BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1383| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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.). SB 1383 Page 2 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 SB 1383 Page 3 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. SB 1383 Page 4 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. SB 1383 Page 5 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 SB 1383 Page 6 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 SB 1383 Page 7 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 SB 1383 Page 8 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 SB 1383 Page 9 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. SB 1383 Page 10 Prepared by: Rebecca Newhouse / E.Q. / (916) 651-4108 5/28/16 17:15:09 **** END ****