BILL ANALYSIS Ó AB 21 Page 1 ASSEMBLY THIRD READING AB 21 (Perea) As Amended May 5, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Natural |7-0 |Williams, Cristina | | |Resources | |Garcia, Hadley, | | | | |McCarty, Rendon, | | | | |Mark Stone, Wood | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Adds "energy efficiency" and "facilitation of the AB 21 Page 2 electrification of the transportation sector" to the list of energy-related matters that the Air Resources Board (ARB) must consult with other relevant state agencies when preparing the AB 32 (Núñez), Chapter 488, Statutes of 2006, scoping plan to ensure that ARB's greenhouse gas (GHG) reduction activities are complementary, non-duplicative, and can be implemented in an efficient and cost-effective manner. 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. 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 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 AB 21 Page 3 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. This bill adds specified energy-related considerations for the next scoping plan update, which is due in 2019. Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0000430 AB 21 Page 4