BILL ANALYSIS
AB 1373
Page 1
ASSEMBLY THIRD READING
AB 1373 (Skinner)
As Amended April 14, 2009
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5
-------------------------------------------------------------------
|Ayes:|Skinner, Brownley, |Ayes:|De Leon, Ammiano, Charles |
| |Chesbro, | |Calderon, Davis, Fuentes, |
| |De Leon, Hill, Huffman | |Hall, John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+----------------------------|
|Nays:|Gilmore, Knight, Logue |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
-------------------------------------------------------------------
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 reduce the use
and emissions of high-global warming potential (GWP) compounds
in stationary refrigeration and air-conditioning industry in
California. Specifically, this bill :
1)Requires the CEC, as part of its 2011 update to the energy
efficiency standards, 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.
4)Specifies that the assessment include:
a) An analysis of the nexus between energy efficiency and
greenhouse gas (GHG) emissions within stationary
AB 1373
Page 2
refrigeration and air conditioning systems, and an
assessment of the energy efficiency of low-GWP systems;
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.
EXISTING LAW requires:
1)ARB to adopt a statewide GHG emissions limit equivalent to
1990 levels by 2020 and adopt regulations to achieve maximum
technologically feasible and cost-effective GHG emission
reductions.
2)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 : According to the Assembly Appropriations
Committee, minor, absorbable costs to CEC to complete the
assessment; cost pressure amounting to several hundred thousands
of dollars annually, to CEC and ARB to implement programs to
AB 1373
Page 3
encourage use of low global warming potential refrigerants.
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 United States (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. 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% 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.
Federal Clean Air Act regulations prohibit the intentional
release of ODS refrigerants, require the repair, retrofit, or
AB 1373
Page 4
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.
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.
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,
available technology, energy efficiency tradeoffs, and
cost-effectiveness must be considered in detail in order to
ensure an orderly transition to low-GWP refrigerants.
Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092
AB 1373
Page 5
FN: 0001148