BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SR 37 ----------------------------------------------------------------- |Author: |De León | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |7/14/2015 |Hearing |7/15/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: | |Fiscal: | | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Rebecca Newhouse | | | | ----------------------------------------------------------------- SUBJECT: Public resources. ANALYSIS: Existing law, under the California Global Warming Solutions Act of 2006 (Health and Safety Code §38500 et seq.) 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. This bill: 1) Makes findings regarding Pope Francis as a defender of the poor and those suffering the devastating impacts from climate change, and states that the Papal encyclical, released in June, declared a call to action on climate change and asserts that a true ecological approach to climate change must integrate questions of social and environmental justice. 2) Makes findings regarding California's incorporation of social and environmental justice in the state's approach to addressing climate change. 3) Resolves that members of the Legislature review and take into account the Papal encyclical on climate change in relevant legislative actions; 4) Resolves that the Governor and executive branch consider the SR 37 (De León) Page 2 of ? implications of the Papal encyclical and climate change in their policy and fiscal actions to prevent further environmental degradation; 5) Resolves that the appropriate policy committees of the Legislature convene hearings to consider the policy implications of the Papal encyclical and seek testimony from religious leaders, state officials, environmental organizations, business groups and the general public; and 6) Resolves that the United States Congress and President Obama consider the implications of the Papal encyclical and climate change in their policy and fiscal actions to prevent further environmental degradation. Background 1) Papal encyclical. Pope Francis released a Papal encyclical on June 18, 2015, which called for a radical transformation of politics, economics and individual lifestyles to confront environmental degradation and climate change. The encyclical asserts that developed, industrialized countries are mostly responsible for the impacts from climate change and are obligated to help poorer nations confront the crisis. The encyclical also warns of an "unprecedented destruction of ecosystems, with serious consequences for all of us" if corrective action is not taken swiftly. The encyclical also notes that, "climate change is a global problem with grave implications: environmental, social, economic, political and for the distribution of goods," and that "it represents one of the principal challenges facing humanity in our day." 2) Climate change. There is broad scientific consensus that the climate is warming and that much of this warming is due to human activities, with serious implications for California. 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 SR 37 (De León) Page 3 of ? rising 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 United States Environmental Protection Agency, 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. 3) 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 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 SR 37 (De León) Page 4 of ? approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020. AB 32 also requires ARB, among other things, to inventory GHGs in California, outline a Scoping Plan for achieving the 2020 GHG emission limit, and implement regulations that achieve the maximum technologically feasible and cost-effective reduction of GHG emissions. 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. 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 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, among other measures, a low carbon fuel standard, light-duty vehicle GHG standards, expanding energy efficiency programs, and achieving a 33% renewable portfolio standard. As outlined in the Scoping Plan, and pursuant to their authority under AB 32, ARB adopted a cap-and-trade program SR 37 (De León) Page 5 of ? that places a "cap" on aggregate GHG emissions from large GHG emitters. ARB auctions allowances for purposes of compliance with the program quarterly. Several bills direct the investment of this auction revenue, including SB 535 (de León, Chapter 830, Statutes of 2012), which requires that 25% of auction revenue be used to benefit disadvantaged communities and that 10% of the auction revenue be invested within disadvantaged communities. ARB approved an update to the Scoping Plan on May 22, 2014. The update asserts that California is on track with a variety of policies and programs, outlined in the original Scoping Plan, to meet the near-term 2020 greenhouse gas limit and is well positioned to maintain and continue GHG emission reductions beyond 2020. SOURCE: Author SUPPORT: None received OPPOSITION: None received -- END --