BILL ANALYSIS Ó
AB 1288
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Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 1288
(Atkins) - As Introduced February 27, 2015
SUBJECT: California Global Warming Solutions Act of 2006:
regulations
SUMMARY: Eliminates the December 31, 2020 limit on
applicability of a market-based mechanism to reduce greenhouse
gas (GHG) emissions that may be adopted by the Air Resources
Board (ARB).
EXISTING LAW, pursuant to the California Global Warming
Solutions Act (AB 32):
1)Requires ARB to adopt a statewide 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.
2)Authorizes ARB to permit the use of market-based compliance
mechanisms, applicable from January 1, 2012 to December 31,
2020, to comply with GHG reduction regulations, once specified
conditions are met. ARB has adopted a cap-and-trade
regulation which applies to large industrial facilities and
electricity generators emitting more than 25,000 metric tons
of CO2 equivalent per year, as well as distributors of fuels,
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including gasoline, diesel and natural gas.
FISCAL EFFECT: Unknown
COMMENTS:
1)Background. 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.
Transportation fuels are included in cap-and-trade beginning
January 1, 2015.
2)Author's statement:
The cap and trade program was officially launched in 2013.
The cap and trade program provides a mechanism for specific
industry sectors with high GHG emissions to meet their GHG
reduction requirements in a cost-effective manner. Through
the program, an overall limit is placed on carbon emissions
(the cap) and, in turn, regulated entities can acquire
allowances through a variety of mechanisms including
participating in carbon auctions to purchase allowances.
Entities can use allowances to help meet their GHG
reduction requirements or trade allowances to others if
they are able to cost-effectively lower their own emissions
(the trade).
Each year the cap is reduced and only a specific amount of
allowances are available for purchase. Funding generated
from the sale of allowances is invested into programs that
reduce GHG emissions.
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Currently, the cap and trade program developed by ARB only
includes emissions reduction requirements through 2020.
California has made great strides in meeting its GHG
reduction targets; however, there is still more work to be
done. The cap and trade program has proven to be an
effective and complementary strategy for meeting the
state's GHG reduction targets.
AB 1288 recognizes and clarifies the importance of
continuing ambitious GHG emissions reductions beyond 2020
and the important on-going role of market-based mechanisms
in that effort.
REGISTERED SUPPORT / OPPOSITION:
Support
American Lung Association in California
Audubon California
California League of Conservation Voters
Californians Against Waste
Environment California
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Environmental Defense Fund
Natural Resources Defense Council
ReLeaf
Sierra Club California
The Nature Conservancy
Union of Concerned Scientists
Opposition
Central Coast Forest Association
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092
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