SENATE RULES COMMITTEE
Office of Senate Floor Analyses
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AB 1496
THIRD READING
Bill No:
Author:
Amended:
Vote:
AB 1496
Thurmond (D), et al.
9/4/15 in Senate
21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-1, 7/1/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Bates
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 57-18, 6/2/15 - See last page for vote
SUBJECT: Methane emissions
SOURCE: Clean Power Campaign
DIGEST: This bill requires the California Air Resources Board (ARB) to 1)
monitor high-emission methane hot-spots in the state, 2) consult with specified
entities to gather information for purposes of carrying out life-cycle GHG
emissions analyses of natural gas imports, 3) update relevant policies and programs
based on those updated life-cycle analyses, and 4) review scientific information on
atmospheric reactivity of methane as a precursor to the formation of photochemical
oxidants.
Senate Floor Amendments of 9/4/15 strike the provision authorizing ARB to
evaluate whether methane should be reclassified as a contributor to the formation
of air pollution.
Senate Floor Amendments of 9/2/15 specify that ARB is authorized to evaluate
whether methane should be reclassified as a contributor to the formation of air
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pollution, upon completion of a review of the most recent available scientific
information.
ANALYSIS:
Existing law:
1) Provides that under the California Global Warming Solutions Act of 2006
(Health and Safety Code (HSC) §38500 et seq.):
a) Defines methane, carbon dioxide (CO2), and other chemicals as a
greenhouse gas (GHG);
b) Requires the ARB, to determine the 1990 statewide GHG emissions level,
and approve a statewide GHG emissions limit that is equivalent to that level,
to be achieved by 2020;
c) Requires the ARB to adopt GHG emissions reductions measures by
regulation to achieve the 2020 GHG limit; and
d) Requires the ARB to adopt regulations to require the reporting and
verification of statewide GHGs.
2) Requires the ARB to complete, by January 1, 2016, a comprehensive strategy to
reduce emissions of short-lived climate pollutants (SLCPs) in the state. (HSC
§39730)
This bill requires the ARB to do all of the following:
1) Monitor and measure high-emission methane hot spots in the state using the
best available scientific and technical methods, in consultation with local air
districts that monitor methane, using the best available and cost-effective
scientific and technical methods.
2) Consult with specified entities to gather or acquire the necessary information
for the purpose of carrying out a life-cycle GHG emissions analysis of natural
gas produced and imported into the state using the best available and costeffective scientific and technical methods.
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3) Update relevant policies and programs to incorporate the updated life-cycle
GHG emissions analysis of natural gas produced and imported into the state.
4) Review the most recent available scientific data and reports on atmospheric
reactivity of methane as a precursor to the formation of photochemical oxidants.
Background
1) Methane and short-lived climate pollutants. Methane (or CH4) is the principal
component of natural gas and is also produced biologically under anaerobic
conditions in ruminant animals, landfills and waste handling. Methane is
termed a SLCP, as it has a much shorter lifetime in the atmosphere than CO2,
but has a much higher global warming potential. According to the US
Environmental Protection Agency (US EPA), methane is 20-30 times more
effective than CO2 in trapping heat in the atmosphere over a 100-year period.
SLCPs, including methane, are responsible for 30-40% of global warming to
date.
2) Methane sources. Atmospheric methane concentrations have been increasing
as a result of human activities related to agriculture, fossil fuel extraction and
distribution, and waste generation and processing. According to the ARB’s
updated scoping plan, the state’s largest anthropogenic methane-producing
sources are enteric fermentation (eructation, or belching by animals), manure
management, landfills, natural gas transmission, and wastewater treatment.
Methane emissions also come from non-anthropogenic sources such as
wetlands, oceans, and forests. Methane gas from oil and gas production and
distribution is a growing source of emissions in many countries, including the
United States, due to increased exploration and use of natural gas for energy.
Fugitive methane. A growing body of evidence suggests that the US EPA has
underestimated methane emissions nationwide, possibly by as much as 50%.
Additionally, several recent analyses of atmospheric measurements suggest that
actual methane emissions in the state may be 30 to 70% higher than estimated
in the ARB’s emission inventory.
SB 605 (Lara, Chapter 523, Statutes of 2014) directs the ARB to develop a
comprehensive SLCP strategy by January 1, 2016. In developing the strategy,
the ARB is required to complete an inventory of sources and emissions of
SLCPs in the state based on available data, identify research needs to address
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data gaps and existing and potential new control measures to reduce emissions.
In May of this year, the ARB released a SLCP concept paper.
According to the concept paper, methane is the second largest component of
GHG emissions in California, and methane emissions are on the rise. The paper
notes that California “has taken important steps to reduce methane emissions
from all of its major sources, but more needs to be done to more fully control
methane emissions, especially from organic waste streams going to landfills and
at dairies.” The concept paper identifies several steps as necessary to
significantly reduce methane emissions in the state, including a) minimizing
fugitive methane emissions from all infrastructure and equipment, b) effectively
eliminate disposal of organic materials at landfills, c) significantly reduce
methane emissions from dairies, and d) maximizing resource recovery from
wastewater treatment facilities.
The concept paper also notes that, “coordinated research efforts between ARB
and the California Energy Commission to refine emission estimates have led to
the development of the only subnational methane monitoring network in the
world. In addition, researchers at ARB and at NASA’s Jet Propulsion
Laboratory are currently collaborating to identify large ‘hot spot’ methane
sources in the San Joaquin Valley.”
3) AB 32 and methane. The ARB has broad authority to regulate methane as a
GHG under AB 32 and create programs and implement measures to reduce
GHGs in the state to achieve the statewide 2020 GHG emissions goal.
The ARB has implemented several programs that target methane emissions, or
provide incentives for the use of renewably generated methane.
Mandatory GHG reporting. AB 32 requires the ARB to monitor and verify
GHG emissions from electricity production and manufacturing throughout the
state, as well as suppliers of fuel (including natural gas) and operators of natural
gas pipelines, if the amount of fuel combusted in the state is over 10,000 metric
tons of CO2 equivalents. Fugitive GHG emissions from landfills and emissions
from agriculture are exempt from the reporting requirement.
Methane from landfills. Effective June 17, 2010, the ARB approved a
regulatory measure as an AB 32 discrete early action measure that requires
owners and operators of certain uncontrolled municipal solid waste landfills to
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install gas collection and control systems, and requires existing and newly
installed gas and control systems to operate in an optimal manner.
Cap-and-trade program. Pursuant to AB 32, the ARB adopted a cap-and-trade
program that places a “cap” on aggregate GHG emissions from large GHG
emitters, which are responsible for approximately 85% of the state’s GHG
emissions. The cap declines over time, eventually reaching the target emission
level in 2020. Large emitters must obtain compliance instruments equal to their
emissions in that period. Compliance instruments include allowances and
offsets, where allowances are generated by the state in an amount equal to the
cap, and offsets result from emissions reductions achieved in an uncapped
sector and are quantified and verified using an ARB approved compliance
offset protocol. Although GHG emissions, including methane, from landfills
and agricultural sources are not covered under the cap, the ARB has adopted
offset protocols for five project types including dairy digesters to capture
fugitive methane emissions, and an offset protocol for capturing would-be
fugitive emissions of methane from coal mines.
Low Carbon Fuel Standard (LCFS). Pursuant to their authority under AB 32,
the ARB adopted the LCFS in 2009, which requires transportation fuel
suppliers in the state to meet certain average annual carbon limitations. The
program ultimately requires a 10% reduction in the carbon intensity of a
particular fuel by 2020. The carbon intensity measures the net carbon
emissions of the entire life-cycle of the fuel, including carbon emitted during
production, refining, and transportation, and conversion of the fuel to useable
energy. Fuel suppliers can meet the standard by reducing the carbon intensity
of their fuels, or by purchasing credits from other suppliers of other fuels that
have carbon intensities below state requirements. Methane created from
organic feedstock, or biomethane, already meets the 10% reduction requirement
in 2020, the fuel qualifies for credits under the program.
4) Leaks from natural gas system. In an effort to address systemic natural gas
leaks from an aging infrastructure as well as address climate impacts due to
methane, SB 1371 (Leno, Chapter 525, Statutes of 2014) requires the Public
Utilities Commission (PUC), in consultation with the ARB, to open a
proceeding to adopt rules and procedures that minimize natural gas leaks from
PUC-regulated gas pipeline facilities. SB 1371 also requires the rules and
procedures include procedures for the development of metrics to quantify the
volume of emissions from leaking gas pipeline facilities, and for evaluating and
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tracking leaks geographically and over time that may be incorporated into the
ARB’s mandatory GHG emission reporting.
5) Ambient air quality standards, ozone, and methane. Smog is formed from the
reaction of oxides of nitrogen (NOx) with volatile organic compounds (VOCs)
to produce ground-level ozone, or tropospheric ozone. Ozone has a number of
negative health effects including irritated respiratory system, reduced lung
function, aggravated asthma and inflammation and damage of the lining of the
lung. Active children are the group at highest risk from ozone exposure. In
addition to negative public health impacts, ozone itself is a powerful SLCP.
Under the federal Clean Air Act, the US EPA established National Ambient Air
Quality Standards that apply for outdoor air throughout the country. These
standards exist for several air pollutants due to their negative impact on public
health above specified concentrations, including ozone. The ARB has also
adopted state ambient air quality standards for various air pollutants that are, in
some cases, more stringent than federal standards. Local air districts are
required to adopt and enforce rules to achieve and maintain the state and federal
ambient air quality standards.
To comply with the standards for ozone, local air districts have regulations
limiting emissions of NOx and VOCs for stationary sources located in their
jurisdiction. These local air district requirements have cut in half the emissions
of VOCs and NOx, and significantly reduced ozone concentrations throughout
California. However, the ARB’s SLCP concept paper notes that, “because the
regulatory definition of VOCs does not include methane due to its relatively
low reactivity and lack of impact on regional ozone production, methane
emissions have not fallen at similar rates as VOCs over the past decades.”
The concept paper also states that although methane is not a large contributor to
regional ground-level ozone levels, regional methane emissions which are fairly
well-mixed in the atmosphere contribute to the global abundance of methane,
which in turn contributes to global background levels of ozone.
Comments
1) Purpose of bill. According to the author, “California is an established leader in
cutting edge climate policy. From the renewable portfolio standard to the firstof-its-kind cap-and-trade carbon reduction system, California has pioneered
policies to reduce human and industrial impacts on the climate and our
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environment. However, the state has not yet established comprehensive
policies or monitoring systems to regulate methane emissions, a volatile shortlived climate pollutant, the emissions rates of which continue to grow
unchecked. Without extra effort to reduce methane and other short-lived
climate pollutants, our ambitious goals and measures to curb carbon dioxide
emissions may not be sufficient to slow the progress of climate change.”
FISCAL EFFECT: Appropriation: No
Fiscal Com.:
Yes
Local: No
According to the Senate Appropriations Committee:
 Ongoing annual staffing costs of $350,000 and a $700,000 contract with the Jet
Propulsion Lab to the Cost of Implementation Account (special) to identify and
monitor high-emission methane hot spots.
 Ongoing annual staffing costs of $350,000 and a $150,000 contract to the Cost
of Implementation Account (special) to conduct a life-cycle GHG emission
analysis of natural gas produced in and imported into the state.
SUPPORT: (Verified 9/4/15)
Clean Power Campaign (source)
Azul
Californians Against Waste
California League of Conservation Voters
Clean Water Action
Coalition for Clean Air
Environment California
Environmental Working Group
Natural Resources Defense Council
Sierra Club California
West Marin Environmental Action Committee
OPPOSITION: (Verified 9/8/15)
None received
ARGUMENTS IN SUPPORT: Supporters state that methane is a potent GHG
with 20 to 30 times the warming power of CO2 over a 100-year period. Supporters
argue that despite the fact that ARB has recognized the GHG potential of SLCP
and the importance of reducing methane, methane has been overlooked in the
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state’s GHG reduction policies to date. Supporters also state that methane helps
create ozone, which impacts local air quality and community health.
ASSEMBLY FLOOR: 57-18, 6/2/15
AYES: Alejo, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos,
Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier,
Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon,
Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine,
Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, Obernolte,
O'Donnell, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Bigelow, Brough, Beth Gaines, Gallagher,
Harper, Jones, Kim, Linder, Mathis, Melendez, Olsen, Patterson, Steinorth,
Wagner, Waldron, Wilk
NO VOTE RECORDED: Chang, Chávez, Dahle, Grove, Mayes
Prepared by: Rebecca Newhouse / E.Q. / (916) 651-4108
9/8/15 21:59:27
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