BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 21|
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THIRD READING
Bill No: AB 21
Author: Perea (D), et al.
Amended: 5/5/15 in Assembly
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/17/15
AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 73-0, 5/18/15 - See last page for vote
SUBJECT: California Global Warming Solutions Act of 2006:
scoping plan
SOURCE: Author
DIGEST: This bill revises the list of energy-related matters
upon which the California Air Resources Board (ARB) must consult
with other relevant state agencies when preparing the AB 32
Scoping Plan and adds cost-effectiveness considerations to AB 32
intent language.
ANALYSIS:
Existing law, under the California Global Warming Solutions Act
of 2006 (Health and Safety Code §38500 et seq.):
1) Requires the ARB to determine the 1990 statewide greenhouse
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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 the 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 the 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 energy-related matters, as specified, to ensure
that the 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 the ARB design emissions
reduction measures 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 the 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 fifth assessment report from the
Intergovernmental Panel on Climate Change 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
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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. The Global Warming
Solutions Act of 2006, AB 32 (Núńez and 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
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 carbon dioxide
equivalent (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
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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 MMTCO2e of GHG emissions reductions required to
reach the 2020 AB 32 target, four programs are estimated by
the 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
the 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. The 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.
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2) Zero emission vehicles (ZEVs). The ARB's 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 and fuel cell
vehicles, 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 the ARB and other state agencies establish benchmarks to
achieve over 1.5 million ZEVs 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
Order also directed all state agencies with jurisdiction over
sources of GHG emissions to implement measures, pursuant to
statutory authority, to achieve reductions of GHG emissions
to meet the 2030 and 2050 GHG emissions reductions targets.
Comments
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
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SB 32 (Pavley, 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, 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
Utilities and Commerce Committee.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified6/29/15)
Agricultural Council of California
California Asian Pacific Chamber of Commerce
California Business Properties Association
California Business Roundtable
California Chamber of Commerce
California Grocers Association
California Independent Oil Marketers Association
California Manufacturers and Technology Association
California Retailers Association
California Taxpayers Association
Industrial Environmental Association
Pacific Merchant Shipping Association
Western States Petroleum Association
OPPOSITION: (Verified6/29/15)
None received
ARGUMENTS IN SUPPORT: Supporters note that it is important
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that California consider the cost effectiveness of various
emissions reduction measures, and they note that AB 21 adds an
important criterion to help ensure that California investments
in GHG emission reductions make the best use of the funding made
available.
ASSEMBLY FLOOR: 73-0, 5/18/15
AYES: Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,
Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Grove, Hadley, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Lackey, Levine, Linder, Low, Maienschein,
McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell,
Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas,
Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond,
Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Travis Allen, Harper, Kim, Lopez, Mathis,
Mayes, Melendez
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
8/20/15 14:25:57
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