[Message | From: ‘Margo Parks (mparks@wspa.org] | Sent: 4/27/2021 12:08:04 AM To: Garcia, David @ARB [/o=ExchangeLabs/ou=Exchange Administrative Group | (FYDIBOHF23SPDLT) cn=Recipients/cn=2d2ab91261544de3988a3a669958caad-David Garci] | Subject: FW: AB 1395 amendment | Attachments: ab_1395_98_A bill 1) mock up docx | | Flag: Follow up I | CAUTION: This email originated from outside of the organization. Do not cick links or open attachments unless you recognize the | sender and know the content is sate. ‘ Western States Petroleum Association oF ws 1415 L Street, Suite 900, Sacramento, CA 95814 P 916.225.2122 ¢ 916.790.0563 Wspa.org argo Parks From: Lingbloom, Lawrence Sent: Monday, April 26, 2021 2:23 PM To: Theo Pahos ; Margo Parks ; Bruce Magnani ; Z-Eloy Garcia Subject: AB 1395 amendment (2) Ensure that by 2045 a-minimum-of, statewide anthropogenic greenhouse gas emissions are reduced to at least 90 percent of gross. greennouse gas emissions subject to-this division are-to-be achieved only through omission reductions The remaining 10 percent of gross greenhouse gas-emission reductions maybe accomplished through the-use-of-carbon-dionide removal strategies below the statewide greenhouse gas emissions limit established pursuant to Section 38550.AMENDED IN ASSEMBLY APRIL 20, 2021 california legislature—202'-22 regular session ASSEMBLY BILL No. 1395 Introduced by Assembly Members Muratsuchi and Cristina Garcia (Coauthors: Assembly Members McCarty, Robert Rivas, and Stone) (Coauthor: Senator Skinner) February 19, 2021 An act to add Section 38562.2 to the Health and Safety Code, relating to greenhouse gases legislative counsel's digest AB_ 1395, as amended, Muratsuchi, Greenhouse gases: carbon neutrality 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 state board is required to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state 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 dectare the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. The bill would require the state board to work with relevant state agencies to 98AB 1395 5 ensure that end measures to achieve and these policy goals, to ensure that hy 2045 a minimum of 90% of gross greenhouse gas emissions subject to the act are to be achieved only through emission reductions, and to prioritize the use of nature-based solutions in California to achieve carbon neutrality. The bill would require the state board to work with relevant agencies to establish criteria for the use of technology-based solutions for purposes of achieving these policy goals. The bill would impose other requirements on state agencies relating to working toward-carbon-neutrality: these policy goals. Vote: majority. Appropriation: no. Fiscal committee: yes State-mandated local program: no. The people of the State of California do enact as follows: SECTION 1. Section 38562.2 is added to the Health and Safety Code, to read: 1 2 3 4 38562.2. (a) For purposes of this section, the following 5 definitions apply: 6 — (1) “Carbon dioxide removal” means the process of removing 7 carbon dioxide from the atmosphere and durably storing it in 8 geological, terrestrial, or ocean reservoirs, or in products. Carbon 9 dioxide removal includes nature-based and technology-based 10 solutio 11 2) “Carbon neutrality” means gross emissions of greenhouse 12 gases to the atmosphere are balanced by removals of greenhouse 13, 14 15 16 17 18 19 20 gas emissions over a specified period of time. (3) “Nature-based solutions” means carbon dioxide removal solutions that enhance biological sinks of carbon dioxide. (4) “Net negative greenhouse gas emissions” occurs when removals of greenhouse gas emissions from the atmosphere exceed gross emissions of greenhouse gases. (5) “Technology-based solutions” means carbon dioxide removal solutions that actively pull carbon dioxide out of the 98—3— AB 1395 atmosphere, such as direct air capture or electricity generation with carbon capture and sequestration. (b) Its the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This carbon neutrality goal is in addition to the statewide greenhouse gas emissions reduction targets in-Seetions-38550-and Section 38566. ) (©) The state board shall work with relevant state agencies to do all of the following: ofAB 1395 —4— 1 (1) Ensure that updates to the scoping plan required pursuant 2 toSection 38561 identify and recommend measures to achieve the 3. policy goal stated in subdivision (b). 4 © 2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least a-minimem-of 90 percent-of 7085 5. grecnhonco-gas-emissions subject to-thisdivisionarote beachioved —below the statewide greenhouse gas emission limit established pursuant to Section 38550 9 © (3) Prioritize the use of nature-based solutions in California to 10 achieve carbon neutrality. 11 (@d) (1) The state board shall work with relevant agencies t0 12 establish criteria for the use of technology-based solutions for 13 purposes of achieving carbon neutrality and maintaining ‘net 14. “negative greenhouse gas emissions thereafter. 15 (2) Inestablishing the criteria pursuant to paragraph (1), the 16 state board shall do all of the following: 17 (A) Consider the risks and uncertainties associated with the use 18. of technology-based solutions and shall include requirements for 19. long-term financial assurances 10 mitigate for those risks and 20. uncertainties. 21 (B) Ensure that the use of technology-based solutions does not 22 increase ‘oxic and criteria pollutants, and actively reduce toxic 23. and criteria pollutants where feasible. 24 (C) Exclude the counting of captured carbon dioxide that is 25. injected into underground wells for the purpose of fossil fuel 26 extraction in California, including, but not limited to, enhanced 27. oil recovery, as removal for the purposes of achieving carbon 28 neutrality ‘by 2045, or maintaining net negative emissions 29 thereafter 30 (3) The criteria established pursuant to paragraph (1) shall 31 include ongoing monitoring and safeguards that, in perpetuity, do 32. all of the following: 33 (A) Ensure quantifiable, additional, and permanent emissions 34 reductions, account for risk factors, include a buffer pool in the 35. event of a reversal, and provide for invalidation criteria 10 ensure 36 environmental integrity is always maintained. 37 (B) Include robust monitoring, accounting, and annual reporting 38. 10 the state board by the project owner. Reports shall describe 39 environmental safeguards, account for uncertainty in any 9AB 1395, measurements, be verified by a state board-approved third-party verifier, and be made publicly available. (C) Ensure compliance with all applicable local, regional, state, and national requirements on environmental impact assessments or reports and all applicable local, regional, state, and national environmental health and safety laws and regulations, requirements regarding transparent documentation with state board-approved third-party verification, and grievance mechanism processes. (D) Are enforceable. (©) In working toward the policy goal stated in subdivision-{a); (0), state agencies shall-engage do all of the following: () Engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve carbon neutrality. (2) Seek to support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities. (3) Support climate adapiation and biodiversity, including by protecting the state’s water supply, water quality, and native plants ‘and animals. 98