BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1425|
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THIRD READING
Bill No: SB 1425
Author: Pavley (D)
Amended: 3/28/16
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 4/6/16
AYES: Wieckowski, Bates, Hill, Leno, Pavley
NO VOTE RECORDED: Gaines, Jackson
SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/27/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza
NOES: Nielsen
SUBJECT: Water-energy nexus registry
SOURCE: Author
DIGEST: This bill requires the California Air Resources Board
(ARB), in consultation with relevant state agencies and The
California Climate Action Registry, to develop a registry of
greenhouse gas (GHG) emissions resulting from the water-energy
nexus.
ANALYSIS: Existing law, under the California Global Warming
Solutions Act of 2006 (also known as AB 32) (Health and Safety
Code §38500 et seq.):
1)Requires ARB to determine the 1990 GHG emissions level and
approve a statewide GHG emissions limit that is equivalent to
that level, to be achieved by 2020.
2)Requires ARB to adopt, before January 1, 2008, regulations to
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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.
3)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, 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
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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 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,
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verify and report the carbon in their operations.
2) Water, energy use, and GHGs. According to the California
Energy Resources Conservation and Development Commission
(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.
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
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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: a) help various
entities in the state to establish emissions baselines; b)
encourage voluntary actions to increase energy efficiency and
reduce GHG emissions; c) enable participating entities to
record voluntary GHG emissions reductions made after 1990 in
a consistent format that is supported by third-party
verification; d) ensure that sources in the state receive
appropriate consideration for verified emissions reductions
under any future federal regulatory regime relating to
greenhouse gas emissions; e) recognize, publicize, and
promote registrants making voluntary reductions; and f)
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
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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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
One-time cost of $475,000 (Cost of Implementation Fee) for
programming costs to develop the electronic registry platform.
Ongoing costs, likely in the range of $2 to $3 million (Cost
of Implementation Fee), to administer the program.
SUPPORT: (Verified5/27/16)
California League of Conservation Voters
Clean Water Action
Environment California
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Environmental Entrepreneurs
Lutheran Office of Public Policy, California
Mono Lake Committee
Sonoma County Water Agency
The Climate Registry
Tree People
Union of Concerned Scientists
U.S. Green Building Council, California Chapter
Wholly H20
OPPOSITION: (Verified5/27/16)
None received
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
5/28/16 16:46:14
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