BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1383 (Lara) - Short-lived climate pollutants
          
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          |Version: April 12, 2016         |Policy Vote: E.Q. 4 - 2         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 2, 2016       |Consultant: Narisha Bonakdar    |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 1383 requires the Air Resources Board (ARB) to  
          approve and implement the comprehensive strategy 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. 


          Fiscal  
          Impact:  Unknown, but potentially millions of dollars, in cost  
          pressures to implement the comprehensive strategy. (Greenhouse  
          Gas Reduction Fund).


          Background:1)   
          According to ARB's 2015 updated Scoping Plan, black carbon,  
          methane, and hydrofluorocarbon gases are the three short-lived  
          climate pollutants (SLCP) with the greatest implications for  
          California.  Several appropriations in the Governor's proposed  
          2016-17 budget proposal are aimed at reducing short-lived  
          climate pollutants through GGRF investments, including $40  







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          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. 


          SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directed  
          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 global warming potential  
          (GWP) refrigerants and bans on very high GWP refrigerants and  
          equipment.  




          



          Proposed Law:  
            This bill: 
           Requires the ARB to approve and implement the comprehensive  
            strategy to achieve, from 2013 levels, a 40% reduction in  
            methane, a 40% reduction in hydrofluorocarbon gases, and a 50%  








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            reduction in anthropogenic black carbon, by 2030.


           Provides that it is the intent of the Legislature that ARB  
            consider coordinating with other state and local governments  
            to develop measures identified in the strategy; holding at  
            least three public hearings in geographically diverse  
            locations in the state; and evaluating the best available  
            scientific, technological, and economic information to ensure  
            the strategy is cost effective and technologically feasible,  
            among others.




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


          Staff  
          Comments:1)   
          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, though 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.  


          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.  









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