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Implementing California’s AB 32: Setting the Pace for the Nation

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.

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Implementing California’s AB 32: Setting the Pace for the Nation

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  1. 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

  2. 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 California’s Leadership 2

  3. 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 What is AB 32?The Global Warming Solutions Act of 2006 3

  4. Magnitude of the Challenge 169 MMT CO2e Reduction (Scoping Plan) 1990 Emission Baseline 80% Reduction 341 MMT CO2e 4

  5. California’s GHG Emissions ARB, “California 1990 Greenhouse Gas Emissions Level and 2020 Emissions Limit” (2007), www.arb.ca.gov/cc/ccei/inventory/1990_level.htm 5

  6. 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 6

  7. The Next Chapters 2009 2011 2012 2010 Return to 1990 Emissions Adoption of Scoping Plan Measures 2013 through 2020 Measure Implementation Scoping Plan Adopted 12/08 Work Toward 2050

  8. Currently In Progress Energy Commission Public Utilities Commission Waste Board Water Board Dept. of Water Resources Dept. of Government Services High Speed Rail Authority • 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: 8

  9. Scoping Plan Emissions Reductions MMTCO2e by sector 9

  10. Energy Efficiency: Build on Past Success New Challenge: Reduce Total Electricity and Natural Gas Consumption 10

  11. 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 11

  12. 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 12

  13. 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 13

  14. Western Climate Initiative • Partners: • Arizona • British Columbia • California • Manitoba • Montana • New Mexico • Ontario • Oregon • Quebec • Utah • Washington 14

  15. 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 15

  16. 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 rvarench@arb.ca.gov 16

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