BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 32|
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UNFINISHED BUSINESS
Bill No: SB 32
Author: Pavley (D), et al.
Amended: 8/19/16
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 4/29/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 24-15, 6/3/15
AYES: Allen, Beall, Block, De León, Glazer, Hall, Hancock,
Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva,
Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley,
Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,
Galgiani, Huff, Moorlach, Morrell, Nguyen, Roth, Runner,
Stone, Vidak
NO VOTE RECORDED: Nielsen
ASSEMBLY FLOOR: 30-35, 9/8/15 - See last page for vote (FAIL)
ASSEMBLY FLOOR: 49-30, 8/23/16 - See last page for vote
SUBJECT: California Global Warming Solutions Act of 2006:
emissions limit
SOURCE: Author
DIGEST: This bill requires the Air Resources Board (ARB) to
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Page 2
ensure that statewide greenhouse gas (GHG) emissions are reduced
to at least 40% below the 1990 level by 2030.
Assembly Amendments add intent language and strike the requirement
that ARB approve a statewide GHG emissions target of 80% below the
1990 level, to be achieved by 2050.
ANALYSIS:
Existing law, under the California Global Warming Solutions Act of
2006 (also known as AB 32):
1) Requires ARB to determine the 1990 statewide 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effect unless otherwise amended or repealed.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 statewide emissions limit
continue in existence and be used to maintain and continue 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:
1)Makes findings and declarations regarding requirements and
authority of ARB under AB 32; the need to continue to reduce GHG
emissions to protect all areas of the state, especially the
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Page 3
state's most disadvantaged communities; and that ARB shall
achieve the state's more stringent GHG emission reductions in a
manner that benefits the state's most disadvantaged communities
and is transparent and accountable to the public and the
Legislature.
2)Requires ARB to ensure that statewide GHG emissions are reduced
to at least 40% below the 1990 statewide GHG emissions level no
later than December 31, 2030, when adopting rules and
regulations to achieve the maximum technologically feasible and
cost-effective GHG emissions reductions authorized by AB 32.
3)Specifies that the bill shall become operative only if AB 197
(Garcia) is enacted and becomes effective on or before January
1, 2017.
Background
1)The Global Warming Solutions Act of 2006. In 2006, the Global
Warming Solutions Act of 2006, AB 32 (Núńez, Pavley, Chapter
488, Statutes of 2006), requires the ARB to determine the 1990
statewide GHG emissions level and approve a statewide GHG
emissions limit that is equivalent to that level, to be achieved
by 2020.
AB 32 requires the ARB, among other things, to inventory GHG
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; and 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.
The statute also specifies that the 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.
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Page 4
2)AB 32 Scoping Plan. Pursuant to AB 32, the 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 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, a 33%
Renewable Portfolio Standard (RPS), and regional
transportation-related GHG targets. Pursuant to authority under
AB 32, the ARB adopted a Low Carbon Fuel Standard in 2009, and a
cap-and-trade program, approved on December 13, 2011.
Scoping Plan update. The ARB approved an update to the Scoping
Plan on May 22, 2014. The update 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 asserts that California is on track to meet the
near-term 2020 GHG limit and is well positioned to maintain and
continue reductions beyond 2020 as required by AB 32.
3)Executive Orders. In 2005, Governor Schwarzenegger issued
Executive Order S-3-05 and called for GHG emissions reductions
to 1990 levels by 2020 and 80% below 1990 levels by 2050.
On April 29, 2015, Governor Brown issued Executive Order
B-30-15, which established an interim statewide GHG emission
reduction target to reduce GHG emissions to 40% below 1990
levels by 2030, "in order to ensure California meets its target
of reducing greenhouse gas emissions to 80 percent below 1990
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levels by 2050." The EO also directed all state agencies with
jurisdiction over sources of GHG emissions to implement
measures, pursuant to statutory authority, to achieve reductions
of GHG emissions to meet the 2030 and 2050 greenhouse gas
emissions reductions targets.
4)2030 Concept Paper. On June 17, 2016, ARB released a "2030
Target Scoping Plan Update Concept Paper." The paper includes
four potential high-level concepts for achieving a 40% GHG
reduction below the 1990 GHG level by 2030. Concept 1 calls for
enhancements to existing, successful programs and implementation
of SB 350 (de Leon, Chapter 547, Statutes of 2015). It suggests
investment of funds from the cap-and-trade program in areas that
would further the goals of AB 32. Concept 2 extends the actions
in Concept 1 to specifically address the industrial sector
through industrial facility caps. It would have no
cap-and-trade regulation post-2020 and no statewide limit on GHG
emissions. Concept 3 focuses on transportation-oriented policy
aimed at ambitious reductions in vehicle miles traveled and
increased number of zero-emission and plug-in vehicles by 2030.
It would not continue cap-and-trade regulation post-2020.
Concept 4 includes the same complementary policies as Concept 1,
but in lieu of a cap-and-trade program, suggests a carbon tax
applied at a value predetermined by a method such as economic
modeling or the use of United States Environmental Protection
Agency social cost of carbon. According to the paper, it is not
clear if the scenario outlined in Concept 4 would ultimately
achieve the 2030 target because it would not include a statewide
limit on GHG emissions, and it is unknown how the moneys
generated by a carbon tax would be used.
Comments
Purpose of the bill. According to the author, "California has
consistently set the pace in investing in a new, clean energy
economy, and in communities battling climate change at the front
lines. In the decade since the passage of AB 32 (Núńez-Pavley,
2006), the state has seen billions of dollars pour into
investments in state-of-the-art technology, which has in turn
created hundreds of thousands of jobs in the service of cleaning
our air, making our energy sources more independent and reliable,
and safeguarding our climate for our children.
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"Now, as the legislature considers this year's SB 32--and its
companion bill, AB 197--the state has the opportunity to build a
new coalition that ensures that we continue the historic progress
we've made on climate, and to write the next chapter of our
state's climate policy with three guiding principles at its core:
equity, accountability, and transparency. SB 32 sets a 2030
climate pollution reduction target of 40% below 1990 levels.
Doing so now provides critical certainty and predictability to
businesses that need to know California will continue to support
their work to clean our air and water. The bill also highlights
the critical role that the legislature plays in developing state
climate policy, and ensures that the policy is made transparently,
and designed to help lift our most disadvantaged citizens up
together with all Californians.
"We know that the communities hardest hit by climate
pollution--those that will suffer first and most frequently from
the impacts of a heat wave, or a drought, or a flood, or poor air
quality, or unavailable water--are disadvantaged communities, and
disproportionately communities of color. That is why our climate
package requires that our state's agencies ensure our programs are
equitably designed, and that investments in climate pollution
reduction provide the most benefits to those who need them most.
"The good news is that the state and the private sector are
largely already on track to accomplish so many of these goals.
Governor Schwarzenegger signed 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; Governor Brown
signed Executive Order B-30-15, which set a mid-term greenhouse
gas emissions reduction target for California of 40% below 1990
levels by 2030; and the Legislature already codified a 40% below
1990 levels by 2030 target for the power sector in SB 350 last
year. Businesses have risen to these calls with California's
spirit of ingenuity, and have created a global model for clean
energy technology, entrepreneurship, and policy innovation that
countries around the world seek to replicate. SB 32 represents
the next step of this critical policy, and to ensure that when the
state drafts its climate policy, it does so with the interests of
those who need our protection the most in mind."
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Assembly Appropriations Committee:
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.
Minor, absorbable costs for the ARB to set the 2030 target
(Cost of Implementation Account).
SUPPORT: (Verified8/23/16)
State Controller Betty Yee
350 Bay Area
350 Sacramento
Access to Independence
Advanced Energy Economy
Agility Fuel Systems
Agoura Hills Mayor Ilece Buckley
American Academy of Pediatrics - California District IX
American Cancer Society, California Division
American College of Physicians, California Service Chapter
American Farmland Trust
American Heart Association
American Lung Association in California
American Stroke Association
Annie's Inc.
Applied LNG Technologies
Apricus Inc.
Asthma Coalition of Los Angeles County
Atmos Energy
Audubon Society of California
Autodesk, Inc.
Azul
Bagito
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Bay Area Air Quality Management District
Baz Allergy, Asthma & Sinus Center (San Joaquin Valley)
Ben & Jerry's
Benicia Mayor Elizabeth Patterson
Big Sur Land Trust
Biodico Sustainable Biorefineries
Bioenergy Association of California
Biosynthetic Technologies
Blue Sky Biochar
Bonnie J. Adario Lung Cancer Foundation
Breathe California
Building Doctors
Business for Innovative Climate and Energy Policy
C&C Development Co.
Calabasas Mayor Lucy Martin
California Bicycle Coalition
California Biodiesel Alliance
California Biomass Energy Alliance
California Black Health Network
California Catholic Conference, Inc.
California Climate and Agriculture Network
California Conference of Directors of Environmental Health
California Contract Cities Association
California Electric Transportation Coalition
California Energy Efficiency Industry Council
California Energy Storage Alliance
California Equity Leaders Network
California Green Business Network
California Interfaith Power & Light
California League of Conservation Voters
California Municipal Utilities Association
California Natural Gas Vehicle Coalition
California Nurses Association
California Pan-Ethnic Health Network
California Public Health Association, North
California Ski Industry Association
California Solar Energy Industries Association
California Solar Energy Industry Association
California State Council of Laborers
California Thoracic Society
California Transit Association
California Trout
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California Urban Forests Council
California Wind Energy Association
Californians Against Waste
Calpine Corporation
CalPIRG
CALSTART
Carbon Cycle Institute
Cathedral City Mayor Pro Tem Greg Pettis
Catholic Charities, Diocese of Stockton
Center for Biological Diversity
Center for Climate Change and Health
Center for Climate Protection
Center for Sustainable Suburban Development at University
California, Riverside
Central California Asthma Collaborative
Ceres
ChargePoint
Chart Industries
Circulate San Diego
City and County of San Francisco
City Heights Community Development Corporation
City of Arcata
City of Berkeley
City of Los Angeles
City of Maywood
City of Moorpark
City of Oxnard
City of Santa Monica
City of Santa Rosa
City of Sebastopol
City of Simi Valley
City of Thousand Oaks
City of West Hollywood
Clean Energy
Clean Power Finance
Clean Water Action
CleanTech San Diego
Cleveland National Forest Foundation
Clif Bar, Inc
Climate Action Campaign
Climate Action Reserve
Climate Parents
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Climate Ready Solutions LLC
Climate Resolve
Communications Workers of American, AFL-CIO District 9
Communitas Financial Planning
Community Action to Fight Asthma
Consumers Union
Cosmodyne
County of Los Angeles
County of Marin
County of Santa Barbara
County of Sonoma
County of Ventura
Covanta Energy Corporation
Cummins Westport Inc.
Davis Mayor Dan Wolk
Dignity Health
Distance Learning Consulting
Doctors for Climate Health
Eagle Creek
East Bay Municipal Utility District
eBay
Ecogate, Inc.
El Proyecto del Barrio, Inc
Endangered Habitats League
Environment California
Environmental Action Committee of West Marin
Environmental Defense Fund
Environmental Entrepreneurs (E2)
Environmental Health Coalition
Environmental Health Department, County of Los Angeles
EtaGen
FastTech
Fiat Chrysler Automobiles
Ford Motor Company
Freightliner
Fresno Mayor Ashley Swearengin
Friends Committee on Legislation of California
Friends of the River
Gap, Inc.
General Motors Company
Gladstein Neandross & Associates
Global Green USA
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Grand Boulevard Initiative
Green Education
Greenbelt Alliance
Harvest Power
Health Care Without Harm
Health Officers Association of California
Honda
House Kombucha
Housing California
Humane Society International
Humane Society of the United States
Impco Automotive
Jewish Family Services of Los Angeles
KB Home
Klean Kanteen
Lancaster Mayor R. Rex Parris
Land Trust of Santa Cruz County
Landirenzo
Large-Scale Solar Association
Leadership Counsel for Justice and Accountability
League of Women Voters of California
League of Women Voters of Orange Coast
Levi Strauss & Co
Liberty Hill Foundation
Long Beach Mayor Robert Garcia
Los Angeles Alliance for a New Economy
Los Angeles Business Council
Los Angeles County Medical Association
Los Angeles County Supervisor Hilda Solis
Los Angeles County Supervisor Mark Ridley-Thomas
Los Angeles County Supervisor Sheila Kuehl
Los Angeles Mayor Eric Garcetti
Lyft
MAAC
Marin Agricultural Land Trust
Marin Clean Energy
Mars Incorporated
Medical Advocates for Healthy Air
Member of Congress, Adam B. Schiff
Member of Congress, Alan Lowenthal
Member of Congress, Ted W. Lieu
Mercury Press International
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Moms Clean Air Force
Morgner Construction
Motiv
Mountains Recreation and Conservation Authority
Move LA
National Parks Conservation Association
Natural Resources Defense Council
Nature Conservancy
NextGen Climate
Oakland Mayor Libby Schaaf
Pacific Forest Trust
Pacific Gas and Electric
Pacoima Beautiful
Patagonia Works
Patagonia, Inc.
Peninsula Open Space Trust
People Organizing to Demand Environmental and Economic Rights
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility--SF-Bay Area Chapter
Planning and Conservation League
Plug In America
Power2Sustain
Prevention Institute
Progressive Asset Management, Inc.
Progressive Baptist State Convention of California and the West
Proterra Inc.
Public Health Institute
Puma Springs Vineyards
Purple Wine & Spirits
Quest
Questar Fueling
RC Cubed, Inc.
Redlands Area Democratic Club
Redlands Mayor Pro Tempore Jon Harrison
ReFuel
Regional Asthma Management and Prevention
Republic Services, Inc.
Sacramento Mayor Kevin Johnson
Sacramento Municipal Utility District
San Diego Housing Federation
San Diego-Imperial Counties Labor Council
San Francisco Asthma Task Force
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San Francisco Mayor Edwin Lee
San Jose Mayor Sam Liccardo
Santa Ana Mayor Miguel Pulido
Santa Clara County Medical Society
Santa Clara Valley Open Space Authority
Santa Clarita Organization for Planning and the Environment
Santa Monica Mountains Conservancy
Save the Redwoods League
Sempra Energy
Sequoia Riverlands Trust
Service Employees International Union
Sidel Systems USA
Sierra Business Council
Sierra Club California
Silicon Valley Leadership Group
SmartWool
Solano County Transit
Solar Energy Industries Association
Sonoma Agricultural Preservation and Open Space District
Sonoma Clean Power
Sonoma County Asthma Coalition
Sonoma County Water Agency
South Coast Air Quality Management District
Southern California Edison
Southern California Gas Company
Southern California Public Power Authority
Southwest Wetlands Interpretive Association
Spectrum LNG
Stop Waste
Sustainable North Bay
Symantec
Tamalpais Nature Works
The Added Edge
The Hampstead Companies
The North Face
TransForm
TreePeople
Trillium CNG
Trust for Public Land
U.S. Green Building Council California
Union of Concerned Scientists
United States Senator Barbara Boxer
SB 32
Page 14
United States Senator Dianne Feinstein
UPS
VNG
Voices for Progress
Wakeland Housing & Development Corporation
Waste Management, Inc.
Waterplanet Alliance
WaterSmart Software
Westport Innovations
OPPOSITION: (Verified8/23/16)
African American Farmers of California
Agricultural Council of California
American Alliance Authority and Compliance
American Alliance Drug Testing
American Forest and Paper Association
American Wood Council
Apartment Association of Greater Los Angeles
Apartment Association of Orange County
Apartment Association, California Southern Cities
Associated Builders and Contractors of California
Brea Chamber of Commerce
Building Owners and Managers Association
California Agricultural Aircraft Association
California Apartment Association
California Association of Nurseries and Garden Centers
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Business Roundtable
California Cattlemen's Association
California Chamber of Commerce
California Concrete Pumpers Alliance
California Construction Trucking Association
California Cotton Ginners Association
California Cotton Growers Association
California Dairies, Inc.
California Dairy Campaign
California Farm Bureau Association
SB 32
Page 15
California Farm Bureau Federation
California Fresh Fruit Association
California Independent Oil Marketers Association
California Independent Petroleum Association
California League of Food Processors
California Manufacturers and Technology Association
California Political Consulting Group
California Small Business Association
California Taxpayers Association
California Trucking Association
Californians for Affordable and Reliable Energy
Camarillo Chamber of Commerce
Chambers of Commerce Alliance of Ventura & Santa Barbara
Counties
Coalition of American Latino Truckers
East Bay Rental Housing Association
Family Business Association
Fullerton Chamber of Commerce
Greater Bakersfield Chamber of Commerce
Greater Fresno Area Chamber of Commerce
Greater Riverside Chamber of Commerce
Heavy-Haul Conference
Inland Empire Economic Partnership
International Council of Shopping Centers
Irvine Chamber of Commerce
Kern County Board of Supervisors
Los Angeles County Business Federation
Milk Producers Council
NAIOP of California, the Commercial Real Estate Development
Association
National Federation of Independent Business
National Hmong American Farmers
Nisei Farmers League
North Orange County Chamber
North Valley Property Owners Association
Orange County Business Council
Oxnard Chamber of Commerce
Rancho Cordova Chamber of Commerce
Redondo Beach Chamber of Commerce & Visitors Bureau
San Jose Silicon Valley Chamber of Commerce
Santa Barbara Rental Property Association
Santa Maria Valley Chamber of Commerce and Visitors Convention
SB 32
Page 16
Bureau
Simi Valley Chamber of Commerce
South Bay Association of Chambers of Commerce
Southwest California Legislative Council
Torrance Chamber of Commerce
Valley Industry and Commerce Association
Ventura County Economic Development Association
Western Agricultural Processors Association
Western Growers Association
Western Plant Health Association
Western States Petroleum Association
Western Trucking Alliance
Western United Dairymen
ASSEMBLY FLOOR: 30-35, 9/8/15 (FAIL)
AYES: Bloom, Bonilla, Bonta, Chau, Chiu, Chu, Dababneh,
Eggman, Cristina Garcia, Gatto, Gomez, Gonzalez, Holden,
Jones-Sawyer, Levine, Lopez, McCarty, Mullin, Nazarian, Quirk,
Rendon, Ridley-Thomas, Santiago, Mark Stone, Thurmond, Ting,
Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,
Cooley, Dahle, Daly, Frazier, Beth Gaines, Gallagher, Gray,
Grove, Hadley, Harper, Jones, Kim, Lackey, Linder, Low,
Maienschein, Mathis, Mayes, Medina, Melendez, Obernolte,
Olsen, Patterson, Perea, Salas, Steinorth, Wagner, Waldron,
Wilk
NO VOTE RECORDED: Alejo, Brown, Burke, Calderon, Campos,
Chávez, Cooper, Dodd, Eduardo Garcia, Gipson, Gordon, Roger
Hernández, Irwin, O'Donnell, Rodriguez
ASSEMBLY FLOOR: 49-30, 8/23/16
AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta,
Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley,
Cooper, Dababneh, Dodd, Eggman, Cristina Garcia, Eduardo
Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Roger
Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk,
Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond,
Ting, Weber, Williams, Wood, Rendon
NOES: Achadjian, Travis Allen, Bigelow, Brough, Chang, Chávez,
SB 32
Page 17
Dahle, Frazier, Beth Gaines, Gallagher, Gray, Grove, Hadley,
Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis,
Mayes, Melendez, Obernolte, Olsen, Patterson, Salas,
Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Daly
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
8/24/16 10:20:34
**** END ****