BILL ANALYSIS Ó AB 21 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 21 (Perea) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 21 Page 3 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