BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Bob Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 32 Hearing Date: 4/29/2015
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|Author: |Pavley |
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|Version: |3/16/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Rebecca Newhouse |
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Subject: California Global Warming Solutions Act of 2006:
emissions limit
ANALYSIS:
Existing law, under the California Global Warming Solutions Act of
2006 (Health and Safety Code §38500 et seq.):
1. Requires the California Air Resources Control Board (ARB) to
determine the 1990 statewide greenhouse gas (GHG) emissions
level and approve a statewide GHG emissions limit that is
equivalent to that level, to be achieved by 2020, and to adopt
GHG emissions reductions measures by regulation.
2. Authorizes ARB to adopt a regulation that establishes a system
of market-based declining annual aggregate emission limits for
sources or categories of sources that emit GHGs, applicable
from January 1, 2012, to December 31, 2020, inclusive.
3. Specifies that the statewide GHG emissions limit remains in
effect unless otherwise amended or repealed.
4. Expresses Legislative intent that the emissions limit be used
to maintain and continue in GHG emissions reductions beyond
2020.
5. Requires ARB to make recommendations to the Governor and the
Legislature on how to continue GHG emissions reductions beyond
2020.
This bill:
SB 32 (Pavley) Page 2 of
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1. Requires ARB to approve in a public hearing a statewide GHG
emission limit of 80% below the 1990 level of GHG emissions, to
be achieved by 2050 and based on the best available scientific,
technological, and economic assessments, and requires the limit
include short-lived climate pollutants, as defined.
2. Authorizes ARB to approve 2030 and 2040 interim GHG emission
targets, consistent with the 2050 limit.
3. Specifies that the 2050 limit remain in effect and be used to
maintain and continue emissions reductions beyond 2050.
4. Requires ARB to make recommendations to the Governor and the
Legislature on how to continue GHG emissions reductions beyond
2050.
5. Specifies that it is the intent of the Legislature for the
Legislature and appropriate agencies, in achieving the 2050 GHG
emissions limit, to adopt policies that ensure those long-term
emission reductions advance all of the following:
A. Job growth and local economic benefits in the state.
B. Public health benefits for Californians, particularly in
disadvantaged communities.
C. Innovation in technology and energy and resource
management practices.
D. Regional and international collaboration to adopt similar
GHG emission reduction policies.
Background
1.Climate Change.
The 5th assessment report from the Intergovernmental Panel on
Climate Change (IPCC) notes that atmospheric concentrations of
global warming pollutants have risen to levels unseen in the past
800,000 years. Carbon dioxide concentrations have increased by
40% since pre-industrial times. There is broad scientific
consensus that these global greenhouse gases emission increases
are leading to higher air and water temperatures as well as rising
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sea levels, with serious consequences for California.
Sea level is expected to rise 17 to 66 inches by 2100, and the
frequency of extreme events such as heat waves, wildfires,
floods, and droughts is expected to increase.
Higher temperatures will result in more rain and less snow,
diminishing the reserves of water in California's Sierra Nevada
snowpack. Even if all GHG emissions ceased today, some of
these developments would be unavoidable because the climate
system changes slowly.
There are significant public health risks associated with
climate change. According to the US EPA, warmer average
temperatures will likely lead to hotter days and more frequent
and longer heat waves and could increase the number of
heat-related illnesses and deaths. Increases in the frequency
or severity of extreme weather events could increase the risk
of dangerous flooding, high winds, concentrations of unhealthy
air, and water pollutants, and potentially enhance the spread
of certain diseases.
Along with the potential costs associated with public health
impacts, climate change also represents a very real threat to
California's infrastructure, and could lead to billions of
dollars in property damage. The Pacific Institute estimates
that $100 billion worth of property in California is at risk of
flooding during a 100-year flood with a projected 1.4 meters of
sea level rise.
As the evidence for anthropogenic climate change has mounted
over the last few decades, the state has implemented a broad
climate portfolio to mitigate global warming impacts by
pursuing policies that reduce GHGs.
2.The Global Warming Solutions Act of 2006.
In 2006, the Global Warming Solutions Act of 2006, AB 32
(Núñez, Pavley), Chapter 488, Statutes of 2006, established a
statewide GHG emissions limit by 2020. AB 32 defines
greenhouse gasses (GHGs) as carbon dioxide (CO2), methane,
nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur
hexafluoride and requires ARB to determine the 1990 statewide
GHG emissions level and approve a statewide GHG emissions limit
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that is equivalent to that level, to be achieved by 2020.
AB 32 requires ARB, among other things, to:
Inventory greenhouse gas emissions in California.
Implement regulations that achieve the maximum
technologically feasible and cost-effective reduction of GHG
emissions and impose fees for administrative implementation
costs.
Identify and adopt regulations for discrete early action
measures.
Prepare and approve a scoping plan to achieve the maximum
technologically feasible and cost-effective reduction of GHG
emissions by 2020, to be updated every five years.
Convene an Environmental Justice Advisory Committee to
advise ARB in the development of the scoping plan.
Appoint an economic advisory committee to obtain
recommendations for GHG reduction measures.
The statute also specifies that ARB may include market-based
compliance mechanisms in the AB 32 regulations, after
considering the potential for direct, indirect, and cumulative
emission impacts from these mechanisms, including localized
impacts in communities that are already adversely impacted by
air pollution, and must design any market-based compliance
mechanisms to prevent any increase in the emissions of toxic
air contaminants or criteria air pollutants. The statute also
specifies that market-based compliance mechanisms must also
maximize additional environmental and economic benefits for
California, as appropriate.
1.AB 32 Scoping Plan.
Pursuant to AB 32, ARB approved the first Scoping Plan in 2008.
The Scoping Plan outlined a suite of measures aimed at achieving
1990-level emissions, a reduction of 80 million metric tons of
CO2 (MMT CO2e). Average emission data in the Scoping Plan
reveal that transportation accounts for almost 40% of statewide
GHG emissions, and electricity and commercial and residential
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energy sector account for over 30% of statewide GHG emissions.
The industrial sector, including refineries, oil and gas
production, cement plants, and food processors, was shown to
contribute 20% of California's total GHG emissions.
The 2008 Scoping Plan recommended that reducing GHG emissions
from the wide variety of sources that make up the state's
emissions profile could best be accomplished through a
cap-and-trade program along with a mix of other strategies
including:
a low carbon fuel standard (LCFS);
light-duty vehicle GHG standards;
expanding and strengthening existing energy efficiency
programs, and building and appliance standards;
achieving a 33% Renewable Portfolio Standard (RPS);
regional transportation-related GHG targets; and
creating targeted fees on water use and high global
warming potential pollutants.
The basic design of the program, as recommended by the
original Scoping Plan, is that the combination of direct
regulatory measures and cap-and-trade is intended to achieve
the emission reduction target by 2020. An overall limit on
greenhouse gas emissions from most of the California economy
will be established by the "cap" portion of a cap-and-trade
program, and direct regulations within both capped and
uncapped sectors would achieve additional emissions
reductions.
Pursuant to authority under AB 32, ARB adopted a Low Carbon
Fuel Standard in 2009, and a cap-and-trade program, approved
on December 13, 2011.
Of the 80 MMTCO2 of GHG emissions reductions required to reach
the 2020 AB 32 target, four programs are estimated by ARB to
result in the largest emissions reductions, including cap and
trade, LCFS, energy efficiency measures and the RPS.
Together, they are projected to result in 70% of the total
emissions reductions necessary to meet the 2020 goal. The
measures that make up the other 30% include the Advanced Clean
Cars program, which sets GHG emissions standards for passenger
vehicles, the Sustainable Communities and Climate Protection
Act of 2008, created by SB 375 (Steinberg), Chapter 728,
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Statutes of 2008, which requires ARB to set regional targets
for GHG emissions reductions from passenger vehicle use,
programs for the reduction of high global warming potential
gasses, and others.
Scoping Plan Update: ARB approved an update to the Scoping Plan
on May 22, 2014. The update asserts that California is on track
to meet the near-term 2020 greenhouse gas limit and is well
positioned to maintain and continue reductions beyond 2020 as
required by AB 32.
The February 2014 updated Scoping Plan draft describes policies,
actions, and strategies in the energy, transportation, fuels,
agriculture, waste, and natural lands sectors as a means to
continue emissions reductions in each of these sectors. The
update also emphasizes the need for California to establish a
mid-term statewide emission reduction target "informed by
climate science, to frame the additional suite of policy
measures, regulations, planning efforts, and investments in
clean technologies that are needed to continue driving down
emissions."
The update also includes a summary of the recent science on
short-lived climate pollutants.
1.Short-lived Climate Pollutants.
The updated draft Scoping Plan notes that ARB will develop a
short-lived climate pollutant strategy by 2015 that will include
an inventory of sources and emissions, the identification of
additional research needs, and a plan for developing necessary
control measures. CO2 remains in the atmosphere for centuries,
which makes it the most critical greenhouse gas to reduce in
order to limit long-term climate change. However, climate
pollutants including methane, tropospheric ozone,
hydrofluorocarbons (HFCs), and soot (black carbon), are
relatively short-lived (anywhere from a few weeks to 15 years),
but have much higher global warming potentials than CO2.
New research suggests that black carbon is the second largest
man-made contributor to global warming and its influence on the
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climate has been greatly underestimated.
Another study published in the journal Nature Climate Change
found that reducing emissions of short-lived climate pollutants,
including soot and methane, by 30 to 60% by 2050 would slow the
annual rate of sea level rise by about 18% by 2050. In
addition, the study found that, compared to just cutting CO2
emissions, reducing the release of short-lived climate
pollutants would do more to slow sea level rise before 2050, but
that lowering CO2 emissions would be required to limit warming
and warming-related impacts beyond that point.
According to the updated Scoping Plan, the three short-lived
climate pollutants with the greatest implications for California
are the following:
Black carbon: Black carbon, a component of soot, also known as
PM 2.5, comes from diesel engines and incomplete burning of
carbon sources. Wildfires contribute almost 50% of the total
black carbon emissions in the state. In addition to being a
powerful global warming pollutant, black carbon is associated
with numerous negative health impacts and is designated a
potential human carcinogen. Black carbon is not listed under AB
32 as a greenhouse gas subject to AB 32 regulations. However,
due to known health and air quality impacts, ARB adopted truck
and bus regulations in 2008 to control diesel PM emissions. ARB
also administers the Carl Moyer Program, which provides grants
to fund "cleaner than required" engine upgrades, or retrofits
that reduce PM 2.5 and other pollutants.
Methane: Methane (CH4) is the principal component of natural
gas and is also produced biologically under anaerobic conditions
in ruminants, 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. Many
emissions sources of methane are unregulated (e.g., methane from
dairy production and fugitive methane emissions from landfills
and natural gas distribution) and recent scientific reports
indicate that the US Environmental Protection Agency has
underestimated methane emissions by as much as 50%.
Hydrofluorocarbons (HFC): HFCs are synthetic gases used in
refrigeration, air conditioning, insulation foams, solvents,
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aerosol products, and fire protection. They are primarily
produced for use as substitutes for ozone-depleting substances
which are currently being globally phased out. Currently, HFCs
are a small fraction of the total climate forcing (<1%), but
their emissions are growing relatively more rapidly than those
of CO2. ARB has implemented several measures to reduce HFC
emissions including low-global warming potential (GWP)
requirements for aerosol propellants, a deposit-return recycling
program for small cans of air conditioner refrigerant and a
refrigerant management program.
Comments
1. Purpose of Bill.
According to the author, "Following the issuance of Executive
Order S-03-05, which set a long-term greenhouse gas emissions
reduction target for California of 80 percent below 1990 levels
by 2050, the Legislature enacted AB 32 (Núñez-Pavley, 2006).
The express intent of AB 32 was for the California Air
Resources Board (ARB) to continue reducing greenhouse gas
emissions beyond the 2020 limit established therein. The
Legislature also directed ARB to develop regional greenhouse
gas emissions reduction targets for automobiles and light
trucks for 2035 in SB 375 (Steinberg, 2008).
"In the Scoping Plan Update issued in May 2014, the ARB
identified a number of cost-effective, technologically feasible
pathways to emissions reductions required by 2030, 2040 and
2050 to adequately protect the health, safety and welfare of
Californians from the mounting costs of unabated climate
change. While the courts have affirmed this ongoing authority
to reduce greenhouse gas emissions beyond 2020 (See Cleveland
National Forest Foundation v. San Diego Association of
Governments (4th Dist., Div. 1, No. D063288, Nov. 24. 2014)),
the Legislature has not yet given direction to shape future
reduction strategies.
"SB 32 would provide regulatory certainty by establishing the
greenhouse gas reduction limit of 80 percent below 1990 levels
by 2050 in law. This level of climate pollution has been
identified by the international scientific community as
necessary to stave off the worst effects of climate change on
California's health and safety. The target is guided by
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science, but this bill provides the flexibility inherent in the
existing AB32 framework to adjust pathways to the goal along
the way based on changing technological and economic
conditions, and ongoing evaluations of policy efficacy. The
legislation also identifies goals to ensure that greenhouse gas
reductions advance job creation; public health improvement,
especially in disadvantaged communities; innovation; and policy
collaboration beyond our borders.
"By simply amending the existing AB32 framework without any
major mechanical changes to the regulatory implementation
process, SB 32 ensures that the policy tools currently being
utilized to achieve the existing 2020 greenhouse gas target
remain available for the achievement of targets beyond 2020 -
including, but not limited to, energy efficiency requirements
for buildings and appliances, tailpipe emissions standards for
mobile sources, power sector renewable portfolio and emissions
performance standards, sustainable land use policies,
fuel-related emissions standards, and market based mechanisms -
to maximize the effectiveness of our climate policies overall."
2. Updating the GHGs.
AB 32 defines GHGs as CO2, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and
nitrogen trifluoride.
However, research since the passage of AB 32 clearly indicates
that black carbon is a potent climate forcer, in addition to
its numerous negative health impacts.
Should the list of GHGs in AB 32 be updated with black carbon?
Additionally, should the definition of GHG in AB 32 allow for
additional GHGs that may be identified pursuant to ARB's
short-lived climate pollutant strategy, due in January 2016?
3. Technical Amendments for Consistency of the Act.
Several provisions of AB 32 reference the 2020 greenhouse gas
emissions limit. As the bill establishes a 2050 GHG emissions
limit equal to 80% below the 1990 GHG emissions level, several
technical, conforming amendments are needed to ensure
consistency between the bill and existing law.
SB 32 (Pavley) Page 10 of
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Related/Prior Legislation
AB 32 (Núñez, Pavley), Chapter 418, Statutes of 2006, requires ARB
to establish a GHG emissions limit equal to 1990 level of
emissions, to be achieved by 2020.
SB 1125 (Pavley) of 2014 requires ARB, in consultation with other
entities, to develop reduction targets for GHG emissions for 2030
in an open and public process by January 1, 2016.
SOURCE: Author
SUPPORT:
American Academy of Pediatrics, California
American Cancer Society Cancer Action network, California
American Farmland Trust
American Heart Association, California
American Lung Association, California
Asthma Coalition of Los Angeles County
Audubon
Autodesk
Azul
Bagito
Bay Area Air Quality Management District
Baz Allergy, Asthma and Sinus Center
Bioenergy Association of California
Biosynthetic Technologies
Bonnie J. Adario Lung Cancer Foundation
Breathe CA
Building Doctors
Business for Innovative Climate and Energy Policy
California Black Health Network
California Climate and Agriculture Network
California Conference of Directors of Environmental Health
California Energy Efficiency Industry Council
California Interfaith Power & Light
California League of Conservation Voters
California Nurses Association
California Pan Ethnic Health Network
California Public Health Association, North
California Service Chapter, American College of Physicians
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California Ski Industry Association
California Solar Energy Industry Association
California Thoracic Society
California Wind Energy Association
Californians Against Waste
CALSTART
CalTrout
Carbon Cycle Institute
Catholic Charities, Diocese of Stockton
Center for Biological Diversity
Center for Climate Change and Health; Public Health Institute
Central California Asthma Collaborative
Ceres
Circulate San Diego
Clean Power Finance
Clean Water Action
Cleveland National Forest Foundation
Climate Ready Solutions LLC
Climate Resolve
Coastal Environmental Rights Foundation
Communications Workers of America, District 9, AFL-CIO
Communitas Financial Planning
Department of Public Health, Los Angeles County
Dignity Health
Distance Learning Consulting
Doctors for Climate Health
Eagle Creek
eBay, Inc
Ecogate, Inc
Endangered Habitats League
Environment California
Environmental Action Committee of West Marin
Environmental Defense Fund
Environmental Entrepreneurs
EtaGen
Friends of the River
Gap, Inc.
Greenbelt Alliance
Health Care Without Harm
House Kombucha
Klean Kanteen
Land Trust of Santa Cruz County
Large-scale Solar Association
League of Women Voters of California
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Levi Strauss & Co
Los Angeles Business Council
Medical Advocates for Healthy Air
Mercury Press International
Moms Clean Air Force
National Parks Conservation Association
Natural Resources Defense Council
NextGen Climate
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility, San Francisco Bay Area
Chapter
Planning and Conservation League
Power2Sustain
Progressive Asset Management, Inc.
Public Health Institute
Purple Wine & Spirits
Quest
RC Cubed, Inc
Regional Asthma Management and Prevention
ReLeaf
San Francisco Asthma Task Force
Santa Clara County Medical Society
Sequoia Riverlands Trust
Sidel Systems USA
Sierra Club
Silicon Valley Leadership Group
SmartWool
Solar Energy Industries Association
Sonoma County Asthma Coalition
Southwest Wetlands Interpretive Association
Sustainable North Bay
Symantec Corporation
Tamalpais NatureWorks
The Humane Society of the United States
The Nature Conservancy
The North Face
TransForm
TreePeople
Trust for Public Lands
Union of Concerned Scientists
Waterplanet Alliance
OPPOSITION:
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African American Farmers of California
Agricultural Council of California
American Forest and Paper Association
American Wood Council
Brea Chamber of Commerce
Building Owners and Managers Association
California Agricultural Aircraft Association
California Association of Nurseries and Garden Centers
California Business Properties Association
California Cattlemen's Association
California Chamber of Commerce
California Cotton Ginners Association
California Cotton Growers Association
California Dairies, Inc.
California Farm Bureau Federation
California Fresh Fruit Association
California Independent Oil Marketers Association
California Independent Petroleum Association
California League of Food Processors
California Taxpayers Association
California Trucking Association
Camarillo Chamber of Commerce
Chamber of Commerce Alliance of Ventura and Santa Barbara
Fresno Chamber of Commerce
Fullerton Chamber of Commerce
Greater Bakersfield Chamber of Commerce
International Council of Shopping Centers
Irvine Chamber of Commerce
Los Angeles County Solid Waste Management Committee/Integrated
Waste Management Task Force
M-S-R Public Power Agency
NAIOP-Commercial Real Estate Development Association
National Federation of Independent Business
National Hmong American Farmers
Nisei Farmers League
Oxnard Chamber of Commerce
Rancho Cordova Chamber of Commerce
Redondo Beach Chamber of Commerce and Visitor Bureau
San Jose Silicon Valley Chamber of Commerce
Santa Maria Valley Chamber of Commerce and Visitor Bureau
Simi Valley Chamber of Commerce
South Bay Association of Chambers of Commerce
Southwest California Legislative Council
Torrance Chamber of Commerce
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Western Agricultural Processors Association
Western Growers Association
Western Plant Health Association
Western States Petroleum Association
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