BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 197 (Eduardo Garcia) - State Air Resources Board:  greenhouse  
          gases
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: August 2, 2016         |Policy Vote: E., U., & C. 7 -   |
          |                                |          1, E.Q. 5 - 2         |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 8, 2016    |Consultant: Narisha Bonakdar    |
          |                                |                                |
           ----------------------------------------------------------------- 
          
          This bill meets the criteria for referral to the Suspense File.


          Bill  
       Summary:1)  AB 197 creates the Joint Legislative Committee on Climate  
          Policies. The bill also requires the Air Resources Board (ARB)  
          to consider adopting measures to achieve the statewide  
          greenhouse gas (GHG) emissions limit based on specified  
          priorities, and requires the ARB to rank all emission reduction  
          measures adopted pursuant to this bill. Finally, this bill adds  
          two ex officio members to the ARB to be appointed from the  
          Legislature.


          Fiscal  
          Impact:  


           One-time costs of $100,000 (various special funds) to the ARB  
            for construction to enlarge the hearing room dais and to  
            provide the equipment needed to accommodate two additional  
            board members. 







          AB 197 (Eduardo Garcia)                                Page 1 of  
          ?
          
          
           $233,000 annually (Cost of Implementation Fund) to the ARB for  
            staffing needs to support new board members and develop  
            ranking criteria. (See staff comments)


          Background:  

          Air Resources Board.  The Air Resources Board was created in  
          1967 through the Mulford-Carrell Act, which combined two  
          Department of Health bureaus, the Bureau of Air Sanitation, and  
          the Motor Vehicle Pollution Control Board. 

          Six of the board members must have certain qualifications (e.g.,  
          automotive engineering; chemistry, meteorology, or a  
          health-related field).  The other six members must be board  
          members from the following entities:  South Coast Air Quality  
          Management District (AQMD), Bay Area AQMD, San Joaquin Valley  
          AQMD, San Diego Air Pollution Control District, one of six  
          Sacramento region air districts, and a board member from any  
          other district.  These board members must reflect the  
          "qualitative requirements" of the other 6 members to the extent  
          practicable.  Board members serve part-time, except the  
          Chairperson, who serves as a full-time member. 

          In 2015, AB 1288 (Atkins, Chapter 586, Statutes of 2015) added  
          two additional members to the board, which increased the  
          membership from 12 to 14.  The new members are appointed by the  
          Senate Committee on Rules and the Speaker of the Assembly, and  
          must work directly with pollution-burdened and vulnerable  
          communities. 

          The California Global Warming Solutions Act of 2006. The  
          California Global Warming Solutions Act of 2006 (referred to as  
          AB 32) requires the ARB to determine the 1990 statewide (GHG)  
          emissions level, to approve a statewide GHG emissions limit  
          equivalent to that level that will be achieved by 2020, and to  
          adopt GHG emissions reductions measures by regulation. ARB is  
          authorized to include the use of market-based mechanisms to  
          comply with the regulations. Under this authority, the ARB  
          initiated the cap-and-trade program. All monies, except for  
          fines and penalties, collected pursuant to the cap-and-trade  
          program are deposited in the Greenhouse Gas Reduction Fund  
          (GGRF).  Existing law requires that the GGRF only be used to  
          facilitate the achievement of reductions of GHG emissions  








          AB 197 (Eduardo Garcia)                                Page 2 of  
          ?
          
          
          consistent with AB 32.


          Proposed Law:  
            This bill:  

          1) Establishes the Joint Legislative Committee on Climate Change  
             Policies, consisting of three members of the Senate and three  
             members of the Assembly, to ascertain facts and make  
             recommendations to the Legislature concerning the state's  
             climate change programs and policies.

          2) Requires ARB to consider adopting measures to achieve the  
             statewide GHG emissions limit based on the following  
             priority:

             a)    Measures that result in direct GHG emissions reductions  
                from large stationary sources, such as refineries, and the  
                transportation sector in the most technologically feasible  
                and cost effective manner possible that accounts for the  
                societal costs of GHG emissions.

             b)    Measures that result in direct reductions in GHG  
                emissions from sources other than large stationary sources  
                and transportation in the most technologically feasible  
                and cost effective manner possible that accounts for the  
                societal costs of GHG emissions.

          3) Requires ARB to rank GHG emission reduction measures based on  
             the reductions in GHG emissions, criteria pollutants, toxic  
             air contaminants, and cost-effectiveness.

          4) Requires ARB to make all data related to the above ranking  
             available to the public and present the rankings annually at  
             a regular ARB meeting.

          5) Establishes six-year terms for voting members of ARB, and  
             specifies that a voting member may be reappointed upon  
             expiration of their term.

          6) Specifies that a member of ARB, whose appointment satisfies  
             local air district membership requirements for ARB's makeup,  
             cannot be a member of ARB effective immediately if they cease  
             to hold the qualifying membership of a local air district.








          AB 197 (Eduardo Garcia)                                Page 3 of  
          ?
          
          

          7) Requires that two Legislative members serve as ex-officio,  
             nonvoting members of ARB, with one member appointed by the  
             Senate Committee on Rules, and the other member appointed by  
             the Speaker of the Assembly.  

          8) Provides that the provisions of this bill are only operative  
             if SB 32 (Pavley) is enacted and becomes law on or before  
             January 1, 2017.


          Related  
          Legislation:  SB 32 (Pavley) requires ARB to approve a statewide  
          GHG emissions limit of 40% below the 1990 GHG emissions level to  
          be achieved by 2030. This bill is pending consideration in  
          Assembly Appropriations.


          Staff  
          Comments:1)   

          Purpose of Bill.  According to the author, "In order for  
          California to remain an economic and environmental leader the  
          state will need to also be a leader on issues related to equity.  
          Placing the health and economic impacts of climate policy on  
          vulnerable populations second will stunt the state's prosperity.  
          A great degree of transparency and investment in California's  
          environmentally and socioeconomically disadvantaged populations  
          has the potential to yield significant climate, economic, public  
          health and quality of life benefits while knocking down barriers  
          to opportunity." 

          ARB Costs. This bill adds two ex officio members to the ARB.  
          According to the ARB, the hearing room dais is not large enough  
          to accommodate two more board members.  The ARB would have to  
          enlarge the dais and purchase equipment to accommodate the two  
          new ex officio members.  This construction would take five to  
          six months.  The addition of these two members would also  
          increase workload for the board liaison, who provides  
          administrative support to the Board including scheduling  
          meetings and member briefings, tracking ex parte communications,  
          and developing member packets.  Due to the addition of two  
          members last year and the two additional members required under  
          this bill, the ARB will likely have to hire another liaison.  








          AB 197 (Eduardo Garcia)                                Page 4 of  
          ?
          
          

          The ARB would also incur costs to compile the pollutant  
          reductions and co-benefits data for existing GHG reduction  
          measures from information available in the Initial Statement of  
          Reasons documents and rank the measures pursuant to the  
          requirements of the bill.

          Contingent enactment. AB 197 (E. Garcia) contains contingent  
          enactment language with SB 32 (Pavley), currently in the  
          Assembly Appropriations Committee, and will only become  
          operative if SB 32 is enacted. 






                                      -- END --