BILL ANALYSIS
AB 1452
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Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AB 1452 (Skinner) - As Amended: April 13, 2009
SUBJECT : Air Resources Board (ARB): cement
SUMMARY : Requires ARB to adopt limitations on greenhouse gas
(GHG) emissions resulting from the production of all cement sold
in California, whether the cement is produced within or outside
the state.
EXISTING LAW requires ARB, pursuant to AB 32, to adopt a
statewide GHG emissions limit equivalent to 1990 levels by 2020
and adopt regulations to achieve maximum technologically
feasible and cost-effective GHG emission reductions. Requires
ARB, in adopting regulations to reduce GHG emissions, to
minimize "leakage" to the extent feasible and in further of
achieving the statewide GHG emissions limit. Defines "leakage"
as a reduction of GHG emission within the state that is offset
by an increase in GHG emissions outside the state.
THIS BILL :
1)Requires ARB, on or before January 1, 2011, to adopt
limitations on GHG emissions resulting from the production of
all cement sold in California, whether the cement is produced
within or outside the state.
2)Requires ARB to include all GHG emissions that result from
transportation of cement to the state, as well as emissions
that result from delivery within the state.
3)Requires the limitations to apply uniformly to all cement sold
within the state.
4)Defines "cement" and "clinker" for purposes of the bill.
FISCAL EFFECT : Unknown
COMMENTS :
Pursuant to AB 32, ARB is required to adopt regulations to limit
GHG emissions from industrial sectors in California, including
AB 1452
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the cement industry. The cement manufacturing sector is one of
the most carbon-intensive industrial sectors, accounting for
roughly 2% of GHG emissions nationwide. California is the
largest cement producing state in the U.S., accounting for
between 10% and 15% of U.S. cement production and cement
industry employment. If GHG regulations only affect cement
produced in California, California cement producers will be
placed at a disadvantage because cement producers outside of the
state who are not subject to the regulations will continue to be
able to import cement with a high carbon intensity factor.
Furthermore, if only California producers are affected, GHG
emissions may "escape" to other cement plant locations around
the globe. Since climate change is a global issue, AB 32
implementation should not increase GHG emissions in other parts
of the world. As result, infrastructure projects using cement
produced abroad or in other states may have a larger carbon
footprint than those using cement produced in the state,
negating the GHG reduction efforts pursued by California
producers. This bill is intended to protect against "leakage"
in the cement industry, and to ensure cement intensive projects
have the smallest carbon-footprint possible.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092