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AB-2083 Industrial facilities’ heat application equipment and process emissions.(2023-2024)

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Date Published: 07/03/2024 09:00 PM
AB2083:v93#DOCUMENT

Amended  IN  Senate  July 03, 2024
Amended  IN  Senate  June 20, 2024
Amended  IN  Assembly  May 16, 2024
Amended  IN  Assembly  April 29, 2024
Amended  IN  Assembly  April 01, 2024
Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2083

Introduced by Assembly Member Berman
(Coauthors: Assembly Members Boerner, Friedman, Kalra, Muratsuchi, Ting, and Zbur)
(Coauthors: Senators Min and Stern)

February 05, 2024

An act to add Section 25403.1 to the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2083, as amended, Berman. Industrial facilities’ heat application equipment and process emissions.
The Warren-Alquist State Energy Resources Conservation and Development Act requires the State Energy Resources Conservation and Development Commission to adopt building design and construction standards and energy and water conservation standards for new residential and nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including energy associated with the use of water. The act requires those standards to be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice.
The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would require the commission, on or before July 1, 2026, to evaluate opportunities to increase electrification of industrial heat processes to meet the state’s industrial emissions reduction goals, as provided. The bill would, as part of its the state board’s next update to the scoping plan occurring on of or after January 1, 2025, require the state board to assess the potential for the state to reduce the emissions of greenhouse gases from the state’s industrial facilities’ heat application equipment and processes, as specified. The bill would require the state board to incorporate the commissions’ evaluation required by the bill into the assessment and to identify potential emission reductions associated with the recommendations provided in the commission’s evaluation.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) Chapter 249 of the Statutes of 2016 directs the state to achieve a reduction in the emissions of greenhouse gases of 40 percent below 1990 levels by 2030.
(2) Chapter 337 of the Statutes of 2022 directs the state to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, to achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045 statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the 1990 levels.
(3) Industrial emissions make up 23 percent of the emissions of greenhouse gases in California, the second largest source behind transportation.
(4) The federal Clean Air Act requires the state to reduce emissions of criteria air pollutants to achieve ambient air quality standards by applicable attainment dates, and the Health and Safety Code requires plans to achieve and maintain state air quality standards by the earliest practicable date.
(5) California is home to some of the worst air quality in the country, with the greater Los Angeles area maintaining the distinction as the smoggiest metropolitan area in the nation and the central valley Cities of Bakersfield and Visalia tied for the country’s worst year-round levels of fine particle pollution.
(6) Poor air quality is intimately linked with negative health impacts, including respiratory illness and premature deaths, with recent studies estimating air pollution as the cause of over 100,000 premature deaths in the United States in 2011.
(7) Reducing to zero the air quality emissions from all sources, including industrial sources, is vital to the health of all Californians, particularly those living in low-income communities of color.
(8) Decarbonizing California’s industrial facilities is essential to achieving the state’s greenhouse gas emission reduction goals and air quality goals at the lowest possible cost.
(9) California is a national leader in industrial production, and planning for and investing in industrial decarbonization can strengthen California industries globally and position the state for sustained economic growth.
(10) Advancements have been made in industrial-scale electrification technologies, including large-scale industrial heat pumps, indirect heating, and thermal energy storage.
(11) Many types of industrial processes rely on temperatures that can be readily achieved with existing zero-emission electric technology like heat pumps and electric boilers.
(b) It is the intent of the Legislature to achieve significant reductions in the emissions of greenhouse gases and criteria air pollutants by the state’s industrial stock by January 1, 2045.

SEC. 2.

 Section 25403.1 is added to the Public Resources Code, to read:

25403.1.
 (a) As part of its next update to the scoping plan developed pursuant to Section 38561 of the Health and Safety Code occurring on or after January 1, 2025, the State Air Resources Board, in consultation with the commission, the Public Utilities Commission, the Governor’s Office of Business and Economic Development, the California Workforce Development Board, and the Independent System Operator, shall assess the potential for the state to reduce the emissions of greenhouse gases from the state’s industrial facilities’ heat application equipment and processes consistent with the goals adopted by the State Air Resources Board pursuant to Section 38562.2 of the Health and Safety Code. The assessment shall include consideration of all of the following:
(1) An evaluation, based on the best available data and existing analyses, of the cost per metric ton of carbon dioxide equivalent and of the potential reduction from each subsector of industrial emission sources relative to other statewide greenhouse gas emissions reduction strategies.
(2) How to maximize reductions in emissions of criteria air pollutants in under-resourced communities, as defined in Section 71130, and meet applicable federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) deadlines in nonattainment areas.
(3) Strategies to reduce emissions of greenhouse gases from industrial heating in both new and existing industrial facilities, assessing which subsectors within the industrial sector have the greatest readiness for transition to zero-emission technologies.
(4) Strategies to reduce emissions of greenhouse gases from industrial heat processes and applications that also reduce or eliminate emissions of criteria air pollutants. pollutants, consistent with the State Air Resources Board’s duties under Sections 39003 and 39602 of the Health and Safety Code to coordinate efforts to attain and maintain ambient air quality standards.
(5) The opportunities and challenges associated with reducing the emissions of greenhouse gases through electrification of industrial heat processes, and the commensurate health benefits.
(6) The opportunities and challenges associated with reducing the emissions of greenhouse gases from high-heat processes.
(7) An analysis of the potential for, and opportunities associated with, facilitating and expanding businesses in California that manufacture zero-emission industrial technologies.
(b) The assessment conducted pursuant to subdivision (a) shall be limited to Manufacturing Sector Code 31–33 of the North American Industry Classification System (NAICS), excluding Subsector Code 324 (Petroleum and Coal Products Manufacturing).
(c) (1) On or before July 1, 2026, the commission shall evaluate opportunities to increase electrification of industrial heat processes to meet the state’s industrial emissions reduction goals. This evaluation shall include an analysis of each of the following:
(A) Opportunities to increase electrification of industrial heat processes through the deployment of fuel-switching technology, including, but no not limited to, industrial heat pumps and thermal energy storage devices.
(B) How demand response, distributed energy resources, energy efficiency, thermal energy storage, and other complementary resources and strategies may optimize industrial energy use to strengthen grid reliability and meet sector-wide sectorwide emission reduction goals.
(C) Potential load growth and rate impacts associated with a high-electrification scenario for industrial heat processes, including policies and strategies to ensure industrial access to low-cost, new clean energy generation.
(2) The State Air Resources Board shall incorporate the evaluation required pursuant to paragraph (1) into the assessment required by subdivision (a) and identify potential emission reductions associated with recommendations provided by the commission in the evaluation.