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The California Air Resources Board is one of six boards, departments, and offices under the umbrella of the California Environmental Protection Agency.
AB 32 authorizes the collection of a fee from sources of GHGs. In 2010, CARB adopted a regulation to collect a fee to administer the program, called the AB 32 Cost of Implementation Fee Regulation. This fee is collected annually from large sources of GHGs, including oil refineries, electricity power plants (including imported electricity), cement plants and other industrial sources. There are approximately 250 fee payers that emit 330 million metric tons of GHG emissions per year. Funds collected are used to cover annual expenses for CARB and other State agencies to implement AB 32.
The Legislature finds and declares all of the following: (a) Global warming poses a serious threat to the economic well-being, public health, natural resources, and the environment of California. The potential adverse impacts of global warming include the exacerbation of air quality problems, a reduction in the quality and supply of water to the state from the Sierra snowpack, a rise in sea levels resulting in the displacement of thousands of coastal businesses and residences, damage to marine ecosystems and the natural environment, and an increase in the incidences of infectious diseases, asthma, and other human health-related problems. (b) Global warming will have detrimental effects on some of California’s largest industries, including agriculture, wine, tourism, skiing, recreational and commercial fishing, and forestry. It will also increase the strain on electricity supplies necessary to meet the demand for summer air-conditioning in the hottest parts of the state.
According to leading climate scientists from around the world, anthropogenic climate change (that caused by humans) is a significant and growing problem that must be addressed in order to avoid the worst effects. Climate change is the result of various GHGs that are emitted into the atmosphere, such as carbon dioxide (CO2) and methane (CH4), which have a heat forcing effect on the atmosphere. Sharp rises of GHGs over the last century and a half have led to higher overall worldwide temperatures, reduced snowpack in the higher elevations, greater fluctuations of temperature and precipitation, global sea level rise and more frequent and severe extreme weather events, including hurricanes, heatwaves and droughts. AB 32 describes the problem for California:
AB 32 directs the California Air Resources Board (CARB) to be the lead agency to implement the law. The Climate Action Team, made up of relevant state agencies, is charged with helping direct state efforts on the reduction of GHG emissions and engaging state agencies. The Climate Action Team includes:
Separate from AB 32, the State of California is also making efforts to adapt to a changing climate. The State’s climate change adaptation efforts are being led by the Natural Resources Agency.
Yes, in addition to California’s regulatory and market-based programs aimed at reducing GHG emissions, investments from various sources provide incentives for companies to reduce emissions. Combining strategic financial investments with policy support can accelerate market transitions to cleaner technologies. One important source of funding is the Greenhouse Gas Reduction Fund (GGRF), which will be used to fund a variety of projects that will provide long-term reductions in GHG emissions. Funding for the GGRF comes from auction proceeds that are part of CARB’s Cap-and-Trade program. As directed by legislation, CARB’s Investment Plan evaluates opportunities for GHG reductions and identifies priority investments in the state to help achieve emission goals and realize important co-benefits. More detailed information on funding for reducing GHG emissions in California can be found on the Cap-and-Trade Auction Proceeds webpage, and in the First Update to the Scoping Plan starting on page 104.
AB 32 requires CARB to develop a Scoping Plan which lays out California’s strategy for meeting the goals. The Scoping Plan must be updated every five years. In December 2008, the Board approved the initial Scoping Plan, which included a suite of measures to sharply cut GHG emissions. In May 2014, CARB approved the First Update to the Climate Change Scoping Plan (Update), which builds upon the initial Scoping Plan with new strategies and recommendations. The Update highlights California’s progress toward meeting the near-term 2020 GHG emission reduction goals, highlights the latest climate change science and provides direction on how to achieve long-term emission reduction goal described in Executive Order S-3-05. Reductions in GHG emissions will come from virtually all sectors of the economy and will be accomplished from a combination of policies, planning, direct regulations, market approaches, incentives and voluntary efforts. These efforts target GHG emission reductions from cars and trucks, electricity production, fuels, and other sources. The status of these efforts can be found in Appendix B of the Update.
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*Nitrogen trifluoride was not listed initially in AB 32 but was subsequently added to the list via legislation. Other compounds, including some aerosols, can also have a strong heat forcing effect on the atmosphere. This includes black carbon, comprised of microscopic particles which are emitted from incomplete combustion of biomass and fossil fuels. Reducing black carbon and other so-called short-lived climate pollutants (methane, tropospheric ozone and some hydrofluorocarbons) will help us slow the acceleration of climate change sooner than by reducing emissions of other GHGs alone. It will also improve public health, and will be an important element of California’s climate change program strategy. CARB annually updates a statewide GHG inventory. The inventory includes estimates of GHGs emitted to the atmosphere by human activities in California.
AB 32 requires California to reduce its GHG emissions to 1990 levels by 2020 — a reduction of approximately 15 percent below emissions expected under a “business as usual” scenario. Pursuant to AB 32, CARB must adopt regulations to achieve the maximum technologically feasible and cost-effective GHG emission reductions. The full implementation of AB 32 will help mitigate risks associated with climate change, while improving energy efficiency, expanding the use of renewable energy resources, cleaner transportation, and reducing waste.
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