BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 1425
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|Author: |Pavley |
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|Version: |3/28/2016 |Hearing |4/6/2016 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Rebecca Newhouse |
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SUBJECT: Water-energy nexus registry
ANALYSIS:
1)Existing law under the California Global Warming Solutions Act of
2006 (also known as AB 32) (Health and Safety Code §38500 et
seq.):
a) Requires the California Air Resources Board (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.
b) Requires ARB to adopt, before January 1, 2008, regulations
to require the reporting and verification of statewide
greenhouse gas emissions and requires those regulations, where
appropriate and to the maximum extent feasible, incorporate the
standards and protocols developed by the California Climate
Action Registry.
c) Specifies that entities that voluntarily participated in the
California Climate Action Registry prior to December 31, 2006,
and have developed a greenhouse gas emissions reporting
program, are not required to significantly alter their
reporting or verification program, except as necessary to
ensure complete and accurate reporting.
This bill:
1) Includes intent language pertaining to the nexus between water,
SB 1425 (Pavley) Page 2 of ?
energy, and GHG emissions reductions.
2) Requires ARB, in consultation with other relevant state agencies,
and the Climate Registry, to develop and administer a registry of
GHG emissions resulting from the water-energy nexus using the
best available data.
3) Specifies that registry participation is voluntary and open to
any entity conducting business in the state.
4) Authorizes a participating entity to register its emissions,
including emissions generated outside of the state, on an
entity-wide basis, and to utilize the services of the registry.
5) Requires ARB, in administering the registry, to do the following:
a) Help participating entities establish emissions baselines.
b) Encourage voluntary actions to increase water and energy
efficiency measures.
c) Enable participating entities to record voluntary
entity-wide GHG emissions reductions made after 1990 in a
consistent format, and that is supported by third-party
verification.
d) Ensure that sources receive appropriate consideration for
entity-level verified emissions reductions under potential
future regulatory regimes or qualification for financing
opportunities related to GHG emissions.
e) Recognize, publicize, and promote participating entities
making voluntary reductions of GHG emissions.
f) Recruit participation in the registry from all economic
sectors and regions of the state.
Background
1) The Climate Registry. SB 1771 (Sher, Chapter 1018, Statutes of
2000) required the Secretary of the Resources Agency to establish
the California Climate Action Registry as a public benefit
nonprofit corporation that would record and register voluntary
greenhouse gas emission reductions made by California entities
after 1990. The bill required the registry to perform various
SB 1425 (Pavley) Page 3 of ?
functions, including adopting standards for verifying emissions
reductions, adopting a list of approved auditors that would
verify emissions reductions, establishing emissions reduction
goals, designing and implementing efficiency improvement plans,
maintaining a record of all emissions baselines and reductions,
and recognizing, publicizing, and promoting entities that
participate in the registry. SB 1771 established a governing
board for the registry made up of the Secretary of the Resources
Agency, the Secretary of Environmental Protection, and five
public members appointed by the Governor.
The California Climate Action Registry closed in December 2010.
The Climate Registry formed as the successor agency to the
California Climate Action Registry. The Climate Registry is a
nonprofit organization, whose board of directors comprises over
50 representatives from U.S. states and Canadian provinces and
territories. The Climate Registry offers tools and services for
organizations to measure, verify and report the carbon in their
operations.
2) Water, energy use, and GHGs. According to the CEC, water-related
energy use in California consumes approximately 20% of the
state's electricity and 30% of the state's non-power plant
natural gas (natural gas not used to produce electricity). The
water sector uses electricity to pump, treat, transport, deliver,
and heat water. The CEC also found that the most
energy-intensive uses of water in California are associated with
end uses by the customer (e.g., heating, processing, and
pressurizing water), and 75% of the electricity and nearly all
of the natural gas use related to water in California is
associated with water heating. Additionally, expected increases
in groundwater pumping, water treatment, and water recycling, due
to drought conditions in the state, mean the energy intensity of
water will likely increase.
State law requires electric utilities to disclose the sources of
the electricity they sell. However, this requirement does not
extend to water utilities that are not retail electricity
providers. An April 2015 report from the Union of Concerned
Scientists titled, Clean Energy Opportunities in California's
Water Sector, reports that although some water and wastewater
utilities independently report the sources of their electricity,
the information is not compiled in a standardized format or
updated on a regular schedule across the water sector.
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Because of this data gap, the report states that it is difficult
to get a clear picture of the amount and type of electricity
California's water and wastewater utilities rely on and that this
information gap makes it difficult to understand how the water
sector's electricity choices impact global warming emissions and
the state's efforts to decarbonize the electricity sector.
Comments
1) Purpose of Bill. According to the author, "Energy and water are
intricately connected, and there is an enormous amount of energy
embedded in our water supply - from the collection, production,
transport, treatment and delivery of water; to the direct
consumption of water; to the collection, treatment, and disposal
or reuse of wastewater. Nearly 20 percent of California's energy
supply is used to move, heat, and treat water.
"While some of the water-energy related climate pollution is
already covered in the state's cap-and-trade program (via the
electricity generation sector), the state does not currently have
a clear accounting of the total greenhouse gas emissions
associated with the water system. Thus, water suppliers,
treaters, distributors and end users currently lack the
information and opportunity to do their part in voluntarily
advancing our climate and water conservation goals.
"SB 1425 establishes a voluntary emissions repository for
projects that reduce the carbon intensity of California's water
system. This new registry will allow for entities such as water
agencies, large water consumers, businesses and others to
voluntarily track, measure, and baseline their greenhouse gas
emissions resulting from the water-energy nexus."
2) Based on the California Climate Action Registry. The California
Climate Action Registry established by SB 1771 (Sher) was
required to, among other things: 1) help various entities in the
state to establish emissions baselines; 2) encourage voluntary
actions to increase energy efficiency and reduce greenhouse gas
emissions; 3) enable participating entities to record voluntary
greenhouse gas emissions reductions made after 1990 in a
consistent format that is supported by third-party verification;
4) ensure that sources in the state receive appropriate
consideration for verified emissions reductions under any future
federal regulatory regime relating to greenhouse gas emissions;
5) recognize, publicize, and promote registrants making voluntary
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reductions; and 6) recruit broad participation in the process
from all economic sectors and regions of the state.
SB 1425 requires ARB to essentially perform those same six
functions in administering the water-energy nexus registry.
Related/Prior Legislation
SB 471 (Pavley, 2015) would have required ARB, in cooperation with
other state agencies, to develop a GHG emissions inventory from the
water system in the state. SB 471 was later amended to establish a
grant and loan program for water projects that result in the net
reduction of GHG emissions. SB 471 was held on the Assembly
Appropriations suspense file.
SOURCE: Author
SUPPORT:
None received
OPPOSITION:
None received
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