BILL ANALYSIS Ó AB 2702 Page 1 Date of Hearing: April 18, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 2702 (Atkins) - As Amended March 18, 2016 SUBJECT: Greenhouse gases: study SUMMARY: Requires the Air Resources Board (ARB) to conduct a study that outlines best practices and policies for meeting state goals to reduce greenhouse gas (GHG) emissions. EXISTING LAW requires ARB, pursuant to California Global Warming Solutions Act of 2006 (AB 32), to: 1)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. 2)Prepare and approve a scoping plan, on or before January 1, 2009, and once every five years thereafter, for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources of emissions by 2020. THIS BILL: 1)Requires ARB, no later than July 1, 2018, to conduct a study AB 2702 Page 2 that outlines best practices and policies for meeting state goals to reduce GHG emissions. 2)Makes related findings regarding California's leadership on climate change, including the "Under 2 MOU" committing California and other signatories to either reducing the emissions of GHGs 80 to 95% below 1990 levels by 2050 or achieving a per capita annual emissions target of less than 2 metric tons of carbon dioxide equivalent by 2050. FISCAL EFFECT: Unknown COMMENTS: 1)Background. 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. Pursuant to AB 32, the reduction measures identified in the scoping plan had to be proposed, reviewed, and adopted as individual regulations by January 1, 2011, to become operative beginning on January 1, 2012. 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 AB 2702 Page 3 update defines ARB's climate change priorities for the next five years and sets the groundwork to reach California's long-term climate goals. The Global Climate Leadership Memorandum of Understanding (Under 2 MOU) is a non-binding agreement initiated by Governor Brown and 11 other subnational signatories in May 2015, which has since been signed by over 100 additional subnational jurisdictions. The Under 2 MOU commits the signatories to pursue either reducing the emissions of GHGs 80 to 95% below 1990 levels by 2050 or achieving a per capita annual emissions target of less than 2 metric tons of carbon dioxide equivalent by 2050, with the goal of limiting global warming to less than two degrees Celsius. 2)Author's statement: There are a number of programs, policies, and other actions being implemented at the state and local levels to help reduce GHG emissions. However, the most effective programs and policies in the short-term, mid-term, and long-term have not been assessed and/or inventoried. AB 2702 will create a clearinghouse of best practices which will ultimately assist local governments and other entities in implementing the Under 2 MOU by identifying those programs, policies, and actions that provide effective GHG emission reduction strategies. California is a leader in the fight to address climate change and the Under 2 MOU represents an opportunity to engage local governments within the state and around the world in the effort to limit the temperature rise of the planet to less than 2 degrees. AB 2702 Page 4 REGISTERED SUPPORT / OPPOSITION: Support Environment California Opposition None on file Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916) 319-2092