BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1493
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1493 (Pavley)
          As Amended June 28, 2002
          Majority vote
           
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          |ASSEMBLY:  |     |(June 6, 2002)  |SENATE: |23-16|(June 29,      |
          |           |     |                |        |     |2002)          |
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                    (vote not relevant)

          Original Committee Reference:    RULES  
           
          SUMMARY  :  Requires the Air Resources Board (ARB) to adopt  
          regulations to reduce the emissions of greenhouse gases by motor  
          vehicles.  Specifically,  this bill  :

          1)Makes legislative findings and declarations regarding global  
            warming, greenhouse gas emissions, and the contribution of the  
            transportation sector in contributing to these emissions in  
            California.

          2)Requires the California Climate Action Registry (CCAR) to  
            consult with ARB in order to adopt procedures and protocols  
            for the reporting of reductions in greenhouse gases.

          3)Restricts public access to CCAR records that are exempt from  
            disclosure pursuant to the Public Records Act. 

          4)Requires ARB to develop and adopt, no later than January 1,  
            2005, regulations that achieve the maximum feasible and  
            cost-effective reduction of greenhouse gases emitted by motor  
            vehicles.

          5)Prohibits ARB regulations from going into effect before  
            January 1, 2006, and provides that they may apply only to  
            model-year 2009 or later motor vehicles.

          6)Requires ARB, within 10 days of adopting the regulations, to  
            transmit them to the appropriate policy and fiscal committees  
            of the Legislature for review.

          7)Requires the Legislature to hold at least one public hearing  
            to review the regulations, and allows the adoption of  
            legislation to modify them.








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          8)Requires ARB, in developing the regulations, to: 

          a)Consider their technological feasibility and economic impact;

          b)Conduct workshops in areas of the state with significant  
            exposure to air contaminants or with minority or low-income  
            populations, or both;

          c)Grant emission reduction credits for previous reductions in  
            greenhouse gas emissions from motor vehicles; and,

          d)Coordinate with the Energy Commission, CCAR, and the  
            interagency task force.

          1)Requires the regulations to provide flexibility in the means  
            by which compliance may be achieved.  Alternative methods of  
            compliance must achieve equivalent or greater reductions in  
            emissions but may not impose any mandatory trip reduction  
            measures or land use restrictions.

          2)Prohibits the regulations from including additional fees and  
            taxes on motor vehicles, fuels, or vehicle miles traveled,  
            bans on any specific vehicle category, reductions in vehicle  
            weights, speed limit reductions or limitations, or  
            vehicle-miles-traveled restrictions or limitations.

          3)Requires the regulations to provide an exemption for  
            low-emission vehicles meeting optional standards for oxides of  
            nitrogen (NOx).

          4)Requires CCAR, by July 1, 2003, to adopt procedures for  
            reporting mobile source greenhouse gas emission reductions.

          5)Requires ARB to report to the Legislature and Governor by  
            January 1, 2005, on the content of the regulations.

          6)Allows ARB to elect not to adopt a standard for any greenhouse  
            gas included in an equally or more effective standard adopted  
            in substantially the same timeframe by the federal government.

           The Senate amendments  delete, entirely, the prior provisions of  
          this bill, replacing them with the current language.  
           
           EXISTING LAW  assigns various duties to ARB in regard to setting  








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          and enforcing clean air goals and standards.

           AS PASSED BY THE ASSEMBLY  , this bill was a spot bill dealing  
          with the Bureau of State Audits.

           FISCAL EFFECT  :  ARB staff estimates their costs to be $100,000  
          in fiscal year (FY) 2002-03 for start-up activities and an  
          additional $100,000 per year through FY 2004-05 to develop  
          regulations and implement this bill.  California Energy  
          Commission (CEC) staff indicates there are no costs to CEC to  
          adopt procedures and protocols for the reporting and  
          certification of reductions in greenhouse gas emissions from  
          mobile sources as these duties are consistent with CEC's mandate  
          as set out in SB 1771 (Sher), Chapter 1018, Statutes of 2000.   
          ARB staff indicates they intend to fold the emission reduction  
          regulations into the next round of passenger vehicle emission  
          regulations that are expected to come before their governing  
          board in FY 2004-05.  Public hearings, workshops, consultations  
          with auto manufacturers and other stakeholders would be expanded  
          to include greenhouse gases along with other emission reduction  
          strategies. 

           COMMENTS  :  This bill is essentially a reintroduction, with some  
          modifications, of AB 1058 (Pavley), which is currently pending  
          concurrence in Senate amendments.

          This bill's sponsor, Bluewater Network, references a report from  
          the United Nations Intergovernmental Panel of Climate Change  
          predicting an increase of up to 10.4 degrees in the Earth's  
          temperature over the next century and indicating that the past  
          decade was the warmest on record in the last 140 years.  The  
          sponsor further notes that California is home to 0.5% of the  
          world's population, yet emits nearly 7% of global CO2 emissions.  
           This bill is intended to remove the ambiguity in the Clean Air  
          Act, which, according to the sponsor, is unclear on, whether ARB  
          has the authority to regulate CO2 emissions. 

          While the scientific community appears largely to accept that  
          CO2 emissions are associated with increasing temperatures,  
          global warming theories continue to be the subject of some  
          debate.  Nevertheless, it seems clear that warming of the  
          magnitude quoted from the United Nations report would be  
          severely disruptive to water supplies, agriculture, human  
          health, coastlines, and entire island nations.  And, according  
          to most sources, automotive emissions are a major contributor to  








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          CO2 levels in the atmosphere.

          Under former President Clinton, the United States (U.S.) was a  
          signatory to the 1997 "Kyoto Protocol to the United Nations  
          Framework Convention on Climate Change."  This treaty would  
          commit the United States to a target of reducing greenhouse  
          gases by 7% below 1990 levels during a "commitment period"  
          between 2008-2012.  The U.S. Senate, however, has not approved  
          the treaty.  The Bush administration, while acknowledging the  
          likelihood of global warming, is not supportive of the treaty  
          either.  In the absence of federal action on CO2 emissions, this  
          bill would put California in the forefront of efforts to address  
          global warming issues. 

          Opponents contend that federal Corporate Average Fuel Economy  
          (CAFE) law and the Clean Air Act prohibit state action on CO2  
          regulation.  This contention is based on the theory that CO2  
          regulation is equivalent to fuel economy regulation, preempted  
          by CAFE, and that CO2 does not create localized pollution  
          problems, making it ineligible for state regulation.   
          (Proponents counter that CO2 regulation need not entail fuel  
          economy standards and that other states have successfully  
          enacted CO2 standards.)  Opponents also point out that modern  
          vehicles emit 97% less pollution than their 1970 counterparts  
          and that new vehicle pollution will be reduced an additional 75%  
          over the next seven years.  They would prefer that consumers be  
          encouraged to embrace advanced, and more fuel-efficient,  
          technologies through incentives rather than what they  
          characterize as "command-and-control" methods such as this bill.  


          This bill's predecessor, AB 1058, attracted a great deal of  
          public attention.  Much of this attention centered around  
          possible measures, real or imagined, that ARB might take through  
          their regulations in order to reduce greenhouse gas emissions.   
          In response to these concerns, this bill lays out a fairly  
          extensive list of actions ARB would be prohibited from enacting  
          through its regulations.  The prohibited actions would include:  
          motor vehicle tax surcharges, increased fuel taxes, vehicle  
          miles traveled limits or fees, sport utility vehicle or minivan  
          bans, vehicle weight reductions, or speed limit reductions.   
          Nevertheless, it is fairly certain that the opponents of AB 1058  
          will continue to oppose this bill for the reasons cited above.










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           Analysis Prepared by  :    Howard Posner / TRANS. / (916) 319-2093  

           
           

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