BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            SR 37
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          |Author:    |De León                                              |
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          |Version:   |7/14/2015              |Hearing      |7/15/2015       |
          |           |                       |Date:        |                |
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          |Urgency:   |                       |Fiscal:      |                |
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          |Consultant:|Rebecca Newhouse                                     |
          |           |                                                     |
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          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  







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             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  








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             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  








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             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  








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            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  

           
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