BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 197|
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THIRD READING
Bill No: AB 197
Author: Eduardo Garcia (D)
Amended: 8/2/16 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 6/29/16
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
SUBJECT: State Air Resources Board: greenhouse gases
SOURCE: Asian Pacific Environmental Network
California Environmental Justice Alliance
DIGEST: This bill creates the Joint Legislative Committee on
Climate Policies and requires the Air Resources Board (ARB) to
consider adopting measures to achieve the statewide greenhouse
gas (GHG) emissions limit based on specified priorities. The
bill also requires ARB to rank all emission reduction measures
adopted, as specified, and requires that two legislative members
serve as ex-officio, nonvoting members of ARB.
ANALYSIS:
Existing law:
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1)Establishes ARB with 14 members, 12 of which are appointed by
the Governor with consent of the Senate, and two members
appointed by the Senate Committee on Rules and the Speaker of
the Assembly, respectively. Of the 12 members appointed by
the Governor, six must have specified qualifications and six
must be board members from air districts, and the two members
of the Legislature are required to be persons who work
directly with pollution-burdened and vulnerable communities.
(Health and Safety Code §39510)
2)Requires, under the California Global Warming Solutions Act of
2006 (HSC §38500 et seq.), ARB to determine the 1990 statewide
GHG emissions level and approve a statewide GHG emissions
limit that is equivalent to that level, to be achieved by
2020, and to adopt GHG emissions reductions measures by
regulation to achieve the maximum technologically feasible and
cost-effective reductions in GHG emissions in furtherance of
achieving the statewide GHG emissions limit. ARG is
authorized to include the use of market-based mechanisms to
comply with the regulations.
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
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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 rank GHG emission reduction measures based on the
reductions in GHG emissions, criteria pollutants, and toxic
air contaminants, and cost-effectiveness.
4)Requires ARB to make all data related to the above ranking
available to the public and present on the rankings annually
at a regular ARB meeting.
5)Establishes six-year terms for voting members of ARB and
authorizes voting members to serve additional terms.
6)Specifies that a member of ARB whose appointment satisfies
local air district membership requirements for ARB's makeup,
shall not be a member of ARB effective immediately if they
cease to hold the qualifying membership of a local air
district.
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.
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Background
1)Air Resources Board. ARB 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
related field; surgeon or an authority on health effects).
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 APCD, 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 six
members to the extent practicable.
AB 1288 (Atkins, Chapter 586, Statutes of 2015) added two
additional members to the board, which increased the
membership from 12 to 14, appointed by the Senate Committee on
Rules and the Speaker of the Assembly, and requires those
members be persons who work directly with pollution-burdened
and vulnerable communities.
The board members serve part-time, except the Chairperson,
who serves as a full-time member.
2)The Global Warming Solutions Act of 2006. In 2006, the Global
Warming Solutions Act of 2006, AB 32 (Núńez and Pavley,
Chapter 488, Statutes of 2006) established a statewide GHG
emissions limit by 2020. AB 32 defines GHGs as carbon
dioxide (CO2), methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride and requires ARB to
determine the 1990 statewide GHG emissions level and approve
a statewide GHG emissions limit that is equivalent to that
level, to be achieved by 2020.
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AB 32 requires ARB, among other things, to inventory GHG
emissions in California; implement regulations that achieve
the maximum technologically feasible and cost-effective
reduction of GHG emissions and impose fees for administrative
implementation costs; adopt discrete early action measures;
prepare and approve a scoping plan; convene an Environmental
Justice Advisory Committee; and appoint an economic advisory
committee to obtain recommendations for GHG reduction
measures.
The statute also specifies that ARB may include market-based
compliance mechanisms in the AB 32 regulations after
considering the potential for direct, indirect, and
cumulative emission impacts from these mechanisms, including
localized impacts in communities that are already adversely
impacted by air pollution, and must design any market-based
compliance mechanisms to prevent any increase in the
emissions of toxic air contaminants or criteria air
pollutants.
3)AB 32 Scoping Plan. Pursuant to AB 32, ARB approved the first
Scoping Plan in 2008. The Scoping Plan outlined a suite of
measures aimed at achieving 1990-level emissions, a reduction
of 80 million metric tons of CO2 (MMT CO2e).
The 2008 Scoping Plan recommended that reducing GHG emissions
from the wide variety of sources that make up the state's
emissions profile could best be accomplished through a
cap-and-trade program along with a mix of other strategies
including:
A low carbon fuel standard (LCFS);
Light-duty vehicle GHG standards;
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Expanding and strengthening existing energy efficiency
programs, and building and appliance standards;
Achieving a 33% Renewable Portfolio Standard;
Regional transportation-related GHG targets; and
Creating targeted fees on water use and high global
warming potential pollutants.
The basic design of the program, as recommended by the
original Scoping Plan, is that the combination of direct
regulatory measures and cap-and-trade is intended to achieve
the emission reduction target by 2020. Specifically, the
Scoping Plan lays out a strategy where the overall limit on
GHG emissions from most of the California economy is "capped"
through a cap-and-trade program, and direct regulations
within both capped and uncapped sectors would achieve
additional emissions reductions.
Pursuant to authority under AB 32, ARB adopted a LCFS in
2009, and a cap-and-trade program, approved on December 13,
2011.
Scoping Plan update. ARB approved an update to the Scoping
Plan on May 22, 2014. The update asserts that California is
on track to meet the near-term 2020 greenhouse gas limit and
is well positioned to maintain and continue reductions beyond
2020 as required by AB 32.
Comments
Purpose of Bill. According to the author, "In order for
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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."
Related/Prior Legislation
SB 32 (Pavley, 2016) requires ARB to approve a statewide GHG
emissions limit of 40% below the 1990 GHG emissions level to be
achieved by 2030 and specifies the bill only becomes operative
if AB 197 is enacted and becomes effective on or before January
1, 2017.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
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.
$233,000 annually (Cost of Implementation Fund) to the ARB for
staffing needs to support new board members and develop
ranking criteria.
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SUPPORT: (Unable to verify at time of writing)
Asian Pacific Environmental Network (co-source)
California Environmental Justice Alliance (co-source)
Clean Power Campaign
The Nature Conservancy
OPPOSITION: (Unable to verify at time of writing)
California Manufacturers and Technology Association
ASSEMBLY FLOOR: 55-21, 6/2/15
AYES: Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown,
Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,
Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia,
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Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez,
Low, Maienschein, McCarty, Medina, Mullin, Nazarian,
O'Donnell, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams,
Wood, Atkins
NOES: Travis Allen, Bigelow, Brough, Chang, Beth Gaines,
Gallagher, Grove, Harper, Jones, Kim, Lackey, Mathis, Mayes,
Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner,
Waldron, Wilk
NO VOTE RECORDED: Chávez, Dahle, Hadley, Linder
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
8/16/16 8:51:47
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