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. Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the state board.

Existing law, until 2008, established the former California Climate Action Registry to carry out specified actions, including, among others, helping various entities in the state to establish emissions baselines, encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions, and recognize, publicize, and promote participants in the registry.

This bill would require the agency to oversee the development of a registry for greenhouse gas emissions resulting from the water-energy nexus using the best available data. The bill would authorize the agency to enter into a contract with a qualified nonprofit organization to develop and administer the registry, which would include, among other things, the above-stated actions of the former California Climate Action Registry as those relate to the water-energy nexus.

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. Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the state board.

Existing law, until 2008, established the former California Climate Action Registry to carry out specified actions, including, among others, helping various entities in the state to establish emissions baselines, encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions, and recognize, publicize, and promote participants in the registry.

This bill would require the agency to oversee the development of a registry for greenhouse gas emissions resulting from the water-energy nexus using the best available data. The bill would authorize the agency to enter into a contract with a qualified nonprofit organization to develop and administer the registry, which would include, among other things, the above-stated actions of the former California Climate Action Registry as those relate to the water-energy nexus.

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. Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the state board.

Existing law, until 2008, established the former California Climate Action Registry to carry out specified actions, including, among others, helping various entities in the state to establish emissions baselines, encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions, and recognize, publicize, and promote participants in the registry.

This bill would require the agency to oversee the development of a registry for greenhouse gas emissions resulting from the water-energy nexus using the best available data. The bill would authorize the agency to enter into a contract with a qualified nonprofit organization to develop and administer the registry, which would include, among other things, the above-stated actions of the former California Climate Action Registry as those relate to the water-energy nexus.

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. Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the state board.

Existing law, until 2008, established the former California Climate Action Registry to carry out specified actions, including, among others, helping various entities in the state to establish emissions baselines, encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions, and recognize, publicize, and promote participants in the registry.

This bill would require the agency to oversee the development of a registry for greenhouse gas emissions resulting from the water-energy nexus using the best available data. The bill would require authorize the agency to enter into a contract with the Climate Registry a qualified nonprofit organization to develop and administer the registry, which would include, among other things, the above-stated actions of the former California Climate Action Registry as those relate to the water-energy nexus.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulations regulating sources of emissions of greenhouse gases. Existing law creates the California Environmental Protection Agency, consisting of various boards, offices, and departments, including the state board.

Existing law, until 2008, established the former California Climate Action Registry to carry out specified actions, including, among others, helping various entities in the state to establish emissions baselines, encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions, and recognize, publicize, and promote participants in the registry.

This bill would require the state board, in consultation with relevant state agencies and a specified nonprofit organization, agency to develop oversee the development of a registry of for greenhouse gas emissions resulting from the water-energy nexus using the best available data, as specified, including data. The bill would require the agency to enter into a contract with the Climate Registry to develop and administer the registry, which would include, among other things, the above-stated actions of the former California Climate Action Registry as those relate to the water-energy nexus.

Existing law establishes the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007, which includes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission. Existing law requires the emphasis of the Alternative and Renewable Fuel and Vehicle Technology Program to be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology.

This bill would make a technical, nonsubstantive change to that provision.

 UNFINISHED BUSINESS  

Bill No: SB 1425

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 4/6/16

AYES: Wieckowski, Bates, Hill, Leno, Pavley

NO VOTE RECORDED: Gaines, Jackson

SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/27/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza

NOES: Nielsen

SENATE FLOOR: 26-11, 5/31/16

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

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

NO VOTE RECORDED: Cannella, Galgiani, Runner

ASSEMBLY FLOOR: 53-22, 8/24/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the California Environmental Protection Agency (CalEPA) to develop and administer a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus using the best available data.

Assembly Amendments remove intent language, require CalEPA instead of the California Air Resources Board (ARB), to oversee development of the registry, authorizes CalEPA to enter into a contract with a qualified nonprofit organization to develop the registry, and provide that entities participating in the registry may qualify for GHG emission reduction financing opportunities.

ANALYSIS:

Existing law:

1. Enacts the California Global Warming Solutions Act of 2006 (Health and Safety Code §38500 et seq.), which:
   1. Requires ARB to determine the 1990 GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020.
   2. Requires ARB to adopt, before January 1, 2008, regulations to require the reporting and verification of statewide greenhouse gas emissions and requires those regulations, where appropriate and to the maximum extent feasible, incorporate the standards and protocols developed by the California Climate Action Registry.
   3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a greenhouse gas emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.
2. Requires moneys from the Greenhouse Gas Reduction Fund (GGRF) be used to facilitate the achievement of reductions of GHG emissions in this state consistent with the California Global Warming Solutions Act of 2006 , and authorizes the use of GGRF monies for, among other things, funding to reduce GHG emissions associated with water use and supply. (HSC §39712)
   

This bill:

1. Requires CalEPA to oversee the development of a registry for GHG emissions that result from the water-energy nexus using the best-available data.
2. States that participation in the registry is voluntary and open to any entity conducting business in the state.
3. Authorizes a participating entity to register its emissions, including emissions generated outside the state, or an entity-wide basis and to use the services of the Registry.
4. Provides that CalEPA may enter into a contract with a qualified nonprofit to develop, in consultation with CalEPA and other state agencies, the registry through a public stakeholder process and do all of the following:
   1. Help participating entities establish emissions baselines;
   2. Encourage voluntary actions to increase water and energy efficiency measures to reduce the carbon intensity of the state's water system;
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions in a consistent format that is supported by third-party verification;
   4. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions;
   5. Recruit broad participation in the registry from all economic sectors and regions in the state; and,
   6. Facilitate streamlined data reporting for relevant entities already reporting to the Climate Registry.
5. Provides that the contract with a qualified nonprofit organization is limited to three years with the option for a one-year extension.
6. Provides that entities participating in the registry may qualify for GHG emission reduction incentives.

Background

1. The Climate Registry. SB 1771 (Sher, Chapter 1018, Statutes of 2000) required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary greenhouse gas emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions, adopting a list of approved auditors that would verify emissions reductions, establishing emissions reduction goals, designing and implementing efficiency improvement plans, maintaining a record of all emissions baselines and reductions, and recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board for the registry made up of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.

The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from U.S. states and Canadian provinces and territories. The Climate Registry offers tools and services for organizations to measure, verify and report the carbon in their operations.

1. Water, energy use, and GHGs. According to the California Energy Resources Conservation and Development Commission (CEC), water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas (natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. The CEC also found that the most energy-intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water), and 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. Additionally, expected increases in groundwater pumping, water treatment, and water recycling, due to drought conditions in the state, mean the energy intensity of water will likely increase.

State law requires electric utilities to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists titled, Clean Energy Opportunities in California’s Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

Because of this data gap, the report states that it is difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector’s electricity choices impact global warming emissions and the state’s efforts to decarbonize the electricity sector.

Comments

1. Purpose of Bill. According to the author, “Energy and water are intricately connected, and there is an enormous amount of energy embedded in our water supply - from the collection, production, transport, treatment and delivery of water; to the direct consumption of water; to the collection, treatment, and disposal or reuse of wastewater. Nearly 20 percent of California’s energy supply is used to move, heat, and treat water.

“While some of the water-energy related climate pollution is already covered in the state’s cap-and-trade program (via the electricity generation sector), the state does not currently have a clear accounting of the total greenhouse gas emissions associated with the water system. Thus, water suppliers, treaters, distributors and end users currently lack the information and opportunity to do their part in voluntarily advancing our climate and water conservation goals.

“SB 1425 establishes a voluntary emissions repository for projects that reduce the carbon intensity of California’s water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their greenhouse gas emissions resulting from the water-energy nexus.”

1. Based on the California Climate Action Registry. The California Climate Action Registry established by SB 1771 (Sher) was required to, among other things: a) help various entities in the state to establish emissions baselines; b) encourage voluntary actions to increase energy efficiency and reduce GHG emissions; c) enable participating entities to record voluntary GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification; d) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to greenhouse gas emissions; e) recognize, publicize, and promote registrants making voluntary reductions; and f) recruit broad participation in the process from all economic sectors and regions of the state.

SB 1425 contains similar requirements for the development and administration of the water-energy nexus registry as were required by SB 1771 (Sher), which originally established the California Climate Action Registry.

Related/Prior Legislation

SB 471 (Pavley, 2015) would have required ARB, in cooperation with other state agencies, to develop a GHG emissions inventory from the water system in the state. SB 471 was later amended to establish a grant and loan program for water projects that result in the net reduction of GHG emissions. SB 471 was held on the Assembly Appropriations suspense file.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee, this bill has annual ongoing costs of approximately $130,000 for CalEPA to oversee the development of the registry (General Fund or special fund). CalEPA estimates annual contracting costs of $250,000 for three years or more (General Fund or special fund).

SUPPORT: (Verified 8/24/16)

California League of Conservation Voters

Clean Water Action

Environment California

Environmental Entrepreneurs (E2)

Lutheran Office of Public Policy, California

Mono Lake Committee

Sonoma County Water Agency

The Climate Registry

Tree People

Union of Concerned Scientists

US Green Building Council, California Chapter

Wholly H2O

OPPOSITION: (Verified 8/24/16)

None received

ASSEMBLY FLOOR: 53-22, 8/24/16

AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dodd, Eggman, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Wilk, Williams, Wood, Rendon

NOES: Achadjian, Travis Allen, Bigelow, Brough, Chang, Chávez, Beth Gaines, Gallagher, Grove, Harper, Jones, Lackey, Linder, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron

NO VOTE RECORDED: Dahle, Daly, Frazier, Gray, Kim

Prepared by:

8/25/16 17:37:23

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1425

Author:(Pavley)

As Amended Ver:August 19, 2016

Majority vote

SENATE VOTE: 26-11

SUMMARY: Requires the California Environmental Protection Agency (CalEPA) to develop a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus. Specifically, this bill:

1. Requires CalEPA, in consultation with other relevant state agencies and through a public stakeholder process, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
2. States that participation in the registry is voluntary and open to any entity conducting business in the state. Authorizes a participating entity to register its emissions, including emissions generated outside the state, or an entity-wide basis and to use the services of the Registry.
3. Authorizes CalEPA to enter into a contract with a qualified nonprofit organization to develop and implement the registry. Limits the duration of the contract to three years, with the option for a one year extension.
4. Requires CalEPA or the nonprofit organization to:
   1. Help participating entities establish emissions baselines;
   2. Encourage voluntary actions to increase water and energy efficiency measures to reduce the carbon intensity of the state's water system;
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions in a consistent format that is supported by third-party verification;
   4. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions;
   5. Recruit broad participation in the registry from all economic sectors and regions in the state; and,
   6. Facilitate streamlined data reporting for relevant entities already reporting to the Climate Registry.

EXISTING LAW, under the California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488):

1. Requires ARB to determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020.
2. Requires the Air Resources Board (ARB) to adopt regulations to require the reporting and verification of statewide GHG emissions and requires those regulations, where appropriate and to the maximum extent feasible, to incorporate the standards and protocols developed by the California Climate Action Registry.
3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a GHG emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has annual ongoing costs of approximately $130,000 for CalEPA to oversee the development of the registry (General Fund or special fund). CalEPA estimates annual contracting costs of $250,000 for three years or more (General Fund or special fund).

COMMENTS: SB 1771 (Sher), Chapter 1018, Statutes of 2000, required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary GHG emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions; adopting a list of approved auditors that would verify emissions reductions; establishing emissions reduction goals; designing and implementing efficiency improvement plans; maintaining a record of all emissions baselines and reductions; and, recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board comprised of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.

The California Climate Action Registry was required to, among other things: 1) help various entities in the state to establish emissions baselines; 2) encourage voluntary actions to increase energy efficiency and reduce GHG emissions; 3) enable participating entities to record voluntary GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification; 4) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to GHG emissions; 5) recognize, publicize, and promote registrants making voluntary reductions; and, 6) recruit broad participation in the process from all economic sectors and regions of the state.

The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from United States (U.S.) states and Canadian provinces and territories. It offers tools and services for organizations to measure, verify, and report the carbon in their operations. This bill is modeled after the California Climate Action Registry.

According to the California Energy Commission (CEC), water-related energy use in California consumes approximately 20% of the state's electricity and 30% of the state's non-power plant natural gas (i.e., natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. CEC also found that the most energy intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water) and that 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. The state's ongoing drought is expected to cause increases in groundwater pumping, water treatment, and water recycling, which could further increase energy use associated with water.

Electric utilities are required to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists, Clean Energy Opportunities in California's Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

The report states that the data gap makes it difficult to get a clear picture of the amount and type of electricity California's water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector's electricity choices impact GHG emissions and the state's efforts to decarbonize the electricity sector.

According to the author, this bill establishes a voluntary emissions repository for projects that reduce the carbon intensity of California's water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their GHG emissions resulting from the water-energy nexus.

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004600

SENATE THIRD READING

STR Bill Id:SB 1425

Author:(Pavley)

As Amended Ver:August 17, 2016

Majority vote

SENATE VOTE: 26-11

SUMMARY: Requires the California Environmental Protection Agency (CalEPA) to develop a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus.

EXISTING LAW, under the California Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488):

1. Requires the Air Resources Board (ARB) to determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020.
2. Requires the ARB to adopt regulations to require the reporting and verification of statewide GHG emissions and requires those regulations, where appropriate and to the maximum extent feasible, to incorporate the standards and protocols developed by the California Climate Action Registry.
3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a GHG emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.

THIS BILL:

1. Requires CalEPA, in consultation with other relevant state agencies and through a public stakeholder process, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
2. States that participation in the registry is voluntary and open to any entity conducting business in the state. Authorizes a participating entity to register its emissions, including emissions generated outside the state, or an entity-wide basis and to use the services of the Registry.
3. Authorizes CalEPA to enter into a contract with a qualified nonprofit organization to develop and implement the registry.
4. Requires CalEPA or the nonprofit organization to:
   1. Help participating entities establish emissions baselines;
   2. Encourage voluntary actions to increase water and energy efficiency measures to reduce the carbon intensity of the state's water system;
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions in a consistent format that is supported by third-party verification;
   4. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions;
   5. Recruit broad participation in the registry from all economic sectors and regions in the state; and,
   6. Facilitate streamlined data reporting for relevant entities already reporting to the Climate Registry.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has annual ongoing costs of approximately $130,000 for CalEPA to oversee the development of the registry (General Fund or special fund). CalEPA estimates annual contracting costs of $250,000 for three years or more (General Fund or special fund).

COMMENTS: SB 1771 (Sher), Chapter 1018, Statutes of 2000, required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary GHG emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions; adopting a list of approved auditors that would verify emissions reductions; establishing emissions reduction goals; designing and implementing efficiency improvement plans; maintaining a record of all emissions baselines and reductions; and, recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board comprised of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.

The California Climate Action Registry was required to, among other things: 1) help various entities in the state to establish emissions baselines; 2) encourage voluntary actions to increase energy efficiency and reduce GHG emissions; 3) enable participating entities to record voluntary GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification; 4) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to GHG emissions; 5) recognize, publicize, and promote registrants making voluntary reductions; and, 6) recruit broad participation in the process from all economic sectors and regions of the state.

The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from United States (U.S.) states and Canadian provinces and territories. It offers tools and services for organizations to measure, verify, and report the carbon in their operations. This bill is modeled after the California Climate Action Registry.

According to the California Energy Commission (CEC), water-related energy use in California consumes approximately 20% of the state's electricity and 30% of the state's non-power plant natural gas (i.e., natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. CEC also found that the most energy intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water) and that 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. The state's ongoing drought is expected to cause increases in groundwater pumping, water treatment, and water recycling, which could further increase energy use associated with water.

Electric utilities are required to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists, Clean Energy Opportunities in California's Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

The report states that the data gap makes it difficult to get a clear picture of the amount and type of electricity California's water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector's electricity choices impact GHG emissions and the state's efforts to decarbonize the electricity sector.

According to the author, this bill establishes a voluntary emissions repository for projects that reduce the carbon intensity of California's water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their GHG emissions resulting from the water-energy nexus.

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004310

Date of Hearing: August 3, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1425

Author:(Pavley) – As Amended Ver:August 1, 2016

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

SUMMARY:

This bill requires CalEPA to enter into contract with The Climate Registry, to develop a voluntary registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus using the best available data. This bill allows entities participating in the registry to qualify for financial incentives consistent with the AB 32 investment plan.

FISCAL EFFECT:

1. Increased ongoing annual costs of approximately $130,000 (1PY) for CalEPA to oversee the development of the voluntary registry (GF or special fund.)

This bill requires CalEPA to execute a sole source contract with The Climate Registry. Without the ability to competitively bid a contract for registry services, there may be little control over the overall cost impact. As written, a water-energy registry would be voluntary, thus CalEPA staff would likely work closely with The Climate Registry to engage water-energy stakeholders, train them, and regularly update them on program opportunities and improvement. 

1. CalEPA estimates annual contracting costs of $250,000 for three years or more (GF or special fund).
2. The Climate Registry estimates the following costs (GF or special fund):
3. One-time cost totaling between $600,000 and $700,000 over two years to convene a multi-stakeholder protocol process to develop a protocol for the water-energy nexus quantification and build an SAS tool based on the protocol.
4. Ongoing annual cost of between $250,000 and $300,000 for software support and maintenance, protocol maintenance and new software modules to incorporate updated protocols.
5. Additional miscellaneous annual costs depending upon the number of services and participants ranging between $50,000 and $250,000.

The Climate Registry would likely charge a service or membership fee to water agencies. It is important to note the AB 32 Cost of Implementation Account may be proposed for the purposes of this bill, however it is a fund derived from fees on covered entities and may not be appropriate for this purpose.

COMMENTS:

1. Purpose. According to the author, this bill establishes a voluntary emissions repository for projects that reduce the carbon intensity of California’s water system. This new registry will allow entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their GHG emissions resulting from the water-energy nexus.
2. Water-Energy Nexus. According to the California Energy Commission (CEC), water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas. The water sector uses electricity to pump, treat, transport, deliver, and heat water.

Electric utilities are required to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that do not also provide retail electricity. An April 2015 report from the Union of Concerned Scientists titled, Clean Energy Opportunities in California’s Water Sector, found that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

Because of this data gap, the report states that: 1) it is difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on; and 2) this information gap makes it difficult to understand how the water sector’s electricity choices impact global warming emissions and the state’s efforts to decarbonize the electricity sector.

1. The Climate Registry and its Predecessor. SB 1771 (Sher, Chapter 1018, Statutes of 2006) required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary GHG emission reductions made by California entities after 1990. Following the enactment of the Global Warming Solutions Act of 2006 (AB 32, Chapter 488, Statutes of 2006) and the mandatory GHG registration requirements, The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency. It is a nonprofit organization, whose board of directors comprises over 50 representatives from U.S. states and Canadian provinces and territories. The Climate Registry offers tools and services for organizations to measure, verify and report the carbon in their operations. According to the author, the registry is already doing much of the work outlined in the bill.
2. Suggested Clarification. This bill allows registrants to qualify for incentives to reduce GHG emissions consistent with the AB 32 investment plan. The author may wish to consider an amendment that clarifies registrants must also meet all other requirements of incentive programs and are not given funding priority by participating in the registry.

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 1425

Author:(Pavley) – As Amended Ver:March 28, 2016

SENATE VOTE: 26-11

SUBJECT: Water-energy nexus registry

SUMMARY: Requires the Air Resources Board (ARB), in consultation with relevant state agencies and The California Climate Action Registry, to develop a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus.

EXISTING LAW, under the California Global Warming Solutions Act of 2006 (AB 32):

1. Requires ARB to determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020.
2. Requires ARB to adopt regulations to require the reporting and verification of statewide GHG emissions and requires those regulations, where appropriate and to the maximum extent feasible, to incorporate the standards and protocols developed by the California Climate Action Registry.
3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a GHG emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.

THIS BILL:

1. Defines terms used in the bill, including:
   1. "Climate Registry" as the nonprofit organization that is a successor to California Climate Action Registry; and,
   2. "Registry" as the water-nexus registry established by the bill.
2. Requires ARB, in consultation with other relevant state agencies and the Climate Registry, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
3. States that participation in the Registry is voluntary and open to any entity conducting business in the state. Authorizes a participating entity to register its emissions, including emissions generated outside the state, or an entity-wide basis and to use the services of the Registry.
4. Requires ARB to additionally:
   1. Help participating entities establish emissions baselines;
   2. Encourage voluntary actions to increase water and energy efficiency measures to reduce the carbon intensity of the state's water system;
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification;
   4. Ensure that sources in the state receive appropriate consideration for entity-level verified emissions reductions under potential future regulatory regimes or qualification for financing opportunities relating to GHG emissions.
   5. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions; and,
   6. Recruit broad participation in the registry from all economic sectors and regions in the state.
5. States related findings and declarations.

FISCAL EFFECT: According to the Senate Appropriations Committee, this bill has a one-time cost of $475,000 for programming costs to develop the electronic registry platform. Ongoing costs, likely in the range of $2 to $3 million, to administer the program.

COMMENTS:

1. The Climate Registry. SB 1771 (Sher, Chapter 1018, Statutes of 2000) required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary GHG emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions; adopting a list of approved auditors that would verify emissions reductions; establishing emissions reduction goals; designing and implementing efficiency improvement plans; maintaining a record of all emissions baselines and reductions; and, recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board comprised of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.
   
   The California Climate Action Registry was required to, among other things: 1) help various entities in the state to establish emissions baselines; 2) encourage voluntary actions to increase energy efficiency and reduce GHG emissions; 3) enable participating entities to record voluntary GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification; 4) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to GHG emissions; 5) recognize, publicize, and promote registrants making voluntary reductions; and, 6) recruit broad participation in the process from all economic sectors and regions of the state.
   
   The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from U.S. states and Canadian provinces and territories. It offers tools and services for organizations to measure, verify and report the carbon in their operations.
   
   This bill is modeled after the California Climate Action Registry.
   
2. Water, energy, and emissions. According to the California Energy Commission (CEC), water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas (i.e., natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. CEC also found that the most energy intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water) and that 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. The state's ongoing drought is expected to cause increases in groundwater pumping, water treatment, and water recycling, which could further increase energy use associated with water.
   
   Electric utilities are required to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists, Clean Energy Opportunities in California’s Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.
   
   The report states that the data gap makes it difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector’s electricity choices impact GHG emissions and the state’s efforts to decarbonize the electricity sector.
   
3. Author's statement:
   

Energy and water are intricately connected, and there is an enormous amount of energy embedded in our water supply - from the collection, production, transport, treatment and delivery of water; to the direct consumption of water; to the collection, treatment, and disposal or reuse of wastewater. Nearly 20% of California’s energy supply is used to move, heat, and treat water.

While some of the water-energy related climate pollution is already covered in the state’s cap-and-trade program (via the electricity generation sector), the state does not currently have a clear accounting of the total greenhouse gas emissions associated with the water system. Thus, water suppliers, treaters, distributors and end users currently lack the information and opportunity to do their part in voluntarily advancing our climate and water conservation goals.

SB 1425 establishes a voluntary emissions repository for projects that reduce the carbon intensity of California’s water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their GHG emissions resulting from the water-energy nexus.

REGISTERED SUPPORT / OPPOSITION:

Support

California League of Conservation Voters

Clean Water Action

Environment California

Environmental Entrepreneurs

Lutheran Office of Public Policy, California

Mono Lake Committee

Sonoma County Water Agency

The Climate Registry

Tree People
Union of Concerned Scientists

US Green Building Council, California Chapter

Wholly H2O

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092

 THIRD READING  

Bill No: SB 1425

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 4/6/16

AYES: Wieckowski, Bates, Hill, Leno, Pavley

NO VOTE RECORDED: Gaines, Jackson

SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/27/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza

NOES: Nielsen

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the California Air Resources Board (ARB), in consultation with relevant state agencies and The California Climate Action Registry, to develop a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus.

ANALYSIS: Existing law, under the California Global Warming Solutions Act of 2006 (also known as AB 32) (Health and Safety Code §38500 et seq.):

1. Requires ARB to determine the 1990 GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020.
2. Requires ARB to adopt, before January 1, 2008, regulations to require the reporting and verification of statewide greenhouse gas emissions and requires those regulations, where appropriate and to the maximum extent feasible, incorporate the standards and protocols developed by the California Climate Action Registry.
3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a greenhouse gas emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.
   

This bill:

1. Includes intent language pertaining to the nexus between water, energy, and GHG emissions reductions.
2. Requires ARB, in consultation with other relevant state agencies, and the Climate Registry, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
3. Specifies that registry participation is voluntary and open to any entity conducting business in the state.
4. Authorizes a participating entity to register its emissions, including emissions generated outside of the state, on an entity-wide basis, and to utilize the services of the registry.
5. Requires ARB, in administering the registry, to do the following:
   1. Help participating entities establish emissions baselines.
   2. Encourage voluntary actions to increase water and energy efficiency measures.
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions made after 1990 in a consistent format, and that is supported by third-party verification.
      
   4. Ensure that sources receive appropriate consideration for entity-level verified emissions reductions under potential future regulatory regimes or qualification for financing opportunities related to GHG emissions.
   5. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions.
   6. Recruit participation in the registry from all economic sectors and regions of the state.

Background

1. The Climate Registry. SB 1771 (Sher, Chapter 1018, Statutes of 2000) required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary greenhouse gas emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions, adopting a list of approved auditors that would verify emissions reductions, establishing emissions reduction goals, designing and implementing efficiency improvement plans, maintaining a record of all emissions baselines and reductions, and recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board for the registry made up of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.

The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from U.S. states and Canadian provinces and territories. The Climate Registry offers tools and services for organizations to measure, verify and report the carbon in their operations.

1. Water, energy use, and GHGs. According to the California Energy Resources Conservation and Development Commission (CEC), water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas (natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. The CEC also found that the most energy-intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water), and 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. Additionally, expected increases in groundwater pumping, water treatment, and water recycling, due to drought conditions in the state, mean the energy intensity of water will likely increase.

State law requires electric utilities to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists titled, Clean Energy Opportunities in California’s Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

Because of this data gap, the report states that it is difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector’s electricity choices impact global warming emissions and the state’s efforts to decarbonize the electricity sector.

Comments

1. Purpose of Bill. According to the author, “Energy and water are intricately connected, and there is an enormous amount of energy embedded in our water supply - from the collection, production, transport, treatment and delivery of water; to the direct consumption of water; to the collection, treatment, and disposal or reuse of wastewater. Nearly 20 percent of California’s energy supply is used to move, heat, and treat water.

“While some of the water-energy related climate pollution is already covered in the state’s cap-and-trade program (via the electricity generation sector), the state does not currently have a clear accounting of the total greenhouse gas emissions associated with the water system. Thus, water suppliers, treaters, distributors and end users currently lack the information and opportunity to do their part in voluntarily advancing our climate and water conservation goals.

“SB 1425 establishes a voluntary emissions repository for projects that reduce the carbon intensity of California’s water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their greenhouse gas emissions resulting from the water-energy nexus.”

1. Based on the California Climate Action Registry. The California Climate Action Registry established by SB 1771 (Sher) was required to, among other things: a) help various entities in the state to establish emissions baselines; b) encourage voluntary actions to increase energy efficiency and reduce GHG emissions; c) enable participating entities to record voluntary GHG emissions reductions made after 1990 in a consistent format that is supported by third-party verification; d) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to greenhouse gas emissions; e) recognize, publicize, and promote registrants making voluntary reductions; and f) recruit broad participation in the process from all economic sectors and regions of the state.

SB 1425 requires ARB to essentially perform those same six functions in administering the water-energy nexus registry.

Related/Prior Legislation

SB 471 (Pavley, 2015) would have required ARB, in cooperation with other state agencies, to develop a GHG emissions inventory from the water system in the state. SB 471 was later amended to establish a grant and loan program for water projects that result in the net reduction of GHG emissions. SB 471 was held on the Assembly Appropriations suspense file.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time cost of $475,000 (Cost of Implementation Fee) for programming costs to develop the electronic registry platform.
• Ongoing costs, likely in the range of $2 to $3 million (Cost of Implementation Fee), to administer the program.

SUPPORT: (Verified 5/27/16)

California League of Conservation Voters

Clean Water Action

Environment California

Environmental Entrepreneurs

Lutheran Office of Public Policy, California

Mono Lake Committee

Sonoma County Water Agency

The Climate Registry

Tree People

Union of Concerned Scientists

U.S. Green Building Council, California Chapter

Wholly H20

OPPOSITION: (Verified 5/27/16)

None received

Prepared by:

5/28/16 16:46:14

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 1425 (Pavley) - Water-energy nexus registry

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

Bill Summary:

SB 1425 requires the California Air Resources Board (ARB), in consultation with relevant state agencies and The California Climate Action Registry (registry), to develop a registry of greenhouse gas (GHG) emissions resulting from the water-energy nexus.

Fiscal Impact:

• One-time cost of $475,000 (Cost of Implementation Fee) for programming costs to develop the electronic registry platform.
• Ongoing costs, likely in the range of $2 to $3 million (Cost of Implementation Fee), to administer the program.

Background:

1. According to the CEC, water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas (natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water.

State law requires electric utilities to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists titled, Clean Energy Opportunities in California’s Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

Because of this data gap, the report states that it is difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector’s electricity choices impact global warming emissions and the state’s efforts to decarbonize the electricity sector.

Proposed Law:

This bill:

1. Includes intent language pertaining to the nexus between water, energy, and GHG emissions reductions.
2. Requires ARB, in consultation with other relevant state agencies, and The Climate Registry, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
3. Specifies that registry participation is voluntary and open to any entity conducting business in the state.
4. Authorizes a participating entity to register its emissions, including emissions generated outside of the state, on an entity-wide basis, and to utilize the services of the registry.
5. Requires ARB, in administering the registry, to do the following:
   1. Help participating entities establish emissions baselines.
   2. Encourage voluntary actions to increase water and energy efficiency measures.
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions made after 1990 in a consistent format, and that is supported by third-party verification.
   4. Ensure that sources receive appropriate consideration for entity-level verified emissions reductions under potential future regulatory regimes or qualification for financing opportunities related to GHG emissions.
   5. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions.
   6. Recruit participation in the registry from all economic sectors and regions of the state.

Related Legislation:

SB 471 (Pavley, 2015) would have required ARB, in cooperation with other state agencies, to develop a GHG emissions inventory from the water system in the state. SB 471 was later amended to establish a grant and loan program for water projects that result in the net reduction of GHG emissions. SB 471 was held on the Assembly Appropriations suspense file.

Staff Comments:

1. The registry is a nonprofit organization that offers tools and services for organizations to measure, verify, and report the carbon in their operations. The author’s office indicates that the registry is already doing much of the work outlined in the bill, which could offset a substantial amount of the reported costs for this bill.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 1425

SUBJECT: Water-energy nexus registry

ANALYSIS:

1. Existing law under the California Global Warming Solutions Act of 2006 (also known as AB 32) (Health and Safety Code §38500 et seq.):
   1. Requires the California Air Resources 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.
   2. Requires ARB to adopt, before January 1, 2008, regulations to require the reporting and verification of statewide greenhouse gas emissions and requires those regulations, where appropriate and to the maximum extent feasible, incorporate the standards and protocols developed by the California Climate Action Registry.
   3. Specifies that entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a greenhouse gas emissions reporting program, are not required to significantly alter their reporting or verification program, except as necessary to ensure complete and accurate reporting.
      

This bill:

1. Includes intent language pertaining to the nexus between water, energy, and GHG emissions reductions.
2. Requires ARB, in consultation with other relevant state agencies, and the Climate Registry, to develop and administer a registry of GHG emissions resulting from the water-energy nexus using the best available data.
3. Specifies that registry participation is voluntary and open to any entity conducting business in the state.
4. Authorizes a participating entity to register its emissions, including emissions generated outside of the state, on an entity-wide basis, and to utilize the services of the registry.
5. Requires ARB, in administering the registry, to do the following:
   1. Help participating entities establish emissions baselines.
   2. Encourage voluntary actions to increase water and energy efficiency measures.
   3. Enable participating entities to record voluntary entity-wide GHG emissions reductions made after 1990 in a consistent format, and that is supported by third-party verification.
      
   4. Ensure that sources receive appropriate consideration for entity-level verified emissions reductions under potential future regulatory regimes or qualification for financing opportunities related to GHG emissions.
   5. Recognize, publicize, and promote participating entities making voluntary reductions of GHG emissions.
   6. Recruit participation in the registry from all economic sectors and regions of the state.

Background

1. The Climate Registry. SB 1771 (Sher, Chapter 1018, Statutes of 2000) required the Secretary of the Resources Agency to establish the California Climate Action Registry as a public benefit nonprofit corporation that would record and register voluntary greenhouse gas emission reductions made by California entities after 1990. The bill required the registry to perform various functions, including adopting standards for verifying emissions reductions, adopting a list of approved auditors that would verify emissions reductions, establishing emissions reduction goals, designing and implementing efficiency improvement plans, maintaining a record of all emissions baselines and reductions, and recognizing, publicizing, and promoting entities that participate in the registry. SB 1771 established a governing board for the registry made up of the Secretary of the Resources Agency, the Secretary of Environmental Protection, and five public members appointed by the Governor.

The California Climate Action Registry closed in December 2010. The Climate Registry formed as the successor agency to the California Climate Action Registry. The Climate Registry is a nonprofit organization, whose board of directors comprises over 50 representatives from U.S. states and Canadian provinces and territories. The Climate Registry offers tools and services for organizations to measure, verify and report the carbon in their operations.

1. Water, energy use, and GHGs. According to the CEC, water-related energy use in California consumes approximately 20% of the state’s electricity and 30% of the state’s non-power plant natural gas (natural gas not used to produce electricity). The water sector uses electricity to pump, treat, transport, deliver, and heat water. The CEC also found that the most energy-intensive uses of water in California are associated with end uses by the customer (e.g., heating, processing, and pressurizing water), and 75% of the electricity and nearly all of the natural gas use related to water in California is associated with water heating. Additionally, expected increases in groundwater pumping, water treatment, and water recycling, due to drought conditions in the state, mean the energy intensity of water will likely increase.

State law requires electric utilities to disclose the sources of the electricity they sell. However, this requirement does not extend to water utilities that are not retail electricity providers. An April 2015 report from the Union of Concerned Scientists titled, Clean Energy Opportunities in California’s Water Sector, reports that although some water and wastewater utilities independently report the sources of their electricity, the information is not compiled in a standardized format or updated on a regular schedule across the water sector.

Because of this data gap, the report states that it is difficult to get a clear picture of the amount and type of electricity California’s water and wastewater utilities rely on and that this information gap makes it difficult to understand how the water sector’s electricity choices impact global warming emissions and the state’s efforts to decarbonize the electricity sector.

Comments

1. Purpose of Bill. According to the author, “Energy and water are intricately connected, and there is an enormous amount of energy embedded in our water supply - from the collection, production, transport, treatment and delivery of water; to the direct consumption of water; to the collection, treatment, and disposal or reuse of wastewater. Nearly 20 percent of California’s energy supply is used to move, heat, and treat water.

“While some of the water-energy related climate pollution is already covered in the state’s cap-and-trade program (via the electricity generation sector), the state does not currently have a clear accounting of the total greenhouse gas emissions associated with the water system. Thus, water suppliers, treaters, distributors and end users currently lack the information and opportunity to do their part in voluntarily advancing our climate and water conservation goals.

“SB 1425 establishes a voluntary emissions repository for projects that reduce the carbon intensity of California’s water system. This new registry will allow for entities such as water agencies, large water consumers, businesses and others to voluntarily track, measure, and baseline their greenhouse gas emissions resulting from the water-energy nexus.”

1. Based on the California Climate Action Registry. The California Climate Action Registry established by SB 1771 (Sher) was required to, among other things: 1) help various entities in the state to establish emissions baselines; 2) encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions; 3) enable participating entities to record voluntary greenhouse gas emissions reductions made after 1990 in a consistent format that is supported by third-party verification; 4) ensure that sources in the state receive appropriate consideration for verified emissions reductions under any future federal regulatory regime relating to greenhouse gas emissions; 5) recognize, publicize, and promote registrants making voluntary reductions; and 6) recruit broad participation in the process from all economic sectors and regions of the state.

SB 1425 requires ARB to essentially perform those same six functions in administering the water-energy nexus registry.

Related/Prior Legislation

SB 471 (Pavley, 2015) would have required ARB, in cooperation with other state agencies, to develop a GHG emissions inventory from the water system in the state. SB 471 was later amended to establish a grant and loan program for water projects that result in the net reduction of GHG emissions. SB 471 was held on the Assembly Appropriations suspense file.

SOURCE:

Author

SUPPORT:

None received

OPPOSITION:

None received

-- END --