(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The bill also would establish specified targets for reducing organic waste in landfills.

This bill would require the state board, in consultation with the Department of Food and Agriculture, to adopt regulations to reduce methane emissions from livestock manure management operations and dairy manure management operations, as specified. The bill would require the state board to take certain actions prior to adopting those regulations. This bill would require the regulations to take effect on or after January 1, 2024, if the state board, in consultation with the department, makes certain determinations.

This bill would require the state board, the Public Utilities Commission, and the State Energy Resources Conservation and Development Commission to undertake various actions related to reducing short-lived climate pollutants in the state. The bill would require state agencies to consider and, as appropriate, adopt policies and incentives to significantly increase the sustainable production and use of renewable gas.

(2)The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program that requires each county and city and county to prepare and submit to the department a countywide integrated waste management plan.

The bill would require the department, in consultation with the state board, to adopt regulations that achieve the specified targets for reducing organic waste in landfills. The bill would authorize local jurisdictions to charge and collect fees to recover the local jurisdictions costs incurred in complying with the regulations. The bill would require, no later than July 1, 2020, the department, in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving the specified targets for reducing organic waste in landfills. The bill would authorize the department, depending on the outcome of that analysis, to amend the regulations to include incentives or additional requirements, as specified. By adding to the duties of local governments related to organic waste in landfills, this bill would impose a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The bill also would establish specified targets for reducing organic waste in landfills.

This bill would require the state board, in consultation with the Department of Food and Agriculture, to adopt regulations to reduce methane emissions from livestock manure management operations and dairy manure management operations, as specified. The bill would require the state board to take certain actions prior to adopting those regulations. This bill would require the regulations to take effect on or after January 1, 2024, if the state board, in consultation with the department, makes certain determinations.

This bill would require the state board, the Public Utilities Commission, and the State Energy Resources Conservation and Development Commission to undertake various actions related to reducing short-lived climate pollutants in the state. The bill would require state agencies to consider and, as appropriate, adopt policies and incentives to significantly increase the sustainable production and use of renewable gas.

(2)The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program that requires each county and city and county to prepare and submit to the department a countywide integrated waste management plan.

The bill would require the department, in consultation with the state board, to adopt regulations that achieve the specified targets for reducing organic waste in landfills. The bill would authorize local jurisdictions to charge and collect fees to recover the local jurisdictions costs incurred in complying with the regulations. The bill would require, no later than July 1, 2020, the department, in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving the specified targets for reducing organic waste in landfills. The bill would authorize the department, depending on the outcome of that analysis, to amend the regulations to include incentives or additional requirements, as specified. By adding to the duties of local governments related to organic waste in landfills, this bill would impose a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The bill also would establish specified targets for reducing organic waste in landfills.

(2)The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program that requires each county and city and county to prepare and submit to the department a countywide integrated waste management plan.

The bill would require the department, in consultation with the state board, to adopt regulations that achieve the specified targets for reducing organic waste in landfills. The bill would authorize local jurisdictions to charge and collect fees to recover the local jurisdictions costs incurred in complying with the regulations. The bill would require, no later than July 1, 2020, the department, in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving the specified targets for reducing organic waste in landfills. The bill would authorize the department, depending on the outcome of that analysis, to amend the regulations to include incentives or additional requirements, as specified. By adding to the duties of local governments related to organic waste in landfills, this bill would impose a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The bill also would establish specified targets for reducing organic waste in landfills.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board board, no later than January 1, 2018, to approve and implement begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board to approve and implement that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified.

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 1383

SUBJECT: Short-lived climate pollutants: methane emissions: organic waste: landfills.

ANALYSIS:

Existing law:

1. Existing law, under the California Global Warming Solutions Act of 2006 requires the California Air Resources Control Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation (Health and Safety Code §38500 et seq.).
2. Requires ARB to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state.
3. Requires businesses that generate specified amounts of organic waste to arrange for recycling services for that material. (PRC §42649.81)
4. Requires California Energy Resources Development and Conservation Commission (CEC) to hold public hearings to identify impediments that limit procurement of biomethane in California, including, but not limited to, impediments to interconnection, and requires CEC to offer solutions to those impediments as part of the integrated energy policy report. (PRC §25326)
5. Requires the California Public Utilities Commission (PUC) to adopt policies and programs that promote the in-state production and distribution of biomethane. (PUC §399.24 )

This bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to coordinate with other state and local governments; hold at least three public hearings; evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Internet Web site at least one month prior to approval.
   
4. Establishes a target of 50% reduction in the statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025, and requires CalRecycle and ARB to adopt regulations to achieve the organic waste reduction targets.
5. Prohibits the above regulations from establishing numeric organic waste disposal limits for individual landfills and authorizes the regulations to:
   1. Require local jurisdictions to impose requirements on generators, as specified, and penalties for noncompliance.
   2. Include different levels of requirements for local jurisdictions and phased timelines for meeting 2020, and 2025 goals, as specified.
   3. Include penalties for noncompliance, as specified.
6. Requires the above CalRecycle and ARB regulations to:
   1. Take effect on or after January 1, 2022, as specified.
   2. Include requirements intended to recover at least 20% of edible food currently disposed of, by 2025.
7. Authorizes a local jurisdiction to charge and collect fees to recover costs incurred in complying with the organic waste reduction targets.
8. Requires CalRecycle, in consultation with ARB, to analyze progress in achieving the organic waste reduction goals, as specified.
9. Authorizes CalRecycle to include incentives or additional requirements in the regulations to facilitate progress in meeting the organic waste reduction goals if CalRecycle determines that significant progress has not been made.
10. Prohibits ARB from adopting additional requirements to control methane emissions from the disposal of organics before January 1, 2025, other than through landfill methane control.
11. Requires ARB, in consultation with the California Department of Food and Agriculture (CDFA) to adopt regulations to reduce methane emissions from livestock and dairy manure management operations by up to 40% below 2013 levels by 2030.
12. Requires ARB, prior to adopting manure management regulations, to do the following:
    1. Work with stakeholders, as specified, to address challenges and barriers to the development of dairy methane reduction projects.
    2. Hold a minimum of three public meetings, as specified.
    3. Conduct or consider livestock and dairy operation research on dairy methane reduction projects and consider developing and adopting methane reduction protocols.
13. Requires ARB post a report on their Internet Web site on the progress in meeting with stakeholders, holding public meetings, conducting research, and developing protocols, as required above.
14. Specifies that the regulations shall be implemented on or after January 1, 2024, if ARB, in consultation with CDFA, determines that the regulations are technologically feasible, economically feasible, as specified, and cost effective and that they include provisions to minimize and mitigate potential leakage, and evaluate achievements made by incentives.
15. Requires ARB, in consultation with CDFA, to analyze progress by July 1, 2020, toward achieving the methane reduction targets for the dairy and livestock sector, and authorizes ARB, in consultation with CDFA and stakeholders to reduce the methane reduction goal for the dairy and livestock sector if it is determined that progress has not been made in meeting targets due to insufficient funding, or technical or market barriers.
16. Requires ARB, in consultation with PUC and CEC, to establish energy infrastructure development and procurement policies to encourage dairy biomethane projects to meet the methane reduction goals for that sector, and requires PUC and CEC to direct gas corporations to implement at least five dairy biomethane pilot projects, as specified.
17. Requires ARB to provide guidance on credits generated pursuant to the low carbon fuels standard, and cap-and-trade program, and ensure that projects developed prior to implementation of adopted regulations in the dairy and livestock sector receive credit for at least 10 years, and be eligible for an extension of credits, as specified.
18. Requires ARB to develop a pilot financial mechanism to reduce economic uncertainty associated with the value of environmental credits, including credits generated pursuant to the low carbon fuels standard, and cap-and-trade program, and make recommendations, as specified.
19. Specifies enteric emissions reductions may only be achieved through incentive based mechanisms, until ARB, in consultation with CDFA makes specified findings, but authorizes voluntary enteric emissions reductions to be used toward meeting the methane emission reduction goals for the livestock and dairy sector.
20. Specifies that the requirements in adopting dairy and livestock regulations do not limit the authority of ARB to acquire planning and baseline information.
21. Prohibits ARB from adopting methane emission reduction regulations controlling methane emissions from dairy and livestock operation to achieve GHG emissions reductions other than those required pursuant to this bill.
22. Requires CEC, in consultation with ARB and PUC, to develop recommendations for the development and use of renewable gas as part of the 2017 Integrated Energy Policy Report, as specified.
23. Requires state agencies to consider, and as appropriate, adopt policies and incentives to significantly increase the sustainable production and use of renewable gas, based on the above recommendations, and requires PUC, in consultation with CEC and ARB, to consider additional policies to support the development and use of renewable gas in the state to reduce short-lived climate pollutants, based on the above recommendations.
24. Requires priority for the consideration and adoption of policies above, be given to fuels with the greatest GHG emissions benefits, as specified.

Background

1. Short-lived Climate Pollutants. Greenhouse gases or climate pollutants, such as CO₂, work to warm the earth by trapping solar radiation in the earth’s atmosphere. Depending on the molecule, these pollutants can vary greatly in their ability to trap heat, which is termed their global warming potential, and the length of time they remain in the atmosphere. CO₂ remains in the atmosphere for centuries, which makes it the most critical greenhouse gas to reduce in order to limit long-term climate change. However, climate pollutants including methane, tropospheric ozone, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few days to a few decades), but when measured in terms of how they heat the atmosphere (global warming potential, of GWP), can be tens, hundreds, or even thousands of times greater than that of CO₂. These climate forcers are termed short-lived climate pollutants (SLCPs).

Because SLCPs remain in the atmosphere for a relatively short period of time, but have a much higher global warming potential than CO₂, efforts aimed at reducing their emissions in their near term would result in more immediate climate, air quality, and public health benefits, than a strategy focused solely on CO₂. According to ARB’s SLCP draft strategy, “while the climate impacts of CO₂ reductions take decades or more to materialize, cutting emissions of SLCPs can immediately slow global warming and reduce the impacts of climate change.” Recent research estimates that SCLPs are responsible for about 40% of global warming to date and that actions to reduce SLCP emissions could cut the amount of warming that would occur over the next few decades by half.

According to ARB’s 2015 updated Scoping Plan, the three short-lived climate pollutants with the greatest implications for California are the following:

Black carbon: Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute almost 50% of the total black carbon emissions in the state. Black carbon also darkens the surface of snow and ice, which accelerates heat absorption and melting, and is thought be the second greatest contributor to global climate change, after CO₂. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a greenhouse gas subject to AB 32 regulations. However, due to known health and air quality impacts, ARB adopted truck and bus regulations in 2008 to control diesel PM emissions. ARB also administers the Carl Moyer Program, which provides grants to fund “cleaner than required” engine upgrades, or retrofits that reduce PM 2.5 and other pollutants. Black Carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.

Methane: Methane (CH₄) is the principal component of natural gas and is also produced biologically from the decomposition of organic matter under anaerobic conditions in ruminants (enteric fermentation), landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). In fact, a 2014 Stanford University study found that methane emissions may be 50% higher than official estimates from the US EPA. In 2010, ARB approved a regulatory measure as an AB 32 discrete early action measure that requires installation of landfill gas collection and control systems. ARB has also released draft regulations to reduce fugitive methane from the oil and gas sector. Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.

Hydrofluorocarbons (HFC): HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing, but they are the fastest growing source of carbon pollution. ARB has implemented several measures to reduce HFC emissions including low-global warming potential (GWP) requirements for aerosol propellants, a deposit-return recycling program for small cans of air conditioner refrigerant and a refrigerant management program. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale.

1. Climate change, environmental quality, and public health. In addition to increasing sea levels and dwindling biodiversity, climate change will have significant impacts on environmental quality and public health.

A number of impacts from climate change can lead to worsening air quality. Longer, hotter days during the dry seasons result in more ground-level pollutants like ozone. Additionally, dry conditions from high temperatures and worsening drought lead to longer fire seasons and increasing wildfire frequency and intensity.

Climate change can also lead to more frequent and extreme weather. This includes heavy rainfall events, which can trigger landslides and debris flows that are especially problematic in areas where wildfires have occurred. Heavy rain events can also overwhelm sewage and water treatment facilities with negative impacts to water quality. Additionally, drought is an important consideration for water quality. Because of reduced water reserves, groundwater pumping may continue to increase, resulting in higher concentration of pollutants in drinking water.

High heat and drought can also facilitate the spread of West Nile Virus (WNV) by aiding the development of mosquitoes, which spread the virus to people, birds, and other animals. Last year in California, the number of mosquitoes carrying WNV surged to unprecedented levels.

1. SLCP Strategy. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directs ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of SLCPs in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions.

In September of 2015, ARB released a draft SLCP strategy required by SB 605. The draft strategy sets targets for methane, black carbon, and reductions in F-gases, of 40%, 50%, and 40%, respectively, by 2030. Some of the proposed measures to achieve black carbon emissions reductions include replacement of wood-burning stoves, and implementing a sustainable freight strategy. To meet the methane reduction target, the draft strategy proposes manure and enteric management measures, including regulations on new dairies, prohibiting organics in landfills, oil and gas sector methane regulations, and others. F-gases are targeted in the strategy through proposals to provide financial incentives to low GWP refrigerants and bans on very high GWP refrigerants and equipment.

Comments

1. Purpose of Bill. According to the author, “California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This strategy represents the next step in those efforts, to establish a goal to reduce short lived climate pollutants that are among the most harmful emissions to both human health and global climate change.

“There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. This impact is most profound in children. One in eleven children in Los Angeles County suffers from asthma. For Black children, the number is one in four.

“The impact of air pollution on children is not limited to just heart and lung problems. Asthma is now the leading medical cause of absenteeism in LA schools, impacting children’s learning and development. Limited opportunities for physical activity due to respiratory illness and poor air quality also contribute to an epidemic of overweight and childhood diabetes that disproportionally impacts Black and Latino communities.

“Although the problem is statewide, these challenges disproportionally impact poor families and communities of color. According to the 2015 State of the Air Report from the American Lung Association, the top five most polluted cities in the United States are all in California.

“A Southern California Children's Health study that examined the long-term effects of particle pollution on teenagers found that those who grew up in more polluted areas face the increased risk of having underdeveloped lungs, which may never recover to their full capacity. The average drop in lung function was 20 percent below what was expected for the child's age, similar to the impact of growing up in a home with parents who smoked.

“Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and on the health of our children.”

1. What measures will be implemented? SB 1383 directs ARB to implement the SLCP strategy, required by January 1, 2016 pursuant to SB 605 (Lara). ARB has not yet formally approved the SLCP strategy, and it currently exists in draft form. The draft outlines numerous actions that could be taken, and in some cases are already underway, to address methane, black carbon, and F-gases in the state to meet the 2030 targets. Some of the proposals include:
   • Removal and replacement of old fireplaces and woodstoves;
   • Implementing a sustainable freight strategy;
   • Regulations for best management practices for new dairies;
   • Financial incentives for manure management and dairy digesters;
   • Requiring organics diversion from landfills;
   • Regulations to reduce methane emissions from oil and gas production, processing and storage;
   • Financial incentives for low-GWP refrigeration early adoption; and
   • Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

The draft strategy has not yet been approved by the Board, and is subject to review under CEQA. Additionally, SB 1383 includes requirements for ARB to conduct public hearings and ensure the strategy is cost effective and technologically feasible, as well as incorporate measures that provide public health, job growth, and technological innovation benefits, prior to approving the strategy. Because of the additional actions and evaluations needed, the approved strategy may change significantly, and it is not clear to what extent all the measures and actions identified in the draft strategy will be implemented as part of the approved strategy pursuant to SB 1383 to meet the targets.

However, ARB does note in the report that any regulatory measures developed pursuant to the SLCP Strategy would undergo a public rulemaking process, including workshops, and economic and environmental evaluations.

1. SB 1383 and existing organic waste goals. While the bill does not set a specific methane reduction target for the waste sector, it does set goals of reducing statewide disposal of organic waste by 50% from 2014 levels by 2020 and 75% by 2030. The bill also requires CalRecycle’s regulations to achieve a reduction in edible food currently disposed of by at least 20%. SB 1383 prohibits CalRecycle’s regulations to meet these goals from taking effect before January 1, 2022.

Existing law sets a statewide solid waste diversion goal of 75% by 2020. Organic materials make up one-third of the waste stream and food continues to be the greatest single item disposed, comprising over 15% of materials landfilled. CalRecycle is also charged with implementing its Strategic Directive 6.1, which calls for reducing organic waste disposal by 50% by 2020. According to CalRecycle, significant gains in organic waste diversion are necessary to meet the 75% goal and implement Strategic Directive 6.1. Additionally, AB 1826 (Chesbro, Chapter 727, Statutes of 2014) requires generators of significant quantities of organic waste to ensure the material is recycled, and lowers the organic thresholds for businesses subject to recycling requirements if at least 50% of organic waste is not diverted by 2020.

SB 1383 goals and timelines for reducing organic waste are consistent with CalRecycle’s strategic directive, as well as current statute mandating commercial recycling of organic waste.

1. Limits ARB's authority to reduce dairy and livestock methane emissions. Currently, methane is defined as a GHG under AB 32, and ARB has the authority to regulate methane emissions from all sectors, including the agricultural and waste sectors, pursuant to AB 32. Additionally, the Legislature recently passed SB 32 (Pavley), awaiting action by the Governor, which would grant ARB the authority to reduce GHG emissions, including methane, by at least 40% by 2030.

The dairy and livestock sector is not currently regulated under AB 32, although over 50% of statewide methane emissions are due to dairy and livestock operations. However, as noted, ARB’s recent SLCP strategy outlines several potential measures for this sector, including regulations for best management practices for new dairies and financial incentives for manure management and dairy digesters, to contribute toward a statewide reduction in methane emissions of 40% below 2013 levels by 2030.

Recent amendments to the bill would prevent implementation of methane emissions reduction regulations for the dairy and livestock sector before 2024. The amendments also limit the dairy and livestock sector's reduction obligation to 40% below 2013 levels, even if additional reductions are feasible and cost-effective relative to other sectors. The proposed amendments also authorize ARB to reduce the goal for the dairy and livestock sector if specified findings are made. Additionally, ARB is prohibited from regulating emissions from enteric fermentation until ARB, in consultation with CDFA, determines that a cost-effective, considering the impact on animal productivity, scientifically proven means of reducing enteric emissions is available and that adoption of the enteric emissions reduction method would not damage animal health, public health, or consumer acceptance.

By delaying implementation of regulations until 2024, capping the dairy and livestock sector’s methane reductions to 40%, and requiring a number of specific findings prior to implementation, these amendments limit ARB’s existing authority under AB 32 and ARB’s authority to reduce methane emissions from the dairy and livestock sector under SB 32 (Pavley), if that bill and its companion measure, AB 197 (E. Garcia), are signed by the Governor.

1. Dairy industry concerns. As noted above, recent amendments to the bill lay out a number of provisions that limit the scope and timing of the regulations ARB can adopt to control methane emissions from the dairy and livestock industry.

In a March 23, 2016 letter from agricultural, dairy, and livestock stakeholders regarding SB 1383, they argued that unlike other entities regulated by ARB, the dairy industry cannot pass costs through to customers who purchase milk, cheese, and other dairy products, since milk prices are set by the state. The letter also stated that, because the California dairy industry produces low levels of enteric fermentation emissions, directly regulating enteric emission from cows is unrealistic, and could lead to greatly reducing the number of dairy cattle in the state, or eliminating most pasture and organic dairies, or both. Recent amendments limiting the scope and delaying the implementation of manure management regulations remove the dairy and livestock industry opposition to the bill.

1. Renewable gas policies. Recent amendments require CEC, in consultation with ARB and PUC, to develop recommendations for the development and use of renewable gas. The amendments also require state agencies to consider, and adopt, as appropriate, policies and incentives to significantly increase the sustainable production and use of renewable gas, based on those recommendations. By authorizing any state agency to adopt policies based on recommendations made by other agencies, does this bill sidestep the role of the Legislature in granting authority and direction to state agencies?
2. Referral to the Committee pursuant to Senate Rule 29.10.  SB 1383 was originally introduced by Senator Lara on February 2, 2016, to require ARB to approve and implement the comprehensive short-lived climate pollutant strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030. On August 30, 2016, Assembly amendments added new sub-targets for organic waste, and for the dairy and livestock sector, as well as a number of additional requirements for ARB, and other agencies, in implementing regulations to achieve the emissions reduction targets. The measure passed the Assembly Floor on August 31, 2016, by a vote of 41-22.

Consistent with Senate Rule 29.10 the Senate Rules Committee has referred the amended bill to the Senate Environmental Quality Committee for a hearing of the Assembly amendments.

Related/Prior Legislation

SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) requires ARB to develop a short-lived climate pollutant strategy by January 1, 2016.

The following support and opposition was verified by the author’s office on 8/31/2016:

SOURCE:

Author

SUPPORT:

Alliance of Nurses for Healthy Environment

All Power Labs

American Academy of Pediatrics – California

American Cancer Society Cancer Action Network, California

American Heart Association, California

American Lung Association in California

Anaergia

Asthma Coalition of Los Angeles County

Atlas ReFuel

Audubon California

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center, Central Valley and Bay Area

Bioenergy Association of California

Bonnie J. Addario Lung Cancer Foundation

Breathe California

California Association of Environmental Health Officers

California Association of Sanitation Agencies

California Bicycle Coalition

California Black Health Network, Inc.

California Conference of Directors of Environmental Health

California Hydrogen Business Council

California League of Conservation Voters

California Medical Association

California Natural Gas Vehicle Coalition

Californians Against Waste

California Nurses Association

California Pan-Ethnic Health Network

California Public Health Association – North

California Refuse Recycling Council

California Thoracic Society

California Walks

CalPIRG

Center for Climate Change and Health, Public Health Institute

Central California Asthma Collaborative

Clean Energy Renewables

Climate Resolve

Climate 911

Coalition for Clean Air

Coastal Environmental Rights Foundation

CR & R

Dignity Health

Environmental Defense Fund

Environment California

Harvest Power, Inc.

Health Care Without Harm

Health African American Families II

Health Officers Association of California

Inland Empire Disposal Association

Long Beach Alliance for Children with Asthma

Los Angeles County Department of Public Works

Los Angeles County Waste Management

Lutheran Office of Public Policy - California

Maternal and Child Health Access (Los Angeles)

Natural Resources Defense Council

Network of Ethnic Physician Organizations

Next Gen Climate

Phoenix Energy

Physicians for Social Responsibility, Los Angeles

Physicians, Scientists and Engineers Healthy Energy

Physicians for Social Responsibility/Sacramento

Prevention Institute

RAMP and Community Action to Fight Asthma

Recology

Republic Services, Inc.

San Francisco Bay Area Chapter, Physicians for Social Responsibility

San Joaquin County Asthma and COPD Coalition

Sierra Energy

Santa Clara County Public Health Department

Solid Waste Association of Orange County

St. John’s Well Child and Family Centers (Los Angeles)

The Trust for Public Land

TSS Consultants

Voices for Progress

West Biofuels

29 Individuals

OPPOSITION:

Asian Pacific Environmental Network

Association of Home Appliance Manufacturers

California Business Properties Association

California Chamber of Commerce

California Fresh Fruit Association

California Grain & Feed Association

California Independent Petroleum Association

California Manufacturers & Technology Association

California Retailers Association

Center for Food Safety

Center for Race Poverty & the Environment Food and Water Watch Leadership Counsel for Justice and Accountability Communities for a Better Environment Center for Community Action for Environmental Justice

Comite ROSAS

Committee for a Better Arvin

Committee for a Better Shafter

Delano Guardians

Greenfield Walking Group.

Lamont Parent Partners

Los Angeles County, Solid Waste Management Committee/Integrated Waste Management Task Force

National Federation of Independent Business

Nisei Farmers League

Western Agricultural Processors Association

Western Growers Association

Western Plant Health Association

Western States Petroleum Association

-- END –

(Without Reference to File)

SENATE THIRD READING

STR Bill Id:SB 1383

Author:(Lara)

As Amended Ver:August 31, 2016

Majority vote

SENATE VOTE: 21-13

SUMMARY: Requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant (SLCP) strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic black carbon, by 2030. Establishes specific procedures to regulate landfill and dairy sources of methane. Requires the California Energy Commission (CEC), ARB and the Public Utilities Commission (PUC) to develop recommendations for development and use of renewable gas, then consider and adopt policies and incentives to increase production and use of renewable gas, including biomethane and biogas, that reduces SLCPs in the state. Specifically, this bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in HFCs, and a 50% reduction in anthropogenic (i.e., non-forest) black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy;
   2. Hold at least three public hearings in geographically diverse locations in the state;
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.
4. States the intent of the Legislature:
   1. To support the adoption of policies that improve organics recycling and innovative, cost-effective, and environmentally beneficial uses of biomethane derived from solid waste facilities; and;
   2. That the disposal reduction targets established by the bill serve as a statewide average target and not as a minimum requirement for any jurisdiction.
5. States that methane emission reduction goals shall include targets to reduce the landfill disposal of organic waste 50% by 2020 and 75% by 2025 from the 2014 level.
6. Requires the California Department of Resources Recycling and Recovery (CalRecycle), in consultation with ARB, to adopt regulations to achieve the organics reduction targets. Specifies that the regulations:
   1. May require local jurisdictions to impose requirements on generators or other relevant entities within their jurisdiction and impose penalties for noncompliance;
   2. Include requirements intended to meet the goal that not less than 20% of edible food that is currently disposed is recovered for human consumption by 2025;
   3. Shall not establish a numeric organic waste disposal limit for individual landfills;
   4. Include different levels of requirements for local jurisdictions and phased timelines based upon their progress in meeting the organic waste reduction goals, as specified;
   5. May include penalties to be imposed by CalRecycle for noncompliance; and,
   6. Take effect on or after January 1, 2022, except the imposition of penalties imposed by CalRecycle shall not take effect until two years after the effective date of the regulations.
7. Specifies that a local jurisdiction may charge and collect fees to cover the costs incurred in complying with the regulations.
8. Requires CalRecycle, in consultation with ARB, to analyze the progress that the waste sector, state government, and local governments have made in achieving the organic waste reduction goals. Requires the analysis to include:
   1. The status of new organics recycling infrastructure development;
   2. The progress in reducing regulatory barriers to the siting of organics recycling facilities and the timing and effectiveness of policies that will facilitate the permitting of organics recycling infrastructure; and
   3. The status of markets for the products generated by organic recycling facilities, including cost-effective electrical interconnection and common carrier pipeline injection of digester biomethane and the status of markets for compost, biomethane, and other products from the recycling of organic waste.
9. Authorizes CalRecycle, if it determines that significant progress has not been made, to include incentives or additional requirements in the regulations.
10. Declares that the bill does not limit the authority of a local jurisdiction to adopt, implement, or enforce requirements in addition to the requirements of the bill or the regulations.
11. Requires ARB to adopt regulations to reduce methane emissions from dairy and livestock manure management operations, subject to the following conditions:
    • 1. Reductions are limited to 40% below 2013 levels by 2030;
      2. Requires emission reduction regulations to be implemented on or after 2024;
      3. ARB must first complete specified steps, including stakeholder consultation, public meetings, and research;
      4. ARB must determine the regulations are technologically feasible, economically feasible, cost-effective, and minimize and mitigate potential leakage;
      5. Requires ARB to analyze progress toward the targets and authorizes ARB to reduce the 40% by 2030 goal if the analysis determines that progress has not been made due to insufficient funding, technical or market barriers;
      6. Requires ARB and PUC to establish energy infrastructure development and procurement policies for dairy biomethane projects, including directing gas utilities to implement at least five dairy biomethane pilot projects; and
      7. Enteric emission reductions shall be achieved only through incentive-based mechanisms until ARB determines that a cost-effective, considering the impact on animal productivity, scientifically proven means of reducing enteric emissions is available and that adoption of the enteric emissions reduction method would not damage animal health, public health, or consumer acceptance.
12. Requires the CEC, ARB, and PUC to develop recommendations for development and use of renewable gas, then consider and adopt policies and incentives to increase production and use of renewable gas, including biomethane and biogas, that reduces SLCPs in the state. Requires prioritization of fuels with the greatest GHG benefits, including consideration of carbon intensity and reduction in SLCPs.

EXISTING LAW:

1. Requires ARB, pursuant to California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488, Statutes of 2006), to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to the 1990 level by 2020, and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.
2. Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes of 2014, to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of SLCPs, defined as an agent that has a relatively short lifetime in the atmosphere and a climate-warming influence that is more potent than carbon dioxide.
3. Establishes, pursuant to AB 341 (Chesbro), Chapter 476, Statutes of 2011, a statewide waste diversion goal of 75% by 2020. Requires a commercial waste generator, including multi-family dwellings, to arrange for recycling services and requires local governments to implement commercial solid waste recycling programs designed to divert solid waste from businesses.
4. Requires, pursuant to AB 1826 (Chesbro), Chapter 727, Statutes of 2014, generators of specified amounts of organic waste to arrange for recycling services for that material. Defines "organic waste" as food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper that is mixed in with food waste.

FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown cost pressures, potentially in the tens of millions of dollars or more, to fund programs to implement the strategies (Greenhouse Gas Reduction Fund or other special funds).

COMMENTS: 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.

Pursuant to AB 32, 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.

ARB approved an update to the Scoping Plan in 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 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.

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, 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.

1. Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.
2. HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing gases, but they are the fastest growing source of carbon pollution. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.
3. Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a GHG subject to AB 32 regulations. However, due to known health and air quality impacts, ARB has several programs to reduce PM emissions from heavy-duty vehicles. Black carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.

SB 605 requires ARB to complete a comprehensive strategy to reduce emissions of SLCPs by January 1, 2016. Following the release of a concept paper and a draft strategy, on April 11, 2016, ARB published a proposed SLCP Reduction Strategy, which is scheduled for adoption in September. The ARB Strategy recommends the same 40/40/50 targets for methane, HFCs, and black carbon as established by this bill. In addition to the targets, the Strategy proposes specific measures, including:

1. Removal and replacement of old fireplaces and woodstoves;
2. Implementing a sustainable freight strategy;
3. Regulations for best management practices for new dairies;
4. Financial incentives for manure management and dairy digesters;
5. Requiring organics diversion from landfills;
6. Regulations to reduce methane emissions from oil and gas production, processing and storage;
7. Financial incentives for low-global warming potential (GWP) refrigeration early adoption; and
8. Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts.

CalRecycle has been engaged with ARB in developing ARB's Strategy to reduce methane emissions from landfills. It is also is tasked with diverting at least 75% of solid waste generated statewide by 2020. Organic materials make up one-third of the waste stream and food continues to be the greatest single item disposed, comprising over 15% of materials landfilled. CalRecycle is also charged with implementing its Strategic Directive 6.1, which calls for reducing organic waste disposal by 50% by 2020. According to CalRecycle, significant gains in organic waste diversion are necessary to meet the 75% goal and implement Strategic Directive 6.1. Recycling technologies for organic waste include composting, anaerobic digestion, and other types of processing that generate renewable fuels, energy, soil amendments, and mulch. AB 1826 requires generators of significant quantities of organic waste to ensure the material is recycled.

Recycling organic waste provides significant GHG reductions over landfilling. Composting and other organics processing technologies, including anaerobic digestion, reduce GHGs by avoiding the emissions that would be generated by the material's decomposition in a landfill, as well as by displacing fossil fuels. While most modern landfills have systems in place to capture methane, significant amounts continue to escape into the atmosphere. According to ARB's GHG inventory, nearly 8.28 million metric tons of CO₂ equivalent are released annually by landfills in California.

According to the author, California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This bill represents the next step in those efforts, to establish a goal to reduce SLCPs that are among the most harmful emissions to both human health and global climate change. There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and the health of our children.

The August 31 "dairy" amendments prevent implementation of emission reduction regulations before 2024. What appears to be a delay of up to seven years is mitigated by the fact that the bill does not limit ARB's authority to adopt and implement other regulations prior to 2024, such as requiring reporting and monitoring of emissions, and even to develop and adopt emission reduction regulations prior to 2024, as long as reduction obligations don't begin before 2024.

The amendments limit the dairy sector's reduction obligation to 40% below 2013 levels, even if additional reductions are feasible and cost-effective relative to other sectors. The amendments also authorize ARB to reduce the goal for the dairy and livestock sector if specified findings are made.

The amendments prohibit ARB from regulating emissions from enteric fermentation until ARB, in consultation with the Department of Food and Agriculture, determines that a cost-effective, considering the impact on animal productivity, scientifically proven means of reducing enteric emissions is available and that adoption of the enteric emissions reduction method would not damage animal health, public health, or consumer acceptance.

The proposed amendments impose additional procedural and analytical requirements on ARB, including considering milk prices and the commitment of public funds, which are inconsistent with AB 32 and the recently passed requirements of AB 197 (E. Garcia) of the current legislative session, which provides direction to ARB regarding its actions to achieve GHG reductions beyond the 2020 statewide limit, including introducing the consideration of "social costs."

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0005027

 UNFINISHED BUSINESS  

Bill No: SB 1383

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 4-2, 4/6/16

AYES: Wieckowski, Hill, Leno, Pavley

NOES: Gaines, Bates

NO VOTE RECORDED: Jackson

SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16

AYES: Lara, Beall, Hill, McGuire, Mendoza

NOES: Bates, Nielsen

SENATE FLOOR: 21-13, 6/1/16

AYES: Allen, Beall, Block, De León, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Jackson, Lara, Leno, Leyva, Liu, Mendoza, Mitchell, Monning, Pavley, Wieckowski, Wolk

NOES: Anderson, Bates, Berryhill, Cannella, Fuller, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak

NO VOTE RECORDED: Galgiani, Hueso, McGuire, Pan, Roth, Runner

ASSEMBLY FLOOR: Not available

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.

Assembly Amendments add new sector-specific targets for organic waste, and methane reductions from the dairy and livestock sector, as well as a number of additional requirements for ARB, and other agencies, in implementing regulations to achieve the emissions targets. Assembly amendments also require state agencies to adopt and consider, as appropriate, policies and incentives to increase the production of renewable gas.

ANALYSIS:

Existing law:

1. Requires, under the California Global Warming Solutions Act of 2006, ARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation (Health and Safety Code §38500 et seq.).
2. Requires ARB to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state.

This bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to coordinate with other state and local governments; hold at least three public hearings; evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Internet Web site at least one month prior to approval.
4. Establishes a target of 50% reduction in the statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025, and requires CalRecycle and ARB to adopt regulations to achieve the organic waste reduction targets.
5. Prohibits the above regulations from establishing numeric organic waste disposal limits for individual landfills and authorizes the regulation to:
   1. Require local jurisdictions to impose requirements on generators, as specified, and penalties for noncompliance.
   2. Include different levels of requirements for local jurisdictions and phased timelines for meeting 2020, and 2025 goals, as specified.
   3. Include penalties for noncompliance, as specified.
6. Requires the above CalRecycle and ARB regulations to:
   1. Take effect on or after January 1, 2022, as specified.
   2. Include requirements intended to recover at least 20% of edible food currently disposed of, by 2025.
7. Authorizes a local jurisdiction to charge and collect fees to recover costs incurred in complying with the organic waste reduction targets.
8. Requires CalRecycle, in consultation with ARB, to analyze progress in achieving the organic waste reduction goals, as specified.
9. Authorizes CalRecycle to include incentives or additional requirements in the regulations to facilitate progress in meeting the organic waste reduction goals if CalRecycle determines that significant progress has not been made.
10. Prohibits ARB from adopting additional requirements to control methane emissions from the disposal of organics before January 1, 2025, other than through landfill methane control.
11. Requires ARB, in consultation with the California Department of Food and Agriculture (CDFA) to adopt regulations to reduce methane emissions from livestock and dairy manure management operations by up to 40% below 2013 levels by 2030.
12. Requires ARB, prior to adopting manure management regulations, to do the following:
    1. Work with stakeholders, as specified, to address challenges and barriers to the development of dairy methane reduction projects.
    2. Hold a minimum of three public meetings, as specified.
    3. Conduct or consider livestock and dairy operation research on dairy methane reduction projects and consider developing and adopting methane reduction protocols.
13. Requires ARB post a report on their Internet Web site on their progress in meeting with stakeholders, holding public meetings, conducting research, and developing protocols, as required above.
14. Specifies that the regulations shall be implemented on or after January 1, 2024, if ARB, in consultation with CDFA, determines that the regulations are technologically feasible, economically feasible, as specified, and cost effective and that they include provisions to minimize and mitigate potential leakage, and evaluate achievements made by incentives.
15. Requires ARB, in consultation with CDFA, to analyze progress by July 1, 2020, toward achieving the methane reduction targets for the dairy and livestock sector, and authorizes ARB, in consultation with CDFA and stakeholders to reduce the methane reduction goal for the dairy and livestock sector if it is determined that progress has not been made in meeting targets due to insufficient funding, or technical or market barriers.
16. Requires ARB, in consultation with PUC and CEC, to establish energy infrastructure development and procurement policies to encourage dairy biomethane projects to meet the methane reduction goals for that sector, and requires PUC and CEC to direct gas corporations to implement at least five dairy biomethane pilot projects, as specified.
17. Requires ARB to provide guidance on credits generated pursuant to the low carbon fuels standard, and cap-and-trade program, and ensure that projects developed prior to implementation of adopted regulations in the dairy and livestock sector receive credit for at least 10 years, and be eligible for an extension of credits, as specified.
18. Requires ARB to develop a pilot financial mechanism to reduce economic uncertainty associated with the value of environmental credits, including credits generated pursuant to the low carbon fuels standard, and cap-and-trade program, and make recommendations, as specified.
19. Specifies enteric emissions reductions may only be achieved through incentive based mechanisms, until ARB, in consultation with CDFA makes specified findings, but authorizes voluntary enteric emissions reductions to be used toward meeting the methane emission reduction goals for the livestock and dairy sector.
20. Specifies that the requirements in adopting dairy and livestock regulations do not limit the authority of ARB to acquire planning and baseline information.
21. Prohibits ARB from adopting methane emission reduction regulations controlling methane emissions from dairy and livestock operation to achieve GHG emissions reductions other than those required pursuant to this bill.
22. Requires CEC, in consultation with ARB and PUC, to develop recommendations for the development and use of renewable gas as part of the 2017 Integrated Energy Policy Report, as specified.
23. Requires state agencies to consider, and as appropriate, adopt policies and incentives to significantly increase the sustainable production and use of renewable gas, based on the above recommendations, and requires PUC, in consultation with CEC and ARB, to consider additional policies to support the development and use of renewable gas in the state to reduce short-lived climate pollutants, based on the above recommendations.
24. Requires priority for the consideration and adoption of policies above, be given to fuels with the greatest GHG emissions benefits, as specified.

Background

1. Short-lived Climate Pollutants. Greenhouse gases or climate pollutants, such as CO2, work to warm the earth by trapping solar radiation in the earth’s atmosphere. Depending on the molecule, these pollutants can vary greatly in their ability to trap heat, which is termed their global warming potential, and the length of time they remain in the atmosphere. CO2 remains in the atmosphere for centuries, which makes it the most critical greenhouse gas to reduce in order to limit long-term climate change. However, climate pollutants including methane, tropospheric ozone, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few days to a few decades), but when measured in terms of how they heat the atmosphere (global warming potential, or GWP), can be tens, hundreds, or even thousands of times greater than that of CO₂. These climate forcers are termed short-lived climate pollutants (SLCPs).

Because SLCPs remain in the atmosphere for a relatively short period of time, but have a much higher global warming potential than CO₂, efforts aimed at reducing their emissions in their near term would result in more immediate climate, air quality, and public health benefits, than a strategy focused solely on CO₂. According to ARB’s SLCP draft strategy, “while the climate impacts of CO₂ reductions take decades or more to materialize, cutting emissions of SLCPs can immediately slow global warming and reduce the impacts of climate change.” Recent research estimates that SLCPs are responsible for about 40% of global warming to date and that actions to reduce SLCP emissions could cut the amount of warming that would occur over the next few decades by half.

According to ARB’s 2015 updated Scoping Plan and the proposed Short-Lived Climate Pollutant Strategy, the three short-lived climate pollutants with the greatest implications for California are the following:

Black carbon: Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon has a global warming potential 3200 times that of CO2 on a 20-year time scale.

Methane: Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Methane is about 80 times more powerful as a global warming pollutant than CO2 on a 20-year time scale.

Hydrofluorocarbons (HFC): HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.

1. SLCP Strategy. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directs ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of SLCPs in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions.

In September of 2015, ARB released a draft SLCP strategy required by SB 605, which was updated in April of this year. The proposed strategy sets targets for methane, black carbon, and reductions in F-gases, of 40%, 50%, and 40%, respectively, by 2030.

Comments

1. Purpose of Bill. According to the author, “California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO2, the most significant long-term driver of climate change. This strategy represents the next step in those efforts, to establish a goal to reduce short lived climate pollutants that are among the most harmful emissions to both human health and global climate change.

“There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. This impact is most profound in children. One in eleven children in Los Angeles County suffers from asthma. For black children, the number is one in four.

“The impact of air pollution on children is not limited to just heart and lung problems. Asthma is now the leading medical cause of absenteeism in LA schools, impacting children’s learning and development. Limited opportunities for physical activity due to respiratory illness and poor air quality also contribute to an epidemic of overweight and childhood diabetes that disproportionally impacts Black and Latino communities.

“Although the problem is statewide, these challenges disproportionally impact poor families and communities of color. According to the 2015 State of the Air Report from the American Lung Association, the top five most polluted cities in the United States are all in California.

“A Southern California Children's Health study that examined the long-term effects of particle pollution on teenagers found that those who grew up in more polluted areas face the increased risk of having underdeveloped lungs, which may never recover to their full capacity. The average drop in lung function was 20 percent below what was expected for the child's age, similar to the impact of growing up in a home with parents who smoked.

“Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and on the health of our children.”

1. What measures will be implemented? SB 1383 directs ARB to implement the SLCP strategy, required by January 1, 2016 pursuant to SB 605 (Lara). ARB has not formally approved the SLCP strategy, and it currently exists in draft form. The strategy outlines numerous actions that could be taken, and in some cases are already underway, to address methane, black carbon, and F-gases in the state to meet the 2030 targets. Some of the proposals include:

• Removal and replacement of old fireplaces and woodstoves;
• Implementing a sustainable freight strategy;
• Regulations for best management practices for new dairies;
• Financial incentives for manure management and dairy digesters;
• Requiring organics diversion from landfills;
• Regulations to reduce methane emissions from oil and gas production, processing and storage;
• Financial incentives for low-GWP refrigeration early adoption; and
• Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

SB 1383 requires ARB to conduct public hearings and ensure the strategy is cost effective and technologically feasible, as well as consider other public health, job growth, and technological innovation benefits. Because of the additional actions and evaluations needed, the approved strategy may change significantly, and it is not clear to what extent all the measures and actions identified in the draft strategy will be implemented as part of the approved strategy pursuant to SB 1383 to meet the targets.

However, ARB does note in the report that any regulatory measures developed pursuant to the SLCP Strategy would undergo a public rulemaking process, including workshops, and economic and environmental evaluations.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee: Unknown cost pressures, potentially in the tens of millions of dollars or more, to fund programs to implement the strategies (Greenhouse Gas Reduction Fund or other special funds).

SUPPORT: (Verified 8/31/16)

Alliance of Nurses for Healthy Environment

All Power Labs

American Academy of Pediatrics – California

American Cancer Society Cancer Action Network, California

American Heart Association, California

American Lung Association in California

Anaergia

Asthma Coalition of Los Angeles County

Atlas ReFuel

Audubon California

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center, Central Valley and Bay Area

Bioenergy Association of California

Bonnie J. Addario Lung Cancer Foundation

Breathe California

California Association of Environmental Health Officers

California Association of Sanitation Agencies

California Bicycle Coalition

California Black Health Network, Inc.

California Conference of Directors of Environmental Health

California Hydrogen Business Council

California League of Conservation Voters

California Medical Association

California Natural Gas Vehicle Coalition

Californians Against Waste

California Nurses Association

California Pan-Ethnic Health Network

California Public Health Association – North

California Refuse Recycling Council

California Thoracic Society

California Walks

CalPIRG

Center for Climate Change and Health, Public Health Institute

Central California Asthma Collaborative

Clean Energy Renewables

Climate Resolve

Climate 911

Coalition for Clean Air

Coastal Environmental Rights Foundation

CR & R

Dignity Health

Environmental Defense Fund

Environment California

Harvest Power, Inc.

Health Care Without Harm

Health African American Families II

Health Officers Association of California

Inland Empire Disposal Association

Long Beach Alliance for Children with Asthma

Los Angeles County Department of Public Works

Los Angeles County Waste Management

Lutheran Office of Public Policy - California

Maternal and Child Health Access (Los Angeles)

Natural Resources Defense Council

Network of Ethnic Physician Organizations

Next Gen Climate

Phoenix Energy

Physicians for Social Responsibility, Los Angeles

Physicians, Scientists and Engineers Healthy Energy

Physicians for Social Responsibility/Sacramento

Prevention Institute

RAMP and Community Action to Fight Asthma

Recology

Republic Services, Inc.

San Francisco Bay Area Chapter, Physicians for Social Responsibility

San Joaquin County Asthma and COPD Coalition

Sierra Energy

Santa Clara County Public Health Department

Solid Waste Association of Orange County

St. John’s Well Child and Family Centers (Los Angeles)

The Trust for Public Land

TSS Consultants

Voices for Progress

West Biofuels

29 Individuals

OPPOSITION: (Verified 8/31/16)

Asian Pacific Environmental Network

Association of Home Appliance Manufacturers

California Business Properties Association

California Chamber of Commerce

California Fresh Fruit Association

California Grain & Feed Association

California Independent Petroleum Association

California Manufacturers & Technology Association

California Retailers Association

Center for Food Safety

Center for Race Poverty & the Environment Food and Water Watch Leadership Counsel for Justice and Accountability Communities for a Better Environment Center for Community Action for Environmental Justice

Comite ROSAS

Committee for a Better Arvin

Committee for a Better Shafter

Delano Guardians

Greenfield Walking Group.

Lamont Parent Partners

Los Angeles County, Solid Waste Management Committee/Integrated Waste Management Task Force

National Federation of Independent Business

Nisei Farmers League

Western Agricultural Processors Association

Western Growers Association

Western Plant Health Association

Western States Petroleum Association

Prepared by:

8/31/16 22:02:54

**** END ****

Date of Hearing: August 30, 2016

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

SBPCA Bill Id:SB 1383

Author:(Lara) – As Amended Ver:August 19, 2016

SENATE VOTE: 21-13

SUBJECT: Short-lived climate pollutants: methane emissions: organic waste: landfills

SUMMARY: Requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant (SLCP) strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic black carbon, by 2030. Establishes specific procedures to regulate landfill and dairy sources of methane, including delaying ARB's authority to require emission reductions from livestock and dairy sources until 2024.

Specifically, this bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in HFCs, and a 50% reduction in anthropogenic (i.e., non-forest) black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy;
   2. Hold at least three public hearings in geographically diverse locations in the state;
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.
4. States the intent of the Legislature:
   1. To support the adoption of policies that improve organics recycling and innovative, cost-effective, and environmentally beneficial uses of biomethane derived from solid waste facilities; and;
   2. That the disposal reduction targets established by the bill serve as a statewide average target and not as a minimum requirement for any jurisdiction.
5. States that methane emission reduction goals shall include targets to reduce the landfill disposal of organic waste 50% by 2020 and 75% by 2025 from the 2014 level.
6. Requires the California Department of Resources Recycling and Recovery (CalRecycle), in consultation with ARB, to adopt regulations to achieve the organics reduction targets. Specify that the regulations:
   1. May require local jurisdictions to impose requirements on generators or other relevant entities within their jurisdiction and impose penalties for noncompliance;
   2. Include requirements intended to meet the goal that not less than 20% of edible food that is currently disposed is recovered for human consumption by 2025;
   3. Shall not establish a numeric organic waste disposal limit for individual landfills;
   4. Include different levels of requirements for local jurisdictions and phased timelines based upon their progress in meeting the organic waste reduction goals, as specified;
   5. May include penalties to be imposed by CalRecycle for noncompliance; and,
   6. Take effect on or after January 1, 2022, except the imposition of penalties imposed by CalRecycle shall not take effect until two years after the effective date of the regulations.
7. Specifies that a local jurisdiction may charge and collect fees to cover the costs incurred in complying with the regulations.
8. Requires CalRecycle, in consultation with ARB, to analyze the progress that the waste sector, state government, and local governments have made in achieving the organic waste reduction goals. Require the analysis to include:
   1. The status of new organics recycling infrastructure development;
   2. The progress in reducing regulatory barriers to the siting of organics recycling facilities and the timing and effectiveness of policies that will facilitate the permitting of organics recycling infrastructure; and
   3. The status of markets for the products generated by organic recycling facilities, including cost-effective electrical interconnection and common carrier pipeline injection of digester biomethane and the status of markets for compost, biomethane, and other products from the recycling of organic waste.
9. Authorizes CalRecycle, if it determines that significant progress has not been made, to include incentives or additional requirements in the regulations.
10. Declares that the bill does not limit the authority of a local jurisdiction to adopt, implement, or enforce requirements in addition to the requirements of the bill or the regulations.

EXISTING LAW:

1. Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to the 1990 level by 2020, and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.
2. Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes of 2014, to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of SLCPs, defined as an agent that has a relatively short lifetime in the atmosphere and a climate-warming influence that is more potent than carbon dioxide.
3. Establishes, pursuant to AB 341 (Chesbro), Chapter 476, Statutes of 2011, a statewide waste diversion goal of 75% by 2020. Requires a commercial waste generator, including multi-family dwellings, to arrange for recycling services and requires local governments to implement commercial solid waste recycling programs designed to divert solid waste from businesses.
4. Requires, pursuant to AB 1826 (Chesbro), Chapter 727, Statutes of 2014, generators of specified amounts of organic waste to arrange for recycling services for that material. Defines "organic waste" as food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper that is mixed in with food waste.

FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown cost pressures, potentially in the tens of millions of dollars or more, to fund programs to implement the strategies (Greenhouse Gas Reduction Fund or other special funds).

COMMENTS:

1. Background. The 5^th 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.

Pursuant to AB 32, 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.

ARB approved an update to the Scoping Plan in 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 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.

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, 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.

1. Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.
2. HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing gases, but they are the fastest growing source of carbon pollution. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.
3. Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a GHG subject to AB 32 regulations. However, due to known health and air quality impacts, ARB has several programs to reduce PM emissions from heavy-duty vehicles. Black carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.

SB 605 requires ARB to complete a comprehensive strategy to reduce emissions of SLCPs by January 1, 2016. Following the release of a concept paper and a draft strategy, on April 11, 2016, ARB published a proposed SLCP Reduction Strategy, which is scheduled for adoption in September. The ARB Strategy recommends the same 40/40/50 targets for methane, HFCs, and black carbon as established by this bill. In addition to the targets, the Strategy proposes specific measures, including:

1. Removal and replacement of old fireplaces and woodstoves;
2. Implementing a sustainable freight strategy;
3. Regulations for best management practices for new dairies;
4. Financial incentives for manure management and dairy digesters;
5. Requiring organics diversion from landfills;
6. Regulations to reduce methane emissions from oil and gas production, processing and storage;
7. Financial incentives for low-global warming potential (GWP) refrigeration early adoption; and
8. Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts.

CalRecycle has been engaged with ARB in developing ARB's Strategy to reduce methane emissions from landfills. It is also is tasked with diverting at least 75% of solid waste generated statewide by 2020. Organic materials make up one-third of the waste stream and food continues to be the greatest single item disposed, comprising over 15% of materials landfilled. CalRecycle is also charged with implementing its Strategic Directive 6.1, which calls for reducing organic waste disposal by 50% by 2020. According to CalRecycle, significant gains in organic waste diversion are necessary to meet the 75% goal and implement Strategic Directive 6.1. Recycling technologies for organic waste include composting, anaerobic digestion, and other types of processing that generate renewable fuels, energy, soil amendments, and mulch. AB 1826 requires generators of significant quantities of organic waste to ensure the material is recycled.

Recycling organic waste provides significant GHG reductions over landfilling. Composting and other organics processing technologies, including anaerobic digestion, reduce GHGs by avoiding the emissions that would be generated by the material’s decomposition in a landfill, as well as by displacing fossil fuels. While most modern landfills have systems in place to capture methane, significant amounts continue to escape into the atmosphere. According to ARB’s GHG inventory, nearly 8.28 million metric tons of CO₂ equivalent are released annually by landfills in California.

According to the author, California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This bill represents the next step in those efforts, to establish a goal to reduce SLCPs that are among the most harmful emissions to both human health and global climate change. There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and the health of our children.

1. Proposed amendments. The author proposes amendments for adoption by the committee relating to emission reductions from the dairy sector and development and use of renewable gas, as follows:
   1. Require ARB to adopt regulations to reduce methane emissions from dairy and livestock manure management operations, subject to the following limitations:
      1. Reductions are limited to 40% below 2013 levels by 2030;
      2. Reduction regulations may not be implemented before 2024;
      3. ARB must first complete specified steps, including stakeholder consultation, public meetings, and research;
      4. ARB must determine the regulations are technologically feasible, economically feasible, cost-effective, and minimize and mitigate potential leakage;
      5. Requires ARB to analyze progress toward the targets and authorizes ARB to reduce the 40% by 2030 goal if the analysis determines that progress has not been made due to insufficient funding, technical or market barriers;
      6. Requires ARB and PUC to establish energy infrastructure development and procurement policies for dairy biomethane projects, including directing gas utilities to implement at least five dairy biomethane pilot projects; and
      7. Enteric emission reductions shall be achieved only through incentive-based mechanisms until ARB determines that a cost-effective, considering the impact on animal productivity, scientifically proven means of reducing enteric emissions is available and that adoption of the enteric emissions reduction method would not damage animal health, public health, or consumer acceptance.
   2. Require the Energy Commission, ARB and Public Utilities Commission to develop recommendations for development and use of renewable gas, then consider and adopt policies and incentives to increase production and use of renewable gas, including biomethane and biogas, that reduces SLCPs in the state.
2. Dairy amendments delay and otherwise limit ARB's existing authority to require emission reductions from dairy and livestock operations. The proposed amendments prevent implementation of emission reduction regulations before 2024. What appears to be a delay of up to seven years is mitigated by the fact that the bill does not limit ARB's authority to adopt and implement other regulations prior to 2024, such as requiring reporting and monitoring of emissions, and even to develop and adopt emission reduction regulations prior to 2024, as long as reduction obligations don't begin before 2024.

The proposed amendments limit the dairy sector's reduction obligation to 40% below 2013 levels, even if additional reductions are feasible and cost-effective relative to other sectors. The proposed amendments also authorize ARB to reduce the goal for the dairy and livestock sector if specified findings are made.

The proposed amendments prohibit ARB from regulating emissions from enteric fermentation until ARB, in consultation with the Department of Food and Agriculture, determines that a cost-effective, considering the impact on animal productivity, scientifically proven means of reducing enteric emissions is available and that adoption of the enteric emissions reduction method would not damage animal health, public health, or consumer acceptance.

The proposed amendments impose additional procedural and analytical requirements on ARB, including considering milk prices and the commitment of public funds, which are inconsistent with AB 32 and the recently passed requirements of AB 197 (E. Garcia), which provides direction to ARB regarding its actions to achieve GHG reductions beyond the 2020 statewide limit, including introducing the consideration of "social costs."

The author and the committee may wish to clarify that all of these limitations apply only to the 2020 and 2030 targets.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance of Nurses for Healthy Environment

All Power Labs

American Academy of Pediatrics – California

American Cancer Society Cancer Action Network, California

American Heart Association, California

American Lung Association in California

Anaergia

Asian Pacific Environmental Network

Asthma Coalition of Los Angeles County

Atlas ReFuel

Audubon California

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center, Central Valley and Bay Area

Bioenergy Association of California

Bonnie J. Addario Lung Cancer Foundation

Breathe California

California Association of Environmental Health Officers

California Association of Sanitation Agencies

California Bicycle Coalition

California Black Health Network, Inc.

California Conference of Directors of Environmental Health

California Hydrogen Business Council

California League of Conservation Voters

California Medical Association

California Natural Gas Vehicle Coalition

Californians Against Waste

California Nurses Association

California Pan-Ethnic Health Network

California Public Health Association – North

California Refuse Recycling Council

California Thoracic Society

California Walks

CalPIRG

Center for Climate Change and Health, Public Health Institute

Central California Asthma Collaborative

Clean Energy Renewables

Climate Resolve

Climate 911

Coalition for Clean Air

Coastal Environmental Rights Foundation

CR & R

Dignity Health

Environmental Defense Fund

Environment California

Harvest Power, Inc.

Health Care Without Harm

Health African American Families II

Health Officers Association of California

Inland Empire Disposal Association

Long Beach Alliance for Children with Asthma

Los Angeles County Department of Public Works

Los Angeles County Waste Management

Lutheran Office of Public Policy - California

Maternal and Child Health Access (Los Angeles)

Natural Resources Defense Council

Network of Ethnic Physician Organizations

Next Gen Climate

Phoenix Energy

Physicians for Social Responsibility, Los Angeles

Physicians, Scientists and Engineers Healthy Energy

Physicians for Social Responsibility/Sacramento

Prevention Institute

RAMP and Community Action to Fight Asthma

Recology

Republic Services, Inc.

San Francisco Bay Area Chapter, Physicians for Social Responsibility

San Joaquin County Asthma and COPD Coalition

Sierra Club California

Sierra Energy

Santa Clara County Public Health Department

Solid Waste Association of Orange County

St. John’s Well Child and Family Centers (Los Angeles)

The Trust for Public Land

TSS Consultants

Union of Concerned Scientists

Voices for Progress

West Biofuels

29 Individuals

Opposition

Association of Home Appliance Manufacturers

California Business Properties Association

California Chamber of Commerce

California Fresh Fruit Association

California Grain & Feed Association

California Independent Petroleum Association

California Manufacturers & Technology Association

California Retailers Association

Los Angeles County, Solid Waste Management Committee/Integrated Waste Management Task

Force

Milk Producers Council

National Federation of Independent Business

Nisei Farmers League

Western Agricultural Processors Association

Western Growers Association

Western Plant Health Association

Western States Petroleum Association

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092

SENATE THIRD READING

STR Bill Id:SB 1383

Author:(Lara)

As Amended Ver:August 15, 2016

Majority vote

SENATE VOTE: 21-13

SUMMARY: Requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant (SLCP) strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic black carbon, by 2030. Specifically, this bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in HFCs, and a 50% reduction in anthropogenic (i.e., non-forest) black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy;
   2. Hold at least three public hearings in geographically diverse locations in the state;
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.

EXISTING LAW:

1. Requires ARB, pursuant to California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488, Statutes of 2006), to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to the 1990 level by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.
2. Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes of 2014, to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of SLCPs, defined as an agent that has a relatively short lifetime in the atmosphere and a climate-warming influence that is more potent than carbon dioxide.

FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown cost pressures, potentially in the tens of millions of dollars or more, to fund programs to implement the strategies (Greenhouse Gas Reduction Fund or other special funds).

COMMENTS: 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.

Pursuant to AB 32, 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.

ARB approved an update to the Scoping Plan in 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 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.

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, 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.

Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.

HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing gases, but they are the fastest growing source of carbon pollution. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.

Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a GHG subject to AB 32 regulations. However, due to known health and air quality impacts, ARB has several programs to reduce PM emissions from heavy-duty vehicles. Black carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.

SB 605 requires ARB to complete a comprehensive strategy to reduce emissions of SLCPs by January 1, 2016. Following the release of a concept paper and a draft strategy, on April 11, 2016, ARB published a proposed SLCP Reduction Strategy, which is scheduled for adoption in September. The ARB Strategy recommends the same 40/40/50 targets for methane, HFCs, and black carbon as established by this bill. In addition to the targets, the Strategy proposes specific measures, including:

1. Removal and replacement of old fireplaces and woodstoves;
2. Implementing a sustainable freight strategy
3. Regulations for best management practices for new dairies;
4. Financial incentives for manure management and dairy digesters;
5. Requiring organics diversion from landfills;
6. Regulations to reduce methane emissions from oil and gas production, processing and storage;
7. Financial incentives for low-GWP refrigeration early adoption; and
8. Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts.

According to the author, California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This (bill) represents the next step in those efforts, to establish a goal to reduce SLCPs that are among the most harmful emissions to both human health and global climate change. There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma…Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and the health of our children.

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0004385

Date of Hearing: August 3, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1383

Author:(Lara) – As Amended Ver:April 12, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Air Resources Board (ARB) to approve and begin implementing the comprehensive short-lived climate pollutant (SLCP) strategy by January 1, 2018. Specifically, this bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic (i.e., non-forest) black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy.
   2. Hold at least three public hearings in geographically diverse locations in the state.
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible.
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.

FISCAL EFFECT:

Unknown cost pressures, potentially in the tens of millions of dollars or more, to fund programs to implement the strategies (Greenhouse Gas Reduction Fund or other special funds).

COMMENTS:

1. Purpose. According to the author, California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. However, those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This bill establishes a goal to reduce SLCPs that are among the most harmful emissions for both human health and global climate change.
2. Background. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directed ARB to develop a comprehensive SLCP strategy by January 1, 2016. In developing the strategy, SB 605 required ARB to complete an inventory of SLCP sources and emissions, identify research needs and data gaps, and identify existing and potential new control measures to reduce SLCP emissions.

In April of 2016, ARB released a proposed SLCP strategy that set reduction targets for methane, black carbon, and HFCs, of 40%, 50%, and 40%, respectively, by 2030. Some of the proposed measures to achieve black carbon emissions reductions include the replacement of wood-burning stoves, and implementation of a sustainable freight strategy.

To meet the methane reduction target, the proposed strategies included manure management measures, regulations on new dairies, prohibiting organics in landfills, and oil and gas sector methane regulations.

HFCs are targeted in the proposed strategy through initiatives to provide financial incentives to low global warming potential (GWP) refrigerants and bans on very high GWP refrigerants and equipment.

ARB staff will receive and consider comments on this proposed strategy and prepare a final strategy to present to the Board for consideration in fall 2016.

1. GGRF funding for SLCP. The California Global Warming Solutions Act of 2006 (AB 32, Chapter 488, Statutes of 2006) required ARB to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. As part of its AB 32 implementation, ARB adopted a cap-and-trade program for which the proceeds from the auction or sale of GHG allowances are deposited in the GGRF available for appropriation by the Legislature.

To date, cap-and-trade auction revenues have generated over $4 billion. However, the most recent auction, held last month, generated just over $10 million, much less than expected. The previous auction (February, 2016) generated over $500 million.

The Governor proposed several GGRF appropriations in the 2016-17 budget for programs aimed at reducing short-lived climate pollutants including: $40 million to support a grant program for a residential wood burning device replacement incentive program; $20 million for refrigeration incentive program; and $35 million for dairy digester research and methane reduction. The Legislature did not act on these items. According to the Assembly Budget Committee, due to lower-than-expected auction revenues, decisions on cap-and-trade funding were deferred until after June 15, 2016.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: June 27, 2016

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

SBPCA Bill Id:SB 1383

Author:(Lara) – As Amended Ver:April 12, 2016

SENATE VOTE: 21-13

SUBJECT: Short-lived climate pollutants

SUMMARY: Requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant (SLCP) strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and a 50% reduction in anthropogenic black carbon, by 2030.

EXISTING LAW:

1. Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to the 1990 level by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.
2. Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes of 2014, to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of SLCPs, defined as an agent that has a relatively short lifetime in the atmosphere and a climate-warming influence that is more potent than carbon dioxide.
   

THIS BILL:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in HFCs, and a 50% reduction in anthropogenic (i.e., non-forest) black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy;
   2. Hold at least three public hearings in geographically diverse locations in the state;
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible; and
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.

FISCAL EFFECT: According to the Senate Appropriations Committee, unknown, but potentially millions of dollars in cost pressures to implement the comprehensive strategy (Greenhouse Gas Reduction Fund).

COMMENTS:

1. Background. The 5^th 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.

Pursuant to AB 32, 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.

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 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.

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.

1. Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a GHG subject to AB 32 regulations. However, due to known health and air quality impacts, ARB has several programs to reduce PM emissions from heavy-duty vehicles. Black carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.
2. Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.
3. HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing, but they are the fastest growing source of carbon pollution. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.

SB 605 (Lara, Chapter 523, Statutes of 2014) requires ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants by January 1, 2016. Following the release of a concept paper and a draft strategy, on April 11, 2016, ARB published a proposed SLCP Reduction Strategy, which is scheduled for adoption in September. The ARB Strategy recommends the same 40/40/50 targets for methane, HFCs, and black carbon as established by this bill. In addition to the targets, the Strategy proposes specific measures, including:

1. Removal and replacement of old fireplaces and woodstoves;
2. Implementing a sustainable freight strategy
3. Regulations for best management practices for new dairies;
4. Financial incentives for manure management and dairy digesters;
5. Requiring organics diversion from landfills;
6. Regulations to reduce methane emissions from oil and gas production, processing and storage;
7. Financial incentives for low-GWP refrigeration early adoption; and
8. Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

ARB indicates that each proposed regulation will be subject to its own public process with workshops, opportunities for stakeholder discussion, consideration of environmental justice, and legally required analyses of the economic and environmental impacts.

1. Author's statement:

California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This (bill) represents the next step in those efforts, to establish a goal to reduce SLCPs that are among the most harmful emissions to both human health and global climate change.

There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma…

Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and the health of our children.

1. Prior legislation.

SB 605 (Lara, Chapter 523, Statutes of 2014) requires ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants by January 1, 2016.

AB 1496 (Thurmond, Chapter 604, Statutes of 2015) requires ARB to monitor high-emission methane hot-spots in the state; consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports; update relevant policies and programs based on those updated life-cycle analyses; and, review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance of Nurses for Healthy Environment

American Academy of Pediatrics – California

American Cancer Society Cancer Action Network, California

American Lung Association

American Heart Association, California

Asthma Coalition of Los Angeles County

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center

Ben & Jerry’s

Bloom Energy

Bonnie J. Addario Lung Cancer Foundation

Breathe California

Burton

California Black Health Network, Inc.

Californians Against Waste

California Conference of Directors of Environmental Health

California Environmental Justice Alliance

California Medical Association

California Nurses Association

California Pan-Ethic Health Network

California Public Health Association – North

California State PTA

California Thoracic Society

California Walks

Center for Climate Change and Health , Public Health Institute

Center for Food Safety

Center on Race, Poverty & the Environment

Central California Asthma Collaborative

Central California Environmental Justice Network

Clean Power Campaign

Clif Bar & Company

Climate 911

Common Sense Kids Action

Community Alliance for Agroecology

Dignity Health

Eileen Fisher

Environmental Defense Fund

Environmental Health Coalition

Fetzer Vineyards

Food & Water Watch

Health African American Families II

Health Care Without Harm

Health Officers Association of California

Institute for Agriculture and Trade Policy

Leadership Counsel for Justice and Accountability

Levi Strauss & Co.

Long Beach Alliance for Children with Asthma

Maternal and Child Health Access (Los Angeles)

Medical Advocates for Healthy Air

Network of Ethnic Physician Organizations

Nike, Inc.

Patagonia

Placer Land Trust

PSE Healthy Energy (Physicians, Scientists and Engineers)

Physicians for Social Responsibility, Sacramento

Physicians for Social Responsibility, San Francisco Bay Area Chapter

Prevention Institute

St. John’s Well Child and Family Centers (Los Angeles)

Santa Clara County Board of Supervisors

Santa Clara County Public Health Department

Seventh Generation

Sierra Business Council

Sierra Club California

Sierra Foothill Conservancy

The North Face

Timberland

Truckee Donner Land Trust

Vans

VF Corporation

Voices for Progress

30 Individuals

Opposition

Agricultural Council of California

Association of California Egg Farmers

Association of Home Appliance Manufacturers

California Poultry

California Business Properties Association

California Cattlemen’s Association

California Chamber of Commerce

California Citrus Mutual

California Cattlemen’s Association

California Cotton Ginners and Growers Association

California Council for Environmental and Economic Balance

California Dairies, Inc.

California Farm Bureau Federation

California Fresh Fruit Association

California Grain & Feed Association

California Manufacturers & Technology Association

California Poultry

California Retailers Association

CIPA

Milk Producers Council

NFIB

Nisei Farmers League

Pacific Coast Rendering Association

Western Agricultural Processors Association

Western Growers

Western Plant Health Association

WSPA

Waste Management

Western United Dairymen

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092

 THIRD READING  

Bill No: SB 1383

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 4-2, 4/6/16

AYES: Wieckowski, Hill, Leno, Pavley

NOES: Gaines, Bates

NO VOTE RECORDED: Jackson

SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16

AYES: Lara, Beall, Hill, McGuire, Mendoza

NOES: Bates, Nielsen

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the Air Resources Board (ARB) to approve and implement the comprehensive short-lived climate pollutant strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.

ANALYSIS:

Existing law:

1. Requires, under the California Global Warming Solutions Act of 2006, ARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation (Health and Safety Code §38500 et seq.).
2. Requires ARB to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state.

This bill:

1. Requires ARB to approve and begin implementing the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.
2. Requires ARB, prior to approving the strategy, to do all of the following:
   1. Coordinate with other state and local governments to develop measures identified in the strategy;
   2. Hold at least three public hearings in geographically diverse locations in the state;
   3. Evaluate the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible;
   4. Incorporate and prioritize, as appropriate, measures and actions that provide cobenefits, as specified.
3. Requires ARB to publicly notice the strategy and post a copy of the strategy on their Web site at least one month prior to approval.
   

Background

1. Short-lived Climate Pollutants. Greenhouse gases or climate pollutants, such as CO2, work to warm the earth by trapping solar radiation in the earth’s atmosphere. Depending on the molecule, these pollutants can vary greatly in their ability to trap heat, which is termed their global warming potential, and the length of time they remain in the atmosphere. CO2 remains in the atmosphere for centuries, which makes it the most critical greenhouse gas to reduce in order to limit long-term climate change. However, climate pollutants including methane, tropospheric ozone, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few days to a few decades), but when measured in terms of how they heat the atmosphere (global warming potential, or GWP), can be tens, hundreds, or even thousands of times greater than that of CO2. These climate forcers are termed short-lived climate pollutants (SLCPs).

Because SLCPs remain in the atmosphere for a relatively short period of time, but have a much higher global warming potential than CO2, efforts aimed at reducing their emissions in their near term would result in more immediate climate, air quality, and public health benefits, than a strategy focused solely on CO2. According to ARB’s SLCP draft strategy, “while the climate impacts of CO2 reductions take decades or more to materialize, cutting emissions of SLCPs can immediately slow global warming and reduce the impacts of climate change.” Recent research estimates that SLCPs are responsible for about 40% of global warming to date and that actions to reduce SLCP emissions could cut the amount of warming that would occur over the next few decades by half.

According to ARB’s 2015 updated Scoping Plan and the proposed Short-Lived Climate Pollutant Strategy, the three short-lived climate pollutants with the greatest implications for California are the following:

Black carbon: Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute two-thirds of the total black carbon emissions in the state. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a greenhouse gas subject to AB 32 regulations. However, due to known health and air quality impacts, ARB has several programs to reduce PM emissions from heavy-duty vehicles. Black carbon has a global warming potential 3200 times that of CO2 on a 20-year time scale.

Methane: Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). Methane is about 80 times more powerful as a global warming pollutant than CO2 on a 20-year time scale.

Hydrofluorocarbons (HFC): HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing, but they are the fastest growing source of carbon pollution. HFCs, on average, have a global warming potential 1600 times that of CO2 on a 20-year time scale.

1. Budget and SLCPs. Several appropriations in the Governor’s proposed 2016-17 budget proposal are aimed at reducing short-lived climate pollutants through GGRF investments, including $40 million to support a grant program for a new residential wood burning device replacement and incentive program; $20 million for an incentive program to provide new refrigeration technologies with refrigerants with much lower global warming potentials; and $35 million for dairy digester research and development to reduce methane.
2. SLCP Strategy. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directs ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of SLCPs in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions.

In September of 2015, ARB released a draft SLCP strategy required by SB 605, which was updated in April of this year. The proposed strategy sets targets for methane, black carbon, and reductions in F-gases, of 40%, 50%, and 40%, respectively, by 2030.

Comments

1. Purpose of Bill. According to the author, “California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO2, the most significant long-term driver of climate change. This strategy represents the next step in those efforts, to establish a goal to reduce short lived climate pollutants that are among the most harmful emissions to both human health and global climate change.

“There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. This impact is most profound in children. One in eleven children in Los Angeles County suffers from asthma. For black children, the number is one in four.

“The impact of air pollution on children is not limited to just heart and lung problems. Asthma is now the leading medical cause of absenteeism in LA schools, impacting children’s learning and development. Limited opportunities for physical activity due to respiratory illness and poor air quality also contribute to an epidemic of overweight and childhood diabetes that disproportionally impacts Black and Latino communities.

“Although the problem is statewide, these challenges disproportionally impact poor families and communities of color. According to the 2015 State of the Air Report from the American Lung Association, the top five most polluted cities in the United States are all in California.

“A Southern California Children's Health study that examined the long-term effects of particle pollution on teenagers found that those who grew up in more polluted areas face the increased risk of having underdeveloped lungs, which may never recover to their full capacity. The average drop in lung function was 20 percent below what was expected for the child's age, similar to the impact of growing up in a home with parents who smoked.

“Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and on the health of our children.”

1. What measures will be implemented? SB 1383 directs ARB to implement the SLCP strategy, required by January 1, 2016 pursuant to SB 605 (Lara). ARB has not formally approved the SLCP strategy, and it currently exists in draft form. The strategy outlines numerous actions that could be taken, and in some cases are already underway, to address methane, black carbon, and F-gases in the state to meet the 2030 targets. Some of the proposals include:

• Removal and replacement of old fireplaces and woodstoves;
• Implementing a sustainable freight strategy;
• Regulations for best management practices for new dairies;
• Financial incentives for manure management and dairy digesters;
• Requiring organics diversion from landfills;
• Regulations to reduce methane emissions from oil and gas production, processing and storage;
• Financial incentives for low-GWP refrigeration early adoption; and
• Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

The strategy is subject to review under CEQA. Additionally, SB 1383 requires ARB to conduct public hearings and ensure the strategy is cost effective and technologically feasible, as well as considering other public health, job growth, and technological innovation benefits. Because of the additional actions and evaluations needed, the approved strategy may change significantly, and it is not clear to what extent all the measures and actions identified in the draft strategy will be implemented as part of the approved strategy pursuant to SB 1383 to meet the targets.

However, ARB does note in the report that any regulatory measures developed pursuant to the SLCP Strategy would undergo a public rulemaking process, including workshops, and economic and environmental evaluations.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, the fiscal impact is “unknown, but potentially millions of dollars, in cost pressures to implement the comprehensive strategy. (Greenhouse Gas Reduction Fund).”

SUPPORT: (Verified 5/27/16)

Alliance of Nurses for Healthy Environment

American Academy of Pediatrics, California

American Lung Association in California

American Heart Association, California

Asthma Coalition of Los Angeles County

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center

Bloom Energy

Bonnie J. Adario Lung Cancer Foundation

Breathe California

California Black Health Network, Inc.

California Conference of Directors of Environmental Health

California Nurses Association

California Public Health Association-North

California Thoracic Society

California Walks

CALPIRG

Center for Climate Change and Health

Central California Asthma Collaborative

Climate 911

Coalition for Clean Air

Common Sense Kids Action

Dignity Health

Environmental Defense Fund

Health Care Without Harm

Long Beach Alliance for Children with Asthma

Maternal and Child Health Access, Los Angeles

Network for Ethnic Physician Organizations

Physician Engineers and Scientists Healthy Energy

Physicians for Social Responsibility, Los Angeles Chapter

Physicians for Social Responsibility, San Francisco Bay Area Chapter

Public Health Institute

Santa Clara County Board of Supervisors

St. John’s Well Child and Family Centers, Los Angeles

Voices for Progress

18 Individuals

OPPOSITION: (Verified 5/27/16)

Agricultural Council of California

Association of California Egg Farmers

California Business Properties Association

California Cattlemen’s Association

California Chamber of Commerce

California Citrus Mutual

California Cotton Ginners and Growers Association

California Council for Environmental and Economic Balance

California Dairies, Inc.

California Farm Bureau Federation

California Fresh Fruit Association

California Grain & Feed Association

California Independent Petroleum Association

California Manufacturers &Technology Association

California Poultry Federation

California Retailers Association

Milk Producers Council

National Federation of Independent Business

Nisei Farmers League

Pacific Coast Rendering Association

Waste Management

Western Agricultural Processors Association

Western Growers Association

Western Plant Health Association

Western States Petroleum Association

Western United Dairymen

ARGUMENTS IN SUPPORT: Supporters state that this bill is the logical

follow-up to SB 605, which put a much-needed priority on SLCPs, which have a

much higher global warming potential than carbon dioxide. Supporters also state

that the bill is a vital public health measure that will protect residents across the

state, and especially in the most disadvantaged communities, from health-

damaging air pollution, and bring additional health benefits while reducing the

health impacts of climate change.

ARGUMENTS IN OPPOSITION: Opponents state that SB 1383 will lead to

duplicative regulations and increased costs for operations within the state, while

sacrificing legislative oversight, and will result in economic and emissions leakage.

They also note that direct regulations of methane from dairies will eliminate the

potential for offsets under the cap-and-trade program. Agricultural sector

opponents state that the reduction mandates in the bill are unrealistic, and that

incentives and voluntary reductions can get California to SLCP goals much more

quickly than direct regulation. They also note that a vote for SB 1383 is essentially

supporting ARB’s SLCP strategy, which they state has numerous problems.

Prepared by:

5/28/16 17:15:09

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 1383 (Lara) - Short-lived climate pollutants

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 1383 requires the Air Resources Board (ARB) to approve and implement the comprehensive strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.

Fiscal Impact:

Unknown, but potentially millions of dollars, in cost pressures to implement the comprehensive strategy. (Greenhouse Gas Reduction Fund).

Background:

According to ARB’s 2015 updated Scoping Plan, black carbon, methane, and hydrofluorocarbon gases are the three short-lived climate pollutants (SLCP) with the greatest implications for California. Several appropriations in the Governor’s proposed 2016-17 budget proposal are aimed at reducing short-lived climate pollutants through GGRF investments, including $40 million to support a grant program for a new residential wood burning device replacement and incentive program; $20 million for an incentive program to provide new refrigeration technologies with refrigerants with much lower global warming potentials; and $35 million for dairy digester research and development to reduce methane.

SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directed ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of SLCPs in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions.

In September of 2015, ARB released a draft SLCP strategy required by SB 605. The draft strategy sets targets for methane, black carbon, and reductions in F-gases, of 40%, 50%, and 40%, respectively, by 2030. Some of the proposed measures to achieve black carbon emissions reductions include replacement of wood-burning stoves, and implementing a sustainable freight strategy. To meet the methane reduction target, the draft strategy proposes manure and enteric management measures, including regulations on new dairies, prohibiting organics in landfills, oil and gas sector methane regulations, and others. F-gases are targeted in the strategy through proposals to provide financial incentives to low global warming potential (GWP) refrigerants and bans on very high GWP refrigerants and equipment.

Proposed Law:

This bill:

• Requires the ARB to approve and implement the comprehensive strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.
• Provides that it is the intent of the Legislature that ARB consider coordinating with other state and local governments to develop measures identified in the strategy; holding at least three public hearings in geographically diverse locations in the state; and evaluating the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible, among others.

Related Legislation:

SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) required ARB to develop a short-lived climate pollutant strategy by January 1, 2016.

Staff Comments:

SB 1383 directs ARB to implement the SLCP strategy, required by January 1, 2016 pursuant to SB 605 (Lara). ARB has not yet formally approved the SLCP strategy, though it currently exists in draft form. The draft outlines numerous actions that could be taken, and in some cases are already underway, to address methane, black carbon, and F-gases in the state to meet the 2030 targets.

The draft strategy has not yet been approved by the Board, and is subject to review under CEQA. Additionally, SB 1383 includes legislative intent for ARB to conduct public hearings and ensure the strategy is cost effective and technologically feasible, as well as considering other public health, job growth, and technological innovation benefits. Because of the additional actions and evaluations needed, the approved strategy may change significantly, and it is not clear to what extent all the measures and actions identified in the draft strategy will be implemented as part of the approved strategy pursuant to SB 1383 to meet the targets.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 1383

SUBJECT: Short-lived climate pollutants

ANALYSIS:

Existing law:

1. Existing law, under the California Global Warming Solutions Act of 2006 requires the California Air Resources Control Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation (Health and Safety Code §38500 et seq.).
2. Requires ARB to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state.

This bill:

1. Requires ARB to approve and implement the comprehensive strategy to reduce SLCPs in the state to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030.
   
2. Provides that it is the intent of the Legislature that ARB consider, when approving and implementing the plan, all of the following:
   1. Coordinating with other state and local governments to develop measures identified in the strategy;
   2. Holding at least three public hearings in geographically diverse locations in the state;
   3. Evaluating the best available scientific, technological, and economic information to ensure the strategy is cost effective and technologically feasible;
   4. Consider the impact of the strategy on:
      1. Job growth and local economic benefits in the state;
      2. Public health benefits for residents, particularly in disadvantaged communities;
      3. Potential for innovation in technology, energy, and resource management practices.
         

Background

1. Short-lived Climate Pollutants. Greenhouse gases or climate pollutants, such as CO₂, work to warm the earth by trapping solar radiation in the earth’s atmosphere. Depending on the molecule, these pollutants can vary greatly in their ability to trap heat, which is termed their global warming potential, and the length of time they remain in the atmosphere. CO₂ remains in the atmosphere for centuries, which makes it the most critical greenhouse gas to reduce in order to limit long-term climate change. However, climate pollutants including methane, tropospheric ozone, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few days to a few decades), but when measured in terms of how they heat the atmosphere (global warming potential, of GWP), can be tens, hundreds, or even thousands of times greater than that of CO₂. These climate forcers are termed short-lived climate pollutants (SLCPs).

Because SLCPs remain in the atmosphere for a relatively short period of time, but have a much higher global warming potential than CO₂, efforts aimed at reducing their emissions in their near term would result in more immediate climate, air quality, and public health benefits, than a strategy focused solely on CO₂. According to ARB’s SLCP draft strategy, “while the climate impacts of CO₂ reductions take decades or more to materialize, cutting emissions of SLCPs can immediately slow global warming and reduce the impacts of climate change.” Recent research estimates that SCLPs are responsible for about 40% of global warming to date and that actions to reduce SLCP emissions could cut the amount of warming that would occur over the next few decades by half.

According to ARB’s 2015 updated Scoping Plan, the three short-lived climate pollutants with the greatest implications for California are the following:

Black carbon: Black carbon, a component of soot, also known as PM 2.5, comes from diesel engines and incomplete burning of carbon sources. Wildfires contribute almost 50% of the total black carbon emissions in the state. Black carbon also darkens the surface of snow and ice, which accelerates heat absorption and melting, and is thought be the second greatest contributor to global climate change, after CO₂. In addition to being a powerful global warming pollutant, black carbon is associated with numerous negative health impacts and is designated a potential human carcinogen. Black carbon is not listed under AB 32 as a greenhouse gas subject to AB 32 regulations. However, due to known health and air quality impacts, ARB adopted truck and bus regulations in 2008 to control diesel PM emissions. ARB also administers the Carl Moyer Program, which provides grants to fund “cleaner than required” engine upgrades, or retrofits that reduce PM 2.5 and other pollutants. Black Carbon has a global warming potential 3200 times that of CO₂ on a 20-year time scale.

Methane: Methane (CH₄) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Many emissions sources of methane are unregulated (e.g., methane from dairy production and fugitive methane emissions from landfills and natural gas distribution). In fact, a 2014 Stanford University study found that methane emissions may be 50% higher than official estimates from the US EPA. In 2010, ARB approved a regulatory measure as an AB 32 discrete early action measure that requires installation of landfill gas collection and control systems. ARB has also released draft regulations to reduce fugitive methane from the oil and gas sector. Methane is about 80 times more powerful as a global warming pollutant than CO₂ on a 20-year time scale.

Hydrofluorocarbons (HFC): HFCs (also known as F-gases) are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. Currently, HFCs are a small fraction of the total climate forcing, but they are the fastest growing source of carbon pollution. ARB has implemented several measures to reduce HFC emissions including low-global warming potential (GWP) requirements for aerosol propellants, a deposit-return recycling program for small cans of air conditioner refrigerant and a refrigerant management program. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale.

1. Climate change, environmental quality, and public health. In addition to increasing sea levels and dwindling biodiversity, climate change will have significant impacts on environmental quality and public health.

A number of impacts from climate change can lead to worsening air quality. Longer, hotter days during the dry seasons result in more ground-level pollutants like ozone. Additionally, dry conditions from high temperatures and worsening drought lead to longer fire seasons and increasing wildfire frequency and intensity.

Climate change can also lead to more frequent and extreme weather. This includes heavy rainfall events, which can trigger landslides and debris flows that are especially problematic in areas where wildfires have occurred. Heavy rain events can also overwhelm sewage and water treatment facilities with negative impacts to water quality. Additionally, drought is an important consideration for water quality. Because of reduced water reserves, groundwater pumping may continue to increase, resulting in higher concentration of pollutants in drinking water.

High heat and drought can also facilitate the spread of West Nile Virus (WNV) by aiding the development of mosquitoes, which spread the virus to people, birds, and other animals. Last year in California, the number of mosquitoes carrying WNV surged to unprecedented levels.

1. Budget and SLCPs. Several appropriations in the Governor’s proposed 2016-17 budget proposal are aimed at reducing short-lived climate pollutants through GGRF investments, including $40 million to support a grant program for a new residential wood burning device replacement and incentive program; $20 million for an incentive program to provide new refrigeration technologies with refrigerants with much lower global warming potentials; and $35 million for dairy digester research and development to reduce methane.
2. SLCP Strategy. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) directs ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of SLCPs in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions.

In September of 2015, ARB released a draft SLCP strategy required by SB 605. The draft strategy sets targets for methane, black carbon, and reductions in F-gases, of 40%, 50%, and 40%, respectively, by 2030. Some of the proposed measures to achieve black carbon emissions reductions include replacement of wood-burning stoves, and implementing a sustainable freight strategy. To meet the methane reduction target, the draft strategy proposes manure and enteric management measures, including regulations on new dairies, prohibiting organics in landfills, oil and gas sector methane regulations, and others. F-gases are targeted in the strategy through proposals to provide financial incentives to low GWP refrigerants and bans on very high GWP refrigerants and equipment.

Comments

1. Purpose of Bill. According to the author, “California has been a proud and bold leader in pursuing environmental policies to reduce climate change and address the sources that cause it. Those policies have mostly focused on reducing emissions of CO₂, the most significant long-term driver of climate change. This strategy represents the next step in those efforts, to establish a goal to reduce short lived climate pollutants that are among the most harmful emissions to both human health and global climate change.

“There is an urgent need to develop a strategy to address and reduce these deadly pollutants. Extensive research links particulate pollution and increased ozone levels to severe and chronic health conditions such as cancer, heart disease, and asthma. This impact is most profound in children. One in eleven children in Los Angeles County suffers from asthma. For Black children, the number is one in four.

“The impact of air pollution on children is not limited to just heart and lung problems. Asthma is now the leading medical cause of absenteeism in LA schools, impacting children’s learning and development. Limited opportunities for physical activity due to respiratory illness and poor air quality also contribute to an epidemic of overweight and childhood diabetes that disproportionally impacts Black and Latino communities.

“Although the problem is statewide, these challenges disproportionally impact poor families and communities of color. According to the 2015 State of the Air Report from the American Lung Association, the top five most polluted cities in the United States are all in California.

“A Southern California Children's Health study that examined the long-term effects of particle pollution on teenagers found that those who grew up in more polluted areas face the increased risk of having underdeveloped lungs, which may never recover to their full capacity. The average drop in lung function was 20 percent below what was expected for the child's age, similar to the impact of growing up in a home with parents who smoked.

“Reducing super pollutants in California will have an immediate beneficial effect – dramatically reducing the serious impacts these pollutants have on our air quality and on the health of our children.”

1. What measures will be implemented? SB 1383 directs ARB to implement the SLCP strategy, required by January 1, 2016 pursuant to SB 605 (Lara). ARB has not yet formally approved the SLCP strategy, and it currently exists in draft form. The draft outlines numerous actions that could be taken, and in some cases are already underway, to address methane, black carbon, and F-gases in the state to meet the 2030 targets. Some of the proposals include:
   • Removal and replacement of old fireplaces and woodstoves;
   • Implementing a sustainable freight strategy;
   • Regulations for best management practices for new dairies;
   • Financial incentives for manure management and dairy digesters;
   • Requiring organics diversion from landfills;
   • Regulations to reduce methane emissions from oil and gas production, processing and storage;
   • Financial incentives for low-GWP refrigeration early adoption; and
   • Bans on the sale of very-high GWP refrigerants and prohibitions on new equipment using high GWP gases.

The draft strategy has not yet been approved by the Board, and is subject to review under CEQA. Additionally, SB 1383 includes legislative intent for ARB to conduct public hearings and ensure the strategy is cost effective and technologically feasible, as well as considering other public health, job growth, and technological innovation benefits. Because of the additional actions and evaluations needed, the approved strategy may change significantly, and it is not clear to what extent all the measures and actions identified in the draft strategy will be implemented as part of the approved strategy pursuant to SB 1383 to meet the targets.

However, ARB does note in the report that any regulatory measures developed pursuant to the SLCP Strategy would undergo a public rulemaking process, including workshops, and economic and environmental evaluations.

1. AB 32 authority. HFCs and methane are defined as greenhouse gas emissions under AB 32. Pursuant to that authority, ARB has implemented several regulations targeting those two short-lived pollutants. Because those pollutants are included in AB 32, and AB 32 expresses legislative intent that the 2020 GHG emissions limit remains in effect indefinitely, it is unclear whether SB 1383 expands ARB’s existing authority to regulate HFCs and methane.

However, black carbon is not included as a greenhouse gas under AB 32. As SB 1383 would establish black carbon as a short-lived climate pollutant, and by definition a greenhouse gas, SB 1383 may expand ARB’s current authority to regulate black carbon.

1. Approving and implementing the strategy. SB 1383 directs ARB to approve and implement the strategy they are currently required to complete by January 1, 2016, pursuant to SB 605 (Lara). However, the bill specifies legislative intent that ARB consider, while approving and implementing the strategy, holding public hearings, coordinating with other governmental agencies, evaluating cost-effectiveness and technological feasibility, and assessing cobenefits. How will these considerations be incorporated into the strategy after that strategy has been fully developed, and is in the approval and implementation phase?

Additionally, instead of requiring ARB to hold public hearings, coordinate with other agencies, evaluate to ensure the strategy is cost effective and technologically feasible, and assess economic, public health, and technological benefits of the strategy, SB 1383 specifies that it is the intent of the Legislature that ARB consider doing all of the above, while approving and implementing the strategy.

For these efforts to inform and be incorporated into the approved strategy, amendments are needed to require ARB, prior to approval of the strategy, to do all of the following:

1. Coordinate with state and local governments on measures in the strategy;
2. Provide three public hearings in geographically diverse locations of the state;
3. Evaluate the best-available scientific, technological, and economic information to ensure that the strategy is cost effective and technologically feasible.
4. Incorporate, and prioritize, as appropriate, measures and actions that provide job growth and local economic benefits in state, public health benefits, particularly in disadvantaged communities, and potential for new innovation in technology, energy, and resource management practices.
5. Implementation. SB 1383 requires ARB implement the strategy by January 1, 2018. As implementing the strategy will likely involve a full rulemaking process, a clarifying amendment is needed to specify that ARB is required to begin implementation of the strategy by January 1, 2018.
6. Review prior to approval. Amendments are needed to require ARB, at least one month prior to approval, to publicly notice consideration of the strategy and post the strategy on their website.
7. Technical amendment. An amendment is needed to amend the section number for SB 1383, since Section 39731 in the Health and Safety Code already exists.
   

Related/Prior Legislation

SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) requires ARB to develop a short-lived climate pollutant strategy by January 1, 2016.

SOURCE:

Author

SUPPORT:

Alliance of Nurses for Healthy Environment

American Academy of Pediatrics, California

American Lung Association in California

American Heart Association, California

Asthma Coalition of Los Angeles County

Bay Area Regional Health Inequities Initiative

Baz Allergy, Asthma and Sinus Center

Bonnie J. Adario Lung Cancer Foundation

Breathe California

California Black Health Network, Inc.

California Conference of Directors of Environmental Health

California Nurses Association

California Public Health Association-North

California Thoracic Society

California Walks

CALPIRG

Center for Climate Change and Health

Central California Asthma Collaborative

Climate 911

Coalition for Clean Air

Common Sense Kids Action

Dignity Health

Environmental Defense Fund

Health Care Without Harm

Long Beach Alliance for Children with Asthma

Maternal and Child Health Access, Los Angeles

Network for Ethnic Physician Organizations

Physician Engineers and Scientists Healthy Energy

Physicians for Social Responsibility, Los Angeles Chapter

Physicians for Social Responsibility, San Francisco Bay Area Chapter

Public Health Institute

St. John’s Well Child and Family Centers, Los Angeles

Voices for Progress

Eighteen individuals

OPPOSITION:

Agricultural Council of California

Association of California Egg Farmers

California Business Properties Association

California Cattlemen’s Association

California Chamber of Commerce

California Citrus Mutual

California Cotton Ginners and Growers Association

California Council for Environmental and Economic Balance

California Dairies, Inc.

California Farm Bureau Federation

California Fresh Fruit Association

California Grain & Feed Association

California Manufacturers &Technology Association

California Poultry Federation

Milk Producers Council

Nisei Farmers League

Pacific Coast Rendering Association

Waste Management

Western Agricultural Processors Association

Western Growers Association

Western Plant Health Association

Western States Petroleum Association

Western United Dairymen

ARGUMENTS IN SUPPORT:

Supporters state that this bill is the logical

follow-up to SB 605, which put a much-needed priority on SLCPs, which have a

much higher global warming potential than carbon dioxide. Supporters also state

that the bill is a vital public health measure that will protect residents across the

state, and especially in the most disadvantaged communities, from health-

damaging air pollution, and bring additional health benefits while reducing the

health impacts of climate change.

ARGUMENTS IN OPPOSITION:

Opponents state that SB 1383 will lead to

duplicative regulations and increased costs for operations within the state, while

sacrificing legislative oversight, and will result in economic and emissions leakage.

They also note that direct regulations of methane from dairies will eliminate the

potential for offsets under the cap-and-trade program. Agricultural sector

opponents state that the reduction mandates in the bill are unrealistic, and that

incentives and voluntary reductions can get California to SLCP goals much more

quickly than direct regulation. They also note that a vote for SB 1383 is essentially

supporting ARB’s SLCP strategy, which they state has numerous problems.

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