BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1383 (Lara) - Short-lived climate pollutants ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 12, 2016 |Policy Vote: E.Q. 4 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 2, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- 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 SB 1383 (Lara) Page 1 of ? 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% SB 1383 (Lara) Page 2 of ? 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. SB 1383 (Lara) Page 3 of ? -- END --