BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
721 (Steinberg)
Hearing Date: 05/28/2009 Amended: 4/23/2009
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
SB 721 (Steinberg)
Page 2
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BILL SUMMARY: SB 721 establishes in statute the Climate Action
Team, with specified membership. The bill requires the Climate
Action Team to coordinate state policy with respect to the
reduction of greenhouse gas emissions. The bill requires the
Climate Action Team to develop specified reports and plans. The
bill also requires that certain research and development funds
administered by the Department of Transportation be spent
consistent with those plans.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
CAT staffing and report $300 $600 Special
*
preparation
Holding public meetingsUnknown, likely minor costs Special
*
Energy Commission $230 $460 Special
**
Research coordination
Reporting by other agencies Unknown, potentially up to
$400 Special /
on future reduction strategies General
***
* Currently, climate change-related activities are supported
various existing special fund balances. AB 32 allows the
imposition of a fee to support these activities.
** Public Interest Research, Development, and Demonstration
Fund. These expenditures will largely be absorbed within
existing resources. There may be some reduction in research
funding in future years.
*** The fund source for these activities would vary by agency.
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STAFF COMMENTS: Suspense File.
SB 721 (Steinberg)
Page 2
Under Executive Orders S-3-05 and S-20-06, the Governor directed
the California Environmental Protection Agency to coordinate
multi-agency efforts to meet greenhouse gas emission reduction
targets and created the Climate Action Team to engage in certain
activities relating to the California Global Warming Solutions
Act of 2006 (AB 32, Nunez).
SB 721 would establish in statute the Climate Action Team,
chaired by the Secretary for Environmental Protection, with a
specified membership. The bill would add the Secretary of the
Department of Consumer Affairs and the Secretary of Labor and
Workforce Development to the Climate Action Team. On the other
hand, the current Climate Action Team includes representatives
of several state departments not included under this bill.
The bill requires the Climate Action Team to coordinate state
policy to meet greenhouse gas emission reduction goals. The bill
requires the Climate Action Team to prepare an annual strategic
research, development, demonstration, and deployment plan that
addresses technologies and practices that will reduce greenhouse
gas emissions. The bill also requires the Climate Action Team
annually to prepare and adopt a mitigation and adaptation plan.
The bill also requires the Climate Action Team to comply with
state open meeting laws.
Most of the activities required under this bill are currently
performed under Executive Order. Because these activities would
cease at the end of the current administration, this bill would
increase state costs after that time.
Under current law, state agencies are required to report on
their greenhouse gas emissions and actions taken to reduce
emissions. This bill would add a requirement that state agencies
report on technologically feasible and cost-effective measures
related to their programs that require regulatory or statutory
changes to implement, including an estimate of the reduced
greenhouse gas emissions from doing so.
The bill requires that research and development funds allocated
for clean energy and related purposes to the Department of
Transportation be spent in a manner consistent with the research
and development plan adopted by the Climate Action Team.
SB 721 (Steinberg)
Page 2
SB 1760 (Perata) in the previous session was substantially
similar to this bill. SB 1760 was vetoed by the Governor. The
veto message stated:
This bill would codify the Climate Action Team (CAT) originally
established by Executive Order S-3-05. The bill also directs
CAT, beginning January 1, 2010, to prepare an annual strategic
research, development, and demonstration plan and adopt a
biennial climate change impact adaptation and protection plan.
The CAT, under leadership from the Secretary of the California
Environmental Protection Agency (EPA), has successfully
coordinated the climate change activities of state agencies for
three years.
As we move forward, they will continue to play a greater role in
the implementation of AB 32, the California Global Warming
Solutions Act of 2006. That should be their main focus and to
the extent that coordinating research falls within their
responsibility, they should do so. But, placing this
responsibility exclusively within CAT's jurisdiction is not
appropriate at this time.
For these reasons, I am returning this bill without my
signature.