California Legislature Proposes Significant New Climate Change Bills

Taking a cue from Governor Brown’s State of the State address in January 2015 that focused on climate change and other environmental issues, California Democrat lawmakers have introduced several significant bills that aspire to reduce petroleum consumption, increase the use of renewable energy sources, increase energy efficiency in existing buildings and greatly reduce the State’s emission of greenhouse gases. Given that the Democrats control the state Senate and Assembly, and that the bills align closely with the Governor’s stated polices, this legislation has a strong chance of becoming law.

Senate Bill 32

S.B. 32, authored by California Senator Fran Pavley, proposes to amend Sections 38550 and 38551 of the Health and Safety Code to reduce statewide greenhouse gas emissions to 80% below 1990 levels by 2050. This bill is a follow-up to the California Global Warming Solutions Act of 2006 (also known as A.B. 32), which requires statewide greenhouse gas emissions to be reduced to 1990 levels by 2020. S.B. 32 also requires that state agencies adopt policies that encourage job growth, local economic benefits, public health benefits, particularly in disadvantaged communities, innovation in technology and energy, water, and resource management practices, and regional and international collaboration to adopt similar greenhouse gas emissions reduction policies.

Senate Bill 350

S.B. 350 (the Clean Energy and Pollution Reduction Act of 2015), authored by California Senator Kevin De León, proposes to amend numerous sections of the Health and Safety Code, Public Resources Code, and the Public Utilities Code. This wide-sweeping bill has three primary objectives:

1. To increase the procurement of electricity in the state from 33% renewable sources to 50% renewable sources by 2030.
2. To reduce the use of petroleum in cars and trucks by up to 50% by 2030.
3. To double the energy efficiency of buildings by 2030.

To achieve the increase in California’s renewable energy portfolio, the bill requires “retail sellers” of energy to obtain 50% of their electricity from renewable sources by December 31, 2030. Likewise, S.B. 350 grants authority to the California Air Resources Board to achieve the reduction in petroleum use through regulation of emissions standards, in-use performance standards and motor vehicle fuel specifications. Finally, the building energy efficiency goals would be implemented through a State Energy Resources Conservation and Development Commission program that requires greater energy efficiency in existing residential and non-residential buildings.

Senate Bill 185

S.B. 185 (the Public Divestiture of Thermal Coal Companies Act), introduced by California Senator Kevin De León, seeks to reduce emission of greenhouse gases from coal combustion, and thereby reduce California’s contribution to global climate change. Accordingly, the bill proposes to eliminate any investment in companies engaged in the combustion of coal (thermal coal companies) by public employee retirement funds. The bill would require public employee retirement funds to liquidate all assets in existing thermal coal companies, not make any new investments in such companies, and liquidate assets in a company within 18 months of that company meeting the definition of a thermal coal company.

Senate Bill 189

S.B. 189, introduced by California Senator Ben Hueso, proposes to create the “Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee.” The stated purpose of the bill is to “create a single independent blue ribbon committee to provide advice to” the State Air Resources Board, the State Energy Resources Conservation and Development Commission, the Public Utilities Commission and “other agencies on the most effective ways to maximize California’s economic benefits and jobs growth via actions and investments in a cleaner, low-carbon economy. The committee will consist of five members appointed by the Governor and subject to confirmation by the Senate, and one member each appointed by the Speaker of the Assembly and the Senate Rules Committee.

Mitchell Chadwick article by Chris Powell

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