BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 32|
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THIRD READING
Bill No: SB 32
Author: Pavley (D), et al.
Amended: 5/5/15
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 4/29/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: California Global Warming Solutions Act of 2006:
emissions limit
SOURCE: Author
DIGEST: This bill requires the California Air Resources Board
(ARB) to approve a statewide greenhouse gas (GHG) emissions
limit of 80% below the 1990 level of GHG emissions, to be
achieved by 2050.
ANALYSIS:
Existing law, under the California Global Warming Solutions Act
of 2006 (Health and Safety Code §38500 et seq.):
1) Requires the ARB to determine the 1990 statewide GHG
emissions level and approve a statewide GHG emissions limit
that is equivalent to that level, to be achieved by 2020, and
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to adopt GHG emissions reductions measures by regulation.
2) Authorizes the ARB to adopt a regulation that establishes a
system of market-based declining annual aggregate emission
limits for sources or categories of sources that emit GHGs,
applicable from January 1, 2012, to December 31, 2020,
inclusive.
3) Specifies that the statewide GHG emissions limit remains in
effect unless otherwise amended or repealed.
4) Expresses Legislative intent that the emissions limit be used
to maintain and continue GHG emissions reductions beyond
2020.
5) Requires the ARB to make recommendations to the Governor and
the Legislature on how to continue GHG emissions reductions
beyond 2020.
This bill:
1) Requires the ARB to approve in a public hearing a statewide
GHG emission limit of 80% below the 1990 level of GHG
emissions, to be achieved by 2050 and based on the best
available scientific, technological, and economic
assessments, and requires the limit include short-lived
climate pollutants, as defined.
2) Authorizes the ARB to approve 2030 and 2040 interim GHG
emission targets, consistent with the 2050 limit.
3) Specifies Legislative intent that the 2050 limit remain in
effect and be used to maintain and continue emissions
reductions beyond 2050.
4) Requires the ARB to make recommendations to the Governor and
the Legislature on how to continue GHG emissions reductions
beyond 2050.
5) Specifies that it is the intent of the Legislature for the
Legislature and appropriate agencies, in achieving the 2050
GHG emissions limit, to adopt policies that ensure those
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long-term emission reductions advance the following:
a) Job growth and local economic benefits in the state.
b) Public health benefits for Californians, particularly
in disadvantaged communities.
c) Innovation in technology and energy and resource
management practices.
d) Regional and international collaboration to adopt
similar GHG emission reduction policies.
Background
Climate change. The 5th assessment report from the
Intergovernmental Panel on Climate Change (IPCC) notes that
atmospheric concentrations of global warming pollutants have
risen to levels unseen in the past 800,000 years. Carbon
dioxide concentrations have increased by 40% since
pre-industrial times. There is broad scientific consensus that
these global GHG emission increases are leading to higher air
and water temperatures as well as rising sea levels. Sea level
is expected to rise 17 to 66 inches by 2100, and the frequency
of extreme events such as heat waves, wildfires, floods, and
droughts is expected to increase.
The Global Warming Solutions Act of 2006. In 2006, the Global
Warming Solutions Act of 2006, AB 32 (Núñez, Pavley, Chapter
488, Statutes of 2006), requires the ARB to determine the 1990
statewide GHG emissions level and approve a statewide GHG
emissions limit that is equivalent to that level, to be
achieved by 2020.
AB 32 requires the ARB, among other things, to:
Inventory GHG emissions in California.
Implement regulations that achieve the maximum
technologically feasible and cost-effective reduction of GHG
emissions and impose fees for administrative implementation
costs.
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Identify and adopt regulations for discrete early action
measures.
Prepare and approve a scoping plan to achieve the maximum
technologically feasible and cost-effective reduction of GHG
emissions by 2020, to be updated every five years.
The statute also specifies that the ARB may include
market-based compliance mechanisms in the AB 32 regulations,
after considering the potential for direct, indirect, and
cumulative emission impacts from these mechanisms.
AB 32 Scoping Plan. Pursuant to AB 32, the ARB approved the
first Scoping Plan in 2008. The Scoping Plan outlined a suite
of measures aimed at achieving 1990-level emissions, a reduction
of 80 million metric tons of CO2 (MMT CO2e). Average emission
data in the Scoping Plan reveal that transportation accounts for
almost 40% of statewide GHG emissions, and electricity and
commercial and residential energy sector account for over 30% of
statewide GHG emissions. The industrial sector, including
refineries, oil and gas production, cement plants, and food
processors, was shown to contribute 20% of California's total
GHG emissions.
The 2008 Scoping Plan recommended that reducing GHG emissions
from the wide variety of sources that make up the state's
emissions profile could best be accomplished through a
cap-and-trade program along with a mix of other strategies
including a low carbon fuel standard (LCFS), light-duty vehicle
GHG standards, expanding and strengthening existing energy
efficiency programs, and building and appliance standards, a 33%
Renewable Portfolio Standard (RPS), and regional
transportation-related GHG targets. Pursuant to authority under
AB 32, the ARB adopted a Low Carbon Fuel Standard in 2009, and a
cap-and-trade program, approved on December 13, 2011.
Scoping Plan update. ARB approved an update to the Scoping Plan
on May 22, 2014. The update describes policies, actions, and
strategies in the energy, transportation, fuels, agriculture,
waste, and natural lands sectors as a means to continue
emissions reductions in each of these sectors. The update also
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asserts that California is on track to meet the near-term 2020
GHG limit and is well positioned to maintain and continue
reductions beyond 2020 as required by AB 32.
Short-lived climate pollutants. CO2 remains in the atmosphere
for centuries, which makes it the most critical GHG to reduce in
order to limit long-term climate change. However, climate
pollutants including methane, hydrofluorocarbons (HFCs), and
soot (black carbon), are relatively short-lived (anywhere from a
few weeks to 15 years), but have much higher global warming
potentials than CO2. New research suggests that aggressively
reducing these short-lived climate pollutants in the short-term,
compared to only cutting CO2 emissions, can do more to slow sea
level rise and other climate change impacts in the near-term.
SB 605 (Lara, Chapter 523, Statutes of 2014) requires the ARB to
complete a comprehensive strategy to reduce emissions of
short-lived climate pollutants by January 1, 2016.
Executive Orders. In 2005, Governor Schwarzenegger issued
Executive Order S-3-05 and called for GHG emissions reductions
to 1990 levels by 2020 and 80% below 1990 levels by 2050.
On April 29, 2015, Governor Brown issued Executive Order
B-30-15, which established an interim statewide GHG emission
reduction target to reduce GHG emissions to 40% below 1990
levels by 2030, "in order to ensure California meets its target
of reducing greenhouse gas emissions to 80 percent below 1990
levels by 2050." The EO also directed all state agencies with
jurisdiction over sources of GHG emissions to implement
measures, pursuant to statutory authority, to achieve reductions
of GHG emissions to meet the 2030 and 2050 greenhouse gas
emissions reductions targets.
Comments
Purpose of Bill. According to the author, "Following the
issuance of Executive Order S-03-05, which set a long-term
greenhouse gas emissions reduction target for California of 80
percent below 1990 levels by 2050, the Legislature enacted AB 32
(Núñez-Pavley, 2006). The express intent of AB 32 was for the
California Air Resources Board (ARB) to continue reducing
greenhouse gas emissions beyond the 2020 limit established
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therein. The Legislature also directed the ARB to develop
regional greenhouse gas emissions reduction targets for
automobiles and light trucks for 2035 in SB 375 (Steinberg,
2008).
"In the Scoping Plan Update issued in May 2014, the ARB
identified a number of cost-effective, technologically feasible
pathways to emissions reductions required by 2030, 2040 and 2050
to adequately protect the health, safety and welfare of
Californians from the mounting costs of unabated climate change.
While the courts have affirmed this ongoing authority to reduce
greenhouse gas emissions beyond 2020 (See Cleveland National
Forest Foundation v. San Diego Association of Governments (4th
Dist., Div. 1, No. D063288, Nov. 24. 2014)), the Legislature has
not yet given direction to shape future reduction strategies.
"SB 32 would provide regulatory certainty by establishing the
greenhouse gas reduction limit of 80 percent below 1990 levels
by 2050 in law. This level of climate pollution has been
identified by the international scientific community as
necessary to stave off the worst effects of climate change on
California's health and safety. The target is guided by
science, but this bill provides the flexibility inherent in the
existing AB 32 framework to adjust pathways to the goal along
the way based on changing technological and economic conditions,
and ongoing evaluations of policy efficacy. The legislation
also identifies goals to ensure that greenhouse gas reductions
advance job creation; public health improvement, especially in
disadvantaged communities; innovation; and policy collaboration
beyond our borders.
"By simply amending the existing AB 32 framework without any
major mechanical changes to the regulatory implementation
process, SB 32 ensures that the policy tools currently being
utilized to achieve the existing 2020 greenhouse gas target
remain available for the achievement of targets beyond 2020 -
including, but not limited to, energy efficiency requirements
for buildings and appliances, tailpipe emissions standards for
mobile sources, power sector renewable portfolio and emissions
performance standards, sustainable land use policies,
fuel-related emissions standards, and market based mechanisms -
to maximize the effectiveness of our climate policies overall."
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Related/Prior Legislation
AB 32 (Núñez, Pavley, Chapter 418, Statutes of 2006) required
the ARB to establish a GHG emissions limit equal to 1990 level
of emissions, to be achieved by 2020.
SB 1125 (Pavley, 2014) would have required the ARB, in
consultation with other entities, to develop reduction targets
for GHG emissions for 2030 in an open and public process by
January 1, 2016. SB 1125 was held on the Senate Appropriations
Committee suspense file.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
Minor and absorbable costs to the Cost of Implementation
Account (special) to the Air Resources Board to set the 2050
target.
Unknown annual costs, at least in the hundreds of millions of
dollars, from various special funds for additional programs to
achieve the required emission reductions.
SUPPORT: (Verified 5/28/15)
Barbara Boxer, US Senator, California
350 Bay Area
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350 Sacramento
Access to Independence
Adam Schiff, US Representative, 28th District
American Academy of Pediatrics, California
American Cancer Society Cancer Action Network, California
American College of Physicians, California Service Chapter
American Farmland Trust
American Heart Association, California
American Lung Association, California
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Annie's Inc.
Asthma Coalition of Los Angeles County
Audubon
Autodesk
Azul
Bagito
Bay Area Air Quality Management District
Baz Allergy, Asthma and Sinus Center
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Big Sur Land Trust
Bioenergy Association of California
Biosynthetic Technologies
Bonnie J. Adario Lung Cancer Foundation
Breathe CA
Building Doctors
Business for Innovative Climate and Energy Policy
C&C Development Company
California Bicycle Coalition
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California Biodiesel Alliance
California Black Health Network
California Climate & Agriculture Network
California Conference of Directors of Environmental Health
California Energy Efficiency Industry Council
California Energy Storage Association
California Green Business Network
California Interfaith Power & Light
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California League of Conservation Voters
California Nurses Association
California Pan Ethnic Health Network
California Public Health Association, North California Service
Chapter
California Ski Industry Association
California Solar Energy Industry Association
California Thoracic Society
California Transit Association
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California Wind Energy Association
Californians Against Waste
CALSTART
CalTrout
Carbon Cycle Institute
Catholic Charities, Diocese of Stockton
Center for Biological Diversity
Center for Climate Change and Health
Center for Food Safety
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Central California Asthma Collaborative
CERES
Circulate San Diego
City and County of San Francisco
City Heights Community Development Corporation
City of Berkeley
City of Oxnard
City of Santa Monica
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City of Thousand Oaks
City of West Hollywood
Clean Power Finance
Clean Water Action
Cleveland National Forest Foundation
Climate Parents
Climate Ready Solutions LLC
Climate Resolve
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Coalition for Renewable Natural Gas
Coastal Environmental Rights Foundation
Communications Workers of America - District 9
Communitas Financial Planning
County of Ventura
Department of Public Health, Los Angeles County
Dignity Health
Distance Learning Consulting
Doctors for Climate Health
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Eagle Creek
eBay, Inc
Ecogate, Inc
Endangered Habitats League
Environment California
Environmental Action Committee of West Marin
Environmental Action Defense Fund
Environmental Entrepreneurs
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EtaGen
Friends Committee on Legislation of California
Friends of the River
Gap, Inc.
Global Green USA
Greenbelt Alliance
Health Care Without Harm
Health Officers Association of California
House Kombucha
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Housing California
Humane Society
Klean Kanteen
Land Trust of Santa Cruz County
Large Scale Solar
League of Women Voters of California
League of Women Voters of Orange Coast
Levi Strauss & Co
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Los Angeles Business Council
MAAC
Medical Advocates for Healthy Air
Mercury Press International
Moms Clean Air Force
Mountains Recreation and Conservation Authority
National Parks Conservation Association
Natural Resources Defense Council
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NextGen Climate
Patagonia Works
Peninsula Open Space Trust
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility, San Francisco Bay Area
Chapter
Power2Sustain
Progressive Asset Management, Inc.
Public Health Institute
Puma Springs Vineyards
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Purple Wine & Spirits
Quest
RC Cubed, Inc
Redland's Area Democratic Club
Regional Asthma Management and Prevention
ReLeaf
San Diego Housing Federation
San Diego-Imperial Counties Labor Council
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San Francisco Asthma Task Force
Santa Clara County Medical Society
Santa Clara Valley Open Space Authority
Santa Clarita Organization for Planning and the Environment
Sequioa Riverlands Trust
Sidel Systems USA
Sierra Business Council
Sierra Club
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Silicon Valley Leadership Group
SmartWool
Solar Energy Industry Association
Sonoma Agricultural Preservation and Open Space District
Sonoma County Asthma Coalition
South Coast Air Quality Management District
Southwest Wetlands Interpretive Association
Sustainable North Bay
Symantec Corporation
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Tamalpais NatureWorks
The Hampstead Companies
The Nature Conservancy
The North Face
TransForm
Trust for Public Lands
Union of Concerned Scientists
US Green Buildings Council
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Ventura Climate Care Options Organized Locally
Wakeland Housing and Development Corporation
Waterplanet Alliance
Wholly Hemp
47 Individuals
OPPOSITION: (Verified 5/28/15)
African American Farmers of California
Agricultural Council of California
American Forest and Paper Association
American Wood Council
Brea Chamber of Commerce
Building Owners and Managers Association
California Agricultural Aircraft Association
California Association of Nurseries and Garden Centers
California Business Properties Association
California Cattlemen's Association
California Chamber of Commerce
California Construction Trucking Association
California Cotton Ginners Association
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California Cotton Growers Association
California Dairies, Inc.
California Farm Bureau Federation
California Fresh Fruit Association
California Independent Oil Marketers Association
California Independent Petroleum Association
California League of Food Processors
California Manufacturers and Technology Association
California Taxpayers Association
California Trucking Association
Camarillo Chamber of Commerce
Chamber of Commerce Alliance of Ventura and Santa Barbara
Fresno Chamber of Commerce
Fullerton Chamber of Commerce
Greater Bakersfield Chamber of Commerce
International Council of Shopping Centers
Irvine Chamber of Commerce
Los Angeles County Solid Waste Management Committee/Integrated
Waste Management Task Force
NAIOP-Commercial Real Estate Development Association
National Federation of Independent Business
National Hmong American Farmers
Nisei Farmers League
Oxnard Chamber of Commerce
Rancho Cordova Chamber of Commerce
Redondo Beach Chamber of Commerce and Visitor Bureau
San Jose Silicon Valley Chamber of Commerce
Santa Maria Valley Chamber of Commerce and Visitor Bureau
Simi Valley Chamber of Commerce
South Bay Association of Chambers of Commerce
Southwest California Legislative Council
Torrance Chamber of Commerce
Western Agricultural Processors Association
Western Growers Association
Western Plant Health Association
Western States Petroleum Association
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ARGUMENTS IN SUPPORT: Supporters state that SB 32 provides
the regulatory certainty that investors and the business
community need in order to make long-term climate goals
attainable. They also note that SB 32 would help protect public
health of Californians, affirms the state's commitment to
provide resources and solutions to communities that will be most
impacted by climate change, and advances California's climate
leadership on the world stage. Supporters further state that SB
32 is critical to continue the progress that California has made
in reducing GHG emissions, attracting investments in clean
energy and energy efficiency, and diversifying California's
fuels.
ARGUMENTS IN OPPOSITION:Opponents state that SB 32 will increase
the cost to California's businesses, make them less competitive,
and discourage economic growth by mandating a reduction in the
GHG emissions to 80% below 1990 levels by 2050 with no
consideration of the economic side effects. Opponents note that
before any additional GHG emission reduction targets are set,
there must be a credible and independent marginal cost analysis
on the strategies adopted thus far in order to educate and guide
GHG reductions post 2020, and understand what has and what has
not worked.
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
5/31/15 11:27:50
**** END ****
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