BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 605 (Lara) - California Global Warming Solutions Act of 2006:
scoping plan.
Amended: May 8, 2013 Policy Vote: EQ 7-2
Urgency: No Mandate: No
Hearing Date: May 23, 2013 Consultant: Marie Liu
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: SB 605 would make various new requirements of the
next scoping plan prepared by the Air Resources Board (ARB) and
require that the scoping plan be approved by the Joint
Legislative Budget Committee.
Fiscal Impact:
Annual limited-term costs of $1.7 million and 11.2 PYs from
the Cost of Implementation Account (COI) within the Air
Pollution Control Fund (special fund) for FY 2013-14, FY
2014-15, and FY 2015-16 for additional information to be
incorporated into the 2013 scoping plan.
Annual ongoing costs of $1.7 million and 11.2 PYs from the
COI starting in FY 2013-14 for to incorporate additional
information into future scoping plans.
Background: The California Global Warming Solutions Act of 2006
(AB 32 (Nunez/Pavley) Chapter 488/2006) requires the state's
greenhouse gas (GHG) emissions to be reduced to 1990 levels by
2020. ARB is required to adopt GHG emissions reduction measures
by regulation and may include the use of market-based mechanisms
to comply with these regulations. The implementation of AB 32 is
guided by a scoping plan prepared and approved by ARB. The first
scoping plan was required to be adopted by January 1, 2009 and
updated at least once every five years. ARB is required to
evaluate the total potential costs and total potential economic
and noneconomic benefits of the plan for reducing GHGs to the
state's economy and public health.
The current scoping plan outlines achieving GHG emission
reductions through a cap-and-trade program, the low carbon fuel
standard, light-duty vehicle GHG standards, energy efficiency
actions, the Renewable Portfolio Standard, regional
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transportation-related GHG targets, and a variety of other
actions and programs.
Proposed Law: This bill would require the ARB to include in the
next scoping update:
A prioritization and emphasis on measures that result in
GHG emissions while creating jobs within the state and
reducing co-pollutants.
A prioritization and emphasis on current regulations and
actions and additional measures to achieve the maximum,
technologically feasible, and cost-effective reductions in
short-lived climate pollutants with high global warming
potential.
Requirement that offsets originate and be achieved within
the state to the maximum extent feasible.
A plan that achieves the GHG emission goal that would be
implemented in the event that current measures do not result
in the GHG reductions necessary.
Consideration of the use of special funds that are
authorized to be expended for the purposes of GHG reductions
for reductions from sources within the state.
The scoping plan update would be required to be approved by the
Joint Legislative Budget Committee in consultation with the
appropriate Legislative Committees.
If ARB completes an update prior to January 1, 2014, this bill
would require the ARB to revise the update to comply with these
new requirements.
Staff Comments: This bill would require ARB to include a
substantial amount of new information into future scoping plans.
ARB estimates that it would need an additional 11.2 PYs and $1.7
million ongoing to meet the additional requirements under this
bill.
However, given the timing of this bill and the planned 2013
scoping plan update, there may be additional costs. The first
scoping plan was adopted in 2008 and thus ARB is planning
completing its update in 2013. A preliminary draft is scheduled
to be released in summer 2013 and the Board anticipates
considering adoption of the update in the fall. Even if the ARB
began to adjust the scoping plan per this bill after the
Governor's signature, should it pass the Legislature, much of
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the work to create the update will have already been completed.
This bill would explicitly require ARB to revise the update if
an update is adopted prior to January 1, 2014. ARB estimates
that this would result in the need for 11.2 PYs and $1.7 million
for three years.
Proposed Author Amendments: Remove the requirement for the
Legislature to approve the update to the strategic plan and
specify that the backup plan for GHG emissions is a backup in
the event that any of the GHG measures fail.