The regulatory context for Climate Change Policy Making

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Climate change protection policies and programs are sprouting everywhere from local and state levels to regional and national levels as more and more governments are taking aggressive steps to combat global climate change. Below are examples of some of the new, key efforts that are being initiated on various state, regional, national levels and beyond to address this issue.

State Level

For an overview of State level activities EPA has created a summary of California's many programs and initiatives. Critical regulatory issues are outlined below.

AB 32

Assembly Bill 32, also known as the California Global Warming Solutions Act of 2006, mandates that the state's greenhouse gas (GHG) emissions be reduced to 1990 levels by 2020, a 25% reduction under business as usual estimates.  AB 32 directs the California Air Resources Board (CARB) to develop appropriate regulations to achieving the above GHG reduction target and to establish a mandatory reporting system to track and monitor GHG emissions levels. Although CARB is leading the process, it is currently doing so through the extensive collaboration of other agencies[1]

As of the end of 2007, CARB has completed the State's 1990 GHG emissions baseline inventory, which is reported to be 427 metric tons of carbon dioxide equivalent (MMTCO2e). In order to meet its 2020 target goal, the total amount of GHG emissions that is needed to be reduced is estimated to be 169 MMTCO2e[2]. Additionally, to meet California's long-range goal, reflected in Executive Order S-3-05, which requires an 80% reduction of GHG from 1990 levels by 2050, a total of 341 MMTCO2e from the 1990 level need to be reduced.

California’s GHG Emissions Target Reduction

Source: California Air Resources Board

In addition to the 1990 GHG emissions inventory, CARB has also developed a mandatory reporting guideline of GHG emissions for major GHG emitters (e.g. utilities, cement producers, etc.) as mandated by AB 32[3].

CARB has also identified 44 early action measures that will work toward meeting its 2020 reduction target[4]. The spectrum of these recommended strategies include a Low Carbon Fuel Standard, regulations for refrigerants with high global warming potentials, guidance and protocols for local governments to facilitate GHG reductions, and green ports.

These 44 recommended early action strategies is reported to potentially reduce GHG emissions by at least 42 MMTCO2e by 2020, representing about 25% of the estimated reductions needed by 2020.

AB 32 Timeline

Source: California Air Resources Board

Proposed AB 32 Scoping Plan

CARB released its Proposed Scoping Plan in October 2008. This Proposed Scoping Plan details a comprehensive set of preliminary recommendations/actions designed to reduce overall GHG emissions in California to meet goals of AB 32.[1] The Plan also provides a vision for California’s long-term voluntary goal of reducing 80% of GHG emissions below 1990 levels by 2050, a mandate reflected in Executive Order S-3-05 [5].

The preliminary recommendations represent a mix of strategies that combine market mechanisms, regulations, voluntary measures, fees, and other programs to reduce GHG emissions. Additionally, many of the proposed measures build on highly successful long-standing practices in California, such as energy efficiency and renewable energy.

 Key elements of ARB’s preliminary recommendations include: 

• Expansion and strengthening of existing energy efficiency programs and building and appliance standards;
• Expansion of the Renewables Portfolio Standard to 33%;
• Development of a California cap-and-trade program that links with other Western Climate Initiative (WCI) Partner programs to create a regional market system [6];
• Establishment of targets for transportation-related GHG emissions for regions throughout California and pursuit of policies and incentives to achieve those targets;
• Implementation of existing State laws and policies, including California’s clean car standards, goods movement measures, and the Low Carbon Fuel Standard;
• Targeted fees, including a public goods charge on water use, feed on high global warming potential gases, and fee to fund the State’s long-term commitment to AB 32 administration. 

The table below details the complete list of recommended measures:

Source: California Air Resources Board

Economy, Environment, and Public Health Evaluations

In addition to providing proposed recommendations, ARB has also conducted economic modeling and evaluation of related public health and environmental benefits of those measures. 

For Californian households and businesses, energy efficiency represents one of the key elements to reducing emissions while increasing cost savings, which can then be reinvested into the California economy. Addressing climate change will also provide a strong incentive for investment in California, particularly for venture capitalists in green technologies. In turn, these investments in building a new clean tech sector will also translate directly in jobs growth. 

The economic analysis of the Plan indicates that in general implementation of the recommended measures will help create jobs and help to save individual households and businesses money. Specifically, the Plan indicates that projected economic benefits in 2020 compared to the business-as-usual scenario include: 

• Increased economic production of $33 billion
• Increased overall gross state product of $7 illion
• Increased overall personal income by $16 billion
• Increased per capita income of $200
• Increased jobs by more than 100,000
• Annual savings of between $400 and $500 on average for households, including low-income households
• Decrease in overall energy expenditures for businesses

Additionally, the Plan is projected to provide a wide range of public health and environmental benefits as a result of reducing GHG emissions. Analysis indicates that implementing the recommended strategies in the Plan will result in a reduction of 15 tons per day of combustion-generated soot and 61 tons per day of oxides of nitrogen. These reductions in harmful air pollution is projected to result in the following public health protection and improvements: 

• An estimated 400 premature deaths statewide will be avoided
• Almost 11,000 incidences of asthma and lowers respiratory symptoms will be avoided
• 67,000 work loss days will be avoided

Local Governments

Although not quantified at this time, actions taken by local governments are expected to provide significant GHG reductions that ARB will track and account for as the Proposed Scoping Plan is implemented. 

ARB, along with relevant State agencies, has begun working with various entities to develop measurement and tracking protocols, planning tools and best practices to assist local governments in planning for, quantifying and reporting GHG emissions reductions. For example, in partnership with CCAR, ICLEI, and The Climate Registry, ARB recently adopted the Local Government Operations Protocol to provide local governments guidance on how to inventory and report their GHG emissions. 

Using these tools, ARB encourages local governments to adopt reduction goals for municipal operations emissions and move toward establishing similar goals for community emissions that parallel the State commitment. Specifically, ARB recommends a GHG reduction goal for local governments pf 15% below today’s levels by 2020. To consolidate climate action resources and aid local governments in their emissions reduction efforts, ARB is developing various tools and guidance for use by local governments, including the next generation of best practices, case studies, a calculator to help calculate local GHG emissions, and other decision support tools.

Next Steps

The Proposed Scoping Plan will be brought to the Board for consideration at its meeting in December 2008. The measures in the Proposed Scoping Plan adopted by the Board will be developed over the next three years and be in place by 2012. 

CEQA and Climate Change

The passage of AB 32, has begun a series of important events to change many of the core operations within the state so that the goals set out by the new bill and those mandates that will be defined in the Scoping Plan later this year will be met. This is definitely the case for the California Environmental Quality Act (CEQA).

Although CEQA does not currently explicitly require a project to assess its impacts on climate change and incorporate mitigation strategies to reduce such impacts, environmental groups and other entities throughout the state are stressing the importance and the necessity of doing so. As a matter of fact, a recent landmark case settlement has taken the issue of addressing climate change impacts in CEQA to a whole new level.

Last year, California’s Attorney General Jerry Brown announced a historical settlement of a controversial CEQA lawsuit that he brought against San Bernardino County for failing to incorporate climate change assessment into the County’s Environmental Impact Assessment Report as part of their General Plan update process. The settlement requires the County to undertake both current and historic greenhouse gas (GHG) emissions inventories, estimate projections of those GHG emissions, and develop strategies for reducing emissions.

This lawsuit is significant in that it is the first to ever challenge a CEQA environmental review document based on global warming claims. Additionally, although it does not create a legal requirement to do so, this settlement may have as important influence in pushing all local governments and agencies within California to incorporate climate change assessment in CEQA documents in the future. For more information on the settlement, go to: http://www.mondaq.com/article.asp?articleid=51686.

Because of the significance of the issue of addressing climate change in CEQA documents, organizations have begun to research how exactly local governments and agencies can go about doing this. For instance, the California Air Pollution Officers Associations (CAPCOA) released a resource guide early this year to support and help local governments as they develop their programs and policies around climate change issues. The guide contains an organized review of available tools and models for evaluating GHG emissions and an overview of strategies for mitigating potentially significant GHG emissions from projects.

This June in recognition the strong links between Climate Change and CEQA, particularly how "general scientific consensus and increasing public awareness regarding global warming and climate change have placed new focus on the California Environmental Quality Act (CEQA) review process as a means to address the effects of greenhouse gas (GHG) emissions from proposed projects on climate change," the California Governor's Office of Planning and Research (OPR) released a technical advisory on CEQA and Climate Change in an effort to "provide informal guidance regarding the steps lead agencies should take to address climate change in their CEQA documents." This informal guidance will be replaced by "amendments to the Guidelines implementing the California Environmental Quality Act ("CEQA Guidelines"), on or before January 1, 2010, pursuant to Senate Bill 97 (Dutton, 2007). These new CEQA Guidelines will provide regulatory guidance on the analysis and mitigation of GHG emissions in CEQA documents."

Recent news: The Attorney General's Office has just reached another settlement regarding general plan updates that do not address climate change. This time it's with the city of Stockton who among other things has agreed to develop a Climate Action Plan.

CARB-ICLEI-CCAR-TCR’s New Partnership

• Local Government Operations Protocol:
  Guidance on conducting a GHG emissions inventory from government facilities, government fleet vehicles, wastewater treatment and potable water treatment facilities, landfill and composting facilities, and other operations. (see here for more information on the protocol)
• Community-Wide Protocol:
  Guideline for conducting a GHG emissions inventory on community-wide emissions such as residential, commercial and industrial use of energy, transportation, industrial emissions, etc.
• Project specific protocols:
  GHG emissions inventory guidelines on wastewater treatment plants, landfills, urban forestry, and green building are being considered.

These protocols will combine and weave elements from existing GHG emissions inventory methodologies that have already been developed by CCAR, ICLEI, TCR, WRI/WBCSD, and ISO 14064. Because of continually emerging scientific data and advancement in technology, these protocols will be frequently updated with the most updated information that becomes available.

The local government protocol is projected to be completed by August of 2008. The community-wide emissions development is planned to be completed be the end of 2008.

NEW: California Green Building Codes Adopted

"The California Building Standards Commission adopted a green building code yesterday [July 17, 2008] for all new construction statewide as part of a rules package that policymakers said was the first of its kind in the nation.

Adherence to the California Green Building Standards Code [PDF], which takes effect in 180 days, will be voluntary until 2010, when its provisions are expected to become mandatory, commission leaders said. The voluntary period gives builders, local governments and communities time to adapt to the new rules, the commission said.

The code sets targets for energy efficiency, water consumption, dual plumbing systems for potable and recyclable water, diversion of construction waste from landfills and use of environmentally sensitive materials in construction and design, including eco-friendly flooring, carpeting, paint, coatings, thermal insulation and acoustical wall and ceiling panels."

click here for the complete article including a copy of the codes

Regional Level

Western Climate Initiative (WCI)

Launched in February 2007, WCI started off as a collaboration between the governors of the western states of the U.S. - California, New Mexico, Arizona, Oregon, and Washington – with the main goal of developing regional strategies to address global climate change. As of May 2008, WCI has a total of 25 members (including observer states) from the U.S., Canada, and Mexico.

WCI’s three main objectives are to:

1. Set a regional GHG emissions reduction goal that is consistent with each of the partners’ goals. (A regional goal of 15% below 2005 by 2020 was established in August 2007.);
2. Design a market-based mechanism to meet the reduction goal, which has been determined to be a cap-and-trade program for the region (The design of the cap-and-trade system is currently being developed. A final version will be released in August 2008.); and
3. Participate in The Climate Registry.

WCI is not alone in its efforts to implement a cap-and-trade system as one of the key ways to reduce GHG emissions. As a matter of fact, other regions in the U.S. are also in the midst of designing and implementing a cap-and-trade system, most notably the Regional Greenhouse Gas Initiative (RGGI), which represents 11 states (including one observer state) in the Northeast U.S. and the Midwest Greenhouse Gas Reduction Accord (MGGRA), representing seven U.S. states and Canadian providences. Whether these regional networks will join forces and enable trading among their members still remains to be seen.

National and Beyond

The Climate Registry (TCR)

Incorporated in March 2007, TCR is a nonprofit organization whose objective is to provide a standardized general protocol for GHG emissions inventory for the entire North America. As of March 2008, a total of 55 U.S. states, Canadian provinces, Mexican states, and Indian tribes have joined TCR. Working closely with CCAR, TCR recently finalized the development of its General Reporting Protocol for GHG emissions inventory . Some of TCR’s members have adopted or are in the process of adopting mandatory reporting requirements, either individually or as part of regional GHG reduction programs. TCR is working closely with CARB, CCAR and ICLEI in developing a suite of standardized GHG emissions inventory protocols for local government, community-wide, and project specific sectors.