least 5 million zero-emission vehicles on California roads by 2030. The president of the Center for Sustainable Energy, Lawrence Goldenhersh, explains the simple process: “Car shoppers in San Diego can now get preapproved before they purchase or lease an EV and then transfer the rebate amount directly to the dealership rather than applying for the rebate after the transaction. In just a few simple steps, the car dealership can claim the transferred rebate and use it to lower the customer’s down payment.” Erica, from San Diego, took advantage of CVRP and got a new Kia Soul electric vehicle. Her monthly budget for gas was $250 and the lease on her new Kia is $206. “The financial benefits were what persuaded me to give this car a shot, but I have been pleasantly surprised with other bonuses that come with an EV,” she said. “Our car has become a source of pride for our family. It feels good to break our dependency on gas. Plus, the kids love this car. It definitely has the ’cool’ factor. I can’t believe it took me so long to make the switch. Going back to a gas-powered vehicle is not even an option. Want my advice? Run the numbers for your family and do it today. The results just might surprise you.”
California Climate Investments · 2019 Annual Report 41 Low Carbon Transportation 2018 OUTCOMES
FUNDING Enhanced Fleet Modernization Program Plus-Up $10.3 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 6,568 MTCO e GHG reductions How much funding has the program received? 2 $102.0 million allocated. 25,121 pounds NO reductions How much has gone to implemented projects? X $21.2 million implemented. 3,770 How much has been assigned for future projects? pounds ROG reductions $39.8 million selected and awarded but not yet implemented. 1,043 Program Description pounds PM2.5 reductions
What type of projects are funded? FUNDING DISTRIBUTION Financial incentives to retire older more polluting vehicles and replace them with newer cleaner advanced technology hybrid and zero-emission vehicles, or Alternative Mobility Options. $10.3 M to benefit priority populations How to access funds? First-come, first-served; administered by local air districts. Who receives funds? Low-income residents within and near disadvantaged communities of the San Joaquin Valley and South Coast air districts, with expansion underway in the Bay Area and Sacramento air districts. 46% 54% How do funds reach priority populations? Program designed with tiered incentive structure to provide maximum incentives to the lowest income participants purchasing or leasing the cleanest technology vehicles that reside within and near disadvantaged communities.
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42 California Climate Investments · 2019 Annual Report Low Carbon Transportation 2018 OUTCOMES
FUNDING Financing Assistance for Lower-Income Consumers $1.4 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 1,553 MTCO e GHG reductions How much funding has the program received? 2 $25.9 million allocated. 560 pounds NO reductions How much has gone to implemented projects? X $1.6 million implemented. 246 How much has been assigned for future projects? pounds PM2.5 reductions $4.3 million selected and awarded but not yet implemented. 120 Program Description pounds ROG reductions
What type of projects are funded? FUNDING DISTRIBUTION Offers lower-income consumers a low-interest loan and a vehicle price buy-down to purchase a new or used zero-emission, plug-in hybrid electric, or hybrid vehicle. Lenders are offered a loan loss $1.3 M reserve to mitigate their risk. to benefit priority populations How to access funds? 3% Low-interest loans and buy-downs available first-come, first-served; program administration awarded competitively. 19% Who receives funds? 24% Lower-income residents statewide. How do funds reach priority populations? Outreach to disadvantaged communities to engage lower-income residents to participate in the program. 55%
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California Climate Investments · 2019 Annual Report 43 Low Carbon Transportation 2018 OUTCOMES
FUNDING Rural School Bus Pilot Projects $0.8 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 570 MTCO e GHG reductions How much funding has the program received? 2 $55.0 million allocated. 26,955 gallons fuel reductions How much has gone to implemented projects? $9.4 million implemented. 13,300 pounds NO reductions How much has been assigned for future projects? X $30.6 million selected and awarded but not yet implemented. 197 Program Description pounds ROG reductions
What type of projects are funded? FUNDING DISTRIBUTION School bus fleet expansion with zero-emission buses and replacement of conventional-fuel buses with hybrid or conventional-fuel buses using renewable fuels. $0.0 M to benefit priority populations How to access funds? Competitive application process. Who receives funds? Public School Districts, Public Charter Schools, County Office of Education, joint powers authorities, and the Division of State Special Schools in the State Department of Education. 100% How do funds reach priority populations? Not applicable.
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44 California Climate Investments · 2019 Annual Report Rural School Bus Pilot Project Parents can now breathe a little easier knowing their kids are doing the same going to and from school. In 2018, the Ukiah Unified School District in Mendocino County received funding to replace three older diesel school buses with three new zero-emission electric models. Earlier this year, Lion Electric, the manufacturer of the electric buses, delivered Ukiah Unified School District’s first zero-emission electric school bus, with delivery of the remaining two expected in early 2019. In addition, the whole community benefits from reduced exposure to diesel exhaust pollution. Recent studies show older school buses expose kids to higher concentrations of pollution while riding inside the bus, which is becoming an increasing concern to parents whose kids rely on these buses to get to school. Herlinda Calderon explains, “The saddest thing is when I realized that dirty school buses were worsening my daughter’s asthma, worsening her breathing problems.” In addition, Martha Favela would rather drive her three daughters to three different schools each morning than to have them ride in a diesel school bus. “Even just dropping them off at school, we pass the buses idling and breathe in the diesel fumes. Children go to school to learn, not to get sick from pollution.” Traditionally, rural school districts lack funds to replace their old and polluting diesel school buses. Through a partnership with Senator Mike McGuire and the California Air Resources Board, the Rural School Bus Pilot Project provides funding to replace old school buses with vehicles running on cleaner fuel, and even zero-emission school buses. “At Ukiah Unified School District, we are excited to add electric school buses to our fleet; it makes us very happy any time we can improve our impact on the environment. Our students and staff will enjoy a much quieter ride, and we are being better stewards of our environment. In addition to environmental benefits, electric school buses are less expensive to run and maintain. They do have a large up-front cost, but we know that over the long haul, they will pay for themselves and actually save our district money,” said Deb Kubin, Ukiah Unified School District Superintendent. The Rural School Bus Pilot Project owes its success to the 2014 – 2015 Zero-Emission Truck and Bus Pilot projects, which featured electric transit and school buses and demonstrated that zero-emission electric buses are a reliable, cleaner mode of public transportation. Now the technology expands to the rural areas of the state. The Rural School Bus Pilot Project funded over 60 new school buses, which will cut
approximately 10,000 MTCO2e.
California Climate Investments · 2019 Annual Report 45 Low Carbon Transportation 2018 OUTCOMES
Zero-Emission Truck and Bus No projects were Pilot Projects implemented in 2018.
CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding How much funding has the program received? $85.0 million allocated. How much has gone to implemented projects? $82.8 million implemented. How much has been assigned for future projects? No additional funds have been selected or awarded. Program Description What type of projects are funded? Supports pilot deployment of clusters of zero-emission trucks, transit buses, or school buses, including potential funding for charging or fueling infrastructure. How to access funds? Competitive application process. Who receives funds? Local air districts, transit agencies, school districts, other California-based public entities, and California-based nonprofit organizations, which may partner with private sector parties as technology providers. How do funds reach priority populations? Projects benefiting disadvantaged communities receive additional points during application scoring, with the majority of funding going to these projects.
46 California Climate Investments · 2019 Annual Report Low Carbon Transportation 2018 OUTCOMES
Zero- and Near Zero-Emission No projects were Freight Facilities implemented in 2018.
CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding How much funding has the program received? $155.0 million allocated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $153.5 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Advanced technology demonstration projects provide funding for pre-commercial demonstrations of advanced vehicles, engines, equipment, and transportation systems. How to access funds? Competitive application process. Who receives funds? Local air districts, other California public entities, and nonprofits, which may partner with private sector parties (e.g., end-users, manufacturers) as providers or demonstrators. How do funds reach priority populations? All projects must benefit disadvantaged communities and projects within disadvantaged communities receive enhanced application scoring.
California Climate Investments · 2019 Annual Report 47 Zero- and Near Zero-Emission Freight Facilities Project The East Yard Communities for Environmental Justice organization puts on a yearly bike tour through Long Beach to raise awareness about the air pollution in local neighborhoods from locomotives, transport trucks, loading/unloading equipment and ships. Kevin Shin, cofounder of Walk Bike Long Beach, notes, “By walking and biking, people develop a greater appreciation for the impact that toxic infrastructure has on them and their neighbors.” Tour leader, Jan Victor Andasan, who grew up in West Long Beach and has asthma, felt some lung tightness during some parts of the ride. While exploring the area, they also had to share the roads with a steady stream of trucks, which Andasan pointed out were “not running on zero-emission technology.” A decade ago, the thought of heavy-duty zero-emission equipment was only a dream, but today it is a reality. In 2015, the California Collaborative Advanced Technology Drayage Truck Demonstration Project began to deploy 44 zero-emission battery electric and plug-in hybrid drayage trucks at major California ports. It brought together major manufacturers, including BYD, Kenworth, Peterbilt and Volvo. This demonstration project forged the way for the Zero- and Near Zero-Emission Freight Facilities (ZANZEFF) program, a sub-program under the California Air Resources Board’s Low Carbon Transportation Program, which has eleven different projects throughout the state and more than $400 million invested. For one of these projects, the Port of Long Beach received a $50 million award in 2018 and project partners will match with another $52.9 million. Across this and other projects in Oakland and Stockton, ZANZEFF will deploy 38 electric yard trucks, 9 electric gantry cranes, 18 electric heavy lift forklifts, and 15 zero-emission Class 8 trucks. The program is also including a workforce development component with curriculum being developed to support the deployment of this technology with local school districts near the three port locations, community colleges and Long Beach State University. “I applaud the California Air Resources Board for its vision and commitment to helping disadvantaged communities in California improve their air quality by fostering innovative clean technologies,” said Senator Connie M. Leyva (D-Chino). “These significant investments show that California businesses can thrive while helping to further our efforts to clean the air of our state’s most impacted communities. I look forward to witnessing firsthand the benefits that these projects will bring to the 20th State Senate District and the Inland Empire.” Locals hope that in the future there will no longer be a need for a bike tour to raise awareness about the air pollution, but rather about how clean the air is at the ports and railyards.
48 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Low Carbon Transit Operations Program $135.7 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) 1,547,053 12 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 2,823,340,321 $378.7 million appropriated. VMT reductions How much has gone to implemented projects? 235,750 $250.7 million implemented. kWh energy savings How much has been assigned for future projects? 511,680 $55.0 million selected and awarded but not yet implemented. pounds reductions NOX Program Description FUNDING DISTRIBUTION What type of projects are funded? Operating and capital assistance for transit agencies to reduce GHG emissions and improve mobility, with a priority on serving $132.7 M 6 disadvantaged communities. to benefit priority populations How to access funds? 2% Non-competitive, formula-based list of eligible recipients prepared by the State Controller’s Office for annual apportionment.
Who receives funds? 32% The State Controller’s Office provides a list of transportation planning agencies and transit operators that are eligible for State 54% Transit Assistance Funds. There are nearly 200 eligible recipients throughout California. 12% How do funds reach priority populations? Transit agencies whose service areas include a disadvantaged community are required to expend at least 50 percent of their apportionment on projects that benefit a disadvantaged community. isa vanta e ommunities 12 By statute, the LCTOP program is appropriated 5% of the proceeds of lo in ome ommunities each quarterly auction. These appropriated funds are then allocated ouse ol s annually to transit agencies via an established formula. This results in a temporary gap between appropriated and selected/awarded/ outsi e enefitin implemented funds each year. isa vanta e ommunities 13 Benefits to priority populations shown here account for statutory investment minimums in SB 535 and AB 1550. In addition to these investment minimums, ot er areas of California SB 862 requires that, for transit agencies whose service areas include disadvantaged communities, at least 50 percent of their LCTOP funds must benefit those disadvantaged communities. Cumulatively, 89 percent of implemented LCTOP funds benefit disadvantaged communities.
California Climate Investments · 2019 Annual Report 49 Low Carbon Transit Operations Program Yosemite Area Regional Transportation System (YARTS) successfully completed its ‘Reduced and Free YARTS to Yosemite’ program for 2018 funded through the California’s Low Carbon Transit Operations (LCTOP) grant program. In Merced County, the program allowed adults to ride to Yosemite National Park for $5, and children, ages 0 – 12 rode free. In Mariposa County, residents were provided free passes to ride the bus to and from the Park. In total, YARTS provided over 500 adult reduced round trips and 850 child trips from Merced County and over 2,800 free round trips from Mariposa County to Yosemite. The ridership also saw a significant increase in low-income populations as a result of the program. “We met a group on the bus that was from Merced that had service dogs and bought the reduced tickets to spend the day in Yosemite. There’s no better way to spend a weekend than with a trip to Yosemite National Park,” said Jennifer S. of Mariposa. Cindy Kelly, YARTS Assistant Transit Manager, said that one of the goals of the program was to be able to offer residents in Merced and Mariposa Counties a way to enjoy outdoors spaces with families and friends, at little to no cost. “We want to teach our next generation of Californians to be good stewards of our public lands by showing them the beauty of Yosemite,” she said. Jessica M. of Merced couldn’t believe that tickets were only $5 for adults and children were free. “We took the whole family. My husband, mom, dad, brother and grandma. We all spent a beautiful day walking around the park and just being together. I‘m glad we were all able to go together. It was so much fun; the bus was very clean, and it was a comfortable ride.” Kelly said the program was originally scheduled to last until June 30, 2019 but that it was so popular all the passes were distributed within just a few months. “We never thought the program would be such a hit,” she said. “Obviously, we’re thrilled that so many people chose YARTS over driving their personal vehicles. We wish we could offer this service more frequently to our communities.” And she’s doing her best to make that very thing happen with YARTS staff already working on a plan to expand the program for the 2019 – 2020 year.
50 California Climate Investments · 2019 Annual Report 2018 OUTCOMES The California High-Speed Rail High-Speed Rail Project Authority has taken steps to ensure that jobs supported by the project benefit disadvantaged populations through its Community CALIFORNIA HIGH-SPEED RAIL AUTHORITY (HSRA) Benefits Agreement (CBA).15 Cumulative Funding14 The Authority is pleased to report that, as of December How much funding has the program received? 2018, 496 small businesses were $2,023.0 million appropriated. working on the project, including How much has gone to implemented projects? 161 Disadvantaged Business $626.0 million implemented. Enterprises and 53 Disabled Veteran Business Enterprises. Program Description Cumulatively, the high-speed California’s high-speed rail system will connect the megaregions rail project has provided a living of the State, contribute to economic development and a cleaner wage for more than 2,500 environment, support jobs and preserve agricultural and protected workers that have worked more lands. The Phase 1 system will run from San Francisco to the Los than 1.6 million work hours. More Angeles basin in under three hours at speeds capable of over 200 than 70 percent of work hours miles per hour. The system will eventually extend to Sacramento and were performed by Targeted San Diego, totaling 800 miles with up to 24 stations (Phase 2). Workers and almost 30 percent The Authority’s 2018 Business Plan presented a cost range of $63.2 of those work hours were billion to $98.1 billion (YOE) for the Phase 1 System. In addition, performed by Disadvantaged the California High-Speed Rail Authority is working with regional Workers, vastly exceeding the partners to implement a statewide rail modernization plan that targets set in the CBA. will invest billions of dollars in local and regional rail lines to meet California’s 21st century transportation needs. This investment includes the electrification of the Caltrain corridor and the LINK Union Station Project, among others.
The California high-speed rail system will decrease GHG emissions by 64.3 to 75.9 million metrics tons of CO2e and air pollutants (NOX, ROG, CO, PM, and toxics) by more than 100,000 tons. The system is unique in that it will shift air travelers and drivers to an electrified high-speed rail system, running entirely on renewable energy. Currently, reductions in air pollutant and GHG emissions from high-speed rail construction in the Central Valley are being achieved by recycling construction waste and using clean construction equipment. The Authority is offsetting emissions through an agreement with San Joaquin Valley Air Pollution Control District to replace diesel engines in the Central Valley, and an agreement with CAL FIRE to fund urban and rural tree planting programs in disadvantaged communities. The Authority has also identified permanent agricultural easements of more than 1,200 acres and preserved and restored more than 2,500 acres of habitat.
14 By statute, the High-Speed Rail project is appropriated 25% of the proceeds of each quarterly auction. HSRA does not select or award funds, as all appropriated funds are used for the HSR project. 15 The CBA encourages a 30 percent small business participation goal and ensures that 30 percent of all project work hours are performed by National Targeted Workers, with at least 10 percent of those work hours be performed by Disadvantaged Workers. The CBA definitions of Targeted Worker and Disadvantaged Worker are not aligned with the designations of priority populations for the purposes of meeting the investment minimums in SB 535 or AB 1550. For this reason, these employment benefits are not credited as benefiting priority populations, but provide a direct and assured benefit to those targeted employees. Targeted Workers include individuals that reside in low-income ZIP codes. A Disadvantaged Worker is a Targeted Worker with additional barriers to employment.
California Climate Investments · 2019 Annual Report 51 High Speed Rail: San Mateo 25th Avenue Grade Separation Improving safety and air quality for Californians is a priority. The California High-Speed Rail Authority, in partnership with the city of San Mateo and the Peninsula Corridor Joint Powers Board, is in the midst of construction of a grade separation project at East 25th Avenue, which will raise the Caltrain tracks and slightly lower East 25th Avenue in San Mateo. The rail-roadway crossing is considered a “top priority” for safety improvement by the California Public Utilities Commission (CPUC). The intersection sits between San Mateo County Events Center and a busy shopping center. Further, Caltrain reports that 92 of its trains pass through the intersection each weekday. Idling vehicles and traffic congestion are generally a result of trains and automobiles at the same ground level height. By separating the road and train tracks, removing traffic at idle will improve air quality and safety. “Like everyone else on the Peninsula, I have to plan my day around traffic,” San Mateo City Councilwoman Maureen Freschet noted to the San Mateo Daily at the groundbreaking ceremony. “There is no quick fix for regional traffic congestion, but the grade separation at th25 Avenue is certainly a good place to start. I know that our residents will appreciate and benefit from the elimination of train- vehicle conflicts as well as enjoy safer pedestrian options.” Grade separations raise or lower roadways to improve safety for motorists and pedestrians as well as reduce traffic congestion. In addition to raising the Caltrain tracks, the project includes creating new east-west street connections at 28th and 31st Avenues as well as the construction of a new and elevated Hillsdale Station at East 28th Avenue. Funding for the $180 million project came from State Section 190, the California High-Speed Rail Authority, local Measure A and the city of San Mateo. Completion of the project is estimated in fall 2020.
52 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Transit and Intercity Rail Capital Program $40.6 M implemented
EXPECTED BENEFITS CALIFORNIA STATE TRANSPORTATION AGENCY (CALSTA) Cumulative Funding16 512,000 MTCO e GHG reductions How much funding has the program received? 2 $869.1 million appropriated. 63,059,483 VMT reductions How much has gone to implemented projects? $338.9 million implemented. 341,441 pounds NO reductions How much has been assigned for future projects? X $2,376.1 million selected and awarded but not yet implemented. 3,858 Program Description pounds PM2.5 reductions
What type of projects are funded? FUNDING DISTRIBUTION Transformative capital improvements that are modernizing California’s intercity, commuter, and urban rail systems, bus and ferry transit systems, to significantly reduce GHG emissions, $40.6 M vehicle miles traveled, and congestion. to benefit priority populations How to access funds? Biennial competitive application process. Who receives funds? Public agencies that operate or have planning responsibility for 39% existing or planned intercity or commuter passenger rail service, urban rail transit, or bus or ferry service. 61% How do funds reach priority populations? Projects benefiting disadvantaged communities are encouraged and taken into consideration during the evaluation process. The program has a statutory requirement of providing at least 25 percent of available funds to projects that provide direct, meaningful, and assured benefits to disadvantaged communities. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin 16 By statute, the TIRCP program is appropriated 10% of the proceeds of each isa vanta e ommunities quarterly auction. SB 9 (Beall, Chapter 710, Statues of 2015) directed TIRCP to fund transformative capital improvements and authorized CalSTA ot er areas of California to make multi-year funding commitments in furtherance of that purpose. In doing so, the amount of funding for selected projects may exceed the cumulative appropriations, in anticipation of future funding availability.
California Climate Investments · 2019 Annual Report 53 Transit and Intercity Rail Capital Program: Antelope Valley Transit Authority Sees a Zero-Emission Future Serving Northern Los Angeles County and the cities of Palmdale and Lancaster, the Antelope Valley Transit Authority (AVTA) provides mobility and access to the residents of a region with a rich history of aerospace innovations that includes the Air Force Test Center and Edwards Air Force Base. The Antelope Valley is home to a robust manufacturing sector that features Northrup Grumman (building the F35, the worlds most advanced combat aircraft), General Atomics, Lockheed Martin and many others. Meeting the transportation needs of this dynamic and diverse region requires AVTA buses to travel more than 3 million miles per year, making the move to zero-emission buses not just important but absolutely necessary. By taking public transit, AVTA customers are choosing the most inexpensive mode of transport, doing their part to relieve congestion, and with our zero-emission buses, they are also helping create a healthier region for themselves and the community at large by eliminating thousands of tons of PM and GHG from diesel- and CNG-fueled buses. Eliminating exhaust by-products emitted by diesel and natural gas buses leads to a healthier environment on multiple fronts. It creates a healthy emission-free space for our customers and for the bus operators who no longer have to breathe recirculated exhaust, or deal with the clanking and vibration of an internal combustion engine. Maintenance technicians benefit from not having any exhaust fumes in the shop, no diesel fuel on their skin, no dirty harmful particulate residue from replacing and cleaning PM traps and no more caustic diesel emission fluid to handle, store and dispense. “I think we’re setting the standard for the entire country with electrifying the bus system in the Antelope Valley,” stated Assemblyman Tom Lackey. AVTA first embarked on the journey toward an all-electric zero emission bus fleet in 2015. Thanks to funding awarded by the California State Transportation Agency in 2015, AVTA was able to purchase the first 29 of the 85 zero-emission battery-electric buses. AVTA was able to procure the world’s first 60-foot zero-emission battery-electric articulated bus, as well as the nation’s first battery-electric commuter coaches. With additional awards in 2016 and 2018, AVTA is making the entire fleet electric.
54 California Climate Investments · 2019 Annual Report Affordable Housing & 2018 OUTCOMES Sustainable Communities FUNDING
Affordable Housing and Sustainable $166.1 M implemented Communities Program EXPECTED BENEFITS
STRATEGIC GROWTH COUNCIL (SGC) 220,039 17 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 1,409 $1,121.8 million allocated. housing units How much has gone to implemented projects? 1,247 $314.5 million implemented. affordable housing units How much has been assigned for future projects? $257.5 million selected and awarded but not yet implemented. FUNDING DISTRIBUTION Program Description $122.4 M What type of projects are funded? to benefit priority populations Affordable housing loans and other capital grants for housing- related infrastructure, sustainable transportation infrastructure, transportation-related amenities, and related programs. How to access funds? 26% Competitive application process. Who receives funds? 65% Local government agencies or districts (e.g., housing, transit, 9% redevelopment, or planning), developers, university, college, or school districts, and federally recognized tribes. How do funds reach priority populations? At least 50 percent of funds go to projects benefiting disadvantaged communities; projects should fulfill an identified isa vanta e ommunities community need and the community should be involved in project development. lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California 17 By statute, the AHSC program is appropriated 20% of the proceeds of each quarterly auction. SGC conducts competitive solicitations for AHSC funding awards on a 12 month cycle. This results in a temporary gap between appropriated and selected/awarded funds each year. The AHSC program is currently in another solicitation round and SGC plans to select approximately $400 million in new projects in June 2019.
California Climate Investments · 2019 Annual Report 55 Affordable Housing and Sustainable Communities: New Housing & Retail Development in Redding In June 2018, the City of Redding, located in northern California’s Shasta County, was awarded $20 million through the Strategic Growth Council’s Affordable Housing Sustainable Communities (AHSC) Program to support the development of the Block 7 Net Zero Housing and Downtown Activation Project. Developed by K2 Land and Investment, LLC, in collaboration with the City of Redding, the McConnell Foundation, Shasta Living Streets, and a number of other community organizations, this project will build 78 new homes and over 12,000 square feet of commercial retail space in downtown Redding. The project also includes almost 4 miles of bike lanes and over half a mile of sidewalks and urban greening elements that will complete a river trail connection from Turtle Bay Exploration Park to downtown. In addition, there will be a bikeshare program for the broader community, and funding for active transportation education. The AHSC program supports developments that make it easier for Californians to drive less by ensuring housing and jobs are accessible by walking, biking, and transit — precisely what the Block 7 project is designed to do. Shasta County ranks sixth highest for levels of pedestrian death and bicycle collision in the US, and Redding community members lack convenient access to transit. By partnering with a variety of local organizations, the developer was able to engage community members to ensure that the project would address their most pressing needs. Around 130 community members attended the first outreach event, which was hosted by The McConnell Foundation. The Shasta Arts Council provided child care at the event and engaged young people by asking them to draw their visions for the project, including ideas for greenery, playgrounds, and parks. At the second outreach event, community members filled out comment cards with requests for bike rentals, more bike racks, accessible public bathrooms, and downtown shopping centers. All of these suggestions were incorporated into the final project. Now that the award has been granted, the McConnell Foundation has these comment cards displayed as a visual reminder of the importance of engaging community members in the decisions that impact their lives. According to Rachel Hatch of the McConnell Foundation, this venture will finally allow community members to “make the healthy choice, the easy choice.”
56 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Climate Research Program $6.9 M implemented
FUNDING DISTRIBUTION STRATEGIC GROWTH COUNCIL (SGC) Cumulative Funding $0.0 M to benefit priority populations How much funding has the program received? $29.0 million appropriated. How much has gone to implemented projects? $6.9 million implemented. How much has been assigned for future projects? $16.7 million selected and awarded but not yet implemented. 100% Program Description What type of projects are funded? Research on reducing carbon emissions, including clean energy, adaptation, and resiliency, with an emphasis on California. How to access funds? Competitive application process. isa vanta e ommunities lo in ome ommunities Who receives funds? ouse ol s Researchers (including qualified scientists, engineers, and educators) affiliated with one of the following institutions: University of outsi e enefitin California, California State University, federally-funded national isa vanta e ommunities laboratories located in California, private, non-profit colleges and ot er areas of California universities located in California, and private, non-profit research organizations located in California. How do funds reach priority populations? Research projects are required to demonstrate how the research will be used to benefit disadvantaged communities, low-income communities, or low-income households. In some cases, research projects specifically target priority populations by pursuing pilots in those communities; in others, the expected outcomes of the research will directly benefit priority populations’ adaptation to the impacts of climate change.
California Climate Investments · 2019 Annual Report 57 Affordable Housing & 2018 OUTCOMES Sustainable Communities FUNDING
Sustainable Agricultural Lands $10 M implemented Conservation Program EXPECTED BENEFITS
STRATEGIC GROWTH COUNCIL (SGC) TBD Cumulative Funding FUNDING DISTRIBUTION How much funding has the program received? $118.5 million allocated. $0.0 M How much has gone to implemented projects? to benefit priority populations $19.4 million implemented. How much has been assigned for future projects? $95.2 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Protection of critical agricultural lands from conversion to more 100% GHG-intensive residential uses by facilitating conservation easements and strategy plans that result in direct protection of at-risk lands. How to access funds? Competitive application process. Who receives funds? isa vanta e ommunities Easement funding available to local and regional government lo in ome ommunities entities and nonprofit organizations. Strategy and Outcome ouse ol s grants available to local governments in collaboration with other outsi e enefitin organizations, such as land trusts and open space districts. isa vanta e ommunities How do funds reach priority populations? ot er areas of California Projects benefiting disadvantaged communities receive higher application scores and have a lower requirement for matching funds.
58 California Climate Investments · 2019 Annual Report Sustainable Agricultural Lands Conservation Program: East Lake Berryessa Conservation Easements The Sustainable Agricultural Lands Conservation Program (SALC) has awarded three consecutive years of funding to the Land Trust of Napa County to protect nearly 13,000 contiguous acres of grazing lands and oak woodlands along the eastern edge of Lake Berryessa in Napa County. The block of six conservation easements provides connectivity between Lake Berryessa, BLM lands to the east, and the 21,500-acre Knoxville Wildlife Area, which in turn connects to federal lands that extend to the Oregon border. Agricultural conservation easements protect important agricultural lands from conversion to urban or rural development to promote smart growth within existing jurisdictions and support a healthy agricultural economy. “These projects are having a large-scale impact,” said Doug Parker, CEO of the Land Trust of Napa County. “6,700 contiguous acres are protected already through SALC easements and nearly that much again are scheduled for 2019. And because the easements will protect hundreds of thousands of trees, these projects will lead to significant ongoing carbon sequestration, while also avoiding the emissions that would have resulted from development. These projects would not have happened without the SALC Program.” The ranches’ large, open grasslands along Lake Berryessa transition to oak woodlands and forested land as they ascend to the ridge on the Napa-Yolo county line. In addition to conserving the ranching history and agricultural opportunities provided by each property, these projects will: • Ensure that wildlife corridors across these habitats remain intact; • Protect extensive oak woodlands, a habitat endemic to California and a priority for conservation statewide; and, • Protect watersheds that contribute to Lake Berryessa, a key source of water for Solano County in perpetuity. “With continued pressure from urban sprawl, large tracts of land like this are constantly under threat of being taken out of grassland production,” said Pete Craig, landowner and ranch manager of the Berryessa Ranch properties. “This reality not only eliminates the ranching way of life, but takes away the ability of Mother Nature to work in combination with cattle ranchers to produce natural, low cost protein…..beef, and at the same time, help fight global warming, through enhanced carbon sequestering! Having this land protected and dedicated to ranching will help us achieve our dream of a sustainable ranching operation next to beautiful Lake Berryessa. And it will allow my son, Will, the opportunity to follow in my footsteps, if he has it in him!”
California Climate Investments · 2019 Annual Report 59 2018 OUTCOMES
FUNDING Technical Assistance $0.9 M implemented
FUNDING DISTRIBUTION STRATEGIC GROWTH COUNCIL (SGC) Cumulative Funding $0.9 M to benefit priority populations How much funding has the program received? $4.0 million appropriated. How much has gone to implemented projects? $0.9 million implemented. 25% How much has been assigned for future projects? $2.3 million selected and awarded but not yet implemented.
Program Description 75% What type of projects are funded? Application assistance, partnership development and capacity building activities for eligible California Climate Investments applicants. How to access funds? isa vanta e ommunities Program-specific solicitation process for administrators. lo in ome ommunities ouse ol s Who receives funds? California Climate Investments applicants, especially those from outsi e enefitin disadvantaged and low-income communities. isa vanta e ommunities ot er areas of California How do funds reach priority populations? 95% of funds will be expended to assist applicants from disadvantaged and low-income communities.
60 California Climate Investments · 2019 Annual Report Technical Assistance Program: Deep Dive Technical Assistance for the City of Santa Rosa and Sonoma County In 2018, in the wake of the Tubbs Fire that burned in Napa, Sonoma, and Lake Counties, the Strategic Growth Council was able to extend technical assistance to the City of Santa Rosa and Sonoma County to look at the suite of California Climate Investments programs and provide assistance in pursuing funding to support wildfire recovery efforts. A technical assistance (TA) team led by Enterprise Community Partners and Estolano Lesar Advisors participated in a kick-off meeting in Santa Rosa to gauge local recovery efforts and better understand community needs. From there, the TA team provided staff at both the city and county with a holistic overview of the California Climate Investments programs and worked on prioritizing programs based on community needs. The work culminated with an in-person stakeholder meeting in August focused on the Affordable Housing and Sustainable Communities Program and Urban Greening Program, where the TA team and state agency reps worked alongside county and city staff to brainstorm project components and create a plan for future applications. Additionally, a representative from the McConnell Foundation in Redding was invited to give a profile on their efforts to build a more sustainable downtown Redding and offer best practices and a peer-to-peer exchange on how to participate successfully in California Climate Investments programs. As a result of the meeting and peer-to-peer exchange, Redding and Santa Rosa staff have remained in close contact and have visited each other’s cities to learn more about fire recovery and to share resources. Following the meeting, the TA team has been in touch for the current Affordable Housing and Sustainable Communities program round to assist with the submission of an application for much-needed affordable housing in Santa Rosa.
California Climate Investments · 2019 Annual Report 61 2018 OUTCOMES
Transformative Climate No projects were Communities Program implemented in 2018.
STRATEGIC GROWTH COUNCIL (SGC) Cumulative Funding How much funding has the program received? $190.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $133.0 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Community-driven, collaborative projects that integrate a variety of California Climate Investments project types within a five-square mile area to create transformative change at the neighborhood level. How to access funds? Competitive. In the first round of the program, half of the funds were allocated in the City of Fresno, one fourth of the funds in the City of Los Angeles, and the remaining one fourth of the funds in a third location. Who receives funds? Community-based organizations, local governments, nonprofit organizations, philanthropic organizations and foundations, faith-based organizations, coalitions or associations of nonprofit organizations, community development finance institutions, community development corporations, joint powers authorities, and tribal governments. How do funds reach priority populations? The majority of a project area must be in census tracts that are within the top five percent of the most disadvantaged communities, with the remainder of the project occurring within a disadvantaged or low-income community.
62 California Climate Investments · 2019 Annual Report Transformative Climate Communities: Watts Rising In January 2018, the Strategic Growth Council awarded $33.5 million to the Watts Rising Collaborative, led by the Housing Authority of the City of Los Angeles (HACLA) as part of the Transformative Climate Communities Program. Located in the southeastern portion of the City of Los Angeles, Watts is surrounded by numerous sources of intense air pollution and faces serious health disparities and limited transportation options for its residents. Watt’s Transformative Climate Communities (TCC) grant seeks to address these challenges through a suite of coordinated projects, including low-carbon transportation options, affordable housing, thousands of street trees, and other amenities that respond to the unique needs of the community. John King of HACLA explained that, “This investment will help improve the quality of life for the residents of Watts for years to come. From electric buses and solar paneling, to bike paths and clean, efficient, new affordable housing, it’s just a blessing to build upon and be a part of transforming Watts.” The “Watts Rising” plan for neighborhood transformation through the TCC program builds upon a decade of community leadership and planning, including more than 200 community engagement activities and outreach to over 5,000 individuals. After learning about the TCC program, HACLA hosted six public workshops that were attended by over 400 community members, including Watts residents, local government and elected officials, medical providers, educators, environmental and business leaders, community group representatives, and religious leaders. During the workshops, these diverse stakeholders set goals and selected strategies to reduce GHG emissions, improve public health, and provide economic benefits to the community. Participants then voted to select priority projects and worked collaboratively to define the details of the Watts Rising plan. The Housing Authority presented the final proposed plan at numerous stakeholder meetings and at four public housing sites to gather additional input before submitting its winning application. When TCC awards were announced at the January 2018 Strategic Growth Council Meeting, a group of Watts residents traveled to Sacramento to express their excitement, appreciation, and determination to improve their community. One resident passionately told the Council, “The Transformative Climate Communities program will allow Watts to finally move away from survival mode to becoming an integrative, sustainable community.”
California Climate Investments · 2019 Annual Report 63 CLEAN ENERGY & ENERGY EFFICIENCY 2018 OUTCOMES
FUNDING Woodsmoke Reduction Program $1.3 M implemented
EXPECTED BENEFITS CALIFORNIA AIR RESOURCES BOARD (CARB) Cumulative Funding 12,201 MTCO e GHG reductions How much funding has the program received? 2 $8.0 million appropriated. 241,401 How much has gone to implemented projects? pounds PM2.5 reductions $1.3 million implemented. 30,192 How much has been assigned for future projects? pounds black carbon reductions $4.0 million selected and awarded but not yet implemented. FUNDING DISTRIBUTION Program Description What type of projects are funded? $1.2 M Vouchers or rebates for the replacement of uncertified residential to benefit priority populations wood burning stoves, inserts, and fireplaces used for primary space heating with cleaner, more efficient home heating devices. 1% How to access funds? 5% First-come, first-served, with preference to priority populations; administered via California Air Pollution Control Officers Association and local air districts. Who receives funds? Households using uncertified wood stoves or wood inserts, or utilizing a fireplace as a primary heat source. 94% How do funds reach priority populations? Larger incentives for members of priority populations, as well as outreach targeting these residents and prioritization of applicants from these populations. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 65 2018 OUTCOMES
Food Production Investment Program No projects were implemented in 2018.
CALIFORNIA ENERGY COMMISSION (CEC) Cumulative Funding How much funding has the program received? $124.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $27.3 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Grants to food processors to implement projects that reduce GHG emissions and onsite energy consumption. How to access funds? Competitive application process. Who receives funds? California food processors.
66 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
Renewable Energy No projects were for Agriculture Program implemented in 2018.
CALIFORNIA ENERGY COMMISSION (CEC) Cumulative Funding How much funding has the program received? $10.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? TBD Program Description What type of projects are funded? Adoption of on-site renewable energy technologies (such as wind and solar) at agricultural operations. How to access funds? Competitive application process. Who receives funds? Private entities, local governments, academic, educational, and nonprofit organizations, joint powers authorities, and tribal governments. How do funds reach priority populations? Higher application scores for projects benefiting disadvantaged communities.
California Climate Investments · 2019 Annual Report 67 Low-Income Weatherization 2018 OUTCOMES
Farmworker Housing Single-Family No projects were Energy Efficiency and Solar PV implemented in 2018.
CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT (CSD) Cumulative Funding How much funding has the program received? $10.8 million allocated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $0.2 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Direct installation of energy efficiency measures, solar water heating, and solar PV systems for farmworker dwellings (within 12 eligible counties) at no cost to residents. How to access funds? First-come, first-served for eligible farmworker households; Farmworker Housing Administrators selected through a competitive process. Who receives funds? Income-qualifying farmworkers within the 12 eligible counties. How do funds reach priority populations? All households receiving the program must qualify as low-income farmworker housing.
68 California Climate Investments · 2019 Annual Report Low-Income Weatherization 2018 OUTCOMES
FUNDING Multi-Family Energy Efficiency and Renewables $5.3 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT (CSD) 18,247 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 21,619,904 $54.4 million allocated. kWh energy savings How much has gone to implemented projects? 19,404,875 $20.7 million implemented. kWh energy generation How much has been assigned for future projects? 15,874,281 $31.1 million selected and awarded but not yet implemented. gallons water savings Program Description FUNDING DISTRIBUTION What type of projects are funded? Technical assistance and incentives for the installation of energy-efficiency measures and solar photovoltaics (PV) $5.3 M in low-income multifamily dwellings in disadvantaged and to benefit priority populations other communities. How to access funds? First-come, first-served for eligible multi-family property owners; administered by the Association for Energy Affordability. Who receives funds? Owners of low-income multi-family properties in disadvantaged 100% and other communities. How do funds reach priority populations? Program services and funding only available for property owners of low-income multi-family properties in disadvantaged communities. Service provider provides outreach to promote program awareness in disadvantaged and other communities. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 69 Low-Income Weatherization Program: San Diego Supportive Housing Property When the operator of affordable housing in San Diego that focuses on individuals who have experienced homelessness and mental health issues sought to renovate an aging supportive housing property, “The Allison,” they turned to the Department of Community Services and Development’s (CSD) Low-Income Weatherization Program (LIWP) to fund a rooftop solar photovoltaic (PV) system and energy efficiency improvements. Installed in 2018, these California Climate Investments funded improvements that are projected to reduce energy usage across the property by 35 percent, with tenant energy bills
expected to decrease dramatically, and reduce GHG emissions by an estimated 75 MTCO2e per year over the life of the project. “We’re even more proud of The Allison apartments than we were before, if that was possible,” said Jon Walters of Housing Innovation Partners. “This property is now highly energy efficient: we’ve got enhanced community spaces, enhanced apartment interiors, and we’re ready to serve this community and our tenants for decades to come.” LIWP’s Multi-Family Program Administrator, the Association for Energy Affordability, worked with The Allison’s owner, Housing Innovation Partners, and the development team led by Wakeland Housing and Development to conduct an energy audit and identify the best suite of energy efficiency improvements and solar system size for the 58-unit property. Apartments were completely renovated and energy conserving refrigerators, LED lighting, and heat pump water heaters funded by LIWP were installed. Another CSD contracted partner, GRID Alternatives, installed an 87-kilowatt rooftop solar PV system and provided a workforce development opportunity to ten trainees, nine of whom subsequently found employment in the solar industry. “We’re fortunate… that our property reduces its carbon footprint with solar panels as well as our smart phone-controlled water heaters, which are very cool!” said one Allison resident. “I know I can speak for all of the residents here for how grateful and humble I am for the renovation that has taken place.” The solar and energy efficiency improvements that LIWP funded will not only help The Allison’s low-income tenants devote more of their financial resources towards necessities other than energy bills, they will also help ensure that The Allison continues for many years to provide critical supportive housing to help those who have struggled with homelessness live stable, healthy lives.
70 California Climate Investments · 2019 Annual Report Low-income Weatherization 2018 OUTCOMES
Community Solar No projects were implemented in 2018.
CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT (CSD) Cumulative Funding How much funding has the program received? $4.4 million allocated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $4.4 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Solar PV installations that benefit low-income households. How to access funds? Competitive application process. Who receives funds? A team composed of any of the following: nonprofits, local or tribal government entities, publicly owned utilities, community development corporations and finance institutions, joint powers authorities, and community choice aggregators. How do funds reach priority populations? All projects must benefit low-income households.
California Climate Investments · 2019 Annual Report 71 Low-Income Weatherization 2018 OUTCOMES
FUNDING Single-Family Energy Efficiency and Solar Photovoltaics $40.8 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT (CSD) 119,041 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 85,696,168 $70.3 million allocated. kWh energy savings How much has gone to implemented projects? 169,671,125 $51.5 million implemented. kWh energy generation How much has been assigned for future projects? 56,402,450 $10.5 million selected and awarded but not yet implemented. gallons water savings Program Description FUNDING DISTRIBUTION What type of projects are funded? The installation of energy-efficiency measures, solar water heating, and solar PV in low-income single-family (and, previously, small $40.7 M multifamily) dwellings in disadvantaged communities at no cost to benefit priority populations to residents. How to access funds? First-come, first-served for eligible households; Regional Administrators selected through a competitive process (previously, service providers were selected from CSD’s existing federally-funded statewide network). 100% Who receives funds? Households with low-income residents in disadvantaged communities. How do funds reach priority populations? Program services only available for low-income residents in disadvantaged communities; Regional Administrators provide isa vanta e ommunities outreach to promote program awareness in disadvantaged communities. lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
72 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Water-Energy Grant Program $12.9 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF WATER RESOURCES (DWR) 138,850 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 68,867,334,136 $50.0 million appropriated. gallons water savings How much has gone to implemented projects? $32.3 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? $12.5 million selected and awarded but not yet implemented. $8.9 M to benefit priority populations Program Description What type of projects are funded? Commercial and institutional water-energy efficiency programs or projects, and residential water-energy efficiency programs or projects benefiting disadvantaged communities. 31% How to access funds? Competitive application process. 68% 1% Who receives funds? Local agencies, joint power authorities, and nonprofit organizations. How do funds reach priority populations? Projects benefiting disadvantaged communities received isa vanta e ommunities higher funding priority rankings. lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 73 Water Energy Grants Program: Low-Income Residential Water Measure Project Coordinated by the Association of California Community and Energy Services (ACCES), the Low-Income Residential Water Measure Project helps California residents in disadvantaged communities and low-income households save money by optimizing water and energy use within their homes, all while reducing GHG emissions and residential water use. Thanks to a $1.9 million grant awarded by the Department of Water Resources (DWR) and funded by California Climate Investments’ Water Energy Grant Program, ACCES partner agencies replaced 1,090 washing machines and 855 dishwashers with water- and energy-efficient machines, saving more than 181.5
million gallons of water and reducing GHGs by at least 3,348 MTCO2e. These energy and water savings will continuously provide cost savings across various communities in Kern, Madera, Contra Costa, Kings, San Francisco, and Merced counties and other low-income homes in San Mateo, Shasta, and Tehama counties. “Equity can be a concern for energy efficiency programs, especially for more rural areas. Families were very happy to receive these services, and our agency was appreciative of DWR and the program for assisting these rural low-income households,” said Val Martinez, Executive Director with the Redwood Community Action Agency, an ACCES partner agency. This effort coincides with state and federal weatherization programs such as the California Public Utilities Commission's Energy Savings Assistance Program, US Department of Energy's Weatherization Program, US Department of Health & Human Services’ Low-Income Energy Assistance Program and the state Cap-and-Trade Low-Income Weatherization Program administered through the California Department of Community Services and Development.
74 California Climate Investments · 2019 Annual Report NATURAL RESOURCES & WASTE DIVERSION 2018 OUTCOMES
Local Coastal Program No projects were implemented in 2018.
COASTAL COMMISSION (CCC) Cumulative Funding How much funding has the program received? $3.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? TBD Program Description What type of projects are funded? Projects facilitate GHG emission reductions through land use and planning to address the impacts of climate change through the development of new or amendment of existing Local Coastal Programs, which are local land use plans for the coastal zone of California. How to access funds? Competitive application process. Who receives funds? Local governments in the coastal zone. How do funds reach priority populations? Funding reaches priority populations through the direct engagement of communities in the local planning process and through the eventual implementation of policies that provide benefits; such as through land use policies that build better public transportation for priority populations to access the coast or policies that require shoreline management plans that increase protection against hazards associated with sea level rise or flooding for a vulnerable disadvantaged community.
76 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Training and Workforce Development Program $6.1 M implemented
EXPECTED BENEFITS CONSERVATION CORPS (CCC) Cumulative Funding 4,125 tree plantings How much funding has the program received? $24.1 million appropriated. 1,358 acre restoration How much has gone to implemented projects? $6.1 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? No additional funds have been selected or awarded. $2.9 M Program Description to benefit priority populations What type of projects are funded? Fire prevention and forest health management, energy conservation, and urban greening projects. 9% How to access funds? The CCC has multiple Centers out of which crews operate, and each Center receives funding based on the number of full-time 52% equivalent Corpsmembers positioned there. Centers access GGRF 40% funding for specific projects on a first-come, first-served basis. Who receives funds? California Conservation Corps. How do funds reach priority populations? Most Corpsmembers are from disadvantaged or low-income isa vanta e ommunities communities or low-income households. While the CCC do not have formal targeted hiring practices, they do actively recruit from lo in ome ommunities priority populations. ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 77 Workforce Development Program: Acorn-Sugarloaf Road Fuel Break Project Nestled along Little Sandy Creek along the northern edge of Fresno County sits the Town of Auberry. More than 2,300 residents call the community home, and despite its idyllic nature, it is a community at high risk of wildfire. The federal government identifies Auberry as one of hundreds of at-risk communities in the urban- wildland interface. To prevent catastrophe from hitting the communities on the western edge of the Sierra National Forest, the California Department of Forestry and Fire Protection (CAL FIRE) partnered with the California Conservation Corps (CCC) to reduce the flammable woody material in the area. Nearly $135,000 allocated to the CCC from California Climate Investments got the job done. The CCC Fresno Center spent 4,480 hours using chainsaws and hand tools along Acorn and Sugarloaf Roads near the rim of the San Joaquin River Canyon. Under the direction of CAL FIRE, CCC crews spent several months reinforcing the key fire defense of Auberry known as the Acorn-Sugarloaf Road Fuel Break. The work completed by the CCC covered 25 acres of State Responsibility Area. The crews removed live and dead vegetation, brush, trees up to eight inches in diameter, and ladder fuels up to eight feet high. More than 1,400 cubic yards of debris was assembled into slash piles for burning by CAL FIRE. The Corpsmembers worked a 200-foot-wide swath along Acorn Road to reinforce the fuel break, often in difficult terrain. The area is vegetation-dense with a mix of conifers and brush. There are few natural fire barriers, which is why the fuel break is so critical to the area. “The hardest part was just getting in there,” said Fresno Corpsmember Andy Settle. “When stuff hasn’t been cut in years it tends to be harder, stuff pokes you, and it’s difficult to access. But putting in a fire break, that’s a big deal, it will slow down a fire and give residents time to leave. Being able to see a difference in the work we did felt great.” The area has been hit by 25 major fires in the last 100 years, most notably the August 1989 Powerhouse Fire, which scorched about 21,000 acres and forced the evacuation of 4,000 residents in and around Auberry.
78 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
Wetlands & Watershed No projects were Restoration Program implemented in 2018.
DEPARTMENT OF FISH AND WILDLIFE (DFW) Cumulative Funding No projects were implemented in 2018. How much funding has the program received? $47.2 million appropriated. How much has gone to implemented projects? $21.3 million implemented. How much has been assigned for future projects? No additional funds have been selected or awarded. Program Description What type of projects are funded? The restoration of California wetlands and watersheds. How to access funds? Competitive application process. Who receives funds? Public agencies, nonprofit organizations, and recognized tribes. How do funds reach priority populations? Projects benefiting disadvantaged communities receive higher application scores.
California Climate Investments · 2019 Annual Report 79 Wetlands Restoration for Greenhouse Gas Reduction Program: Blue Carbon at Elkhorn Slough: Increasing Regional Carbon Sequestration through Salt Marsh Restoration A substantial number of Californians live in cities that are directly on coastal shorelines. Despite the high populations around them, California coastal shorelines are some of the most threatened ecosystems because of conversions and degradation, largely driven by human activities and exacerbated by climate change. The protection and restoration of wetlands and salt marsh is a great way to help continue carbon sequestration and storage while providing coastal protection from such events as flooding to upland areas. California’s Elkhorn Slough, located about 100 miles south of San Francisco Bay, features the state’s most extensive salt marsh, south of the Bay Area. Not only has Elkhorn Slough been described as an “environmental crown jewel” of the California central coast for hosting a rich diversity of plants and animals, it was recently recognized as a Wetland of International Importance by the Ramsar Convention on Wetlands. However, without restoration, this resource will “drown” within 50 years because of sea level rise. The Blue Carbon at Elkhorn Slough Project is restoring 66 acres of rare salt marsh habitat and native plants while buffering the surrounding areas against future sea level rise. The Tidal Wetland Program at the Elkhorn Slough National Estuarine Research Reserve guided the project with input from more than 100 local partners, scientists, regulators, and community members. Almost half of the project cost was funded by the California Department of Fish and Wildlife’s Wetlands Restoration for Greenhouse Gas Reduction Program, part of California Climate Investments. In addition to its carbon storage benefits, the Blue Carbon Project at Elkhorn Slough also provides jobs and income to local economies, improves water quality, supports fish and wildlife, and extends coastal protection. Other benefits include: • Helping safeguard local populations of pickleweed, a low-growing, succulent, perennial subshrub which not only filters water and improves fish and wildlife habitat but also is excellent at capturing and holding carbon. This is great news for California, which leads the nation in “blue-carbon” market initiatives that cut climate-heating gas emissions and boost the bottom line. • Boosting available salt marsh habitat for a diverse assemblage of estuarine species such as sea otters to feed, rest, breed, and raise their young. • Ensuring future protection: The restored, higher-set marsh area is expected to trap sediments that will help buffer the salt marsh against sea level rise.
80 California Climate Investments · 2019 Annual Report Dairy Methane 2018 OUTCOMES
FUNDING Alternative Manure Management Program $29.7 M implemented
EXPECTED BENEFITS DEPARTMENT OF FOOD AND AGRICULTURE (CDFA) Cumulative Funding 695,814 MTCO2e GHG reductions How much funding has the program received? $48.0 – 76.0 million allocated. FUNDING DISTRIBUTION How much has gone to implemented projects? $29.7 million implemented. $0.0 M How much has been assigned for future projects? to benefit priority populations $1.9 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Financial incentives to implement non-digester practices to reduce or avoid methane emissions, including solid separation, conversion from flush to scrape manure collection and enhanced pasture-based 100% management practices. How to access funds? Competitive application process. Who receives funds? Commercial dairy and livestock operators. How do funds reach priority populations? isa vanta e ommunities Higher application scores for projects benefiting disadvantaged lo in ome ommunities and low-income communities. ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 81 Alternative Manure Management Program: Manure Separator Project, San Joaquin Valley Dennis DaSilva is a second-generation California dairy farmer whose parents began the family’s first dairy farm in 1983 with 150 cows. Today, the DaSilva family owns and operates four dairy and five heifer facilities in the San Joaquin Valley. The family’s success led to a facility becoming one of 18 inaugural recipients of the California Department of Food and Agriculture’s Alternative Manure Management Program in 2017. The $375,000 grant has allowed Mr. DaSilva to replace an existing solid separation system with a new, more efficient manure separator and concrete pad. Separated manure is dried and composted on the concrete pad and is then used for bedding and fertilizer for forage crops. The ability for Mr. DaSilva to produce his own compost will allow the facility to use this value-added product to their fields as soil amendments in lieu of using commercial fertilizers.
In addition to electricity savings and the estimated 37,500 MTCO2e of GHG reductions over five years, Mr. DaSilva is also seeing water savings and improvements to water quality. Mr. DaSilva is extremely satisfied with his new solid separation system and was surprised at how much a difference the system is making on the overall operational efficiency of his dairy facility. “The old system was not efficient, running 24 hours a day because it could only handle 300 gallons of flushed manure a minute with manure being pumped at a much faster rate of 2,000 gallons a minute,” Mr. DaSilva stated. “The new system only needs to run 4 hours a day and the electricity savings alone will be enough to pay for the operation and maintenance of the entire system over the course of its life.” Mr. DaSilva hopes the success of this project will encourage other dairy farmers in the San Joaquin Valley and throughout California to consider similar improvements to their facilities by applying for grant funding. Mr. DaSilva has even considered applying for additional grant funding in the future for the family’s other dairy facilities and is a firm believer that everyone can make a difference in the fight against climate change by making smart investments.
82 California Climate Investments · 2019 Annual Report Dairy Methane 2018 OUTCOMES
FUNDING Dairy Digester Research and Development Program $70.5 M implemented
EXPECTED BENEFITS DEPARTMENT OF FOOD AND AGRICULTURE (CDFA) Cumulative Funding 7,391,126 MTCO e GHG reductions How much funding has the program received? 2 $168.0 – 196.0 million allocated. 147,674,698 gallons fuel generation How much has gone to implemented projects? $112.6 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? $1.9 million selected and awarded but not yet implemented. $51.3 M Program Description to benefit priority populations What type of projects are funded? Financial incentives for the design and construction of new digester systems that decrease methane emissions.
How to access funds? 27% Competitive application process. Who receives funds? Dairy operations, dairy digester developers, and partnerships 73% between these entities. How do funds reach priority populations? Outreach to local communities evaluated in application scoring for all projects, and higher scores possible for projects benefiting disadvantaged and low-income communities. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 83 Dairy Digester Research and Development Program: California Bioenergy As a recipient of funding from both the California Department of Food and Agriculture’s Dairy Digester Research and Development Program and the California Public Utility Commission’s (CPUC) Dairy Biomethane Pilot Projects, California Bioenergy (CalBio) and its farm partners are committed to providing benefits to local communities along with the digester projects they build. Rob Vandenheuvel, Senior Vice President of Member & Industry Relations at California Dairies, Inc., the largest dairy farmer-owned cooperative in California, has noted that, “Projects like CalBio’s digesters enable California’s dairy families to help advance the state’s environmental goals, while also creating new economic opportunities Ms. Isabel Lopez, CalBio’s first intern. for local communities. CalBio’s projects generate critical additional revenues that are reinvested into job-supporting dairy farms and the communities that surround them.” CalBio builds dairy methane pipeline injection projects where there is a cluster of dairies. The initial projects are in the southern San Joaquin Valley. These projects provide significant economic development by generating tax revenues and supporting jobs in engineering, construction and operations. The digester projects provide substantial environmental benefits by improving local air quality. Replacing the open-air lagoons of waste with a covered lagoon digester reduces manure-related emissions. Also, utilizing the methane in near-zero emissions natural gas vehicles replaces diesel vehicles and reduces
NOX emissions by an estimated 90%. CalBio further advanced digester projects in 2018 by launching a collaboration with Land O’Lakes, Inc. to help California dairy farmer-members of the cooperative develop digesters. Matt Carstens, senior vice president of Land O’Lakes SUSTAIN, said “CalBio has worked alongside our cooperative, and our dairy members in California, to advance ‘barn-to-biogas’ through close collaboration with California farm families.” On the education front, CalBio and its farm partners are building relationships with College of the Sequoias (COS) serving Tulare and Kings counties, and California State University Bakersfield (CSU Bakersfield). The initiative includes classroom participation and internships as well as funding of academic research or scholarships. Programs focus on students, who are residents of the digester clusters and studying related areas. At CSU Bakersfield, CalBio’s first intern was Isabel Lopez, a chemistry major. She worked with CalBio’s team performing daily digester rounds and conducting analytical testing to determine project performance. She also prepared data related to the quantification of GHG reductions. In addition, at CSU Bakersfield, CalBio will be funding student participation in academic research. At COS, CalBio has committed to providing scholarships. Based on the CDFA and CPUC awarded projects, over thirty scholarships will be awarded. Louann Waldner, Provost, Tulare Center, College of Sequoias, who helped develop the program said, “We are delighted to partner with CalBio to bring financial assistance to our students. The program will help students further their education and develop real-world science skills while the projects will support local dairy farms.”
84 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Healthy Soils Program $5.7 M implemented
EXPECTED BENEFITS DEPARTMENT OF FOOD AND AGRICULTURE (CDFA) Cumulative Funding 51,218 MTCO e GHG reductions How much funding has the program received? 2 $12.5 million appropriated. 5,973 acre restoration How much has gone to implemented projects? $5.7 million implemented. 2,083 How much has been assigned for future projects? tree plantings No additional funds have been selected or awarded. FUNDING DISTRIBUTION Program Description What type of projects are funded? $0.0 M Financial incentives for on-farm management practices that to benefit priority populations sequester carbon, including soil management, establishment of herbaceous and woody cover, and demonstration projects showcasing these practices. How to access funds? Competitive application process.
Who receives funds? 100% Incentives available to farmers, ranchers, and recognized tribes; demonstration project funding to educational institutions, conservation districts, and nonprofit organizations collaborating with farmers, ranchers and recognized tribes. How do funds reach priority populations? Projects benefiting disadvantaged communities receive higher application scores. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 85 The State Healthy Soils Program Charlie Starr grows wine grapes in San Joaquin County. In the past few years, he has been thinking about how to reduce nutrient leaching to groundwater and agricultural dust in the air. The state Healthy Soils Program helped him put his thoughts into action, providing him with the financial incentives to implement conservation management practices on his farmland. His project includes “Cover Crop” and “Reduced-Till.” According to Starr, tilling only every other row of the 96-acre vineyard reduces the release of particulates into the air, decreases water erosion during heavy rain events, and lowers fuel consumption and GHG emissions. It also builds soil organic matter. Growing cover crops helps hold nutrients to the soil/plants and reduces water runoff, which minimizes nutrient leaching to the groundwater. Cover Cropping also helps reduce the amount of non-organic chemical additives and increases vegetative cover which will aid in the reduction of carbon dioxide in the air. Combining reduced-till and cover cropping will improve soil health and increase biodiversity, which makes the production system more sustainable. Most importantly, both practices help improve water and air quality in the Central Valley. The three-year project will allow for testing Starr’s hypotheses while providing the opportunity to establish the economic viability of these practices over the long term. He is contemplating moving to a no-till practice, with the crop reseeding itself. If the measures are deemed successful in the short-term, they will be built into the practices and budgets for future years for his vineyards, and for any future vineyard development.
86 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Fire Prevention Program $75.5 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) 13,344 Cumulative Funding acre restoration How much funding has the program received? 271,636 $102.9 million appropriated. defensible space inspections How much has gone to implemented projects? 27 $75.5 million implemented. community fire plans How much has been assigned for future projects? No additional funds have been selected or awarded. FUNDING DISTRIBUTION Program Description What type of projects are funded? $52.4 M This allocation funds the operations of the CAL FIRE Fire Prevention to benefit priority populations program. This includes a variety of fire prevention services and programs in the State Responsibility Area, including defensible 1% space inspections, helping communities create and update Community Wildfire Protection Plans, fire prevention education, fire hazard severity mapping, implementation of the State and local fire plans, fire-related law enforcement activities such as 31% arson investigation fuels reduction projects that reduce the risk of wildfire to communities, evacuation routes, and infrastructure. 68% How to access funds? CAL FIRE. Who receives funds? CAL FIRE. This appropriation directly funds State operations.
How do funds reach priority populations? isa vanta e ommunities Some CAL FIRE units receiving program funds are located in and lo in ome ommunities provide benefits to priority population communities. ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 87 Forest Health and Fire Prevention Program The project is a continuation of the Turtle Rock Park Biomass Collection site which serves communities in eastern Alpine County. The facility provides a location to collect green waste and biomass that is cleared from private property to create defensible space and thereby reduce wildland fire risk. It operates two times per season, in the spring and fall, for approximately 6 – 8 weeks at a time. There are an estimated 800 houses within this area. Approximately 130 of these utilize the facility to dispose of materials in order to create defensible space on their properties. Annually, an estimated 190 acres are treated with 4,000 to 7,000 yards of biomass collected, processed, and removed for composting, as an effective and environmentally sound alternative to pile-burning. Biomass removed reduces the risk of wildfire and removes material that could burn in a wildland fire. This reduces wildfire emissions and the contribution of GHGs from fires in the treated areas. From Brian Peters (Director, Alpine County Community Development): “I’ve lived in the County for 20+ years and the fuels collection at Turtle Rock predates my time. The community here strongly supports having this operation twice per year. In the early years it was a ’burn pile‘ — the accumulated materials were burned by the fire department. Now the material is chipped and hauled to green waste recyclers in the Carson Valley. About 10 years ago due to budget constraints, the Board of Supervisors dropped the operation to once per year. The community lobbied the Board to reinstate and it has been operating twice per year since. It is a very important part of fire hazard reduction and having it encourages individual property owners to do their part, and also helps to convince newcomers to participate as well. It’s been around so long that it has become a normal part of the spring and fall in the county."
88 California Climate Investments · 2019 Annual Report Sustainable Forests 2018 OUTCOMES
Fire Prevention Grants Program No projects were implemented in 2018.
CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) Cumulative Funding How much funding has the program received? $79.0 — 234.0 million allocated.18 How much has gone to implemented projects? TBD How much has been assigned for future projects? $43.8 million selected and awarded but not yet implemented. Program Description What type of projects are funded? Hazardous fuel removal; fire prevention public education, fire prevention and wildfire safety planning, and defensible space inspections. How to access funds? Competitive application process. Who receives funds? Nonprofit organizations, local agencies, tribes, Fire Safe Councils, and resource conservation districts. How do funds reach priority populations? Projects benefiting priority populations receive enhanced application scoring.
18 CAL FIRE was appropriated $155 million to be allocated between Forest Health and Fire Prevention Grants for FY 2018 – 19
California Climate Investments · 2019 Annual Report 89 Sustainable Forests 2018 OUTCOMES
FUNDING Forest Health Program $78.6 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) 2,665,277 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 226,914 19 $137.7 – 297.7 million allocated. acre restoration How much has gone to implemented projects? 3,603,428 $110.1 million implemented. tree plantings How much has been assigned for future projects? 478,085,879 $17.0 million selected and awarded but not yet implemented. kWh energy generation Program Description FUNDING DISTRIBUTION What type of projects are funded? Reforestation, forest fuel reduction, pest management, conservation easements and fee acquisitions, and forest biomass $34.4 M utilization. to benefit priority populations How to access funds? 3% Competitive application process. Who receives funds? Nonprofit organizations, State and local agencies, tribes, private forest landowners, and conservation districts. 41% 56% How do funds reach priority populations? Projects benefiting priority populations receive enhanced application scoring.
isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
19 CAL FIRE was appropriated $155 million to be allocated between Forest Health and Fire Prevention Grants for FY 2018 – 19.
90 California Climate Investments · 2019 Annual Report Sustainable Forests 2018 OUTCOMES
FUNDING Urban and Community Forestry Program $15.7 M implemented20
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) 94,885 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 16,826,829 $57.8 million allocated. kWh energy savings How much has gone to implemented projects? 73,827 $38.3 million implemented. therms energy savings How much has been assigned for future projects? 12,131 $14.5 million selected and awarded but not yet implemented. tree plantings Program Description FUNDING DISTRIBUTION What type of projects are funded? Urban forest expansion, management, and improvement, and utilization of urban tree waste for wood products and bioenergy. $15.7 M to benefit priority populations How to access funds? Competitive application process. Who receives funds? Local government agencies and nonprofit organizations. 33% How do funds reach priority populations? Projects benefiting disadvantaged communities are eligible for a 67% cost-share waiver and receive enhanced application scoring.
isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California 20 Projects that include tree planting are not considered implemented for reporting purposes until a sufficient number of trees have been planted in order to determine priority population benefits.
California Climate Investments · 2019 Annual Report 91 Urban and Community Forestry Program: El Centro “Free Trees” Grant Program Friends of El Centro Community Services Foundation The El Centro “Free Trees” program is an Urban Forest Expansion and Improvement project that will plant and maintain 1,000 climate appropriate trees within the city of El Centro. Planting sites are focused primarily on private property and school-grounds. This project will increase the public understanding of how urban trees are a valuable infrastructure component in the Imperial Valley by providing future shade benefits in a region where normal summer temperatures can reach 118 degrees F. To receive a tree through the program, education will be mandated for each applicant. Education and outreach through the “Imperial Valley Tree Steward” program will include teaching residents and students about proper tree planting and care, drought tolerant watering practices, and the various benefits of clean air, reduced energy consumption and long term health benefits that urban trees provide. The El Centro “Free Trees” program will also help to combat an unemployment rate near 27% by supporting jobs and building strong partnerships with local organizations like Tree San Diego, Future Farmers of America, and local school districts. This project will train and provide stipend based jobs for 25 certified Tree Stewards to engage the community and help support planting and maintenance activities. These entry point “tree-jobs” will serve residents in low-income and disadvantaged communities by providing opportunities for a career pathway into the broader sector tree-care industry. A healthy foundation starts from the ground up; with the right education, smart tree choices, and a little extra attention, the tiniest saplings will grow into advantageous sources of shade and hope. Friends of El Centro are not only planting trees for the community, but they are planting hope for the next generation of community members. This project represents one of many critical steps in creating a living, breathing Imperial Valley urban forest to help the City of El Centro become a leading example of how using the best urban forestry practices in climate challenged areas can be sustained, and improve the everyday lives of residents in urban settings.
92 California Climate Investments · 2019 Annual Report Waste Diversion 2018 OUTCOMES
FUNDING Food Waste Prevention and Rescue Grants $9.4 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CalRecycle) 358,134 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 163,388 $15.1 million allocated. tons food diversions How much has gone to implemented projects? $9.4 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? No additional funds have been selected or awarded. $9.4 M to benefit priority populations Program Description What type of projects are funded? Projects to prevent food waste from being generated and/or becoming landfill waste, promote distribution of rescued food to people, and require food waste residuals to be composted or 42% digested when available. 58% How to access funds? Competitive application process. Who receives funds? Local governments, nonprofit organizations, for-profit entities, state agencies, public universities and colleges, solid waste facilities, public school districts, and qualifying tribes. isa vanta e ommunities How do funds reach priority populations? lo in ome ommunities Outreach to disadvantaged communities and projects benefiting ouse ol s disadvantaged communities receive additional points during outsi e enefitin application scoring. isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 93 Food Waste Prevention and Rescue Grants: Food Forward: Wholesale Produce Market Recovery Program Expansion, Southern California Food Forward, which recovers produce and makes it available to hunger relief agencies in eight southern California counties, is expanding its Wholesale Produce Market Recovery Program. With the help of California Climate Investments, Food Forward will open a new “Produce Depot” near the wholesale produce market in downtown Los Angeles and double its food recovery capacity. In addition to fighting food insecurity in southern California, the project will benefit disadvantaged communities and the environment by supporting jobs and combating climate change. Hunger is a big issue in Los Angeles and the surrounding counties that Food Forward serves. There are more than 1.2 million people facing food insecurity in Los Angeles alone. Unfortunately, much of the food grown in California is wasted during the distribution process, where ugly or overripe produce is grown and picked but not sellable to grocery stores. Since 2014, Food Forward has been recovering excess fresh produce from the wholesale produce market in downtown Los Angeles and delivering it to large-scale agencies that distribute food to those in need. With the aid of a $500,000 California Climate Investments grant, the Produce Depot will help increase capacity to recover an estimated 15,220 tons of edible produce for disadvantaged communities. The new hub will enable Food Forward to collect, store, and distribute produce to hunger relief agencies from a central location, including a new walk-in refrigerator that will enable a larger time frame for pickup. The grant will also enable Food Forward to hire new staff and purchase new box trucks to increase collection capacity. Food Forward’s programs are also helping California combat climate change, which disproportionately impacts low-income and minority communities. Much of the state’s excess produce is sent directly to landfills, where it decomposes anaerobically and emits methane gas, a superpollutant 25 times more powerful than
CO2 over a 100-year horizon. By diverting 15,220 tons of food waste from landfills, Food Forward is preventing the release of 25,841 metric tons of carbon dioxide equivalent into the atmosphere. That’s like taking 5,486 cars off the road. Food Forward’s Produce Depot project will serve more than 1,800 hunger relief agencies and become a new model for regional, large-scale rescue and distribution of fresh produce, creating a profound, positive impact on the environment and health of southern Californians in need.
94 California Climate Investments · 2019 Annual Report Waste Diversion 2018 OUTCOMES
Organics and Recycling No projects were Manufacturing Loans implemented in 2018.
CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CalRecycle) Cumulative Funding How much funding has the program received? $9.2 million allocated. How much has gone to implemented projects? $2.6 million implemented. How much has been assigned for future projects? No additional funds have been selected or awarded. Program Description What type of projects are funded? Loans to fund construction, renovation, or expansion of facilities for preprocessing, digesting, or composting organics, or the preprocessing or manufacturing of value-added finished products using recycled fiber, plastic, or glass. How to access funds? First-come, first-served. Who receives funds? Local governments, nonprofit organizations, for-profit entities. How do funds reach priority populations? Projects benefiting disadvantaged communities receive preferential points during application scoring.
California Climate Investments · 2019 Annual Report 95 Waste Diversion 2018 OUTCOMES
FUNDING Recycled Fiber, Plastic, and Glass Grants $9.0 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CalRecycle) 172,261 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 144,339 $18.0 million allocated. tons waste diversions How much has gone to implemented projects? $14.0 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? No additional funds have been selected or awarded. $6.0 M to benefit priority populations Program Description What type of projects are funded? The construction, renovation, or expansion of facilities to process or manufacture value-added products from California-derived, newly diverted fiber, plastic, or glass waste. 33% 33% How to access funds? Competitive application process.
Who receives funds? 33% Local governments, nonprofit organizations, for-profit entities, state and federal agencies, public universities and colleges, solid waste facilities, public school districts, and qualifying tribes.
How do funds reach priority populations? isa vanta e ommunities Outreach to disadvantaged communities and projects benefiting disadvantaged communities receive additional points during lo in ome ommunities application scoring. ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
96 California Climate Investments · 2019 Annual Report Waste Diversion 2018 OUTCOMES
FUNDING Organics Grants $33.1 M implemented
EXPECTED BENEFITS CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CalRecycle) 169,796 e reductions Cumulative Funding MTCO2 GHG How much funding has the program received? 211,400 $85.6 million allocated. pounds reductions NOX How much has gone to implemented projects? 220,306 $60.7 million implemented. pounds waste digestion How much has been assigned for future projects? 3,320 No additional funds have been selected or awarded. pounds PM2.5 reductions Program Description FUNDING DISTRIBUTION What type of projects are funded? The construction, renovation, or expansion of facilities to preprocess, digest, or compost organics into compost, soil $23.6 M amendments, biofuels, or bioenergy. to benefit priority populations How to access funds? Competitive application process.
Who receives funds? 29% Local governments, nonprofit organizations, for-profit entities, state and federal agencies, public universities and colleges, solid waste facilities, public school districts, and qualifying tribes. 64% 7% How do funds reach priority populations? Outreach to disadvantaged communities and projects benefiting disadvantaged communities (notably those that have a food waste prevention or reduction component) receive additional points during application scoring. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
California Climate Investments · 2019 Annual Report 97 2018 OUTCOMES
FUNDING Wildfire Response and Readiness $2.5 M implemented
EXPECTED BENEFITS CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES (Cal OES) 47 Cumulative Funding red flag event emergency services pre-deployments How much funding has the program received? $50.0 million appropriated. FUNDING DISTRIBUTION How much has gone to implemented projects? $2.5 million implemented. $0.0 M How much has been assigned for future projects? to benefit priority populations No additional funds have been selected or awarded. Program Description What type of projects are funded? Local assistance grants to fire departments within High Hazard Severity Zones to pre-position emergency services crews and equipment during red flag events in order to protect communities 100% from wildfires. How to access funds? Operational areas submit mobilization and resource order sheets to Cal OES for approval. Who receives funds? Local fire agencies, Cal OES State Fire and Rescue, operational isa vanta e ommunities area fire and rescue coordinators. lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
98 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
FUNDING Urban Greening Program $6.8 M implemented21
EXPECTED BENEFITS CALIFORNIA NATURAL RESOURCES AGENCY (CNRA) Cumulative Funding 2,100 MTCO e GHG reductions How much funding has the program received? 2 $126.0 million appropriated. 325 tree plantings How much has gone to implemented projects? $6.8 million implemented. FUNDING DISTRIBUTION How much has been assigned for future projects? $93.9 million selected and awarded but not yet implemented. $6.8 M Program Description to benefit priority populations What type of projects are funded? Establishment, enhancement, and expansion of community spaces and parks, tree planting, green infrastructure in streets and alleys, and the construction of active transportation infrastructure. How to access funds? Competitive application process. 100% Who receives funds? Local governments, special districts, nonprofit organizations, and joint powers authorities. How do funds reach priority populations? Projects benefiting disadvantaged communities receive higher application scores. isa vanta e ommunities lo in ome ommunities ouse ol s outsi e enefitin isa vanta e ommunities ot er areas of California
21 Projects that include tree planting are not considered implemented for reporting purposes until a sufficient number of trees have been planted in order to determine priority population benefits.
California Climate Investments · 2019 Annual Report 99 Urban Greening Program: Richmond, California’s “Greening the Yellow Brick Road” Project In 2009, in response to the high levels of violence and the dangers of the streets, youth from the Iron Triangle community in Richmond imagined a project that would create a safe, green, walkable route connecting community assets. Their original vision evolved into the Greening the Yellow Brick Road project. With $4.1 million from California Natural Resources Agency’s Urban Greening program, this project is helping bring the community’s vision to fruition and will benefit thousands of community residents. Rather than seeing empty cement streets and sidewalks outside their windows, people will be outside in a safe environment, breathing fresh air, and walking and biking to and from schools, shops, and transportation. They will be on the street under the shade of over 100 trees or sitting comfortably by a lush green bio-swale, meeting and mingling with their neighbors. This project will also produce jobs that pay a living wage for those who establish the plantings, giving them valuable work experience in an emerging green economy. The street, once dead, will come alive and transform into a symbol of activity, hope, and promise. “We’ve been waiting for a project like this for a long time,” says Doris Mason, President of the Iron Triangle Neighborhood Council. “It will benefit our community in so many ways. It will create a safe and green public space where neighbors can come together. It will create a designated route for residents to bike and walk in a safe environment. It will provide workforce development opportunities for local youth to get hands-on, real-life experience. But most of all, it will create a new DNA for our entire community — and for Richmond. We cannot wait for this project to happen.”
100 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
Climate Ready Program No projects were implemented in 2018.
CALIFORNIA STATE COASTAL CONSERVANCY (SCC) Cumulative Funding How much funding has the program received? $7.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? TBD Program Description What type of projects are funded? Projects safeguard coastal communities (reduce future risks from climate change), use nature-based solutions that provide co-benefits for people, wildlife, and the economy, reduce GHG emissions or enhance the ability of natural systems to sequester GHGs, and promote on-the-ground demonstration projects that implement innovative approaches or enhance understanding of effective coastal management strategies and will potentially lead to broader change to policies, regulations, or to duplicating the effort elsewhere. How to access funds? Competitive application process. Who receives funds? Nonprofit organizations, tribes and public agencies. How do funds reach priority populations? At least 35 percent of the total funds will support projects that are located in and provide benefits to disadvantaged or low-income communities.
California Climate Investments · 2019 Annual Report 101 2018 OUTCOMES
Climate Adaptation No projects were and Conservation Easements implemented in 2018.
CALIFORNIA WILDLIFE CONSERVATION BOARD (WCB) Cumulative Funding How much funding has the program received? $20.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? TBD Program Description What type of projects are funded? Perpetual conservation easements over natural and working lands and long-term conservation agreements that provide climate adaptation and resilience benefits for at least 50 years. Projects develop and implement natural and working lands adaptation and resiliency planning that prioritizes the conservation and management of natural and working lands, provides technical assistance for natural and working land managers, and supports efforts that improve rural-urban coordination on climate change adaptation. How to access funds? Competitive application process. Who receives funds? Local governments, park and open space districts, resource conservation districts, private landowners, and nonprofit organizations. How do funds reach priority populations? Projects benefiting priority populations receive enhanced application scoring.
102 California Climate Investments · 2019 Annual Report 2018 OUTCOMES
Coastal Resilience Planning No projects were implemented in 2018.
SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION (BCDC) Cumulative Funding How much funding has the program received? $1.0 million appropriated. How much has gone to implemented projects? TBD How much has been assigned for future projects? $0.1 million selected and awarded but not yet implemented. Program Description What type of projects are funded? BCDC funds staff to work with project proponents to make Bay shoreline projects more resilient and to work towards regional resilience through vulnerability assessments and adaptation planning. How to access funds? Legislative appropriation. Who receives funds? BCDC. How do funds reach priority populations? Benefits will reach priority populations through vulnerability assessments and adaptation planning involving at risk communities and amendment of BCDC’s policies to address environmental justice and social equity.
California Climate Investments · 2019 Annual Report 103
APPENDIX A
Cumulative California Climate Investments Leveraged Funds ($M) Leveraged Ratio (Funds from Total Funds from Agency Program Subprogram Total GGRF Additional Sources / GGRF Project Additional Implemented Implemented) Cost22 Sources Community Air Community Air Grants 8.5 10.4 1.9 0.2 Protection Program Community Air Protection 113. 4 180.0 66.6 0.6 Advanced Technology Freight 79.2 127. 5 48.3 0.6 Demonstration Projects Agricultural Worker Vanpools 6.0 6.0 -- -- in San Joaquin Valley Clean Mobility Options for 9.6 15.9 6.4 0.7 Disadvantaged Communities California Air Clean Vehicle Rebate Project 484.0 2,964.6 2,480.5 5.1 Resources Board Enhanced Fleet Modernization Low Carbon 21.2 TBD23 TBD TBD Transportation Program Program Plus-Up Financing Assistance Incentives Pilot 1.6 TBD23 TBD TBD Funding Agricultural Replacement 13.2 24.1 10.9 0.8 Measures for Emission Reductions Hybrid and Zero-Emission Truck 227. 4 TBD23 TBD TBD and Bus Voucher Incentive Project Rural School Bus Pilot Project 9.4 9.4 0.0 0.0 Zero-Emission Truck and Bus Pilot 82.8 143.9 61.1 0.7
105 California Climate Investments · 2019 Annual Report 106 California Climate Investments · 2019 Annual Report
($M) Leveraged Ratio (Funds from Total Funds from Agency Program Subprogram Total GGRF Additional Sources / GGRF Project Additional Implemented Implemented) Cost22 Sources California Department Active Transportation Program 10.0 16.3 6.3 0.6 of Transportation Low Carbon Transit Operations Program 250.7 3,275.9 3,025.3 12.1 California High-Speed High Speed Rail Project 626.0 64,000.0 TBD TBD Rail Authority California State Transit and Intercity Rail Capital Program 338.9 3,341.9 3,003.0 8.9 Transportation Agency Affordable Housing and Sustainable Communities 314.5 1, 597. 5 1,283.1 4.1 Climate Change Research Program 6.9 6.9 -- -- Strategic Growth Council Sustainable Agricultural Lands Conservation 19.4 31.6 12.3 0.6 Technical Assistance Program 0.9 0.9 -- -- California Air Resources Woodsmoke Reduction 1.3 1.6 0.3 0.2 Board Multi-Family Energy Efficiency 20.7 34.3 13.6 0.7 California Department Low-Income and Renewables of Community Services Weatherization Single-Family Energy Efficiency and Development Program 99.1 136.1 37.0 0.4 and Solar PV; Single-Family Solar PV California Department Alternative and Renewable Fuels Program 3.0 3.0 -- -- of Food and Agriculture State Water Efficiency and Enhancement Program 61.5 101.5 40.0 0.6 California Department Water-Energy State Water Project: Turbines 20.0 43.1 23.1 1.2 of Water Resources Efficiency Water-Energy Grant Program 32.3 37.0 4.7 0.1 California Training and Workforce Development Program 6.1 6.1 -- -- Conservation Corps California Department Wetlands and Watershed Restoration Program 21.3 36.4 15.1 0.7 of Fish and Wildlife Alternative Manure Management Program 29.7 34.5 4.9 0.2 California Department Climate Smart Dairy Digester Research 112. 6 314.3 201.7 1.8 of Food and Agriculture Agriculture and Development Program Healthy Soils 5.7 11. 3 5.6 1.0 ($M) Leveraged Ratio (Funds from Total Funds from Agency Program Subprogram Total GGRF Additional Sources / GGRF Project Additional Implemented Implemented) Cost22 Sources California Department Fire Prevention Program 75.5 75.5 -- -- of Forestry and Fire Forest Health Program 110.1 167. 2 57.1 0.5 Protection Urban and Community Forestry Program 38.3 56.4 18.1 0.5 California Governor's Office of Emergency Wildfire Response and Readiness 2.5 2.5 -- -- Services Food Waste Prevention and Rescue Grants 9.4 20.4 11.0 1.2 California Department Organics and Recycling Loans 2.6 14.0 11. 4 4.4 Waste Diversion of Resources Recycling Program Organics Grants 60.7 323.5 262.7 4.3 and Recovery Recycled Fiber, Plastic, and Glass 14.0 104.3 90.3 6.4 Grant Program California Natural Urban Greening 6.8 10.4 3.5 0.5 Resources Agency TOTALS24 2,730.6 13,285.9 10,805.6 4.0
22 Agencies may not report all funds from additional sources. 23 Total project cost may not be known at the time of implementation. 24 Totals exclude funds from the High-Speed Rail project.
107 California Climate Investments · 2019 Annual Report APPENDIX B
2018 Statistics on Competitive Project Proposals Received
Response To Solicitation Percent of Agency Program Category Type of Award Recipient(s) Proposals Received Proposals Selected Selected Funds # Requested # Selected Requested
Agricultural Worker Vanpools Awarded to an Intermediary 1 $6,000,000 1 $6,000,000 100% in San Joaquin Valley
Community Air Grants Awarded Directly to Recipient 65 $18,861,318 28 $9,944,528 190%
Off-Road Advanced California Air Resources Board Technology Demonstration Awarded Directly to Recipient 15 $59,874,884 6 $19,142,080 313% Project
On-Road Advanced Technology Demonstration Awarded to an Intermediary 5 $29,513,758 2 $12,076,078 244% Project Zero-and Near Zero-Emission Awarded Directly to Recipient 13 $219,000,000 11 $205,000,000 107% Freight Facilities Project
California State Transit and Intercity Rail Awarded Directly to Recipient 47 $6,664,698,369 28 $1,917,705,000 348% Transportation Agency Capital Program Response To Solicitation Percent of Agency Program Category Type of Award Recipient(s) Proposals Received Proposals Selected Selected Funds # Requested # Selected Requested Affordable Housing and Awarded Directly to Recipient 54 $685,267,639 19 $257, 497,0 0 0 266% Sustainable Communities
Awarded Directly to Recipient 69 $87,200,000 10 $10,500,000 830% Climate Change Research Program Strategic Growth Council Awarded Directly to Recipient 24 $103,400,000 4 $17,100,000 605%
Sustainable Agricultural Awarded Directly to Recipient 26 $64,602,920 17 $47,996,195 135% Lands Conservation Transformative Awarded Directly to Recipient 7 $280,000,000 3 $140,000,000 200% Climate Communities
Community Solar Awarded Directly to Recipient 7 $16,875,768 2 $4,432,060 381% California Department of Community Services and Development Farmworker Housing Awarded Directly to Recipient 2 $400,000 1 $200,000 200%
California Department State Water Efficiency Awarded Directly to Recipient 237 $20,031,343 27 $1,842,482 1087% of Food and Agriculture and Enhancement Program
Food Production California Energy Commission Awarded Directly to Recipient 25 $53,798,494 13 $26,859,578 200% Investment Program
California Coastal Commission Coastal Resilience Planning Awarded Directly to Recipient 7 $1,126,000 5 $750,000 150%
California Department Wetlands and Awarded Directly to Recipient 5 $5,078,049 3 $4,226,557 120% of Fish and Wildlife Watershed Restoration
109 California Climate Investments · 2019 Annual Report 110 California Climate Investments · 2019 Annual Report
Response To Solicitation Percent of Agency Program Category Type of Award Recipient(s) Proposals Received Proposals Selected Selected Funds # Requested # Selected Requested
Awarded Directly to Recipient 63 $34,458,849 40 $21,638,430 159% Alternative Manure Management Program Awarded Directly to Recipient 53 $29,534,167 18 $9,936,935 297% California Department of Food and Agriculture Dairy Digester Research Awarded Directly to Recipient 74 $143,079,566 42 $72,409,276 198% and Development Program
Healthy Soils Awarded Directly to Recipient 54 $2,110,0 6 4 39 $1, 4 47, 673 146%
Fire Prevention Grant Program Awarded Directly to Recipient 217 $150,236,410 142 $79,612,063 189%
California Department Forest Health Awarded Directly to Recipient 72 $333,659,903 23 $91,500,000 365% of Forestry and Fire Protection
Urban and Community Forestry Awarded Directly to Recipient 65 $44,524,866 23 $17, 70 0, 624 252%
Food Waste Prevention Awarded Directly to Recipient 31 $9,556,326 20 $5,000,000 191% and Rescue Grants California Department of Organics Grants Awarded Directly to Recipient 12 $34,409,601 10 $25,109,441 137% Resources Recycling and Recovery Recycled Fiber, Plastic, Awarded Directly to Recipient 13 $30,596,169 3 $9,000,000 340% and Glass Grant Program California Natural Urban Greening Program Awarded Directly to Recipient 84 $180,425,374 20 $24,700,000 730% Resources Agency TOTAL 1,347 $9,308,319,837 560 $3,039,326,000 306% APPENDIX C
Cumulative Budgetary Expenditures
($M) Cumulative Cumulative Agency Program Local Program Appropriations25 State Ops Capital Outlay Budgetary Assistance Administration Expenditures Costs Low Carbon Transportation; Funding Agricultural Replacement Measures for California Air Emission Reductions; Community Air Protection; $2,491.6 $73.4 $1,560.5 $0.0 $1,633.9 $27. 2 Resources Board Woodsmoke Reduction; Prescribed Fire Smoke Monitoring
California Department Low Carbon Transit Operations; $388.7 $0.0 $230.3 $0.0 $230.3 $0.0 of Transportation Active Transportation
California High-Speed High Speed Rail Project $2,023.0 $0.0 $0.0 $626.0 $626.0 $0.0 Rail Authority
California State Transit and Intercity Rail Capital $869.1 $2.6 $649.8 $0.0 $652.4 $2.6 Transportation Agency
Affordable Housing and Sustainable Communities; Transformative Climate Strategic Growth Communities; Technical Assistance; $1,778.1 $35.5 $504.3 $0.0 $539.8 $35.2 Council* Sustainable Agricultural Lands Conservation; Climate Change Research
111 California Climate Investments · 2019 Annual Report 112 California Climate Investments · 2019 Annual Report
($M) Cumulative Cumulative Agency Program Local Program Appropriations25 State Ops Capital Outlay Budgetary Assistance Administration Expenditures Costs
California Department of Community Services Low-Income Weatherization $201.8 $10.0 $171.3 $0.0 $181.3 $10.0 and Development*
California Department State Water Project Turbines; Water-Energy $69.8 $2.1 $45.3 $20.0 $67. 4 $2.1 of Water Resources Grant
California Energy Food Protection Investment; Renewable Energy $146.5 $0.1 $0.2 $0.0 $0.3 $0.1 Commission* for Agriculture; Low-Carbon Fuel Production
California Coastal Local Coastal Program $3.0 $0.4 $0.0 $0.0 $0.4 $0.0 Commission*
California Training and Workforce Development $24.1 $6.6 $0.0 $0.0 $6.6 $0.7 Conservation Corps*
California Department Wetlands and Watershed Restoration $ 47.1 $4.8 $21.3 $0.0 $26.1 $4.8 of Fish and Wildlife*
California Department State Water Efficiency and Enhancement; of Food and Alternative Renewable Fuels; Dairy Methane; $341.8 $75.4 $124.1 $0.0 $199.5 $12.1 Agriculture* Healthy Soils
California Department Sustainable Forests; Prescribed Fire Program; of Forestry and $586.9 $253.1 $24.2 $0.0 $27 7. 3 $2.6 Fire Prevention Fire Protection
Food Waste Prevention and Rescue Grants; California Department Organics and Recycling Manufacturing Loans; of Resources Recycling $136.6 $12.0 $56.0 $0.0 $68.0 $2.0 Organics Grants; Recycling Manufacturing and Recovery* Grants ($M) Cumulative Cumulative Agency Program Local Program Appropriations25 State Ops Capital Outlay Budgetary Assistance Administration Expenditures Costs California Governor’s Office of Emergency Wildfire Response and Readiness $50.0 $0.0 $0.0 $0.0 $0.0 $0.0 Services
California Natural Urban Greening; Regional Forest and Fire $146.0 $0.5 $76.7 $0.0 $7 7.1 $0.5 Resources Agency* Capacity
California State Climate Ready $7.0 $0.2 $0.0 $0.0 $0.2 $0.2 Coastal Conservancy*
California Wildlife Climate Adaptation and Conservation $20.0 $0.0 $0.0 $0.0 $0.0 $0.0 Conservation Board* Easements
SF Bay Conservation and Development Coastal Resilience Planning $1.0 $0.2 $0.0 $0.0 $0.2 $0.0 Commission* Totals for Programs $9,332.1 $477.2 $3,463.9 $646.0 $4,586.7 $100.1 California Air Fund Administration and Management $54.7 $44.3 $0.0 $0.0 $44.3 $44.3 Resources Board Office of Environmental Identification of Disadvantaged Communities $3.7 $3.3 $0.0 $0.0 $3.3 $3.3 Health and Hazard Assessment* Sum of Control Agencies Controller’s Fees and Adjustments $18.5 $13.9 $0.0 $0.0 $13.9 $13.9 (Finance, FI$Cal, Controller) California Workforce Workforce Development Board $0.4 $0.4 $0.0 $0.0 $0.4 $0.0 Development Board* Totals for Programs $9,395.5 $538.6 $3,463.9 $646.0 $4,648.5 $161.5 Including Administration and Support
25 Certain administering agencies have provisional language allowing for transfer of appropriated funds to other State agencies to implement California Climate Investments programs. * Denotes agencies which had difficulties closing in FI$Cal and as such provided estimated budgetary expenditures.
113 California Climate Investments · 2019 Annual Report California Climate Investments 1001 I Street P.O. Box 2815 Sacramento, CA 95812 (916) 322-2990 caclimateinvestments.ca.gov