BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1373
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          Date of Hearing:  April 20, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                   AB 1373 (Skinner) - As Amended:  April 14, 2009
           
          SUBJECT  :  High global warming potential (GWP):  refrigerants

           SUMMARY  :  Requires the California Energy Commission (CEC), on or  
          before December 1, 2011, to assess, in consultation with the  
          State Air Resources Board (ARB) the potential to dramatically  
          reduce the use and emissions of high-GWP compounds in stationary  
          refrigeration and air-conditioning industry in California.

           EXISTING LAW  : 

          1)Requires ARB to adopt a statewide greenhouse gas (GHG)  
            emissions limit equivalent to 1990 levels by 2020 and adopt  
            regulations to achieve maximum technologically feasible and  
            cost-effective GHG emission reductions.

          2)Requires CEC to adopt and periodically update lighting,  
            insulation climate control system, and other building design  
            and construction standards (known as Title 24 standards) that  
            increase the efficiency in the use of energy and water for new  
            residential and new nonresidential buildings.

           FISCAL EFFECT :  Unknown

           THIS BILL  :

          1)Requires the CEC, as part of its 2011 update to the energy  
            efficiency standards under Title 24, to assess, in  
            consultation with ARB, the potential to dramatically reduce  
            the use and emissions of high-GWP compounds in stationary  
            refrigeration and air-conditioning industry in California on  
            or before December 1, 2011, so long as existing staff and  
            funds are available.

          2)Defines "high-GWP" to mean a global warming potential that is  
            greater than 150 carbon dioxide equivalents.  

          3)Defines "low-GWP" to mean a global warming potential that is  
            less than or equal to 150 carbon dioxide equivalents.









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          4)Specifies that the assessment include:

             a)   An analysis of the nexus between energy efficiency and  
               GHG emissions within stationary refrigeration and air  
               conditioning systems, and an assessment of the energy  
               efficiency of low-GWP systems;















































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             b)   An analysis of the current technological status of  
               stationary refrigerant and air conditioning systems using  
               low-GWP materials and their potential for use in California  
               by 2020;

             c)   An analysis of economic costs and safety of low-GWP  
               materials;

             d)   Identification of existing laws, codes, regulations and  
               incentive programs pertinent to the safety and energy  
               efficiency of stationary refrigeration and air  
               conditioning; and an analysis of how they can be modified  
               to promote the use of low-GWP refrigerants; and

             e)   Recommendations for new incentive programs and pilot  
               programs.

          5)Requires the CEC, on or before January 1, 2012, to submit the  
            study to the Legislature.

          6)Authorizes the CEC and ARB to offer incentives and develop  
            pilot projects to encourage the use of low-GWP refrigerants;  
            ARB can also develop relevant worker training programs.

           COMMENTS  :  According to the author's office, California's  
          commercial refrigerators and air conditioners leak high GWP  
          gases that are typically 1,500 and 4,000 times more powerful  
          than carbon dioxide in contributing to global warming.   
          According to the ARB, the 200,000 individual facilities that are  
          estimated to use these substances in California release the  
          equivalent of 32 million metric tons (MMT) of carbon dioxide  
          (CO2), roughly equal to the CO2 emissions of nearly six million  
          cars.

          The author states that while the commercial refrigeration and  
          air-conditioning industry in Europe and Australia have already  
          begun installing systems using climate friendly low-GWP  
          refrigerants, the U.S. market has lagged.  These systems, using  
          "natural" refrigerants like CO2, hydrocarbon and ammonia, have  
          low GHG emissions and have the potential to use less energy.  As  
          shown by the lack of market adoption of alternative,  
          climate-friendly systems in the state, California lacks the  
          incentives and regulatory structure to facilitate large-scale  
          adoption of low-GWP refrigerants.








                                                                  AB 1373
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           1)Background.   High-GWP gases are used as refrigerants in a wide  
            variety of stationary air conditioning and refrigeration  
            equipment such as chillers, supermarket systems, industrial  
            process refrigeration, refrigerated vending machines.  They  
            include: chlorofluorocarbons (CFCs) and  
            hydrochlorofluorocarbons (HCFCs), ozone depleting substances  
            (ODS) that are regulated under the U.S. Clean Air Act; and  
            hydrofluorocarbons (HFCs), non-ozone depleting substitutes,  
            but like the CFCs and HCFCs, are potent global warming gases.

            Leaks from these systems are commonplace and their leak rates  
            are estimated to range from 35-100 percent depending on the  
            system.  For large systems, both direct (leaks from vibration,  
            thermal expansion, and ruptures) and indirect (inefficient  
            energy use, lack of heat recovery) CO2-equivalent emissions  
            amount to approximately five MMT/year.  A single, significant  
            leaking system can emit over 7,000 metric tons of emissions.   
            According to the ARB, total emissions from this sector are  
            expected to grow to over 35 MMT by 2020.

































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           2)Existing regulations focus on controlling leaks.   Federal  
            Clean Air Act regulations prohibit the intentional release of  
            ODS refrigerants, require the repair, retrofit, or replacement  
            of certain equipment, set certification requirements for  
            equipment and technicians, and restrict the sale of  
            refrigerants to certified technicians.  In addition to federal  
            record-keeping requirements, the South Coast Air Quality  
            Management District (SCAQMD) imposes a reporting requirement  
            for certain systems containing more than 50 lbs of an ODS.   
            Despite these restrictions, US EPA estimates that there are  
            significant and preventable emissions of these high-GWP gases  
            from refrigeration and air-conditioning systems due to  
            improper maintenance, service, and disposal practices, and the  
            continued reliance on older, inefficient equipment.  Moreover,  
            these restrictions do not apply to HFCs.

           3)ARB's early-action measure tightens control of high-GWP  
            refrigerants.   In a regulation set to take effect in January  
            2010, ARB is proposing to build on existing regulations by  
            controlling emissions from all high-GWP refrigerants via  
            reporting, leak tests, repair requirements, best practices for  
            installation and servicing, sale restrictions, safe disposal.   
            This measure is projected to reduce emissions by 15 MMT by  
            2020, leaving about 16 million MMT of emissions uncontrolled.   
            In order to encourage use of low-GWP alternatives, ARB is also  
            proposing to impose a mitigation fee on every pound of  
            refrigerant sold in California.  

          4)Need for a greater emphasis on alternatives.   Given the large  
            deficit of emissions unaccounted for in ARB's regulation, this  
            bill takes the first step towards encouraging the adoption of  
            climate-friendly refrigerants in California.  Low-GWP  
            refrigerants such as ammonia, hydrocarbons, and even carbon  
            dioxide have been used in Europe, Australia, and Japan for  
            many years and they are now being used in applications that  
            previously favored high-GWP refrigerants.  While concerns  
            about safety, toxicity, and efficacy have limited their use in  
            North America new technology and advancements are beginning to  
            minimize or eliminate these concerns.
           
           This bill requires the CEC to assess the potential to  
          dramatically reduce the use and emissions of high-GWP compounds  
          through the use of market incentives, pilot programs, and other  
          mechanisms.  The author acknowledges that factors such safety,  








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          available technology, energy efficiency tradeoffs, and  
          cost-effectiveness must be considered in detail in order to  
          ensure an orderly transition to low-GWP refrigerants.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           American Lung Association
          Breathe California
          California League of Conservation Voters
          Center for Biological Diversity
          Coalition for Clean Air
          Environmental Defense Fund
          Greenpeace
          Sierra Club California
          Union of Concerned Scientists

           Opposition 
           
          None on File
           

          Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092