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AB-1322 California Global Warming Solutions Act of 2006: aviation greenhouse gas emissions reduction plan.(2021-2022)



Current Version: 09/02/22 - Enrolled

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AB1322:v88#DOCUMENT

Enrolled  September 02, 2022
Passed  IN  Senate  August 29, 2022
Passed  IN  Assembly  August 31, 2022
Amended  IN  Senate  August 25, 2022
Amended  IN  Senate  August 11, 2022
Amended  IN  Senate  June 09, 2022
Amended  IN  Senate  April 25, 2022
Amended  IN  Senate  September 02, 2021
Amended  IN  Senate  June 21, 2021
Amended  IN  Assembly  May 04, 2021
Amended  IN  Assembly  April 19, 2021
Amended  IN  Assembly  April 05, 2021
Amended  IN  Assembly  March 22, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1322

Introduced by Assembly Members Robert Rivas and Muratsuchi

February 19, 2021

An act to add Sections 38569 and 38569.5 to the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 1322, Robert Rivas. California Global Warming Solutions Act of 2006: aviation greenhouse gas emissions reduction plan.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to consult with other states, the federal government, and other nations to identify the most effective strategies and methods to reduce greenhouse gases, manage greenhouse gas control programs, and facilitate the development of integrated and cost-effective regional, national, and international greenhouse gas reduction programs.
The act also requires the state board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions to ensure that the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030.
This bill would require the state board, on or before July 1, 2024, to develop a plan, consistent with federal law, to reduce aviation greenhouse gas emissions and help the state reach its goal of net-zero greenhouse gas emissions by 2045, including a sustainable fuels target for the aviation sector of at least 20% by 2030. Contingent upon an appropriation, the bill would require the state board, on or before July 1, 2024, to commence implementation of the plan to achieve these goals.
This bill would require the state board, in developing the plan, to, among other things, closely examine the shortfalls that exist in state greenhouse gas emissions policy frameworks with respect to incentives for sustainable aviation fuel and in support of the decarbonization of the aviation sector and to seek to address those shortfalls by assessing new incentives, as provided. The bill would require the state board to include in the plan specified elements, including, but not limited to, an evaluation of barriers and possible solutions to increasing sustainable aviation fuel production levels, actions that can be taken by the state to ensure that the state’s policy incentives for sustainable aviation fuel are comparable to those provided to renewable diesel and other on-road fuels, and tools for increasing the state’s sustainable aviation fuel supply and demand. The bill would also require the state board to consult with designated state agencies and encourage the state board to consult with designated stakeholders, including, but not limited to, commercial airports, aircraft and engine manufacturers, and aviation infrastructure providers, regarding development of the plan, on or before July 1, 2023.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Climate change is causing historic droughts, devastating wildfires, torrential storms, extreme heat, the deaths of millions of trees, billions of dollars in property damage, and threats to human health and food supplies.
(b) A working group of the United Nations’ Intergovernmental Panel on Climate Change determined in its contribution to the panel’s Sixth Assessment Report, “Climate Change 2021: The Physical Science Basis,” that, “It is unequivocal that human influence has warmed the atmosphere, ocean and land. Widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere have occurred.”
(c) The working group of the United Nations’ Intergovernmental Panel on Climate Change further determined that, “Global surface temperatures will continue to increase until at least the mid-century under all emissions scenarios considered. Global warming of 1.5°C and 2°C will be exceeded during the 21st century unless deep reductions in carbon dioxide (CO2) and other greenhouse gas emissions occur in the coming decades.”
(d) National governments and international governance bodies have long studied and recognized sustainable aviation fuel as a viable, effective means to reduce aircraft emissions.
(e) California has an opportunity to expand its climate leadership through goals and incentives specific to the aviation sector. Focusing on investing in the state’s aviation infrastructure and in-state sustainable aviation fuel production capacity can meaningfully reduce the state’s greenhouse gas and criteria pollutant emissions and enable the green recovery of the state’s critical industries. This aviation sector strategy is informed by the fact that the state is precluded from regulating the aviation sector in a manner that is federally preempted.
(f) Decarbonizing aviation can create local jobs, local and state tax revenue, and economic growth at this critical time by utilizing waste stream feedstocks available in the state in large quantities to produce sustainable aviation fuel. Technologically feasible feedstocks include woody biomass from forest fuels management, agricultural residues, postseparated municipal solid waste, and fats, oils, and greases. Harvesting these feedstocks, constructing sustainable aviation fuel production facilities, operating sustainable aviation fuel plants, and transporting sustainable aviation fuel to airports in the state all offer new green job opportunities for state residents.
(g) According to the State Air Resources Board’s reporting for the Low Carbon Fuel Standard, approximately 4,600,000 gallons of sustainable aviation fuel (for example, alternative jet fuel) were uplifted in the state in 2020. This represents only 0.0025 percent of the jet fuel consumed in intrastate aviation in the state.
(h) Airlines for America (A4A) and its members (Alaska Airlines, American Airlines, Atlas Air, Delta Air Lines, Federal Express, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, United Airlines, United Parcel Service (UPS), and associate member Air Canada) have pledged to achieve net-zero carbon emissions by 2050. A4A and its members recognize that the availability of cost-competitive sustainable aviation fuel will be a critical element to reaching the net-zero goal and have pledged to work with government leaders and other stakeholders toward a rapid expansion of the production and deployment of commercially viable sustainable aviation fuel to make 3,000,000,000 gallons of cost-competitive sustainable aviation fuel available to United States’ aircraft operators in 2030. Though there is recent progress in advancing federal-level sustainable aviation fuel incentives to enable this, achieving this 3,000,000,000-gallon goal will require exponential growth in sustainable aviation fuel production through 2030 that requires added and complementary policy support beyond that offered at the federal level.
(i) Airports have long been leaders in achieving greenhouse gas emissions reductions arising from buildings, ground operations, and on-road transportation, enabled through partnerships with airlines and tenants to develop programs and essential infrastructure. Airports follow a recognized industry standard—the Airport Carbon Accreditation—in assessing and managing climate impacts. Most recently, Airports Council International members adopted a Long-Term Carbon Goal as a global-level commitment to reach net-zero carbon emissions by 2050 and urged governments to provide the necessary support for this endeavor.
(j) California currently produces virtually all of the nation’s sustainable aviation fuel. To achieve the airlines’ and the federal government’s goal of 3,000,000,000 gallons of sustainable aviation fuel supply in 2030, it is likely that in-state producers will need to produce 1,500,000,000 gallons of sustainable aviation fuel per year by 2030.

SEC. 2.

 Section 38569 is added to the Health and Safety Code, to read:

38569.
 (a) On or before July 1, 2024, the state board shall develop, consistent with federal law, a plan to reduce aviation greenhouse gas emissions and help the state reach its goal of net-zero greenhouse gas emissions by 2045, including a sustainable fuels target for the aviation sector of at least 20 percent by 2030. The plan shall include, but not be limited to, all of the following:
(1) Strategies to reduce greenhouse gas emissions through the increased production and use of sustainable fuels in the aviation sector, including, but not limited to, sustainable aviation fuel and, to the extent feasible, electricity and hydrogen.
(2) Calculations of the incentive amounts that would be required to encourage aircraft to voluntarily use cleaner fuels and selections of funding sources and implementation programs, including new programs developed for the plan, to provide viable incentives to encourage aircraft in the state to use cleaner fuels. Calculations shall reflect both the direct benefits and cobenefits of those fuels, including, but not limited to, all of the following:
(A) Reduction in local air quality pollutants, including NOx, SOx, and particulate matter.
(B) Superior energy density.
(C) Advanced manufacturing.
(D) Creation of high-paying industrial jobs.
(3) Incentives for alternative fuel use, prioritized with consideration of the entire fuel life cycle to achieve the greatest greenhouse gas emissions reductions and cobenefits, including, but not limited to, reductions in criteria air pollutants, per incentive dollar.
(4) Augmentations of existing incentives and the creation of new incentives necessary to increase the production and use of sustainable aviation fuel in the state.
(5) The target quantity of greenhouse gas emissions reductions associated with volumes of sustainable aviation fuel to support the state in meeting its overall greenhouse gas emissions reduction goals.
(6) An evaluation of barriers and possible solutions to increasing sustainable aviation fuel production levels pursuant to paragraph (4).
(7) Milestones toward increasing sustainable aviation fuel production levels pursuant to paragraph (4), and for the promotion of all available sustainable feedstocks as needed to achieve those milestones, including, but not limited to, all of the following:
(A) Waste biomass from forest management activities.
(B) Agricultural residues, processing residues, and fats, oils, and greases.
(C) Postseparated municipal solid waste.
(8) Actions that can be taken by the state to ensure that the state’s policy incentives for sustainable aviation fuel are sufficient to incentivize sustainable aviation fuel production at least at a level comparable to policy incentives provided to renewable diesel and other on-road fuels.
(9) Tools for increasing the state’s sustainable aviation fuel supply and demand, including, but not limited to, sustainable aviation fuel infrastructure and in-state production capacity and support for small and startup producers of sustainable aviation fuel.
(b) In developing the plan required by subdivision (a), the state board shall do all of the following:
(1) Evaluate, model, and create incentives to increase the amount of sustainable aviation fuel produced in or imported into the state for uploading to an aircraft in the state.
(2) (A) Closely examine the shortfalls that exist in greenhouse gas emissions policy frameworks that apply to alternative fuel incentives available within the state, including, but not limited to, the Federal Renewable Fuel Standard program and the California Low Carbon Fuel Standard program (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations), with respect to incentives for sustainable aviation fuel and in support of the decarbonization of the aviation sector.
(B) The state board shall seek to address in the plan the shortfalls identified pursuant to subparagraph (A) by assessing new incentives that recognize reductions in criteria pollutants, including nitrogen oxide (NOx), sulfur oxide (SOx), and particulate matter, and economic cobenefits among the state’s residents and job-creating industries, including high-paying industrial jobs created by sustainable aviation fuel production and use.
(3) Maximize reductions in wildfire risk to state residents and communities by expediting review of sustainable aviation fuel pathways for the Low Carbon Fuel Standard program (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations) that utilize feedstocks presenting wildfire risk and by fully recognizing carbon intensity reductions achieved through the use of woody biomass, including mitigation of wildfire risks and wildfire emissions and avoiding emissions from burn piles.
(c) In developing the plan required pursuant to subdivision (a), the state board shall, on or before July 1, 2023, consult with the following state agencies regarding development of the plan:
(1) The Natural Resources Agency.
(2) The Department of Forestry and Fire Protection.
(3) The California Environmental Protection Agency.
(4) The State Energy Resources Conservation and Development Commission.
(5) The Governor’s Office of Business and Economic Development.
(d) In developing the plan required pursuant to subdivision (a), the state board is encouraged, on or before July 1, 2023, to consult with the following stakeholders regarding development of the plan:
(1) Commercial airports, commercial airlines, both passenger and cargo, and business aircraft operators that operate in the state.
(2) Aircraft and engine manufacturers.
(3) Sustainable aviation fuel producers and developers.
(4) Aviation infrastructure providers.
(5) Commercial air cargo network operators.
(6) Environmental organizations.
(7) Academic experts in alternative aviation fuels.

SEC. 3.

 Section 38569.5 is added to the Health and Safety Code, to read:

38569.5.
 (a) On or before July 1, 2024, the state board shall, consistent with federal law, commence implementation of the plan developed pursuant to Section 38569 to meet the goals identified in that section.
(b) The implementation of this section is contingent upon an appropriation by the Legislature in the annual Budget Act or another statute.