BILL ANALYSIS
AB 2311
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Date of Hearing: April 12, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2311 (Mendoza) - As Amended: April 6, 2010
SUBJECT : California Global Warming Solutions Act of 2006:
transportation fuels: review
SUMMARY : Imposes additional review and reporting requirements
on the Air Resources Board (ARB) for its Low Carbon Fuel
Standard (LCFS) regulation.
EXISTING LAW :
1)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. AB 32
also required ARB to adopt early action measures (EAM) to
reduce GHG emissions prior to this date.
2)Pursuant to the Governor's Executive Order S-01-07, sets a
statewide goal to reduce the carbon intensity of California's
transportation fuels by at least 10% by 2020. The order
required ARB to consider adopting a LCFS to implement this
goal, either as an EAM or in another regulatory proceeding.
In 2009, ARB adopted the LCFS as a regulation, including
provisions for review of its implementation.
THIS BILL :
1)Requires ARB to complete a review of any regulation that
establishes GHG emissions standards or requirements, including
"carbon intensity requirements" (i.e. the LCFS), every three
years beginning January 1, 2012.
2)Requires ARB's executive officer to publish a draft review for
a 45-day comment period at least 90 days prior to presenting
the review to the board, obtain an external peer review during
the comment period, prepare a written response to comments and
peer review at least 15 days prior to presenting to the board,
and revise the final report to address comments.
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3)Requires nine specified agencies, as well as members of the
LCFS advisory panel specified in the LCFS regulation, to
provide written comments during the comment period.
4)Requires each review to be presented to the board at a public
hearing, at which time the board must take public testimony
and adopt, revise, or reject the review by majority vote.
5)Requires each review to address 13 specified factors nearly
identical to those listed in the LCFS regulation's review
provisions.
6)Prior to publishing the draft review, requires the executive
officer to consult with persons that would be significantly
impacted by the regulation to identify investigative or
preventative actions that may be necessary to ensure consumer
acceptance, product availability, acceptable performance, and
equipment reliability, and hold at least two public workshops.
7)Requires ARB, based on information in an adopted review, to
either re-adopt the regulation or revise the compliance
schedule to avoid unreasonable impacts on fuel supplies or
prices, competitiveness of businesses, the economy, and small
businesses.
FISCAL EFFECT : Unknown, but probably significant costs to the
Air Pollution Control Fund to conduct triennial reviews
beginning in 2011.
COMMENTS :
1)Background. In 2007, Governor Schwarzenegger issued Executive
Order S-1-07, calling for a reduction of at least 10 percent
in the carbon intensity of California's transportation fuels
by 2020. The EO instructed the California Environmental
Protection Agency to coordinate activities between the
University of California, the California Energy Commission and
other state agencies to develop and propose a draft compliance
schedule to meet the 2020 target. Furthermore, it directed
ARB to consider initiating regulatory proceedings to establish
and implement the LCFS. In response, ARB identified the LCFS
as an early action item with a regulation to be adopted and
implemented by 2010. The LCFS was adopted by ARB as a
regulation last year. The adopted LCFS regulation includes
provisions for review (codified in Title 17, California Code
AB 2311
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of Regulations, Section 95489), which are the subject of this
bill.
2)Differences between LCFS review adopted by ARB and
requirements of this bill :
a) Unlimited reviews. The regulation requires two reviews,
due in 2012 and 2015. The bill requires a review every
three years (the first due in 2012), with no limit, so
reviews would continue indefinitely, even after the LCFS is
fully implemented.
b) Requirements for public comments, peer review and
hearings. The regulation requires a public process, but
generally leaves the details to ARB's executive officer.
The bill includes specific procedures for public comment
and peer review, including mandatory peer review within a
45-day window and the unusual requirement that a long list
of public and private entities must submit comments. The
bill also requires the review report to be voted on by the
board.
c) Requirement to modify to achieve specified objectives.
The regulation generally leaves actions in response to the
review to the discretion of ARB's executive officer. The
bill requires the board to act on an adopted review by
either readopting the regulation without revision (which
may cause needless delay due to ARB process and OAL review)
or revise the compliance schedule or other provisions to
achieve the specified objectives of avoiding unreasonable
impacts on fuel supplies or prices, competitiveness of
businesses, the economy, and small businesses.
d) Applicable beyond the LCFS. The regulation applies only
to the LCFS. The bill applies to any regulation that
establishes GHG standards or requirements for
transportation fuels.
The author and committee may wish to consider whether the
number reviews required by this bill should be limited to
focus on the most relevant timeframe and limit costs and
burdens associated with the review process. The author and
the committee may also wish to consider which of the
substantive changes the bill would make to the adopted review
procedures listed above are warranted.
AB 2311
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REGISTERED SUPPORT / OPPOSITION :
Support
California Trucking Association (co-sponsor)
Western State Petroleum Association (co-sponsor)
California Chamber of Commerce
Opposition
American Lung Association
Bay Area Air Quality Management District
Breathe California
California Air Pollution Control Officers Association
Clean Energy
Coalition for Clean Air
Energy Independence Now
Environmental Defense Fund
Environmental Entrepreneurs
Natural Resources Defense Council
Planning and Conservation League
Sierra Club California
Union of Concerned Scientists
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092