BILL ANALYSIS                                                                                                                                                                                                    



                                                                      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













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          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092