BILL ANALYSIS �
AJR 35
Page 1
ASSEMBLY THIRD READING
AJR 35 (Williams)
As Amended May 16, 2012
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5
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|Ayes:|Chesbro, Lara, Dickinson, |Ayes:|Fuentes, Blumenfield, |
| |Huffman, Monning, Skinner | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Ammiano, Hill, |
| | | |Lara, Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Grove, Halderman |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Urges the President and Congress to enact legislation
to restrict the export of coal for electricity generation to any
country that has not adopted rules on greenhouse gas (GHG)
emissions that are "at least as restrictive" as those adopted by
the U.S.; and, urges the Governor to inform the Governors of
Oregon and Washington of the significant health risks to the
people of the Pacific Coast states if large coal export
terminals and rail car coal transport expansions operate on the
or near the coast. Specifically, this resolution states:
1)California law requires electricity providers to procure at
least 33% of retail sales of electricity from renewable
sources;
2)California has emerged as a global leader in the transition
from fossil fuel dependence to "a clean energy economy;"
3)California limits long-term investments in baseload generation
by utilities to power plants that meet strict GHG emissions
standards;
4)No existing coal plant has demonstrated that it complies with
the GHG emissions limit on long-term investments in baseload
generation;
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5)The U.S. Environmental Protection Agency (U.S. EPA) issued
regulations requiring coal-fired power plants to significantly
reduce emissions of mercury, arsenic, and other toxic
pollutants within four years;
6)Hazardous emissions from coal power plants threaten health
locally and at great distances;
7)Coal exports from U.S. ports to Asia have risen by almost 240%
from 3.8 million tons in 2009 to over 13 million tons in 2010;
8)The environmental consequences of massive coal exports to Asia
are severe, including "the burning of millions of tons of coal
into the atmosphere" and increased mountaintop removal
projects;
9)Burning coal for electricity generation worldwide is the main
cause of global warming pollution and the planetary climate
crisis; and,
10)Coal burning has contributed to significant human health
risks in all age groups through the emissions of ozone, sulfur
dioxide, particulate matter, nitrogen oxides, mercury, and
carbon dioxide.
EXISTING LAW :
1)Under the federal Clean Air Act:
a) Requires each major new and modified source of air
pollution to undergo "new source review" to ensure that
facilities install the best available control equipment,
obtain emission reduction credits, or "offsets," for any
new emissions, and comply with any other requirement to
ensure that the new and modified sources do not adversely
affect air quality; and,
b) Provides that, except as otherwise stated, the Act does
not preclude a state or any political subdivision from
adopting standards or requirements for the reduction of air
pollution.
2)Designates the state Air Resources Board (ARB) as the air
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pollution control agency responsible for the coordination of
the activities of air pollution control districts and air
quality management districts for the purposes of the federal
Clean Air Act.
3)Requires, subject to the powers of the ARB, air districts to
adopt and enforce rules and regulations to achieve and
maintain the state and federal ambient air quality standards
in all areas affected by non-vehicular sources under their
jurisdiction.
4)Authorizes each air district to establish a permit system that
requires, except as specified, that before any person builds,
erects, alters, replaces, operates, or uses any article,
machine, equipment, or other contrivance that may cause the
issuance of air contaminants, the person obtain a permit from
the air pollution control officer of the district.
5)Grants the California Energy Commission (CEC) exclusive
authority to license thermal power plants 50 megawatts and
larger and requires consultation with specified agencies,
including the applicable air district.
6)Requires the CEC to find that a proposed power plant conforms
to a variety of standards, including applicable air quality
standards. The CEC may not find that a power plant conforms
to applicable air quality standards unless the applicable air
district certifies that complete emissions offsets for the
proposed plant have been identified and will be obtained by
the applicant within the time required by the district's
rules. The applicant must obtain any required emission
offsets within the time required by the applicable district
rules, consistent with any applicable federal and state laws
and regulations, and prior to the commencement of the
operation of the power plant.
7)Limits long-term investments in baseload generation by the
state's utilities to power plants that meet an emissions
performance standard (EPS) jointly established by the
California Energy Commission (CEC) and the California Public
Utilities Commission.
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8)The Renewables Portfolio Standard (RPS) requires
investor-owned utilities (IOUs), publicly-owned utilities
(POUs) and certain other retail sellers of electricity to
achieve the following renewable energy portfolio targets:
a) 20% on average from January 1, 2011 to December 31,
2013;
b) 25% by December 31, 2016; and,
c) 33% by December 31, 2020 and each year thereafter.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this resolution has negligible state costs.
COMMENTS : According to the author, "the burning of coal to
generate electricity is the largest single source of human-made
global warming pollution in the world, and a significant source
of hazardous air pollution? Even as developed countries close
or limit the construction of coal-fired power plants out of
concern over pollution and climate-warming emissions, coal has
found a rapidly expanding market elsewhere: Asia, particularly
China. The United States now ships coal to China via Canada, but
coal companies are scouting for new loading ports. As a result,
not only are the pollutants that developed countries have tried
to reduce finding their way into the atmosphere anyway, but
ships chugging halfway around the globe are spewing still more."
The Center for Climate and Energy Solutions cites the use of
coal as one of the most significant challenges in addressing
global climate change. Coal use, generally for electricity
generation, accounts for approximately 20% of global GHG
emissions. The U.S. is a coal-rich country; the Center refers
to it as "the Saudi Arabia of coal." At current use rates, U.S.
coal reserves are expected to last well over 250 years.
U.S. coal exports are at the highest they've been in twenty
years, fueled by high demand from overseas. Most of the demand
is in Asia, including South Korea, India, Japan, and China. The
coal industry in the U.S. is seeking out new markets, as demand
within the U.S. is weakening. In order to increase exports, the
coal industry is actively trying to site new shipping terminals.
An executive with Cloud Peak Energy, a Wyoming-based coal
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producer, was quoted by National Public Radio as stating, "The
U.S. has lots of coal. It has a wonderful rail infrastructure,
but the piece of the logistical puzzle that is weakest is
terminals. To get to the next level of growth, the new
terminals need to be built."
Coal export terminals have been proposed on the coast of Oregon
and Washington. Earlier this year, a coalition of residents,
environmental, and clean-energy groups took action to block the
exportation of coal and liquefied natural gas from the Port of
Coos Bay in Oregon. The case is pending. Another terminal has
been proposed in Whatcom County, Washington, near Bellingham.
Pacific International Terminals has applied for a "huge
expansion" of the existing Cherry Point marine terminal, which
is located in the Cherry Point Aquatic Reserve. In March, over
800 people attended a meeting regarding the environmental review
process for the facility. Last year, Millennium Bulk Logistics
withdrew its permit application for a proposed "mega-terminal"
for coal export to Asia in Longview, Washington, after facing
substantial opposition and reports of deception relating to the
size of the project.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0003914