BILL ANALYSIS Ó SB 1383 Page 1 Date of Hearing: June 27, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair SB 1383 (Lara) - As Amended April 12, 2016 SENATE VOTE: 21-13 SUBJECT: Short-lived climate pollutants SUMMARY: Requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant (SLCP) strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic black carbon, by 2030. EXISTING LAW: 1)Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to the 1990 level by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2)Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes SB 1383 Page 2 of 2014, to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of SLCPs, defined as an agent that has a relatively short lifetime in the atmosphere and a climate-warming influence that is more potent than carbon dioxide. 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 HFCs, and a 50% reduction in anthropogenic (i.e., non-forest) 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; and d) Incorporate and prioritize, as appropriate, measures and SB 1383 Page 3 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. FISCAL EFFECT: According to the Senate Appropriations Committee, unknown, but potentially millions of dollars in cost pressures to implement the comprehensive strategy (Greenhouse Gas Reduction Fund). COMMENTS: 1)Background. The 5th assessment report from the Intergovernmental Panel on Climate Change (IPCC) notes that atmospheric concentrations of global warming pollutants have risen to levels unseen in the past 800,000 years. Carbon dioxide concentrations have increased by 40% since pre-industrial times. There is broad scientific consensus that these global GHG emission increases are leading to higher air and water temperatures as well as rising sea levels. Sea level is expected to rise 17 to 66 inches by 2100, and the frequency of extreme events such as heat waves, wildfires, floods, and droughts is expected to increase. Pursuant to AB 32, ARB approved the first Scoping Plan in 2008. The Scoping Plan outlined a suite of measures aimed at achieving 1990-level emissions, a reduction of 80 million metric tons of CO2 (MMT CO2e). Average emission data in the Scoping Plan reveal that transportation accounts for almost 40% of statewide GHG emissions, and electricity and commercial and residential energy sector account for over 30% of statewide GHG emissions. The industrial sector, including refineries, oil and gas production, cement plants, and food processors, was shown to contribute 20% of California's total GHG emissions. The 2008 Scoping Plan recommended that reducing GHG emissions from the wide variety of sources that make up the state's SB 1383 Page 4 emissions profile could best be accomplished through a cap-and-trade program along with a mix of other strategies, including a low carbon fuel standard (LCFS), light-duty vehicle GHG standards, expanding and strengthening existing energy efficiency programs, and building and appliance standards, a 33% Renewable Portfolio Standard (RPS), and regional transportation-related GHG targets. Pursuant to authority under AB 32, the ARB adopted a Low Carbon Fuel Standard in 2009, and a cap-and-trade program approved on December 13, 2011. ARB approved an update to the Scoping Plan on May 22, 2014. The update describes policies, actions, and strategies in the energy, transportation, fuels, agriculture, waste, and natural lands sectors as a means to continue emissions reductions in each of these sectors. The update also asserts that California is on track to meet the near-term 2020 GHG limit and is well positioned to maintain and continue reductions beyond 2020 as required by AB 32. CO2 remains in the atmosphere for centuries, which makes it the most critical GHG to reduce in order to limit long-term climate change. However, climate pollutants including methane, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few weeks to 15 years), but have much higher global warming potentials than CO2. New research suggests that aggressively reducing these short-lived climate pollutants in the short-term, compared to only cutting CO2 emissions, can do more to slow sea level rise and other climate change impacts in the near-term. a) 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 SB 1383 Page 5 associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a GHG 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. b) 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. c) 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. SB 605 (Lara, Chapter 523, Statutes of 2014) requires ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants by January 1, 2016. Following the release of a concept paper and a draft strategy, on April SB 1383 Page 6 11, 2016, ARB published a proposed SLCP Reduction Strategy, which is scheduled for adoption in September. The ARB Strategy recommends the same 40/40/50 targets for methane, HFCs, and black carbon as established by this bill. In addition to the targets, the Strategy proposes specific measures, including: a) Removal and replacement of old fireplaces and woodstoves; b) Implementing a sustainable freight strategy c) Regulations for best management practices for new dairies; d) Financial incentives for manure management and dairy digesters; e) Requiring organics diversion from landfills; f) Regulations to reduce methane emissions from oil and gas production, processing and storage; g) Financial incentives for low-GWP refrigeration early adoption; and h) Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases. SB 1383 Page 7 ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts. 1)Author's statement: 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 (bill) represents the next step in those efforts, to establish a goal to reduce SLCPs 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? Reducing super pollutants in California will have an immediate beneficial effect - dramatically reducing the serious impacts these pollutants have on our air quality and the health of our children. 2)Prior legislation. SB 1383 Page 8 SB 605 (Lara, Chapter 523, Statutes of 2014) requires ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants by January 1, 2016. AB 1496 (Thurmond, Chapter 604, Statutes of 2015) requires ARB to monitor high-emission methane hot-spots in the state; consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports; update relevant policies and programs based on those updated life-cycle analyses; and, review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants. REGISTERED SUPPORT / OPPOSITION: Support Alliance of Nurses for Healthy Environment American Academy of Pediatrics - California American Cancer Society Cancer Action Network, California SB 1383 Page 9 American Lung Association American Heart Association, California Asthma Coalition of Los Angeles County Bay Area Regional Health Inequities Initiative Baz Allergy, Asthma and Sinus Center Ben & Jerry's Bloom Energy Bonnie J. Addario Lung Cancer Foundation Breathe California Burton California Black Health Network, Inc. Californians Against Waste California Conference of Directors of Environmental Health SB 1383 Page 10 California Environmental Justice Alliance California Medical Association California Nurses Association California Pan-Ethic Health Network California Public Health Association - North California State PTA California Thoracic Society California Walks Center for Climate Change and Health , Public Health Institute Center for Food Safety Center on Race, Poverty & the Environment Central California Asthma Collaborative Central California Environmental Justice Network SB 1383 Page 11 Clean Power Campaign Clif Bar & Company Climate 911 Common Sense Kids Action Community Alliance for Agroecology Dignity Health Eileen Fisher Environmental Defense Fund Environmental Health Coalition Fetzer Vineyards Food & Water Watch Health African American Families II Health Care Without Harm SB 1383 Page 12 Health Officers Association of California Institute for Agriculture and Trade Policy Leadership Counsel for Justice and Accountability Levi Strauss & Co. Long Beach Alliance for Children with Asthma Maternal and Child Health Access (Los Angeles) Medical Advocates for Healthy Air Network of Ethnic Physician Organizations Nike, Inc. Patagonia Placer Land Trust PSE Healthy Energy (Physicians, Scientists and Engineers) Physicians for Social Responsibility, Sacramento SB 1383 Page 13 Physicians for Social Responsibility, San Francisco Bay Area Chapter Prevention Institute St. John's Well Child and Family Centers (Los Angeles) Santa Clara County Board of Supervisors Santa Clara County Public Health Department Seventh Generation Sierra Business Council Sierra Club California Sierra Foothill Conservancy The North Face Timberland Truckee Donner Land Trust SB 1383 Page 14 Vans VF Corporation Voices for Progress 30 Individuals Opposition Agricultural Council of California Association of California Egg Farmers Association of Home Appliance Manufacturers California Poultry California Business Properties Association California Cattlemen's Association California Chamber of Commerce California Citrus Mutual SB 1383 Page 15 California Cattlemen's Association 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 California Poultry California Retailers Association CIPA Milk Producers Council NFIB SB 1383 Page 16 Nisei Farmers League Pacific Coast Rendering Association Western Agricultural Processors Association Western Growers Western Plant Health Association WSPA Waste Management Western United Dairymen Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916) 319-2092 SB 1383 Page 17