BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 1253
                                                          Page  1

Date of Hearing:  July 12, 1999

            ASSEMBLY COMMITTEE ON NATURAL RESOURCES 
                       Howard Wayne, Chair
           SB 1253 (Sher) - As Amended:  July 7, 1999

  SENATE VOTE  :  24-14
  
SUBJECT  :  Climate change:  greenhouse gases

  SUMMARY  :  Requires the State Energy Resources Conservation and  
Development Commission (Energy Commission) to undertake a  
variety of studies and activities focused on the reduction of  
greenhouse gas emissions.

  EXISTING LAW  :    

1)Establishes the Energy Commission, among other duties, to  
  analyze the environmental consequences of trends in the  
  consumption of energy.

1)Requires the Energy Commission (pursuant to an uncodified  
  section added by Chapter 1506, Statutes of 1988), in  
  consultation with the Air Resources Board (ARB), the  
  University of California, the Department of Water Resources,  
  and the Department of Food and Agriculture, to have conducted  
  a study by June 1, 1990, on how global warming trends may  
  affect the state's energy supply and demand, economy,  
  environment, agriculture, and water supplies.

  THIS BILL  :  Requires the Energy Commission, in consultation with  
the ARB, the Department of Forestry, the Department of  
Transportation, the State Water Resources Control Board, and the  
Integrated Waste Management Board, and other unspecified state  
agencies, to accomplish the following:

1)Update the inventory of greenhouse gas emissions from all  
  sources identified in a 1998 Energy Commission report titled,   
  Appendix A:  Historical and Forecasted Greenhouse Gas Emission  
  Inventories for California  .  Natural sources are to be  
  included to extent information is available.

1)Include in the inventory update discussions comparing  
  California's inventory with similar inventories prepared for  
  the United States, other states, and other countries, using  








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  generic indicators of carbon dioxide (CO2) emissions to the  
  extent available. 

1)Acquire and develop data on global climate change issues,  
  provide government agencies, utilities and business sectors  
  with information on the cost effectiveness and technical  
  feasibility of greenhouse gas reduction methods.  The bill  
  also requires the Energy Commission to provide for the  
  exchange of information, and advise state agencies on methods  
  to reduce greenhouse gases.  

1)After conducting at least one public hearing, update the  
  inventory every five years, and report to the Governor and the  
  Legislature and post the inventory and the report on the  
  internet after each update.

1)Convene an interagency task force to ensure policy  
  coordination.   


1)Establish a climate change advisory committee to make  
  recommendations to the Energy Commission regarding the most  
  equitable and efficient ways to implement international and  
  national climate change requirements and standards.  The  
  advisory committee shall be chaired by the Energy Commission  
  and include representation from major industrial and energy  
  businesses, utilities, forestry, agriculture, local  
  government, and environmental groups, and shall conduct  
  meetings open to public participation.

  FISCAL EFFECT  :   According to the Senate Committee on  
Appropriations, this bill likely will result in one time general  
fund costs to the Energy Commission of approximately $200,000,  
and minor, absorbable costs to the ARB.

  COMMENTS  :   

1)   Background on Climate Change Issues  

"Greenhouse gases" is the term given to air emissions that  
contribute to global climate change.  These emissions are  
primarily composed of carbon dioxide, and also include methane,  
nitrous oxide, and chlorofluorocarbons.  Greenhouse gases are  
generated from both natural and human-generated sources,  
including combustion of fossil fuels, mining, municipal solid  








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waste landfills, animal waste, municipal wastewater treatment,  
and oil and gas production.  

Since the early 1980's, members of the scientific community have  
become increasingly concerned about the potential for  
human-generated greenhouse gas emissions to alter the earth's  
atmosphere and climate.  Most scientists agree that a  
"greenhouse effect" is caused when human-generated emissions mix  
with other naturally occurring gases to "thicken" the earth's  
atmospheric "blanket."  By trapping heat and warmth, the effect  
interrupts the flow of energy that drives the earth's climate  
system, and increases global temperature.  In December of 1995,  
the United Nations Intergovernmental Panel on Climate Change  
found that "the balance of evidence suggests a discernible human  
influence on global climate." 

In December of 1997, the United Nations convened a climate  
change meeting in Kyoto, Japan.  The result was the "Kyoto  
Protocol", an agreement by the industrialized nations to reduce  
their collective emissions of greenhouse gases by 5.2% by 2012  
(the United States agreed to a 7% reduction).  According to  
United Nations documents, many industrialized countries have not  
succeeded in meeting earlier agreements to reduce emissions and,  
as a result, emissions have actually increased since 1990.  As  
yet, Congress has not ratified the Kyoto treaty.

2)   Prior Legislative Efforts
  
In 1988, the Legislature passed AB 4420 (Sher) (Chapter 1507,  
Statutes of 1988), directing the Energy Commission to study the  
potential impacts of global climate change trends on the state,  
including implications for energy supply and demand and impacts  
on the economy, environment, water supplies, and transportation.  
 The Energy Commission's report,  1991 Global Climate Change:   
Potential Impacts and Policy Recommendations  , was adopted by the  
Commission and submitted to the Legislature in November 1991.   
The study, and an accompanying greenhouse gas emissions  
inventory were updated in 1998, under a contract with the U.S.  
Environmental Protection Agency.

According to the 1998 report, carbon dioxide emissions represent  
close to 88% of all greenhouse gases emitted in the state, and  
transportation produces nearly 57% of the state's carbon dioxide  
emissions.  The report states that the most significant  
reductions in carbon dioxide emissions can be achieved through  








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(1) continued energy efficiency programs in all sectors,  
including electricity generation; (2) further developing and  
integrating renewable energy sources into electricity supplies;  
and, (3) promoting transportation energy efficiency strategies.   
 The report evaluates specific strategies in each of these  
areas.  In addition, the report focuses on improvements in  
forestry, solid waste and livestock management for reduction in  
both carbon dioxide and methane emissions (methane is the second  
most significant greenhouse gas).

  1)Purpose of this Bill  

This bill is intended to build upon these earlier studies, to  
require that the inventory be updated every five years, and to  
include task force, advisory committee, data gathering, and  
advisory requirements, to ensure that the Energy Commission  
continues to focus attention on this problem.

This bill is similar to SB 1941 (Sher) of 1998, which was vetoed  
by former Governor Wilson.
 
4)    Suggested Amendment  

Although this bill requires an initial update of the inventory  
and then regular updates every five years, it does not specify a  
deadline for the initial update.

  REGISTERED SUPPORT / OPPOSITION  :

  Support  

Union of Concerned Scientists (sponsor)
California Council for Environmental and Economic Balance
Planning and Conservation League

  Opposition  

None on file


  Analysis Prepared by  :    Sally Magnani Knox / NAT. RES. / (916)  
319-2092