BILL ANALYSIS �
AB 2050
Page 1
Date of Hearing: April 28, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2050 (Quirk) - As Amended: April 21, 2014
SUBJECT : California Global Warming Solutions Act of 2006:
scoping plan: advisory committee
SUMMARY : Requires the Air Resources Board (ARB) to include
specified items, including proposed greenhouse gas (GHG)
reduction goals for 2050, in the next (2019) AB 32 Scoping Plan
Update and report to the Legislature. Revises the composition
and purpose of the AB 32 Economic and Technology Advancement
Advisory Committee (ETAAC).
EXISTING LAW requires ARB, pursuant to California Global Warming
Solutions Act of 2006 (AB 32), to:
1)Adopt a statewide GHG emissions limit equivalent to 1990
levels by 2020 and adopt regulations to achieve maximum
technologically feasible and cost-effective GHG emission
reductions.
2)Prepare and approve a scoping plan, on or before January 1,
2009 and at once every five years thereafter, for achieving
the maximum technologically feasible and cost-effective
reductions in GHG emissions from sources or categories of
sources of GHGs by 2020.
3)Appoint an ETAAC to advise on activities that will facilitate
investment in and implementation of technological research and
development opportunities, including, but not limited to,
identifying new technologies, research, demonstration
projects, funding opportunities, developing state, national,
and international partnerships and technology transfer
opportunities, and identifying and assessing research and
advanced technology investment and incentive opportunities
that will assist in the reduction of GHG emissions.
THIS BILL :
1)Requires ARB, on or before January 1, 2019, as part of the
Scoping Plan Update, to include:
AB 2050
Page 2
a) A proposal for further reducing GHG emissions by
2050, including intermediate goals.
b) An evaluation of these proposed goals based on what
technologies can be scaled to the rest of the country and
the world that assure cost-effectiveness and maintain
local and system-wide reliability.
c) Consistent metrics to accurately quantify GHG
emissions from technologies that are designed to reduce
GHG emissions and retrofits to existing technologies that
increase overall efficiency for the purposes of reducing
their carbon footprint.
2)Requires ARB to submit the element above to the appropriate
committees of the Legislature.
3)Requires ETAAC to include at least five, but no more than 10,
members who are experts in energy technology and economics.
4)Authorizes ETAAC to conduct an economic assessment that
includes a marginal cost analysis of various strategies for
reducing GHG.
FISCAL EFFECT : Unknown
COMMENTS :
1)Scoping Plan 3.0 . As part of AB 32's direction that ARB adopt
a statewide GHG emissions limit equivalent to 1990 levels by
2020 and adopt regulations to achieve maximum technologically
feasible and cost-effective GHG emission reductions, AB 32
requires ARB to prepare and approve a scoping plan at
five-year intervals.
The first AB 32 scoping plan, adopted by ARB in 2008,
described the specific measures ARB and others must take to
reduce statewide GHG emissions to 1990 levels by 2020.
Pursuant to AB 32, the reduction measures identified in the
scoping plan had to be proposed, reviewed, and adopted as
individual regulations by January 1, 2011, to become operative
beginning on January 1, 2012. According to ARB, a total
reduction of 80 million metric tons (MMT), or 16 percent
compared to business as usual, is necessary to achieve the
2020 limit. Approximately 78 percent of the reductions will
AB 2050
Page 3
be achieved through identified direct regulations. ARB
proposes to achieve the balance of reductions necessary to
meet the 2020 limit (approximately 18 MMT) through a
cap-and-trade program that covers an estimated 600 entities.
In October 2013, ARB released a scoping plan update discussion
draft. The discussion draft proposed establishing both a 2050
target and a midterm (2030) target for GHG emission
reductions. In February 2014, ARB revised a revised proposed
scoping plan update, which was the subject of an oversight
hearing by this committee on March 10. The proposed update
discusses the objective of achieving an 80 percent reduction
by 2050 and the need for a midterm target, but does not
propose or adopt a specific target.
According to ARB, the update defines ARB's climate change
priorities for the next five years and sets the groundwork to
reach California's long-term climate goals set forth in
Executive Orders S-3-05 and B-16-2012. The update will
highlight California's progress toward meeting the near-term
2020 GHG emission reduction goals defined in the initial
scoping plan. These efforts put California on course to
achieve the near-term 2020 goal, and have created a framework
for ongoing climate action that can be built upon to maintain
and continue economic sector-specific reductions beyond 2020,
as required by AB 32. On May 22, 2014, ARB will hold a Board
Hearing to consider the Proposed First Update to the Scoping
Plan and Environmental Analysis.
This bill requires ARB to include a proposal for further
reducing GHG emissions by 2050, including intermediate goals,
in the next (2019) scoping plan update. The current proposed
update arguably already includes 2050 and intermediate goal
"proposals," though it stops short of proposing or adopting
specific targets. It makes sense that future scoping plan
updates should include proposals for long-term GHG emission
reductions, though it's possible that more formal 2050 and/or
mid-term targets may be set by legislative or regulatory
action prior to the 2019 deadline in this bill.
2)ETAAC 2.0 . As part of AB 32's initial implementation phase,
the ETAAC was formed to advise ARB on activities that will
facilitate investment in and implementation of technological
research and development opportunities, including, but not
limited to, identifying new technologies, research,
AB 2050
Page 4
demonstration projects, funding opportunities, developing
state, national, and international partnerships and technology
transfer opportunities, and identifying and assessing research
and advanced technology investment and incentive opportunities
that will assist in the reduction of GHG emissions. The ETAAC
was composed of experts and stakeholders, but was not focused
on economic analysis. It worked 2007 through 2009, producing
a report recommending policies and technologies to reduce GHG
emissions in February 2008 and an update focused on advanced
technologies in December 2009.
This bill would reinstate the ETAAC, limit it to 10 members
who are experts in energy technology and economics, and
authorize the committee to conduct an economic assessment that
includes a marginal cost analysis of various strategies for
reducing GHG
REGISTERED SUPPORT / OPPOSITION :
Support
California Chamber of Commerce (if amended)
California Energy Efficiency Industry Council
California League of Food Processors (if amended)
California Manufacturers and Technology Association (if amended)
Large-scale Solar Association
Western States Petroleum Association (if amended)
Opposition
None on file
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092