BILL ANALYSIS                                                                                                                                                                                                    



                                                                        AB 21


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          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  








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          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 (Nez), 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  








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          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



















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