BILL ANALYSIS Ó
AB 678
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ASSEMBLY THIRD READING
AB
678 (O'Donnell)
As Amended May 28, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+----------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | |Cristina Garcia, | |
| | |Hadley, Harper, | |
| | |McCarty, Rendon, | |
| | | | |
| | | | |
| | |Mark Stone, Wood | |
| | | | |
|----------------+------+--------------------+----------------------|
|Transportation |16-0 |Frazier, Achadjian, | |
| | |Baker, Bloom, Chu, | |
| | |Daly, Dodd, Eduardo | |
| | |Garcia, Gomez, Kim, | |
| | |Linder, Medina, | |
| | |Melendez, Nazarian, | |
| | |O'Donnell, Santiago | |
| | | | |
|----------------+------+--------------------+----------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
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| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Requires the Air Resources Board (ARB), in conjunction
with the California Energy Commission (CEC), to develop the Energy
Efficient Ports Program (EEPP), as specified, and requires ARB to
develop guidelines for implementation.
EXISTING LAW:
1)Requires ARB, pursuant to California Global Warming Solutions
Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to
adopt a statewide greenhouse gas (GHG) emissions limit
equivalent to 1990 levels by 2020 and adopt regulations to
achieve maximum technologically feasible and cost-effective GHG
emission reductions. AB 32 authorizes ARB to permit the use of
market-based compliance mechanisms to comply with GHG reduction
regulations, once specified conditions are met.
2)Establishes the Greenhouse Gas Reduction Fund (GGRF) and
requires all moneys, except for fines and penalties, collected
by ARB from the auction or sale of allowances pursuant to a
market-based compliance mechanism (i.e., the cap-and-trade
program adopted by ARB under AB 32 to be deposited in the GGRF
and available for appropriation by the Legislature.
3)Establishes the GGRF Investment Plan and Communities
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Revitalization Act [AB 1532 (John A. Pérez), Chapter 807,
Statutes of 2012] to set procedures for the investment of GHG
allowance auction revenues. AB 1532 authorizes a range of GHG
reduction investments and establishes several additional policy
objectives.
4)Requires the investment plan to allocate a) a minimum of 25% of
the available moneys in the GGRF to projects that provide
benefits to identified disadvantaged communities and b) a
minimum of 10% of the available moneys in the GHGRF to projects
located within identified disadvantaged communities [SB 535 (De
León), Chapter 830, Statutes of 2012].
This Bill:
1)Requires ARB and CEC to develop the EEPP to fund energy
efficiency projects that help reduce emissions of GHG and air
pollutants at public ports.
2)Specifies eligible port projects include, but are not limited
to:
a) Installation of renewable technologies at marine
terminals, warehouses and other freight facilities.
b) Replacement of conventional lighting with LED lighting.
c) Installation of cold ironing or shorepower equipment to
reduce diesel auxiliary engine emissions from ships at port,
beyond actions required by regulations.
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d) Deployment of zero and near-zero emission vehicles and
infrastructure technologies.
e) Other projects that reduce grid-based energy demand from
cargo handling operations at public seaports.
3)Requires ARB to develop guidelines for EEPP implementation that
are consistent with AB 32, AB 1532 and SB 535.
4)Authorizes EEPP to use GGRF funds appropriated to ARB for
purposes of reducing GHG emissions through energy efficiency,
clean and renewable energy generation, distributed renewable
energy generation, transmission and storage, and other related
actions.
FISCAL EFFECT: According to the Assembly Appropriations Committee:
1)Unknown cost pressures, likely in the tens of millions of
dollars, on the GGRF to fund the EEPP.
2)Increased costs to ARB of approximately $1.5 million (GGRF) to
develop and implement the program and calculate GHG benefits.
3)Increased costs, likely in the $150,000 range (GGRF) for CEC to
provide consultation.
COMMENTS: The 2014-15 Budget Act allocates cap-and-trade revenues
for the 2014-15 Fiscal Year and establishes a long-term plan for
the allocation of cap-and-trade revenues beginning in Fiscal Year
2015-16. The Budget continuously appropriates 35% of
cap-and-trade funds for investments in transit, affordable
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housing, and sustainable communities. Twenty-five percent of the
revenues are continuously appropriated to continue the
construction of high-speed rail. The remaining 40% will be
appropriated annually by the Legislature for investments in
programs that include low-carbon transportation, energy efficiency
and renewable energy, and natural resources and waste diversion.
In December of 2007, ARB approved an early action item aimed
towards reducing the maritime industry's carbon footprint. The
"Airborne Toxic Control Measure for Auxiliary Diesel Engines
Operated on Ocean-Going Vessels At-Berth in a California Port"
Regulation, commonly referred to as the At-Berth Regulation,
directs vessels docked at-berth in California ports to use shore
power instead of running their onboard diesel engines. The ship's
power load is seamlessly transferred to a shore side power supply
without disruption to onboard services, eliminating the negative
side-effects of auxiliary engine combustion. The regulation
specifically requires at least 50% of the vessels docked at-berth
to utilize shore power in 2014, eventually reaching 70% in 2017,
and 80% by 2020. As a result, more and more vessels are demanding
larger quantities of electrical power.
Analysis Prepared by:
Lawrence Lingbloom / NAT. RES. / (916) 319-2092
FN:
0000847
AB 678
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