BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 1125 (Pavley) - California Global Warming Solutions Act of  
          2006: emissions reduction.
          
          Amended: May 13, 2014           Policy Vote: EQ 5-2
          Urgency: No                     Mandate: No
          Hearing Date: May 19, 2014      Consultant: Marie Liu
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1125 would require the Air Resources Board  
          (ARB) to develop reduction targets for greenhouse gas (GHG)  
          emissions and short-lived climate pollutants with high global  
          warming potential (SLCPs) for 2030.

          Fiscal Impact: 
              One-time costs of $775,000 from the Greenhouse Gas  
              Reduction Fund (special) for at least one year to develop  
              the required targets.

          Background: The California Global Warming Solutions Act of 2006  
          (AB 32/act) (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 released its final draft of the scoping plan update on  
          May 15th and will be before the ARB for its consideration on May  
          22nd. 

          Section 38551 expresses Legislative intent that the emissions  
          limit be used to maintain and continue reductions in emissions  
          of GHG beyond 2020. To this end, ARB is required to make  
          recommendations to the Governor and the Legislature on how to  
          continue GHG emissions reductions beyond 2020.

          Proposed Law: This bill would direct the ARB to develop  
          quantitative and advisory reduction targets for GHG emissions  
          and SLCPs for 2030 by January 1, 2016, and report these targets  
          to the Legislature for the purpose of informing future  
          legislative action.








          SB 1125 (Pavley)
          Page 1



          ARB would be required to develop the targets in conjunction with  
          the Climate Action Team, and other relevant state and local  
          agencies, and interested stakeholders and in an open and public  
          process that includes at least one meeting noticed pursuant to  
          the Bagley-Keene Open Meeting Act.

          The Legislative reporting requirement would sunset on January 1,  
          2020.

          Staff Comments: One of the key recommended actions of the final  
          draft of the scoping plan update is to develop a comprehensive  
          strategy for the mitigation of SLCPs by 2015. This strategy will  
          focus on immediate actions. In comparison, this bill would be  
          looking at establishing reduction targets for a longer time  
          frame. Presumably the  comprehensive strategy will help inform  
          the development of reduction targets.

          The ARB estimates that developing reduction targets for GHG  
          emissions and SLCPs for 2030 would cost approximately $950,000  
          for 5.5 PYs in FY 2015-16. This bill requires the targets to be  
          developed by January 1, 2016. However the ARB believes that the  
          targets may require more time to develop, perhaps even an  
          additional two years. Should the ARB be unable to complete the  
          targets and related Legislative report by the bill's deadline,  
          the ARB notes that it may have additional costs in 2016-17 and  
          even possibly 2017-18.

          This bill defines an "open and public process" as having one or  
          more public meetings noticed pursuant to the Bagley-Keene Open  
          Meeting Act. Presumably the targets would be approved by the ARB  
          at one of its regularly scheduled meetings, which are held in  
          compliance with Bagley-Keene. This meeting would satisfy the  
          bill's minimum requirements. However, should additional  
          stakeholder meetings also held in accordance with Bagley-Keene,  
          the ARB believes it may incur up to another $86,000 in costs.