BILL ANALYSIS �
AJR 35
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: AJR 35
AUTHOR: Williams
AMENDED: June 25, 2012
FISCAL: Yes HEARING DATE: August 7, 2012
URGENCY: No CONSULTANT: Rebecca Newhouse
SUBJECT : COAL EXPORTATION
SUMMARY :
Existing law :
1) Under the federal Clean Air Act (Act), requires each major new
and modified source of air pollution to undergo review to
ensure that facilities install the best available control
equipment and comply with any other requirement to ensure that
the new and modified sources do not adversely affect air
quality. The US Environmental Protection Agency, pursuant to
their authority under the Act, requires coal and oil-fired
power plant facilities to meet standards for mercury and other
toxic air pollutants by 2016.
2) Designates the state Air Resources Board (ARB) as the air
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. (Health and Safety Code �39500).
3) Subject to the powers of the ARB, requires 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. (�40001 et seq.).
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
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the air pollution control officer of the district. (�42300).
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, and requires the CEC to
find that a proposed power plant conforms to a variety of
standards, including applicable air quality standards.
(Public Resources Code �25500 et seq.).
6) Under the Renewable Portfolio Standard, requires
investor-owned utilities, publicly owned utilities and certain
other retail sellers of electricity to achieve 33% of their
energy sales from an eligible renewable electrical generation
facility by December 31, 2020, and establishes portfolio
requirements and a timeline for procurement quantities of
three product categories. (Public Utilities Code �399.11 et
seq.).
7) Prohibits long-term investments by the state's utilities to
power plants unless those power plants meet certain emissions
performance standards jointly established by the CEC and the
California Public Utilities Commission. (�8340).
This bill :
1) Makes various findings related to California laws regarding
energy, and energy procurement, recent EPA regulations
regarding power plant emission reduction standards, the
increase in US coal exports to Asia and associated
environmental consequences, and the environmental and health
consequences of coal burning.
2) Resolves that the Legislature urges the President of the
United States and Congress to either:
a) Enact legislation to restrict the shipment of coal
exports for electricity generation to any nation that does
not have greenhouse gases or hazardous air emission
regulations that are as restrictive as those adopted by the
US; or,
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b) To secure and approve international agreements to ensure
all nations adopt regulations and technology that result in
emissions reductions equal to those in place in the United
States.
3) Resolves that the Legislature urge the Governor of California
to inform the Governors of Oregon and Washington state of the
health risks to the people of the Pacific Coast states if
large coal export terminals and transport expansions are
permitted to operate on or near the coast of Oregon and
Washington.
4) Resolves that the Chief Clerk of the Assembly transmit copies
of this resolution to the President and Vice President of the
United States, the President pro Tempore of the US Senate, the
Speaker of the House of Representatives, each Senator and
Member of Congress from California, and the author for
appropriate distribution.
COMMENTS :
1) Purpose of Bill . 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. Climate
scientists agree that the frequent and extreme weather
disasters the planet has been experiencing are caused by
unchecked global warming 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."
2) Background . According to the US Energy Information
Administration (EIA), the US is home to the largest estimated
recoverable reserves of coal in the world. Over 90% of U.S.
coal consumption is in the electric power sector. In the
United States, the percentage of electricity generated from
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coal has declined 7% from 2010 to 2011. In contrast to
falling domestic coal consumption, global coal demand has
almost doubled since 1980, driven by increases in Asia, where
demand is up over 400% in the span from 1980 to 2010,
primarily from demand in China, which was responsible for
almost half of all global coal consumption in 2010.
Coal exports . The Western United States does not currently
have any ports equipped with the necessary terminals and
machinery to export coal and, thus, ships coal to Asia by way
of Vancouver, British Columbia. The declining domestic coal
markets, coupled with the large US coal reserves have prompted
coal mining companies to investigate the creation or expansion
of terminals in six ports in Washington and Oregon to meet
Asia's anticipated growing demand for coal. It is estimated
that, if full capacity of these export terminals is realized,
the six Pacific Northwest ports could ship 146 million tons of
coal annually to China. In 2011, total US coal exports were
107 million tons.
An opposition coalition of residents, environmental and
clean-energy groups have rallied to halt potential projects at
the Port of Coos Bay, in Oregon, and in Washington at the Port
of Longview and Cherry Point marine terminal, located in the
Cherry Point Aquatic Reserve north of Bellingham, and the Port
of Longview, in Cowlitz County. In Longview, the permit
application for an expanded terminal was withdrawn last year,
after court records revealed that leaders of the company
planning to build the export terminal, Millennium Bulk
Terminals, tried to limit what state officials knew about its
long-term shipping goals during the early permitting process
last year. The Port of Coos Bay is currently involved in a
legal battle with environmental groups over the Port's lack of
transparency regarding terminal plans.
Environmental and health effects of coal . Coal is associated
with numerous negative environmental and health impacts. The
burning of fossil fuels for electricity and heat is the
largest single source of global greenhouse gas emission.
Particulate matter from the burning and transportation of coal
can significantly reduce air quality, and severe exposure to
coal dust can cause various pulmonary diseases. In addition,
according to the EPA, coal-burning power plants release
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significant non-carbon pollutants such as NOx, SO2, and toxics
including mercury, arsenic, nickel, selenium and hexavalent
chromium. Coal-burning power plants are the largest
human-caused source of mercury emissions to the air in the
United States, accounting for over 50 percent of all domestic
human-caused mercury emissions.
In December 2011, the US EPA adopted rules restricting mercury
and hazardous air pollutants that are known or suspected of
causing cancer and other serious health effects.
Additionally, in March of this year, the US EPA proposed new
federal standards that would limit CO2 emissions for new
fossil fuel power plants.
SOURCE : The Renewable Energy Accountability Project
SUPPORT : Sierra Club California
OPPOSITION : None on file