California and Climate Change: AB 32 and Beyond. Adrienne Alvord, Environmental Policy Director Office of Senator Fran Pavley 6 May 2009

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1 California and Climate Change: AB 32 and Beyond Adrienne Alvord, Environmental Policy Director Office of Senator Fran Pavley 6 May

2 2002 Climate Change Impacts on California Health Air Quality - Respiratory Illness Weather-related Mortality Infectious and Tropical Diseases Climate Changes Temperature Increase Precipitation Patterns and Extremes Sea Level Rise Source: Anne Grambsch, 1998 Agriculture Crop Yields Irrigation Demands Forests Forest Composition Geographic Range of Forests Forest Health and Productivity Water Resources Water Supply Water Quality Competition for Water Coastal Areas Erosion of Beaches Inundation of Coastal Wetlands Additional Costs to Protect Coastal Communities Species and Natural Areas Loss of Habitat and Species

3 What is California Doing? AB 1493 California s Clean Air Law AB 32 California Global Warming Solutions Act of 2006 Renewable Portfolio Standards 20% (33%?) Million Solar Roofs AB 1007 Alternative Fuels Local Government Actions Energy Efficient Appliances Green Building Designs SB 1368 GHG Performance Standard Low Carbon Fuel Standard SB 375 Regional Transportation Planning 3

4 Assembly Bill 1493 July 22, 2002 Governor Gray Davis signed Assembly Bill 1493, a law that directed the California Air Resources Board (CARB) to adopt regulations to achieve the maximum feasible and cost effective reduction of greenhouse gases (GHG) from motor vehicles beginning with model year 2009

5 AB 1493 The Regulations Requires carmakers to reduce GHG from their vehicle fleets by approximately 30% by 2016 Developed two standards -- Cars and lightest trucks Heavier vehicles Created near-term ( ) and mid-term standards ( ) CARB approximates cost for new cars to increase by $300

6 AB 1493 Implementation Under the Clean Air Act, other states can adopt California standards or Federal standards. The following states have adopted or will adopt California s Clean Car regulations. Connecticut Maine Massachusetts New Jersey New York Oregon Pennsylvania Rhode Island Vermont Washington Maryland New Mexico Governors of Arizona, Florida and other states have signed executive orders stating their intent to adopt these standards

7 AB 32 Main Provisions Mandates reporting of emissions from significant sources by January 1, Requires the California Air Resources Board (CARB) to cap GHG emissions at 1990 levels. Emission reductions to begin in 2012 and be achieved by

8 AB 32 Timeline to Implementation June 30, 2007: Early Action Emission Reduction Measures July 1, 2007: Environmental Justice and Economic/Tech advisory boards convene Jan. 1, 2008: Determination of 1990 baseline levels and report on biggest emitters Jan. 1, 2009: Approval of plan for maximum reduction by 2020 (update every 5 years) Jan. 1, 2010: Adopt regulations for early action measures Jan. 1, 2011: Adopt regulations on emission limits and reduction measure which must be real, permanent, quantifiable, verifiable, and enforceable, in addition to cap, in same period Jan. 1, 2012: Emission limits begin Jan. 2, 2020: Emission reductions achieved and stay in force beyond

9 Draft Scoping Plan GHG Emissions (469 MMTCO2E) Recycling/Waste, 1% Res & Com, 9% Agriculture, 6% High GWP, 3% Transportation, 38% Industrial, 19% Electricity (Imports), 12% Electricity (In State), 11% 9

10 Under Evaluation Potential Revenues California Carbon Trust Use of revenues for the public good Other potential uses: Support AB 32 reduction goal Achieve environmental co-benefits Local government incentives & consumer rebates Climate change adaptation Community benefits Consumer rebates RD&D funding Worker transition assistance 10

11 SB 375: Steinberg Coordinating transportation and housing to reduce GHG Goal: Reducing Vehicle Miles Traveled (VMT) by aligning regional transportation planning (RTP) process with the distribution of affordable housing numbers (RHNA) Time Line 9/30/09: Regional Targets Advisory Committee report due 6/30/10: CARB will recommend draft targets for each region 10/1/10: Regions to start using targets in their regional transportation plan Allows COGs to propose a Sustainable Communities Strategy, a blueprint for the region 11

12 Low Carbon Fuel Standard Goal: 10% reduction in carbon emissions in transport fuels by 2020 Encourages use of alternative fuels that reduce GHG emissions not just from the tailpipe but throughout the entire energy cycle of production, distribution and use 12

13 What s Driving Green-tech Investment? Rising cost of fuel. Economic expansion of China, India and other Asian nations. Growing concerns on global warming. War in the Middle East and too much reliance on foreign oil. Desire for a secure energy future. AB 32 sends a strong signal to the market for clean technologies by adopting an enforceable cap. 13

14 Dec 2007: EPA Denies California Waiver Jan 2009: A New Day E.P.A. Administrator Johnson states that California has not met required criteria of compelling and extraordinary conditions since the impacts are not unique to California Obama order to USEPA to revisit waiver request-at last, federal leadership on climate 14

15 The Costs of Inaction More powerful hurricanes Sea-level rise Reduced snow pack More droughts More floods More More wildfires More More heat waves Agricultural shifts The The spread of disease Depend Depend on foreign oil 15