BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 197|
          |Office of Senate Floor Analyses   |                              |
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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,  








                                                                     AB 197  
                                                                     Page 9



            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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