BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 605
                                                                  Page 1

          (  Without Reference to File  )

          SENATE THIRD READING
          SB 605 (Lara and Pavley)
          As Amended  August 29, 2014
          Majority vote

           SENATE VOTE  :Vote not relevant  
           
           NATURAL RESOURCES         6-3   APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Garcia,          |Ayes:|Gatto, Bocanegra,         |
          |     |Muratsuchi, Skinner,      |     |Bradford,                 |
          |     |Stone, Williams           |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove, Bigelow, Patterson |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Air Resources Board (ARB) to complete a  
          comprehensive strategy to reduce emissions of short-lived  
          climate pollutants (SLCPs).  Specifically,  this bill  :

          1)Requires ARB to complete the SLCP strategy by January 1, 2016.

          2)States that the requirements of this bill are notwithstanding  
            the 2020 statewide greenhouse gas (GHG) emissions limit  
            required by the California Global Warming Solutions Act of  
            2006 (AB 32 (Núñez), Chapter 488).

          3)Requires ARB to:

             a)   Complete an inventory of sources and emissions of SLCPs  
               based on available data.

             b)   Identify research needs to identify any data gaps.

             c)   Identify existing and potential new control measures to  
               reduce emissions.

             d)   Prioritize the development of new measures that offer  








                                                                  SB 605
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               co-benefits by improving water quality or reducing air  
               pollutants that impact community health and benefit  
               identified disadvantaged communities.

             e)   Coordinate with other state agencies and air districts  
               to develop measures identified as part of the SLCP  
               strategy.

          4)Requires ARB to consult with experts on SLCPs on specified  
            topics.

          5)Requires ARB to hold at least one public workshop during  
            development of the SLCP strategy.

          6)Defines "short-lived climate pollutant" as an agent that has a  
            relatively short lifetime in the atmosphere and a  
            climate-warming influence that is more potent than carbon  
            dioxide.

          7)Provides that the bill does not affect the existing authority  
            of a state agency to adopt and implement rules and regulations  
            that result in the reduction of GHGs or SLCPs to extent  
            authorized or required by existing law.

           EXISTING LAW  requires ARB, pursuant to AB 32, to: 

          1)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.

          2)Prepare and approve a scoping plan, on or before January 1,  
            2009 and at once every five years thereafter, for achieving  
            the maximum technologically feasible and cost-effective  
            reductions in GHG emissions from sources or categories of  
            sources of GHGs by 2020.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor absorbable costs.

           COMMENTS  :  As part of AB 32's direction that ARB 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, AB 32  
          requires ARB to prepare and approve a scoping plan at five-year  








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          intervals.  

          The first AB 32 scoping plan, adopted by ARB in 2008, described  
          the specific measures ARB and others must take to reduce  
          statewide GHG emissions to 1990 levels by 2020.  Pursuant to AB  
          32, the reduction measures identified in the scoping plan had to  
          be proposed, reviewed, and adopted as individual regulations by  
          January 1, 2011, to become operative beginning on January 1,  
          2012.  According to ARB, a total reduction of 80 million metric  
          tons (MMT), or 16% compared to business as usual, is necessary  
          to achieve the 2020 limit.  Approximately 78% of the reductions  
          will be achieved through identified direct regulations.  ARB  
          proposes to achieve the balance of reductions necessary to meet  
          the 2020 limit (approximately 18 MMT) through a cap-and-trade  
          program that covers an estimated 600 entities.

          In May 2014, ARB adopted a scoping plan update.  The scoping  
          plan update discusses the objective of achieving an 80%  
          reduction by 2050 and the need for a midterm target, but does  
          not propose or adopt a specific target.  According to ARB, the  
          update defines ARB's climate change priorities for the next five  
          years and sets the groundwork to reach California's long-term  
          climate goals.  Among its provisions, the update commits ARB to  
          develop a SLCP strategy by 2015 that will include an inventory  
          of sources and emissions, the identification of additional  
          research needs, and a plan for developing SLCP control measures.

          According to the author, this bill does not increase or decrease  
          the existing regulatory authority of ARB to regulate SLCPs.  It  
          merely binds them to a pre-2016 deadline to complete their  
          strategy development and adds key legislative parameters to  
          structure that process, including requirements for interagency  
          coordination, improved emissions data, and public transparency.
           

          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092                                          FN: 0005559