November 13,

Objective of Presentation ARBs Role The Challenge Successes to Date 2014 Priorities AB 32/Scoping Plan Update 2

Air Pollution Authority ARB Motor vehicles Fuels Consumer products Air toxics Climate Local air districts Stationary sources (ex. permitting/enforcement) Local rules US EPA SIP National rules 3

Air Pollutants of Concern Criteria pollutant precursors Oxides of nitrogen, volatile organic compounds, particulate matter Diesel PM Listed as a TAC and a component of PM2.5 Air Toxic Contaminants (TACs) Examples: Benzene, 1,3-butadiene, and others gaseous pollutants Greenhouse gases 4

Meeting the Challenge California faces greatest air quality challenges in the nation SIPs must address increasingly stringent standards with frequent legal challenges A combination of regulations, incentives, sustainable land use and transportation systems, and infrastructure investments is needed 5

Evolution of ARB Programs 1980s: Focus on Passenger Vehicles 1990s: Focus on Trucks, Cleaner Passenger Vehicles, Off-Road Engines 2000s: Focus on Legacy Fleets and Next Generation Passenger Vehicles Tail pipe standardsHeavy-duty diesel truck standards Ports and freight handling equipment Smog CheckClean diesel fuelsRetrofit/replace trucks and buses On-board diagnosticsLow-emission vehicles and clean fuels and reformulated gas Electric hybrids and plug-ins Diesel fuel specifications Small off-road equipment Marine vessels Consumer productsRetrofit/replace off- road equipment 6

Benefits of CAs Programs: NOx 7

Benefits of CAs Programs: VOC 8

LEV III: Reducing Criteria Emissions 9 150,000-mile New Vehicle Fleet Average Emissions 75% Reduction in fleet average emissions mg/mi PM standard in 2025 maintains current PM emission level of well controlled PFI engines LEV III Particulate Matter Standards

Implementation Truck and Bus Regulation Low Carbon Fuel Standard Cap and Trade Advanced Clean Cars Regulatory/Guideline Development Vehicle retirement program ZEV Incentive program Alternative diesel fuel 2015 SIP Complete update to Scoping Plan Oil and gas production, processing, and storage Heavy duty GHG measure California Air Resources Board Priorities

AB 32 requires ARB to achieve a target greenhouse gas emissions level in 2020 equivalent to the 1990 emissions Scoping Plan includes a suite of measures to achieve 2020 target Measures focus on energy efficiency improvements and result in GHG reductions as well as other benefits AB 32 requires that Scoping Plan be updated at least every five years California Air Resources Board 11 Climate Change

Required by AB 32 Outlines States strategy to achieve 2020 GHG goal Built on a balanced mix of strategies 12 Initial Scoping Plan

Success of Scoping Plan Comprehensive suite of strategies applied to all sectors Renewable energy currently accounts for 22 percent of states electricity Global leader in energy efficiency Most comprehensive Cap-and-Trade program in world 13

Success of Scoping Plan (continued) Low carbon transportation fuels have displaced two billion gallons of gasoline and diesel Zero emission vehicle regulation and Governors Executive Order transforming vehicle fleet Major strides in sustainable transportation, land use, and housing planning 14

Suite of AB 32 Measures Building and appliance energy efficiency standards Transportation Tire Pressure Regulation Low Carbon Fuels Standard Heavy-Duty Trucks Mobile Air Conditioners (DIY Cans) High Speed Rail SB 375 Electricity Renewable Portfolio Standard California Solar Initiative Combined Heat and Power High Global Warming Potential Gasses High GWP Consumer Products Refrigerant Management Program SF6 Leak Reduction Stationary Sources Shore Power Semiconductor Manufacturing Landfill Methane Capture Energy Efficiency Audits for Industrial Sectors Cap-and-Trade Program California Air Resources Board 15

AB 32 Scoping Plan Update Update shows progress to steadily drive down GHG emissions to 2020 target Sets framework to move beyond 2020 Progress will be through regulations, partnerships, and incentives 16

AB 32 Scoping Plan Update Key Questions How have we done over past 5 years? What is needed to continue to 2020? What steps are needed to continue emission reductions and grow our economy beyond 2020? 17

AB 32 Scoping Plan Update Process Process developed in consultation with many stakeholders Climate Action Team Local and regional agencies Business, environmental, EJ, and community based organizations Workshops and opportunities for comment on discussion draft 18

September 2013 IPCC Fifth Assessment Report California particularly vulnerable Extreme heat and storms Drought and wildfires Coastal flooding and erosion Underscores need to accelerate GHG emission reductions 19 Latest Understanding of Climate Science

Short Lived Climate Pollutants (SLCP) Atmospheric lifetime of a few days to a few decades High global warming potential Include black carbon, methane, and HFCs SLCP already regulated by ARB Further control strategies being developed ARB committed to develop comprehensive SLCP strategy by

Economic Impacts of AB 32 Net impact of AB 32 small in relation to the $2 trillion California economy Measures underway but still in early stages Consultation with economic advisors to guide data collection in preliminary stages Develop methodology to assess impacts as program implementation continues Continue to engage external economic experts, researchers, and stakeholders 21

Public Health Impacts of AB 32 Many Scoping Plan measures have public health benefits Improved air quality Active transportation/physical activity Greener buildings Efforts to identify and avoid unintended negative health impacts New tools/data needed to help quantify impacts and monitor progress 22

Environmental Justice Environmental Justice Advisory Committee (EJAC) EJAC initial recommendations considered during development of Update EJAC meeting to discuss draft on 10/22/13 23

Regional and Local Initiatives Locally-driven efforts critical for AB 32 success Emissions are being reduced across sectors Improved municipal operations Codes, standards, and general plan improvements Sustainable communities strategies implementation ~70 percent of California jurisdictions have or will complete GHG emission reduction programs Collaboration with CAPCOA 24

Continuing Progress Beyond 2020 Need for Midterm Target Science supports continued reductions Californias 2050 goal Establishing a 2030 target would: Ensure continued progress toward goal Provide greater levels of market certainty in the near term Frame the next suite of emission reduction measures Coordination with Administration, Legislature, stakeholders 25

Recommendations to Transition Beyond 2020 Six Key Focus Areas EnergyTransportationAgricultureWater Waste Management Natural and Working Lands 26

Next Steps Late November - Revised Update and Environmental Assessment Released EA will be prepared according to requirements of ARBs certified program under CEQA 45-day comment period December 12 th - Board Hearing EA comments due mid-January 2014 Respond to EA comments and Board consideration Spring

Conclusions Climate change represents a serious threat to the health of Californians, our natural resources, and economy California is driving down GHG emissions to meet the 2020 goal Now is the time to begin developing long-term strategies All Californians will play a key role in meeting the long-term climate goals 28

Approach to Air Quality Planning Integrate ARB planning efforts for SIPs, AB 32 Scoping Plan, and freight planning Expand on longstanding partnerships with air pollution control districts and metropolitan planning agencies Develop innovative strategies tailored to Californias air quality problems Ongoing interaction with business, environmental, governmental, public stakeholders 29