California Air Resources Board Approves Climate Change Scoping Plan: Targeted Fees
This post was written by Katie Annand.
The Scoping Plan incorporates various targeted fees on GHG emission producing activities as part of the state’s comprehensive reduction strategy. The plan also considers potential uses for revenue raised by these fees and others.
High Global Warming Potential Gases
- One targeted fee in the Scoping Plan is a mitigation fee for high global warming potential (GWP) gases. The plan focuses on high GWP gases because they are relatively inexpensive, there is no incentive to develop alternatives, reduce leakage or recover these gases from old units. The plan anticipates that a mitigation fee would better reflect the impact of these gases on the environment, would promote alternatives to using these gases, and would improve removal and recycling of the gases.
- The high GWP gas fee would be variable and associated with the impact the chemical has on public health and on the environment. The fees would decrease as the manufacturer or producer redesigned the product or found alternatives.
- The plan proposes using funds generated by the fee to reduce emissions from high GWP gases and other GHGs.
- In addition to fees, the plan recommends reducing high GWP gas emissions through regulating commercial and industrial refrigeration, changing refrigerants used in air conditioning systems, and preventing leakage from auto and stationary refrigeration systems.
Water Usage
- The Scoping Plan also intends to implement a public goods charge on water usage for funding investments in water management. The funds raised by the fee would improve water and energy efficiency and reduce GHG emissions.
- The fee, which could be added to water bills, is estimated to generate $100 million to $500 million annually. In addition to raising revenue, the fee would also improve water quality and water supply reliability.
- In addition to the public goods charge, the plan intends to reduce GHG emissions from water usage through water efficiency, water recycling and water system energy efficiency measures.
Use of Revenues
- The Scoping Plan considers the use of revenues raised by programs such as targeted fees – and cap and trade [link to Cap and Trade] allowances. First, the plan recommends that some revenue or allowances stay within the sector that generated it. The plan also sets forth other uses for revenues and allowances:
- Reducing the cost of emissions reductions and achieving additional reductions by funding energy efficiency and renewable resource development
- Achieving environmental co-benefits by enhancing GHG emission reductions that also provide reductions in air and other pollutants that affect public health
- Incentives to local governments for land-use planning, infrastructure projects, recycling, composting and generating renewable energy from anaerobic digestion
- Consumer rebates to offset some of the cost associated with increased investments in renewable resources and to encourage increased energy efficiency
- Direct refunds to consumers
- Climate change adaption program>
- Subsidies to reduce the immediate cost impact on industries
- Support for research, development and deployment of green technologies
- Worker transition assistance
- Administration of AB 32 programs and operating costs
- Direct emissions reductions through projects, such as afforestation and reforestation, which would both sequester CO2.
The above potential uses of revenue generated under the Scoping Plan will also help CARB implement the community benefit section of AB 32, which requires that CARB ensure that its GHG reduction program directs investment towards disadvantaged communities in California.
Click here to return to Scoping Plan overview.
