BILL ANALYSIS Ó
AB 21
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Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 21
(Perea) - As Introduced December 1, 2014
SUBJECT: California Global Warming Solutions Act of 2006:
emissions limit: scoping plan
SUMMARY: Requires the Air Resources Board (ARB) to recommend a
greenhouse gas (GHG) emissions reduction target for 2030 to the
Governor and the Legislature by January 1, 2018.
EXISTING LAW requires ARB, pursuant to California Global Warming
Solutions Act of 2006 (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 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:
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1)Requires ARB, no later than January 1, 2018, to recommend to
the Governor and the Legislature a specific target of
statewide GHG emissions reductions for 2030 to be achieved in
a cost-effective manner.
2)Adds "energy efficiency" and "facilitation of the
electrification of the transportation sector" to the list of
energy-related matters that ARB must consult with other
relevant state agencies when preparing the AB 32 Scoping Plan
to ensure that ARB's GHG reduction activities are
complementary, non-duplicative, and can be implemented in an
efficient and cost-effective manner.
3)Makes related amendments to AB 32's findings.
FISCAL EFFECT: Unknown
COMMENTS:
1)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
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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.
2)Governor's goals. In his January 5, 2015 Inaugural Address,
Governor Brown announced the following "objectives for 2030
and beyond":
Toward that end, I propose three ambitious goals to be
accomplished within the next 15 years:
Increase from one-third to 50 percent our
electricity derived from renewable sources;
Reduce today's petroleum use in cars and
trucks by up to 50 percent; and,
Double the efficiency of existing buildings
and make heating fuels cleaner.
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We must also reduce the relentless release of methane,
black carbon and other potent pollutants across industries.
And we must manage farm and rangelands, forests and
wetlands so they can store carbon. All of this is a very
tall order. It means that we continue to transform our
electrical grid, our transportation system and even our
communities.
I envision a wide range of initiatives: more distributed
power, expanded rooftop solar, micro-grids, an energy
imbalance market, battery storage, the full integration of
information technology and electrical distribution and
millions of electric and low-carbon vehicles. How we
achieve these goals and at what pace will take great
thought and imagination mixed with pragmatic caution. It
will require enormous innovation, research and investment.
And we will need active collaboration at every stage with
our scientists, engineers, entrepreneurs, businesses and
officials at all levels.
Taking significant amounts of carbon out of our economy
without harming its vibrancy is exactly the sort of
challenge at which California excels. This is exciting, it
is bold and it is absolutely necessary if we are to have
any chance of stopping potentially catastrophic changes to
our climate system.
1)Purpose of the bill. According to the author, "in order to
continue California's leadership in establishing a low-carbon
future and addressing climate change, new legislation must be
adopted to establish a post-2020 GHG emissions reduction
target." The author further states the AB 32 scoping plan
"should include energy efficiency and the facilitation of the
electrification of the transportation sector."
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2)Now or later? In addition to ARB's ongoing planning and
regulatory efforts, pending legislation would set targets for
2030 and beyond for statewide GHG emissions and for specific
sectors. Bills include AB 645 (Williams and Rendon), which
establishes a 50% renewable energy target for 2030, SB 350 (De
León), which establishes 50% targets for renewable energy,
energy efficiency, and petroleum reduction, and SB 32
(Pavley), which requires ARB to approve a statewide GHG target
for 2050 that is 80% below 1990 levels, and authorizes ARB to
approve interim targets for 2030 and 2040.
This bill represents an alternative approach - ask ARB to
develop recommended targets and report to the Legislature by
2018. Presumably, ARB's recommendation would serve as the
basis for legislation to be enacted in 2018 or after. The
author and the committee may wish to consider whether 2018 is
too late and whether the addition of "cost-effective" is
duplicative and unnecessary given that ARB's regulations must
be both cost-effective and technologically feasible under
current law.
REGISTERED SUPPORT / OPPOSITION:
Support
Agricultural Council of California
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California Asian pacific Chamber of Commerce
California Business Properties Association
California Business Roundtable
California Chamber of Commerce
California Manufacturers & Technology Association
California Retailers Association
California Trucking Association
Industrial Environmental Association
National Federation of Independent Business
Opposition
California State Association of Electrical Workers
California State Pipe Trades Council
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Elevator Constructors Union
Western States Council of Sheet Metal Workers
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092