Welcome to the California Climate change Portal

Assembly Bill 32 - The Global Warming Solutions Act of 2006

Assembly Bill 32 (PDF file) (formally called the California Global Warming Solutions Act of 2006) was authored by Assembly Speaker Fabian Núñez, and was codified in the Statutes of 2006 as Chapter 488.

It establishes the first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases (GHG). The Act continues the existing Climate Action Team to coordinate statewide efforts, and makes the California Air Resources Board (ARB) responsible for monitoring and reducing GHG emissions. The Act authorizes the Governor to invoke a safety valve in the event of extraordinary circumstances, catastrophic events, or the threat of significant economic harm, for up to 12 months at a time.

The state's GHG reduction strategies focus on some specific areas to reach the 2020 emissions level goal of 427 million metric tons of CO2:

Graph showing the reduction strategies and amount CO2 reduced

The Act also sets some specific tasks for the Air Resources Board (ARB):

  • Establish a statewide GHG emissions cap for 2020, based on 1990 emissions by January 1, 2008.
  • Adopt mandatory reporting rules for significant sources of greenhouse gases by January 1, 2008.
  • Adopt a list of discrete, early action measures by July 1, 2007, that can be implemented before January 1, 2010 and adopt such measures.
  • Adopt a plan by January 1, 2009, indicating how emission reductions will be achieved from significant GHG sources via regulations, market mechanisms and other actions.
  • Adopt regulations by January 1, 2011, to achieve the maximum technologically feasible and cost-effective reductions in GHGs, including provisions for using both market mechanisms and alternative compliance mechanisms.
  • Convene an Environmental Justice Advisory Committee and an Economic and Technology Advancement Advisory Committee to advise ARB.
  • Ensure public notice and opportunity for comment for all actions.
  • Prior to imposing any mandates or authorizing market mechanisms, requires ARB to evaluate several factors, including but not limited to: impacts on California's economy, the environment, and public health; equity between regulated entities; electricity reliability, conformance with other environmental laws, and to ensure that the rules do not disproportionately impact low-income communities.

For current activities and meetings for the AB 32 Scoping Plan, please visit the Air Resources Board's website.


Return to Top

Transportation Emission Reductions

Transportation contributes 39% of California's gross GHG emissions. So targeting that sector is one of the key elements in the state's efforts. The state's multi-pronged attack on lower emissions from transportation focus on working with Congress to allow California to set its own vehicle efficiency and mileage standards, set lower the levels of carbon in transportaiton fuels, transition the state from gasoline and diesel to cleaner-burning alternative and renewable fuels, and

Low-Carbon Fuel Standards

In the January 2007 State of the State Governor Schwarzenegger asserted California's leadership in clean energy and environmental policy by establishing a Low-Carbon Fuel Standard (LCFS) by Executive Order. The Executive Order on transportation fuels requires fuel providers reduce the carbon intensity of transportation fuels sold in California. This standard firmly establishes sustainable demand for lower-carbon fuels without favoring one fuel over another. To start, the standard will reduce the carbon intensity of California's passenger vehicle fuels by at least 10 percent by 2020 and more thereafter. This first-in-the-world greenhouse gas (GHG) standard for transportation fuels will spark research in alternatives to oil and reduce GHG emissions.

The Governor's Executive Order directs the Secretary for Environmental Protection to coordinate the actions of the California Energy Commission, the California Air Resources Board (ARB), the University of California and other agencies to develop the protocols for measuring the "life-cycle carbon intensity" of transportation fuels. This analysis will become part of the State Implementation Plan for alternative fuels as required by AB 1007 (Pavley, Chapter 371, Statutes of 2005) and will be submitted to ARB for consideration as an "early action" item under AB 32. The ARB will complete its review of the LCFS protocols for adoption as an early action no later than June 2007. Upon adoption as an "early action" by the ARB, the regulatory process at ARB will begin to put the new standard into effect. It is expected that the regulatory process at ARB to implement the new standard will be completed no later than December 2008.

The Executive Order States:

5. The process for meeting the 2020 Target shall be as follows:

  1. The Secretary of the California Environmental Protection Agency shall coordinate activities between the University of California, the California Energy Commission, and other agencies as required to develop and propose by June 30, 2007, a draft compliance schedule to meet the 2020 Target.
  2. The Energy Commission shall incorporate as appropriate the LCFS draft compliance schedule into the State Alternative Fuels Plan (SAFP) per AB 1007 (Chapter 371, Statutes of 2005), and upon adoption shall submit the SAFP to the ARB for consideration.
  3. Upon submission of the SAFP, the ARB shall consider initiating a regulatory proceeding to establish and implement the LCFS.

For more information, please see: www.energy.ca.gov/low_carbon_fuel_standard/


Alternative and Renewable Fuel & Vehicle Technology Program

Assembly Bill 118 (Núñez, Chapter 750, Statutes of 2007) created the Alternative and Renewable Fuel and Vehicle Technology Program to be administered by the California Energy Commission. AB 118 authorizes the Energy Commission to spend approximately $120 million annually to award as grants, revolving loans, loan guarantees, and other appropriate measures to qualified entities to develop and deploy innovative fuel and vehicle technologies that will help attain the state's alternative fuel use and petroleum reduction goals in a manner consistent with climate change policies, without adopting or advocating any one preferred fuel or technology.

Projects eligible for funding shall include the following, but shall not include projects required to be undertaken pursuant to state or federal law or district rules or regulations:

  • Alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels
  • Demonstration and deployment projects that optimize alternative and renewable fuels for existing and developing engine technologies
  • Projects to produce alternative and renewable low-carbon fuels in California
  • Projects to decrease the overall impact of an alternative and renewable fuel's life-cycle carbon footprint and increase sustainability
  • Alternative and renewable fuel infrastructure, fueling stations, and equipment
  • Projects to develop and improve light-, medium-, and heavy-duty vehicle technologies that provide for better fuel efficiency and lower greenhouse gas emissions, alternative fuel usage and storage, or emission reductions
  • Programs and projects that accelerate the commercialization of vehicles and alternative and renewable fuels including buy-down programs through near-market and market-path deployments, advanced technology warranty or replacement insurance, development of market niches, and supply-chain development
  • Program and projects to retrofit medium-and heavy-duty on-road and non-road vehicle fleets with technologies that create higher fuel efficiencies, including alternative and renewable fuel vehicles and technologies, idle management technology, and aerodynamic retrofits that decrease fuel consumption
  • Infrastructure projects that promote alternative and renewable fuel infrastructure development connected with existing fleets, public transit, and existing transportation corridors
  • Workforce training programs related to alternative and renewable fuel feedstock production and extraction, renewable fuel production, distribution, transport, and storage, high-performance and low-emission vehicle technology and high tower electronics, automotive computer systems, mass transit fleet conversion, servicing, and maintenance, and other sectors or occupations related to the purpose of the Program
  • Block grants administered by not-for-profit technology consortia for multiple projects, education and Program promotion within California, and development of alternative and renewable fuel and vehicle technology centers.

AB 118 also directs the Energy Commission to create an advisory body to help develop an Investment Plan. The Investment Plan will establish priorities and opportunities for the Program, and describe how funding will complement existing public and private investments, including existing state programs. The Investment Plan will be updated annually.

The Energy Commission has opened a rulemaking proceeding (Docket # 08-OIR-1) that will consider, but not be limited to, adopting regulations and other provisions necessary for the administration of Program. Funding through the Program will be available only after regulations have been completed and published by the Secretary of State.

Return to Top

Electricity and Natural Gas Emission Reductions

Electricity production (both in-state and imported) contributes about 28% of the gross GHG emissions. Energy efficiency and renewable energy are essential for reducing those emissions and meeting AB 32 goals.

It is feasible to achieve 100% cost-effective energy efficiency through a combination of building and appliance standards, traditional utility programs, and new strategies and technologies delivered through local governments, community organizations, and the private sector. A goal of having 33% of electricity production from renewable resources by 2020 target is achievable with focused and coordinated support. Changes are needed to:

  • Streamline planning and permitting processes
  • Expand and upgrade the transmission grid and distribution system
  • Redesign the market price referent system - move to expanded use of feed-in tariffs (fixed price)

Renewable Energy

Renewable resources currently provides about 11% of the state's electricity (geothermal: 4.7%, biomass: 2.1%, small hydro: 2.1%, wind: 1.8%, solar: 0.2%). Electricity from large hydroelectric projects is 19% in 2006, but large hydro is not considered in the resource mix and goals.

State law requires that the percentage of electricity from renewables will increase from 11% to 20% by 2010, with the overall goal of 33% renewables by 2020.


Power Plant Emission Standards

The California Energy Commission and the California Public Utilities Commission (CPUC) have been holding joint proceedings to develop GHG reduction guidelines for the electricity and natural gas sectors. In 2007, the ARB adopted mandatory reporting guidelines and 1990 emissions baseline based on recommendations from the Energy Commission & CPUC. In 2008, the Energy Commission and CPUC will be recommending to ARB electricity and natural gas program design. The Energy Commission is establishing GHG emission performance standard for baseload generation (SB 1368) for municipal utilities and load-serving entities. While the CPUC handles regulatory functions for the investor-owned utilities.

The Energy Commission-CPUC joint proceeding on interim GHG policy decision recommendations for the electricity and natural gas sectors to CARB will lay out who is responsible for compliance and:

  • Quantify emissions reductions at what cost and impact on electricity provider.
  • Decisions will be made in March and August of 2008.
    • March decision recommends mix of program measures and markets, point of regulation and allocation principles. Approach will achieve real GHG reductions at least cost to California consumers
    • August decision will address allocation of costs and benefits, ratepayer costs, and cost effectiveness of measures

The EnergyCommission-CPUC recommendations will be sent to the ARB, which must adopt the Scoping Plan by January 1, 2009. Additionally, the Energy Commission is working with the Western Climate Initiative's working groups to design regional cap-and-trade program by August 2008.

Return to Top

Building & Appliance Energy Efficiency Standards

The Energy Commission is also focussing on increasing efficiency standards for both appliances and buildings. The Energy Commission has regulatory authority over these areas.

The current Title 24, Building Energy Efficiency Standards went into effect in late 2005. They are updated every three years. Adoption by the Energy Commission of the 2008 Standards is expected in April 2008. The standards then must be approved by the California Building Commission before becoming effective. Assembly Bill 1560 clarifies authority for water energy savings in building standards, and water efficiency will be a key component in future standards.

The Energy Commission also sets appliance energy efficiency standards. The 2005 standards went into effect in stage between 2006-2008. New standards rulemkaing is in progress and include:

  • New lighting standards in response to AB 1109
  • Will cover consumer electronics (televisions) and battery chargers
  • Federal preemption limits state authority
  • AB 662 directs the Energy Commission to include water efficiency and conservation standards in future appliance standards
Return to Top

Land-Use, Forestry & Urban Forests, and Etc.

Information to come.

Return to Top

Other State Activites

Information to come.

Return to Top

AB 32 Timeline

  • By July 1, 2007: The State Air Resources Board (ARB) forms Environmental Justice and Economic & Technology Advancement advisory committees.
  • By July 1, 2007: ARB adopts list of discrete early action measures that can be adopted and implemented before January 1, 2010.
  • By Jan 1, 2008: ARB adopts regulations for mandatory greenhouse gas (GHG) emissions reporting. ARB defines 1990 emissions baseline for California (including emissions from imported power) and adopts that as the 2020 statewide cap.
  • 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.
  • Dec 31, 2020: Deadline for achieving 2020 GHG emissions cap.

Return to Top