BILL ANALYSIS Ó AB 1496 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1496 (Thurmond) - As Amended May 6, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Air Resources Board (ARB) to undertake activities and analyses relating to methane gas emissions. Specifically, this bill requires ARB to: AB 1496 Page 2 1)In consultation with local air districts that monitor methane, undertake monitoring and measurements of high emission methane "hot spots" as a short-lived climate pollutant using the best available scientific and technical methods. 2)Carry out life cycle greenhouse gas emissions (GHG) analysis of natural gas produced and imported into California, using the best available scientific and technical methods. 3)Update GHG factors for natural gas-fueled electric power generation and the use of natural gas as a transportation fuel. 4)Review, in consultation with independent scientific experts, the most recent available scientific data and reports on the atmospheric reactivity of methane as a precursor to the formation of photochemical oxidant and evaluate whether methane should be reclassified as a contributor to the formation of air pollution. FISCAL EFFECT: 1)Increased annual staffing costs of $525,000 and contract costs of $700,000 for the ARB to monitor and measure methane hot spots (Cost of Implementation Fund). 2)Increased annual staffing costs of $350,000 and contract costs of $200,000for the ARB to perform natural gas life cycle GHG emissions analyses and update GHG factors for natural gas transportation fuels (Cost of Implementation Fund). COMMENTS: AB 1496 Page 3 1)Rationale. Methane is a gas that is emitted from both natural and human sources. Its concentration in the global atmosphere has more than doubled since the beginning of the Industrial Revolution. Methane is a short-lived climate pollutant (SLCP) with a lifetime of only about 12 years when released into the atmosphere. It is an extremely potent GHG, with 20-30 times the warming power of carbon dioxide over a 100-year period (and more than 80 times over a 20-year period). Methane also impacts local air quality and community health through its participation in the formation of ozone. According to the author, it is imperative that methane leakage is studied without delay because of its proven negative impact on both snow pack levels and local air pollution. This bill requires ARB to undertake activities and analyses and determine whether methane should be reclassified as a contributor to the formation of air pollution. 2)Background. AB 32 required ARB to adopt a statewide 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 requires ARB to prepare and approve a scoping plan at five-year intervals. The first AB 32 scoping plan, adopted by ARB in 2008, described the specific measures ARB and others must take to reduce statewide GHG emissions to 1990 levels by 2020. In May 2014, ARB adopted a scoping plan update. Among its provisions, the update commits ARB to developing a SLCP strategy by 2015 that will include an inventory of sources and emissions, the identification of additional research needs, and a plan for developing control measures. Additionally, SB 605 (Lara), Chapter 523, Statutes of 2014, AB 1496 Page 4 requires ARB to complete a comprehensive SLCP strategy by January 1, 2016. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081