BILL ANALYSIS Ó SB 1383 Page 1 SENATE THIRD READING SB 1383 (Lara) As Amended August 15, 2016 Majority vote SENATE VOTE: 21-13 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+-------------------| |Natural |6-1 |Williams, Cristina |Harper | |Resources | |Garcia, Gomez, | | | | |McCarty, Mark Stone, | | | | |Wood | | | | | | | |----------------+-----+-----------------------+-------------------| |Appropriations |11-4 |Gonzalez, Bloom, |Bigelow, Chang, | | | |Bonilla, Bonta, |Jones, Obernolte | | | |Eggman, Eduardo | | | | |Garcia, Quirk, | | | | |Santiago, Weber, Wood, | | | | |McCarty | | | | | | | | | | | | ------------------------------------------------------------------ SB 1383 Page 2 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. 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 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 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. EXISTING LAW: 1)Requires ARB, pursuant to California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488, Statutes of 2006), to adopt a statewide greenhouse gas (GHG) emissions limit SB 1383 Page 3 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 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. FISCAL EFFECT: According to the Assembly Appropriations Committee, 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). COMMENTS: 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 SB 1383 Page 4 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 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 in 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, 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. SB 1383 Page 5 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. 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 gases, 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. 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 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. SB 1383 Page 6 SB 605 requires ARB to complete a comprehensive strategy to reduce emissions of SLCPs by January 1, 2016. Following the release of a concept paper and a draft strategy, on April 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: 1)Removal and replacement of old fireplaces and woodstoves; 2)Implementing a sustainable freight strategy 3)Regulations for best management practices for new dairies; 4)Financial incentives for manure management and dairy digesters; 5)Requiring organics diversion from landfills; 6)Regulations to reduce methane emissions from oil and gas production, processing and storage; 7)Financial incentives for low-GWP refrigeration early adoption; and 8)Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases. ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for SB 1383 Page 7 stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts. 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 (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. Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0004385 SB 1383 Page 8