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AB 32 CALIFORN IA CLIMATE ACT OF 2006ASSEMBLY MEMBER FRAN PAVLEYPRIN CIPAL CO-AUTH OR: N ATIO NCO-AUTH ORS: ASSEMBLY ME MBERS; BERG, CHAN, H AN COCK, KORET Z, LAIRD, LE NO,SALDAA; SENATOR SIMITIAN

IN BRIEF

Global warming from human sources ispredicted to have a potentiallydevastating impact on Californiaseconomy, environment, and publichealth if aggressive action is not takenin the near future to reduce greenhousegas (GHG) emissions, primarily carbondioxide. Previous legislation, AB 1493

(Pavley, Chapter 400, Statutes of 2002),mandates the reduction of greenhousegases from cars and light-duty trucks.The main stationary sources ofgreenhouse gases in California comefrom the utility, oil and gas, and wastesectors as well as from othercommercial sources.

AB 32 directs the CaliforniaEnvironmental Protection Agency toimplement regulations for a cap onstationary sources of GHG emissions.The bill requires that CAL/EPA developregulations to reduce emissions with anenforcement mechanism to ensure thereductions are achieved, and to disclosehow it arrives at the cap. It alsoincludes conditions to ensurebusinesses and consumers are notunfairly impacted by reductions.

TH E ISSUEConsensus has emerged that climatechange is a real threat to the future ofthe planet. The US Senate, a number ofstate Governors, the National Academy

of Sciences in 11 countries, and the vastmajority of academic researchers have

stated that global warming due toatmospheric greenhouse gases is nowoccurring and will result in potentiallycatastrophic global changes if the rate ofgreenhouse gas emissions is not slowedto allow for adaptation.

Potential impacts to California from

climate change include rising sea levelsthat could damage coastal communitiesand coastal wetlands, degradation in airquality resulting in an increase inrespiratory illness, increased death fromheat and insect-borne diseases, loss ofSierra snow pack and related watersupply problems, and a dramaticincrease in state energy needs, amongother problems.

California, if compared against othercountries in the world, is the tenthlargest emitter of carbon dioxidepollution in the world. Californiasconsumption of imported electricity isresponsible for carbon dioxide pollutionemitted from power plants in other partsof the Western U.S.

Addressing global warming carriessubstantial economic benefits.

California is rich in renewable energyresources and advanced energyefficiency technologies that will createnew jobs and provide a hedge againstthe economic impact of price spikes fornatural gas and oil. A set ofrepresentative low-carbon policiesanalyzed for the West Coast Governors

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Global Warming Initiative estimates thatthe west coast region could save acumulative total of almost $40 billion by2020 if these policies are adopted.

Climate change prevention strategieswill have numerous public health andenvironmental benefits by reducing thepollutants that cause smog, soot, hazeand toxic air pollution, and will also helpensure adequate water supplies,preserve farm and forest land uses, andreduce traffic congestion.

The State of California has taken aleadership role in recognizing the threat

of climate change and enactinglegislation and developing policies thataddress greenhouse gas emissions.Governor Schwarzenegger, workingwith the Governors of Oregon andWashington, has approved a series ofrecommendations for action to combatglobal warming. State agencies, inaddition to implementing legislativedirection like the California AirResources Boards rules to limit GHG

emissions from automobiles, have alsopassed regulations that address thecauses of climate change.

EXISTING LAW

The California Legislature has institutedseveral laws to address GHG emissionsfrom sources within the state, such asreducing GHG emissions fromautomobiles, increasing the amount of

renewable energy delivered to Californiainvestor-owned utility (IOU) customers,improving building and applianceefficiency standards, and establishing avoluntary registry to developstandardized GHG emission reportingand certification protocols and housecertified GHG emission data.

TH E SOLUTION

AB 32 requires the CaliforniaEnvironmental Protection Agency towork with state agencies to do thefollowing:

1) Promulgate and implement agreenhouse gas emissions capfor the electric power, industrialand commercial sectors throughregulations in an economicallyefficient manner;

2) Institute a schedule ofgreenhouse gas reductions;

3) Develop an enforcementmechanism for reducing GHGs;

4) Establish a program to track andreport GHG emissions.

AB 32 requires that these regulationsnot create large windfall profits forprivate businesses, penalize industriesor companies which have actedpreviously to reduce greenhouse gasemissions, result in disproportionateimpacts to consumers or anygeographic or socio-economic groups,and should ensure that entities areappropriately motivated to makeinvestments that will reduce emissions.

AB 32 also requires that CAL/EPAreport on how they arrive at theemissions cap, and provide biannualprogress reports on achieving the cap.

FOR MORE IN FORMATIONStaff:Adrienne Alvord(916) 319-2041(916) 319-2121 [Fax]adrienne.alvord@asm.ca.gov [E-mail]