BILL ANALYSIS
AB 32
Page 1
Date of Hearing: April 6, 2005
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 32 (Pavley) - As Amended: March 31, 2005
Policy Committee: Natural Resources
Vote: 6-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Climate Action Registry (CAR),
a legislatively-established public benefit nonprofit corporation
administered jointly by the Resources Agency and the CalEPA, to
adopt procedures and protocols relating to greenhouse gas
emissions and to projects designed to reduce these emissions for
the following activities:
1)Oil and natural gas exploration, extraction, processing,
refining, transmission and distribution.
2)Cement production.
3)Municipal solid waste and industrial waste hauling and
disposal.
FISCAL EFFECT
Moderate costs, about $210,000 in FY 2005-06, to the CAR to
develop the specified procedures and protocols. These costs
will probably be equally covered by revenues generated by fees
paid to the CAR by companies in the affected industries who
voluntarily participate in the registry process and by grants
awarded by the California Energy Commission. (Energy Resources
Programs Account and the CAR registration account.)
COMMENTS
1)Rationale . The author believes the CAR should focus on
developing procedures and protocols to establish a greenhouse
gas inventory and to evaluate projects designed to reduce
AB 32
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those emissions resulting from activities in the oil and
natural gas industry, the cement production industry and the
hauling and disposal of municipal solid waste. In addition,
representatives of those industries are interested in
participating in the registry so that the industries' efforts
to reduce greenhouse emissions are reflected in the baseline
emissions that may someday be established by state, federal or
international requirements.
2)Background . The CAR was established by SB 1771 (Sher) -
Chapter 1018, Statutes of 2000. The registry's purpose is to
help companies and other entities with industrial operations
in California establish greenhouse gas emissions baselines
against which any future emission reduction requirements may
be applied. The CAR encourages voluntary industry actions to
increase energy efficiency and decrease greenhouse gas
emissions. In return, the State of California pledges to make
its best effort to ensure participants receive appropriate
credit for early actions. Registry participants include
businesses, nonprofit organizations, local governments, and
state agencies.
3)Procedures and Protocols . The CAR has developed a general
protocol and several industry-specific protocols to help
participants establish a greenhouse gas emission inventory.
The CAR requires participants to report only carbon dioxide
emissions for the first three years, with the emissions of the
five other greenhouse gases covered by the Kyoto Protocol
required to be reported after three years.
4)Opposition in the Natural Resources Committee focused on the
state subsidy provision that was removed by the author with
the March 31st amendments.
Analysis Prepared by : Steve Archibald / APPR. / (916)
319-2081