BILL ANALYSIS
AB 1373
Page 1
ASSEMBLY THIRD READING
AB 1373 (Skinner)
As Amended June 2, 2009
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5
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|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 |
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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 optimize the efficiency of stationary cooling
technology while significantly reducing 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 energy efficiency of reduced high-GWP
charge systems and dedicated low-GWP systems for stationary
refrigeration and air conditioning, and an assessment of the
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nexus between their energy efficiency and life cycle
greenhouse gas emissions, including direct and indirect
emissions;
b) An analysis of the current technological status of
stationary refrigeration and air conditioning systems using
reduced high-GWP charge and dedicated low-GWP materials and
their potential for use in California;
c) An analysis of economic costs and safety of high-GWP
materials, reduced high-GWP charge systems, and dedicated
low-GWP systems for stationary refrigeration and
air-conditioning;
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 reduced high-GWP charge and dedicated low-GWP systems;
and,
e) An analysis of the potential 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 ARB to develop incentive, pilot, and worker training
programs to encourage the use reduced high-GWP charge and
low-GWP systems beginning December 1, 2011.
7)Authorizes ARB to use funds generated from fees assessed on
high-GWP refrigerants to develop programs to reduce or prevent
the emissions of high-GWP compounds beginning on January 1,
2010.
8)Provides that the ARB is responsible for implementing any
findings of the above study pursuant to its authority under the
Global Warming Solutions Act of 2006.
9)Provides that the bill does not limit the existing authority of
a state agency to adopt or implement regulations, including
regulations pertaining to stationary refrigeration and
air-conditioning equipment.
EXISTING LAW requires:
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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
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.
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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 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.
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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
FN: 0001390