BILL ANALYSIS Ó
AB 1288
Page 1
ASSEMBLY THIRD READING
AB
1288 (Atkins)
As Introduced February 27, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+----------------------|
|Natural |6-3 |Williams, Cristina |Dahle, Hadley, Harper |
|Resources | |Garcia, McCarty, | |
| | |Rendon, Mark Stone, | |
| | |Wood | |
| | | | |
|----------------+------+--------------------+----------------------|
|Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Gallagher, Jones, |
| | |Eggman, |Wagner |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Eliminates the December 31, 2020, limit on applicability
AB 1288
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of a market-based mechanism to reduce greenhouse gas (GHG)
emissions that may be adopted by the Air Resources Board (ARB).
EXISTING LAW, pursuant to the California Global Warming Solutions
Act [AB 32 (Núñez), Chapter 488, Statutes of 2006]:
1)Requires ARB to adopt a statewide GHG emissions limit equivalent
to 1990 levels by 2020 and to adopt rules and regulations to
achieve maximum technologically feasible and cost-effective GHG
emission reductions.
2)Authorizes ARB to permit the use of market-based compliance
mechanisms, applicable from January 1, 2012, to December 31,
2020, to comply with GHG reduction regulations, once specified
conditions are met. ARB has adopted a cap-and-trade regulation
which applies to large industrial facilities and electricity
generators emitting more than 25,000 metric tons of carbon
dioxide (CO2) equivalent per year, as well as distributors of
fuels, including gasoline, diesel and natural gas.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, minor, absorbable costs for ARB to continue its
cap-and-trade program beyond 2020.
COMMENTS:
According to ARB, a total reduction of 80 million metric tons
(MMT), or 16% compared to business as usual, is necessary to
achieve AB 32's 2020 statewide limit. Approximately 78% of the
reductions will be achieved through identified direct regulations.
ARB proposes to achieve the balance of reductions necessary to
meet the 2020 limit (approximately 18 MMT) through the
cap-and-trade regulation. Transportation fuels are included in
cap-and-trade beginning January 1, 2015.
AB 1288
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The cap and trade program was officially launched in 2013. The
cap and trade program provides a mechanism for specific industry
sectors with high GHG emissions to meet their GHG reduction
requirements in a cost-effective manner. Through the program, an
overall limit is placed on carbon emissions (the cap) and, in
turn, regulated entities can acquire allowances through a variety
of mechanisms including participating in carbon auctions to
purchase allowances. Entities can use allowances to help meet
their GHG reduction requirements or trade allowances to others if
they are able to cost-effectively lower their own emissions (the
trade).
Each year the cap is reduced and only a specific amount of
allowances are available for purchase. Funding generated from the
sale of allowances is invested into programs that reduce GHG
emissions. Currently, the cap and trade program developed by ARB
only includes emissions reduction requirements through 2020.
Analysis Prepared by:
Lawrence Lingbloom / NAT. RES. / (916) 319-2092
FN:
0000725