BILL ANALYSIS �
AJR 35
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CONCURRENCE IN SENATE AMENDMENTS
AJR 35 (Williams)
As Amended June 25, 2012
Majority vote
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|ASSEMBLY: |46-25|(May 29, 2012) |SENATE: |22-13|(August 27, |
| | | | | |2012) |
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Original Committee Reference: NAT. RES.
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.
The Senate amendments make a minor technical change.
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
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.
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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.
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,
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c) 33% by December 31, 2020 and each year thereafter.
AS PASSED BY THE ASSEMBLY , this resolution urged the President and
Congress to enact legislation to restrict the transshipment for
waterborne export of coal for electricity generation to any
country that fails to adopt rules and regulations on the emissions
of greenhouse gas emissions; requires the Legislature to urge the
Governor to inform the Governors of Oregon and Washington about
the risks associated with coal export. States that:
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 currently
complies with the GHG emissions limit on long-term investments
in baseload generation;
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 release of hazardous air emissions 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
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in all age groups through the emissions of ozone, sulfur
dioxide, particulate matter, nitrogen oxides, mercury, and
carbon dioxide.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, 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 have 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 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
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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: 0004809