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  








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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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