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 Page 2 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 SB 605 Page 3 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