BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1496


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1496 (Thurmond) - As Amended May 6, 2015


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          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:  









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          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:










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          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,  








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            requires ARB to complete a comprehensive SLCP strategy by  
            January 1, 2016.








          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081