BILL ANALYSIS
AB 1373
Page 1
Date of Hearing: April 20, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AB 1373 (Skinner) - As Amended: April 14, 2009
SUBJECT : High global warming potential (GWP): refrigerants
SUMMARY : Requires the California Energy Commission (CEC), on or
before December 1, 2011, to assess, in consultation with the
State Air Resources Board (ARB) the potential to dramatically
reduce the use and emissions of high-GWP compounds in stationary
refrigeration and air-conditioning industry in California.
EXISTING LAW :
1)Requires ARB to adopt a statewide greenhouse gas (GHG)
emissions limit equivalent to 1990 levels by 2020 and adopt
regulations to achieve maximum technologically feasible and
cost-effective GHG emission reductions.
2)Requires CEC to adopt and periodically update lighting,
insulation climate control system, and other building design
and construction standards (known as Title 24 standards) that
increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings.
FISCAL EFFECT : Unknown
THIS BILL :
1)Requires the CEC, as part of its 2011 update to the energy
efficiency standards under Title 24, to assess, in
consultation with ARB, the potential to dramatically reduce
the use and emissions of high-GWP compounds in stationary
refrigeration and air-conditioning industry in California on
or before December 1, 2011, so long as existing staff and
funds are available.
2)Defines "high-GWP" to mean a global warming potential that is
greater than 150 carbon dioxide equivalents.
3)Defines "low-GWP" to mean a global warming potential that is
less than or equal to 150 carbon dioxide equivalents.
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4)Specifies that the assessment include:
a) An analysis of the nexus between energy efficiency and
GHG emissions within stationary refrigeration and air
conditioning systems, and an assessment of the energy
efficiency of low-GWP systems;
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b) An analysis of the current technological status of
stationary refrigerant and air conditioning systems using
low-GWP materials and their potential for use in California
by 2020;
c) An analysis of economic costs and safety of low-GWP
materials;
d) Identification of existing laws, codes, regulations and
incentive programs pertinent to the safety and energy
efficiency of stationary refrigeration and air
conditioning; and an analysis of how they can be modified
to promote the use of low-GWP refrigerants; and
e) Recommendations for new incentive programs and pilot
programs.
5)Requires the CEC, on or before January 1, 2012, to submit the
study to the Legislature.
6)Authorizes the CEC and ARB to offer incentives and develop
pilot projects to encourage the use of low-GWP refrigerants;
ARB can also develop relevant worker training programs.
COMMENTS : According to the author's office, California's
commercial refrigerators and air conditioners leak high GWP
gases that are typically 1,500 and 4,000 times more powerful
than carbon dioxide in contributing to global warming.
According to the ARB, the 200,000 individual facilities that are
estimated to use these substances in California release the
equivalent of 32 million metric tons (MMT) of carbon dioxide
(CO2), roughly equal to the CO2 emissions of nearly six million
cars.
The author states that while the commercial refrigeration and
air-conditioning industry in Europe and Australia have already
begun installing systems using climate friendly low-GWP
refrigerants, the U.S. market has lagged. These systems, using
"natural" refrigerants like CO2, hydrocarbon and ammonia, have
low GHG emissions and have the potential to use less energy. As
shown by the lack of market adoption of alternative,
climate-friendly systems in the state, California lacks the
incentives and regulatory structure to facilitate large-scale
adoption of low-GWP refrigerants.
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1)Background. High-GWP gases are used as refrigerants in a wide
variety of stationary air conditioning and refrigeration
equipment such as chillers, supermarket systems, industrial
process refrigeration, refrigerated vending machines. They
include: chlorofluorocarbons (CFCs) and
hydrochlorofluorocarbons (HCFCs), ozone depleting substances
(ODS) that are regulated under the U.S. Clean Air Act; and
hydrofluorocarbons (HFCs), non-ozone depleting substitutes,
but like the CFCs and HCFCs, are potent global warming gases.
Leaks from these systems are commonplace and their leak rates
are estimated to range from 35-100 percent depending on the
system. For large systems, both direct (leaks from vibration,
thermal expansion, and ruptures) and indirect (inefficient
energy use, lack of heat recovery) CO2-equivalent emissions
amount to approximately five MMT/year. A single, significant
leaking system can emit over 7,000 metric tons of emissions.
According to the ARB, total emissions from this sector are
expected to grow to over 35 MMT by 2020.
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2)Existing regulations focus on controlling leaks. Federal
Clean Air Act regulations prohibit the intentional release of
ODS refrigerants, require the repair, retrofit, or replacement
of certain equipment, set certification requirements for
equipment and technicians, and restrict the sale of
refrigerants to certified technicians. In addition to federal
record-keeping requirements, the South Coast Air Quality
Management District (SCAQMD) imposes a reporting requirement
for certain systems containing more than 50 lbs of an ODS.
Despite these restrictions, US EPA estimates that there are
significant and preventable emissions of these high-GWP gases
from refrigeration and air-conditioning systems due to
improper maintenance, service, and disposal practices, and the
continued reliance on older, inefficient equipment. Moreover,
these restrictions do not apply to HFCs.
3)ARB's early-action measure tightens control of high-GWP
refrigerants. In a regulation set to take effect in January
2010, ARB is proposing to build on existing regulations by
controlling emissions from all high-GWP refrigerants via
reporting, leak tests, repair requirements, best practices for
installation and servicing, sale restrictions, safe disposal.
This measure is projected to reduce emissions by 15 MMT by
2020, leaving about 16 million MMT of emissions uncontrolled.
In order to encourage use of low-GWP alternatives, ARB is also
proposing to impose a mitigation fee on every pound of
refrigerant sold in California.
4)Need for a greater emphasis on alternatives. Given the large
deficit of emissions unaccounted for in ARB's regulation, this
bill takes the first step towards encouraging the adoption of
climate-friendly refrigerants in California. Low-GWP
refrigerants such as ammonia, hydrocarbons, and even carbon
dioxide have been used in Europe, Australia, and Japan for
many years and they are now being used in applications that
previously favored high-GWP refrigerants. While concerns
about safety, toxicity, and efficacy have limited their use in
North America new technology and advancements are beginning to
minimize or eliminate these concerns.
This bill requires the CEC to assess the potential to
dramatically reduce the use and emissions of high-GWP compounds
through the use of market incentives, pilot programs, and other
mechanisms. The author acknowledges that factors such safety,
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available technology, energy efficiency tradeoffs, and
cost-effectiveness must be considered in detail in order to
ensure an orderly transition to low-GWP refrigerants.
REGISTERED SUPPORT / OPPOSITION :
Support
American Lung Association
Breathe California
California League of Conservation Voters
Center for Biological Diversity
Coalition for Clean Air
Environmental Defense Fund
Greenpeace
Sierra Club California
Union of Concerned Scientists
Opposition
None on File
Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092