BILL ANALYSIS Ó
SB 1383
Page 1
Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1383
(Lara) - As Amended April 12, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Air Resources Board (ARB) to approve and
begin implementing the comprehensive short-lived climate
pollutant (SLCP) strategy by January 1, 2018. Specifically,
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 (HFCs), and a 50%
reduction in anthropogenic (i.e., non-forest) black carbon, by
2030.
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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.
FISCAL EFFECT:
Unknown cost pressures, potentially in the tens of millions of
dollars or more, to fund programs to implement the strategies
(Greenhouse Gas Reduction Fund or other special funds).
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COMMENTS:
1)Purpose. 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.
However, those policies have mostly focused on reducing
emissions of CO2, the most significant long-term driver of
climate change. This bill establishes a goal to reduce SLCPs
that are among the most harmful emissions for both human
health and global climate change.
2)Background. SB 605 (Lara and Pavley, Chapter 523, Statutes of
2014) directed ARB to develop a comprehensive SLCP strategy by
January 1, 2016. In developing the strategy, SB 605 required
ARB to complete an inventory of SLCP sources and emissions,
identify research needs and data gaps, and identify existing
and potential new control measures to reduce SLCP emissions.
In April of 2016, ARB released a proposed SLCP strategy that
set reduction targets for methane, black carbon, and HFCs, of
40%, 50%, and 40%, respectively, by 2030. Some of the proposed
measures to achieve black carbon emissions reductions include
the replacement of wood-burning stoves, and implementation of
a sustainable freight strategy.
To meet the methane reduction target, the proposed strategies
included manure management measures, regulations on new
dairies, prohibiting organics in landfills, and oil and gas
sector methane regulations.
HFCs are targeted in the proposed strategy through initiatives
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to provide financial incentives to low global warming
potential (GWP) refrigerants and bans on very high GWP
refrigerants and equipment.
ARB staff will receive and consider comments on this proposed
strategy and prepare a final strategy to present to the Board
for consideration in fall 2016.
3)GGRF funding for SLCP. The California Global Warming
Solutions Act of 2006 (AB 32, Chapter 488, Statutes of 2006)
required ARB to adopt a statewide greenhouse gas (GHG)
emissions limit equivalent to 1990 levels by 2020 and adopt
regulations to achieve maximum technologically feasible and
cost-effective GHG emission reductions. As part of its AB 32
implementation, ARB adopted a cap-and-trade program for which
the proceeds from the auction or sale of GHG allowances are
deposited in the GGRF available for appropriation by the
Legislature.
To date, cap-and-trade auction revenues have generated over $4
billion. However, the most recent auction, held last month,
generated just over $10 million, much less than expected. The
previous auction (February, 2016) generated over $500 million.
The Governor proposed several GGRF appropriations in the
2016-17 budget for programs aimed at reducing short-lived
climate pollutants including: $40 million to support a grant
program for a residential wood burning device replacement
incentive program; $20 million for refrigeration incentive
program; and $35 million for dairy digester research and
methane reduction. The Legislature did not act on these
items. According to the Assembly Budget Committee, due to
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lower-than-expected auction revenues, decisions on
cap-and-trade funding were deferred until after June 15, 2016.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081