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 --