BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 1496
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|Author: |Thurmond |
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|Version: |5/6/2015 |Hearing |7/1/2015 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Rebecca Newhouse |
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SUBJECT: Methane emissions.
ANALYSIS:
Existing law:
1) Under the California Global Warming Solutions Act of 2006
(Health and Safety Code (HSC) §38500 et seq.):
a) Defines methane, CO2, and other chemicals as a
greenhouse gas (GHG);
b) Requires the California Air Resources Board (ARB), to
determine the 1990 statewide GHG emissions level, and
approve a statewide GHG emissions limit that is equivalent
to that level, to be achieved by 2020;
c) Requires ARB to adopt GHG emissions reductions measures
by regulation to achieve the 2020 GHG limit;
d) Requires ARB to adopt regulations to require the
reporting and verification of statewide GHGs.
2) Requires ARB to complete, by January 1, 2016, a comprehensive
strategy to reduce emissions of short-lived climate
pollutants in the state.
3) Requires ARB to adopt state ambient air quality standards for
California in consideration of public health, safety, and
welfare, and requires that the standards relating to health
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effects shall be based upon the recommendations of the Office
of Environmental Health Hazard Assessment (OEHHA). (HSC
§39606)
4) Requires local air districts to adopt and enforce rules to
achieve and maintain the state and federal ambient air
quality standards in all areas affected by emissions sources
under their jurisdiction. (HSC §40001)
This bill requires ARB to do all of the following:
1) Monitor and measure high-emission methane hot spots in the
state using the best available scientific and technical
methods, in consultation with local air districts that
monitor methane.
2) Perform a life-cycle GHG analysis of natural gas produced and
imported into the state using the best available scientific
and technical methods.
3) Update GHG emission factors for electric generation with
natural gas and the use of natural gas as a transportation
fuel.
4) Review the most recent available scientific data and reports
on atmospheric reactivity of methane as a precursor to the
formation of photochemical oxidants and evaluate whether
methane should be reclassified as a contributor to the
formation of air pollution.
Background
1) Methane and short-lived climate pollutants. Methane (or CH4)
is the principal component of natural gas and is also
produced biologically
under anaerobic conditions in ruminant animals, landfills and
waste handling. Methane is termed a short-lived climate
pollutant (SLCP), as it has a much shorter lifetime in the
atmosphere than CO2, but has a much higher global warming
potential. According to the US Environmental Protection
Agency (US EPA), methane is 20-30 times more effective than
CO2 in trapping heat in the atmosphere over a 100-year
period. SCLPs, including methane, are responsible for 30-40%
of global warming to date.
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2) Methane sources. Atmospheric methane concentrations have
been increasing as a result of human activities related to
agriculture, fossil fuel extraction and distribution, and
waste generation and processing. According to ARB's updated
scoping plan, the state's largest anthropogenic
methane-producing sources are enteric fermentation
(eructation, or belching by animals), manure management,
landfills, natural gas transmission, and wastewater
treatment. Methane emissions also come from
non-anthropogenic sources such as wetlands, oceans, and
forests. Methane gas from oil and gas production and
distribution is a growing source of emissions in many
countries, including the United States, due to increased
exploration and use of natural gas for energy.
Fugitive methane. A growing body of evidence suggests that
the US EPA has underestimated methane emissions nationwide,
possibly by as much as 50%. Additionally, several recent
analyses of atmospheric measurements suggest that actual
methane emissions in the state may be 30 to 70% higher than
estimated in ARB's emission inventory.
SB 605 (Lara, Chapter 523, Statutes of 2014) directs ARB to
develop a comprehensive short-lived climate pollutant
strategy by January 1, 2016. In developing the strategy, ARB
is required to complete an inventory of sources and emissions
of SLCPs in the state based on available data, identify
research needs to address data gaps and existing and
potential new control measures to reduce emissions. In May
of this year, ARB released a short-lived climate pollutant
concept paper.
According to the concept paper, methane is the second largest
component of GHG emissions in California, and methane
emissions are on the rise. The paper notes that California
"has taken important steps to reduce methane emissions from
all of its major sources, but more needs to be done to more
fully control methane emissions, especially from organic
waste streams going to landfills and at dairies." The
concept paper identifies the following steps as necessary to
significantly reduce methane emissions in the state:
Minimize fugitive methane emissions from all
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infrastructure and equipment;
Effectively eliminate disposal of organic
materials at landfills;
Significantly reduce methane emissions from
dairies;
Maximize resource recovery from wastewater
treatment facilities.
The concept paper also notes that, "coordinated research
efforts between ARB and the California Energy Commission to
refine emission estimates have led to the development of the
only subnational methane monitoring network in the world. In
addition, researchers at ARB and at NASA's Jet Propulsion
Laboratory are currently collaborating to identify large 'hot
spot' methane sources in the San Joaquin Valley."
1) AB 32 and methane. ARB has broad authority to regulate
methane as a GHG under AB 32 and create programs and
implement measures to reduce GHGs in the state to achieve the
statewide 2020 GHG emissions goal.
ARB has implemented several programs that target methane
emissions, or provide incentives for the use of renewably
generated methane.
Mandatory GHG reporting: AB 32 requires ARB to monitor and
verify GHG emissions from electricity production and
manufacturing throughout the state, as well as suppliers of
fuel (including natural gas) and operators of natural gas
pipelines, if the amount of fuel combusted in the state is
over 10,000 metric tons of CO2 equivalents. Fugitive GHG
emissions from landfills and emissions from agriculture are
exempt from the reporting requirement.
Methane from landfills: Effective June 17, 2010, ARB approved
a regulatory measure as an AB 32 discrete early action
measure that requires owners and operators of certain
uncontrolled municipal solid waste landfills to install gas
collection and control systems, and requires existing and
newly installed gas and control systems to operate in an
optimal manner.
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Cap-and-Trade Program. Pursuant to AB 32, ARB adopted a
cap-and-trade program that places a "cap" on aggregate GHG
emissions from large GHG emitters, which are responsible for
approximately 85% of the state's GHG emissions. The cap
declines over time, eventually reaching the target emission
level in 2020. Large emitters must obtain compliance
instruments equal to their emissions in that period.
Compliance instruments include allowances and offsets, where
allowances are generated by the state in an amount equal to
the cap, and offsets result from emissions reductions
achieved in an uncapped sector and are quantified and
verified using an ARB approved compliance offset protocol.
Although GHG emissions, including methane, from landfills and
agricultural sources are not covered under the cap, ARB has
adopted offset protocols for five project types including
dairy digesters to capture fugitive methane emissions, and an
offset protocol for capturing would-be fugitive emissions of
methane from coal mines.
LCFS: Pursuant to their authority under AB 32, ARB adopted
the LCFS in 2009, which requires transportation fuel
suppliers in the state to meet certain average annual carbon
limitations. The program ultimately requires a 10% reduction
in the carbon intensity of a particular fuel by 2020. The
carbon intensity measures the net carbon emissions of the
entire life-cycle of the fuel, including carbon emitted
during production, refining, and transportation, and
conversion of the fuel to useable energy. Fuel suppliers can
meet the standard by reducing the carbon intensity of their
fuels, or by purchasing credits from other suppliers of other
fuels that have carbon intensities below state requirements.
Methane created from organic feedstock, or biomethane,
already meets the 10% reduction requirement in 2020, the fuel
qualifies for credits under the program.
2) Leaks from natural gas system. In an effort to address
systemic natural gas leaks from an aging infrastructure as
well as address climate impacts due to methane, SB 1371
(Leno, Chapter 525, Statutes of 2014) requires the Public
Utilities Commission (PUC), in consultation with ARB, to open
a proceeding to adopt rules and procedures that minimize
natural gas leaks from PUC-regulated gas pipeline facilities.
SB 1371 requires the rules and procedures include procedures
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for the development of metrics to quantify the volume of
emissions from leaking gas pipeline facilities, and for
evaluating and tracking leaks geographically and over time
that may be incorporated into ARB's mandatory GHG emission
reporting. SB 1371 also requires, to the extent feasible,
the owner of each commission-regulated gas pipeline facility
that is an intrastate transmission or distribution line to
calculate and report to the commission and ARB a baseline
systemwide leak rate, along with any data and computer models
used in making that calculation.
3) Ambient air quality standards, ozone, and methane. Smog is
formed from the reaction of oxides of nitrogen (NOx) with
volatile organic compounds (VOCs) to produce ground-level
ozone, or tropospheric ozone. Ozone has a number of negative
health effects including irritated respiratory system,
reduced lung function, aggravated asthma and inflammation and
damage of the lining of the lung. Active children are the
group at highest risk from ozone exposure. In addition to
negative public health impacts, ozone itself is a powerful
SCLP.
Under the federal Clean Air Act, the US EPA established
National Ambient Air Quality Standards (NAAQS) that apply for
outdoor air throughout the country. These standards exist
for several air pollutants due to their negative impact on
public health above specified concentrations, including
ozone. ARB has also adopted state ambient air quality
standards for various air pollutants that are, in some cases,
more stringent than federal standards. Local air districts
are required to adopt and enforce rules to achieve and
maintain the state and federal ambient air quality standards.
To comply with the standards for ozone, local air districts
have regulations limiting emissions of NOx and VOCs for
stationary sources located in their jurisdiction. These
local air district requirements have cut in half the
emissions of VOCs and NOX, and significantly reduced ozone
concentrations throughout California. However, ARB's
short-lived climate pollutant concept paper notes that,
"because the regulatory definition of VOCs does not include
methane due to its relatively low reactivity and lack of
impact on regional ozone production, methane emissions have
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not fallen at similar rates as VOCs over the past decades."
The concept paper also states that although methane is not a
large contributor to regional ground-level ozone levels,
regional methane emissions which are fairly well-mixed in the
atmosphere contribute to the global abundance of methane,
which in turn contributes to global background levels of
ozone. About two-thirds of the rise in global levels of
tropospheric background ozone can be attributed to methane
emissions.
Comments
1) Purpose of Bill. According to the author, "California is an
established leader in cutting edge climate policy. From the
renewable portfolio standard to the first-of-its-kind
cap-and-trade carbon reduction system, California has
pioneered policies to reduce human and industrial impacts on
the climate and our environment. However, the state has not
yet established comprehensive policies or monitoring systems
to regulate methane emissions, a volatile short-lived climate
pollutant, the emissions rates of which continue to grow
unchecked. Without extra effort to reduce methane and other
short-lived climate pollutants, our ambitious goals and
measures to curb carbon dioxide emissions may not be
sufficient to slow the progress of climate change."
2) In-state versus out-of-state leaks. The bill attempts to
address several concerns with methane emissions, including
data gaps concerning hot spot sources in the state, and the
accounting of GHG emissions from natural gas coming in from
out-of-state. The latter concern arises from recent evidence
of systemic underestimates of natural gas emissions
nationwide due to leaks in natural gas system infrastructure.
Since California imports 90% of its natural gas, more
accurate life-cycle GHG emission estimates are an important
step towards better understanding the climate impacts of
these imports. However, these updated analyses of life-cycle
emissions may be somewhat limited in the data or information
available, as many of these leaks occur outside the state's
jurisdiction.
Additionally, pursuant to AB 1257 (Bocanegra, Chapter 749,
Statutes of 2013) the CEC is working on an evaluation of
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life-cycle GHG emissions from the production, transportation,
and use of natural gas as a component of their report on
maximizing benefits obtained from natural gas as an energy
source.
In order to account for the fact that ARB may need to
consult, or work with, various entities to obtain the
necessary information, the bill should be amended to require
ARB to consult with federal and state agencies, independent
scientific experts, and any other appropriate entities, to
gather or acquire the necessary information for purpose of
carrying out a life-cycle greenhouse gas emission analysis of
natural gas produced and imported into the state.
3) Emission factors? The bill requires ARB to update GHG
emission factors for electric generation with natural gas.
It is unclear what "emission factors" refers to in regard to
electric generation, and which subset of ARB regulations and
programs this might impact.
Instead of referencing emission factors, an amendment is
needed to require ARB to update relevant policies and
programs based on updated life-cycle analysis information for
imported natural gas and in-state monitoring of methane
hot-spots required by AB 1496.
4) Methane as a contributor to air pollution. Methane is not
regulated by ARB and local air districts as a contributor to
regional ozone levels, since they note that methane reacts
relatively slowly and is easily dispersed, and is thought to
contribute primarily to background levels of ozone, instead
of regional ground-level ozone. This bill would require that
ARB review, in consultation with independent scientific
experts, recent data on the atmospheric reactivity of methane
as a precursor to the formation of photochemical oxidants and
evaluate whether methane should be reclassified as a
contributor to the formation of air pollution.
As ARB has cited studies linking methane emissions to
background tropospheric ozone levels in their recent reports,
it is likely that the result of a review of current
scientific information, as required in this bill, will
reaffirm that finding. However, an evaluation of recent data
on methane atmospheric reactivity may also provide other
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insights or a more comprehensive understanding of how methane
emissions throughout the state and elsewhere affect ozone
levels in California.
5) Aligning with SB 605. As noted in the background, SB 605
(Lara) requires ARB to complete a short-lived climate
pollutant strategy by January 1, 2016. This bill gives ARB
added authority to monitor and measure methane hot-spots
within the state, thereby providing the state with more
accurate information regarding significant methane sources.
Better information regarding what sources are acting as
hot-spots and information on where those sources are located
as a result of this bill may complement efforts put forth in
the short-lived climate strategy to prioritize, target and
reduce those emissions.
Related/Prior Legislation
SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) requires
ARB to develop a short-lived climate pollutant strategy by
January 1, 2016.
SB 1371 (Leno, Chapter 525, Statutes of 2014) requires PUC to
open a proceeding to adopt rules and procedures that minimize
natural gas leaks from PUC-regulated gas pipeline facilities,
with the goal of reducing GHG emissions.
AB 1257 (Bocanegra, Chapter 749, Statutes of 2013) requires CEC,
beginning November 2015, to report on strategies to maximize
benefits from natural gas as an energy source, and include an
evaluation of the benefits and economic cost of proposed
strategies, including evaluating the life-cycle greenhouse gas
emissions from production, transportation, and use of natural
gas, in consultation with ARB.
SOURCE: Clean Power Campaign
SUPPORT:
Californians Against Waste
California League of Conservation Voters
Coalition for Clean Air
West Marin Environmental Action Committee
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OPPOSITION:
Independent Energy Producers Association
ARGUMENTS IN
SUPPORT: Supporters state that methane is a potent
greenhouse gas with 20 to 30 times the warming power of carbon
dioxide over a
100-year period. Supporters argue that despite the fact that ARB
has recognized
the greenhouse gas potential of short-lived climate pollutants
and the importance of
reducing methane, methane has been overlooked in the state's
greenhouse gas
reduction policies to date. Supporters also state that methane
helps create ozone,
which impacts local air quality and community health.
ARGUMENTS IN
OPPOSITION: The Independent Energy Producers
Association (IEPA) states that it is unclear what "emission
factors" will be updated
as a result of the life-cycle analysis required by the bill, and
that IEPA has
concerns with any attempt to create new emission factors or
standards by which
natural gas generating facilities will have to comply. IEPA is
concerned that AB
1496 presupposes outcomes from natural gas electric generators
before the
research has been conducted, and that multiple sectors of the
economy, not just
electric generation, are responsible for methane emissions.
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