BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 21
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|Author: |Perea |
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|Version: |5/5/2015 |Hearing |6/17/2015 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Rebecca Newhouse |
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SUBJECT: California Global Warming Solutions Act of 2006:
scoping plan.
ANALYSIS:
Existing law, under the California Global Warming Solutions Act
of 2006 (Health and Safety Code §38500 et seq.):
1) Requires the California Air Resources Board (ARB) to
determine the 1990 statewide greenhouse gas (GHG) emissions
level and approve a statewide GHG emissions limit that is
equivalent to that level, to be achieved by 2020, and to
adopt GHG emissions reductions measures by regulation, and
sets certain requirements in adopting the regulations.
2) Requires ARB to prepare and approve a scoping plan, on or
before January 1, 2009, for achieving the maximum
technologically feasible and cost-effective reductions in GHG
emissions from sources or categories of sources of GHGs by
2020.
3) Requires ARB to prepare and approve a scoping plan by 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, and requires ARB to consult with all
state agencies with jurisdiction over sources of GHGs,
including the Public Utilities Commission (PUC) and the State
Energy Resources Conservation and Development Commission
(CEC) on all elements of its plan that pertain to
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energy-related matters, as specified, to ensure that ARB's
GHG reduction activities are complementary, non-duplicative,
and can be implemented in an efficient and cost-effective
manner.
This bill:
1)Specifies legislative intent that ARB design emissions
reduction measures to meet the statewide emissions limit for
GHG in a manner that cleans the environment in ways that are
cost effective for California residents.
2)Requires ARB to also consult with relevant state agencies,
including the PUC and CEC, in developing all elements of its
Scoping Plan that pertain to energy efficiency, and the
facilitation of the electrification of the transportation
sector.
Background
1) Climate change. The 5th assessment report from the
Intergovernmental Panel on Climate Change (IPCC) notes that
atmospheric concentrations of global warming pollutants have
risen to levels unseen in the past 800,000 years. Carbon
dioxide concentrations have increased by 40% since
pre-industrial times. There is broad scientific consensus
that these global GHG emission increases are leading to
higher air and water temperatures as well as rising sea
levels. Sea level is expected to rise 17 to 66 inches by
2100, and the frequency of extreme events such as heat waves,
wildfires, floods, and droughts is expected to increase.
2) The Global Warming Solutions Act of 2006. In 2006, the
Global Warming Solutions Act of 2006, AB 32 (Núñez, Pavley,
Chapter 488, Statutes of 2006), requires the ARB to determine
the 1990 statewide GHG emissions level and approve a
statewide GHG emissions limit that is equivalent to that
level, to be achieved by 2020.
AB 32 requires the ARB, among other things, to:
Inventory GHG emissions in California.
Implement regulations that achieve the maximum
AB 21 (Perea) Page 3
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technologically feasible and cost-effective reduction of
GHG emissions and impose fees for administrative
implementation costs.
Identify and adopt regulations for discrete early
action measures.
Prepare and approve a scoping plan to achieve the
maximum technologically feasible and cost-effective
reduction of GHG emissions by 2020, to be updated every
five years.
The statute also specifies that the ARB may include
market-based compliance mechanisms in the AB 32 regulations,
after considering the potential for direct, indirect, and
cumulative emission impacts from these mechanisms.
1) AB 32 Scoping Plan. Pursuant to AB 32, the ARB approved the
first Scoping Plan in 2008. The Scoping Plan outlined a
suite of measures aimed at achieving 1990-level emissions, a
reduction of 80 million metric tons of CO2 (MMTCO2e).
Average emission data in the Scoping Plan reveal that
transportation accounts for almost 40% of statewide GHG
emissions, and electricity and commercial and residential
energy sector account for over 30% of statewide GHG
emissions. The industrial sector, including refineries, oil
and gas production, cement plants, and food processors, was
shown to contribute 20% of California's total GHG emissions.
The 2008 Scoping Plan recommended that reducing GHG emissions
from the wide variety of sources that make up the state's
emissions profile could best be accomplished through a
cap-and-trade program along with a mix of other strategies
including a low carbon fuel standard (LCFS), light-duty
vehicle GHG standards, expanding and strengthening existing
energy efficiency programs, and building and appliance
standards, a 33% Renewable Portfolio Standard (RPS), and
regional transportation-related GHG targets. Pursuant to
authority under AB 32, the ARB adopted a Low Carbon Fuel
Standard in 2009, and a cap-and-trade program, approved on
December 13, 2011.
Of the 80 MMTCO2 of GHG emissions reductions required to
reach the 2020 AB 32 target, four programs are estimated by
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ARB to result in the largest emissions reductions, including
cap and trade, LCFS, energy efficiency measures and the RPS.
Together, they are projected to result in 70% of the total
emissions reductions necessary to meet the 2020 goal. The
measures that make up the other 30% include the Advanced
Clean Cars program, which sets GHG emissions standards for
passenger vehicles, the Sustainable Communities and Climate
Protection Act of 2008, created by SB 375 (Steinberg, Chapter
728, Statutes of 2008), which requires ARB to set regional
targets for GHG emissions reductions from passenger vehicle
use, programs for the reduction of high global warming
potential gasses, and others.
Scoping Plan update. ARB approved an update to the Scoping
Plan on May 22, 2014. The update describes policies,
actions, and strategies in the energy, transportation, fuels,
agriculture, waste, and natural lands sectors as a means to
continue emissions reductions in each of these sectors. The
update also asserts that California is on track to meet the
near-term 2020 GHG limit and is well positioned to maintain
and continue reductions beyond 2020.
2) ZEVs. ARB's zero emission vehicle (ZEV) regulation requires
that by 2025 about 15% of new car sales will be zero emission
and requires automakers to produce and sell ZEVs, which
include plug-in electric vehicles (PEVs) and fuel cell
vehicles (FCVs), in order to achieve this mandate.
Automakers may also produce and sell vehicles that are
partially zero emission or help transition to ZEVs in order
to meet the mandate. The goal of the regulation is to ensure
that there will be 1.5 million ZEVs on the road by 2025 in
line with Governor Brown's Executive Order B-16-2012, which
directed that ARB, and other state agencies establish
benchmarks to achieve over 1.5 million zero-emission vehicles
will be on California roads by 2025.
3) Executive Order. On April 29, 2015, Governor Brown issued
Executive Order B-30-15, which established an interim
statewide GHG emission reduction target to reduce GHG
emissions to 40% below 1990 levels by 2030, "in order to
ensure California meets its target of reducing greenhouse gas
emissions to 80 percent below 1990 levels by 2050." The EO
also directed all state agencies with jurisdiction over
sources of GHG emissions to implement measures, pursuant to
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statutory authority, to achieve reductions of GHG emissions
to meet the 2030 and 2050 greenhouse gas emissions reductions
targets.
Comments
1) Purpose of Bill. According to the author, "In order to
ensure the scoping plan asses all major aspects of
energy-related matters including meeting long-term goals, it
should include energy efficiency and the facilitation of the
electrification of the transportation sector. There is a
clear need and desire to increase energy efficiency and the
amount of electric vehicles on our roads by California's
leadership. For example, the Governor has announced
ambitious policy goals of 1.5 million electric vehicles on
California roads by 2025 and the need to double the
efficiency in existing buildings by 2030. In order to
achieve them, there must be a comprehensive strategy that is
thoroughly analyzed to ensure those goals are met."
Related/Prior Legislation
SB 32 (Pavley) of 2015 requires ARB to approve statewide GHG
emissions limits of 40% below the 1990 GHG emissions level, to
be achieved by 2030, and 80% below the 1990 GHG emissions level,
to be achieved by 2040. SB 32 is currently in the Assembly
Natural Resources Committee.
SB 350 (de León) of 2015 establishes the following goals to be
achieved by 2030: 1) 50% reduction in petroleum use, 2) doubling
of the energy efficiency in existing buildings, and 3)
generating 50% of total retail sales of electricity from
renewable resources. SB 350 is currently in the Assembly
Natural Resources Committee.
SOURCE: Author
SUPPORT:
None received
OPPOSITION:
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None received
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