BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 143
                                                                  Page  1

          Date of Hearing:  April 12, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   ACR 143 (Hagman) - As Introduced:  March 8, 2010
           
          SUBJECT  :  Pollution:  Environmental Protection Agency.

           SUMMARY  :  Resolves that the California Legislature supports  
          federal Senate Joint Resolution 26 to prevent the United States  
          Environmental Protection Agency (EPA) from acting independently  
          to regulate carbon dioxide (CO2) as a pollutant.

           EXISTING STATE LAW  :  pursuant to the California Global Warming  
          Solutions Act (AB 32), requires ARB to adopt a statewide  
          greenhouse gas (GHG) emissions limit equivalent to 1990 levels  
          by 2020 and to adopt rules and regulations to achieve maximum  
          technologically feasible and cost-effective GHG emission  
          reductions.   The ARB classifies CO2 as a greenhouse gas.

           EXISTING FEDERAL LAW  establishes that greenhouse gases are air  
          pollutants under the Clean Air Act, and that the EPA  
          Administrator has the power to determine whether or not  
          emissions of greenhouse gases from new motor vehicles cause or  
          contribute to air pollution which may reasonably be anticipated  
          to endanger public health or welfare, or whether the science is  
          too uncertain to make a reasoned decision, pursuant to a U.S.  
          Supreme Court ruling in 2007 (Massachusetts v. EPA).

           FISCAL EFFECT  :  None

           COMMENTS  :  In April 2007, the United States Supreme Court ruled  
          that greenhouse gases are air pollutants under the Clean Air Act  
          in the verdict of Massachusetts v. EPA.  This ruling included  
          that the EPA Administrator can decide whether or not emissions  
          from greenhouse gases emitted from new motor vehicle use causes,  
          or contributes to, air pollution that may endanger public health  
          or welfare, or, whether the science behind the issue is too  
          uncertain to make a reasoned decision.  

          In April 2009, the EPA declared that CO2 gas is a pollutant that  
          endangers human health or welfare under the Clean Air Act.  At  
          that time, EPA Administrator Lisa Jackson released a rationale  
          statement that the total body of scientific evidence  
          compellingly supports the hypothesis that greenhouse gases  








                                                                  ACR 143
                                                                  Page  2

          threaten public health and welfare.  As part of her decision,  
          the Administrator considered the scientific evidence concerning  
          current and projected future effects of climate change, as well  
          as examining the potential risks and impacts of greenhouse gases  
          on public health and welfare in the U.S.  In addition, the  
          Administrator considered the health risk factors for Americans  
          from greenhouse gases emitted both within and outside of the  
          U.S.  Once the EPA has included a new pollutant under the Clean  
          Air Act, it must then develop and enforce regulations to protect  
          the general public from exposure to it.

          In January 2010, U.S. Senator Lisa Murkowski (R-Alaska), along  
          with 35 other Republicans and 3 Democrats, invoked the  
          Congressional Review Act (CRA) (Public Law 104-121) in an  
          attempt to block the EPA from regulating greenhouse gases under  
          the Clean Air Act by introducing Senate Joint Resolution 26 (SJR  
          26).  This particular CRA is still under review and has not been  
          resolved.  CRAs give federal legislators an option to review  
          every new federal regulation issued by the government agencies  
          and, by passage of a joint resolution, overrule a regulation.   
          CRAs can only be used to overturn regulations that are major  
          rules that have an annual impact on the economy of $100 million  
          or more; major price increases; or other "significant adverse  
          effects" on the economy, as determined by the White House Office  
          of Information and Regulatory Affairs (OIRA).  However, the  
          EPA's decision to classify CO2 as a greenhouse gas was approved  
          by the OIRA prior to its announcement.  In addition, all CRAs  
          must be signed by the President of the United States in order to  
          be valid, and President Obama also approved the EPAs declaration  
          of CO2 gas as a pollutant under the Clean Air Act.  

           Conflict with existing state law.   In 2006, AB 32 was enacted to  
          require ARB to adopt a statewide GHG emissions limit equivalent  
          to 1990 levels by 2020.  ARB is responsible for adopting  
          regulations to achieve this limit, and sources of GHGs are  
          required to monitor and report their emissions to the ARB  
          pursuant to those regulations.  AB 32 defines CO2 as a GHG.  In  
          addition, AB 32 gives the Governor the authority to postpone the  
          implementation of its regulations if the circumstances are  
          justified.

          The author predicts that the EPA's adoption and implementation  
          of regulations restricting CO2 emissions will have serious  
          financial and economic implications for California.  However,  
          most existing economic studies suggest minimal effects, such as  








                                                                  ACR 143
                                                                  Page  3

          relatively high employment growth in "green jobs," and the past  
          few years have seen significant venture capital investments in  
          clean technology sectors in the U.S., most of which has been  
          invested within California.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          American Lung Association in California
          Breathe California 
          California Interfaith Power and Light
          California League of Conservation Voters
          Center for Resource Solutions
          Climate Protection Campaign
          Coalition for Clean Air
          Ella Baker Center for Human Rights
          Environmental Defense Fund
          Global Green USA
          Pacific Forest Trust
          Planning and Conservation League
          TransForm
          Union of Concerned Scientists
           

          Analysis Prepared by  :  Jessica Westbrook / NAT. RES. / (916)  
          319-2092