Implementing California’s AB 32:Setting the Pace for the Nation

American Public Power Association 2009 National Conference

Salt Lake CityJune 16, 2009

Kevin Kennedy, Assistant Executive OfficerCalifornia Air Resources Board

Office of Climate Change

• California’s Pavley Clean Car standards were the first vehicle greenhouse gas emission standard in the country Paved the way for the new national standards

announced by President Obama last month

• AB 32 established the first U.S. economy-wide climate change regulatory program

• California’s leadership helps set direction for national program

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California’s Leadership

• AB 32 established the first U.S. economy-wide climate change regulatory program

• California’s leadership helps set direction for national program

• AB 32 sets GHG emission cap for 2020 at 1990 level Points way toward 80% reduction by 2050

• ARB adopted Scoping Plan in December 2008 Plan provides a framework for achieving AB 32’s

GHG emissions reduction target

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What is AB 32?The Global Warming Solutions Act of 2006

Magnitude of the Challenge

ARB Emissions Inventory

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100

200

300

400

500

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700

1990 2000 2004 2020 2050

Year

Mil

lio

n M

etri

c T

on

s(C

O2

Eq

uiv

alen

t)

1990 Emission Baseline

169 MMT CO2e Reduction(Scoping Plan)

80% Reduction 341 MMT CO2e

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ARB, “California 1990 Greenhouse Gas Emissions Level and 2020 Emissions Limit” (2007), www.arb.ca.gov/cc/ccei/inventory/1990_level.htm

2004 Emissions (480 MMT CO2e)

Electricity Generation (Imports)

13%

Residential6%

Industrial20%

Transportation38%

Agriculture6%

Commercial3%

Electricity Generation (In State)

12%

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California’s GHG Emissions

Scoping Plan Recommendations

• Combination of market mechanisms, other regulations, voluntary measures, and fees Cap-and-trade program covers 85 percent of

emissions Complementary measures:

Energy efficiency Renewable energy Regional targets for transportation-related emissions Existing laws and policies (e.g. Pavley, LCFS) Fees: public goods charge on water, administrative fee for

AB 32 implementation

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Scoping Plan Adopted

12/08

Return to 1990 Emissions

Adoption of Scoping Plan Measures

20202009 20112010 2012

Measure Implementation

2013 through

Work Toward 2050

The Next Chapters

Currently In Progress

• Cap and trade program being developed in coordination with Western Climate Initiative

• More economic and health analysis

• Many other ARB measures in progress

• Rules must be adopted by end of 2010 – in effect by 2012

• Other State agencies working on measures:Energy CommissionPublic Utilities CommissionWaste Board Water Board

Dept. of Water ResourcesDept. of Government ServicesHigh Speed Rail Authority

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Scoping Plan Emissions Reductions

OTHER, 7.4

ELECTRICITY & NATURAL GAS,

49.7

CAP & TRADE, 34.4

HIGH GWP GAS MEASURES, 20.2

TRANSPORTATION 62.3

ENERGY EFFICIENCY, 26.3

RENEWABLES, 23.4

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MMTCO2e by sector

Energy Efficiency: Build on Past SuccessPer Capita Electricity Sales (not including self-generation)

(kWh/person)

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2,000

4,000

6,000

8,000

10,000

12,000

14,0001

96

0

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62

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64

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66

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68

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70

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72

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74

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76

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78

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80

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82

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96

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98

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00

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02

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United States

California

New Challenge: Reduce Total Electricity and Natural Gas Consumption

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Residential & Industrial Energy Efficiency

• Reduce electricity consumption by 32,000 GWh compared to business-as-usual

• New more stringent building and appliance standards

• Local government initiatives, including tax bill financing for efficiency and distributed renewables (AB 811)

• Industrial reductions: Water & wastewater energy efficiency Combined heat and power Large industry energy audits

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Renewable Energy Renewable Portfolio Standard

• 14% of retail sales currently met by renewable resources

• Short term goal of 20% by 2010; Long term goal of 33% by 2020

• Reneweable Energy Transmission Initiative – planning the transmission for the 2020 goal

• Smart grid – supply and demand side strategies that can enable renewables while improving reliability

• Million Solar Roofs program

• Voluntary renewables

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Cap-and-Trade Rulemaking• Broad-based California cap-and-trade program to

provide a declining fixed limit on emissions

• Link to other Western Climate Initiative Partner programs

• Complements health-based air quality programs and EJ policies

• Consider effects of the program on the California economy and public health

2009 Regular public meetings on specific issues

Mid-2010 Preliminary draft regulation released

November 2010 ARB hearing on cap-and-trade regulation

January 1, 2012 California/WCI cap-and-trade programs launch

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Partners:ArizonaBritish ColumbiaCaliforniaManitobaMontanaNew MexicoOntarioOregonQuebecUtahWashington

Western Climate Initiative

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• State actions can influence federal climate policies and regulations National greenhouse gas emission standards for

cars

• Working with our federal colleagues to improve Waxman-Markey

• Invite participation by U.S. EPA and other federal agencies in California’s effort

• Promote federal actions, funding opportunities and incentives supporting California’s 2020 cap

California’s Interaction with the Federal Government

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ARB’s Climate Change Website:http://www.arb.ca.gov/climatechange

California’s Climate Change Website:http://climatechange.ca.gov/

ARB Office of Climate Change contact:

Richard Varenchik (626) 575-6730

rvarench@arb.ca.gov

More Information and Contacts

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