BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 32 (Pavley) - California Global Warming Solutions Act of
2006: emissions limit
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|Version: May 5, 2015 |Policy Vote: E.Q. 5 - 2 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 18, 2015 |Consultant: Marie Liu |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 32 would require the California Air Resources Board
(ARB) to approve a greenhouse gas (GHG) emission limit that is
equivalent to 80% below the 1990 level to be achieved boy 2050.
Fiscal
Impact:
Minor and absorbable costs to the Cost of Implementation
Account (special) to the Air Resources Board to set the 2050
target.
Unknown annual costs, at least in the hundreds of millions of
dollars, from various special funds for additional programs to
achieve the required emission reductions.
Background: In 2006, the Legislature passed the California Global Warming
Solutions Act of 2006 (Health and Safety Code §38500 et seq.),
which is frequently referred to as AB 32. The act requires the
SB 32 (Pavley) Page 1 of
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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. ARB is
also authorized to adopt 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. This program is known as the
cap-and-trade program.
AB 32 specifies that the statewide GHG emissions limit remains
in effect unless otherwise amended or repealed and that it is
the Legislature's intent that the emissions limit be used to
maintain and continue in GHG emissions reductions beyond 2020.
ARB is also required to make recommendations to the Governor and
the Legislature on how to continue GHG emissions reductions
beyond 2020.
Proposed Law:
This bill would direct the ARB to adopt a 2050 GHG emission
limit that is equivalent to 80% of the state's 1990 emission
levels, as previously calculated for AB 32. The 2050 emissions
limit would be required to include short-lived climate
pollutants.
ARB would be authorized to approve interim GHG emission level
targets for 2030 and 2040.
This bill would also add legislative intent language that
appropriate agencies adopt complementary policies that ensure
long-term GHG emissions and advance job growth and local
economic benefits, public health benefits, and innovation in
technology and resource management policies.
Staff
Comments: Since the ARB has already established the 1990
emission levels as part of the AB 32 implementation, calculating
80% of this amount to create the 2050 limit as required by this
bill would be straightforward. As such, the ARB believes that
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the requirement to adopt a 2050 limit will require minor and
absorbable costs.
However, to achieve the new 2050 limit will have significant
costs to the state, at least in the tens of millions of dollars,
for staff and programs to reduce GHG emissions. ARB notes that
their near-term costs will not change as a result of this bill
because the ARB has already moved towards a 2050 target in
response to executive orders. However, the their near-term costs
are not yet covered by the current budget baseline as ARB
continues to submit budget change proposals for additional
activities to reduce GHG emissions, including this year.
While it is not possible to predict how much it will actually
cost the state to achieve an 80% reduction in GHG emissions
compared to 1990 levels, staff notes that the cost per ton of
GHG emissions reduced is expected to increase with time as the
relatively simple emissions are generally achieved first. As the
emission reductions become more difficult to achieve,
implementation costs will increase.
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