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
0
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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00
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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
More Information and Contacts
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