BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1496


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1496 (Thurmond)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  |57-18 |(June 2, 2015) |SENATE: |25-14 |(September 9,    |
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          Original Committee Reference:  NAT. RES.


          SUMMARY:  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 greenhouse gas (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.


          The Senate amendments:


          1)Require monitoring and measurements of high-emission methane  
            hot spots in the state by ARB be cost-effective.










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          2)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  
            the purpose of carrying out a life-cycle GHG emission analysis  
            of natural gas produced and imported into the state.


          3)Remove requirement that ARB update GHG emission factors for  
            electric generation with natural gas and the use of natural  
            gas as a transportation fuel.


          4)Remove evaluation of whether methane should be reclassified as  
            a contributor to the formation of air pollution.


          EXISTING LAW: 


          1)Requires ARB, pursuant to California Global Warming Solutions  
            Act of 2006, AB 32 (Núñez), Chapter 488, Statutes of 2006, to  
            adopt regulations to achieve maximum technologically feasible  
            and cost-effective reductions in emissions of greenhouse  
            gases, including methane.
          2)Requires ARB to complete a comprehensive strategy to reduce  
            emissions of short-lived climate pollutants (SLCPs), including  
            methane, by January 1, 2016.


          3)Designates ARB as the air pollution control agency responsible  
            for the coordination of the activities of air pollution  
            control districts and air quality management districts for the  
            purposes of the federal Clean Air Act. 


          4)Requires air districts to adopt and enforce rules and  
            regulations to achieve and maintain the state and federal  
            ambient air quality standards in all areas affected by  
            non-vehicular emission sources under their jurisdiction. 


          5)Generally prohibits a person from discharging air contaminants  








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            or other material that cause injury, detriment, nuisance, or  
            annoyance or endanger the comfort, repose, health or safety to  
            any considerable number of persons, or to the public, or that  
            cause, or have a tendency to cause injury or damage to a  
            business or property.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:


          1)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.


          2)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.


          COMMENTS:  As part of AB 32's direction that ARB 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.  The scoping plan update  
          discusses the objective of achieving an 80% reduction by 2050  
          and the need for a midterm target, but does not propose or adopt  
          a specific target.  According to ARB, the update defines ARB's  
          climate change priorities for the next five years and sets the  
          groundwork to reach California's long-term climate goals.  Among  
          its provisions, the update commits ARB to develop a SLCP  
          strategy by 2015 that will include an inventory of sources and  








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          emissions, the identification of additional research needs, and  
          a plan for developing SLCP control measures.  SB 605 (Lara),  
          Chapter 523, Statutes of 2014, requires ARB to complete a  
          comprehensive SLCP strategy by January 1, 2016.


          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 SLCP with a lifetime of only about 12 years when  
          released into the atmosphere.  It is an extremely potent GHG,  
          with 20 to 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, as well as  
          water vapor, the most powerful of the common causes of warming.


          Analysis Prepared by:                                             
                          Lawrence Lingbloom / NAT. RES. / (916) 319-2092   
                                                                      FN:  
          0002363