BILL ANALYSIS �
AB 2050
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2050 (Quirk) - As Amended: April 21, 2014
Policy Committee: Natural
ResourcesVote:5-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Air Resources Board (ARB) to include
proposed greenhouse gas (GHG) reduction goals for 2050 and other
specified items in the next AB 32 Scoping Plan Update. The
bill also revises the composition and duties of the AB 32
Economic and Technology Advancement Advisory Committee (ETACC).
Specifically, this bill:
1)Requires ARB, on or before January 1, 2019, as part of the
Scoping Plan Update, to include:
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 to assure cost-effectiveness and maintain local
and system-wide reliability.
c) Consistent metrics to accurately quantify GHG emissions
from technologies and retrofits to existing technologies to
increase overall efficiency.
1)Requires ARB to submit the element above to the appropriate
committees of the Legislature.
2)Requires ETAAC to include at least five, but no more than 10,
members who are experts in energy technology and economics.
3)Authorizes ETAAC to conduct an economic assessment that
includes a marginal cost analysis of various strategies for
reducing GHG.
AB 2050
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FISCAL EFFECT
1)Annual costs of up to $650,000 per year for FYs 2015-16 and
2016-17, increasing to $1.1 million for FYs 2017-18 and
2018-19, for ARB to update the Scoping Plan and report to the
Legislature (Cost of Implementation Account).
2)Annual costs of $50,000 to $100,000 for four years to staff
the ETACC (Cost of Implementation Account).
COMMENTS
1)Rationale. According to the author, California is responsible
for approximately 1% of the world's global greenhouse gas
emissions and, thus, needs to address the problem of climate
change with a global perspective. A majority of greenhouse
gas emissions will be coming from developing countries over
the next few decades. In order for California to be a leader
in fighting global climate change, the state should be
focusing on inventing and developing the technologies
necessary to replace fossil fuel as the primary fuel source in
order to allow the developing nations of the world to achieve
low-carbon economic growth.
The prevailing opinion among climate scientists is that
achieving an 80% reduction in GHG emissions compared to 1990
levels by 2050 is necessary to stabilize the global climate.
This bill addresses both the need to maintain, evaluate and
continue reductions beyond AB 32 and the need to focus on
creating technologies that may be used in other states and
countries.
2)Background. AB 32 (N��ez), Chapter 455, Statutes of 2006)
requires California to limit its emissions of GHGs so that, by
2020, those emissions are equal to what they were in 1990.
AB 32 required ARB to develop a comprehensive scoping plan for
achieving the maximum technologically feasible and
cost-effective reductions in GHG emission from emission
sources or categories of sources by January 1, 2009. The
completed plan identified direct emission reductions and
alternative and market-based compliance mechanisms necessary
to achieve the 2020 goal.
AB 2050
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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. On May 22, 2014, ARB will hold a Board Hearing to
consider the Proposed First Update to the Scoping Plan and
Environmental Analysis.
3)ETAAC. 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. The ETAAC was
composed of experts and stakeholders, but was not focused on
economic analysis.
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
4)Similar Legislation. Last year, AB 284 (Quirk) was held on
this committee's Suspense File. AB 284 required the ARB to
convene a Road to 2050 Board consisting of various state
agencies and commissions who would be required to submit a
report to the Governor and the Legislature every two years,
beginning in 2016, on the impacts of global warming on public
health and natural resources.
Unlike this bill, AB 284 did not include the additional
requirements in the existing AB 32 Scoping Plan structure and
process and as a result, was much more costly.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081