CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2419Introduced by Assembly Member Bryan(Coauthor: Assembly Member Stone)(Coauthor: Senator Stern)February 17, 2022 An act to add and repeal Part 3.2 (commencing with Section 71119) of Division 34 of the Public Resources Code, relating to environmental justice. LEGISLATIVE COUNSEL'S DIGESTAB 2419, as introduced, Bryan. Environmental justice: federal Infrastructure Investment and Jobs Act: Justice40 Oversight Committee.Existing law requires the Secretary for Environmental Protection to convene a Working Group on Environmental Justice composed of various representatives, as specified, to assist the California Environmental Protection Agency in developing an agencywide environmental justice strategy.The federal Infrastructure Investment and Jobs Act provides additional federal funds to rebuild the nations infrastructures.This bill would require a minium of 40% of funds received by the state under the federal act to be allocated to projects that provide direct benefits to disadvantaged communities and a minimum of an additional 10% be allocated for projects that provide direct benefits to low-income households and low-income communities. The bill would establish the Justice40 Oversight Committee in the Office of Planning and Research to perform various actions related to the expenditure of those federal funds. The bill would require the committee, by December 31, 2024, to provide an interim report, and by December 31, 2027, to provide a final report, to various entities, including the Legislature, on various subjects related to the expenditure of the federal funds. The bill would be repealed by its own terms on a specified date.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) On January 27, 2021, President Biden signed Executive Order 14008, which established the federal Justice40 Initiative with the goal of delivering 40 percent of the overall benefits of relevant federal investments to disadvantaged communities.(b) On May 28, 2021, the White House Environmental Justice Advisory Committee submitted its final recommendations on the federal Justice40 Initiative to President Biden. This included the request that there must be a transformative and accountable process developed for the fair and just distribution of 40% or more of the benefits to be invested in frontline communities. Otherwise, the investment will not reach frontline communities, given the bias and ambivalence of many state and local governments, and the systemic racial bias, inertia, and resistance to change that we must never underestimate. (c) On November 15, 2021, President Biden signed into law the federal Infrastructure Investment and Jobs Act (Public Law 117-58), hereinafter IIJA.(d) On the same day, President Biden also signed Executive Order 14052, which was published on November 18, 2021, stating that implementation of the IIJA should prioritize investing public dollars equitably, including through the [federal] Justice40 Initiative, which is a Government-wide effort toward a goal that 40 percent of overall benefits from Federal investments in climate change and clean energy flow to disadvantaged communities.(e) Throughout the history of the United States, racist infrastructure policies and investments have cemented inequities in housing, education, economic opportunity, health, and environmental pollution. These inequities lock millions of Americans out of prosperity and opportunity, nowhere more so than in low-income communities of color.(f) California has its own legacy of creating, upholding, or exacerbating inequities through infrastructure investments. Californias highway system was often built in ways that broke up Black, Indigenous, and people of color communities, forcing the destruction of homes and displacing residents.(g) Equity should be a primary consideration in determining how to spend billions of dollars in infrastructure investments to deliver jobs and other benefits where they are needed most.(h) This is a historic moment to seize the opportunities provided by the IIJA and the federal Justice40 Initiative to reverse inequities and build a new vision of infrastructure as the foundation for an inclusive society.(i) States must play a crucial role in achieving the goals of the federal Justice40 Initiative by ensuring that these investments target and benefit disadvantaged communities, especially those harmed by the long history of inequitable and racist policies.(j) On September 1, 2021, Governor Newsom joined a group of 10 governors to submit a letter to Congressional leaders requesting that any infrastructure package ensure 40 percent of the benefits of climate and clean infrastructure investments are directed to disadvantaged communities and invests in rural communities and communities impacted by the market-based transition to clean energy.(k) Californias disadvantaged communities need significant improvements in the areas of public transit, broadband access, water systems, and climate resilience throughout the state.(l) Committing to the federal Justice40 Initiative could help provide, among other things, better and less polluting public transit, reliable and affordable high-speed internet access, and clean drinking water to those communities.(m) California is committed to being a leader in the push for a cleaner and more just future.SEC. 2. Part 3.2 (commencing with Section 71119) is added to Division 34 of the Public Resources Code, to read:PART 3.2. California Justice40 Act71119. This part shall be known, and may be cited, as the California Justice40 Act.71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2419Introduced by Assembly Member Bryan(Coauthor: Assembly Member Stone)(Coauthor: Senator Stern)February 17, 2022 An act to add and repeal Part 3.2 (commencing with Section 71119) of Division 34 of the Public Resources Code, relating to environmental justice. LEGISLATIVE COUNSEL'S DIGESTAB 2419, as introduced, Bryan. Environmental justice: federal Infrastructure Investment and Jobs Act: Justice40 Oversight Committee.Existing law requires the Secretary for Environmental Protection to convene a Working Group on Environmental Justice composed of various representatives, as specified, to assist the California Environmental Protection Agency in developing an agencywide environmental justice strategy.The federal Infrastructure Investment and Jobs Act provides additional federal funds to rebuild the nations infrastructures.This bill would require a minium of 40% of funds received by the state under the federal act to be allocated to projects that provide direct benefits to disadvantaged communities and a minimum of an additional 10% be allocated for projects that provide direct benefits to low-income households and low-income communities. The bill would establish the Justice40 Oversight Committee in the Office of Planning and Research to perform various actions related to the expenditure of those federal funds. The bill would require the committee, by December 31, 2024, to provide an interim report, and by December 31, 2027, to provide a final report, to various entities, including the Legislature, on various subjects related to the expenditure of the federal funds. The bill would be repealed by its own terms on a specified date.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2419 Introduced by Assembly Member Bryan(Coauthor: Assembly Member Stone)(Coauthor: Senator Stern)February 17, 2022 Introduced by Assembly Member Bryan(Coauthor: Assembly Member Stone)(Coauthor: Senator Stern) February 17, 2022 An act to add and repeal Part 3.2 (commencing with Section 71119) of Division 34 of the Public Resources Code, relating to environmental justice. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 2419, as introduced, Bryan. Environmental justice: federal Infrastructure Investment and Jobs Act: Justice40 Oversight Committee. Existing law requires the Secretary for Environmental Protection to convene a Working Group on Environmental Justice composed of various representatives, as specified, to assist the California Environmental Protection Agency in developing an agencywide environmental justice strategy.The federal Infrastructure Investment and Jobs Act provides additional federal funds to rebuild the nations infrastructures.This bill would require a minium of 40% of funds received by the state under the federal act to be allocated to projects that provide direct benefits to disadvantaged communities and a minimum of an additional 10% be allocated for projects that provide direct benefits to low-income households and low-income communities. The bill would establish the Justice40 Oversight Committee in the Office of Planning and Research to perform various actions related to the expenditure of those federal funds. The bill would require the committee, by December 31, 2024, to provide an interim report, and by December 31, 2027, to provide a final report, to various entities, including the Legislature, on various subjects related to the expenditure of the federal funds. The bill would be repealed by its own terms on a specified date. Existing law requires the Secretary for Environmental Protection to convene a Working Group on Environmental Justice composed of various representatives, as specified, to assist the California Environmental Protection Agency in developing an agencywide environmental justice strategy. The federal Infrastructure Investment and Jobs Act provides additional federal funds to rebuild the nations infrastructures. This bill would require a minium of 40% of funds received by the state under the federal act to be allocated to projects that provide direct benefits to disadvantaged communities and a minimum of an additional 10% be allocated for projects that provide direct benefits to low-income households and low-income communities. The bill would establish the Justice40 Oversight Committee in the Office of Planning and Research to perform various actions related to the expenditure of those federal funds. The bill would require the committee, by December 31, 2024, to provide an interim report, and by December 31, 2027, to provide a final report, to various entities, including the Legislature, on various subjects related to the expenditure of the federal funds. The bill would be repealed by its own terms on a specified date. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) On January 27, 2021, President Biden signed Executive Order 14008, which established the federal Justice40 Initiative with the goal of delivering 40 percent of the overall benefits of relevant federal investments to disadvantaged communities.(b) On May 28, 2021, the White House Environmental Justice Advisory Committee submitted its final recommendations on the federal Justice40 Initiative to President Biden. This included the request that there must be a transformative and accountable process developed for the fair and just distribution of 40% or more of the benefits to be invested in frontline communities. Otherwise, the investment will not reach frontline communities, given the bias and ambivalence of many state and local governments, and the systemic racial bias, inertia, and resistance to change that we must never underestimate. (c) On November 15, 2021, President Biden signed into law the federal Infrastructure Investment and Jobs Act (Public Law 117-58), hereinafter IIJA.(d) On the same day, President Biden also signed Executive Order 14052, which was published on November 18, 2021, stating that implementation of the IIJA should prioritize investing public dollars equitably, including through the [federal] Justice40 Initiative, which is a Government-wide effort toward a goal that 40 percent of overall benefits from Federal investments in climate change and clean energy flow to disadvantaged communities.(e) Throughout the history of the United States, racist infrastructure policies and investments have cemented inequities in housing, education, economic opportunity, health, and environmental pollution. These inequities lock millions of Americans out of prosperity and opportunity, nowhere more so than in low-income communities of color.(f) California has its own legacy of creating, upholding, or exacerbating inequities through infrastructure investments. Californias highway system was often built in ways that broke up Black, Indigenous, and people of color communities, forcing the destruction of homes and displacing residents.(g) Equity should be a primary consideration in determining how to spend billions of dollars in infrastructure investments to deliver jobs and other benefits where they are needed most.(h) This is a historic moment to seize the opportunities provided by the IIJA and the federal Justice40 Initiative to reverse inequities and build a new vision of infrastructure as the foundation for an inclusive society.(i) States must play a crucial role in achieving the goals of the federal Justice40 Initiative by ensuring that these investments target and benefit disadvantaged communities, especially those harmed by the long history of inequitable and racist policies.(j) On September 1, 2021, Governor Newsom joined a group of 10 governors to submit a letter to Congressional leaders requesting that any infrastructure package ensure 40 percent of the benefits of climate and clean infrastructure investments are directed to disadvantaged communities and invests in rural communities and communities impacted by the market-based transition to clean energy.(k) Californias disadvantaged communities need significant improvements in the areas of public transit, broadband access, water systems, and climate resilience throughout the state.(l) Committing to the federal Justice40 Initiative could help provide, among other things, better and less polluting public transit, reliable and affordable high-speed internet access, and clean drinking water to those communities.(m) California is committed to being a leader in the push for a cleaner and more just future.SEC. 2. Part 3.2 (commencing with Section 71119) is added to Division 34 of the Public Resources Code, to read:PART 3.2. California Justice40 Act71119. This part shall be known, and may be cited, as the California Justice40 Act.71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following:(a) On January 27, 2021, President Biden signed Executive Order 14008, which established the federal Justice40 Initiative with the goal of delivering 40 percent of the overall benefits of relevant federal investments to disadvantaged communities.(b) On May 28, 2021, the White House Environmental Justice Advisory Committee submitted its final recommendations on the federal Justice40 Initiative to President Biden. This included the request that there must be a transformative and accountable process developed for the fair and just distribution of 40% or more of the benefits to be invested in frontline communities. Otherwise, the investment will not reach frontline communities, given the bias and ambivalence of many state and local governments, and the systemic racial bias, inertia, and resistance to change that we must never underestimate. (c) On November 15, 2021, President Biden signed into law the federal Infrastructure Investment and Jobs Act (Public Law 117-58), hereinafter IIJA.(d) On the same day, President Biden also signed Executive Order 14052, which was published on November 18, 2021, stating that implementation of the IIJA should prioritize investing public dollars equitably, including through the [federal] Justice40 Initiative, which is a Government-wide effort toward a goal that 40 percent of overall benefits from Federal investments in climate change and clean energy flow to disadvantaged communities.(e) Throughout the history of the United States, racist infrastructure policies and investments have cemented inequities in housing, education, economic opportunity, health, and environmental pollution. These inequities lock millions of Americans out of prosperity and opportunity, nowhere more so than in low-income communities of color.(f) California has its own legacy of creating, upholding, or exacerbating inequities through infrastructure investments. Californias highway system was often built in ways that broke up Black, Indigenous, and people of color communities, forcing the destruction of homes and displacing residents.(g) Equity should be a primary consideration in determining how to spend billions of dollars in infrastructure investments to deliver jobs and other benefits where they are needed most.(h) This is a historic moment to seize the opportunities provided by the IIJA and the federal Justice40 Initiative to reverse inequities and build a new vision of infrastructure as the foundation for an inclusive society.(i) States must play a crucial role in achieving the goals of the federal Justice40 Initiative by ensuring that these investments target and benefit disadvantaged communities, especially those harmed by the long history of inequitable and racist policies.(j) On September 1, 2021, Governor Newsom joined a group of 10 governors to submit a letter to Congressional leaders requesting that any infrastructure package ensure 40 percent of the benefits of climate and clean infrastructure investments are directed to disadvantaged communities and invests in rural communities and communities impacted by the market-based transition to clean energy.(k) Californias disadvantaged communities need significant improvements in the areas of public transit, broadband access, water systems, and climate resilience throughout the state.(l) Committing to the federal Justice40 Initiative could help provide, among other things, better and less polluting public transit, reliable and affordable high-speed internet access, and clean drinking water to those communities.(m) California is committed to being a leader in the push for a cleaner and more just future. SECTION 1. The Legislature finds and declares all of the following:(a) On January 27, 2021, President Biden signed Executive Order 14008, which established the federal Justice40 Initiative with the goal of delivering 40 percent of the overall benefits of relevant federal investments to disadvantaged communities.(b) On May 28, 2021, the White House Environmental Justice Advisory Committee submitted its final recommendations on the federal Justice40 Initiative to President Biden. This included the request that there must be a transformative and accountable process developed for the fair and just distribution of 40% or more of the benefits to be invested in frontline communities. Otherwise, the investment will not reach frontline communities, given the bias and ambivalence of many state and local governments, and the systemic racial bias, inertia, and resistance to change that we must never underestimate. (c) On November 15, 2021, President Biden signed into law the federal Infrastructure Investment and Jobs Act (Public Law 117-58), hereinafter IIJA.(d) On the same day, President Biden also signed Executive Order 14052, which was published on November 18, 2021, stating that implementation of the IIJA should prioritize investing public dollars equitably, including through the [federal] Justice40 Initiative, which is a Government-wide effort toward a goal that 40 percent of overall benefits from Federal investments in climate change and clean energy flow to disadvantaged communities.(e) Throughout the history of the United States, racist infrastructure policies and investments have cemented inequities in housing, education, economic opportunity, health, and environmental pollution. These inequities lock millions of Americans out of prosperity and opportunity, nowhere more so than in low-income communities of color.(f) California has its own legacy of creating, upholding, or exacerbating inequities through infrastructure investments. Californias highway system was often built in ways that broke up Black, Indigenous, and people of color communities, forcing the destruction of homes and displacing residents.(g) Equity should be a primary consideration in determining how to spend billions of dollars in infrastructure investments to deliver jobs and other benefits where they are needed most.(h) This is a historic moment to seize the opportunities provided by the IIJA and the federal Justice40 Initiative to reverse inequities and build a new vision of infrastructure as the foundation for an inclusive society.(i) States must play a crucial role in achieving the goals of the federal Justice40 Initiative by ensuring that these investments target and benefit disadvantaged communities, especially those harmed by the long history of inequitable and racist policies.(j) On September 1, 2021, Governor Newsom joined a group of 10 governors to submit a letter to Congressional leaders requesting that any infrastructure package ensure 40 percent of the benefits of climate and clean infrastructure investments are directed to disadvantaged communities and invests in rural communities and communities impacted by the market-based transition to clean energy.(k) Californias disadvantaged communities need significant improvements in the areas of public transit, broadband access, water systems, and climate resilience throughout the state.(l) Committing to the federal Justice40 Initiative could help provide, among other things, better and less polluting public transit, reliable and affordable high-speed internet access, and clean drinking water to those communities.(m) California is committed to being a leader in the push for a cleaner and more just future. SECTION 1. The Legislature finds and declares all of the following: ### SECTION 1. (a) On January 27, 2021, President Biden signed Executive Order 14008, which established the federal Justice40 Initiative with the goal of delivering 40 percent of the overall benefits of relevant federal investments to disadvantaged communities. (b) On May 28, 2021, the White House Environmental Justice Advisory Committee submitted its final recommendations on the federal Justice40 Initiative to President Biden. This included the request that there must be a transformative and accountable process developed for the fair and just distribution of 40% or more of the benefits to be invested in frontline communities. Otherwise, the investment will not reach frontline communities, given the bias and ambivalence of many state and local governments, and the systemic racial bias, inertia, and resistance to change that we must never underestimate. (c) On November 15, 2021, President Biden signed into law the federal Infrastructure Investment and Jobs Act (Public Law 117-58), hereinafter IIJA. (d) On the same day, President Biden also signed Executive Order 14052, which was published on November 18, 2021, stating that implementation of the IIJA should prioritize investing public dollars equitably, including through the [federal] Justice40 Initiative, which is a Government-wide effort toward a goal that 40 percent of overall benefits from Federal investments in climate change and clean energy flow to disadvantaged communities. (e) Throughout the history of the United States, racist infrastructure policies and investments have cemented inequities in housing, education, economic opportunity, health, and environmental pollution. These inequities lock millions of Americans out of prosperity and opportunity, nowhere more so than in low-income communities of color. (f) California has its own legacy of creating, upholding, or exacerbating inequities through infrastructure investments. Californias highway system was often built in ways that broke up Black, Indigenous, and people of color communities, forcing the destruction of homes and displacing residents. (g) Equity should be a primary consideration in determining how to spend billions of dollars in infrastructure investments to deliver jobs and other benefits where they are needed most. (h) This is a historic moment to seize the opportunities provided by the IIJA and the federal Justice40 Initiative to reverse inequities and build a new vision of infrastructure as the foundation for an inclusive society. (i) States must play a crucial role in achieving the goals of the federal Justice40 Initiative by ensuring that these investments target and benefit disadvantaged communities, especially those harmed by the long history of inequitable and racist policies. (j) On September 1, 2021, Governor Newsom joined a group of 10 governors to submit a letter to Congressional leaders requesting that any infrastructure package ensure 40 percent of the benefits of climate and clean infrastructure investments are directed to disadvantaged communities and invests in rural communities and communities impacted by the market-based transition to clean energy. (k) Californias disadvantaged communities need significant improvements in the areas of public transit, broadband access, water systems, and climate resilience throughout the state. (l) Committing to the federal Justice40 Initiative could help provide, among other things, better and less polluting public transit, reliable and affordable high-speed internet access, and clean drinking water to those communities. (m) California is committed to being a leader in the push for a cleaner and more just future. SEC. 2. Part 3.2 (commencing with Section 71119) is added to Division 34 of the Public Resources Code, to read:PART 3.2. California Justice40 Act71119. This part shall be known, and may be cited, as the California Justice40 Act.71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. SEC. 2. Part 3.2 (commencing with Section 71119) is added to Division 34 of the Public Resources Code, to read: ### SEC. 2. PART 3.2. California Justice40 Act71119. This part shall be known, and may be cited, as the California Justice40 Act.71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. PART 3.2. California Justice40 Act71119. This part shall be known, and may be cited, as the California Justice40 Act.71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. PART 3.2. California Justice40 Act PART 3.2. California Justice40 Act 71119. This part shall be known, and may be cited, as the California Justice40 Act. 71119. This part shall be known, and may be cited, as the California Justice40 Act. 71119.1. (a) For purposes of this section, the following definitions apply:(1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g).(2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas:(A) Climate change.(B) Clean energy and energy efficiency.(C) Clean transportation.(D) Affordable and sustainable housing.(E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities.(F) Remediation and reduction of legacy pollution.(G) Critical clean water and waste infrastructure.(3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.(4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58).(5) Federal funds means moneys received by the state under the federal act.(6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources.(7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.(b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities.(2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state.(c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens.(d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements.(e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code.(f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households.(g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following:(1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state.(2) Recommend climate, clean energy, and infrastructure projects for federal funding.(3) Track the use of all federal funds and make the tracking information available to the public.(4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded.(h) (1) The committee shall consist of 13 members as follows:(A) (i) The Secretary for Environmental Protection or the secretarys designee.(ii) The Secretary of the Transportation Agency or the secretarys designee.(iii) The Secretary of the Natural Resources Agency or the secretarys designee.(iv) The Executive Director of the Strategic Growth Council or the executive directors designee.(B) Seven members appointed by the Governor as follows:(i) A representative of the Native American tribal community.(ii) A representative of a local or regional group that works on environmental issues affecting frontline communities.(iii) A representative of a local or regional group that works on transportation equity.(iv) A representative of an environmental justice organization.(v) A representative of a local or regional group that works on transportation equity.(vi) A representative of a public sector labor union or other labor organization.(vii) A representative from the State Building and Construction Trade Council of California.(C) Two members appointed as follows:(i) One public member appointed by the Speaker of the Assembly.(ii) One public member appointed by the Senate Committee on Rules.(2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee.(i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section.(j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects.(k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds.(2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1).(3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code.(4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website.(l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed. 71119.1. (a) For purposes of this section, the following definitions apply: (1) Committee means the Justice40 Oversight Committee established pursuant to subdivision (g). (2) Covered program means a federal government program, as outlined in the Interim Implementation Guidance for the Justice40 Initiative released by the Office of Management and Budget (M-21-28), that makes covered investment benefits in one or more of the following areas: (A) Climate change. (B) Clean energy and energy efficiency. (C) Clean transportation. (D) Affordable and sustainable housing. (E) Training and workforce development related to climate, natural disasters, environment, clean energy, clean transportation, housing, water and wastewater infrastructure, and legacy pollution reduction, including in energy communities. (F) Remediation and reduction of legacy pollution. (G) Critical clean water and waste infrastructure. (3) Disadvantaged community means a community identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code. (4) Federal act means the federal Infrastructure Investment and Jobs Act (Public Law 117-58). (5) Federal funds means moneys received by the state under the federal act. (6) Infrastructure means all sectors included in the federal act, including, but not limited to, transportation, water, energy, broadband, and resilience and rehabilitation of the nations natural resources. (7) Low-income communities are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code. (8) Low-income households are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Developments list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code. (b) (1) In allocating federal funds, a minimum of 40 percent of the federal funds shall be allocated to projects that provide direct benefits to disadvantaged communities. (2) In allocating federal funds, a minimum of an additional 10 percent of the federal funds shall be allocated to projects that provide direct benefits to low-income households or to projects that provide direct benefits to low-income communities located anywhere in the state. (c) All investments of federal funds shall avoid substantial burdens to disadvantaged and low-income communities and low-income households, including physical or economic displacement of low-income households and small businesses in those communities, increased local exposure to toxics or other health risks, or other substantial economic, environmental, or public health burdens. (d) All investments of federal funds shall maximize economic cobenefits by including labor and workforce standards, and give preference to projects that include wage standards, targeted hire provisions for disadvantaged and under-represented workers, project labor agreements, community workforce agreements, and community benefits agreements. (e) A public agency administering federal funds shall maximize benefits for disadvantaged communities, low-income households, and low-income communities in alignment with the framework established by the investment plan developed by the State Air Resources Board pursuant to Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the Health and Safety Code. (f) Administering agencies shall conduct, or participate in, outreach and engagement as well as requiring qualifying projects to demonstrate community support to improve funding accessibility and maximize participation by, and benefits to, disadvantaged and low-income communities and low-income households. (g) The Justice40 Oversight Committee is hereby established in the Office of Planning and Research to do all of the following: (1) Identify infrastructure deficiencies in disadvantaged and low-income communities throughout the state. (2) Recommend climate, clean energy, and infrastructure projects for federal funding. (3) Track the use of all federal funds and make the tracking information available to the public. (4) Develop Justice40 standards that require a public agency administering federal funds to consider a projects potential impact on goals, including, but not limited to, advancing environmental justice, reducing emissions of greenhouse gases, promoting climate adaptation and resilience, meaningfully consulting with, and incorporating inputs from, communities, promoting registered apprenticeship and preapprenticeship programs, and creating high-road jobs. State agencies administering federal funds shall report on and make available to the public, on an annual basis, activities and progress towards implementing the committees recommendations and stated program goals, and the use of federal fund for these projects including, the total amount disbursed, the receiving entity, and the project funded. (h) (1) The committee shall consist of 13 members as follows: (A) (i) The Secretary for Environmental Protection or the secretarys designee. (ii) The Secretary of the Transportation Agency or the secretarys designee. (iii) The Secretary of the Natural Resources Agency or the secretarys designee. (iv) The Executive Director of the Strategic Growth Council or the executive directors designee. (B) Seven members appointed by the Governor as follows: (i) A representative of the Native American tribal community. (ii) A representative of a local or regional group that works on environmental issues affecting frontline communities. (iii) A representative of a local or regional group that works on transportation equity. (iv) A representative of an environmental justice organization. (v) A representative of a local or regional group that works on transportation equity. (vi) A representative of a public sector labor union or other labor organization. (vii) A representative from the State Building and Construction Trade Council of California. (C) Two members appointed as follows: (i) One public member appointed by the Speaker of the Assembly. (ii) One public member appointed by the Senate Committee on Rules. (2) Members specified in subparagraph (B) or (C) shall serve on the committee without compensation, but they may be reimbursed for actual expenses incurred in connection with their duties as members of the committee. (i) The committee shall work with the California Environmental Protection Agency, the Transportation Agency, and other appropriate entities in implementing this section. (j) A public agency administering federal funds shall coordinate with the Strategic Growth Councils Community Assistance for Climate Equity Program to assist communities in applying for, and accessing, federal funds for infrastructure projects. (k) (1) By December 31, 2024, the committee shall submit an interim report to the Legislature, the federal Council on Environmental Quality, and the White House Environmental Justice Advisory Council that identifies infrastructure deficiencies in disadvantaged communities, recommends infrastructure projects, provides agency guidelines on additional Justice40 climate and labor standards, and reports on the expenditure of the federal funds. (2) By December 31, 2027, the committee shall submit a final report to the Legislature, the federal Council of Environmental Quality, and the White House Environmental Justice Advisory Council on the expenditure of the federal funds, and an evaluation of state agencies success in meeting Justice40 standards provided in the report submitted pursuant to paragraph (1). (3) The reports submitted to the Legislature pursuant to paragraphs (1) and (2) shall be submitted in accordance with Section 9795 of the Government Code. (4) The reports required pursuant to paragraphs (1) and (2) shall be made available to the public by posting on the Office of Planning and Researchs internet website. (l) This section shall remain in effect only until January 1, 2031, or January 1 of the year following the date of the submission of the report, whichever is earlier, and as of that date is repealed.