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Implementing California’s AB 32:
Setting the Pace for the Nation
American Public Power Association
2009 National Conference
Salt Lake City
June 16, 2009
Kevin Kennedy, Assistant Executive Officer
California Air Resources Board
Office of Climate Change
California’s Leadership
• 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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What is AB 32?
The Global Warming Solutions Act of 2006
• 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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Magnitude of the Challenge
ARB Emissions Inventory
700
Million Metric Tons
(CO2 Equivalent)
600
500
169 MMT CO2e Reduction
(Scoping Plan)
1990 Emission
Baseline
400
300
80% Reduction
341 MMT CO2e
200
100
0
1990
2000
2004
Year
4
2020
2050
California’s GHG Emissions
2004 Emissions (480 MMT CO 2e)
Transportation
38%
Residential
6%
Industrial
20%
Agriculture
6%
Commercial
3%
Electricity
Generation
(Imports)
13%
Electricity
Generation
(In State)
12%
ARB, “California 1990 Greenhouse Gas Emissions Level and 2020 Emissions Limit”
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(2007), www.arb.ca.gov/cc/ccei/inventory/1990_level.htm
Scoping Plan Recommendations
• Combination of market mechanisms, other
regulations, voluntary measures, and fees
 Cap-and-trade program covers 85 percent of
emissions
 Complementary measures:





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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
The Next Chapters
Return to 1990
Emissions
Adoption of Scoping Plan Measures
2009
Scoping Plan
Adopted
12/08
2010
2011
2012
2013
through
2020
Measure Implementation
Work Toward
2050
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 Commission
Public Utilities Commission
Waste Board
Water Board
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Dept. of Water Resources
Dept. of Government Services
High Speed Rail Authority
Scoping Plan Emissions Reductions
MMTCO2e by sector
HIGH GWP GAS
MEASURES, 20.2
OTHER, 7.4
ENERGY
EFFICIENCY, 26.3
CAP & TRADE, 34.4
ELECTRICITY &
NATURAL GAS,
49.7
TRANSPORTATION
62.3
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RENEWABLES,
23.4
Energy Efficiency: Build on Past Success
Per Capita Electricity Sales (not including self-generation)
(kWh/person)
14,000
12,000
10,000
8,000
6,000
New Challenge: Reduce
Total Electricity and
Natural Gas Consumption
4,000
United States
California
2,000
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2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
0
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
•
•
•
•
•12
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
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
Mid-2010
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Regular public meetings on specific issues
Preliminary draft regulation released
November 2010
ARB hearing on cap-and-trade regulation
January 1, 2012
California/WCI cap-and-trade programs launch
Western Climate Initiative
Partners:
Arizona
British Columbia
California
Manitoba
Montana
New Mexico
Ontario
Oregon
Quebec
Utah
Washington
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California’s Interaction with the
Federal Government
• 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
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More Information and Contacts
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
[email protected]
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