The Global Warming Solutions Act of 2006, or Assembly Bill (AB) 32, is a California state law that fights global warming by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state. AB32 was co-authored by Assemblymember Fran Pavley (D-Agoura Hills) and Speaker of the California Assembly Fabian Nunez (D-Los Angeles) and signed into law by Governor Arnold Schwarzenegger on September 27, 2006.
On June 1, 2005, Governor Schwarzenegger signed an executive order known as Executive Order S-3-05, which established greenhouse gas emissions targets for the state. The executive order required California to reduce greenhouse gas emissions to 2000 levels by 2010, to 1990 levels by 2020, and 80% below 1990 levels by 2050. However, to implement this measure, the California Air Resources Board (CARB) needed authority from the legislature. The California State Legislature passed the Global Warming Solutions Act to address this issue and gave the CARB authority to implement the program.
AB 32 requires the California Air Resources Board (CARB or ARB) to create regulations and market mechanisms to reduce the state's greenhouse gas emissions to 1990 levels by 2020, a 30% statewide reduction, with mandatory caps beginning in 2012 for significant emissions sources. The bill also allows the Governor to suspend the emissions caps for up to a year in case of emergency or significant economic harm.
California leads the U.S. in energy efficiency standards and environmental protection, but it is also the world's 12th largest carbon emitter. Greenhouse gas emissions are defined in the bill to include all the following: carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons and perfluorocarbons. These are the same greenhouse gases listed in Annex A of the Kyoto Protocol.
Background The global community recognized the climate trends most recently at the 21st yearly session of the Conference of Parties (COP 21) in Paris, where a universal commitment to reduce average "global temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels".
Climate science dictates that global warming of more than 2 °C would have serious consequences, beyond those already being experienced, such as an increase in the number of extreme climate events. In order to avoid a global average surface temperature increase of 2 °C, global GHG emissions need to be reduced by 40–70% by 2050 and carbon neutrality (i.e. zero emissions) needs to be reached by the end of the century at the latest.
The United States pledged at the Paris COP 21, "to achieve an economy-wide target of reducing its greenhouse gas emissions by 26–28% below its 2005 level in 2025 and to make best efforts to reduce its emissions by 28%". Prior to the Paris agreements, which have not domestically been ratified by a two-thirds Senate vote, the US did not have any binding national GHG reduction targets.
Requirements AB 32 includes several specific requirements of the California Air Resources Board: Prepare and approve a scoping plan to achieve the maximum feasible and cost-effective reductions in greenhouse gas sources or categories by 2020. The scoping plan, approved by the ARB Board December 12, 2008, provides the outline for actions to reduce greenhouse gases in California. The approved scoping plan indicates how these emission reductions will be achieved from significant greenhouse gas sources via regulations, market mechanisms and other actions. Identify the statewide level of greenhouse gas emissions in 1990 to serve as the emissions limit to be achieved by 2020. In December 2007, the Board approved the 2020 emission limit of 427 million metric tons of carbon dioxide equivalent of greenhouse gases, however this limit was later revised to 431 million metric tons using updated methods that had been outlined in the IPCC Fourth Assessment Report. Adopt a regulation requiring the mandatory reporting of greenhouse gas emissions. In December 2007, the Board adopted a regulation requiring the largest industrial sources to report and verify their greenhouse gas emissions. The reporting regulation serves as a solid foundation to determine greenhouse gas emissions and track future changes in emission levels. In 2011, the Board adopted the cap-and-trade regulation. The cap-and-trade program covers major sources of GHG emissions in the State such as refineries, power plants, industrial facilities, and transportation fuels. The cap-and-trade program includes an enforceable emissions cap that will decline over time. The State will distribute allowances, which are trad-able permits, equal to the emissions allowed under the cap. Sources under the cap will need to surrender allowances and offsets equal to their emissions at the end of each compliance period. Identify and adopt regulations for discrete early actions that could be enforceable on or before January 1, 2010. The Board identified nine discrete early action measures including regulations affecting landfills, motor vehicle fuels, refrigerants in cars, tire pressure, port operations and other sources in 2007 that included ship electrification at ports and reduction of high GWP gases in consumer products. Ensure early voluntary reductions receive appropriate credit in the implementation of AB 32 Convene an Environmental Justice Advisory Committee (EJAC) to advise the Board in developing the Scoping Plan and any other pertinent matter in implementing AB 32. The EJAC has met 12 times since early 2007, providing comments on the proposed early action measures and the development of the scoping plan, and submitted its comments and recommendations on the scoping plan in October 2008. ARB will continue to work with the EJAC as AB 32 is implemented. Appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to provide recommendations for technologies, research and greenhouse gas emission reduction measures. After a year-long public process, the ETAAC submitted a report of their recommendations to the Board in February 2008. The ETAAC also reviewed and provided comments on the scoping plan.
Timeline AB 32 stipulates the following timeline: By Jan 1, 2009 ARB adopts plan indicating how emission reductions will be achieved from significant sources of GHGs via regulations, market mechanisms and other actions During 2009 ARB staff drafts rule language to implement its plan and holds a series of public workshop on each measure (including market mechanisms) By Jan 1, 2010 Early action measures take effect During 2010 ARB conducts series of rulemakings, after workshops and public hearings, to adopt GHG regulations including rules governing market mechanisms By Jan 1, 2011 ARB completes major rulemakings for reducing GHGs including market mechanisms. ARB may revise the rules and adopt new ones after 1/1/2011 in furtherance of the 2020 cap By Jan 1, 2012 GHG rules and market mechanisms adopted by ARB take effect and are legally enforceable 2013/2014 Schedule ARB plans to update the AB 32 Scoping Plan. The AB 32 Scoping Plan update will identify specific actions needed to reach the 2020 goal as well as lay the foundation to reach post- 2020 goals. December 31, 2020 Deadline for achieving 2020 GHG emissions cap. In late-January 2014, ARB plans to release the draft proposed Scoping Plan Update and Environmental Assessment. In February 2014, ARB will have a Board meeting discussion that will include additional opportunities for stakeholder feedback and public comment. In Spring 2014, ARB will hold a Board Hearing to consider the Final Scoping Plan Update and Environmental Assessment.
As of August 2016, AB 32 continues to be built upon. On September 9, Governor Jerry Brown strengthened the commitment to AB 32 by signing SB 32 by Sen. Fran Pavley (D-Agoura Hills) and AB 197 by Assembly member Eduardo Garcia (D-Coachella). This legally enshrined the goal outlined by Executive Order B-30-15, to reduce the state's greenhouse gas emissions 40% below 1990 levels by 2030. On July 17, 2017, both houses of the California State Legislature pass AB 398 with a two-thirds majority vote, which authorizes the California Air Resources Board to operate a cap-and-trade system to achieve these reductions.
Achievements
December 2007 ARB approves a limit of 427 million metric tons of carbon dioxide equivalent (MMTCO2E) of greenhouse gas emissions in 2020 December 2007 ARB adopts a regulation requiring the largest industrial sources to report and verify their greenhouse gas emissions. February 2008 ARB approves a policy statement encouraging voluntary early actions for emissions reductions and establishing a procedure for project proponents to submit quantification methods to be evaluated by ARB. December 12, 2008 Scoping plan approved and adopted by ARB, providing an outline of actions to reduce greenhouse gas emissions from significant sources in California via regulations, market mechanisms and other actions. January 2009 ARB adopts plan indicating how emission reductions will be achieved from significant sources of GHGs via regulations, market mechanisms and other actions. During 2009 ARB staff drafts rule language to implement its plan and holds a series of public workshop on each measure (including market mechanisms). January 1, 2010 Early Action measures take effect. During 2010 ARB conducts series of rulemakings, after workshops and public hearings, to adopt GHG regulations including rules governing market mechanisms. January 1, 2011 ARB completes major rulemakings for reducing Greenhouse Gases, including market mechanisms. January 1, 2012 Greenhouse Gas rules and market mechanisms adopted by ARB take effect and are legally enforceable. October 2013 CARB and the Quebec Ministry of Sustainable Development, Environment, Wildlife, and Parks officially linked their greenhouse gas cap-and-trade programs. As a result, greenhouse gas emission allowances from California and Quebec will be interchangeable for compliance purposes starting on January 1, 2014. California and Quebec's link represents the first multi-sector cap-and-trade program linkage in North America.
To date, ARB has identified nine discrete early action measures to reduce greenhouse gas emissions, including regulations affecting landfills, motor vehicle fuels, refrigerants in cars, tire pressure, port operations and other sources. Regulatory development for additional measures is ongoing.
The Environmental Justice Advisory Committee (EJAC) has met 12 times since early 2007 and submitted comments and recommendations on the scoping plan in October 2008. The Economic and Technology Advancement Advisory Committee (ETAAC) submitted a report of their recommendations to the Board in February 2008. The ETAAC also reviewed and provided comments on the scoping plan.
In June 2013, ARB held a kickoff public workshop in Sacramento to discuss the development of the Scoping Plan Update, public process, and overall schedule. In July 2013, subsequent regional workshops were held in Diamond Bar; Fresno; and the Bay Area, which provided forums to discuss region-specific issues, concerns, and priorities.
Strategies Cap-and-Trade Program: Firm limit on total greenhouse gas emissions. Covers 85% of all emissions statewide; includes participation in the Western Climate Initiative Electricity and Energy: Improved appliance efficiency standards and other energy efficiency measures; goal is for 33% of energy to come from renewable sources by 2020; High Global Warming Potential Gases: reduce emissions and use of refrigerants and certain other gases that have much higher impact, per molecule than carbon dioxide Agriculture: more efficient agricultural equipment, fuel use and water use