BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1496 (Thurmond) - Methane emissions.
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|Version: July 7, 2015 |Policy Vote: E.Q. 5 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 17, 2015 |Consultant: Marie Liu |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1496 would require the Air Resources Board (ARB) to
monitor, high emission methane hot spots in the state.
Fiscal
Impact:
Ongoing annual staffing costs of $350,000, and a $700,000
contract with the Jet Propulsion Lab to the Cost of
Implementation Account (special) to identify and monitor
high-emission methane hot spots.
Ongoing annual staffing costs of $350,000 and a $150,000
contract to the Cost of Implementation Account (special) to
conduct a life-cycle GHG emission analysis of natural gas
produced in and imported into the state.
Background: The California Global Warming Solutions Act of 2006 (referred
to as AB 32, HSC §38500 et seq.) requires the California Air
Resources Board (ARB) to determine the 1990 statewide greenhouse
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gas (GHG) emissions level, to approve a statewide GHG emissions
limit equivalent to that level that will be achieved by 2020,
and to adopt GHG emissions reductions measures by regulation.
GHGs are defined as methane, carbon dioxide, and other
chemicals.
Existing law also requires the ARB to develop a comprehensive
strategy to reduce emissions of short-lived climate pollutants
(SLCPs) in the state. SLCPs are defined in HSC §39730 as an
agent that has a relatively short lifetime in the atmosphere,
from a few days to a few decades, and a warming influence on the
climate that is more potent than carbon dioxide. Examples of
SLCPs listed on ARB's webpage include black carbon, methane, and
fluorinated gases.
In developing the comprehensive strategy on short-lived climate
pollutants, the ARB is required to complete a statewide
inventory of SLCPs based on available data, identify research
needs to address data gaps, identify new control measures to
reduce emissions, prioritize the development of new measures for
SLCPs that offer co-benefits, and to coordinate with other
agencies needed for comprehensive strategy.
Methane is the principal component of natural gas and is also
biologically produced under anaerobic conditions in ruminant
animals, landfills, and waste handling. 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
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.
Proposed Law:
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This bill would require the ARB to monitor and measure
high-emission methane hot spots in the state.
The ARB would also be required to consult with other federal and
state agencies, for the purpose of carrying out a life-cycle GHG
emission analysis of natural gas produced and imported into the
state.
The ARB would be generally required to update relevant policies
and programs to incorporate information gathered from its
monitoring or life-cycle analysis of natural gas.
The ARB would also be charged with evaluating whether methane
should be reclassified as a contributor to the formation of air
pollution.
Related
Legislation: SB 605 (Lara) Chapter 523, Statutes of 2014
directed ARB to develop a comprehensive SLCP strategy by January
1, 2016.
Staff
Comments: To conduct the monitoring of methane hot-spots, the
ARB indicates that it will need to contract with the National
Aeronautics and Space Administration's (NASA's) Jet Propulsion
Laboratory to conduct statewide surveys to identify methane hot
spots. According to the ARB, the Jet Propulsion Laboratory is
the only entity in the world with the technology and expertise
needed to make aerial surveys. An ongoing contract with the lab
for this work is estimated to be $700,000 annually. In addition
to the contract, ARB anticipates needing two permanent positions
at an annual cost of $350,000 for monitoring hot-spots.
To conduct a life-cycle GHG emission analysis gas of natural
gas, ARB anticipates needing an additional two permanent
positions at $350,000 annually plus a contract with annual costs
of $150,000. Staff notes that ARB has already conducted a
life-cycle assessment for natural gas as part of its Low Carbon
Fuel Standard (LCFS) Program. The LCFS life-cycle analysis uses
national average data for approximate information such as
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pipeline distance and leak rates. However, this bill would
require life-cycle analysis of natural gas that is specifically
produced in or imported into the state, thus requiring more
specific information. The ARB notes that California receives
natural gas from multiple states, each of which has its own
regulations on natural gas. Since the others states' regulations
are evolving, like our own, the ARB anticipates that the
life-cycle analysis will need to be constantly updated. ARB's
costs for developing the California specific life-cycle analysis
of natural gas would also include the costs necessary to update
relevant policies and programs with the information obtained.
ARB estimates that the costs to consider reclassifying methane
as a contributor to the formation of air pollution would be
minor and absorbable.
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