BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 32
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          ASSEMBLY THIRD READING
          AB 32 (Pavley)
          As Amended March 31, 2005
          Majority vote 

           NATURAL RESOURCES   6-2         APPROPRIATIONS      13-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hancock, Koretz, Laird,   |Ayes:|Chu, Bass, Berg,          |
          |     |Nava, Salda?a, Wolk       |     |Calderon, Levine,         |
          |     |                          |     |Karnette, Klehs, Leno,    |
          |     |                          |     |Nation, Monta?ez, Mullin, |
          |     |                          |     |Salda?a, Yee              |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|La Malfa, Keene           |Nays:|Sharon Runner, Emmerson,  |
          |     |                          |     |Haynes, Nakanishi,        |
          |     |                          |     |Walters                   |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Expands the responsibilities of the California Climate  
          Action Registry (Registry) by specifying the Registry work in  
          coordination with the California Environmental Protection Agency  
          and the State Energy Resources Conservation and Development  
          Commission to adopt procedures and protocols on greenhouse gas  
          emissions for oil and natural gas exploration, extraction,  
          processing, refining, transmission, and distribution and cement  
          production and municipal solid waste and industrial waste  
          hauling and disposal.

           EXISTING LAW  :

          1)Establishes the Registry as a nonprofit public benefit  
            corporation to voluntarily record and register greenhouse gas  
            emissions reductions made by California entities after 1990.

          2)Requires the Registry to provide referrals to approved  
            providers for advice on designing programs to establish  
            emissions baselines and to monitor and track greenhouse gas  
            emissions, establishing emissions reduction goals, and  
            designing and implementing organization-specific plans that  
            improve energy efficiency or utilize renewable energy, or  
            both, and that are capable of achieving emission reduction  
            targets.








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          3)Requires the Registry to perform various functions, including  
            among other things, adopting standards for verifying emissions  
            reductions, adopting a list of approved auditors that verify  
            emission reductions, establishing emissions reduction targets,  
            designing and implementing efficiency improvement plans,  
            maintaining a record of all emission baselines and reductions,  
            and recognizing, publicizing, and promoting entities that  
            participate in the Registry.

          4)Requires the Registry adopt procedures and protocols for the  
            various offsets that a participant can use to mitigate  
            emissions.

          5)Requires the Registry adopt procedures and protocols for the  
            monitoring, estimating, calculating, reporting, and certifying  
            of carbon stores and carbon dioxide emissions resulting from  
            the conservation and conservation-based management of native  
            forest reservoirs in California, so that participants can  
            include those conservation activities in registered emissions  
            results.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, moderate costs, about $210,000 in fiscal year  
          2005-06, to the Registry to develop the specified procedures and  
          protocols.

          COMMENTS  :  California established the Registry in 2000 to  
          encourage entities to start voluntarily reducing their  
          greenhouse gas emissions, particularly carbon dioxide, and to  
          register the savings under guidelines established by the  
          Registry.  The Registry establishes emissions baselines against  
          which any future federal or state greenhouse gas emission  
          reduction requirements may be applied.  It encourages voluntary  
          actions by Registry participants to increase energy efficiency  
          and reduce greenhouse gas emissions, and record voluntary  
          greenhouse gas emissions made after 1990. 

          According to the author's office, on two different occasions (SB  
          527 (Sher) Chapter 769, Statutes of 2001 and SB 812 (Sher)  
          Chapter 423, Statutes of 2002) the Legislature has passed laws  
          to expand and clarify activities of the Registry.  This bill is  
          the next iteration of legislative direction to expand the work  
          of the Registry to the oil and natural gas, cement production,  








                                                                  AB 32
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          and municipal solid and industrial waste industries by  
          establishing additional procedures and protocols to support  
          California's efforts to measure and monitor emissions from  
          sources within its boundaries.
           

          Analysis Prepared by  :  Kyra Emanuels Ross / NAT. RES. / (916)  
          319-2092 


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