BILL ANALYSIS Ó
AB 33
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Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 33
(Quirk) - As Amended April 6, 2015
SUBJECT: California Global Warming Solutions Act of 2006:
Climate Change Advisory Council
SUMMARY: Establishes the Climate Change Advisory Council
(Council) to make recommendations to the Air Resources Board
(ARB) regarding various greenhouse gas (GHG) emission reduction
strategies, including grid integration, building efficiency, and
advanced transportation.
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 of emissions by 2020.
THIS BILL:
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1)Establishes the Council, consisting of the following
appointees or their designees:
a) Chair of ARB.
b) President of Public Utilities Commission (PUC).
c) Chair of California Independent System Operator
(CAISO) governing board.
d) Chair of State Water Resources Control Board
(SWRCB).
e) Chair of California Energy Commission (CEC).
2)Requires the Council to complete recommendations for inclusion
in the AB 32 Scoping Plan consisting of:
a) Analysis of various strategies to achieve the
statewide GHG limit, including, but not limited to, the
following specified strategies:
i. Grid integration - Integrate a 40%, 50%,
and greater than 50% Renewables Portfolio Standard
in order to minimize and eliminate over-generation
and the need for curtailment, including six
specified elements.
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ii. Building efficiency - Increase energy
efficiency in commercial and residential buildings,
including three specified elements.
iii. Advanced transportation - Increasing fuel
economy in light-duty vehicles, reducing emissions
in heavy-duty vehicles, increasing the market for
low and very-low carbon fuels, and building electric
and low-carbon vehicle infrastructure.
b) Economic assessment of the various GHG strategies
using the best available models and data.
c) Analysis of other benefits of the various
strategies.
3)Provides that the Council's analysis is intended to assist in
establishing state policy and does not change any statute,
regulation, or regulatory decision.
4)Requires ARB to establish consistent metrics for GHG emission
reductions, public health benefits, and cost-effectiveness of
the various strategies identified by the Council.
5)Makes related findings and declarations.
FISCAL EFFECT: Unknown
COMMENTS:
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1)Background. 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 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.
2)Governor's goals. In his January 5, 2015 Inaugural Address,
Governor Brown announced the following "objectives for 2030
and beyond":
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Toward that end, I propose three ambitious goals to be
accomplished within the next 15 years:
Increase from one-third to 50 percent our
electricity derived from renewable sources;
Reduce today's petroleum use in cars and
trucks by up to 50 percent;
Double the efficiency of existing buildings
and make heating fuels cleaner.
We must also reduce the relentless release of methane,
black carbon and other potent pollutants across industries.
And we must manage farm and rangelands, forests and
wetlands so they can store carbon. All of this is a very
tall order. It means that we continue to transform our
electrical grid, our transportation system and even our
communities.
I envision a wide range of initiatives: more distributed
power, expanded rooftop solar, micro-grids, an energy
imbalance market, battery storage, the full integration of
information technology and electrical distribution and
millions of electric and low-carbon vehicles. How we
achieve these goals and at what pace will take great
thought and imagination mixed with pragmatic caution. It
will require enormous innovation, research and investment.
And we will need active collaboration at every stage with
our scientists, engineers, entrepreneurs, businesses and
officials at all levels.
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Taking significant amounts of carbon out of our economy
without harming its vibrancy is exactly the sort of
challenge at which California excels. This is exciting, it
is bold and it is absolutely necessary if we are to have
any chance of stopping potentially catastrophic changes to
our climate system.
1)Author's statement:
The implementation of (AB 32's) ambitious energy and
environmental goals are the responsibility of a group of
fragmented state agencies that lack a comprehensive plan to
effectively move forward and synchronize our policies to
ensure maximum efficiency. AB 33 would increase
coordination between ARB, CPUC, CEC, SWRCB, and CAISO by
establishing the Climate Change Advisory Council and
directing the Council to analyze various GHG emissions
reduction strategies in the areas of (1) energy generation;
(2) transportation; and (3) energy efficiency.
(The AB 32 Scoping Plan) is instrumental in determining
which strategies are working or need adjustment, which
strategies should be jettisoned, and what new strategies
should be pursued. Unfortunately, in the 2014 update to
ARB's Scoping Plan, ARB fell short in producing a robust
economic assessment of the strategies implemented to reduce
emissions thus far. AB 33 would address this by requiring
the Council to conduct an economic assessment of the
various GHG emissions reduction strategies using the best
available economic models and data.
2)Questions for the author and committee to consider:
a) Are these five appointees the best suited for the
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analyses required by the bill? Do they, their designees,
or agencies have the expertise to analyze advanced
transportation or develop an economic assessment of the
full range of GHG reduction strategies? Because the
Council members are all appointees of the Governor,
including the ARB Chair, will they be able to provide an
independent perspective to ARB?
b) As a state entity, will the Council be subject to
the Bagley-Keene Open Meetings Act and other procedural
requirements?
c) Is the timeline of the next scoping plan update
(2019) too long to wait to for these analyses?
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
AB 33
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Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092