BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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                |                   |
          |                |     |                       |                   |
          |                |     |                       |                   |
           ------------------------------------------------------------------ 










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          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  








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            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  








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          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.  








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          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. 









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          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  








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          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


















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