BILL ANALYSIS Ó
SB 32
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 32
(Pavley) - As Amended June 1, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Air Resources Board (ARB) to approve
statewide greenhouse gas (GHG) emissions limits equivalent to
40% below 1990 levels by 2030 and 80% below 1990 levels by 2050.
Specifically, this bill:
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1)Requires ARB to approve the statewide GHG emissions limits,
including short-lived climate pollutants, based on the best
available scientific, technological, and economic assessments.
2)Authorizes ARB to approve an interim GHG emissions target to
be achieved by 2040.
3)States the intent of the Legislature that policies adopted to
achieve the 2030 and 2050 limits advance the following:
a) Job growth and local economic benefits in
California.
b) Public health benefits for California residents,
particularly in disadvantaged communities.
c) Innovation in technology and energy, water, and
resource management practices.
d) Regional and international collaboration to adopt
similar GHG emissions reduction policies.
FISCAL EFFECT:
1)Unknown annual costs, at least in the hundreds of millions of
dollars, from various special funds for additional programs to
achieve the new required emissions reductions.
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2)Minor, absorbable costs for the ARB to set the 2030, 2040 and
2050 GHG targets (Cost of Implementation Account).
COMMENTS:
1)Purpose. According to the author, an enforceable GHG target
of 80 percent below 1990 levels by 2050 is the level
identified by the international scientific community as
necessary to stave off the worst effects of climate change on
California's health and safety.
This bill adopts that target, but provides the same
flexibility in the existing AB 32 framework to make
adjustments based on changing technological and economic
conditions, and ongoing evaluations of policy efficacy.
2)Background. The California Global Warming Solutions Act of
2006 (AB 32) requires ARB to adopt a statewide GHG emissions
limit equivalent to 1990 levels by 2020 and adopt regulations,
including market-based compliance mechanisms, to achieve
maximum technologically feasible and cost-effective GHG
emission reductions.
As part of the implementation of AB 32 market-based compliance
measures, ARB adopted a cap-and-trade program that caps the
allowable statewide emissions and provides for the auctioning
of emission credits, the proceeds of which are quarterly
deposited into the GGRF available for appropriation by the
Legislature.
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3)AB 32 Scoping Plan Update. ARB approved an update to the AB
32 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 update 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.
Consistent with this recommendation , this bill provides a
mid-term statewide emission reduction target of 45% below 1990
levels by 2030.
4)Related legislation. AB 1288 (Atkins), which is pending in
the Senate Appropriations Committee, eliminates the December
31, 2020 limit on applicability of a market-based compliance
mechanism under AB 32.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
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