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 SB 1253 Page 2 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 SB 1253 Page 3 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 SB 1253 Page 4 (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