BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         AB 33|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 33
          Author:   Quirk (D)
          Amended:  8/18/15 in Senate
          Vote:     21  

           SENATE ENERGY, U. & C. COMMITTEE:  11-0, 7/7/15
           AYES:  Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,  
            McGuire, Morrell, Pavley, Wolk

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  7-0, 7/15/15
           AYES:  Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley

           SENATE APPROPRIATIONS COMMITTEE:  6-1, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza
           NOES:  Nielsen

           ASSEMBLY FLOOR:  71-5, 6/3/15 - See last page for vote

           SUBJECT:   California Global Warming Solutions Act of 2006:  
                     Energy Sector Emissions Reduction Advisory Council


          SOURCE:    Author

          DIGEST:   This bill establishes the Energy Sector Emissions  
          Reduction Advisory Council, an advisory body of state agencies  
          to inform the Air Resources Board's development of its next  
          greenhouse gas emissions reduction scoping plan.
          
          ANALYSIS: 

          Existing law:









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          1)Requires the reduction of statewide emissions of greenhouse  
            gases (GHGs) to 1990 levels by 2020.  This is known as the  
            Global Warming Solutions Act of 2006. 

          2)Directs the California Air Resources Board (ARB) to adopt, by  
            January 1, 2009, a scoping plan for achieving the maximum  
            technologically feasible and cost-effective reductions in GHG  
            emissions by 2020, and to update the scoping plan at least  
            once every five years.  
           
          3)Requires the ARB to consult with all state agencies with  
            jurisdiction over sources of GHGs, including the California  
            Public Utilities Commission (CPUC) and the California Energy  
            Commission (CEC), on all elements of its plan that pertain to  
            energy-related matters to ensure the GHG reduction activities  
            are complementary, nonduplicative, and can be implemented in  
            an efficient and cost-effective manner. 

          4)Requires ARB to convene an Environmental Justice Advisory  
            Committee to advise it in developing the scoping plan and any  
            other matter pertinent to the reduction of GHG emissions.

          5)Requires the ARB to appoint an Economic and Technology  
            Advancement Advisory Committee to advise it on activities that  
            will facilitate investment in and implementation of  
            technological research and development opportunities that will  
            assist in the reduction of GHG emissions. 
            (Health and Safety Code §38500 et seq.)

          This bill:

          1)Establishes the Energy Integration Advisory Council comprised  
            of the following state-agency members:   (a) chair of the CEC;  
            (b) president of the CPUC; (c) president of the California  
            Independent System Operator; (d) chair of the State Water  
            Resources Control Board; and, (e) chair of the ARB.

          2)Directs the council to recommend to ARB, for inclusion in  
            ARB's next scoping plan, strategies for GHG emissions  
            reductions from the electricity sector and integration of  
            increasing amounts of renewable energy to the electricity grid  
            as required by state law or needed to achieve statewide GHG  
            emissions limits. 








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          3)Directs the council to base its recommendations upon technical  
            feasibility, cost-effectiveness and the extent to which  
            implementation would maintain the reliability of the  
            electricity grid and reduce emissions of GHGs.

          4)Specifies energy-sector GHG reduction strategies the council  
            is to consider, at a minimum, including storage, regional  
            interconnection, retrofitting of existing natural-gas fired  
            powerplants, increased flexibility, demand response, and other  
            strategies, and requires separate analyses of the economic  
            effects and health, safety and welfare benefits of those  
            strategies.

          5)Requires the council's preliminary recommendations to be  
            subject to public comment and revision by the council.  

          6)States that the council's recommendations and analyses are  
            intended to assist in updating the scoping plan and to inform  
            the regulations and approaches of the represented agencies and  
            do not change any statute, regulation, or regulatory decision.

          Background

          AB 32 Scoping Plan. The Global Warming Solutions Act of 2006  
          (aka "AB 32") requires ARB to adopt a statewide GHG emissions  
          limit equivalent to 1990 levels by 2020.  AB 32 requires ARB,  
          via a series of public workshops, to adopt a scoping plan to  
          achieve the maximum technologically feasible and cost-effective  
          reductions in GHG emissions.  The Act further requires ARB, in  
          developing the scoping plan, to consult with all state agencies  
          with jurisdiction over sources of GHGs, including the CPUC and  
          the CEC specifically, on all elements of its plan that pertain  
          to energy-related matters.  The Act directs ARB to adopt its  
          first scoping plan as of January 1, 2009, and to update the  
          scoping plan at least every five years thereafter.  In keeping  
          with statutory requirements, ARB has adopted two GHG emissions  
          reduction scoping plans, the first in 2008 and an update in  
          2014.

          2020 and beyond.  AB 32 specifies a 2020 GHG emissions reduction  
          goal.  The Legislature, however, in passing AB 32, envisioned  
          GHG reductions beyond 2020:  the Act directs ARB to make  
          recommendations to the Governor and the Legislature on how to  
          continue GHG emissions reductions beyond 2020.  Against that  







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          backdrop, both the Governor and members of the Legislature have  
          proposed longer-term GHG emissions reductions.  Governor Brown  
          recently issued Executive Order B-30-15, which establishes a new  
          GHG reduction target of 40 percent below 1990 levels by 2030 and  
          ordered ARB to update its scoping plan to reflect the target.   
          Similarly, Senator Pavley, the author of AB 32, has authored SB  
          32, which calls for a statewide GHG emissions limit equivalent  
          to 40 percent below the 1990 level, to be achieved by 2030.  

          Belt and suspenders.  The author intends this bill, which  
          creates the Energy Sector Emissions Reductions Advisory Council,  
          to ensure the ARB's scoping plan update is informed by, and  
          coordinated with, the state's energy-related agencies.  This  
          bill requires the council to develop and deliver recommendations  
          to ARB before the next scoping plan update on strategies to  
          reduce GHG emissions from the electricity sector and integrate  
          increasing volumes of renewable energy.  This bill directs the  
          council to do its work in public - subject to Bagley-Keene open  
          meeting requirements, presumably - and according to specified  
          criteria.  AB 33 is very much in keeping with existing law, so  
          much so that many of this bill's specific requirements, and its  
          general purpose, echo the requirements of current statute. 

          Related/Prior Legislation
          
          SB 32 (Pavley, 2015) requires the ARB to approve statewide GHG  
          emissions limits of 40 percent below the 1990 level of GHG  
          emissions, to be achieved by 2030, and 80% below the 1990 level,  
          to be achieved by 2050.  The bill is pending consideration on  
          the Assembly Floor. 

          AB 32 (Nuńez/Pavley, Chapter 488, Statutes of 2006) enacted the  
          Global Warming Solutions Act of 2006, which created a statewide  
          GHG emission limit that would reduce emissions to 1990 levels by  
          2020.  
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No            

          According to the Senate Appropriations Committee:

           One-time costs between $400,000 and $900,000 to the Energy  
            Resources Programs Account for the CEC to conduct the required  
            analyses.







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           One-time costs of approximately $61,000 to the Public  
            Utilities Reimbursement Account for the CPUC to participate in  
            the Energy Sector Emissions Reductions Advisory Council.

           One-time costs of $50,000 from the Cost of Implementation  
            Account for the ARB to comply with Bagley-Keene requirements.

          SUPPORT:   (Verified8/28/15)


          California Energy Storage Alliance
          California Manufacturers & Technology Association
          Calpine Corporation
          Environmental Defense Fund
          Union of Concerned Scientists


          OPPOSITION:   (Verified8/28/15)


          Department of Finance

          ARGUMENTS IN SUPPORT:  Supporters contend it is critical, as  
          California expands it GHG emissions reductions goals, that the  
          state make well-informed decisions and that the Legislature  
          consider the potential costs and benefits of varying levels of  
          emissions in order to ensure that prices do not harm residential  
          and industrial consumers.

          ARGUMENTS IN OPPOSITION:     The Department of Finance reports  
          it opposes this bill because it is duplicative of existing law  
          and, therefore, imposes unnecessary costs.

          ASSEMBLY FLOOR:  71-5, 6/3/15
          AYES:  Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  







                                                                      AB 33  
                                                                    Page  6


            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NOES:  Travis Allen, Brough, Beth Gaines, Gallagher, Kim
          NO VOTE RECORDED:  Bigelow, Chang, Jones, Mathis

          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
          8/31/15 8:33:51


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