BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1383|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                UNFINISHED BUSINESS 


          Bill No:  SB 1383
          Author:   Lara (D), et al.
          Amended:  8/31/16  
          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

           SENATE FLOOR:  21-13, 6/1/16
           AYES:  Allen, Beall, Block, De León, Glazer, Hall, Hancock,  
            Hernandez, Hertzberg, Hill, Jackson, Lara, Leno, Leyva, Liu,  
            Mendoza, Mitchell, Monning, Pavley, Wieckowski, Wolk
           NOES:  Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,  
            Huff, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak
           NO VOTE RECORDED:  Galgiani, Hueso, McGuire, Pan, Roth, Runner

          ASSEMBLY FLOOR:  Not available

           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.








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          Assembly Amendments add new sector-specific targets for organic  
          waste, and methane reductions from the dairy and livestock  
          sector, as well as a number of additional requirements for ARB,  
          and other agencies, in implementing regulations to achieve the  
          emissions targets. Assembly amendments also require state  
          agencies to adopt and consider, as appropriate, policies and  
          incentives to increase the production of renewable gas.


          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.).


           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 coordinate  
             with other state and local governments; hold at least three  








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             public hearings; evaluate the best available scientific,  
             technological, and economic information to ensure the  
             strategy is cost effective and technologically feasible; and  
             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 Internet Web site at least one month  
             prior to approval. 


           4) Establishes a target of 50% reduction in the statewide  
             disposal of organic waste from the 2014 level by 2020 and a  
             75% reduction by 2025, and requires CalRecycle and ARB to  
             adopt regulations to achieve the organic waste reduction  
             targets.


           5) Prohibits the above regulations from establishing numeric  
             organic waste disposal limits for individual landfills and  
             authorizes the regulation to:


              a)    Require local jurisdictions to impose requirements on  
                generators, as specified, and penalties for noncompliance.  
                 


              b)    Include different levels of requirements for local  
                jurisdictions and phased timelines for meeting 2020, and  
                2025 goals, as specified.


              c)    Include penalties for noncompliance, as specified.


           6) Requires the above CalRecycle and ARB regulations to:


              a)    Take effect on or after January 1, 2022, as specified.









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              b)    Include requirements intended to recover at least 20%  
                of edible food currently disposed of, by 2025.


           7) Authorizes a local jurisdiction to charge and collect fees  
             to recover costs incurred in complying with the organic waste  
             reduction targets. 


           8) Requires CalRecycle, in consultation with ARB, to analyze  
             progress in achieving the organic waste reduction goals, as  
             specified.


           9) Authorizes CalRecycle to include incentives or additional  
             requirements in the regulations to facilitate progress in  
             meeting the organic waste reduction goals if CalRecycle  
             determines that significant progress has not been made.


           10)Prohibits ARB from adopting additional requirements to  
             control methane emissions from the disposal of organics  
             before January 1, 2025, other than through landfill methane  
             control. 


           11)Requires ARB, in consultation with the California Department  
             of Food and Agriculture (CDFA) to adopt regulations to reduce  
             methane emissions from livestock and dairy manure management  
             operations by up to 40% below 2013 levels by 2030.


           12)Requires ARB, prior to adopting manure management  
             regulations, to do the following:


              a)    Work with stakeholders, as specified, to address  
                challenges and barriers to the development of dairy  
                methane reduction projects.










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              b)    Hold a minimum of three public meetings, as specified.


              c)    Conduct or consider livestock and dairy operation  
                research on dairy methane reduction projects and consider  
                developing and adopting methane reduction protocols. 


           13)Requires ARB post a report on their Internet Web site on  
             their progress in meeting with stakeholders, holding public  
             meetings, conducting research, and developing protocols, as  
             required above.  


           14)Specifies that the regulations shall be implemented on or  
             after January 1, 2024, if ARB, in consultation with CDFA,  
             determines that the regulations are technologically feasible,  
             economically feasible, as specified, and cost effective and  
             that they include provisions to minimize and mitigate  
             potential leakage, and evaluate achievements made by  
             incentives.


           15)Requires ARB, in consultation with CDFA, to analyze progress  
             by July 1, 2020, toward achieving the methane reduction  
             targets for the dairy and livestock sector, and authorizes  
             ARB, in consultation with CDFA and stakeholders to reduce the  
             methane reduction goal for the dairy and livestock sector if  
             it is determined that progress has not been made in meeting  
             targets due to insufficient funding, or technical or market  
             barriers.


           16)Requires ARB, in consultation with PUC and CEC, to establish  
             energy infrastructure development and procurement policies to  
             encourage dairy biomethane projects to meet the methane  
             reduction goals for that sector, and requires PUC and CEC to  
             direct gas corporations to implement at least five dairy  
             biomethane pilot projects, as specified.


           17)Requires ARB to provide guidance on credits generated  








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             pursuant to the low carbon fuels standard, and cap-and-trade  
             program, and ensure that projects developed prior to  
             implementation of adopted regulations in the dairy and  
             livestock sector receive credit for at least 10 years, and be  
             eligible for an extension of credits, as specified.


           18)Requires ARB to develop a pilot financial mechanism to  
             reduce economic uncertainty associated with the value of  
             environmental credits, including credits generated pursuant  
             to the low carbon fuels standard, and cap-and-trade program,  
             and make recommendations, as specified. 


           19)  Specifies enteric emissions reductions may only be  
             achieved through incentive based mechanisms, until ARB, in  
             consultation with CDFA makes specified findings, but  
             authorizes voluntary enteric emissions reductions to be used  
             toward meeting the methane emission reduction goals for the  
             livestock and dairy sector.


           20)Specifies that the requirements in adopting dairy and  
             livestock regulations do not limit the authority of ARB to  
             acquire planning and baseline information.


           21)Prohibits ARB from adopting methane emission reduction  
             regulations controlling methane emissions from dairy and  
             livestock operation to achieve GHG emissions reductions other  
             than those required pursuant to this bill. 


           22)Requires CEC, in consultation with ARB and PUC, to develop  
             recommendations for the development and use of renewable gas  
             as part of the 2017 Integrated Energy Policy Report, as  
             specified.


           23)Requires state agencies to consider, and as appropriate,  
             adopt policies and incentives to significantly increase the  
             sustainable production and use of renewable gas, based on the  








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             above recommendations, and requires PUC, in consultation with  
             CEC and ARB, to consider additional policies to support the  
             development and use of renewable gas in the state to reduce  
             short-lived climate pollutants, based on the above  
             recommendations.


           24)Requires priority for the consideration and adoption of  
             policies above, be given to fuels with the greatest GHG  
             emissions benefits, as specified.


          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  
            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  








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            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 has a global warming  
            potential 3200 times that of CO2 on a 20-year time scale. 

            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.  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.  HFCs, on average, have a global warming  
            potential 1600 times that of CO2 on a 20-year time scale. 

          2)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  








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            emissions.  

            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.  








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            "A Southern California Children's Health study that examined  
            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. 

            SB 1383 requires ARB to conduct public hearings and ensure the  
            strategy is cost effective and technologically feasible, as  
            well as consider other public health, job growth, and  








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            technological innovation benefits.  Because of the additional  
            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 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).




          SUPPORT:   (Verified8/31/16)


          Alliance of Nurses for Healthy Environment
          All Power Labs
          American Academy of Pediatrics - California
          American Cancer Society Cancer Action Network, California
          American Heart Association, California
          American Lung Association in California
          Anaergia
          Asthma Coalition of Los Angeles County
          Atlas ReFuel
          Audubon California
          Bay Area Regional Health Inequities Initiative
          Baz Allergy, Asthma and Sinus Center, Central Valley and Bay  
          Area
          Bioenergy Association of California
          Bonnie J. Addario Lung Cancer Foundation








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          Breathe California
          California Association of Environmental Health Officers
          California Association of Sanitation Agencies
          California Bicycle Coalition
          California Black Health Network, Inc.
          California Conference of Directors of Environmental Health
          California Hydrogen Business Council
          California League of Conservation Voters
          California Medical Association
          California Natural Gas Vehicle Coalition
          Californians Against Waste
          California Nurses Association
          California Pan-Ethnic Health Network
          California Public Health Association - North
          California Refuse Recycling Council
          California Thoracic Society
          California Walks
          CalPIRG
          Center for Climate Change and Health, Public Health Institute
          Central California Asthma Collaborative
          Clean Energy Renewables
          Climate Resolve
          Climate 911
          Coalition for Clean Air
          Coastal Environmental Rights Foundation
          CR & R
          Dignity Health
          Environmental Defense Fund
          Environment California
          Harvest Power, Inc.
          Health Care Without Harm
          Health African American Families II
          Health Officers Association of California
          Inland Empire Disposal Association
          Long Beach Alliance for Children with Asthma
          Los Angeles County Department of Public Works
          Los Angeles County Waste Management
          Lutheran Office of Public Policy - California
          Maternal and Child Health Access (Los Angeles)
          Natural Resources Defense Council
          Network of Ethnic Physician Organizations
          Next Gen Climate 








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          Phoenix Energy
          Physicians for Social Responsibility, Los Angeles
          Physicians, Scientists and Engineers Healthy Energy
          Physicians for Social Responsibility/Sacramento
          Prevention Institute
          RAMP and Community Action to Fight Asthma
          Recology
          Republic Services, Inc.
                                                                                       San Francisco Bay Area Chapter, Physicians for Social  
          Responsibility
          San Joaquin County Asthma and COPD Coalition
          Sierra Energy
          Santa Clara County Public Health Department
          Solid Waste Association of Orange County
          St. John's Well Child and Family Centers (Los Angeles)
          The Trust for Public Land
          TSS Consultants
          Voices for Progress
          West Biofuels
          29 Individuals


          OPPOSITION:   (Verified8/31/16)


          Asian Pacific Environmental Network
          Association of Home Appliance Manufacturers
          California Business Properties Association
          California Chamber of Commerce
          California Fresh Fruit Association
          California Grain & Feed Association
          California Independent Petroleum Association
          California Manufacturers & Technology Association
          California Retailers Association
          Center for Food Safety
          Center for Race Poverty & the Environment Food and Water Watch  
          Leadership Counsel for Justice and Accountability Communities  
          for a Better Environment Center for Community Action for  
          Environmental Justice
          Comite ROSAS
          Committee for a Better Arvin
          Committee for a Better Shafter








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          Delano Guardians
          Greenfield Walking Group.
          Lamont Parent Partners
          Los Angeles County, Solid Waste Management Committee/Integrated  
          Waste Management Task Force
          National Federation of Independent Business
          Nisei Farmers League
          Western Agricultural Processors Association
          Western Growers Association
          Western Plant Health Association
          Western States Petroleum Association

          Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
          8/31/16 22:02:54


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