Policy Update: Several carbon bills passed through California committees

Numerous bills that would decrease carbon emissions or increase the renewable energy requirements inside of the state advanced through the California state legislature prior to the summer recess.

The state legislature is currently debating bills in the opposite house, but so far, the state’s senate and assembly have approved a majority of the bills through committee. The state legislature adjourned for summer recess and will have roughly 25 days in mid-August and early-September to finalise those bills.

The senate appears keen to approve Assembly Bill 645 (AB 645) that would increase the renewable portfolio standard (RPS) from 33% to 50% by 2030. The measure passed 8-3 earlier this month, but policy experts expected that the bill would face little opposition in the state’s senate.

Assembly Bill 21 (AB 21) is the only bill that appears to have stalled over the past month. The bill would require the state to prepare and approve a scoping plan for hitting the maximum technologically feasible and cost-effective carbon reductions.

The senate, which is seen as more liberal, is expected to widely support bills that advance or increase renewable or carbon reduction efforts. The assembly, however, is seen as more conservative and could oppose the two major bills it’s debating.

Senate Bills 32 and 350 both passed through committee and were referred to the committee on appropriations. However, they likely will face more wider opposition when voted on by the entire assembly.

All bills must be approved by the state legislature by 11 September. Governor Jerry Brown must sign or veto bills by 11 October.

Here is the most up-to-date information on the policy updates in California:

Senate Bill 32: This bill would establish the 40% target below 1990 levels by 2030 and also adopt an interim emissions target for 2040. The bill has not been altered since being amended in June to remove an interim emissions target.

Status: The bill is awaiting a hearing in the assembly’s committee on appropriations. It was approved 6-3 in the assembly’s committee of natural resources on 14 July.

Outlook: State Senator Fran Pavley, who submitted the bill, has tremendous influence on the state’s environmental policies, and she will likely leverage enough support for this bill to pass. It has not faced broad criticism to date.

Senate Bill 350: This bill would require the RPS to increase to 50%, building efficiency to improve 50% and petroleum use to be cut by 50% by 2030.

Status: The bill was amended slightly in committee and referred to the committee on appropriations on 16 July.

Outlook: The bill has similarities to AB 645, but it would place additional carbon requirements. Utilities, including Pacific Gas & Electric, Southern California Edison and Sempra Generation, voiced concerns about some of the requirements. It remains unclear whether the more conservative assembly will provide enough support to approve this bill.

Assembly Bill 21: This bill would require the Air Resources Board to consult with specified state agencies regarding energy efficiency and electrification of the transportation sector.

Status: It was ordered for a third reading on 30 June, but it has not been discussed since. It is still being debated in the senate’s committee of environmental quality.

Outlook: It is unclear how much support this bill has since it would not bring about any tangible changes to the state’s carbon programme.

Assembly Bill 645: This bill would increase the renewable portfolio standard from 33% to 50% by 2030.

Status: The bill passed 8-3 through the senate’s committee on energy, utilities and communications on 7 July. It was referred to committee on appropriations.

Outlook: The senate passed SB 350 that has similar RPS requirements to AB 645. Experts believe this bill will find support from the legislature for that reason.

Assembly Bill 1288: The bill would extend the cap-and-trade programme past 2020. It would also remove dates that could be construed as end dates.

Status: The bill was approved 5-2 through the committee on environmental quality on 15 July.

Outlook: Most believe this bill will win support in the senate, because in general, state legislators already believe AB 32, which instituted the state’s cap-and-trade programme, allows the programme to be extended after 2020. dan.mcgraw@icis.com