Report 2020-114 Recommendation 9 Responses

Report 2020-114: California Air Resources Board: Improved Program Measurement Would Help California Work More Strategically to Meet Its Climate Change Goals (Release Date: February 2021)

Recommendation #9 To: Air Resources Board, State

To ensure that it communicates clearly to the Legislature about the extent to which programs benefit low-income households as the Legislature intended, by March 2022 CARB should begin reporting its spending in low-income communities at the household level wherever possible in its annual report to the Legislature.

1-Year Agency Response

As previously reported in the 60-day and 6-month responses, there are three projects where financial incentives are paid directly to individual households: the Clean Vehicle Rebate Project, Clean Cars 4 All, and Financing Assistance for Lower-Income Consumers. These are the projects for which CARB has determined it is possible to report low-income spending at the household level. CARB already collects household income information from participants in each of these projects, and CARB now reports low income benefits at the household level into the California Climate Investments Reporting and Tracking System (CCIRTS) for all three projects. CARB will also report this information for any additional, future projects that provide financial benefits directly to individual households.

To fully address CSA's recommendation, CARB reported the spending that benefits low-income households for each of these projects in the Fiscal Year (FY) 2021-22 Funding Plan for Clean Transportation Incentives, published on October 8, 2021 and approved by CARB's Board on November 19, 2021. For the most recent reporting period, the percent of funding that went to low-income households was 21 percent for CVRP, 98 percent for Clean Cars for All, and 91 percent for financing assistance as shown on pages 50, 64, and 68 of the Funding Plan, respectively (https://ww2.arb.ca.gov/sites/default/files/2021-10/fy21-22_fundingplan.pdf). CARB will continue to report this information each annual Funding Plan moving forward.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

As noted in the 60-day response, there are three projects where financial incentives are paid directly to individual households: the Clean Vehicle Rebate Project, Clean Cars 4 All, and financing assistance. These are the projects for which CARB has determined it is possible to report low-income spending at the household level. CARB already collects household income information from participants in each of these projects, and CARB now reports low income benefits at the household level into the California Climate Investments Reporting and Tracking System (CCIRTS) for all three projects.

To address CSA's recommendation, CARB will start reporting the spending that benefits low-income households (along with low-income communities and disadvantaged communities) for each of these projects in the Fiscal Year (FY) 2021-22 Clean Transportation Funding Plan and in each annual funding plan thereafter. CARB will also report low-income benefits at the household level in the future for any new projects where financial incentives are provided directly to California households.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

CARB has reviewed its suite of GHG incentive programs to determine where financial incentives are provided directly to California households, rather than to fleets, businesses, school districts, public agencies, or to communities. There are three projects where financial incentives are paid directly to individual households: the Clean Vehicle Rebate Project, Clean Cars 4 All, and financing assistance. These are the projects for which CARB has determined it is possible to report low-income spending at the household level. CARB already collects household income information from participants in each of these projects, and CARB now reports low income benefits at the household level into the California Climate Investments Reporting and Tracking System (CCIRTS) for all three projects.

CSA correctly noted to CARB that data reported into CCIRTS is not necessarily reported publicly with the same granularity. In the case of low-income benefits, the California Climate Investments annual report shows the combined spending that benefits low-income communities and low-income households. It does not report each separately. To address CSA's recommendation, CARB will start reporting the spending that benefits low-income households (along with low-income communities and disadvantaged communities) for each of these projects in the FY 2021-22 Clean Transportation Funding Plan and in each annual funding plan thereafter. CARB will also report low-income benefits at the household level in the future for any new projects where financial incentives are provided directly to California households.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2020-114

Agency responses received are posted verbatim.