BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1383|
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                                   THIRD READING 


          Bill No:  SB 1383
          Author:   Lara (D), et al.
          Amended:  4/12/16  
          Vote:     21 

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  4-2, 4/6/16
           AYES:  Wieckowski, Hill, Leno, Pavley
           NOES:  Gaines, Bates
           NO VOTE RECORDED:  Jackson

          SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16
          AYES: Lara, Beall, Hill, McGuire, Mendoza
          NOES: Bates, Nielsen

           SUBJECT:   Short-lived climate pollutants


          SOURCE:    Author

          DIGEST:  This bill requires the Air Resources Board (ARB) to  
          approve and implement the comprehensive short-lived climate  
          pollutant 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.

          ANALYSIS:  
          
          Existing law:  

          1)Requires, under the California Global Warming Solutions Act of  
            2006, 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.).








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          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 begin implementing 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)Requires ARB, prior to approving the strategy, to do all of  
            the following:

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

             b)   Hold at least three public hearings in geographically  
               diverse locations in the state;

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

             d)   Incorporate and prioritize, as appropriate, measures and  
               actions that provide cobenefits, as specified. 

          3)Requires ARB to publicly notice the strategy and post a copy  
            of the strategy on their Web site at least one month prior to  
            approval. 

          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  








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            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, or 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 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 SLCPs 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 and the proposed  
            Short-Lived Climate Pollutant Strategy, 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 two-thirds of the total  
            black carbon emissions in the state.  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 has  
            several programs to reduce PM emissions from heavy-duty  
            vehicles. Black carbon has a global warming potential 3200  
            times that of CO2 on a 20-year time scale. 









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            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).  
            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. HFCs, on average, have a global  
            warming potential 1600 times that of CO2 on a 20-year time  
            scale. 

          2)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. 

          3)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.  









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            In September of 2015, ARB released a draft SLCP strategy  
            required by SB 605, which was updated in April of this year.   
            The proposed strategy sets targets for methane, black carbon,  
            and reductions in F-gases, of 40%, 50%, and 40%, respectively,  
            by 2030. 

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








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            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  
            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 formally approved the  
            SLCP strategy, and it currently exists in draft form.  The  
            strategy 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 strategy is subject to review under CEQA.  Additionally,  
            SB 1383 requires 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  








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            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.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, the fiscal  
          impact is "unknown, but potentially millions of dollars, in cost  
          pressures to implement the comprehensive strategy. (Greenhouse  
          Gas Reduction Fund)."


          SUPPORT:   (Verified5/27/16)


          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
          Bloom Energy
          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








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          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 
          Santa Clara County Board of Supervisors
          St. John's Well Child and Family Centers, Los Angeles
          Voices for Progress
          18 Individuals


          OPPOSITION:   (Verified5/27/16)


          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 Independent Petroleum Association  
           California Manufacturers &Technology Association
          California Poultry Federation
          California Retailers Association
          Milk Producers Council 
          National Federation of Independent Business








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          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  
          problems.









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          Prepared by:     Rebecca Newhouse / E.Q. / (916) 651-4108
          5/28/16 17:15:09


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