California’s Legislative Backdrop for Addressing Climate Change Cara Martinson Senior Legislative Representative & Federal Affairs Manager California State Association of Counties (CSAC)

Climate Change Legislation… In the beginning AB 4420 (Sher, 1988): CEC creates inventory of GHG emissions SB 1771 (Sher, 2000): Creates the CA Climate Action Registry SB 527 (Sher, 2001): Requires 3rd Party Verification of metrics and developed GHG emissions protocols AB 1493 (Pavley, 2002): Clean Car Standards SB 812 (Sher, 2002): Added Forest Management to Registry SB 1078 (Sher, 2002): Established Renewable Portfolio Standard Program

AB 32 & Beyond AB 32 (Nunez, 2006): Global Warming Solutions Act, Goal to Reduce GHGs to 1990 levels by 2020 SB 107 (Simitian, 2006): Increased RPS Standard to 20% by 2010 SB 1 (Murray, 2006): CA Million Solar Roofs Plan AB 1803 (Budget Committee, 2006): CARB takes over inventory SB 97 (Dutton, 2007): CEQA Guidelines for mitigation of GHGs AB 118 (Nunez, 2007): Alt Fuels & Vehicle Technology Program SB 375 (Steinberg, 2008): Regional GHG Targets for Vehicles & Sustainable Communities Strategies AB 1504 (Skinner, 2010): Forest Resources & Carbon Sequestration

Cap & Trade and Disadvantages Communities SB X1-2 (Simitian, 2011): RPS Goal of 33% by 2020 AB 1532 (Perez, 2012): Legislative Investment Plan SB 535 (de León, 2012): Disadvantaged Communities Requirements for GGRF AB 1092 (Levine, 2013): Building Standards for Electric Vehicles AB 8 (Perez, 2013): Alternative Fuel & Vehicle Funding SB 1204 (Lara, 2014): Clean Truck, Bus & Off-Road Vehicle & Equipment Technology Program

RPS & Short-lived Climate Pollutants SB 1275 (de León, 2014): Creates goal of 1 million zero-emissions vehicles by 2020 SB 605 (Lara, 2014): CARB Strategy for Short-Lived Climate Pollutants SB 350 (de León, 2015): Increases the RPS to 50% by 2030 SB 32 (Pavley, 2016): GHG target of 40% below 1990s levels by 2030 AB 197 (E. Garcia, 2016): Prioritizes emissions from large stationary and mobile sources SB 1383 (Lara, 2016): Short-lived Climate Pollutant Targets

The Big Picture

Legal Uncertainty CARB’s Authority to Auction Allowances Challenged in Court Challenges to CARB’s Authority to Operate Program Beyond 2020 Lack luster auction results New Federal Administration

2017-18 Legislative Session

Game Changers: AB 398 & AB 617 AB 398 (E. Garcia, 2017) Requires CARB to update the Scoping plan by 2018 Extends CARB’s authority to establish & utilize market mechanisms to reduce GHG emissions Includes a new set of GGRF funding Priorities AB 617 (C. Garcia, 2017) Increases community-level monitoring of air pollution Requires emissions investment in communities burdened by high levels of local air pollution

AB 398 (Chapter 135, Statutes of 2017) Passed with a 2/3 vote of the Legislature Extends the cap and trade system through December 31, 2030 with declining emissions limits Requires CARB to set cost containment measures, including price ceilings, cost containment points, and offset credit limits Requires CARB to Update the Scoping Plan by 2018 Establishes new funding priorities for the allocation of cap and trade resources

AB 398 Cont. Prohibits local air districts from adopting additional emissions reductions rules from stationary sources that are subject to cap and trade Suspends the State Responsibility Area (SRA) fee effective July 1, 2017 until January 1, 2031 Extends and expands the current sales and use tax exemption available to qualified manufacturers and specified research firms until July 1, 2030

AB 617 (Chapter 136, Statutes of 2017) Requires stationary sources to report annual emissions of criteria pollutants and toxic air contaminants Requires CARB to prepare a statewide strategy to reduce air emissions in communities with a high cumulative exposure burden Expedited schedule for implementation of Best Available Retrofit Control Technology on large industrial sources Requires local air districts to develop and implement plans for communities that have high emissions burdens from mobile and stationary sources

AB 617 Funding in FY 17-18 budget $250M for incentive programs to support early actions to reduce mobile source emissions : 43% to South Coast Air Quality Management District 32% to San Joaquin Valley Air Pollution Control District 20% to Bay Area Air Quality Management District 5% to CARB for redistribution to other Air Districts $5M for community assistance grants Training/support Technical experts

2017 Cap and Trade Allocation - $1.5B Forestry & Natural Resources— $351 M Funds for Urban Greening, Fire Prevention, Healthy Forests, Wetlands & Coastal Projects Local Climate Action & Research – $46.2 M Funds for Local Climate Projects, Conservation Corps & Research AB 617 & Short-Lived Climate Pollutants – $168 M AB 617 Implementation, Waste Diversion, Dairy Digesters Energy Efficiency/Renewable Energy – $84 M Low-income Weatherization Funds, Energy projects in Ag Sector Mobile Source Emissions – $900M Carl Moyer funds, Zero-Emissions Vehicle incentives, Clean Freight

The Work Ahead… 2018 Scoping Plan AB 617 Implementation Climate Adaptation & Resiliency

CSAC Senior Legislative Representative & Federal Affairs Manager Contact Information Cara Martinson CSAC Senior Legislative Representative & Federal Affairs Manager cmartinson@counties.org 913-327-7500, ext. 504