The passage of AB 32, the California Global Warming Solutions Act of 2006, marked a watershed moment in California’s history. By requiring in law a sharp reduction of greenhouse gas (GHG) emissions, California set the stage for its transition to a sustainable, low-carbon future. AB 32 was the first program in the country to take a comprehensive, long-term approach to addressing climate change, and does so in a way that aims to improve the environment and natural resources while maintaining a robust economy. Show
What Does AB 32 Do?AB 32 requires California to reduce its GHG emissions to 1990 levels by 2020 — a reduction of approximately 15 percent below emissions expected under a “business as usual” scenario. Pursuant to AB 32, CARB must adopt regulations to achieve the maximum technologically feasible and cost-effective GHG emission reductions. The full implementation of AB 32 will help mitigate risks associated with climate change, while improving energy efficiency, expanding the use of renewable energy resources, cleaner transportation, and reducing waste. Why is AB 32 Needed?According to leading climate scientists from around the world, anthropogenic climate change (that caused by humans) is a significant and growing problem that must be addressed in order to avoid the worst effects. Climate change is the result of various GHGs that are emitted into the atmosphere, such as carbon dioxide (CO2) and methane (CH4), which have a heat forcing effect on the atmosphere. Sharp rises of GHGs over the last century and a half have led to higher overall worldwide temperatures, reduced snowpack in the higher elevations, greater fluctuations of temperature and precipitation, global sea level rise and more frequent and severe extreme weather events, including hurricanes, heatwaves and droughts. AB 32 describes the problem for California:
Separate from AB 32, the State of California is also making efforts to adapt to a changing climate. The State’s climate change adaptation efforts are being led by the Natural Resources Agency. What Gases or Compounds are Covered Under AB 32?AB 32 includes the major GHGs and groups of GHGs that are being emitted into the atmosphere. These gases include:
*Nitrogen trifluoride was not listed initially in AB 32 but was subsequently added to the list via legislation. Other compounds, including some aerosols, can also have a strong heat forcing effect on the atmosphere. This includes black carbon, comprised of microscopic particles which are emitted from incomplete combustion of biomass and fossil fuels. Reducing black carbon and other so-called short-lived climate pollutants (methane, tropospheric ozone and some hydrofluorocarbons) will help us slow the acceleration of climate change sooner than by reducing emissions of other GHGs alone. It will also improve public health, and will be an important element of California’s climate change program strategy. CARB annually updates a statewide GHG inventory. The inventory includes estimates of GHGs emitted to the atmosphere by human activities in California. How Will AB 32 Goals be Met?AB 32 requires CARB to develop a Scoping Plan which lays out California’s strategy for meeting the goals. The Scoping Plan must be updated every five years. In December 2008, the Board approved the initial Scoping Plan, which included a suite of measures to sharply cut GHG emissions. In May 2014, CARB approved the First Update to the Climate Change Scoping Plan (Update), which builds upon the initial Scoping Plan with new strategies and recommendations. The Update highlights California’s progress toward meeting the near-term 2020 GHG emission reduction goals, highlights the latest climate change science and provides direction on how to achieve long-term emission reduction goal described in Executive Order S-3-05. Reductions in GHG emissions will come from virtually all sectors of the economy and will be accomplished from a combination of policies, planning, direct regulations, market approaches, incentives and voluntary efforts. These efforts target GHG emission reductions from cars and trucks, electricity production, fuels, and other sources. The status of these efforts can be found in Appendix B of the Update. Who is Implementing AB 32?AB 32 directs the California Air Resources Board (CARB) to be the lead agency to implement the law. The Climate Action Team, made up of relevant state agencies, is charged with helping direct state efforts on the reduction of GHG emissions and engaging state agencies. The Climate Action Team includes:
How is the Implementation of AB 32 Funded?AB 32 authorizes the collection of a fee from sources of GHGs. In 2010, CARB adopted a regulation to collect a fee to administer the program, called the AB 32 Cost of Implementation Fee Regulation. This fee is collected annually from large sources of GHGs, including oil refineries, electricity power plants (including imported electricity), cement plants and other industrial sources. There are approximately 250 fee payers that emit 330 million metric tons of GHG emissions per year. Funds collected are used to cover annual expenses for CARB and other State agencies to implement AB 32. Are there Other Funds Used to Reduce GHG Emissions in California?Yes, in addition to California’s regulatory and market-based programs aimed at reducing GHG emissions, investments from various sources provide incentives for companies to reduce emissions. Combining strategic financial investments with policy support can accelerate market transitions to cleaner technologies. One important source of funding is the Greenhouse Gas Reduction Fund (GGRF), which will be used to fund a variety of projects that will provide long-term reductions in GHG emissions. Funding for the GGRF comes from auction proceeds that are part of CARB’s Cap-and-Trade program. As directed by legislation, CARB’s Investment Plan evaluates opportunities for GHG reductions and identifies priority investments in the state to help achieve emission goals and realize important co-benefits. More detailed information on funding for reducing GHG emissions in California can be found on the Cap-and-Trade Auction Proceeds webpage, and in the First Update to the Scoping Plan starting on page 104. What Are the Specific Requirements of AB 32?The requirements are that CARB shall do the following:
What Is the Timeline for Implementing AB 32?
What Other Key Bills and Policies in California Address Climate Change?Assembly Bills and Senate Bills:
Governor's Executive Orders:
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California workers benefited from all of the following progressive economic reforms except
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