BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1496|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 1496
Author: Thurmond (D), et al.
Amended: 9/2/15 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-1, 7/1/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Bates
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 57-18, 6/2/15 - See last page for vote
SUBJECT: Methane emissions
SOURCE: Clean Power Campaign
DIGEST: This bill requires the California Air Resources Board
(ARB) to 1) monitor high-emission methane hot-spots in the
state, 2) consult with specified entities to gather information
for purposes of carrying out life-cycle GHG emissions analyses
of natural gas imports, 3) update relevant policies and programs
based on those updated life-cycle analyses, and 4) review
scientific information on atmospheric reactivity of methane as a
precursor to the formation of photochemical oxidants.
Senate Floor Amendments of 9/2/15 specify that ARB is
authorized, and not required, to evaluate whether methane should
be reclassified as a contributor to the formation of air
pollution, upon completion of a review of the most recent
available scientific information.
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ANALYSIS:
Existing law:
1)Provides that under the California Global Warming Solutions
Act of 2006 (Health and Safety Code (HSC) §38500 et seq.):
a) Defines methane, carbon dioxide (CO2), and other
chemicals as a greenhouse gas (GHG);
b) Requires the 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 the ARB to adopt GHG emissions reductions
measures by regulation to achieve the 2020 GHG limit; and
d) Requires the ARB to adopt regulations to require the
reporting and verification of statewide GHGs.
1)Requires the ARB to complete, by January 1, 2016, a
comprehensive strategy to reduce emissions of short-lived
climate pollutants (SLCPs) in the state. (HSC §39730)
This bill requires the 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, using the best available and cost-effective
scientific and technical methods.
2)Consult with specified entities to gather or acquire the
necessary information for the purpose of carrying out a
life-cycle GHG emissions analysis of natural gas produced and
imported into the state using the best available and
cost-effective scientific and technical methods.
3)Update relevant policies and programs to incorporate the
updated life-cycle GHG emissions analysis of natural gas
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produced and imported into the state.
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 authorizes ARB, upon
completion of that review, to 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 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. SLCPs, including methane,
are responsible for 30-40% of global warming to date.
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 the 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 the ARB's emission inventory.
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SB 605 (Lara, Chapter 523, Statutes of 2014) directs the ARB
to develop a comprehensive SLCP strategy by January 1, 2016.
In developing the strategy, the 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, the ARB released a SLCP
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 several steps as necessary to significantly reduce
methane emissions in the state, including a) minimizing
fugitive methane emissions from all infrastructure and
equipment, b) effectively eliminate disposal of organic
materials at landfills, c) significantly reduce methane
emissions from dairies, and d) maximizing 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."
3)AB 32 and methane. The 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.
The ARB has implemented several programs that target methane
emissions, or provide incentives for the use of renewably
generated methane.
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Mandatory GHG reporting. AB 32 requires the 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, the 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.
Cap-and-trade program. Pursuant to AB 32, the 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, the 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.
Low Carbon Fuel Standard (LCFS). Pursuant to their authority
under AB 32, the 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
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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.
4)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 the ARB, to open a
proceeding to adopt rules and procedures that minimize natural
gas leaks from PUC-regulated gas pipeline facilities. SB 1371
also requires the rules and procedures include procedures 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 the ARB's mandatory GHG emission reporting.
5)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 SLCP.
Under the federal Clean Air Act, the US EPA established
National Ambient Air Quality Standards 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. The 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
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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, the ARB's SLCP 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 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.
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."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
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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.
SUPPORT: (Verified9/3/15)
Clean Power Campaign (source)
Azul
Californians Against Waste
California League of Conservation Voters
Clean Water Action
Coalition for Clean Air
Environment California
Environmental Working Group
Natural Resources Defense Council
Sierra Club California
West Marin Environmental Action Committee
OPPOSITION: (Verified9/3/15)
Agricultural Council of California
Association of California Egg Farmers
California Chamber of Commerce
California Dairies, Inc.
California Farm Bureau Federation
California Grain and Feed Association
California Independent Petroleum Association
California Manufacturers and Technology Association
Independent Energy Producers Association
Milk Producers Council
Pacific Egg and Poultry Association
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Western United Dairymen
ARGUMENTS IN SUPPORT: Supporters state that methane is a
potent GHG with 20 to 30 times the warming power of CO2 over a
100-year period. Supporters argue that despite the fact that
ARB has recognized the GHG potential of SLCP and the importance
of reducing methane, methane has been overlooked in the state's
GHG reduction policies to date. Supporters also state that
methane helps create ozone, which impacts local air quality and
community health.
ARGUMENTS IN OPPOSITION: The California Chamber of Commerce,
the California Farm Bureau Federation, the California
Manufacturers and Technology Association, and the California
Independent Petroleum Association state that they are in
opposition because AB 1496 is duplicative, as ARB is already
conducting a number of the research efforts identified in this
bill, and because AB 1496 presupposes the outcome of a
recommended study required by this bill by specifying the
conclusion that should be assessed.
ASSEMBLY FLOOR: 57-18, 6/2/15
AYES: Alejo, Baker, Bloom, Bonilla, Bonta, Brown, Burke,
Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh,
Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia,
Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger
Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine, Lopez,
Low, Maienschein, McCarty, Medina, Mullin, Nazarian,
Obernolte, O'Donnell, Perea, Quirk, Rendon, Ridley-Thomas,
Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber,
Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Bigelow, Brough, Beth Gaines,
Gallagher, Harper, Jones, Kim, Linder, Mathis, Melendez,
Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Chang, Chávez, Dahle, Grove, Mayes
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
9/3/15 14:37:41
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