BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 605| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 605 Author: Lara (D) and Pavley (D) Amended: 8/29/14 Vote: 21 PRIOR VOTES NOT RELEVANT SENATE ENVIRONMENTAL QUALITY COMMITTEE : 4-2, 8/25/14 (Pursuant to Senate Rule 29.10) AYES: Hill, Jackson, Leno, Pavley NOES: Fuller, Gaines ASSEMBLY FLOOR : Not available SUBJECT : Short-lived climate pollutants SOURCE : Author DIGEST : This bill requires the Air Resources Board (ARB) to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs). Assembly Amendments delete the prior version of this bill relating to the California Global Warming Solutions Act and instead add the current language. ANALYSIS : Existing law requires ARB, pursuant to AB 32, (Núñez, Chapter 488, Statutes of 2006): CONTINUED SB 605 Page 2 1.Adopts a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopts regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2.Prepares and approves 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. 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 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. 1.Requires ARB to consult with experts on SLCPs on specified topics. 2.Requires ARB to hold at least one public workshop during SB 605 Page 3 development of the SLCP strategy. 3.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. 4.Provides that this 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. Background 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 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. SB 605 Page 4 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Assembly Appropriations Committee, minor and absorbable costs. SUPPORT : (Verified 8/26/14) Coalition for Clean Air Environmental Defense Fund Natural Resources Defense Council Sierra Club OPPOSITION : (Verified 8/26/14) Agricultural Energy Consumers Association California Chamber of Commerce California Cotton Ginners Association California Cotton Growers Association California Council for Environmental and Economic Balance California Farm Bureau Federation California Independent Petroleum Association California League of Food Processors California Manufacturers and Technology Association California Poultry Federation Nisei Farmers League Western Agricultural Processors Association Western Growers Association Western States Petroleum Association ARGUMENTS IN SUPPORT : Supporters of the bill state that SB 605 would put a much needed priority on reducing short-lived climate pollutants, which have been scientifically proven to trigger short-term climate warming as well as have negative public health impacts, particularly in low-income communities. ARGUMENTS IN OPPOSITION : Opponents state that the bill will result in duplicative regulations that will drive up cost with regard to environmental or health benefits, and that SB 605 does not include a requirement that emission reduction strategies maximize cost-effectiveness and technological feasibility, which is an important component needed to ensure that the state gets the biggest bang for the buck when choosing to create new SB 605 Page 5 regulations. RM:e 8/29/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****