BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 239


                                                                    Page  1





          Date of Hearing:  March 23, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 239  
          (Gallagher) - As Introduced February 5, 2015


          SUBJECT:  Greenhouse gases:  regulations


          SUMMARY:  Prohibits the Air Resources Board (ARB) from adopting  
          or amending a regulation pursuant to the California Global  
          Warming Solutions Act (AB 32).


          EXISTING LAW:  AB 32 requires ARB to adopt a statewide  
          greenhouse gas (GHG) emissions limit equivalent to 1990 levels  
          by 2020 and to adopt rules and regulations to achieve maximum  
          technologically feasible and cost-effective GHG emission  
          reductions.


          THIS BILL:  Prohibits ARB from adopting or amending a regulation  
          pursuant to AB 32.  Authorizes ARB to submit recommendations to  
          the Legislature on how to achieve the goals of AB 32.  Provides  
          that the bill does not affect the validity of regulations  
          adopted before January 1, 2016.


          FISCAL EFFECT:  Unknown


          COMMENTS:  








                                                                     AB 239


                                                                    Page  2







          1)Background.  ARB has adopted several major regulations  
            pursuant to AB 32, including the cap-and-trade program and the  
            low carbon fuel standard.  Once adopted, regulations are  
            periodically reviewed and commonly amended.  Regulations and  
            programs adopted pursuant to laws other than AB 32 are also  
            contributing significantly to AB 32's GHG reduction goals,  
            including Advanced Clean Cars (GHG standards for passenger  
            vehicles) and the Renewables Portfolio Standard.  Like other  
            state agencies, ARB is subject to policy and fiscal oversight  
            by the Legislature.  The AB 32 program and particular  
            regulations are often the subject of legislation.


            According to ARB, a total reduction of 80 million metric tons  
            (MMT), or 16% compared to business as usual, is necessary to  
            achieve AB 32's 2020 statewide limit.  Approximately 78% of  
            the reductions will be achieved through identified direct  
            regulations.  ARB proposes to achieve the balance of  
            reductions necessary to meet the 2020 limit (approximately 18  
            MMT) through the cap-and-trade regulation.  


          2)Time out?  This bill proposes to end ARB's authority to adopt  
            new regulations, as well as amend existing regulations, under  
            AB 32.  Aside from the obvious consequence of generally  
            frustrating the progression of the AB 32 program, another  
            effect would be to prevent refining and improving existing  
            regulations.  Paradoxically, amendments to existing  
            regulations are often taken up by ARB at the request of  
            regulated entities seeking to ease their compliance.


          REGISTERED SUPPORT / OPPOSITION:












                                                                     AB 239


                                                                    Page  3





          Support


          None on file




          Opposition


          None on file







          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092