BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 104
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 104 (Oropeza) - As Amended:  April 30, 2009 

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill adds to the list of greenhouse gases (GHGs) to be  
          regulated by the Air Resources Board (ARB), pursuant to AB 32.   
          Specifically, this bill:

          1)Adds nitrogen trifluoride (NF3) and any other GHG designated  
            by the United Nations (UN)  Framework Convention on Climate  
            Change to the list of GHGs regulated by ARB.  

          2)Requires ARB to adopt emission limits and reduction measures  
            for any gas added to the list of GHGs pursuant to this bill  
            within two years of the gas's addition.

           FISCAL EFFECT  

          Negligible costs.

           COMMENTS  

           1)Rationale  .  The author notes that AB 32 explicitly authorized  
            ARB to regulate greenhouse gases largely as those gases were  
            identified by the UN Kyoto Protocol, which was negotiated  
            during the 1990s.  The author claims that when the protocol  
            was negotiated, scientists were unaware of the global warming  
            potential of NF3, and that NF3 was therefore not identified in  
            the protocol.  The author further notes that studies since  
            have found that NF3, which is used in the manufacture of  
            several consumer items, including photovoltaic solar panels,  
            LCD television screens, and microprocessors, has a global  
            warming potential 17,000 times greater than CO2 and persists  
            in the atmosphere 550 years.  The author contends ARB needs  








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            authority to regulate NF3 and other potential GHGs in order to  
            effectively achieve the GHG reduction goals of AB 32.

           2)Background  .  

              a)   AB 32 (N??ez, Chapter 488, Statutes of 2006)  requires  
               California to limit its emissions of GHGs so that, by 2020,  
               those emissions are equal to what they were in 1990. To  
               that end, AB 32 requires ARB to quantify the state's 1990  
               GHG emissions and to adopt, by January 1, 2009, a "scoping  
               plan" that describes the board's plan for achieving the  
               maximum technologically feasible and cost-effective  
               reductions of GHG emissions reductions by 2020.  AB 32  
               requires ARB, on or before January 1, 2011, to adopt GHG  
               emission limits and reduction measures, to become operative  
               on January 1, 2012.

               AB 32 explicitly defines GHGs to include carbon dioxide,  
               methane, nitrous oxide, hydrofluorocarbons,  
               perfluorocarbons, and sulfur hexafluoride.  AB 32 does not  
               state, however, that ARB's authority to regulate the  
               emission of GHGs is limited to that list of six gases.
              
              b)   NF3 Is a Greenhouse Gas With Increasing Industrial Use.    
               In its 2007 report, the International Panel on Climate  
               Change-a scientific intergovernmental body set up by the  
               World Meteorological Organization and by the UN Environment  
               Programme-identified NF3 as a GHG with thousands of times  
               the global warming potential of carbon dioxide that remains  
               in the atmosphere for hundreds of years.  NF3 is  
               increasingly used in industrial applications, largely  
               because of its use to make liquid crystal displays. 
             
           3)Supporters  , including several prominent environmental  
            organizations and the American Federation of State, County &  
            Municipal Employees (AFSME), argue that NF3's extreme global  
            warming potential and increasing industrial use justify its  
            addition to the list of GHG to be regulated by ARB.  In  
            addition, proponents claim that, to achieve the goals of AB  
            32, ARB needs the explicit authority to regulate other GHGs as  
            they identified are by United Nations Framework Convention on  
            Climate Change.

           4)Opponents  , including numerous business and industrial  
            organizations, contend that the Legislature should review UN  








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            Convention decisions on particular emission sources and gases  
            and debate the need for their regulation rather than  
            automatically granting regulatory authority to ARB.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081