19E - FED & STATE LOBBYIST SUMMARY

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numerous different funding programs. The bond included per capita allocations to cities, competitive grants for park poor communities, funding for the Santa Ana River Conservancy program, and other funds which could be available to the City. The bill was ultimately held by the author and he has agreed to work with the Governor and legislative leadership to try and craft a park bond that can be placed on the ballot it 2018. SB 1298 (Hertzberg) — This bill proposed to make changes to the Proposition 218 Omnibus Implementation Act. Specifically, the bill would have made changes to the definition of "sewer' in such a way that would provide parity for stormwater and flood control programs in their ability to raise capital. Even though the bill was amended to remove controversial provisions, including the allowance of tiered rate structures and lifeline rates, it was unable to garner the necessary support to pass out of the Assembly. The bill was held on the Assembly Floor. Cap and Trade At the end of the legislative session, the Administration and Democratic leadership in the Legislature were finally able to reach agreement on a cap and trade spending plan. The main bill, SB 830, contained the proposed funding for cap and trade for the current fiscal year and an accompanying bill, SB 859, contained policy changes to some of the funding programs. While the overall spending plan, which appropriated $900 million in the current fiscal year, was not as large as some wanted, it does represent the first comprehensive spending plan of cap and trade dollars since late 2014. It should be noted that the last several cap and trade auctions have not brought in significant revenues, the last two auctions generated less than $10 million each, so the prospects of future funding plans are not clear at this point. Additionally, there are still pending lawsuits that are challenging the legality of the cap and trade auction programs. Below is a brief highlight of the items contained within the $900 million cap and trade expenditure plan: i $150 million for the Heavy Duty and Off -Road Investments to help develop and pilot cleaner industrial vehicles, buses, and port equipment with new low or zero emissions; i $140 million for the Transformative Climate Communities program to allow for a community -wide approach for disadvantaged communities specified in statute to implement an integrated transportation, housing, and green space development plan to reduce pollution and improve local quality of life; $135 million for the Transit and Intercity Rail Capital program, helping fund essential local capital projects to keep Californians moving by bus and commuter rail; $133 million for a reformed Clean Vehicle Rebate Project, which help low and middle income families purchase the newest, cleanest vehicles available; • $80 million for the Enhanced Vehicle Fleet Modernization program to provide low income families help in replacing their existing polluting vehicle with a newer, cleaner vehicle; f $80 million for the Urban Greening program, to create green spaces and parks in communities in California that lack green space; i $50 million for programs that help dairies reduce emissions and pollution associated with animal manure; • $40 million for waste diversion projects for organic material which fund projects that have a double environmental benefit of capture greenhouse gases while also reducing methane emissions; 2016 Year End Legislative Update February 13, 2017 19E-5 EXHIBIT 1