BILL ANALYSIS                                                                                                                                                                                                    



                                                                      AB 21


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          21 (Perea) - As Amended May 5, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill revises the list of energy-related matters upon which  
          ARB must consult with other relevant state agencies when  
          preparing the AB 32 Scoping Plan to include energy efficiency  
          and the facilitation of the electrification of the  








                                                                      AB 21


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          transportation sector.


          FISCAL EFFECT:


          Minor, absorbable costs. 


          COMMENTS:


          Background and Purpose.  The California Global Warming Solutions  
          Act of 2006 (AB 32) requires ARB to adopt:  a) statewide GHG  
          emissions limit equivalent to 1990 levels by 2020; and b)  
          regulations, including market-based compliance mechanisms, 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.  


          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  








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          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.


          The next scoping plan update will be in 2019.  According to the  
          author, the next scoping plan should specifically include energy  
          efficiency and the facilitation of the electrification of the  
          transportation sector.


          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081