BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            SB 1383
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          |Author:    |Lara                                                 |
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          |Version:   |2/19/2016              |Hearing      |4/6/2016        |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Rebecca Newhouse                                     |
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          SUBJECT:  Short-lived climate pollutants


            ANALYSIS:
          
          Existing law:  
          
          1) Existing law, under the California Global Warming Solutions  
             Act of 2006 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 (Health and Safety Code §38500 et seq.).

          2) Requires ARB to complete, by January 1, 2016, a comprehensive  
             strategy to reduce emissions of short-lived climate  
             pollutants (SLCPs) in the state. 

          This bill:  

          1)Requires ARB to approve and implement the comprehensive  
            strategy to reduce SLCPs in the state to achieve, from 2013  
            levels, a 40% reduction in methane, a 40% reduction in  
            hydrofluorocarbon gases, and a 50% reduction in anthropogenic  
            black carbon, by 2030. 

          2)Provides that it is the intent of the Legislature that ARB  
            consider, when approving and implementing the plan, all of the  
            following:







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             a)   Coordinating with other state and local governments to  
               develop measures identified in the strategy;

             b)   Holding at least three public hearings in geographically  
               diverse locations in the state;
             c)   Evaluating the best available scientific, technological,  
               and economic information to ensure the strategy is cost  
               effective and technologically feasible;

             d)   Consider the impact of the strategy on:

               i)     Job growth and local economic benefits in the state;

               ii)    Public health benefits for residents, particularly  
                 in disadvantaged communities;

               iii)   Potential for innovation in technology, energy, and  
                 resource management practices. 

            Background
             
          1) Short-lived Climate Pollutants. Greenhouse gases or climate  
             pollutants, such as CO2, work to warm the earth by trapping  
             solar radiation in the earth's atmosphere.  Depending on the  
             molecule, these pollutants can vary greatly in their ability  
             to trap heat, which is termed their global warming potential,  
             and the length of time they remain in the atmosphere.  CO2  
             remains in the atmosphere for centuries, which makes it the  
             most critical greenhouse gas to reduce in order to limit  
             long-term climate change.  However, climate pollutants  
             including methane, tropospheric ozone, hydrofluorocarbons  
             (HFCs), and soot (black carbon), are relatively short-lived  
             (anywhere from a few days to a few decades), but when  
             measured in terms of how they heat the atmosphere (global  
             warming potential, of GWP), can be tens, hundreds, or even  
             thousands of times greater than that of CO2.  These climate  
             forcers are termed short-lived climate pollutants (SLCPs).

             Because SLCPs remain in the atmosphere for a relatively short  
             period of time, but have a much higher global warming  
             potential than CO2, efforts aimed at reducing their emissions  
             in their near term would result in more immediate climate,  
             air quality, and public health benefits, than a strategy  








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             focused solely on CO2.  According to ARB's SLCP draft  
             strategy, "while the climate impacts of CO2 reductions take  
             decades or more to materialize, cutting emissions of SLCPs  
             can immediately slow global warming and reduce the impacts of  
             climate change."  Recent research estimates that SCLPs are  
             responsible for about 40% of global warming to date and that  
             actions to reduce SLCP emissions could cut the amount of  
             warming that would occur over the next few decades by half. 

             According to ARB's 2015 updated Scoping Plan, the three  
             short-lived climate pollutants with the greatest implications  
             for California are the following:

             Black carbon:  Black carbon, a component of soot, also known  
             as PM 2.5, comes from diesel engines and incomplete burning  
             of carbon sources.  Wildfires contribute almost 50% of the  
             total black carbon emissions in the state.  Black carbon also  
             darkens the surface of snow and ice, which accelerates heat  
             absorption and melting, and is thought be the second greatest  
             contributor to global climate change, after CO2.  In addition  
             to being a powerful global warming pollutant, black carbon is  
             associated with numerous negative health impacts and is  
             designated a potential human carcinogen.  Black carbon is not  
             listed under AB 32 as a greenhouse gas subject to AB 32  
             regulations.  However, due to known health and air quality  
             impacts, ARB adopted truck and bus regulations in 2008 to  
             control diesel PM emissions.  ARB also administers the Carl  
             Moyer Program, which provides grants to fund "cleaner than  
             required" engine upgrades, or retrofits that reduce PM 2.5  
             and other pollutants. Black Carbon has a global warming  
             potential 3200 times that of CO2 on a 20-year time scale. 

             Methane:  Methane (CH4) is the principal component of natural  
             gas and is also produced biologically under anaerobic  
             conditions in ruminants, landfills, and waste handling.   
             Atmospheric methane concentrations have been increasing as a  
             result of human activities related to agriculture, fossil  
             fuel extraction and distribution, and waste generation and  
             processing.  Many emissions sources of methane are  
             unregulated (e.g., methane from dairy production and fugitive  
             methane emissions from landfills and natural gas  
             distribution). In fact, a 2014 Stanford University study  
             found  that methane emissions may be 50% higher than official  
             estimates from the US EPA. In 2010, ARB approved a regulatory  








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             measure as an AB 32 discrete early action measure that  
             requires installation of landfill gas collection and control  
             systems. ARB has also released draft regulations to reduce  
             fugitive methane from the oil and gas sector.  Methane is  
             about 80 times more powerful as a global warming pollutant  
             than CO2 on a 20-year time scale. 

             Hydrofluorocarbons (HFC):  HFCs (also known as F-gases) are  
             synthetic gases used in refrigeration, air conditioning,  
             insulation foams, solvents, aerosol products, and fire  
             protection.  They are primarily produced for use as  
             substitutes for ozone-depleting substances which are being  
             phased out globally.  Currently, HFCs are a small fraction of  
             the total climate forcing, but they are the fastest growing  
             source of carbon pollution.  ARB has implemented several  
             measures to reduce HFC emissions including low-global warming  
             potential (GWP) requirements for aerosol propellants, a  
             deposit-return recycling program for small cans of air  
             conditioner refrigerant and a refrigerant management program.  
             HFCs, on average, have a global warming potential 1600 times  
             that of CO2 on a 20-year time scale. 

          2) Climate change, environmental quality, and public health. In  
             addition to increasing sea levels and dwindling biodiversity,  
             climate change will have significant impacts on environmental  
             quality and public health. 

             A number of impacts from climate change can lead to worsening  
             air quality.  Longer, hotter days during the dry seasons  
             result in more ground-level pollutants like ozone.   
             Additionally, dry conditions from high temperatures and  
             worsening drought lead to longer fire seasons and increasing  
             wildfire frequency and intensity.

             Climate change can also lead to more frequent and extreme  
             weather.  This includes heavy rainfall events, which can  
             trigger landslides and debris flows that are especially  
             problematic in areas where wildfires have occurred.  Heavy  
             rain events can also overwhelm sewage and water treatment  
             facilities with negative impacts to water quality.  
             Additionally, drought is an important consideration for water  
             quality.  Because of reduced water reserves, groundwater  
             pumping may continue to increase, resulting in higher  
             concentration of pollutants in drinking water.








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             High heat and drought can also facilitate the spread of West  
             Nile Virus (WNV) by aiding the development of mosquitoes,  
             which spread the virus to people, birds, and other animals.   
             Last year in California, the number of mosquitoes carrying  
             WNV surged to unprecedented levels.

          3) Budget and SLCPs. Several appropriations in the Governor's  
             proposed 2016-17 budget proposal are aimed at reducing  
             short-lived climate pollutants through GGRF investments,  
             including $40 million to support a grant program for a new  
             residential wood burning device replacement and incentive  
             program; $20 million for an incentive program to provide new  
             refrigeration technologies with refrigerants with much lower  
             global warming potentials; and $35 million for dairy digester  
             research and development to reduce methane. 

          4) SLCP Strategy.  SB 605 (Lara and Pavley, Chapter 523,  
             Statutes of 2014) directs ARB to develop a comprehensive  
             short-lived climate pollutant strategy by January 1, 2016.   
             In developing the strategy, ARB is required to complete an  
             inventory of sources and emissions of SLCPs in the state  
             based on available data, identify research needs to address  
             data gaps and existing and potential new control measures to  
             reduce emissions.  

             In September of 2015, ARB released a draft SLCP strategy  
             required by SB 605.  The draft strategy sets targets for  
             methane, black carbon, and reductions in F-gases, of 40%,  
             50%, and 40%, respectively, by 2030. Some of the proposed  
             measures to achieve black carbon emissions reductions include  
             replacement of wood-burning stoves, and implementing a  
             sustainable freight strategy. To meet the methane reduction  
             target, the draft strategy proposes manure and enteric  
             management measures, including regulations on new dairies,  
             prohibiting organics in landfills, oil and gas sector methane  
             regulations, and others. F-gases are targeted in the strategy  
             through proposals to provide financial incentives to low GWP  
             refrigerants and bans on very high GWP refrigerants and  
             equipment.  

            Comments
          
          1) Purpose of Bill.  According to the author, "California has  








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             been a proud and bold leader in pursuing environmental  
             policies to reduce climate change and address the sources  
             that cause it.  Those policies have mostly focused on  
             reducing emissions of CO2, the most significant long-term  
             driver of climate change.  This strategy represents the next  
             step in those efforts, to establish a goal to reduce short  
             lived climate pollutants that are among the most harmful  
             emissions to both human health and global climate change.

             "There is an urgent need to develop a strategy to address and  
             reduce these deadly pollutants.  Extensive research links  
             particulate pollution and increased ozone levels to severe  
             and chronic health conditions such as cancer, heart disease,  
             and asthma.  This impact is most profound in children.  One  
             in eleven children in Los Angeles County suffers from asthma.  
              For Black children, the number is one in four.  

             "The impact of air pollution on children is not limited to  
             just heart and lung problems.  Asthma is now the leading  
             medical cause of absenteeism in LA schools, impacting  
             children's learning and development.   Limited opportunities  
             for physical activity due to respiratory illness and poor air  
             quality also contribute to an epidemic of overweight and  
             childhood diabetes that disproportionally impacts Black and  
             Latino communities.

             "Although the problem is statewide, these challenges  
             disproportionally impact poor families and communities of  
             color.  According to the 2015 State of the Air Report from  
             the American Lung Association, the top five most polluted  
             cities in the United States are all in California.  

             "A Southern California Children's Health study that examined  
             the long-term effects of particle pollution on teenagers  
             found that those who grew up in more polluted areas face the  
             increased risk of having underdeveloped lungs, which may  
             never recover to their full capacity. The average drop in  
             lung function was 20 percent below what was expected for the  
             child's age, similar to the impact of growing up in a home  
             with parents who smoked.

             "Reducing super pollutants in California will have an  
             immediate beneficial effect - dramatically reducing the  
             serious impacts these pollutants have on our air quality and  








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             on the health of our children."

          2) What measures will be implemented?  SB 1383 directs ARB to  
             implement the SLCP strategy, required by January 1, 2016  
             pursuant to SB 605 (Lara).  ARB has not yet formally approved  
             the SLCP strategy, and it currently exists in draft form.   
             The draft outlines numerous actions that could be taken, and  
             in some cases are already underway, to address methane, black  
             carbon, and F-gases in the state to meet the 2030 targets.   
             Some of the proposals include:

                           Removal and replacement of old fireplaces and  
                    woodstoves;
                           Implementing a sustainable freight strategy;
                           Regulations for best management practices for  
                    new dairies;
                           Financial incentives for manure management and  
                    dairy digesters;
                           Requiring organics diversion from landfills;
                           Regulations to reduce methane emissions from  
                    oil and gas production, processing and storage;
                           Financial incentives for low-GWP refrigeration  
                    early adoption; and
                           Bans on the sale of very-high GWP refrigerants  
                    and prohibitions on new equipment using high GWP  
                    gases. 

             The draft strategy has not yet been approved by the Board,  
             and is subject to review under CEQA.  Additionally, SB 1383  
             includes legislative intent for ARB to conduct public  
             hearings and ensure the strategy is cost effective and  
             technologically feasible, as well as considering other public  
             health, job growth, and technological innovation benefits.   
             Because of the additional actions and evaluations needed, the  
             approved strategy may change significantly, and it is not  
             clear to what extent all the measures and actions identified  
             in the draft strategy will be implemented as part of the  
             approved strategy pursuant to SB 1383 to meet the targets.  

             However, ARB does note in the report that any regulatory  
             measures developed pursuant to the SLCP Strategy would  
             undergo a public rulemaking process, including workshops, and  
             economic and environmental evaluations.









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          1) AB 32 authority.  HFCs and methane are defined as greenhouse  
             gas emissions under AB 32.  Pursuant to that authority, ARB  
             has implemented several regulations targeting those two  
             short-lived pollutants.  Because those pollutants are  
             included in AB 32, and AB 32 expresses legislative intent  
             that the 2020 GHG emissions limit remains in effect  
             indefinitely, it is unclear whether SB 1383 expands ARB's  
             existing authority to regulate HFCs and methane. 

             However, black carbon is not included as a greenhouse gas  
             under AB 32.  As SB 1383 would establish black carbon as a  
             short-lived climate pollutant, and by definition a greenhouse  
             gas, SB 1383 may expand ARB's current authority to regulate  
             black carbon.   

          2) Approving and implementing the strategy.  SB 1383 directs ARB  
             to approve and implement the strategy they are currently  
             required to complete by January 1, 2016, pursuant to SB 605  
             (Lara).  However, the bill specifies legislative intent that  
             ARB consider, while approving and implementing the strategy,  
             holding public hearings, coordinating with other governmental  
             agencies, evaluating cost-effectiveness and technological  
             feasibility, and assessing cobenefits. How will these  
             considerations be incorporated into the strategy after that  
             strategy has been fully developed, and is in the approval and  
             implementation phase? 

             Additionally, instead of requiring ARB to hold public  
             hearings, coordinate with other agencies, evaluate to ensure  
             the strategy is cost effective and technologically feasible,  
             and assess economic, public health, and technological  
             benefits of the strategy, SB 1383 specifies that it is the  
             intent of the Legislature that ARB consider doing all of the  
             above, while approving and implementing the strategy. 

             For these efforts to inform and be incorporated into the  
             approved strategy, amendments are needed to require ARB,  
             prior to approval of the strategy, to do all of the  
             following:

             a)   Coordinate with state and local governments on measures  
               in the strategy;
          
             b)   Provide three public hearings in geographically diverse  








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               locations of the state;  

             c)   Evaluate the best-available scientific, technological,  
               and economic information to ensure that the strategy is  
               cost effective and technologically feasible.

             d)   Incorporate, and prioritize, as appropriate, measures  
               and actions that provide job growth and local economic  
               benefits in state, public health benefits, particularly in  
               disadvantaged communities, and potential for new innovation  
               in technology, energy, and resource management practices.
          
          1) Implementation.  SB 1383 requires ARB implement the strategy  
             by January 1, 2018. As implementing the strategy will likely  
             involve a full rulemaking process, a clarifying amendment is  
             needed to specify that ARB is required to begin  
             implementation of the strategy by January 1, 2018. 
          
          2) Review prior to approval.  Amendments are needed to require  
             ARB, at least one month prior to approval, to publicly notice  
             consideration of the strategy and post the strategy on their  
             website.

          3) Technical amendment. An amendment is needed to amend the  
             section number for SB 1383, since Section 39731 in the Health  
             and Safety Code already exists.

            Related/Prior Legislation

          SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) requires  
          ARB to develop a short-lived climate pollutant strategy by  
          January 1, 2016.

            SOURCE:                    Author  

           SUPPORT:               

          Alliance of Nurses for Healthy Environment
          American Academy of Pediatrics, California
          American Lung Association in California
          American Heart Association, California
          Asthma Coalition of Los Angeles County
          Bay Area Regional Health Inequities Initiative
          Baz Allergy, Asthma and Sinus Center








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          Bonnie J. Adario Lung Cancer Foundation
          Breathe California
          California Black Health Network, Inc.
          California Conference of Directors of Environmental Health
          California Nurses Association
          California Public Health Association-North
          California Thoracic Society
          California Walks
          CALPIRG
          Center for Climate Change and Health
          Central California Asthma Collaborative
          Climate 911
          Coalition for Clean Air
          Common Sense Kids Action
          Dignity Health
          Environmental Defense Fund
          Health Care Without Harm
          Long Beach Alliance for Children with Asthma
          Maternal and Child Health Access, Los Angeles
          Network for Ethnic Physician Organizations
          Physician Engineers and Scientists Healthy Energy
          Physicians for Social Responsibility, Los Angeles Chapter
          Physicians for Social Responsibility, San Francisco Bay Area  
                         Chapter
          Public Health Institute 
          St. John's Well Child and Family Centers, Los Angeles
          Voices for Progress
          Eighteen individuals

            OPPOSITION:    

          Agricultural Council of California
          Association of California Egg Farmers
          California Business Properties Association
          California Cattlemen's Association
          California Chamber of Commerce
          California Citrus Mutual
          California Cotton Ginners and Growers Association
          California Council for Environmental and Economic Balance
          California Dairies, Inc.
          California Farm Bureau Federation
          California Fresh Fruit Association
          California Grain & Feed Association  
           California Manufacturers &Technology Association








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          California Poultry Federation
          Milk Producers Council 
                                                                       Nisei Farmers League
          Pacific Coast Rendering Association
          Waste Management
          Western Agricultural Processors Association
          Western Growers Association
          Western Plant Health Association
          Western States Petroleum Association
          Western United Dairymen
           

           ARGUMENTS IN  
          SUPPORT:    Supporters state that this bill is the logical 
          follow-up to SB 605, which put a much-needed priority on SLCPs,  
                         which have a 
          much higher global warming potential than carbon dioxide.  
                         Supporters also state 
          that the bill is a vital public health measure that will protect  
                         residents across the 
          state, and especially in the most disadvantaged communities,  
                         from health-
          damaging air pollution, and bring additional health benefits  
                         while reducing the 
          health impacts of climate change. 
            

          ARGUMENTS IN  
          OPPOSITION:    Opponents state that SB 1383 will lead to 
          duplicative regulations and increased costs for operations  
                         within the state, while 
          sacrificing legislative oversight, and will result in economic  
                         and emissions leakage.
          They also note that direct regulations of methane from dairies  
                         will eliminate the
          potential for offsets under the cap-and-trade program.  
                         Agricultural sector 
          opponents state that the reduction mandates in the bill are  
                         unrealistic, and that
          incentives and voluntary reductions can get California to SLCP  
                         goals much more
          quickly than direct regulation.  They also note that a vote for  
                         SB 1383 is essentially 
          supporting ARB's SLCP strategy, which they state has numerous  








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                         problems.
           
           
                                          
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