BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AJR 35|
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THIRD READING
Bill No: AJR 35
Author: Williams (D)
Amended: 6/25/12 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 4-0, 8/7/12
AYES: Simitian, Hancock, Kehoe, Pavley
NO VOTE RECORDED: Strickland, Blakeslee, Lowenthal
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 46-25, 5/29/12 - See last page for vote
SUBJECT : Coal exportation
SOURCE : Renewable Energy Accountability Project
DIGEST : This resolution urges the President of the
United States and the 112th Congress to enact legislation
to restrict the transshipment for waterborne export of coal
for electricity generation to any nation that fails to
adopt rules and regulations on the emissions of greenhouse
gases or hazardous air emissions that are at least as
restrictive as those adopted by the United States or, in
the alternative, 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. It also urges the
Governor of California to inform the Governors of the
States of Oregon and Washington of the significant health
CONTINUED
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risks to the people of the Pacific Coast states if large
coal export terminals and coal transport expansions are
licensed and permitted to operate on or near the coast of
the States of Oregon and Washington.
ANALYSIS :
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 U.S.
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 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.
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.
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, and
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requires the CEC to find that a proposed power plant
conforms to a variety of standards, including applicable
air quality standards.
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.
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 Public Utilities Commission.
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 U.S. 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
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
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and transport expansions are permitted to operate on or
near the coast of Oregon and Washington.
Background
According to the U.S. Energy Information Administration,
the U.S. 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 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 U.S. 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 U.S. 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
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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 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 U.S.,
accounting for over 50% of all domestic human-caused
mercury emissions.
In December 2011, the U.S. 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 U.S. EPA
proposed new federal standards that would limit CO2
emissions for new fossil fuel power plants.
FISCAL EFFECT : Fiscal Com.: Yes
SUPPORT : (Verified 8/9/12)
Renewable Energy Accountability Project (source)
Sierra Club California
ARGUMENTS IN SUPPORT : 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
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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."
ASSEMBLY FLOOR : 46-25, 5/29/12
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bradford, Brownley, Buchanan, Butler,
Charles Calderon, Campos, Carter, Chesbro, Davis,
Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani,
Gatto, Gordon, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Lara, Bonnie Lowenthal, Mendoza,
Mitchell, Monning, Pan, V. Manuel P�rez, Portantino,
Skinner, Swanson, Torres, Wieckowski, Williams, Yamada,
John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nielsen, Olsen, Silva, Smyth, Valadao, Wagner
NO VOTE RECORDED: Bonilla, Cedillo, Fletcher, Hall, Ma,
Nestande, Norby, Perea, Solorio
DLW:m 8/9/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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