BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2050 (Quirk) - California Global Warming Solutions Act of  
          2006: scoping plan.
          
          Amended: June 30, 2014          Policy Vote: EQ 9-1
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                      Consultant:  
          Marie Liu     
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2050 would require the California Air Resources  
          Board (ARB) to develop greenhouse gas (GHG) emissions reductions  
          goals for 2050, including intermediate goals, and to perform a  
          number of analyses of the strategies that would be required to  
          reach those goals.

          Fiscal Impact: 
              One-time costs of $1.2 million to the Cost of  
              Implementation Account (special) to the ARB to develop the  
              2050 and intermediate goals.
              One-time costs of $900,000 to the Cost of Implementation  
              Account (special) to the ARB to develop economic, public  
              health, and economic benefit assessments.
              One-time costs of up to $300,000 to the cost of  
              Implementation Account (special) to the ARB to develop  
              consistent metrics.

          Background: The California Global Warming Solutions Act of 2006  
          (AB 32) (Health and Safety Code �38500 et seq.) requires the ARB  
          to adopt GHG reduction measures by regulations to reduce the  
          statewide GHG emissions to 1990 levels by 2020. The ARB is  
          required to develop a scoping plan to describe its approach to  
          achieving this goal and to update this plan at least every five  
          years. The initial scoping plan was approved in December 2008.  
          The ARB recently approved the first update to the scoping plan  
          on May 22, 2014.

          Proposed Law: This bill would require the ARB to, by January 1,  
          2016, develop a proposal for 2050 GHG reduction goals, including  
          intermediate goals, for the purpose of advising the next scoping  
          plan update. The ARB would also be required to do conduct the  








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          following:
           An evaluation of the policies and technologies might be used  
            to achieve the 2050 and intermediate goals that can be scaled  
            to the rest of the country and world,
           An economic assessment of the various strategies that would be  
            required to meet the 2050 and intermediate goals,
           An analysis of the benefits to health, safety, and welfare  
            associated with the various strategies that would be required  
            to meet the 2050 and intermediate goals,
           The development of consistent metrics to accurately quantify  
            reductions in GHG emissions, public health benefits, and  
            cost-effectiveness of various policies and technologies.

          ARB would be required to report to the Legislature regarding its  
          reduction proposal and associated information by January 1,  
          2016.

          The provisions of the bill would sunset on January 1, 2016.

          Related Legislation: SB 1125 (Pavley) would have required the  
          ARB to develop reduction targets for GHG emissions and  
          short-lived climate pollutants with high global warming  
          potential for 2030. SB 1125 was held under submission by the  
          Senate Appropriations Committee.

          Staff Comments: Developing 2050 and intermediate goals by  
          January 1, 2016 will necessitate approximately eight positions  
          for one-time costs of approximately $1.2 million. The  
          development of economic, public health, and environmental  
          benefit assessments will require an additional six positions  
          assessment and public health and environmental benefit  
          assessment at a cost of approximately $900,000.

          In regards to developing consistent metrics to measure GHG  
          emission and to quantify public health benefits and  
          cost-effectiveness, the ARB anticipates needing two positions.  
          However, in the approved 2014-15 Budget, the ARB was allocated  
          $1 million for various responsibilities associated with the  
          spending of the GHG Reduction Fund, including the development of  
          reduction metrics. Staff believes there should be a fair amount  
          of overlap between these two activities, despite potentially  
          being on a different schedule. As such, the two positions  
          necessary should be seen as a maximum staffing need.









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