SUB COMMITTEE ON NATURAL
RESOURCES ENVIRONMENT PROTECTION
AND ENERGY WILL COME TO ORDER
GOOD MORNING IN RESPONSE TO THE
COVERT NINETEEN EMERGENCY IN TO
PROTECT THE PUBLIC LEGISLATORS
AND EMPLOYEES WE MUST LIMIT
NONESSENTIAL GATHERING SENATOR
TO SOCIAL. DISTANCING AND FACE
COVERING VIOLENCE IN COMPLIANCE
WITH THOSE ORDERS THE CITY HAS
MADE NECESSARY ADJUSTMENTS TO
NORMAL PRACTICES IN ORDER TO
ENSURE THAT THE PUBLIC CONTINUES
HAVE ACCESS TO THE LEGISLATIVE
PROCESS WE'RE HOLDING HER
COMMITTEE HEARINGS HERE IN THE
CAPITAL WITH SOME MEMBERS
PARTICIPATING- REMOTELY TODAY
ALL THE SENATORS ON THE
SUBCOMMITTEE. WILL BE HERE IN
THE HEARING ROOM THOSE PROVIDING
TESTIMONY BEFORE THE COMMITTEE
TODAY ARE PARTICIPATING MURRILL
REMOTELY AND- OUR REMOTE
PARTICIPANTS PLEASE MUTE YOUR
PHONES OR COMPUTERS THIS WILL
GREATLY AID IN ELIMINATING ANY
ACOUSTIC FEEDBACK I JUST EVERY
TIME YOU WISH TO RECOGNIZE. THAT
YOU USED TO RAISE THE HAND
FEATURE ON THE PROGRAM EACH TIME
YOU'RE RECOGNIZED TO SPEAK THE
POP UP WINDOW WILL APPEAR ASKING
YOU TO. IF YOU WOULD LIKE TO A
MUTE PLEASE SELECT THAT MEET
BEFORE YOU BEGIN SPEAKING R. I.
T. PERSON I WILL PUT YOU BACK ON
MUTE WHEN YOU. ARE DONE ONCE
AGAIN I WANT TO RECOGNIZE PLEASE
MAKE SURE THAT YOU CAN BE SEEN
ON THE SCREEN STATE YOUR NAME.
AND YOU ARE READY TO- PRESENT WE
HAVE FIVE PANELISTS I WOULD
IMAGINE. THAT THERE WILL BE SOME
. BACK AND FORTH FROM. COME FROM
SO. I'LL BE PAYING A- TO THOSE
RAISED TEN TO ALLOW THE PUBLIC
GAS SIX WITH MATH. WE HAVE
ADMITTED MEMBERS OF THE PUBLIC
TO THIS HEARING ROOM TO THE
EXTENT THE SOCIAL DISTANCING
REQUIREMENTS ALLOW WILL BE USING
A TELECONFERENCE SERVICE. FOR
THOSE INDIVIDUALS WHO WISH TO
TESTIFY TODAY FOR ALL
INDIVIDUALS WISHING TO PROVIDE
PUBLIC COMMENT. THE
PARTICIPATION OF TOLL FREE
NUMBER AND ACCESS CODE IS POSTED
ON OUR COMMITTEE WEBSITE. IT
WILL BE DISPLAYED ON THE SCREEN
AND I WILL NOW SIT OUT TODAY'S
PARTICIPATION. IT'S JUST THAT
NUMBER IS EIGHT FOUR FOUR TWO
NINE ONE. SIX THREE SIX FOUR AND
THE ACCESS CODE IS THIRTY FIVE.
THIRTY ONE. TWO EIGHT THREE FOR
DETAILED INSTRUCTIONS AND HEALTH
TELECONFERENCE SYSTEM WORKS.
PLEASE REFER TO THE SENATE AND
OUR COMMITTEE WEBSITE WE MOVED
TO THE PUBLIC COMMENT YOU TOO
THE MEMBERS OF POKER WILL BE
PROMPTED BY THE MODERATOR TO
DIAL ONE DAY AND ZERO. PRESS
THIS ONLY ONE TIME AND WAIT
PATIENTLY FOR THE OPERATOR TO
ASSIGN YOU A LINE THIS MAY BE A
SHORT WAIT ONCE RECEIVED RELY
NUMBER YOU'LL WOULDN'T THE QUEUE
FOR THE MODERATE TO CALL YOUR
LIGHT NUMBER AT THAT TIME YOU
WILL BE I NEED IT. YOU ARE NOW
READY TO ADDRESS- THE
SUBCOMMITTEE PLEASE NOTE THAT IN
ORDER FOR US TO HEAR YOU CLEARLY
AND AVOID CUSICK FEEDBACK YOU
TOO MUCH MUTE THE DEVICE YOU'RE
WATCHING. THE HEARING ON PRIOR
TO GIVING TESTIMONY OVER THE
PHONE IT'S IMPORTANT THAT WE
HEAR FROM YOU AND WE THANK YOU
FOR YOUR PATIENCE. I WILL
MAINTAIN DECORUM DURING A
HEARING AS IS CUSTOMARY IN ANY
INDIVIDUAL WHO IS DISRUPTIVE MAY
BE REMOVED FROM THE REMOTE.
MEETING SERVICE OR HAVE THEIR
CONNECTIONS MUTED- OKAY SO TODAY
. WE'RE HERE TO DISCUSS THE
TWENTY TWENTY ONE INDEPENDENT
EMISSIONS MARKET ADVISORY
COMMITTEE IRAQ IS WILL REFER TO-
THROUGHOUT THE HEARINGS PANEL
REPORT- AS I I'LL FILE NODE-
MANY OF US INHERITED THE CAP AND
TRADE PROGRAM- WHEN WE WHEN WE
GOT ELECTED IN IT WHAT THE WORD
ADMINISTRATOR OR SECRETARY OR-
AND I'M MAC- MEMBER WE- WE VALUE
EVERYBODY'S OPINION ON HOW TO
MAKE THE SYSTEM WORK BETTER AND
HOW WE CAN REALLY ACHIEVE THE
GOALS SET OUT IN. AN SP THIRTY
TO LOOK REDUCING OUR MISSIONS
290% OF WHAT THEY ARE 40% OF
WHAT THEY PRODUCE ABOUT 40%
BASED ON IN NINETEEN NINETY
LEVELS SO I'D LIKE TO WELCOME
OUR DR DALLAS BIRCHALL WHO'S
ACTUALLY THE CHAIR OF THE HI MAC
AND I WILL HAVE A DOCTOR- HAVE
YOU. PRESENT YOUR TESTIMONY
FIRST AND THEN GO THROUGH IN
ORDER TO HAVE ALL THE PANELISTS
TESTIFIED THEN WE'LL TURN. TO
MEMBERS QUESTIONS GOOD MORNING.
GOOD MORNING FORMER WHITE HOUSE
SKIN COMMITTEE MEMBERS THANK YOU
SO MUCH FOR HAVING US HERE
TODAY. THE COMMITTEE IS GREATLY
APPRECIATIVE OF THE WORK OF THIS
COMMITTEE OF THE LEGISLATURE OF
THE- DILIGENT WORK OF THE
AGENCIES THAT ARE INVOLVED IN
IMPLEMENTING THE CARPENTRY
PROGRAM- OUR RESPONSIBILITY IS
TO DO IN IT. AMONG OTHER
POSSIBLE. ACTIVITIES WAS TO
COMPLETE AN ANNUAL REPORT TO THE
LEGISLATURE AND THE- OUR
RESEARCH SUPPORT ON. PROVIDING
OVER OF THE MARKET AND THAT'S
THE REPORT TO BE ISSUED IN
JANUARY FOR TREES. FOR THE YEAR
TWENTY TWENTY ONE. THE AMERICAN
PORT DISCUSSES OF FIVE CHAPTERS
THE ADDRESSES OF SCOPING PLAN.
THE ALLOWANCE BANK POTENTIAL
MARKET REFORMS IF THEY WERE.
NECESSARY ALL SUCH A MEDICATION
MEASURES. THE SCOPING PLAN I'M
GOING TO TALK ABOUT THE FIRST
TWO OR THREE OF THOSE AND- MY
COMMITTEE CULT CULT COLLEAGUE
DANI COLD WORD IS GOING TO PICK
UP A COUPLE. AFTER ALL RIGHT I
DO DESCRIPTION PLAN CHAPTER A
KNOWLEDGE IS THE NEW FOCUS ON.
AND THE PAINTING THE R. M. LONG
TERM INITIALLY GOALS. FOR TWENTY
FORTY FIVE TWENTY THIRTY FIVE
THAT HAVE BEEN PART OF THE
PUBLIC'S SCOPING PLAN PROCESS
TODAY. WE APPRECIATE THAT BUT WE
ALSO RAISED. THE NEED TO ADDRESS
. OUR NEAR TERM GOALS THROUGH
TWENTY THIRTY WITH MODELING AND
ANALYSIS DESCRIBING THE WAY IT'S
THOSE GOALS ARE GOING TO BE A
CHEAP. WE UNDERSTAND NOW THAT
THERE IS SUCH MOLLY IS IN THE
WORKS AND SHE SHOULD BE IN. OUR
COMING FOR JUNE AND THAT'S
SOMETHING WE WOULD APPLAUD BUT
THERE'S A SECOND INTERESTED WE
REALLY FOCUSED ON WHICH HAS TO
DO WITH THE INTERACTION OF THE
COVERED MARKET WITH WITHIN THE
SCOPING PROCESS ANOTHER
REGULATIONS THAT WILL BE
IMPLEMENTED. TO ACHIEVE A MISS
REDUCTION GOALS. WE JUST MADISON
. ONE OF THE VIRTUES OF THE
CARBON MARKET IS INDIFFERENT
ABILITY TO RESPOND TO CHANGES
SECULAR CHANGES IN THE ECONOMY.
YEAH THE REPORT IS ASKING FOR A
DESCRIPTION OF THE REGULATORY
ATTENTION BALANCE AND STRATEGY
TO ACHIEVE THESE GOALS BETWEEN
THE CORPORATE MARKET AND OTHER.
REGULATORY EFFORTS. THE CHAPTER
ON THE ALLOWANCE BANK
CONSTRUCTED A LOT OF ATTENTION
IN THE LAST COUPLE WEEKS BECAUSE
OF THE IT WAS COINCIDENT WITH.
THE BECOME THE FINAL RESULTS FOR
THE THIRD COMPLIANCE PERIOD
ENDING IN TWENTY TWENTY. AND THE
A. R. B. FINAL ASSESSMENT OF THE
SIZE OF THE BANK. WE FIND THAT
THE SIZE THE BANK IS GREATER
THAN AN ANNUAL ALLOCATION OF NEW
COMMERCIAL OUTAGE IN ANY YEAR
THIS DECADE IN THE PROGRAM. AND
SO IT LOOKS PLAUSIBLE. THAT G.
COMPLIANCE ENTITIES COULD
SATISFY THE MARKET CONSTRAINTS
IMPOSED BY THE COURT AND THE
CREDIT MARKET WITH. NO FURTHER
EMISSION REDUCTIONS FROM THE
CURRENT LEVELS BECAUSE OF THE
SIZE THE BANK THAT WE HELP TURN
TOWARD. NOW IT IT IS NOT OUR WE
DO NOT ACCOUNTANT AND INDEED
FROM AN ECONOMICS PERSPECTIVE
ONE CANNOT IDENTIFY WHAT IS THE
OPTIMAL SIZE THE BANK OR EVEN
SAY CONCLUSIVELY WHAT THE BANK
IS TOO LARGE OR TOO SMALL. THE
OPTICS OF THIS ARE CHALLENGING
IN A SIMILAR SIZED BANK HAS
EMERGED ANOTHER PROGRAMS IN
REGGIE IN THE REGIONAL
GREENHOUSE GAS INITIATIVE WHICH
INVOLVES. A LOT OF NORTHEAST
STATES. AND YOU I. IMPORT AND
CALL. ABOUT FOR WERE EMPTY THAT
LED TO REDUCE IN THE PLAN THOSE
. WHICH GREATLY. THOSE PRO AND
THE IMPORTS LESS PROGRAMS ARE
TREATING ABIS REDUCTIONS REGGIE
REDUCE THE ISSUANCE OF NEW
ALLOWANCES TO FULLY ABSORB THE
PRIVATELY HELD BANK TWICE DURING
ITS FIRST OF THE PLANNED
SYSTEMATIC. PROGRAM REVIEWS. D.
E. U. HAS IMPLEMENTED AN
ADJUSTMENT MECHANISM THAT IS
EXPECTED TO CANCEL ROUGHLY ONE
YEAR SUPPLICATION OF NEW
ALLOWANCES. IN THE YEAR TWENTY
TWENTY THREE. AND THE
CONSEQUENCE OF BOTH THOSE
HUSBAND TO BOOK SUPPORT THE
LOWEST. PRICES ON THOSE PROGRAMS
. THE REPORT GOES ON TO PROVIDE
ANSWERS OF ALL OPTIONS THE STATE
HOUSE IF IT DECIDES REDUCE
EMISSIONS FROM CORPORATE SOURCES
THROUGH A MARKET ADJUSTMENT. AND
THIS IS WHERE OLD NUMBER ONE
REQUIRES A LOT OF ATTENTION TO
UNDERSTAND THE WHAT WE'RE TRYING
TO- CONVEY. TO THE COMMITTEE. WE
MENTIONED THE QUALITY
ADJUSTMENTS SUCH AS WERE
IMPLEMENTED AND REGGIE ARE AN
OPTION ANOTHER OPTION AND
PERHAPS THE ONLY ONE THAT CAN BE
IMPLEMENTED WITHOUT LEGISLATIVE
ENGAGEMENT. WOULD BE TO RAISE
THE PRICE FLOOR BECAUSE OF
POSSIBLY THAT COULD BE DONE. BY
THE AGENCY AND THAT RAISING THE
PRICE FOR CRUDE. COULD COULD
CONSTRAIN THE NUMBER OF
ALLOWANCES THAT ARE ENTERING THE
MARKET. HOWEVER STRONGER IDEA
MAY BE TO IMPLEMENT AN
ADDITIONAL PRICE STEP. WHICH
WHICH IS THE AFFECTED REGGIE
IMPLEMENT THE REGIONAL
GREENHOUSE GAS INITIATIVE
IMPLEMENTED IN TWENTY TWENTY ONE
AND WHICH IS WRITTEN INTO THE
WASHINGTON STATE PROGRAM
DESIGNED. THIS PRICE STEP THAT
WHICH REGGIE CALLS AN EMISSIONS
CONTAINMENT RESEARCH WOULD BE
ABOVE THE PRICE FOR. WITH ITS
OWN SUGAR PRICE APPLIED TO
APPORTION SAY 10% OF THE
ALLOWANCES THAT WOULD BE ISSUED
AN AUCTION. BUT SO THE SHARE OF
ALLOWANCES THAT THAT ENTER THE
PROGRAM WOULD BE REDUCED AT A
PRICE BELOW THIS PRICE STEP
LEVEL. OF THIS CREATES A PRICE
RESPONSIBLE PLIABLE LOUNGE WHICH
IS ALREADY PARTIALLY AFFECTED
CALIFORNIA BECAUSE OF THE
EXISTENCE OF THE PRICE FOR YOU
PEOPLE TALK ABOUT. OR THINK
ABOUT EMISSION CAPS THEY OFTEN
THINK THAT THERE'S A FIXED
QUANTITY OF ALLOWANCES UNDER
RIGHT TO ENTER MARKET BUT
CALIFORNIA AND REGGIE THE NORTH
AMERICAN CARBON MARKETS HAVE
ALREADY BEGUN TO MOVE WELL
PASSED OUT BOTTLED THROUGH TRUE
SUPPLY ALLOWANCES. THE RESPONSE
FOR THE PRICE OF THE MARKET AND
THIS YOU KNOW RESEARCH WE
ADVOCATE FOR THE ROLE OF CARBON
MARKETS BECAUSE THE EFFICIENCY
AND EFFECTIVENESS THAT THEY
BRING IN ACHIEVING EMISSION
REDUCTIONS BUT IN DESIGNING CAP
AND TRADE MARKETS. THE TYPICAL
APPROACHES THAT FOR JUST THE CAP
OR NO OTHER COMMODITY MARKET IN
THE WORLD IS LIKE THAT AND OTHER
COMMODITY MARKETS THE SUPPLIER.
OF THE GOOD RESPONSE TO THE
PRICE OF ALLOWANCES THAT HELPS
YOU PRAYED FOR PRICE OF. THE
COMMODITY THAT HELPS WITH PRICE
DISCOVERY HELPS CHEEK LIBERMAN
THE MARKET AND IT CAN BE A
REALLY USEFUL TOOL AND IT HELPS
FOR THE CORPORATE MARKET IN
CALIFORNIA TO INTRODUCE
SOMETHING LIKE EMISSIONS
CONTAINMENT RESERVE. SO THAT IF
THE PRICE FALLS L. AS THE PRICE
FALLS THE END OF BECOMES CHEAPER
TO ACHIEVE EMISSION REDUCTIONS
THAT. FEWER EMOTIONAL OUT TO
SOME OF THE MARKET. I'M THE
FINAL END IN. THING WE HAVE. IS
THE EMPLOYEE THAT PC OF ANY OF
THESE OF MARKET IS. COULD HELP
ON THE GAS REDUCTION FUND THE
GREENHOUSE GAS REDUCTION FOR AS
YOU KNOW BEEN VERY. FOR DRIVING
INVESTMENTS IN MEMBERS
COMMUNITIES ESPECIALLY
DISADVANTAGED COMMUNITIES IN
CALIFORNIA. RESTRICTING THE
SUPPLY OF ALLOWANCE WHICH COULD
AFFECT THE GREENHOUSE GAS
REDUCTION FUND. IMPORTANT LESSON
HERE IS THERE IS ACTION
OPPORTUNITY. P. O. THE RESEARCH
RESTRICTING THE NUMBER OF
ALLOWANCES TO ENTER THE MARKET
WOULD HAVE AN EFFECT ON THE
PRICE OF OIL CHANGE THE MARKET.
AND THE OVERALL VALUE OF ALLOW
ALLOWANCES THE MARKET WOULD
ACTUALLY INCREASE NOT DECREASE
BY REDUCING THE SUPPLY OF OIL TO
FOREIGN MARKETS SORT OF LIKE
WHAT. HAPPENS IF A BENEFIT
MONOPOLY TRIES TO CONTROL THE
SUPPLY OF SOME GOOD INTRO
MARKETS OVERALL REVENUES COULD
INCREASE. THAT THIS MARKET
DEPEND UPON THIS CASE OF. I CAN
SPEAK PRETTY CONFIDENTLY THAT WE
WOULD EXPECT TO SEE AN INCREASE
THAT AND THE ASSET VALUE
ALLOWANCES THE CAP ND TRADE
MARKET. THE GLOBAL MARKET
HOWEVER CURRENTLY ABOUT HALF OF
THE ALLOWANCES THE MARKET ARE
ISSUED FOR FREE. AND IF THE
SUPPLY WAS REDUCED. STRICTLY BY
REDUCING THE SALES. OWNED LAND
TOOLS DONE THE VALUE OF FREELY
DISTRIBUTED ALLOWANCES WOULD
RISE SHARPLY. AND THE GREENHOUSE
GAS REDUCTION FUND WOULD BE
IMPOVERISHED. WE DESCRIBE AN
APPROACH THAT WOULD PROTECT THE
GREENHOUSE GAS REDUCTION FUND.
WHICH WOULD PROBABLY REQUIRE
LEGISLATIVE INVOLVEMENT SO THAT
THE SUPPLY IF THE SUPPLIER
RESTRICTED. OVERALL EACH CHANNEL
SUPPLY ENTERING THE MARKET WOULD
BE RESTRICTED PROPORTIONALLY. SO
THAT'S A PRESENTATION OF THE
IDEAS THAT WE WOULD LIKE TO
LEAVE WITH YOU- THANK YOU VERY
MUCH AND I'M EAGER TO ANSWER
YOUR QUESTIONS. MORE WALKABLE
FAVOR QUESTIONS I KNOW. I
WOULDN'T SAY I ENJOYED READING
THE FORTY TWO PAGE REPORT BY
IRAQ OR IS RATHER THICK BUT- I
DIDN'T WORK MY WAY THROUGH IT.
NEXT WE'LL HEAR FROM- THE
COMMITTEE VICE CHAIR ON POLICY-
BUT THE I MAC AT DR DANI COLIN
WARD. PROFESSOR POINT GOOD
MORNING SENATOR WHAT KASKY
MEMBERS OF THE COMMITTEE- THANK
YOU FOR THE OPPORTUNITY TO BE
HERE LET ME ECHO BOTH SENATOR
WHITE HOUSE GIVES OPENING
REMARKS ABOUT THE IMPORTANCE OF
STRENGTHENING THIS PROGRAM AND
KEEPING IT A VIBRANT AND
SUCCESSFUL PART. OF THE STATE'S
CLIMATE POLICY PORTFOLIO I THINK
THERE ARE SOME REAL CHALLENGES
WE NEED TO ADDRESS BUT PLEASE
HEAR THE CRITICISMS THAT I'M
GOING TO EXPRESS TODAY IN THE
SPIRIT OF TRYING TO MAKE THESE
THINGS BETTER AND STRONGER AS
OPPOSED TO THE ELIMINATE THEM. I
ALSO WANT TO ECHO MY COLLEAGUE
DALLAS'S REMARKS ESPECIALLY WITH
RESPECT TO THE IMPORTANT
OPPORTUNITY THAT WE NOW HAVE
BEFORE US WITH I THINK
SUBSTANTIAL NEW EVIDENCE ABOUT
THE STATE OF THE PROGRAM AS WELL
AS INSIGHTS FROM OTHER PROGRAMS
AROUND THE WORLD HAVE CONFRONTED
SIMILAR CHALLENGES. I WANT TO
TALK ABOUT THREE ISSUES TODAY IN
MY OPENING REMARKS- I WILL PICK
UP ON THE ISSUE OF THE SCOPE AND
PLAN SHOPPED AT THE DALLAS
TALKED ABOUT AS WELL AS THE
ALLOWANCE BANKING CHAPTER AND
I'LL CLOSE MY REMARKS BY TALKING
ABOUT THE ROLE OF CARBON OFFSETS
WHICH PLAYED A SIGNIFICANT PART
IN THE LARGE A COMPLIANCE
PROGRAM THAT WE HAVE IN
CALIFORNIA. SO TO START WITH- I
WANT TO ECHO I THINK POLICY
MAKERS HAVE BEEN STRUGGLING TO
BALANCE THREE GOALS ONLY TWO OF
WHICH I THINK CAN BE PRESENT AT
ANY GIVEN TIME. ONE IS TO HAVE A
LARGE ROLE FOR THE CAP AND TRADE
PROGRAM IN ACHIEVING THE STATE'S
TWENTY THIRTY TARGET THE SECOND
IS THE PRESENCE OF A LARGE
ALLOWANCE BANKER RELATIVELY LOW
MARKET PRICES AND THE THIRD IS A
PLAN THAT CAN GET US TO OUR
TWENTY THIRTY CALL. IT IS
POSSIBLE IN MY OPINION TO GET
TWO OF OUT OF THESE THREE BUT
NOT ALL THREE AT THE SAME TIME
AND I THINK WE HAVE PRETTY
CONCLUSIVE EVIDENCE THAT WE HAVE
A VERY LARGE ALLOWANCE BANK AND
THAT THREATENS THE ABILITY OF A
STRATEGY THAT RELIES HEAVILY ON
THIS PROGRAM TO GET TO THE
TWENTY THIRTY TARGET.
POLICYMAKERS HAVE IMPORTANT
CHOICES AS TO THE SIZE AND ROLE
OF THE PROGRAM IN AN OVERALL
SCOPE OF THE PLAN PROCESS AND
THOSE POLICY CHOICES NEED TO
CONFRONT A SERIES OF TRADEOFFS
WHICH I KNOW ARE FAMILIAR TO THE
LEADERSHIP IN THE EXECUTIVE
BRANCH AS WELL AS THE
LEGISLATURE. SO JUST FOCUS. ON
THIS ISSUE FOR A SECOND BECAUSE
I THINK. BALANCING THE ROLE THAT
AND TRADE. IS A- PART. QUESTIONS
AND IF THE STATE WISHES TO
MAINTAIN A PLANNED ROLE FOR CAP
AND TRADE THAT IS SIGNIFICANT.
IN THE TWENTY SEVENTEEN SCOPING
PLAN CAP AND TRADE IS THE SINGLE
LARGEST DRIVER. OF OUR STRATEGY
TO GET TO TWENTY THIRTY IT WAS-
REPRESENTING ABOUT 38% OF THE
CUMULATIVE REDUCTIONS OVER THIS
DECADE. NEARLY HALF OF THE
REDUCTIONS THAT CARB EXTRACTED
AND THAT PLANNING PROCESS TO BE
ACHIEVED BY TWENTY THIRTY. TO
CHOOSE SOMETHING SIMILAR I THINK
WE'RE GOING TO NEED TO MAKE
SUBSTANTIAL CHANGES TO THE
PROGRAM- AND IN ORDER TO FIGURE
OUT. WHAT CHANGES NEED TO BE
MADE IF ANY IT'S GOINGTO BE
IMPORTANT IN THE SCOPE AND
PLANNING PROCESS. THE CARD IS
CURRENTLY UNDER UNDERTAKING. TO
QUANTITATIVELY PROJECT WHERE
CARB THING SUBMISSIONS IS GOING
TO BE. AND TO IDENTIFY A ROLE
FOR THE PROGRAM IN CLOSING THE
GAP BETWEEN CALIFORNIA'S
SUCCESSFUL AND AMBITIOUS CLIMATE
POLICIES. AND ITS CLIMATE
TARGETS FOR THE YEAR TWENTY
THIRTY- THE SCOPING PLAN CHAPTER
IN THE I. IMAC REPORT- DISCUSSES
HOW. THE MODELING WORK TODAY IT
DOESN'T ALLOW US TO ADDRESS ANY
OF THOSE QUESTIONS BUT I
UNDERSTAND AND I'M SURE WE'LL
HEAR MORE FROM THE NEXT
PANELISTS THAT. NEW MODELING
WORK IS EXPECTED SOON THAT MAY
ADDRESS THOSE QUESTIONS. THE
ECHO DALLAS'S COMMENTS THOSE
DEVELOPMENTS WOULD BE VERY
WELCOME AND I THINK WE PROVIDE A
CONSTRUCTIVE BASIS FOR FIGURING
OUT WHERE WE NEED TO CALL. WITH
RESPECT TO THE ALLOWANCE BANKING
CHAPTER I WANT TO HIGHLIGHT JUST
A COUPLE OF ISSUES- BEFORE
MOVING ON TO OFFSETS- THE
CHAPTER OBSERVES USING CARBS
DATA THAT THE ALLOWANCE BANK IS
ABOUT THREE HUNDRED AND TWENTY
ONE MILLION ALLOWANCES. THAT'S A
VERY TECHNICAL NUMBER BUT TO PUT
IT IN CONTEXT. IT'S ABOUT TWICE
THE SCENARIO THE CARD CONSIDERED
IN ITS TWENTY EIGHTEEN
RULEMAKING IMPLEMENTING AB THREE
NINETY EIGHT. AND IT'S
SIGNIFICANTLY LARGER THAN THE
CUMULATIVE PRODUCTIONS CARB
IDENTIFIED AS NECESSARY COMING
FROM THE ENTIRE CAP AND TRADE
PROGRAM OVER THIS DECADE. IN ITS
PREVIOUS COUPLE PLANNED PROCESS
SO. DALLAS IS ABSOLUTELY RIGHT
TO SAY THERE'S NO. MAGIC NUMBER
OR TARGET WE SHOULD BE AIMING
FOR BUT I THINK WE HAVE SOME
PRETTY CLEAR EVIDENCE THAT.
THINGS ARE VERY DIFFERENT THAN
WHAT WE EXPECTED- I THINK IT'S
ALSO IMPORTANT TO NOTE THAT-
WE'VE HAD THESE DISCUSSIONS AS-
SENATOR WHITE HOUSE YOU'LL NO.
DOUBT RECALL IN PREVIOUS
COMMITTEE HEARINGS. WERE VERY
FOLKS INCLUDING MY- AND ALL. WHO
RAY CONCERN ABOUT THE- BACK FOR
FIVE YEARS AGO- SOME FOLKS MADE
QUANTITATIVE PREDICTIONS AND
THEY THE ALLOWANCE BANKING
CHAPTER TRACKS THE OUTCOMES
RELATIVE TO THOSE PREDICTIONS. I
THINK IT'S IMPORTANT TO
HIGHLIGHT THE PEOPLE WHO RAISE
CONCERNS ABOUT THE EXTENT OF THE
ALLOWANCE BANK. MADE PREDICTIONS
THAT WERE VERY CLOSE TO WHAT
WE'VE OBSERVED. AND WHAT WAS
OBSERVED A SIGNIFICANTLY
DIFFERENT THAN PAST REGULATORY
PLANNING DOCUMENTS IDENTIFIED
AGAIN THE SPIRIT OF THIS IS TO
IDENTIFY THE NEED. FOR A NEW
DISCUSSION. RATHER THAN JUST
SORT OF COUNT POINTS IN THE
PAST. BUT I THINK IT IS
IMPORTANT TO OBSERVE THAT THE
EVIDENCE IS CONSISTENT WITH
THOSE WHO HAVE EXPRESSED
CONCERNS ABOUT THESE ISSUES AND
THAT WE REALLY NEED TO MOVE
FORWARD IN A CONSTRUCTIVE WAY TO
ADDRESS THIS PROBLEM. IF CAP AND
TRADE IS GOING TO PLAY A
SIGNIFICANT ROLE IN OUR PATH TO
TWENTY THIRTY. THE LAST TOPIC I
WANT TO TALK ABOUT IS THE CARBON
OFFSETS PROGRAM- THIS IS ALSO A
VERY CONTROVERSIAL TPIC- AND I
THINK A COUPLE THINGS TO SAY
ABOUT IT TO PUT IT IN CONTEXT-
THE ALSO THE PROGRAM IS OFTEN
DESCRIBED AS A SMALL PART OF THE
CAPITATE PROGRAM. BUT THAT IS
NOT IN FACT TRUE ABOUT A HUNDRED
AND SIXTY MILLION FOREST CARBON
OFFSETS- WERE AT THEIR BOSS SETS
WERE USED IN THE- COMPLIANCE
PERIOD FOR THE FIRST. THREE
COMPLIANCE PERIODS- AND- THAT IS
IT IS A SIGNIFICANT NUMBER
ACROSS BOTH CALIFORNIA AND
QUEBEC. ABOUT 80% OF THOSE
OFFSETS COME FROM THE FOREST
CARBON OFFSETS PROGRAM. SO WHEN
WE THINK ABOUT A LARGE ALLOWANCE
BANK AT ABOUT THREE HUNDRED
TWENTY ONE MILLION ALLOWANCES
AND OFFSET USE IN THE
NEIGHBORHOOD OF A HUNDRED SIXTY
MILLION ALLOWANCES. I HOPE YOU
CAN SEE THAT THE CONNECTION
BETWEEN ABILITY THE ABILITY OF
COMPLIANCE ENTITIES OF THE
PROGRAM. TO RELY ON. OFFSETS AND
SAVE OR NOT USE ALLOWANCES IN
RETURN. IS A SIGNIFICANT PART OF
THE SORT OF MACRO CONDITIONS
WERE OBSERVING WHAT THE PROGRAM
MAY HAVE TOO MANY COMPLAINTS.
INSTRUMENTS AT AT AT PRESENT. I
WANT TO DISCUSS THREE PER. THAT
ARE REFERENCED IN THE CHAPTER-
WHICH BOTH ADDRESSES THESE
TECHNICAL CONCERNS WITH THE
PERFORMANCE OF THE FOREST
OFFSETS PROGRAM. THAT MAKES A
NUMBER OF STRUCTURAL
RECOMMENDATIONS POLICYMAKERS
COULD CONSIDER TO MAKE BIG
PICTURE ADJUSTMENTS TO THE
PROGRAM IF THEY AGREE WITH THESE
CONCERNS. THE THREE PROBLEMS ARE
THE FACT THAT THERE APPEAR TO BE
SOME PROJECTS PARTICIPATING IN
THE PROGRAMS THAT ARE CLAIMING
CREDIT FOR BUSINESS AS USUAL
ACTIVITIES. IT IS DIFFICULT TO
PRECISELY IDENTIFY WHICHAND HOW
MANY BECAUSE- THE QUESTION OF
WHETHER OR NOT SOMEBODY IS
TAKING CREDIT FOR BUSINESS AS
USUAL IS HARD TO DETERMINE
DEFINITIVELY. BUT THERE'S BEEN
SOME SIGNIFICANT REPORTING THAT
SUGGESTS LARGE PROJECTS IN THE
SYSTEM MAY IN FACT BE DOING
THIS. THERE IS DOCUMENTED PEER
REVIEWED EVIDENCE FROM A STUDY
THAT I PARTICIPATED IN THAT WE
DISCUSSED IN THE REPORT. ABOUT
HOW PERHAPS AS MANY AS ONE OUT
OF THREE OF THE CREDITS ISSUED
TO THE FOREST OFFSET PROJECTS DO
NOT REFLECT REAL CLIMATE
BENEFITS. AS A RESULT OF
WEAKNESSES IN THE PROGRAM RULES
THAT- PARTICIPANTS IN THE
PROGRAM ARE FINANCIALLY
ARBITRAGE. AND THE REPORT ALSO
DISCUSSES A NUMBER OF CONCERNS
RELATED TO THE PERMANENCE OF
CARBON CLAIMS BEING MADE BEFORE
THE FOREST OFFSETS. ALL
CALIFORNIANS KNOW THE WILDFIRES
WE'VE EXPERIENCED OVER THE LAST
TWO YEARS HAVE BEEN RECORD
BREAKING. UNFORTUNATELY THOSE
FIRES ALSO HIT QUITE A FEW LARGE
OFFSET PROJECTS AND WE ARE
LOOKING AT PERHAPS SOMETHING ON
THE ORDER OF THE SHIFT. OF THE
STATE'S INSURANCE PROGRAM OR ITS
SO CALLED BUFFER POOL FOR
PROTECTING THE PERMANENCE OF
THESE FORESTS CARBON CLAIMS. MAY
HAVE BEEN LOST IN THE FIRES AND
I THINK IT RAISES SIGNIFICANT
CONCERNS ABOUT WHETHER OR NOT
THIS PROGRAM IS PREPARED TO MAKE
THE PROTECTIONS THAT ARE
REQUIRED. TO MAKE A FOREST
CARBON CLAIM RESEMBLE ANYTHING
RESEMBLING THE ON GOING
COMMISSIONS. THE LAST THING I
WANT TO SAY AND I'LL JUST CLOSE
WITH THIS IS THAT. MY COLLEAGUES
AND I WHO WORKED ON ONE OF THESE
CRITICAL STUDIES PUT OUT OUR
WORK IN PUBLIC ABOUT TEN MONTHS
AGO WE- SHARED OPENLY WITH DATA
AND METHODS. THAT WERE
ACCESSIBLE TO ALL WE WORKED WITH
PULITZER PRIZE WINNING REPORTER.
WHO HELPED REPORT ON THE STORY
WHO SHARED THE STUDY WITH CARBON
OFFSET DEVELOPERS INTERESTED
PROGRAM PARTICIPANTS OF THE
GOVERNMENT. TEN MONTHS LATER WE
DON'T REALLY HAVE ANYTHING IN
THE WAY OF SUBSTANTIVE CRITIQUES
FROM FOLKS WHO DISAGREE WITH THE
STUDY- IT HAS BEEN PEER REVIEWED
AND HAS BEEN ACCEPTED INTO THE
ACADEMIC LITERATURE AND I JUST
WANT TO FLAG. THE PRIMARY
RESPONSE I'VE RECEIVED FROM CARB
STAFF. HAS BEEN TO BE HONEST AD
HOMINEM AND FALSE ATTACKS ABOUT
THE CLAIM THAT I FALSELY
PARTICIPATED IN LITIGATION
AGAINST THE AIR RESOURCES BOARD.
THIS CRITICISM HAS BEEN REPEATED
AGAINST ME AND MY CO AUTHORS IT
IS A FALSE CRITICISM- AND IT'S
REALLY DISTURBING TO ME AS
SOMEBODY WHO'S WORKED ON THESE
ISSUES FOR MANY YEARS THAT. WHEN
WE HAVE SUCH TECHNICALLY
COMPLICATED PROGRAMS THAT WE GET
INTO BASICALLY MUD SLINGING THAT
IS EXTREMELY AD HOMINEM AND I
THINK DEEPLY INAPPROPRIATE. SO I
WANT TO MENTION THAT BECAUSE I
THINK WE CAN'T GET AWAY FROM
THOSE ISSUES IF WE'RE GOING TO
HAVE AN HONEST CONVERSATION
ABOUT WHERE THE STATE NEEDS TO
GO- AND I HOPE YOU ALL HEAR MY
CONCERNS TODAY IS BEING. ISSUED
IN THE SPIRIT OF TRYING TO MAKE
THIS PROGRAM BETTER AND HELPS
THE STATE ACHIEVE. A REALLY
SIGNIFICANT AN AMBITIOUS GOAL
THAT WE NEED TO LEAD. IF WE'RE
GOING TO. HOW GET THIS JOB DONE
AND MAKE THE FUTURE BETTER FOR
ALL OF US SO THANK YOU. THANK
YOU IN OUR THANK YOU FOR THE-
THE BRIEFING FROM THE IMAX CHAIR
AND VICE CHAIR LET'S TURN TO THE
ADMINISTRATION. OUR FIRST
PANELISTS WILL BE SECRETARY- JR
BLOOM FELL- WITH THE CALIFORNIA-
ENVIRONMENT PROTECTION AGENCY
SECRETARY GOOD MORNING. GOOD
MORNING HMO CASKEY AND MEMBERS I
REALLY APPRECIATE THE
OPPORTUNITY TO BE HERE THIS
MORNING- AS YOU MAY KNOW AND
MENTIONED THAT KELLY P. A.'S THE
CAN BE NOT THE INDEPENDENT
COMMISSIONS MARKET ADVISORY
COMMITTEE A MOUTHFUL. AND WE
APPRECIATE THE OPPORTUNITY TO
HAVE THIS DISCUSSION ABOUT CAP
AND TRADE. AND THE
RECOMMENDATIONS OF THE I. E. MAX
TWENTY TWENTY ONE RECALL THANKS
ALSO- TO THE IP MAC MEMBERS SO
THEY'RE IMPORTANT WHETHER THEY
DO TO EVALUATE THE CAP AND TRADE
PROGRAM. I'VE REALLY IMPORTANT
VOICES IN THESE DISCUSSIONS AND
WE VALUE THE TIME THAT THEY
DEDICATE TO THIS COMMITTEE-
REALLY WANT TO PERSONALLY THANK
DALLAS- AND THEN EIGHT THIS
MORNING AND I'M SORRY THAT. THIS
KIND OF THINGS ARE UGLY PEOPLE
LISTENING TO THAT YOU KNOW
YOU'VE GOT A LOT OF TIME INTO
THESE COMMITTEES AND THAT TASK
BUT THEY REALLY THEY REALLY DO
ADD TO THAT THE PUBLIC DIALOGUE.
ON ON MANY IMPORTANT ISSUES LIKE
CAP AND TRADE- AND I WANT TO
STOP BY FOLLOWING UP ON THE
LETTER THAT I SENT TO YOU
SENATOR WHITE HOUSE GAVE WAY
BACK. IN THE DARK AGES OF TWENTY
TWENTY. BECAUSE OF IT IT'S LIKE
DIFFERENT- THAT WAS RELATED
CAPITAL TRADE. WE TOOK. VERY
SERIOUSLY THE COMES. AT THAT.
AND IMPLEMENT THE STEPS OUTLINED
IN THAT LETTER. THE FASTER THOSE
STEPS IS TO WORK CLOSELY WITH
COBB ON THE BET ON THE
DEVELOPMENT OF THE SCOPING PLAN
. J. RANDOLPH AND I OUT PARTNERS
IN THIS EFFORT TO SET CALIFORNIA
ON THE PASS THROUGH THIS CODING
PLAN TO ACHIEVING OUT TWENTY
THIRTY. AND ACABA NEUTRALITY
TARGETS AND AS CHAIR AT RANDOLPH
WILL DESCRIBE. COPS CURRENTLY IN
THE PROCESS OF DEVELOPING THE
MODELING FOR THE SCENARIOS THAT
WILL SHOW HOW WE'RE DOING IT
CHEATING THE TWENTY THIRTY
TARGET THE- DALLAS AND DANNY
MENTIONED. AND HOW WAS
SUCCESSFULLY ACHIEVED THE CARBON
NEUTRALITY TARGETS. THIS
MODELING WILL BE. AVAILABLE MID
MAP IN MID MARCH OF THIS YEAR
I'M SORRY JUST OVER A MONTH FROM
NOW- AND THE DEVELOPMENT OF THE
MODELS AND SCENARIOS. HAS
INVOLVED HAS INVOLVED
SIGNIFICANT STAKEHOLDER INPUT
INCLUDING COMPACT LIKE THE
MEMBERS OF THE I. E. MAC AND
IMPLANTS AND THEY DECIDED TO.
ENVIRONMENTAL JUSTICE ADVISORY
COMMITTEE. BASED ON THIS TWENTY
THIRTY MODELING AND THE
RESULTING- THE RESULTING
SCENARIOS COULD SHOWS. THAT SOME
OF OUR PROGRAMS AND REGULATIONS
NEED TO BE TIGHTENED IN ORDER TO
HAVE A LONGER TIME TARGETS. THE
SIGNAL FROM THE SCOPING PLAN
WILL KICK OFF THE NEXT STEP.
WHICH WOULD BE REVISIONS TO OUR
REGULATIONS AND PROGRAMS SUCH AS
CAP AND TRADE LOWCOCK FUEL
STANDARD AND THE RENEWABLE
PORTFOLIO STANDARD TO NAME JUST
A FEW. INSTANT FOR SKIPPING PLAN
MAY SHOW THAT AS A PROPORTION OF
TOTAL REDUCTIONS THE CAP CAP AND
TRADE DOES NOT NEED TO PLAY SUCH
A MAJOR ROLE IN OUR TOOL BOX
GOING FULL. THE STRINGENCY OF
REGULATIONS THAT HAVE BEEN
DEVELOPED SINCE THAT LAST CABIN
PLANT AS WELL AS A VERY
SIGNIFICANT EMPHASIS ON
INCENTIVE PROGRAMS IN THE LAST
BUDGET. AS WELL AS THOSE
PROPOSING THE GOVERNOR'S TWENTY
TWENTY TO TWENTY TWENTY THREE
BUDGET. WILL GO A LONG WAY IN
DRIVING EMISSION REDUCTIONS IN
THE VERY INDUSTRIES THAT CAP AND
TRADE KAPPA. ANY POTENTIAL
REVISIONS THE CAP AND TRADE OR
OTHER REGULATIONS WOULD THEN
TAKE PLACE IN THE CONTEXT OF A
MULTI STAKEHOLDER ROBUST
RULEMAKING PROCESS. AS J.
RANDALL WILL DESCRIBE. THESE
RULE MAKING PROCESS SEES
GENERALLY TAKE MORE THAN A YEAR
IN PART TO ENSURE ALL RELEVANT
STAKEHOLDERS HAVE THE
OPPORTUNITY TO WEIGH IN. IN
ORDER FOR THE PUBLIC EIGHT KEY
STAKEHOLDERS TO TRUST OUR
REGULAR ENTRY PROCESS SEES. IT'S
ESSENTIAL WE FOLLOWED THE STEP
WISE APPROACH. VERY IMPORTANTLY
ANY CHANGES WOULD HAVE TO BE
CONSISTENT WITH STATUTORY
REQUIREMENTS AND WHEN IT COMES
TO CAP AND TRADE OR ANY OTHER
PROGRAM CODE INSIDE BY
LEGISLATION. WE SEE OUR ROLE IS
IMPLEMENTING THE PROGRAM BASED
ON STATUTORY REQUIREMENTS.
EIGHTY THREE NINETY EIGHT LAYS
OUT MANY OF THE REQUIREMENTS OF
CAP AND TRADE AND THE
ADMINISTRATION IS FOCUSED ON
IMPLEMENTING THOSE REQUIREMENTS
. WE MENTION IN THE TWENTY
TWENTY LETTER TO CHAT WHY CASKEY
THAT WOULD LIKE TO WORK WITH THE
LEGISLATURE TO IDENTIFY AREAS
BRAND NEW LEGISLATION COULD
FURTHER THE SUCCESSFUL
IMPLEMENTATION OF CALIFORNIA'S
CLIMATE STRATEGY. I HOPE WE CAN
ENGAGE IN THOSE DISCUSSIONS ONCE
WE HAVE A SENSE THROUGH THE
SCOPING PLAN OF AREAS WHERE
LEGISLATION WILL BE THE MOST
NEED IT. J. ROUNDUP WILL GO INTO
DETAIL ABOUT THE RECOMMENDATIONS
IN THE IRON MASK FOR PAUL LET ME
BRIEFLY HIGHLIGHT A COUPLE OF
TOPICS. AS WE HAD FROM THE
PREVIOUS BECAUSE THE I. IMAC
TWENTY TWENTY ONE REPORT
PROVIDES RECOMMENDATIONS FOCUS
ON THE SCOPING PLAN ALLOWANCE
BANKING ADMISSIONS MARKET DESIGN
AND PROGRAM REFORM. CARBON
OFFSETS AND EMISSION LEAKAGE
MIDDAY AND MITIGATION MEASURES
THESE RECOMMENDATIONS ARE
EXTREMELY HELPFUL AND THOUGHT
PROVOKING AND I SHOULD I CAN
ASSURE THE EMAIL MEMBERS AND THE
SENATORS ON THIS COMMITTEE THEY
WERE CAREFULLY CONSIDERING EACH
OF THEM WITHIN THE CONTEXT OF
THE DELIVERY. PROCESS I
DESCRIBED EARLIER. I REALLY
SPOKE ABOUT THE SKILL BEING
PLANNED SO LET'S BRIEFLY DISCUSS
UNUSED ALLOWANCES AND LEAKAGE.
ON UNUSED ALLOWANCES WE AGREE
WITH THE I AM BACK THE ISSUE
NEEDS TO BE SAID THE STUDY. IS
DIFFICULT TO KNOW EXACTLY HOW
MANY UNUSED ALLOWANCES ARE
APPROPRIATE AND ACCEPTABLE. THIS
IS HOW MANY WOULD BE TOO MANY.
WHAT I SUGGEST IS COPPER BACK
THE LEFT OF. THE END OF TWENTY
TWENTY THREE. DURING THE STATE
OF THE- FOR AND IT NEST. SHOULD
YOUR LEADS LET JUST CHANGES TO
INITIAL THE NUMBER OF ALLOW. IN
THE SYSTEM IS APPROPRIATE. WHICH
SUGGESTS THE END OF TWENTY
TWENTY THREE BECAUSE BY THE END
OF. THE FINALIZES COPING PLAN
WE'LL HAVE MORE DATA UNDER THE
EIGHTY THREE NINETY EIGHT DESIGN
PROGRAM. AND WILL HAVE HAD THE
OPPORTUNITY TO HAVE WORKSHOPS ON
THE TOPIC BEFORE COMING BACK TO
THE LEGISLATURE. AND HE BRIEFLY
TO ON THE ISSUE OF LEAKAGE THIS
IS WHY ECONOMIC ACTIVITY AND
ASSOCIATED EMISSIONS SHIFT FROM
CALIFORNIA TO OTHER
JURISDICTIONS JURISDICTIONS
WHERE EMISSIONS. ARE REGULATED
LESS STRINGENTLY ALL NOT AT ALL.
WHAT'S DIFFICULT TO TRACK THE
POSSIBILITY OF LEAKAGE IN THE
SYSTEM. A CAP AND TRADE PROGRAM
DOES HAVE GUARDRAILS IN PLACE TO
PREVENT LEAKAGE. WE ALSO WORK
VERY HARD TO EXPLORE I. GHG
REGULATIONS OF THE
JURISDICTIONS. IN AN EFFORT TO
DE INCENTIVIZE LEAKAGE. WE
UNDERSTAND THE LEGISLATURE'S
CONCERN ABOUT THIS ISSUE. EIGHTY
THREE NINETY EIGHT RSS DURABLE
AND TWENTY TWENTY FIVE ABOUT
LEAKAGE RISKS ASSOCIATED WITH
CAP AND TRADE IN THIS REPORT.
WILL INCLUDE RECOMMENDATIONS TO
THE LEGISLATURE ON THE NECESSARY
STATUTORY CHANGES TO THE-PROGRAM. GEORGIE'S LEAKAGE
INCLUDING THE POTENTIAL FOR A
BORDER CARBON ADJUSTMENT. KABUL
BEGIN THE PROCESS TO DESIGN A
STUDY TO ASSESS LEAKAGE IN
ADVANCE OF THE TWENTY TWENTY
FIVE RECALL DUE TO THE
LEGISLATURE. THIS STUDY WILL
FOCUS ON THE MANUFACTURING
INDUSTRIES WITH THE GOAL OF A
RETROSPECTIVE EVALUATION AS
SUGGESTED IN THE EMAIL REPORT TO
DETERMINE ITS LEAKAGE MAY HAVE A
CAT. THIS WILL INFORM ANY
POTENTIAL FUTURE REGULATORY
CHANGES TO MITIGATE THE RISK.
FINALLY I'D LIKE TO ADDRESS THE
CRITICAL FOCUS WE PLACE ON
ENSURING THE PROGRAMS BEING
DISCUSSED HERE TODAY HAVE THE
GREATEST POSITIVE BENEFITS IN
COMMUNITIES. THAT HAVE SUFFERED
DISPROPORTIONATELY FROM
POLLUTION BUT- THE OFFICE OF
ENVIRONMENTAL HEALTH HAZARD
ASSESSMENT WE HAVE JUST RELEASED
A REPORT THAT SHOWS CRITERIA
POLLUTANTS HAVE GONE DOWN AROUND
FACILITIES SUBJECT TO CAP AND
TRADE. AND THE COMMUNITIES THAT
HAVE SEEN THE BIGGEST
IMPROVEMENTS ARE THE MOST
SIGNIFICANTLY DISADVANTAGED
COMMUNITIES. IT'S IMPORTANT TO
EMPHASIZE THAT THESE
IMPROVEMENTS ARE THE RESULT OF
CAP AND TRADE LETTER. INSTEAD
THE PRODUCT OF A SWEET
REGULATIONS AND INCENTIVES AIMED
AT REDUCING GHG ME. WORK MY
MISSIONS AND ADD TOXINS. I WANT
TO CLOSE BY AGAIN THANKING THE
IP MAC MEMBERS OF EVERY THORA
ANSEL RIPPLE. WE CLEARLY ALIGN
THE GOAL OF MAKING SURE THAT THE
SYSTEM WORKS AS WELL AS
POSSIBLE. I ALSO REALLY
APPRECIATE THE SENATE
SUBCOMMITTEE TO BRING US
TOGETHER TO DISCUSS THIS
IMPORTANT ISSUE. THANK YOU FOR
THE OPPORTUNITY TO PROVIDING
REMARKS TODAY AND I'M LOOKING
FORWARD TO HEARING FROM SHARE
RANDOLPH AND OUR OTHER
COLLEAGUES. THANK YOU CHAD WHY
CASKEY. THANK YOU SECRETARY AND
LET'S MOVE TO A- A CHAIR RANDALL
WHO INHERITED THIS SMALL
PROGRAM- GOOD MORNING AS THE
CHAIR OF THE- CALIFORNIA AIR
RESOURCES. BOARD- PLEASE GO
AHEAD. ALL RIGHT KIMORA. I AM.
GOING TO SHARE MY SCREEN- WITH A
GRIEF- AT. RSS AROUND THE
SKIPPING CLAN AND WANT TO MAKE
SURE EVERYBODY- IS- ABLE TO KIND
OF FOLLOW ALONG AND SEE WHAT WE
ARE EXPECTING SO FIRST LET ME
THANK YOU FOR. CONVENING THIS
DISCUSSION AS US SECRETARY
BLUMENFELD MENTIONED AND I AM
LOOKING FORWARD TO- THAT
DISCUSSION THIS MORNING. OKAY
AND I AM TRYING TO FIGURE OUT
HOW TO ADVANCE MY SLIDE THERE WE
GO. ALL RIGHT- THE FIRST TIME IN
A TALK ABOUT THE GREATER CONTEXT
FOR THAT I AM MAX
RECOMMENDATIONS- IN TERMS OF OUR
OVERALL CLIMATE PROGRAM WE
TALKED A LITTLE BIT ABOUT THIS
ALREADY THIS MORNING- THEY COME
IN THE CONTEXT OF- AT THE
PASSAGE OF AB THIRTY TWO IN TWO
THOUSAND AND SIX. I HAVE A CAP
AND TRADE PROGRAM HAS BEEN IN
OPERATION SINCE TWENTY THIRTEEN.
THIS GRAPHIC SHOWS SOME OF THE
PROGRESS WE'VE MADE SINCE AB
THIRTY TWO WAS SIGNED AND SINCE
WE STARTED THE SCOPING PLANNING
PROCESS. SINCE TWO THOUSAND
WE'VE MADE SIGNIFICANT PROGRESS
IN REDUCING EMISSIONS PER CAPITA
GDP AND IN TOTAL WHILE THE
ECONOMY. AND POPULATION
CONTINUED TO GROW. HI CHART
SHOWS WHICH SECTORS CONTRIBUTE
THE MOST TO OUR GHG EMISSIONS IN
THE AB THIRTY TWO GHG INVENTORY.
APPROXIMATELY HALF OF THE
INDUSTRIAL SECTOR IS RELATED TO
OIL AND GAS EXTRACTION AND
REFINING WHICH PUTS THE
TRANSPORTATION SECTOR AT ABOUT
50% OF THE STATE'S EMISSIONS.
IT'S IMPORTANT TO UNDERSTAND
WHERE THE IMAX RECOMMENDATIONS
FALL IN TERMS OF CALIFORNIA'S
MULTI LAYERED CLIMATE POLICY
FRAMEWORK AND SECRETARY
BLUMENFELD TOUCHED ON THIS
EARLIER. ALL OF OUR CLIMATE
POLICY FOLLOWS FROM STATE
LEGISLATION AND EXECUTIVE ORDERS
THAT GIVE CARBON OTHER STATE
AGENCIES THE AUTHORITY AND
DIRECTION TO ENACT GREENHOUSE
GAS REDUCTION REGULATIONS. AS
WELL AS DEFINED OUR CLIMATE
POLICY WHERE SPECIFIC EFFORT-
DIRECTION IS NEEDED. A. B.
THIRTY TWO REQUIRES CARD TO
UPDATE IN A DOCTOR'S COPING PLAN
EVERY FIVE YEARS THAT LAYS OUT
HOW THE STATE WILL ACHIEVE ITS
GHG REDUCTION GOALS. IT IS AN
ACTIONABLE PLAN TO IDENTIFY
OUTCOMES AND ACTIONS FOR ECONOMY
WIDE DECARBONISATION. THE
SCOPING PLAN DOES NOT RECOMMEND
SPECIFIC REGULATIONS MORE
IMPORTANTLY SPECIFIC CHANGES TO
EXISTING REGULATIONS. IT'S AFTER
FINALIZING THIS CABIN PLAN THAT
CARP AND OTHER STATE AGENCIES
ADOPTED REGULATIONS TO IMPLEMENT
POLICIES TO ACHIEVE THE GOALS
INCLUDED IN THE SCOPE AND CLAN
THIS INCLUDES THINGS SUCH AS THE
CALIFORNIA PUBLIC UTILITY
COMMISSIONS INTEGRATED RESOURCE
PLAN AND LONG TERM PROCUREMENT
PLAN WHICH IMPLEMENTS SP THIRTY
THREE FIFTY- AND WHICH I WORKED
ON QUITE A BIT IN MY PREVIOUS
ROLE. THE IMS RECOMMENDATIONS
ARE GENERALLY AT THIS LEVEL OF
POLICY DEVELOPMENT. AND ARE
ABOUT A SPECIFIC REGULATION. CAP
AND TRADE. WELL I'M NOT GONNA GO
THROUGH EVERY BULLET ON THE
SLIDE I JUST WANT TO NOTE THAT
THERE IS- A ROBUST PUBLIC
PROCESS THAT CARBON AT THEIR
AGENCIES FOLLOW WHEN WE DEVELOP
REGULATIONS. WE ARE WORK IS
GOVERNED BY THE ADMINISTRATIVE
PROCEDURES ACT WHICH PROVIDES
THE PUBLIC WITH THE OPPORTUNITY
TO PARTICIPATE AND INCREASE
PUBLIC ENGAGEMENT FORMAL NOTICE
SAYS REGULATORY TAXED. AND SOME
REGULATORY ACTIONS ALSO REQUIRE
AN ECONOMIC ANALYSIS THROUGH THE
DEVELOPMENT OF A STANDARDIZED
REGULATORY IMPACT ASSESSMENT OR
SYRIA. WHICH IS REQUIRED WHEN AN
AGENCY ESTIMATES THAT A PROPOSED
REGULATION HAS AN ECONOMIC
IMPACT EXCEEDING FIFTY MILLION
DOLLARS. AND THIS IS
PARTICULARLY RELEVANT WHEN
CONSIDERING CHANGES TO CAP AND
TRADE BECAUSE THE LEGISLATURE
DIRECTED CAR TO ACHIEVE THE
MAXIMUM TECHNOLOGICALLY FEASIBLE
AND COST EFFECTIVE GHG EMISSIONS
REDUCTION. SEVERAL STEPS IN THIS
PROCESS REQUIRE US TO ASSESS
ALTERNATIVES TO THE PROPOSED
ACTIONS AND TO ASSESS BOTH THE
ENVIRONMENTAL AND ECONOMIC
IMPACTS OF THOSE AUTHENTICATES.
SO I'M NOW INTERESTED IRAQ'S
MAIN RECOMMENDATIONS IN OUR MOST
RECENT REPORT. THEIR FIRST
RECOMMENDATION IS THAT THE
SCOPING PLAN SHOULD EXAMINE
PROGRESS TOWARDS TWENTY THIRTY
CLIMATE TARGET. AS DISCUSSED
EARLIER WE AGREE AT THE TWENTY
TWENTY TO SCOPING PLAN UPDATE
WILL ASSESS PROGRESS TOWARDS THE
TWENTY THIRTY TARGET IDENTIFIED
THE NEED FOR POTENTIAL
ADJUSTMENTS TO STAY ON TRACK AND
LAY OUT A PATH TO ACHIEVE CARBON
NEUTRALITY NO LATER THAN TWENTY
FORTY FIVE. TWENTY TWENTY TWO
SCOPING PLAN HAS A LONGER
PLANNING HORIZON THAN PREVIOUS
SCOPING PLAN. WHICH BEST FITS A
GREATER FOCUS ON THE OUTCOMES
NEEDED TO ACHIEVE GHG EMISSIONS
REDUCTIONS. THE PLAN WILL FOCUS
ON OUTCOMES IN TERMS OF
TECHNOLOGIES FUELS ENERGY
SOURCES AND INFRASTRUCTURE THAT
WILL NEED TO BE DEVELOPED TO
TRANSITION AWAY FROM FOSSIL
FUELS BY MID CENTURY. THE
RESULTS OF SCENARIO MODELING
WILL ALSO BE USED TO EVALUATE
THE PUBLIC HEALTH AND ECONOMIC
BENEFITS OF THE DIFFERENT
SCENARIOS. THIS COPING PLAN
PROVIDES AN ECONOMY WIDE
FRAMEWORK SPANNING MANY YEARS
AND THEREFORE AS NOTED EARLIER
DOES NOT DELVE INTO THE DESIGN
DETAILS OF THE SPECIFIC PROGRAMS
OR REGULATIONS. NOR DOES IT
SUPPLANT OR CREATE NEW STATUTES
AND REGULATIONS. THOSE
ACTIVITIES WILL OCCUR SEPARATELY. THIS WILL ANALYZE OUR PROGRESS
TOWARDS THE TWENTY THIRTY TARGET
- AND THE BOARD ASSESSED THE
ISSUE A BANK ALLOWANCES IN OUR
TWENTY EIGHTEEN RULEMAKING. AND
IS ALSO PREPARING A REPORT-
BOARD RESOLUTION EIGHTEEN FIFTY
ONE ON THE SPECIFIC ISSUE OF
BANK ALLOWANCES AND WHETHER OR
NOT THEY ARE HINDERING PROGRESS
TOWARDS- TWENTY THIRTY CALLS.
SOME ACTORS SOME ECONOMISTS HAVE
STUDIED WHO HAVE STUDIED THE
PROGRAM HAD HAVE ADVISED THAT
ARTIFICIALLY REMOVING UNUSED
ALLOWANCES NOW. COULD ONLY SERVE
TO INCREASE PRICES IN THE
PROGRAM WITHOUT CLEAR
CORRESPONDING EMISSIONS
REDUCTION BENEFITS. HOWEVER AS
AS THE OTHER PANELISTS HAVE
DISCUSSED WE MUST CONSIDER ANY
NUMBER OF THINGS ALLOWANCES IN
THE CONTEXT OF THE COMPLETE
PROGRAM. END DATE AND THE DESIGN
OF THE PROGRAM OVER THE YEARS.
IN TWENTY EIGHTEEN WE STRENGTHEN
THE SELF RATCHETING MECHANISM SO
THAT ALLOWANCES AND SOLD FOR
EIGHT AUCTIONS WOULD BE REMOVED
INTO THE ALLOW ITS PRICE
CONTAINMENT RESERVE. THROUGH
THIS MECHANISM MORE THAN THIRTY
SEVEN MILLION ALLOWANCES WERE
ALREADY MOVED INTO THE RESEARCH
. IN ADDITION IN SETTING THE
ALLOWANCE BUDGETS 421-202-1220
THIRTY WE REFLECTED THE FACT
THAT WE HAD ACHIEVED A TWENTY
TWENTY TARGET EARLY BY REMOVING
ALLOWANCES FROM GENERAL
CIRCULATION AND PLACING THEM IN
RESEARCH. ALSO AMENDED THE
REGULATION TO PERMANENTLY REMOVE
ALLOWANCES FOR GENERAL
CIRCULATION TO REFLECT CHANGES
TO THE ASSET USAGE LIMIT
ESTABLISHED BY EIGHTY THREE
NINETY EIGHT. I'M GONNA BRIEFLY
TALK A BIT MORE ABOUT THE EIGHTY
THREE NINETY EIGHT CHANGES TO
THE PROGRAM BECAUSE THEY DO HAVE
A DIRECT BEARING ON THIS ISSUE.
BUT I JUST WANT TO NOTE THAT.
THIS WORK DEMONSTRATES THAT WE
WILL MAKE CHANGES TO THE PROGRAM
WHEN NECESSARY INCLUDING
REMOVING ALLOWANCES FROM THE
GENERAL POOL TO BETTER ALIGN
WITH PROGRAM PERFORMANCE. BASED
ON. CAREFUL ANALYSIS AND A
REGULATORY PROCESS THAT IS
CONSISTENTLY STATUTE. WHEN WE
TALK ABOUT POTENTIAL CHANGES TO
THE CAP AND TRADE PROGRAM WE
MUST NOTE THAT THE PROGRAM HAS
CHANGED A LOT AS OF JANUARY
FIRST TWENTY TWENTY ONE AND MOST
OF THOSE CHANGES WERE MANDATED
BY EIGHTY THREE NINETY EIGHT. AS
PART OF THE PROGRAM GOING OUT TO
TWENTY THIRTY WE SET OUR CATS TO
REFLECT THE FACT THAT THE TWENTY
THIRTY GOALS ESTABLISHED BY SP
THIRTY TWO IS STEEPER THAN THE
TWENTY TWENTY GOAL. AS A RESULT
THE CAT SMITH FROM ABOUT 2% PER
YEAR FROM TWENTY THIRTEEN TO
TWENTY TWENTY. TWO ABOUT 4% PER
YEAR FROM TWENTY TWENTY ONE TO
TWENTY. AB THREE NINETY EIGHT
REQUIRED US TO SET A PRICE
CEILING STARTING IN JANUARY
TWENTY TWENTY ONE. AND THAT IS
NOW SET AT SEVENTY TWO DOLLARS
AND TWENTY NINE CENTS IN TWENTY
TWENTY TWO. WHICH LIKE THE PRICE
FLOOR GOES UP BY 5% PLUS
INFLATION EVERY YEAR. AB THREE
NINETY EIGHT ALSO REQUIRED US TO
REDESIGN THE ALLOWANCE PRICE
CONTAINMENT RESERVE WHICH SERVES
AS AN IMPORTANT COST CONTAINMENT
OF THE PROGRAM. TO HAVE TWO
TIERS. THESE TEARS ARE PARKED AT
THE 50% AND 75% MARK BETWEEN THE
PRICE FLOOR AND THE PRICE
CEILING WHICH THIS YEAR ARE AT
FORTY SIX DOLLARS AND FIVE CENTS
AND FIFTY NINE DOLLARS AND
SEVENTEEN CENTS RESPECTIVELY.
AND AGAIN THESE ALSO GO UP 5%
PLUS INFLATION. AB THREE NINETY
EIGHT ALSO REQUIRED A 1100%
LEAKAGE ASSISTANCE FACTOR TO BE
APPLIED TO ALL INDUSTRIAL
SOURCES. AND LASTLY AB THREE
NINETY EIGHT SUBSTANTIALLY
REDUCE THE AMOUNT OF ASSETS THAT
REGULATED ENTITIES CAN USE FROM
TWENTY TWENTY ONE TO TWENTY
THIRTY. FROM 8% 24% AND A HALF
THAT 4% MUST PROVIDE DIRECT
ENVIRONMENTAL BENEFITS
CALIFORNIA. THESE ARE ALL
DIFFERENT CONDITIONS FROM THE
FIRST THREE COMPLIANCE PERIODS
OF THE PROGRAM. BOASTS BOTH IN
TERMS OF BEING MORE STRINGENT
BUT ALSO MAKE CHANGES TO CONTAIN
PRICES AND AVOID MAKING. AND
IMPORTANTLY WE DON'T KNOW YET
WHAT THE FULL IMPACT OF THESE
CHANGES WILL BE ON THE LINE. I
AM NOT A REPORT ALSO INCLUDED
RECOMMENDATIONS ON ADJUSTING THE
AMOUNT SUPPLY IN RESPONSE TO
ACTUALLY HELP COMES. EFFECTIVELY
ENHANCING THE MARKET'S PRICE
FLOOR BY ADDING AN ADDITIONAL
EMISSIONS CONTAINMENT RESERVE
PRICE STEP. AS EXISTS IN OTHER
NORTH AMERICAN EMISSIONS TRADING
PROGRAMS AS DALLAS DESCRIBED
EARLIER. AS I JUST DESCRIBED ON
THE PREVIOUS SLIDE THE
LEGISLATURE WAITING THROUGH THE
PASSAGE OF AB THREE NINETY EIGHT
ON THE DESIGN OF THE PROGRAM.
AND MANY OF THOSE CHANGES
INCLUDING REINFORCING THE
REGULATORY MECHANISM FOR
REMOVING ALLOWANCES WHEN THERE
IS LOW DEMAND AT AUCTION. AND
ESTABLISHING THE TWO NEW PRICE
CONTAINMENT RESERVE TEARS AND
CRIES FEELING TOOK A BACK TOOK
EFFECT FULLY LAST YEAR. AND WE
HAVE LIMITED DATA ON THE IMPACT
OF THOSE CHANGES. AND WE WILL
ABSOLUTELY CONTINUE TO ASSESS
AND ADJUST AS NEEDED. THE
PROGRAM HAS SUPPORTED A STEADILY
INCREASING PRICING NOW AS NOTED
ON THE SLIDE. WHICH HAS SEEN
PERIODS OF BOTH LOW AND HIGH
DEMAND INCLUDING A SCENE IN
RECENT AUCTIONS. I'D ALSO LIKE
TO KNOW THAT WE MUST ALWAYS
CONSIDER WHAT ARE THE PRIORITY
METRICS TO UNDERSTAND THE
PERFORMANCE OF THE PROGRAM. FOR
THE CAP AND TRADE PROGRAM THOSE
METRICS MUST INCLUDE REVEALING
HOW EMISSIONS AND CRISIS FOR
ALLOWANCES ARE CHANGING OVER
TIME. NOW LET'S TALK ABOUT THE
IMF RECOMMENDATIONS REGARDING
ASSETS AS I NOTED A B. THIRTY
THREE NINETY EIGHT CUT THE ASSET
LIMIT IN HALF 24% IN RESPONSE TO
ENVIRONMENTAL JUSTICE CONCERNS.
AND THAT WILL ADJUST 26% WE HAVE
CONDUCTED PERIODIC REVIEWS OF
OUR OFFSET PROTOCOLS AND UPDATED
THEM BASED ON THE LATEST SCIENCE
. CARB HAS RESPONDED TO SOME OF
THE ACADEMIC CONCERNS RELATED TO
FOREST ASSET PROTOCOL AND AS
USUAL WE ARE CONSTANTLY
REVIEWING YOU DATED THAT MAY
WARRANT TECHNICAL UPDATES IN
OCTOBER OF TWENTY TWENTY ONE I
DIRECTED CARDS STAFF TO START
HOLDING WORKSHOPS THIS SUMMER TO
EVALUATE THE LATEST SCIENCE FOR
ANY POTENTIAL PROGRAM UPDATE.
AND TO DISCUSS THE CONCERNS
RAISED ON THE FOREST OFFSET
PROTOCOL. ONE THING I WANT TO
TOUCH ON BEFORE WE MOVE ON IT IS
THE IMPACT OF WILDFIRES ON
FORESTS ASSET PROJECTS. THIS IS
CLEARLY A SERIOUS ISSUE AS
CLIMATE CHANGE EXACERBATES OUR
WILDFIRE PROBLEM. WE FORESAW THE
POSSIBILITY OF WHAT WE CALL OUR
FIRST CELLS DUE TO WILDFIRE AND
OTHER DISTURBANCES SUCH AS PEST
INFESTATION WHEN THE OFFSET
PROGRAM IS DESIGNED. TO FORCE
OFFSET PROTOCOL TAKES INTO
ACCOUNT THESE RISK FACTORS BASED
ON THE BEST AVAILABLE DATA FROM
WHEN THE PROTOCOL WAS ADOPTED
AND LATER AMENDED. BASED ON THE
RISK FACTORS A PROJECT SPECIFIC
PERCENTAGE DISCOUNT DETERMINES
THE NUMBER OF CREDIT SATISFIED
INTO THE FOREST BUFFER ACCOUNT
WHICH SERVES AS AN INSURANCE
MECHANISM TO ENSURE PERMANENT.
TYPICALLY EACH PROJECT THAT IS
ISSUED CARBON OFFSET CREDITS
CONTRIBUTES BETWEEN SEVENTEEN
AND 19% OF THEIR TOTAL CREDIT
INTO THE BUFFER ACCOUNT. IN THE
EVENT OF A WILDFIRE DESTROYING
PART OF A PROJECT WE ESTIMATE
THE GREENHOUSE GAS EMISSIONS
REDUCTIONS LAST AND REQUIRE ANY
SORRY RETIRE AND EQUIVALENT
AMOUNT OF ASSETS FROM THE BUFFER
POOL TO MAINTAINING
ENVIRONMENTAL INTEGRITY OF THE
PROGRAM. SINCE OUR PROTOCOL
APPLIES TO PROJECTS ACROSS THE
COUNTRY THERE IS A WIDE VARIETY
OF FOREST TYPES AND LOCATIONS
CONTRIBUTING TO THE BUFFER POOL.
APPROXIMATELY THIRTY MILLION
CREDITS HAVE BEEN A TRICK
CONTRIBUTED TO THE PARK FOREST
BUFFER POOL TO DATE WITH EACH
NEW PROJECT CONTINUING TO
CONTRIBUTE. APPROXIMATELY ONE
POINT ONE MILLION CREDITS OR
LESS THAN 4% HAVE BEEN RETIRED
FROM THE FORCE AFTER ACCOUNT TO
DATE TO ACCOUNT FOR INVOLUNTARY
REVERSALS. THIS MEANS TO THE
EXTENT THAT PROJECTS DO NOT FACE
REVERSAL EVENTS THE PROGRAM
ACHIEVES MORE REDUCTIONS THAT
ARE PRESENTED IN THE ASSETS
PRODUCE. AS I NOTED WE WILL BE
TAKING INTO ACCOUNT THE LATEST
SCIENCE AS PART OF THE STAFF
WORKSHOPS THAT WILL BE CONVENED
LATER THIS SUMMER INCLUDING A
DISCUSSION. OF WILDFIRE RISKS.
FINALLY WITH RESPECT TO THE
RECOMMENDATIONS REGARDING THE
KIDS IT IS IMPORTANT TO NOTE
THAT EIGHTY THREE NINETY EIGHT
MANDATES THE LEAKAGE ASSISTANCE
FACTOR FOR ALL INDUSTRIAL
SOLUTIONS GOING FORWARD. AND
CARBS OUTPUT BASED ALLOCATION
METHODOLOGY FOR INDUSTRY IS
BASED ON ACTUAL UPDATING DATA.
CARB HAS IDENTIFIED LEAKAGE IN
THE ENERGY IMBALANCE MARKET AND
WE DO RETIRE ALLOWANCES RELATED
TO EM OUTSTANDING EMISSIONS TO
ADDRESS THIS LEAKAGE. I'LL NOTE
THAT CAR WAS FULLY ENGAGED WITH
OTHER STATES AND STATE AGENCIES
TO IMPROVE COORDINATION AND DEEP
IN WESTERN ELECTRICITY MARKETS
WHILE ENSURING THAT WE HAVE
ACCURATE GHG ACCOUNTING AND OUR
DRESSING LEAKAGE EIGHTY THREE
NINETY EIGHT ALSO REQUIRES US TO
REPORT TO THE LEGISLATURE BY THE
END OF TWENTY TWENTY FIVE ON THE
LAKE IS PROPOSED BY. OKAY I'M
GONNA GO THROUGH THE LAST FEW
SLIDES FAIRLY QUICKLY- JUST TO
NOTE THAT- WE ARE IN THE PROCESS
AS DISCUSSED EARLIER OF UPDATING
THE SCOPING PLAN- IT WILL LAY
OUT THE FOUNDATION FOR THE
DEVELOPMENT OF ALL OF OUR
CLIMATE REGULATIONS INCLUDING
CAP AND TRADE. WILL BE ASSESSING
PROGRESS TOWARD ACHIEVING THE
TWENTY THIRTY TARGET. BUT ALSO
RECOGNIZES THAT TWENTY THIRTY IS
A MILESTONE ON. WHERE RECENT
SCIENCE SAYS WE NEED TO BE BY
MID CENTURY SO WE CAN'T WAIT
UNTIL TWENTY TWO THIRTY ONE TO
START PLANNING FOR TWENTY FORTY
FIVE BECAUSE THE LEVEL OF
TRANSFORMATION IS NEEDED NEEDED
ACROSS THE ECONOMY IS
UNPRECEDENTED. SO WE NEED TO
LOOK FOR ACTIONS TO DEPLOY CLEAN
ENERGY AND CLEAN TECHNOLOGY TO
HIT THE TWENTY THIRTY TARGET AND
PUT US ON A PATH TOWARD
DECARBONIZING. TOWARD A
NEUTRALITY IN TWENTY FORTY FIVE
. YOU CAN'T DECOUPLE THE TWO
ANNOUNCED. THIS COPING PLAN WILL
HAVE THE LONGEST PLANNING
HORIZON OF ANY PREVIOUS SCOPING
PLAN. AND WE WILL PLACE A LARGER
FOCUS ON OUTCOMES WE IN NEED
NEED TO RICHIE'S BY TWENTY FORTY
FIVE IN IDENTIFYING OUTCOMES THE
MODELING WILL PROVIDE PAST FOR
CLEAN TECHNOLOGY ENERGY
DEPLOYMENT. FOR EXAMPLE THE RATE
OF SALES OF LIGHT DUTY ELECTRIC
VEHICLES OR ELECTRIC APPLIANCES
THESE METRICS IN ADDITION TO THE
ANNUAL GHG INVENTORY WILL HELP
US TRACK PROGRESS MOVING FORWARD
. THESE OUTCOMES WILL BE
CONSIDERED IN THE CONTEXT OF THE
CHEATING NEAR TERMAIR QUALITY
BENEFITS AND LONGER TERM GHG
BENEFITS. LASTLY I'LL NOTE THAT
THE STATUTE REQUIRES US TO ADOPT
THE SCRAPPING PLANNED BY THE END
OF TWENTY TWENTY TWO. WE HAVE
SEVERAL MILESTONES ALONG THE WAY
AN ENVELOPE VIRGINITY FOR THE
PUBLIC TO ENGAGE THROUGH
UPCOMING SCOPING PLAN WORKSHOPS
ENVIRONMENTAL JUSTICE ADVISORY
COMMITTEES. MEETINGS AND
COMMUNITY MEETINGS BEING PLANNED
FOR THIS SUMMER. WE PLAN TO
RELEASE THE DRAFT SCOPING PLAN
AND IT WILL BE PRESENTED TO THE
BOARD THIS SPRING. TOMORROW WE
ARE HOLDING A BOARD MEETING
WHERE WE ARE GOING TO DISCUSS-
THE PROGRESS UP TO TODAY OF THIS
WORK. AND WE WILL FOLLOW THE
RELEASE OF THE DRAFT WITH WORK
OVER THE SUMMER AND THE RELEASE
OF THE FINAL SCOPING PLAN IN
FALL TWENTY TWENTY TWO. FOR
PROPOSED PRODUCTION BY THE BOARD
. AND THAT CONCLUDES MY
PRESENTATION AND I LOOK FORWARD
TO OUR DISCUSSION. THANK YOU-
ALAS FAMILIES SERVE IS ROSS
BROWN WHO'S WITH THE LEGISLATIVE
ANALYST'S OFFICE. MR BROWN GOOD
MORNING. WITH SADIE. GOOD
MORNING MR CHAIRMAN MEMBERS FIVE
ROSS BROWN AT THE LEGISLATIVE
ANALYST'S OFFICE I'M GONNA TRY
TO OFFER SOME COMMENTS AND
HIGHLIGHTS SOME QUESTIONS FOR
THE COMMITTEE TO EXPLORE IN
TODAY'S HEARING MANY OF THE
ISSUES AND QUESTIONS RT COME UP
IN DISCUSSION TODAY TRY NOT TO
REPEAT ANYTHING BUT I DO THINK
SOME OF THE- KEY QUESTIONS AND
ISSUES ARE SO IMPORTANT THAT IT
MIGHT BE HELPFUL TO EMPHASIZE
SOME- FIRST BEFORE I GET STARTED
I WANT TO DISCLOSE THAT I AM
THAT ELENA REPRESENTATIVES- THAT
SERVES AS A NON VOTING MEMBER ON
THAT YOU MAX. OUT SO IN PRACTICE
THAT MEANS I PARTICIPATED IN THE
COMMITTEE'S OPEN MEETINGS AND
PROVIDE COMMENTS AND FEEDBACK
SOME ON OUTLINES AND DRAFTS. AND
WE APPRECIATED BEING PART OF
THAT PROCESS AND WORKING WITH
THE COMMITTEE MEMBERS- HOWEVER
THE REPORT FROM MY MAC IS AN
ALLY OF DOCUMENT AND DOESN'T
REFLECT ONLY A RECOMMENDATIONS
NECESSARILY AND SO MY COMMENTS
HERE IN THE IN THE HEARING TODAY
ARE ARE REALLY AS LEGISLATIVE
STOPPER STAFFER AND
REPRESENTATIVES. FROM LA YOU
KNOW- NOW WE THAT SAID WELL WE
DO THINK THAT THERE'S A LOT OF
WORK THAT WENT INTO THE RIVER.
AND A LOT OF THEM. FIND A
SENTENCE. FOR THE LETTERS- AND
INTEREST OF TIME AT TO HIGHLIGHT
A FEW OF THOSE ISSUES THAT WE
SENT HER IMPORTANT. OVER POLICY
ISSUES. YOU'RE THE FIRST IS-
THIS. PLAN AND I THINK OF THE
MOST IMPORTANT PARTS OF A- PRO.
AND ONE OF THE TO TELL. THAT HAD
A THERE'S A SCOPING PROCESS.
REALLY SHOULD- SHOWED WHY ON HOW
THE STATE REACHES ITS GREENHOUSE
GAS GOALS NOT JUST IN TERMS OF
WHAT TECHNOLOGIES COULD BE USED
TO ACHIEVE THOSE GOALS BUT-
EXAMINATION OF THE POLICY
OPTIONS- IT DOESN'T HAVE TO BE-
GOT A DETAILED ANALYSIS OF.
EVERY SINGLE PROGRAM DESIGN
CHANGE BUT- SHOULD HELP IN OUR
VIEW INFORM POLICY DISCUSSIONS
FOR EXAMPLE WHAT ARE THE COSTS
OF DIFFERENT POLICY OPTIONS.
WHAT ARE THE BENEFITS HOW THOSE
COSTS AND BENEFITS DISTRIBUTED
ACROSS DIFFERENT HOUSEHOLDS AND
BUSINESSES. WHAT'S THE ROLE OF
CAP AND TRADE IN WHEN AND WHY
MIGHT THE STATEMENT WENT OUT
OTHER. COMPLEMENTARY POLICIES.
THIS IS REALLY ONE OF THE MAIN
POTENTIAL BENEFITS OF THE
SCOPING PLAN PROCESS INFORMING
THAT POLICY DOES POLICY AND
BUDGET DECISIONS FOR YOU AS A
LEGISLATURE- GOING FORWARD AND
UNDERSTAND THE TRADE OFFS AND WE
WORRY ABOUT- YOU KNOW DEPENDING
ON KIND OF WHAT WHAT THAT
MODELING LOOKS LIKE AND WHAT
THAT PROCESS LOOKS LIKE THE
CURRENT APPROACH MIGHT NOT
PROVIDE THAT TYPE BUT NOW ALSO
SO I THINK THAT'S- A LEGISLATURE
MIGHT WANT TO ASK YOU
MINISTRATION WHETHER THAT. THAT
SCOPING PLAN PROCESS WILL FOCUS
ON SOME OF THOSE POLICY OPTIONS
AND TRADE OFFS. AND OTHER
EXAMINE THE ROLE OF
CONCENTRATING DESIGN OF. COUNTRY
AS PART OF THAT PROCESS. THE
SECOND. I WANT TO HIGHLIGHT A
THE ISSUE ALLOWANCE- AND WE
THINK IT'S A- HELPFUL TO HER.
KIND OF AN AGREED. PUBLIC MET.
FOR THE SIZE OF THE ALLOWANCE
BANK. WHICH THREE HUNDRED TWENTY
ONE MILLION TONNE. THERE TO
TWENTY- MAKE A JUDGMENT ABOUT
THE- TO WHICH SETS UP. AS MUCH
MORE TO. IN THE ON A LOT OF
REQUESTS. FOR EXAMPLE WHAT THE
PRIMARY GOAL OF THE PROGRAM AS-
WHETHER THE PROGRAM WILL
CONTINUE DOWN TWENTY THIRTY. BUT
SOME OF THE POTENTIAL PROBLEMS
HIGHLIGHTED IN THE REPORT ARE
CONSISTENT WITH RESPECT WE- AT
B. L. L. AT HIGHLIGHTED SEVERAL
YEARS AGO ABOUT THE SUPPLY OF
ALLOWANCES NOT. NOT BEING
CONSISTENT WITH THE
LEGISLATURE'S TWENTY THIRTY
GOALS. AND SO IN OTHER WORDS
WITHOUT CHANGES WE DEFEND AS
CURRENTLY DESIGNED THERE'S A
VERY REAL REST OF THE PROGRAM.
DOESN'T DRIVE EMISSION
REDUCTIONS THE STATE IS COMING
ON TO ME THAT'S A TWENTY THIRTY
G. ISSUE GOALS. SO AS A RESULT
WE THINK IT'S IMPORTANT TO HAVE
A CONVERSATION ABOUT WHETHER
ADJUSTMENTS ARE NEEDED AND WHAT
THE TRADE OFFS MIGHT DEAL. WITH
SOME OF THOSE DIFFERENT
ADJUSTMENTS. SO THE COMMITTEE MY
- ADMINISTRATION. THANKS THE
ALLOW BANKERS IT IS A RE RISK- I
. THINK I HEARD SECRETARY BLOOM
KILLED MANY. AND REPORTING BACK
ON THE ALLOWANCE THANK BY THE
END OF TWENTY TWENTY-ONE KEY
QUESTION IS THAT A VALUATION-
TOO LATE- SOMETIMES- REGULATORY
PROCESS CAN TAKE. A YEAR OR TWO
AND SO- THERE'S A SIGNIFICANT
AMOUNT OF INFORMATION ON THE
SIZE OF THE BANK NOW. AND YOU
WAIT UNTIL THE MIDDLE OF THE
TWENTY TWENTIES- YOU COULD MAKE
IT MORE DIFFICULT FOR THE STATE
TO MAKE ADJUSTMENTS IN TIME TO
MEET ITS TWENTY THIRTY GOALS.
THE THIRD- AND FINALISED I
REALLY HIGHLIGHT IS JUSTICE OF A
MARKER OF. SO TO FIX THE
LEGISLATURE. AGREES THAT THERE
IS A PROBLEM WITH THE PROGRAM
STRINGENCY AND THAT THERE ARE.
THERE THERE ARE A LOT OF
POTENTIAL OPTIONS FOR CHANGES
SOME. THEY ALL REQUIRE CAREFUL
THOUGHT AND DESIGN AND I'M NOT
GOING TO GO INTO ALL OF THEM IN
DETAIL. BUT I WANT TO HIGHLIGHT
A COUPLE OF KEY THOUGHTS AGAIN
REITERATING SOME OF THE THINGS
THAT ARE IN THE- REPORT. ONE IS
THAT WE AGREE THAT IT'S BETTER
TO MAKE ADJUSTMENTS TO THE
SUPPLY OF ALLOWANCES AND KIND OF
A RULE BASED MANNER SO- YOU KNOW
SETTING UP RULES AND CRITERIA.
CLEARLY AND PUBLICLY ON KIND OF
WHEN ADJUSTMENTS WILL BE MADE
AND WHY IT RATHER THAN KIND OF
AN AD HOC BASIS WE THINK THAT.
HELPS PROVIDE A GREATER MARKET
CERTAINTY- AND THE ADJUSTMENTS
WE THINK SHOULD BE MADE WITH THE
LEGISLATURE'S CLIMATE GOALS IN
MIND SORT OF FOCUS ON- KIND OF
WHAT THE MISSION GOALS.
PRODUCING EMISSIONS IN A WAY
THAT IS CONSISTENT WITH THOSE
GOALS. ARE IT IS IMPORTANT AS MY
COLLEAGUE- COLLEAGUES HAVE
MENTIONED THAT ADJUSTMENTS COULD
RESULT IN. HIGHER PRICES WHICH
DOES HAVE A STRAIGHT OFF OF
FINANCIAL IMPLICATIONS IN TERMS
OF HIGHER HOUSEHOLD ENERGY COSTS
FOR EXAMPLE- HOWEVER WE THINK.
DISCUSSIONS ABOUT MAYBE GETTING
THOSE TYPES OF IMPACTS ARE ARE
IMPORTANT BUT SHOULDN'T. REALLY
BE PRIMARILY FOCUSED ON ON SOME
OF THE OTHER PROGRAM DESIGN
FEATURES A CIVICALLY. THINGS
LIKE- PRICE DECLINES IN THE
LEVEL THE PRICE CEILING WHICH IS
KIND OF SPECIFICALLY TARGETED AT
TRYING TO MAKE IT MITIGATE THAT
AFFECTS. AND IMPORTANTLY THE USE
OF ALLOWANCE REVENUE- SO FOR
EXAMPLE LET'S SAY YOUR MIGHT
WANT TO CONSIDER. HOW REVENUE
CAN BE USED TO PARK PARTIALLY OR
FULLY OFFSET. ANY OF THOSE
CONCERNS ABOUT FINANCIAL IMPACTS
THROUGH TAX REBATES OR OR TAX
REDUCTIONS OR SOMETHING LIKE
THAT- SO THAT'S THAT'S KIND OF
AN IMPORTANT SET OF
CONSIDERATIONS AROUND KIND OF
THE- THE CONVERSATION AROUND
AWHILE AND SUPPLY BUT WE DO
THINK DECISIONS ABOUT. ADJUSTING
THE ALLOWANCE SUPPLY SHOULD.
SHOULD BE MAINLY FOCUSED ON KIND
OF THE GREENHOUSE GAS GOALS AND
THEN SOME OF THESE OTHER
MECHANISMS COULD BE USED TO.
MITIGATE. ANY POTENTIAL
FINANCIAL AND I. GOT IMPACT. SO
IN MY COMMENTS. HERE BUT IF
WE'RE- TO. ANY QUESTIONS OF
COMMITTEE HAS YOUR TODAY AND
PROVIDE ANY. ASSISTANCE THIS
ISSUE GOING FOR. THANK YOU. I'M
GOING TO WORK YOU VERY. LOOK
START OFF WITH THE- SENDER TO.
HAS QUESTIONS. THANK YOU RICHARD
TODAY I AM. I HAVE IN ORDER GO
THROUGH SO I WILL NOT LOSE TRACK
SO I WANT TO START UP WITH- SO
THEY IS FOR ANYBODY ON THE
COMMITTEE. WHAT IS THE CURRENT
NUMBER OF POLLUTERS THAT BUY
SELL OR TRADE ALLOWANCES TO
REDUCE EMISSIONS WITHIN THE
STATE. IS THERE IS THERE DATA ON
THAT. YES SENATOR- OFF THE TOP
MY HEAD YOU KNOW THE EXACT
NUMBER BUT THERE'S AROUND FOUR
HUNDRED ENTITIES THAT ARE
REGULATED IN THE STATE OF
CALIFORNIA THE CHAIR THE CARD
CHAIRMAN WISH TO CORRECT ME I
CAN PULL THAT UP FOR YOU. THERE
ARE ALSO A SIGNIFICANT NUMBER OF
PARTICIPANTS WHO ARE NOT WHAT WE
CALL COMPLIANCE ENTITIES PEOPLE
ARE SUBJECT TO THE REQUIREMENTS
OF THE PROGRAM BUT WHO
PARTICIPATE AS INVESTORS-
SPECULATORS AS OTHER KINDS OF
ACTORS IN THE FINANCIAL SIDE OF
THIS MARKET BUT ON THE ORDER OF
FOUR HUNDRED- COMPANIES AND
ENTITIES IN THE STATE OF
CALIFORNIA. WHAT ABOUT OUT OF
STATE. CENTER OFF THE TOP OF MY
HEAD I DON'T KNOW- AND I SUSPECT
THAT. I KNOW KARMA HAS THAT
INFORMATION I'LL TRY AND LOOK IT
UP WHILE WE'RE SPEAKING HERE.
OKAY THEN MY NEXT QUESTION IS
FOR THE I. E. MAC. ONE OF THE
CARBON. WHAT OTHER CARBON COST
IN CALIFORNIA AND HOW THEY
INTERACT WITH THE COST OF CARBON
IN CAP AND TRADE. IS THERE AN
OVERLAP. A FEDERAL JUDGE FIRST
OTHERS MAY WANT TO ADD ON TO
THIS. IS CLEARLY AN OVERLAP AND
BY DESIGN AND OVERLAP THE- THE-
REGULATIONS THAT AFFECT
EVERYTHING FROM THE LOW CARBON
FUEL STANDARD TO. ENTER YOUR
CYSTITIS PERFORMANCE STANDARDS
OF CENTRAL ALL OF WHAT MANY OF
THEM. AFFECT THE SAME SOURCES
THAT ARE COVERED BY THE CAP AND
TRADE PROGRAM CAP AND TRADE THE
COUPLE MARKET COVERS
APPROXIMATELY 75% OF THE TOTAL
GREENHOUSE GAS EMISSIONS FROM
THE STATE ABOUT US. GENERALLY
YOU CAN THINK ABOUT IS THE
CARBON DIOXIDE EMISSIONS
SOCIALLY WITH FOSSIL FUEL
COMBUSTION. AND THEN MANY OTHER
SOURCES DISPERSED- GREENHOUSE
GAS EMISSIONS WOULD INCLUDE.
METHANE FROM A MUNICIPAL SOLID
WASTE STORED NATURAL GAS USE-
OTHER EMISSIONS OF SOCIAL
NETWORKING LANDS. AND SUCH FOR
THE- SHOULD CELTIC YOU'RE- YES
SOME THANK YOU THE NOW THIS IS
FOR- DELEO- MISTER ROSS HOW MUCH
CLOSER WOULD WE BE TOWARDS
REACHING OUR TWENTY THIRTY. GOAL
OF GREENHOUSE GAS REDUCTIONS AT
THE STATE BEGAN COUNTING CARBON
EMISSIONS FROM WILDFIRES.
SENATOR DOLLY- MEANS TO THE NET
I JUST MY- INITIAL REACTION IS
THE NET EMISSIONS FROM FORESTS
ARE A LITTLE BIT MORE DIFFICULT
SOURCE OF EMISSIONS TO COUNT- IN
PART BECAUSE THERE'S A LOT OF
ANNUAL VARIATION AND WILDFIRE
RELATED EMISSIONS OF FOR
EXAMPLE- I THINK IN TWENTY
TWENTY AND THE ESTIMATE WAS THAT
THERE WERE OVER A HUNDRED
MILLION TONS. OF EMISSIONS FROM
WILDFIRES BUT THE YEAR BEFORE IT
WAS CLOSER TO FIVE MILLION TIMES
A LOT OF IT DEPENDS ON THE
ANNUAL BERRY ATION. PLUS THE NET
IMPACT ON CARBON I'M GONNA NEED
TO TAKE INTO ACCOUNT SOME OF THE
CARBON THAT'S BEEN SEQUESTERED
IN STORED EACH YEAR SO I THINK.
IT'S SAFE TO SAY THAT SOME YEARS
ADDING WILDFIRE EMISSIONS WOULD
PUT US FURTHER AWAY FROM OUR
GREENHOUSE GAS GOALS AND IN SOME
CASES KIND OF QUITE A BIT
FURTHER. BUT IN OTHER YEARS- YOU
KNOW MAYBE NOT THAT MUCH OF A
DIFFERENCE OF THE LEGISLATURE
MIGHT WANT TO THINK ABOUT IT
ABOUT THE ISSUE GIVEN THIS
ANNUAL VARIATION AND KIND OF
LONGER TIME HORIZONS KIND OF A
DECADE AT A TIME BECAUSE. THERE
IS A LOT OF THIS ANNUAL
FLUCTUATION. WELL DOES YOUR YOUR
WAY WE DON'T. WE DON'T COUNT
THOSE CARD WE DO COUNT FOREST
FIRE. SO IT IS A TO MAKE THAT
STATEMENT I TO BUILD TRY TO GET
A GET US THE LARGEST TO COUNTER
WE DON'T CARE SO THAT THE NEXT
QUESTION WOULD BE. THIS COULD BE
FOUR DEPARTMENT FINANCE R. A. R.
B. WHAT WOULD IT LOOK LIKE IF
THE STATE BEGAN ACCOUNT FORCED
EMISSIONS TOWARDS OUR STATEWIDE
GOAL. I THINK THAT AS AS ROSS
NOTED IT IS CHALLENGING TO-
CALCULATE- THAT GHG EMISSIONS
FROM. WILDFIRE GIVEN THAT- SOME
OF ITS NATURAL SOME OF ITS-
ANTHROPOGENIC- AND SO I DON'T
KNOW THAT WE HAVE. AN ESTIMATE
OF WHAT THAT WOULD. WHAT THAT
WOULD LOOK LIKE WE DO- TRACK
WILDFIRE EMISSIONS- WE ASSESS
THE HEALTH IMPACTS OF WILDFIRE
EMISSIONS. AND THE STATE HAS. OF
COURSE. BEEN PUTTING SIGNIFICANT
RESOURCES AND EFFORT INTO
REDUCING WILDFIRES- SO AS- IN
THE NATURAL AND WORKING LANDS
CHAPTER OF THE SCOPING PLAN
WE'RE GOING TO TRY TO DO AS
MUCH. ANALYSIS OF THAT AS
POSSIBLE. OKAY THANK YOU SO MY
NEXT QUESTION IS GOING TO BE FOR
MR CALLING WARD I THANK YOU FOR
BEING HERE TODAY- HI I HAVE. IN
PRESENT THE ANNUAL REPORT FROM
THE INDEPENDENT EMISSIONS MARKET
ADVISORY COMMITTEE THAT YOU
HELPED WRITE. IN READING THAT
REPORT OTHER RECOMMENDATIONS IN
REVIEWING THE ARTICLE ON THE
REPORT. IN THE INSIDE EPA WHICH
WAS TITLED PEACE. THE PANEL
WANTS HIGHER GHG CREDIT CRISIS.
WOULD YOU LIKE THE FLOOR OF THE
PRICE WOULD YOU WOULD YOU LIKE
TO. THE FLOOR PRICE OF CARBON
INCREASED IN THE CAP AND TRADE
PROGRAM. THANK YOU FOR THE
QUESTION SENATOR ADJUSTER
BRIEFLY CLARIFY THE I MAC REPORT
DOES NOT CALL FOR THE
APPROPRIATE PRICE DOUBLED THAT
SHOULD BE SET- BUT I DO WANT TO
ANSWER YOUR QUESTION DIRECTLY
BECAUSE I THINK YOU RAISE A VERY
IMPORTANT QUESTION- MY PERSONAL
OPINION IS THAT. THE PRICE FOR
WE CURRENTLY HAVE IS NOT
CONSISTENT WITH THE CAPITATE
PROGRAM PLAYING A SIGNIFICANT
ROLE IN DRIVING OUR EMISSIONS
REDUCTIONS TO THE TWENTY THIRTY
TARGET SO IF POLICYMAKERS WISH
TO HAVE A LARGE ROLE FOR THIS
PROGRAM AND WISH TO HIT THE
LEGISLATIVELY MANDATED TARGET.
AND I THINK PRICES DO NEED TO BE
HIGHER THAN THE CURRENT PRICE
FOR- BUT AGAIN JUST TO CLARIFY
THE REPORT DOESN'T SPECIFICALLY
CALL FOR- A PARTICULAR PRICE
LEVEL THAT IS OBVIOUSLY A POLICY
QUESTION FOR THE ADMINISTRATION
AND TO SOME EXTENT THE
LEGISLATURE AS WELL- I'M NOT
FAMILIAR WITH THE WITH THE
COVERAGE YOU SITE BUT I WANTED
TO CLARIFY THAT. VERY BRIEFLY IF
I MAY SENATOR- WITH RESPECT TO
WILDFIRE MISSIONS QUESTION THIS
IS AN ISSUE OF COLLEAGUES AND
ARE WRKING ON RIGHT NOW I'LL BE
HAPPY TO FOLLOW UP WITH YOU ON
THE OTHER COMMITTEE MEMBERS WHEN
YOU DON'T HAVE MEGA FIRES LIKE
WE SAW IN THE TWENTY TWENTY TO
TWENTY TWENTY ONE SEASONS. FIRES
ARE NOT THAT ARE NOT BAD THE
FORESTS ARE PROBABLY CLOSE TO A
SINK OR TO HELPING US AND WHEN
WE HAVE THE PRESENCE OF THESE
BAD YEARS FORCE MAKE THE
CHALLENGE HARDER TO ANSWER YOUR
QUESTION ABOUT WHETHER OR NOT
INCLUDING FORESTS MAKES IT
EASIER OR HARDER I THINK WE ARE
LOOKING AT A SITUATION WHERE
FORESTS ARE ACTUALLY HURTING THE
STATE'S ABILITY TO ACHIEVE AND
THAT COMICAL BECAUSE OF THE FIRE
RISK THAT WESTERN FORCES FACE IN
PARTICULAR- GET HAPPY TO FOLLOW
UP ON ANY OF THAT. I WILL. I
WANTED. TALK WITH YOU ABOUT THAT
WHEN I WHEN TO FOLLOW UP ON MY-
ORIGINAL. WHAT OF. SO WHAT DO
YOU THINK THE PRICE OF CARBON
SHOULD BE SHOULD BE FIFTY SIXTY
DOLLARS. HUNDRED WHAT WHAT WOULD
THAT LOOK LIKE I KNOW THAT-
DIVIDED ADMINISTRATION ESTIMATES
IT SHOULD BE AROUND FIFTY ONE.
DOLLARS YES YOU'RE REFERRING TO
THE WHAT'S CALLED THE SOCIAL
COST OF CARBON WHICH IS A FAIRLY
STANDARD WAY THAT ACADEMICS HAVE
THOUGHT ABOUT. THE LONG TERM
SOCIAL DAMAGES ASSOCIATED WITH
POLLUTING THE ATMOSPHERE WITH
CARBON AND OTHER GREENHOUSE GAS
POLLUTION SO I THINK THAT'S
RELEVANT MY COLLEAGUE DALLAS
KNOWS A GREAT DEAL ABOUT THAT
WORK- I'M- AGAIN. I'M NOT IN ANY
WAY TRYING TO DODGE YOUR
QUESTION THIS IS A POLICY
QUESTION THAT NEEDS TO BE
ADDRESSED. OUR JOB AND THE IF
THE ADVISORY COMMITTEE AT LEAST
AS I SEE IT. IS TO ADVISE ON THE
CHOICES THE POLICIES ARE MAKERS
ARE MAKING AND WHETHER OR NOT
THEY'RE CONSISTENT SO THE BEST
ANSWER I CAN GIVE YOU IT IS.
VERY DIFFICULT TO SPECIFY A
PRECISE NUMBER. BUT THE NUMBER
NEEDS TO BE ALIGNED WITH THE
POLICY STRATEGY. AND SO A KEY
PREDICATE TO YOUR QUESTION IS
HOW MUCH OF A ROLE THIS PROGRAM
SHOULD BE PLAYING. IN ORDER TO
GET TO OUR TARGET. THERE ARE
OTHER POLICIES AND MEASURES WE
USE SOME OF WHICH ARE RELATIVELY
COST EFFECTIVE SOME OF WHICH ARE
RELATIVELY NOT COST EFFECTIVE.
AND THE COMBINATION OF POLICIES
IS GOING TO ADDRESS THE QUESTION
OF WHAT THE OVERALL COST PROFILE
WOULD BE TO GET THERE- I THINK
THIS IS AN EXTREMELY DIFFICULT
ISSUE THE MODEL THAT I
SYMPATHIZE WITH THE CHALLENGE
FACING THEIR RESOURCES BOARD
AND- DRESSING THE TYPE OF
QUESTION YOU'RE ASKING WHICH I
THINK NEEDS TO BE MADE EXPLICIT.
AND ONE OF THE BIG CHALLENGES WE
HAVE RIGHT NOW. IS THERE AREN'T
CLEAR EXPECTATIONS ARE WHAT THAT
NUMBER SHOULD BE. I THINK THAT
UNCERTAINTY CREATES CHALLENGES
IN THE LONG RUN THAT ARE THAT
ARE MORE PROBLEMATIC THAN TRYING
TO SET A CORRECT NUMBER. AND A
FISCAL POLICY THAT ADDRESSES THE
CONSEQUENCES OF THAT NUMBER.
WITH WITH ALL DUE RESPECT- I
THINK THIS IS THE KEY QUESTION
THAT NEEDS TO BE ANSWERED
BECAUSE THIS LEGISLATURE
CONTINUALLY. PASSES LEGISLATION
TO SET TARGETS. WE HAVE A TWENTY
THIRD GOAL. WITH THAT NEEDS TO
BE SET AND ACHIEVE THOSE THERE'S
AN IMPACT TO THE CONSUMER I MEAN
. WHEN THE CONSUMER AT THE END
OF THE DAY IN IN IN- TWO
THOUSAND SIXTEEN STANDARDIZED
REGULATORY IMPACT ASSESSMENT ON
CAP AND TRADE PROGRAM BY CAR
THEY STATED THE FOLLOWING
CONTENT THIS IS THIS IS FOR
EVERY FOR EVERY. TEN DOLLARS IN
THE ALLOWANCE COST. THE GALLON
OF GAS GOES UP NINE CENTS A
GALLON OF DIESEL GOES UP TEN
CENTS. BUT FOR EVERY TEN
DOLLARS. NATURAL GAS GOES UP
POINT FIVE. PER THERM
ELECTRICITY RATES GO UP SIX
DOLLARS AND THIRTY FIVE CENTS
PER MEGAWATT SO THAT'S SIX CENTS
A KILOWATT. SIX POINT THREE FIVE
CENTS PER KILOWATT HOUR- SO THIS
IS THIS IS THE QUESTION NEED TO
BE ASKED BECAUSE- IF WE DO GO TO
. SOME NUMBER WHATEVER THAT
NUMBER IS TO ACHIEVE THE GOAL
IT'S GOING TO DIRECTLY IMPACT
THE COST OF LIVING TO EVERY
SINGLE CALIFORNIAN. IN IN AND
THAT'S IF YOU HAVEN'T NOTICED- I
WILL BE I'M BERNARD SHAW HAS HIS
HAND UP SO MAYBE HE'S THE CHAIR
OF THE- I MAC. DOCTOR WANTED TO
GIVE IT A CRACK. THANK YOU. I
AGREE WITH EVERYTHING THAT DANNY
COHEN WORDS. A WORD FOR WORD. I
THINK. IT'S WORTH NOTING THAT
THE- IN THE NEXT WEEK MONTHS IF
NOT WEEKS I WOULD EXPECT THE BY
DEMONSTRATION TO REVISE THE
SOCIAL COST OF CARBON AND IT
WILL. IT'S CONFIDENTIAL NOW AND
I DON'T HAVE THAT INFORMATION.
BUT BASED ON THE LITTER ON AN
EXTENSIVE ADDITIONAL LITERATURE
SINCE LAST TIME WAS UPDATED. I
THINK THE SOCIAL COST OF CARBON
ESTIMATES WILL DOUBLE OR MORE
WILL BE A THREE DAY JUST IN
TERMS OF THE- NATIONAL ELSE
LITTLE WHAT THE IMPACT ON
SOCIETY AS PER TON OF CARBON.
ADMITTED HOWEVER. IS DANNY
STARTED TO ANSWER. DOES THAT-
YEAH SHOULD YOU WANTED FROM AN
ECONOMIC FOR THAT'S WITH PRICE
OF COVERAGE BE BUT IT'S NOT WHAT
THE PRICE OF CARBON CAN BE IT'S
NOT SUSTAINABLE POLITICALLY OR
ECONOMICALLY I WOULD ARGUE ABOUT
MY PAY GRADE SENATOR BUT THAT
STATE CANNOT SUPPORT SUSTAINED A
TYPE OF A PRICE LEVEL WITH THE
ACTING INDIVIDUALLY AS A STATE
SO THEREFORE THAT'S WHY THE
WHOLE DESIGN OF CALIFORNIA'S
CLIMATE POLICY PORTFOLIO.
INVOLVES USING A CARBON PRICE TO
MAKE SURE THAT THERE'S NO LOW
COST MR REDUCTIONS LOOK BEHIND
BUT ALSO IT FEARS OF REGULATORY
MEASURES TO TRY TO DRIVE
INNOVATION AND INVESTMENT AND
TRY TO ACHIEVE CARBON REDUCTIONS
A WAY THAT WILL JUST TRIGGER
LEAKAGE ACROSS THE FACILITY THE
- THAT'S SUCH A WRECK WITH
RESPECT YOUR SPECIFIC QUESTION
ABOUT WHAT WHAT I ADVOCATE FOR
PRICE FOR TO BE INCREASED OR NOT
AS THE AGENDAS OF THE NETWORK
SAID THAT IS NOT OUR JOB BUT I
WILL POINT OUT THE RIGHT NOW
SINCE THE PRICE IS WELL TEN OR
TWELVE DOLLARS ABOVE THE PRICE
FLOOR. I DON'T SEE WHERE HOW
WOULD HELP THE STATE GOALS IN
ANY WAY EXCEPT FOR THE CUTE
AFFORDABILITY QUESTION YOU JUST
RAISE KEEPING OUT OF MIND I
DOESN'T OPEN CIRCLES ANYWAY TO
SEE THE PRICE COME BACK DOWN AND
DROP TEN DOLLARS BACK TO THE
PRESS FOR SO THERE IS AN
OPPORTUNITY IN THIS PART THE
SCOPING PLAN PROCESS I THINK
THAT THINK ABOUT THESE THINGS
ALL SLICKLY AND FINALLY. WE ARE
THE COMMITTEE IDENTIFIED A
VARIETY OF POLICIES THAT ARE
THERE COULD BE POSSIBLE AND ONE
OF THOSE WOULD NOT JUST BE TO
RAISE THE PRICE FOR BETTER
INCREASE SO IT'S A PRICE
RESPONSE TO SUPPLY FOOD WHEN
IT'S CHEAPER TO ACHIEVE A MISS
REDUCTIONS MORE EMISSION
REDUCTIONS OR KERR OR BECOMES
MORE EXPENSIVE TO DO SO BUT MORE
MISSIONAL ELSE'S MODEM TO THE
MARKET SO THAT'S WHY I WENT TO
PREVIOUSLY HAD SOME WAX
DESCRIBING ADDITIONAL PRICE
STEPPER PRICE STEPS THAT COULD
BE ADDED TO THE MARKET. I THINK
THAT MIGHT BE A REFORM THAT
WOULD BE BETTER THAN JUST
INCREASING THE PRICE FOR
SECRETARY RUMSFELD- BUT
WITHSTANDING THE- HEDGE FUND MAN
. ARE THE UNITED STATES HAVE
THERE IN HERE- CAN YOU. AS
SIMPLY TO SAY THAT I THINK
RANDALL. SAID ISRAEL WELL I'M
VISAS ARE NOT NEW EXCLUSIVE WE
CAN REDUCE. GREENHOUSE GAS AND
I'LL POLLUTANTS AND- MANAGER FOR
AND THAT AND I THINK SHE WAS
TALKING ABOUT SOME OF THE WAYS
THAT EIGHTY THREE NINETY EIGHT
DOES THAT- WE'RE INCREDIBLY
FOCUSED INTO THE TALLY ON THIS
ISSUE OF AFFORDABILITY- AND THAT
HAS TO BE INTEGRATED INTO EVERY
ELEMENT OF. HOW WE PLAN HOW WE
EXAMINE WHAT WE'RE DOING HOW
WE'RE DOING AND THAT AND I
THINK. PART OF THE DISCUSSION
THAT YOU'LLFOCUSING ON AND
HELPING US FOCUS ON IS IF YOU
JUST LOOK A CAP AND TRADE IN
ISOLATION OF ALL THE OTHER
PROGRAMS AND REGULATIONS AND
INCENTIVES AND INNOVATION-
YOU'RE NOT GOING TO GET THE FULL
PICTURE OF HOW WE'RE GONNA.
TACKLE OUR PRODUCTION GOALS- BUT
MAKE NO MISTAKE WE ARE WE ARE
INCREDIBLY FOCUSED ON THINGS FOR
INSTANCE WHEN YOU LOOK AT WHAT
THAT CALIFORNIA ENERGY
COMMISSION. IS DOING ON ENERGY
EFFICIENCY THAT HELPS PEOPLE
SAVE ON THEIR ENERGY BILLS- WEEK
IN WEEK OUT THE SAME IS NOW TRUE
WHEN YOU LOOK AT THE TOTAL COST
OF. MAINTAINING AND OWNING AN
ELECTRIC VEHICLE THIS IS THE
FUEL AT THE PUMP AND WE'RE
PUTTING IN TIME TOGETHER WITH
THE LEGISLATURE'S SIGNIFICANT
FUNDING INTO LOW INCOME PROGRAMS
TO. HELP BRIDGE THOSE
AFFORDABILITY GAP SO
AFFORDABILITY IS A VERY SHE'S
CONCERNED. THAT WE SHARE AND
JUST TO GO BACK TO- CHECK THAT
TROLLS COMMENT- THE SOCIAL COST
OF CARBON IS AND WHAT THE
IMPACTS OF CARBON HOW THEY
NEGATIVELY AFFECT OUR ECONOMY
OUR HEALTH- IT ISN'T DIRECTLY
ATTRIBUTABLE TO THE WALK KABIN
SHOULD COST WITHIN THE CAP AND
TRADE- ANY. MARKET BASED
MECHANISM THAT THAT SEPARATE-
ISSUES IN TO CONFLATE THEM I
THINK- LEADS AN IMPRESSION THE
OLDEST COST NEEDS TO BE BORN
THROUGH THE CAP AND TRADE
PROGRAM. WE NEED TO JUST
RECOGNIZE THAT COBB AND IS
HAVING INCREDIBLY DAMAGING
EFFECTS ON OUR HEALTH TODAY AS
YOU ARTICULATED ON. WILDFIRE
SMOKE ALONE- BUT LOOK AT THE
DROUGHT FOR US- AND THE EXTREME
HEAT IMPACTS THAT THERE'S A
WHOLE LOT OF CALCULATED INTO THE
SOCIAL COST. OF CARBON- AND SO
WE ARE PAYING FOR THEM. AND I
AND I THINK WHAT WE'RE TRYING TO
DO COLLECTIVELY IS COME OUT WITH
A SET OF MEASURES THAT REDUCE
CARBON. AT THE SAME TIME DON'T
HAVE TO TALK ABOUT. STUFF
CALIFORNIANS. SENATOR ALL MY
PURSE ALL THOSE IN BUT I THINK
THE KEY THING I HEARD A THERE
WAS A HOLISTIC. SO I'VE BEEN
HERE TEN YEARS AND UNLIMITED
HERE. AND I'VE BEEN TALKING
ABOUT. BILL FOREST FIRE IN. WE
SEEM TO USE IT AS WE BURNED
ALMOST FOUR POINT THREE MILLION
ACRES. TWO THOUSAND EIGHTEEN TO
TWO THOUSAND AND TWENTY ONE I
BELIEVE IT IS. SO WHEN YOU TALK
ABOUT. THAT THAT'S OUR SEEK THAT
YOU KNOW WHAT WE LEARNED IN
FIFTH GRADE IS WHAT WE READ OUT
THE TREES BREEDING BUT THEY'RE
DEAD. THEY'RE NOT THEY'RE NOT
SEQUESTERING CARBON. EMITTING
CARBON. ENTERS THE POLICIES OF
HOW WE MANAGE OUR FOREST WE'VE
GOT A HUNDRED YEARS OF FIRE
SUPPRESSION WHICH IS NOT NATURAL
TO ARE FORCED. IN THE FORCE
NATURALLY THIN ITSELF WITH FIRE.
WE NEED TO THIN OR FORCE ALLOWED
TO BE ALIVE WHEN FIRE CAN WIN
THEN WE CAN HAVE FAR TO GO
THROUGH THERE SO WE POINT TO THE
FIRE. AND THE SMOKE AND THE- IN
THE- HEALTH. THE ISSUES THAT
COME WITH THAT AND THEN WE GO
AND REGULATE. THE CARS IN
BREEDERS AND LAWN MOWERS AND
SMALL GENERATORS THINGS THAT
PEOPLE NEED EVERY DAY TO.
SUSTAIN LIFE WHEN THERE'S NO
POWER IN THE STATE SO
HOLISTICALLY I WANT I WANT TO
TALK ABOUT THESE ISSUES AND WE
DON'T SEEM TO EVER TALK ABOUT.
WHAT THE LONG TERM GOAL IS GOING
TO BE AT THE SAME TIME. MY
CONSTITUENTS AND EVERYONE OF THE
SENATOR'S CONSTITUENTS COST OF.
THINGS THAT THEY USE EVERY DAY
IS SKYROCKETING IN CALIFORNIA I
HAVE A TRUCKING BUSINESS. THE
ONE UP A DOLLAR FOR DIESEL IN
THE LAST THREE MONTHS THAT'S A
HUNDRED DOLLARS A DAY IT COST ME
FOR EACH TRUCK. THAT'S DRIVES UP
THE COST OF A LOAF OF BREAD-
WHEN YOU BUILD A HOUSE ALL THAT
GETS PASSED ON TO THE END USER
AND THE POOREST. PEOPLE IN
CALIFORNIA THE WORKING CLASS
PEOPLE ARE GETTING DEVASTATE WE
TALK ABOUT SOCIAL JUSTICE. THOSE
PEOPLE. THERE ARE ENOUGH FOR THE
PEOPLE ON A FIXED INCOME ARE
GETTING ESTROYED IN CALIFORNIA
AND IT'S BECAUSE THESE POLICIES
DON'T LINE UP WITH LIKE REALLY
REDUCING CARBON AND THAT'S
THAT'S BEEN MY- MY- FRUSTRATION
OVER THE YEARS BECAUSE WE DON'T.
THEY DON'T THERE'S NO HOLISTIC
PROGRAM HERE SO I WANT TO JUST
ADD. WHEN THE LEGISLATURE PASSED
AB THREE NINETY EIGHT TWO
THOUSAND SEVENTEEN THE
CENTERPIECE OF THAT. WAS TO KANE
CONTAIN COST AND PROTECT
CONSUMERS. THOSE ARE OUR
CONSTITUENTS RIGHT NOW THERE IN
MY MIND AREN'T BEING PROTECTED
WHILE REDUCING GREENHOUSE GAS.
WHY ARE WE WHY ARE WE LOOKING AT
CHANGING THIS PROGRAM WE'RE ONLY
TWO YEARS INTO IT. THAT THAT'S A
QUESTION THAT WE NEED TO ASK AND
I HAVE SINCE. MY LAST THREE OR
FOUR QUESTIONS. I HAVE HERE IS-
FOR CHAIR RAND OFF. SO FOR THE
CHAIR WELL WHAT PERCENTAGE. IS
THE CAP AND TRADE PROGRAM
PLAYING IN REDUCING GHG UNDER
THE CURRENT SCOPING PLAN. HE
TWENTY SEVENTEEN SCOPING CLAN-
ASSUMED ABOUT A THIRTY EIGHT
PERCENT- ROLE FOR CAP AND TRADE
AND THE NEWS COMING PLAN WILL.
ANALYZE WHAT WORLD CAP AND TRADE
SHOULD PLAY- WE WILL LOOK AT ALL
OF OUR DIFFERENT PROGRAMS FOR
REDUCING CARBON- LOOKING AT-
WHAT REDUCTIONS WE EXPECT. TO
GET FROM THOSE DIFFERENT
PROGRAMS SOME OF WHICH DID NOT
EXIST- DURING THIS TWENTY
SEVENTEEN SCRAPPING PLANNED SO
IT'LL BE A NEW OPPORTUNITY TO
ASSESS THOSE- AND THEN WE WILL
SEE WHAT KEPT THAT CAP AND TRADE
PROGRAM SHOULD- EXPECT TO COVER-
BEYOND THOSE PROGRAMS AND SAID
THAT'S THE ANALYSIS THAT WE ARE
WORKING ON RIGHT NOW. MY SECOND
WOULD BE WHAT'S THE PERCENTAGE
THE LOW CARBON FUEL STANDARD IS
PLAYING IN REDUCING GHGS IN THE
CURRENT SCOPING PLAN. SO AGAIN
THAT WILL BE PART OF THE
ANALYSIS THAT IS AN EXAMPLE OF A
PROGRAM THAT WAS NOT IN- FULL
EFFECT- IN TWENTY SEVENTEEN AND
SO THERE WILL BE A NEW
OPPORTUNITY TO. DETERMINE WHAT
ROLE L. CSS WILL BE PLAYING. SO
WHICH PROGRAM IT IN ARE YOU
EVALUATING THE SCOPING PLAN GETS
THE LARGEST AMOUNT OF GHG
REDUCTIONS FOR THE LEAST COST
PER TON. THAT'S PART OF THE
ANALYSIS WERE DOING RIGHT NOW
THAT WE- WILL BE REALLY
RELEASING LATER THIS SPRING AND
THAT WILL THAT WILL BE. OUT WHEN
. WE HAVE SOME INITIAL MODELING
RESULTS THAT'LL BE OUT IN MID
MARCH AND THEN WE WILL HAVE A
DRAFT. OF THE PROPOSED CAPPING
PLAN AND IN LATE APRIL. MY LAST
QUESTION WOULD BE THE CURRENT
SCOPING PLAN IS PREPARING FOR
TWENTY FORTY FIVE GOAL. OF THE
BEAT THAT CARBON NEUTRAL AND THE
STATES AUTHORIZED CAP AND TRADE
PROGRAM WHICH- BUT BY THE WAY
WAS APPROVED BY A TWO THIRDS
VOTE OF THE LEGISLATURE. IS SET
TO EXPIRE IN TWENTY THIRTY. HOW
DO HOW DO YOU PLAN ON MAKING UP
THE FIFTEEN YEAR GAP OF GHG
REDUCTIONS WITHOUT AN AUTHORIZED
CAP AND TRADE PROGRAM- SO THIS
COMING PLAN WILL ASSESS OUR
PROGRESS TOWARDS THE- TWENTY
THIRTY GOALS- 40% BELOW NINETEEN
NINETY LEVELS. AND WE'LL ALSO
LOOK AT CARBON NEUTRALITY WE BUY
TWENTY FORTY FIVE OR SOONER- WE
WILL ASSESS- A ROLE FOR CAP AND
TRADE- BUT TO YOUR POINT IT IS
TRUE THAT- BY A LOT IT- IT. ENDS
IN TWENTY THIRTEEN. THANK YOU
FOR YOUR LAN NEED ASK QUESTIONS
TODAY I JUST WANT TO MAKE SOME
LAST COMMENTS HERE. MY LEVEL OF
FRUSTRATION HAS BEEN. I'VE I
THINK I'VE VOICED IT PRETTY LOUD
PRETTY PLAINLY OVER THE TIME
THAT I'VE BEEN IN THE
LEGISLATURE CALIFORNIA. PRODUCES
1% OF THE WORLD'S CARBON. WE ARE
WE ARE SUPPOSED TO BE. THERE
WERE TOUTED AS LEADING THE WORLD
AND HOW WE ARE GOING TO. REDUCE
CARBON. NUMBER ONE WE DON'T
COUNT THE EMISSIONS FROM FOREST
FIRE. WHICH WE PUT OUR FORCES IN
THE SHAPE THAT IT'S IN THERE IS
CLIMATE CHANGE BUT A LOT OF IT
IS DUE TO THE MANAGEMENT
POLICIES THAT WE HAVE OVER THE
LAST SIXTY TO SEVENTY YEARS. AND
WE NEED TO AGGRESSIVELY. THEN
THE FOREST AND TAKE CARE OF OUR
WATERSHEDS OF FIRE CAN ACTUALLY
GO THROUGH THE FORCE WITHOUT
COMPLETELY DESTROYING THE FORCE
WE HAVE. ROUND CATASTROPHIC
FIRES THAT WE CAN REDUCE THOSE
MISSIONS AND- MANY OF THE
LEGISLATORS HAVE BEEN OUT. TO MY
DISTRICT TO SEE WHERE WE STAND
AND FIRE CAME THROUGH WE STILL
HAVE A FORCE THAT'S ALIVE AFTERTHE FIRE COMES THROUGH IT IS
STILL. THE QUESTION CARBON AND
ACTUALLY WHEN WITHIN THE FOREST
IT GROWS TREES FASTER WHICH
SEQUESTERS MORE CARBON SO
THERE'S A REAL. PUBLIC BENEFIT
TO DOING GOOD FORESTRY. TWO
THIRDS OF STATE IS FORESTED IN
THE STAIRS AND WE NEED TO MAKE
SURE. THAT WE DO THAT. SO I JUST
WANT TO SHARE THAT. IF YOU
HAVEN'T NOTICED IT'S REALLY
EXPENSIVE TO LIVE IN CALIFORNIA
. FUEL SKYROCKETING COST OF
BUILDING IS SKYROCKETING FOOD IS
SKYROCKETING AND IT'S DUE TO
THESE POLICIES THAT COME OUT OF
THIS LEGISLATURE COULD WE SET
TARGETS WITHOUT A BRIDGE TO GET
THERE. LAST WEEK IN SUB TWO WE
TALKED ABOUT EV'S. N. EXECUTIVE
ORDERS THAT ARE GOING TO GET.
THEY GET THEY GET EXACTLY ORDERS
THAT ARE GOING TO GIVE US. ALL
ELECTRIC VEHICLES AND WE DON'T
HAVE ANY INFRASTRUCTURE EVEN
CHARGES ELECTRIC VEHICLES SO I'M
LOOKING FOR OVERALL POLICY OF
HOW WE'RE GOING TO GET TO OUR
GOALS APPRECIATE YOUR- TIME IN
ANSWERING MY QUESTIONS TODAY.
THANK YOU SENATOR US CENTER
STERN YOU RECOGNIZE. THANK YOU
JERRY CASKEY AND- THANKS TO THE
ADMINISTRATION AND- I MAX-
MEMBERS FOR JOINING US AS WELL
HI I TAKE A SIMILAR I GUESS BUT
SLIGHTLY. SLIGHTLY DIFFERENT
APPROACH- TO MY COLLEAGUE FROM
THE NORTH- I THINK I SHARE THE
ADMINISTRATION'S CONCERNS ABOUT
I GUESS WE'RE CALLING
AFFORDABILITY. BUT YOU KNOW WHEN
I THINK ABOUT AFFORDABILITY I
THINK ABOUT THE INABILITY FOR
PEOPLE WHO ARE THE MOST
VULNERABLE IN THIS STATE TO
AFFORD. A FUTURE OF RELENTLESS
AN UNMITIGATED CLIMATE CHANGE A
FUTURE WHERE YOU HAVE TO DEPEND
ON WHAT HAPPENS IN RUSSIA OR
SAUDI ARABIA TO DECIDE- HOW MUCH
YOU'RE GOING TO BE PAYING WHEN
YOU FILL UP YOUR DIESEL TRUCK
EVERY DAY. OR PEOPLE WHO HAVE TO
LIVE IN YOUR REFINERY- OR NEAR A
CEMENT FACTORY OR A GAS FIELD-
OR PEOPLE SIMPLY JUST LIVE NEAR
FREEWAYS AND- THE INFANT
MORTALITY RATES IN. THE
PREMATURE BIRTHS AND PREMATURE
DEATHS THAT. WE GO THROUGH- AS A
STATE AND THE ABJECT PUBLIC
HEALTH CRISIS- THAT'S BEEN
FALLING AS WELL YOU KNOW WE'VE
BEEN STRUGGLING THROUGH COVETED-
THIS HUGE. UNDERLYING STRUCTURAL
INJUSTICES IS MOUNTING DAILY SO
I'M I'M CONCERNED THAT WE CAN'T
AFFORD TO JUST THINK ABOUT
TWENTY FORTY FIVE HERE. AND I
APPRECIATE THAT- YOU KNOW THERE
WERE CERTAIN SORT OF MINIMUM
THRESHOLD SET IN LAW BY THE
LEGISLATURE IN BOTH SP THIRTY
TWO AND- IN THE FINER POINT WAS
PUT ON ALL THAT BY- EIGHTY THREE
NINETY EIGHT- MY FIRST QUESTION.
IS REALLY LOOKING AT. SORT OF
WHERE WE'RE HEADED IN THE NEAR
TERM. AND YOU KNOW WE CAN TALK
ABOUT TARGETS AND GOALS- AND I
THINK THAT'S IMPORTANT TO SORT
OF INFORM THIS IS MARKET BASED
REDUCTION CONVERSATION THE CAP
AND TRADE CONVERSATION BUT- I
THINK IF WE END UP AT THE ESPY
3240% GOAL- BY TWENTY THIRTY.
BUT WE HAVEN'T TRANSFORMED
CALIFORNIA. I WILL FAILED THE
PEOPLE OF CALIFORNIA AND I LOOK
AT THE YOU KNOW WHEN WE SET
THOSE NUMBERS IN LAW BACK THEN
THERE'S A LOT WE DIDN'T KNOW. TO
MR BURR TRUST POINT ABOUT SOCIAL
COST OF CARBON. WHATEVER THAT
REGRESSION ANALYSIS OR WHATEVER
WE THINK THAT PEOPLE CAN BEAR TO
AFFORD WHO ARE NOW UNDER WATER
AND HAUSER HAD THEIR COMMUNITIES
BURNED DOWN OR HAD THEIR
BUSINESSES GO UP IN SMOKE OR
LOST THEIR LIVES LIKE. THAT
SOCIAL COST ACTUALLY IS A LOT
HIGHER THAN WE OFTEN ESTIMATE.
SO I KNOW THE BITE
ADMINISTRATION IS SET. GOALS
NATIONWIDE- FOR TWENTY THIRTY
THAT ARE ACTUALLY MORE
AGGRESSIVE THAN WHAT
CALIFORNIA'S BEEN LOOKING AT I
THINK. YOU KNOW WHAT THEY'RE FIT
THEY'RE FAR AND IN OUR LOWER AND
I THINK YOU COULD BE ALMOST AS
MUCH AS 10% MORE. PRODUCTIONS-
SET OUT A GOAL FOR THE FOR THE
FEDERAL ADMINISTRATION AND WE
LIKE TO PRIDE OURSELVES ON BEING
LEADERS HERE IN CALIFORNIA. SO I
GUESS I'M WONDERING. IF THERE'S
ANY HOPE FOR GOING FASTER AND
FOR THE KIND OF NO REGRETS
INVESTMENTS AND TRANSFORMATIONS
THAT. I THINK WE'RE ON THE VERGE
OF ACHIEVING HERE- IN THE NEAR
TERM IN CALIFORNIA SO IS THERE
JUST AT A HIGH LEVEL ANY
PERSPECTIVE- OR ANY HOPE TO GIVE
US HERE THAT. GOOD WE CAN TACKLE
THIS EMERGENCY AND OF COURSE WE
HAVE TO MODEL OUT TO DID YOU
KNOW TWO DECADES FROM NOW BUT
FOR THE PEOPLE WHO CAN'T BREATHE
TODAY- WELL HOPE CAN YOU. YOUR
YOUR LENDERS HERE. IS THAT GO TO
THE SECRETARY OF THE STATE FAIR
BOARD CHAIR AT THE GATES ON THAT
ONE AND I THINK YOU HAD YOUR
HAND UP TESTING. RIGHT I THINK
THERE IS- THERE IS A LOT TO BE
HOPEFUL ABOUT THAT CALIFORNIA
HAS VERY SPECIFIC ACTIONABLE
STRATEGIES- TO GET WHERE WE NEED
TO GO- LOOKING AT THE ENERGY
SECTOR FOR INSTANCE- THE
PROGRESS THAT WE HAVE MADE HAS
BEEN DRAMATIC AND- AND
CONTINUES- WE ARE THE LARGEST-
HAVE THE LARGEST AMOUNT OF
ENERGY STORAGE- IN ANY
JURISDICTION IN THE WORLD- SO WE
ARE MOVING AGGRESSIVELY TOWARDS
ACHIEVING THOSE TARGETS OUR-
ZERO EMISSION VEHICLE WORK IS-
CONTINUES TO SHOW RESULTS- THE
MARKETS CONTINUE TO INCREASE. WE
CONTINUE TO BUILD THE
INFRASTRUCTURE THAT WE NEED TO
TRANSITION- BOTH LIGHT DUTY AND
HEAVY DUTY VEHICLES TO ZERO
EMISSION- WE CONTINUE TO SET
BROWN GROUNDBREAKING POLICIES
LIKE THE LOW CARBON FUEL
STANDARD- TO REDUCE REDUCE THE
CARBON INTENSITY OF OUR
TRANSPORTATION FUELS- WE
CONTINUE TO MAKE- NEW STRIDES
LEGISLATIVELY FOR INSTANCE
AROUND CEMENT AND- SETTING-
GOALS AND STRATEGIES FOR
REDUCING CARBON IN THAT IN THE
CEMENT SECTOR- SO I THINK
CALIFORNIA. CONTINUES TO. LEAVE
THE WAY IN TERMS ACTUAL SPECIFIC
ACTIONABLE STRATEGIES- THAT WILL
MAKE PROGRESS TOWARDS THE GOAL
NOT JUST SETTING A NEW GOAL-
BUT- BUT REALLY IMPLEMENTING THE
POLICIES. THAT MAKE THOSE GOALS
ACHIEVABLE. AND I'LL TURN IT
OVER TO SECRETARY BLUMENFELD.
THANK YOU- AND THANK YOU FOR THE
QUESTION- THAT IS THAT RIGHT
SOMETIMES WE GET SO. YOU KNOW
STOVE PIPED INTO THE SPECIFIC
ISSUES THAT WE LOSE PICTURE- ALL
SIDE OF THE BIG PICTURE REALLY
APPRECIATE YOU KIND OF ZOOMING
OUT- WHAT WE'RE DISCUSSING TODAY
IS ONE MARKET BASED MECHANISM
BUT DEAL PINE. WE NEED SOME HELP
AND- LIVES- AS WE READ. IT OUT
HEADLINE AFTER HEADLINE ABOUT A
WAR EXPERIENCE REALITIES HERE ON
THE GROUND IN CALIFORNIA OF
DROUGHT- WILDFIRE EXTREME HE AND
THEY WERE ALL OF THE IMPACTS OF
CLIMATE CHANGE I WOULD POINT TO
I THINK ONE OF THE MOST
INSPIRING THINGS AS SENATOR THAT
I. HAVE DISSIPATED AND- WITH THE
ENTIRE GOVERNOR'S TEAM AND LED
BY THE GOVERNOR HIMSELF IS THE
BUDGET- THAT JAN TEN DOCUMENT IF
YOU LOOK AT THE THIRTY SEVEN
POINT FIVE BILLION. FIVE YEAR
BUDGET PLAN- IT GOES THROUGH AND
IS I HAVE DESCRIBED I MEAN IT
REALLY IS ONE OF THE MOST
COMPREHENSIVE. EXAMINATIONS OF
HOW WE DEAL WITH- THE. SHOW THAT
WHERE WE'RE HELPING TO THE FOLKS
IN CALIFORNIA THAT NEED IT THE
MOST THAT YOU'RE DESCRIBING THAT
WE CREATE JOBS- THAT HIERO JOBS
THAT THAT WHOLE COMMUNITIES-
GROW AND PROSPER AND THAT
REDUCING GREENHOUSE GAS
EMISSIONS SO. I'M JUST A FEW OF
THOSE THINGS- AND ALL THESE
PROGRAMS THAT ARE TARGETED AND
FOCUSED PRIMARILY ON ON LOW
INCOME AND MODERATE INCOME
CALIFORNIANS BUT THERE'S TEN
BILLION- WHEN YOU COMBINE IT
WITH LAST YEAR'S BUDGET THAT
LOOKS AT ZERO MISSION- VEHICLE
INFRASTRUCTURE ZERO EMISSION
MOBILITY- PUTTING LITERALLY
BILLIONS INTO THINGS LIKE
ELECTIONS SCHOOL BUT- SAYS-
TRANSPORTATION. NINE POINT ONE
BILLION TO LOOK ACTIVE
TRANSPORTATION HOW WE GET PEOPLE
OUT OF THAT BECAUSE ONE OF THE
BIG ISSUES BUT WE LOOK AT
ALLOWANCES IT'S NOT EVEN
UNDERSTANDING AT THIS YEAR'S VMC
HOW HOWEVER VEHICLE MILES
TRAVELED OUR GOAL IS TO GET
PEOPLE. INTO ACTIVE MODES OF
TRANSPORTATION AND THE
SIGNIFICANT FUNDING TO DO THAT
I'M CLEAN ENERGY AND CLEAN
ENERGY. LOAN PROGRAM- NO THANK
EXCITING THINGS AND THE- AND- A
GOVERNOR NEWSOM YES. WE'RE
TALKING- ABOUT LITHIUM VALLEY
AND THE POTENTIAL OF REALLY
LIFTING UP THE IMPERIAL VALLEY-
AND THOSE COMMUNITIES THROUGH
THAT MASSIVE ECONOMIC
OPPORTUNITY AND THEN THINGS LIKE
SUSTAINABLE COMMUNITIES I'M
LOOKING AT AFFORDABLE HOUSING
AND SUSTAINABLE COMMUNITIES. ARE
PUTTING MORE THAN THREE HUNDRED
MILLION DOLLARS INTO THOSE AND
THEN HELPS- WE OFTEN. BIFURCATE
THESE ISSUES FOR ALL OF US WE
NOTE THAT HEALTHY CLIMATE
INEXTRICABLY LINKED- THE
AMERICAN MEDICAL ASSOCIATION TWO
YEARS AGO DESCRIBED. CLIMATE
CHANGE AS A MEDICAL EMERGENCY
I'M LOOKING AT HELPING BUILD OUT
PROGRAMS TO GET AT TWENTY FIVE
THOUSAND NEW COMMUNITY HEALTH
WORKERS. I'M INTO COMMUNITIES TO
HELP WITH EVERYTHING FROM
HOMELESSNESS BUT ALSO THINGS
LIKE ASTHMA THAT ARE RELATED TO
CLIMATE CHANGE- AS WELL AS
INNOVATION AND- HOW WE BUILD
THIS INTO THEIR- PROGRAMS THAT
WE'RE DESCRIBING AS STRAUSS-
JOBS. AND TO THE POINT THAT
SENATOR DOLLY RAIDS- HAVE A TWO
POINT SEVEN BILLION DOLLARS TO
HELP DEAL WITH FOREST MANAGEMENT
TO REDUCE THE RISK OF
CATASTROPHIC CATASTROPHIC
WILDFIRE- IT'S INCREDIBLE. TO
THE FULLEST- I WOULD ENCOURAGE
SPENCE'S NAME TO READ IT STARTS
ON PAGE EIGHTY ONE OF THE
GOVERNOR'S BUDGET BUT WHAT IT
DOES THAT SOUNDED- IS I THINK IT
FRAMES OUT WALK CALIFORNIA
OFFICES THE WILD WHICH IS A HOPE
OF. HOW WE REDUCE THESE
EMISSIONS. WHILE LIFTING UP
COMMUNITIES AND HOPEFULLY SAVING
PEOPLE MONEY MANY OF THESE
PROGRAMS WILL SAVE PEOPLE MONEY
WHEN THAT IMPLEMENTED IT I'M
SORRY. I HAVE THIS TWIN. FEELING. OF- ANXIETY DREAD CRIME CHANGE
BUT WHEN I LOOK AT WHAT WE CAN
TOGETHER- AND HOW WE CAN COLLAB
. I HAVE A SON OF HOW I THANK
YOU FOR RAISING THAT QUEST. I
APPRECIATE THE AND- CAN BE
HEALING SO I WOULD I WOULD TEND
TO AGREE WITH YOU I JUST FROM A
FROM A QUANTITATIVE PERSPECTIVE
I GUESS I'M I'M TRYING TO
UNDERSTAND. DO WE HAVE- A
QUANTIFIABLE HOPE OF EXCEEDING
THE TALK THE CURRENT TWENTY
THIRTY TARGETS IF WE SAY REALIZE
ALL THESE INVESTMENTS AND PURSUE
ALL THE OTHER DIRECT MEASURES AS
WELL AS A WELL MANAGED CAP AND
TRADE PROGRAM IS THERE IS THAT A
IS THAT A SCENARIO THAT THE
ADMINISTRATION FINDS THAT LIKELY
OR OR POTENTIALLY LIKELY
REASONABLY LIKELY THAT WE COULD
WE COULD CHECK IN AT J. RANDALL
CAN ADDRESS THIS BECAUSE THIS IS
EXACTLY WHAT COPS GETTING IN THE
SCOPING PLAN. IS TO SCENARIO OUT
AND JUST TO BE VERY CLEAR THE
GOVERNOR INSTRUCTED ALL OF US-
HE AND BILLY AND DISCUSS THIS
VERY CLEARLY WHICH IS NO LATER
THAN TWENTY FORTY FIVE SO COBB
IS DOING SCENARIO PLANNING TO
LOOK AT HOW AGGRESSIVELY TO
BRING THOSE NUMBERS. DOWN BUT
I'LL TURN IT J. RANDALL- YES
THAT'S CORRECT M. S. WE ARE
LOOKING AT- SCENARIOS THAT
INCLUDE- TWENTY THIRTY FIVE. AND
TWENTY FORTY FIVE- I THINK ONE
AREA THAT I THINK IT'S REALLY
IMPORTANT TO ADDRESS IS THAT THE
M. ALICE'S WILL INCLUDE. SOME
ANALYSIS AROUND UNCERTAINTIES
AND THERE ARE THINGS THAT NO ONE
INDIVIDUAL AND NO OR NO ONE
ENTITY CONTROLS IN TERMS OF
IMPLEMENTING OUR STRATEGIES-
VEHICLE MILES TRAVELED AS
SECRETARY BLUMENTHAL MENTIONED
THAT'S A GOOD EXAMPLE WHERE-
IT'S REALLY GOING TO DEPEND ON A
LOT OF WORK STATEWIDE- LOCAL
GOVERNMENTS- AND REGIONAL
GOVERNMENTS TO. CONSIDER THE
LAND USE POLICIES THAT WILL
RESULT IN- IN A REDUCTION IN
RELIANCE ON. VEHICLES ANOTHER
EXAMPLE IS RENEWABLE ENERGY
DEPLOYMENT- AS THESE PROJECTS
NEED TO BE BUILT- AND THEY NEED
TO BE LOCATED AND BECOME
OPERATIONAL- AND SO WE NEED TO
MAKE SURE THAT. THE RATE OF
BUILD OUT- THAT ACTUALLY OCCURS
ON THE GROUND MATCHES THE
PLANNING AND THAT THE P. U. C.
C. C. AND THE CASE- ARE ALL
DOING IN TERMS OF BUILDING OUR
RENEWABLE ENERGY CREDIT- SO.YOU
KNOW WE NEED TO BE VERY MINDFUL
THAT- THESE ARE THESE ARE
ACTIONS THAT OUR POLICYMAKERS AT
ALL LEVELS OF GOVERNMENT- IN THE
STATE ARE GOING TO NEED TO
UNDERTAKE AND BE WORKING TOWARDS
A COMMON GOAL. OF. EVERY
CHEATING THE TARGETS THAT WE
SET. THANKS FOR THE AND A I
DIRECT THAT IN YOU TAKE- YOU
WANT TO SAY YOU KNOW. SIX
GIGAWATTS ZEROTH FUHRMAN ZERO
CARBON ASELOAD RENEWABLE POWER
CLUB TO CITE THOSE FACILITIES
AREBUILT THE TRANSMISSION YOU
KNOW YOU'RE GONNA NEED COUNTIES
AND CITIES ON BOARD AND- YOU
KNOW MUNICIPALLY OWNED UTILITIES
AND SO. IT'S A FAIR POINT ON THE
UNCERTAINTY PIECE- BUT I DO
APPRECIATE THE LITTLE SHOT I
HOPE THAT- YOU ALL GAVE OUT
THERE I. GOT TO GO BACK TO. TO
PESSIMISM HERE- BUT I GUESS IT'S
MORE JUST REALISM- YOU KNOW SOME
OF THOSE TOUGH TO REACH SECTORS
THAT YOU MENTIONED- IT
ESPECIALLY IN THE INDUSTRIAL
SECTOR SAW DIRECT EMISSION
INCREASES- AS THE LAST COPING
PLAN UPDATE I'M THINKING OF
SPECIFICALLY IN REFINING AND
CEMENT- I KNOW THAT THIS WAS A-
PARTICULARLY ACUTE FOCUS- FOR. A
LOT OF OUR ENVIRONMENTAL JUSTICE
STAKEHOLDERS WHO WERE WORRIED
ABOUT- YOU KNOW- IMPACTS OF. CAP
AND TRADE IN THEIR PARTICULAR
COMMUNITIES- IDEAS HAVE BEEN PUT
FORWARD LIKE- NO TREATING ZONES
OR OTHER WAYS. THROUGH CAP AND
TRADE BUT I ALSO KNOW THERE'S
SORT OF DIRECT EMISSIONS
REDUCTION STRATEGIES AS WELL CAN
YOU CAN YOU WILL TOUCH ON- THE
INDUSTRIAL SECTOR AND- THAT SORT
OF HARD TO REACH HIGH HEAT-
HIGH- YEAH THE HIGHLY
INDUSTRIALIZED INDUSTRIES THAT.
THAT HAVE SO FAR SORT OF-
INVADED OUR ABILITY TO TRANSFORM
AND FIND A NEW WAY. I GUESS I
WILL KICK **** AND NOTES THAT-
THERE ARE- DIRECTED MISSIONS-
REGULATORY OPPORTUNITIES FOR
STATIONARY SOURCES- AND- AND I
KNOW SOME OF THE- AT REGIONAL
AIR DISTRICTS HAVE. ADOPTED NEW
RULES- FOR INSTANCE BAY AREA AIR
QUALITY MANAGEMENT DISTRICT-
AND- IT'S ANOTHER EXAMPLE WHERE
THE IMPORTANCE OF STRATEGIES
LIKE A LOW CARBON FUEL STANDARD
TO. DRIVE INNOVATION AND DEVELOP
RENEWABLE FUELS THAT REDUCE.
EMISSIONS IN SECTORS THAT ARE
HARD TO ELECTRIFY. I THINK
THERE'S OPPORTUNITIES THERE- BUT
YOU KNOW I COMPLETELY AGREE THAT
WE NEED TO BE CLEAR EYED ABOUT
RECOGNIZING THAT THERE ARE SOME
THAT. PARTICULAR USES AND
INDUSTRIAL PROCESS SEES THAT-
ARE GOING TO NEED. MORE WORK AND
MORE INNOVATION AND I THINK WE-
ARE. TRYING TO DRIVE THAT NOT
JUST THROUGH- CAP AND TRADE BUT-
THREE WELL CSS- AND THROUGH
RESEARCH AND OTHER STRATEGIES.
TO- THAT TO BRING THE LOCAL- AND
ZERO CARBON STRATEGIES TO THOSE
SECTORS. THANKS FOR THAT- I
GUESS I WANT TO CONCLUDE JUST BY
BRIEFLY- CALLING ON OUR MAC.
MEMBERS HERE- ANY ANY COMMENTS
OR FROM FROM- LA- ACTUALLY I'D
INVITE BUT JUST TO. ON ON SORT
OF TRAJECTORIES HERE AND WHAT
YOU ALL ANTICIPATE HAPPENING
WITH THE CURRENT MIXES
STRATEGIES YOU SEE OUT THERE
SORT OF- HOW THAT COULD AFFECT.
HOW MUCH WE LEAN ON CAP AND%
TRADE TO GET US TO TWENTY THIRTY
DO YOU SEE THIS BEING STILL OF A
BACKSTOP IN SORT OF AN INSURANCE
POLICY. TO HAVE A SORT OF PRICE
SIGNAL TO DEAL WITH LOW YOU KNOW
THE SORT OF LOW COST EMISSIONS
REDUCTIONS ARE DO YOU- BUT AT
ITS CURRENT TRAJECTORY DO YOU
SEE IT BEING SORT OF- THE- LYNCH
PIN- THE BACKBONE OF THE PROGRAM
THAT SORT OF WORK COURSE OF THE
PROGRAM. ANY PERSPECTIVE JUST
ON. ON THAT- YOU KNOW THAT SORT
OF RANGE OF POLICY CHOICES WERE
WERE POSITIVE INHERENTLY MAKING
RIGHT NOW. OCTOBER TALK. OKAY
THANK YOU THANK YOU SENATOR
STERN. THIS IS A DIFFICULT
QUESTION IN THE FIRST PLACE AND
IT'S A DIFFICULT QUESTION FOR.
SURE BEYOND OUR PORTFOLIO TO
OFFER QUITE THE TYPE OF THE
SWEEPING ASSESSMENT AND I WOULD
DEFER TO. SECRETARY RUMSFELD AND
CHARITABLE FOR THEIR OPINION BUT
I DO HAVE AN OPINION ABOUT THIS
EVIDENCE WHICH WILL PRIMARILY A
PERSONAL OPINION MORE THAN THE
OPINION OF THE COMMITTEE I THINK
THAT THE CAP AND TRADE PROGRAM
THE COVERED MARKET CONTINUES TO
AS I SAID EARLIER CONTINUES TO
PROVIDE A DEEP GOLD- CARBON
EMISSION REDUCTION BEHIND.
ELEMENT OF THE OVERALL STATES
CLIMATE POLICY PORTFOLIO THAT
BRINGS AN ELEMENT OF COST
EFFECTIVENESS. HELP US. I TRIPLE
HOLDER AND- A PRO TO INTEGRATE
ALL THE VARIOUS. OF REGULATIONS
MEASURES ARE BEING LOOKED OUT
FOR PROMOTING ELECTRIC VEHICLES
AT SUCH A- WHETHER A PROVIDE A
BACKSTOP I. DON'T KNOW THAT I
WOULD SAY THAT IT'S A BACKSTOP
FOR THE STAGE OVERALL GREENHOUSE
GAS REDUCTION GOALS BECAUSE OF
THE COVERAGE ONLY 75% OF THOSE
AND SECONDLY BECAUSE OF THE-
AMPLE ALLOWANCES IN THE BANK ALL
RIGHT I DON'T KNOW THAT WE COULD
SAY THAT IT'S GOING TO. PROVIDE
A BACKSTOP ALL FOR THE OVERALL
FOR THE STATE'S OVERALL
PERFORMANCE HOWEVER IT DOES
PREVENT BACKSLIDING. BY
MAINTAINING- OF A MODEST CARBON
PRICE IN THE IN THE PROGRAM AND
GOING FORWARD MY G. YOU KNOW MY
PROFESSIONAL THE REAL STEP WHAT
REALLY HAS TO HAPPEN IN ORDER TO
DRIVE CHANGES IN THE HARD TRUTH
IS A SO CALLED HARD TO OBEY
TRACTORS ARE NOT EVEN INCLUDES
TRANSPORTATION OF COURSE. BUT
ESPECIALLY INDUSTRY IS. REALLY
PRIVATE INVESTMENT I MEAN PUBLIC
SECTOR INVESTMENT IS VERY
IMPORTANT BUT IT IS ONLY USEFUL
ULTIMATELY AFFECT LEVERAGES MANY
FOLD MORE PRIVATE SECTOR
INVESTMENT AND RE DIRECT THOUGHT
PRIVATE SECTOR DRUNK AND BACKS.
AWAY FROM WHERE IT'S GOING TO
HAPPEN ANYWHERE IN ANY WAY INTO
CLEAN TECHNOLOGY IN THE ENERGY
TRANSFORMATION THAT WE NEED SO I
THINK THAT THERE ARE POLICIES IN
ADDITION TO WHAT I WOULD LIKE TO
SEE A STRENGTHENING OF THE
CARBON. MARKET AND A
STRENGTHENING OF THE CARBON
PRICE. I SHOULD THAT THERE ARE
POLICY WHAT SURE. MAY BELOW CARB
STANDARD IS A- IS A REALLY
PROBLEMS TEMPLE THAT COULD. USED
AS A TERM AS A BUY. CENTER
CHURCH FOR STANDARD THE LOOK AT
A MATCH OR OTHER ADULT SECTOR.
BECAUSE IT IS A REMARKABLE
ATTRIBUTE OF THESE OF THIS KIND
OF TRAVEL PERFORMANCE STANDARDS
IS IT REALLY DRIVES INNOVATION
AND REALLY DRIVES INVESTMENT IN
THE SECTOR IS WORTH HAVING A
RELATIVELY MODEST EFFECT. ON OUR
CONSUMER PRICES DOWNSTREAM. SO
IT'S NOT THE HOLY GRAIL TUNA
CONOCE CARBON PRICING IS THE
HOLY GRAIL BUT IT COMES WITH ITS
OWN LIMITATIONS AND SO I THINK.
THE IDEA OF HOLISTICALLY LOOKING
AT INTEGRATING THESE DIFFERENT
TYPES OF POLICY PROPOSALS.
SOMETHING THAT I WOULD ENCOURAGE
A R. B. TO BE DIRECT. DR CONCORD
. THANK SENATOR. I YOU KNOW. I
WAS REFLECTING LISTENING TO
SECRETARY BLUMENFELD TOUT THE
STATE'S LEADERSHIP ESPECIALLY IN
BUDGET MATTERS ENSURE RANDALL'S
VIEWS ONTHE STATE'S LEADERSHIP
IN THE ENERGY SECTORS. I THINK
THERE'S A GREAT DEAL TO BE PROUD
OF AND TO BRAG ABOUT TO THE
WORLD. I THINK IF YOU LOOK
CAREFULLY AT THE EXPERIENCE OF
REAL CLIMATE LEADERS IT'S
USUALLY SECTOR SPECIFIC POLICIES
AND INDUSTRIAL STRATEGY THAT
GETS A LOT OF THE WORK DONE AND
I CELEBRATE. EVERYONE'S
ACCOMPLISHMENTS IN THAT FIELD
HERE I DON'T THINK WE'RE GONNA
FIND THE CAP AND TRADE. IS GOING
TO BE THE PRIMARY WAY TO GET
THINGS DONE I THINK THEY'RE
STRONG ECONOMIC RATIONALES TO
MAKE AS MUCH OF IT IS WE CAN.
HAPPEN AND I JOINED ALLISON IS
VERY THOUGHTFUL REMARKS ABOUT
THAT BUT I THINK THE PROBLEM
WORLD DANCING RISE WE HAVE THE
SCOPE AND PLAN THAT SAYS MOST OF
THE WORK IS GOING TO BE DONE MY
CAP AND TRADE. WE DO NOT HAVE A
CAP TRADE PROGRAM THAT'S CAPABLE
OF DOING THAT RIGHT NOW. AND THE
POLITICS OF REFORMING THAT ARE
VERY DIFFICULT. SO I WELCOME ANY
DEVELOPMENTS ABOUT STRENGTHENING
OUR BUDGET MEASURES BETTER
PERFORMANCE STANDARDS ABOUT OUR
INDUSTRIAL STRATEGY ABOUT
EFFORTS TO REFORM THE CAP AND
TRADE PROGRAM I THINK WE
PROBABLY NEED ALL OF IT. THANK
YOU FOR TAKING A REALISTIC LOOK
THE MOST AMBITIOUS CARBON
PRICING JURISDICTIONS IN THE
WORLD LIKE THE EUROPEAN UNION
WHICH HAVE PRICES FOUR TIMES
OURS. ARE STILL RELYING VERY
HEAVILY ON INDUSTRIAL STRATEGY
AND THAT IS ALMOST CERTAINLY
GOING TO BE THE WAY THAT WE LEAD
AND SUCCEED. HOPEFULLY WE DO IT
ALL TOGETHER AND THE THING THAT
I THINK JUST. KEEPS ME UP AT
NIGHT IS WE CAN'T HAVE AN HONEST
CONVERSATION ABOUT THE CAP AND
TRADE PROGRAM IS WORKING AND
THAT'S BEEN THE CASE SINCE I
STARTED WORKING ON THE SYSTEM.
MANY MANY YEARS AGO- RANDOLPH-
I'LL JUST SAY A COUPLE THINGS-
FIRST- YOU KNOW I THINK WE NEED
TO RECOGNIZE THAT- CAP AND TRADE
IS AN IMPORTANT TOOL IN OUR
PORTFOLIO WE HAVE A RANGE OF
REGULATORY- IN SENATE REGULATORY
PROGRAMS INCENTIVE BASED
PROGRAMS CAP AND TRADE ALL OF
THEM CREATE- A SUITE OF
STRATEGIES TO GET TO OUR GOALS
AND I DO WANT TO CLARIFY EARLIER
YOU KNOW WHEN WE WERE HAVING A
DISCUSSION WITH SENATOR DOLLY
ABOUT THAT TWENTY THIRTY
DEADLINE. THE CAP AND TRADE
PROGRAM AS PRESCRIBED BY AB
THREE NINETY EIGHT IS WHAT
EXPIRES IN TWENTY THIRTY- BUT WE
STILL HAVE THE AUTHORITY TO HAVE
A CAP AND TRADE PROGRAM UNDER AB
THIRTY TWO AND SO THAT IS WHY
THE SCOPING PLAN IN ITS
ANALYSIS- WILL- ASSUME THAT A
CAP AND TRADE PROGRAM CONTINUES-
THE ON TWENTY THIRTY INTO- OUR
GOALS FOR CARBON NEUTRALITY-
AND- AND THEN I WILL ALSO NOTE
THAT YOU KNOW. HE THE QUESTION
OF HOW MUCH- THE CAP AND TRADE
PROGRAM WILL AND BE EXPECTED TO
DO THIS LIFTING TO TWENTY THIRTY
AND BEYOND WILL BE PART OF THE
ANALYSIS IN THIS CAMPAIGN PLAN-
AND WE WILL BE LOOKING AT ALL OF
THESE PROGRAMS AND HOW THEY FIT
TOGETHER AND ASSESSING WHAT THE
RULE OF CAP AND TRADE WILL BE
AND- YOU KNOW WE ABSOLUTELY GET
ADVOCACY ON EITHER SIDE OF THIS
ISSUE RIGHT WE GET ADVOCACY
THAT. THE CAP AND TRADE PROGRAM
SHOULD PLAY A LARGER ROLE AND-
AND IT AND IT CAN PROVIDE MORE
COST EFFECTIVE REDUCTIONS WE GET
ADVOCACY N THE OTHER SIDE THAT-
IT SHOULD NOT PLAY A LARGE ROLE-
AND THAT- A MARKET BASED PROGRAM
SHOULD HAVE A LESSER ROLE AND
DIRECT AND- EMISSIONS
REGULATIONS. SHOULD HAVE A
GREATER ROLE- AND THE ISSUES
WILL ON A AND- IN THE SKY
PLANNING WILL WE WILL A FULL
PUBLIC DISCUSSION ABOUT THIS.
PLAN ITSELF AND IMPORTANTLY-
WHEN THAT IS DONE WE WILL HAVE A
FULL. REGULATORY DISCUSSION
ABOUT THE STRUCTURE OF THE CAP
AND TRADE PROGRAM AS IT EXISTS
AND WE WILL TACKLE- AND THESE.
THESE ARE CRITICAL ISSUES- THAT
WE'VE BEEN TALKING ABOUT. IT
TODAY'S HEARING SO I JUST WANTED
TO CLARIFY THAT. MR BROWN. YEAH
I JUST WANTED TO OFFER I GUESS
MY TWO CENTS ON THE CENTER'S
QUESTIONS- I MEAN I THINK- FROM
OUR PERSPECTIVE THE WAY THE
PROGRAM IS CURRENTLY DESIGNS.
IT'S JUST NOT DESIGNED TO KIND
OF ENSURE THAT THE STATE NEEDS
IT'S TWENTY THIRTY GOALS NOT
SORT OF I THINK A BIG PART OF
THE CONVERSATION THAT WE'VE BEEN
HAVING- SO FAR HERE TODAY- AND
SO. THERE'S A VERY REAL RESPECT
SORT OF UNDER THE CURRENT DESIGN
IT'S JUST NOT NOT GOING TO KIND
OF PROVIDE THAT INSURANCE
ASSURANCE AND SO THE KEY
QUESTION I THINK FOR THE
LEGISLATURE AND THE STATE
OVERALL IS WHAT TYPE OF ROLE IS
AT ONCE- THE ROUTE THE CAP AND
TRADE PROGRAM TO PLAY. GOING
FORWARD- I THINK FROM OUR
PERSPECTIVE. THERE IS JUST A
VERY STRONG- RATIONALE FOR
CONCENTRATING ON THE MOST COST
EFFECTIVE. ROACH STREET. AND BY
. IT ALSO MEANS YOU KNOW A LOT
OF THOSE COSTS ARE CAN BE VERY
VISIBLE AND WE TALKED ABOUT KIND
OF SHELL GASOLINE PRICES AND
OTHER THINGS. LIKE THAT- THAT
DOESN'T MEAN THAT THE OVERALL
COSTS ARE HIGHER THAN OTHER
PROGRAMS WE DO THINK THAT THERE
PROBABLY LESS THAN A LOT OF THE
OTHER ALTERNATIVES BUT THERE'S-
A LOT OF CONSIDERATIONS OF
WHETHER SOCIAL LAUGHED AWAY AND
THINKING ABOUT. HOW MUCH THE WAY
KIND OF THAT. SORT OF COST
EFFECTIVE OVERALL.
CONSIDERATIONS WITH OTHER THINGS
LIKE- BENEFITS AND HOW THOSE
COSTS ARE DISTRIBUTED WHAT KIND
OF MAKING A DECISION ABOUT WHAT
ROLE IT WANTS TO CONCENTRATE
PROGRAM. TO PLAY AND I DID JUST
WANT TO KNOW AND ONE OTHER THING
AND THAT. IN THE CONVERSATION
AROUND INDUSTRIAL EMISSIONS. I
WANT TO NOTE THAT THE GOVERNOR'S
PROPOSED BUDGET THIS YEAR
INCLUDES. TWO HUNDRED AND TEN
MILLION DOLLARS FOR KIND OF A
NEW INDUSTRIAL DECARBONISATION
PROGRAMME AT THE ENERGY
COMMISSION I THINK IN LARGE PART
TO. EXPLORE NEWER TECHNOLOGIES
IN THAT AREA GIVE AND I THINK A
LOT OF THE CHALLENGES AROUND
KIND OF WHAT THE SOLUTIONS ARE
IN THAT AREA SO- I THINK OVERALL
I THINK THAT'S A- REASONABLE.
ROLE FOR THE GOVERNMENT IN THE
STATE TO PLAY THAT KIND OF TRY
TO EXPLORE AND PILOT AND TEST
AND DEMONSTRATE SOME OF THOSE.
NEW TECHNOLOGIES IN THOSE AREAS-
WHERE THE SOLUTIONS ARE MUCH
MORE DIFFICULT AND SO I DID JUST
WANT TO KIND OF. KNOW THAT AS A
AS A KIND OF ANOTHER PIECE OF
THAT THE STRATEGY THAT MIGHT
WORK IN ADDITION TO WHATEVER
ROLE COUNTRY. PROGRAM A COUNTRY
PLACE. THANK FOR THANKS TO
EVERYBODY THANK YOU MISS
CHAIRMAN. THAT COME. TEXT ALL
RIGHT- WELL. THAT I GUESS I HAVE
A COUPLE. ON WHETHER THINGS ARE
RIGHT OR LEGAL OR IF WE'RE-
DOING. ENOUGH- D. THE IDEA OF
ROLLING OVER THE ALLOWANCES WAS
A BIG. BIG PROBLEM IN THE
EXTENSION OF CAP AND TRADE YOU
KNOW THAT WAS A POLICY DECISION
THAT WAS MADE BY THE PREVIOUS
ADMINISTRATION AND I RECOGNIZE
THAT THE SECRETARY AND THE CHAIR
INHERITED DEBT BUT THIS IS NOT A
NEW DEBATE THAT'S COME OUT WITH
THE WITH THE- IRAQ REPORT AND- I
WAS HERE WHEN THAT HEARING I
WAS. I CONDUCTED THE HEARING FOR
GOD SAKES ON THE APPROVAL AND WE
WILL THE REPRESENTATIONS WITH
THAT- AT THE END OF THE DAY THAT
MAYBE A HUNDRED FIFTY MILLION-
ALLOWANCES AND NOW WE COME TO
LEARN THAT THERE ARE THREE
HUNDRED TWENTY FIVE ALLOWANCES.
BUT THERE ARE TWENTY ONE MILLION
ALLOWANCES SO THIS I. MAC REPORT
AGAIN RAISES HIS CONCERN THAT
THE CAP IN THE CAP AND TRADE
PROGRAM IS NOT STRINGENT ENOUGH
INTEREST RESULTED IT'S NOT GOING
TO DRIVE THOSE- THOSE SCHOOLS
WE'VE HEARD THE CHAIR AND
SECRETARY SAY WERE TO LOOK AT
THIS IN THE SCOPING PLANNING AND
GET A REPORT NEAR THE TWENTY
TWENTY TWO. GOOD LOOKING
ALLOWANCES FOR THE END OF TWENTY
TWENTY THREE IT MAY BE IN TWENTY
TWENTY FOUR THEY'LL BE SOME RULE
MAKING. IT'LL COME UP. I GUESS
THE- IS THERE HASN'T BEEN ANY
SUBSTANTIAL. OVER THE LAST FIVE
YEARS AS FAR AS I CAN SEE. I
HAVEN'T SEEN THE RECOGNITION BY
THE ADMINISTRATION THAT IT'S A
PROBLEM. WE WERE WE ACKNOWLEDGE
IT WE ACCEPT THE REPORT BUT- DO
YOU THINK THAT THERE'S A PROBLEM
THAT THERE'S A SIXTY-
SIGNIFICANT RISK. THAT THE
PROGRAM'S NOT TRICK STRINGENT
ENOUGH. BECAUSE ECRETARY WHAT
WE START OFF WITH YOU. LET ME
ALONE SPANKING IT FESTIVAL ACT
SENATOR THANK YOU FEEL TO NASA
DAY ON THIS AND OTHER ISSUES I
THINK I THINK WHAT WE'VE HAD-
AND I'D REITERATE AS IT RELATES
TO THE ALLOWANCES- IS. THAT
SADLY- J. RANDOLPH AND I.
ACKNOWLEDGE THAT THIS IS
SOMETHING WE NEED TO LOOK INTO
AND THE PROPOSAL IS REALLY TO
UNDERSTAND ONCE. WE HAVE
COMPLETED THE SCOPING PLAN M.
AND REALLY UNDERSTAND WHAT SOME
OF THAT ECONOMIC TRAJECTORIES-
OUR COVERAGE AND HOW THAT
IMPACTS THE MISSIONS THAT WE
LOOK AT THIS ISSUE. AND GET BACK
TO THE SPECIFIC RECOMMENDATIONS-
CHAIR RANDOLPH WENT THROUGH AND
THEN GET DETAIL ON THAT
POWERPOINT PRESENTATION AND- THE
DIFFERENT- REDUCTIONS- FROM
EIGHT TO FULL. HELLO ALL THE
OTHER WAY RATHER THAN THE FULL
PERCENT REDUCTIONS THAT WE'RE
CURRENTLY- SEEING AS A RESULT
OF- EIGHTY THREE NINETY EIGHT-
SO. WE YOU KNOW THE FROM AN
ECONOMIC AND I THINK THAT YOU
BUT TROLL DESCRIBE THIS AND
MAYBE WILL DO SO AGAIN. IT IS
HARD TO TELL IS IT TOO BIG
EITHER TOO MANY OTHER TWO TWO WE
DON'T REALLY HAVE AN ABILITY TO
PINPOINT THAT- CHAIR LIKE HOW
SKI AND SO. I THINK WHAT WE'RE
PROPOSING IS- YES. WHERE WE
LOOKING AT THIS WITH THAT
TENSION BUT I THINK IT THE
STATUS AND I CERTAINLY
APPRECIATE THE I MAC AND YOU. SO
INTENDING TO LIFT IT UP AND GIVE
IT THE ATTENTION THAT IT
DESERVES AT THE MOMENT I DON'T
THINK I'M- RIGHT A PLACE WHERE
WE SAY WE NEED TO TAKE. AND WE
WILL BE TAKING ACTION ACTION TO
JUST SIMPLY CHANGE THINGS YOU
KNOW THE PROCESS WHICH INVOLVES
LAST LOOKING HOST. SCOPING PLAN-
AND THE ALLOWANCES AND
UNDERSTANDING WHAT. MAY NEED TO
BE DONE AND THEN COMING. TO YOU
AFTER DOING A PUBLIC PROCESS-
THROUGH COBB. THAT WOULD- LOOK
AT. POTENTIAL INTENT I JUST
CHECKS. THAT COULD. BE ADOPTED
BY YOU- AND THE LEGISLATURE I'M
SORRY. CURRENT OFFER GUESS WHAT
YOU'RE THINKING WHAT METRICS DO
YOU USE WHEN YOU DETERMINE I
WE'VE WE'VE HEARD FROM. OUR
ESTEEMED SCHOLARS WHAT METRICS
DO YOU USE TO DETERMINE HOW MANY
WHAT'S THE RUSH WHAT'S THE RIGHT
FIX AND WHAT WE JUST CONTINUE.
AND WE'VE GOT MORE THAN ONE
YEARS OF POLLUTION IN THEN.
BANKED ALLOWANCES. WHAT CAN YOU
SHED SOME LIGHT ON THAT. YEAH I
MEAN I GUESS I WOULD START OFF
pBY SAYING- THAT DOES ALL- IT ALL
BOILS DOWN TO THE INVENTORY AND
UNDERSTANDING ARE WE SEEING
REDUCTIONS HAPPEN- AND WE
CONTINUE TO ANALYZE THAT EVERY
YEAR AND ASSESS YOU KNOW ARE WE
REDUCING OUR GREENHOUSE GAS
EMISSIONS- AND AT THIS TIME THE
ANSWER TO THAT IS YES- AND- YOU
KNOW WE HAVE TAKEN MEASURES AS I
DISCUSSED IN MY PRESENTATION- IN
TERMS OF THE SELF RATCHETING
MECHANISM- AND REMOVING
ALLOWANCES FROM GENERAL
CIRCULATION. PER AT EIGHTY THREE
NINETY EIGHT- AND- AND WE WILL
CONTINUE TO ASSESS- THIS PROGRAM
THAT LITERALLY STARTED ONE YEAR
AGO IN THE SENSE OF HOW IT IS
CURRENTLY. STRUCTURED AND SO I
THINK IT'S REALLY IMPORTANT TO
UNDERSTAND- TO LOOK AT THE YOU
KNOW THE CURRENT- ALLOWANCES AND
THE CURRENT PROGRAM AND ASSESS-
YOU KNOW. AS I ALSO MENTIONED
EARLIER WE DO SEE A STEADYING A
STEADILY INCREASING- HIGH SIGNAL
I THINK THAT THE CONCERNS RAISED
BY THE COMMITTEE ARE REALLY
IMPORTANT VALID CONCERNS THAT WE
ABSOLUTELY NEED TO ROLL UP OUR
SLEEVES AND EXAMINE- BUT I THINK
IT'S IN THE CONTEXT OF.
UNDERSTANDING HOW THE CHANGES
WE'VE MADE MORE RECENTLY ARE
PLAYING OUT- IT'S IN THE CONTEXT
OF UNDERSTANDING WHAT WE EXPECT
FROM THE CAP AND TRADE PROGRAM
WITH REGARD TO OUR OVERALL
EMISSIONS REDUCTION STRATEGY IN
THE SCOPING PLAN. AND YOU KNOW
IT'S A RECOGNITION THAT A MARKET
BASED PROGRAM NEEDS TO SEND SOME
CONSISTENT SIGNALS TO THE
MARKET- AS- YOU KNOW AS AS
DALLAS MENTIONED EARLIER THE
IDEA OF SORT OF. PLANNED
SYSTEMATIC PROGRAM REVIEWS WHERE
YOU ARE ASSESSING YOUR PROGRAM
AND DETERMINING WHETHER OR NOT
YOU NEED TO- TO MAKE ADJUSTMENTS
NEED TO BE PART OF A ROBUST
CONVERSATIONS AND IT NEEDS TO.
NOT NECESSARILY BE. SOMETHING
THAT HAPPENS YOU KNOW EVERY
SINGLE YEAR OR OR MORE
FREQUENTLY THAN IS NECESSARY SO
I THINK YOU'RE HEARING BOTH FROM
MYSELF AND SECRETARY BLUMENFELD-
ANY INTEREST IN DIVING DEEPER
INTO THIS QUESTION.
UNDERSTANDING. THAT THE- WITH
THE ROLE OF THE BANK ALLOWANCES
AND WHAT EFFECT IT CAN HAVE ON
THE ON THE PROGRAM BUT WE WOULD
LIKE TO DO THAT. AFTER WE ASSESS
WHAT WE EXPECT FROM CAP AND
TRADE AS A PART OF OUR LARGER
STRATEGY- AND THEN WORK BEGIN
WORKING THAT PUBLIC PROCESS
AFTER THIS COPING PLAN IS
ADOPTED- IN TERMS OF OUR-
TYPICAL PRE REGULATORY WORKSHOPS
AND DISCUSSION. WITH
STAKEHOLDERS TO GET FEEDBACK AND
INFORMATION- AND YOU KNOW
ADVOCACY FROM ALL. INTERESTED
STAKEHOLDERS TO UNDERSTAND- HOW
WE SHOULD ADDRESS THE PROGRAM
GOING FORWARD AND YOU DON'T HAVE
ANY CONCERNS THAT YOU MIGHT BE
WAITING TOO LONG SO THAT THERE
MIGHT NOT HAVE ENOUGH TIME TO
CHANGE THE PROGRAM IN ORDER TO.
TO MEET OUR OUR CLIMATE GOALS. A
REDUCTION REDUCTION SHOULD STEP
DOESN'T CONCERN YOU WITH ALL THE
URGENCY. I HATE YOU KNOW GIVEN
THAT WE HAVE- MADE RECENT
REDUCTIONS I THINK THAT- THERE
IS. YOU KNOW WE NEED TO ASSESS
THOSE THOSE RECENT REDUCTIONS
AND HOW AND WHAT THE EFFECT
THOSE HAVE- AND I THINK IT IS
POSSIBLE TO INGEST- BETWEEN NOW
AND TWENTY THIRTY AND GOING
FORWARD- IF IT'S DETERMINED THAT
THAT'S NEEDED AND NECESSARY- AND
SO I DO THINK THAT WE CAN-
CONTINUE TO MAKE PROGRESS TO
TILT TOWARDS OUR GOALS WHILE WE
UNDERSTAND- WHETHER OR NOT WE
CAN MAKE. EVEN BETTER PROGRESS.
DR CONVERGING AT YOUR HAND UP
FOR SECOND. YEAH I JUST I WANTED
TO CHIME IN BECAUSE I FIRST SAW
THIS IS A VERY NASTY PROBLEM
THAT OUR POLICY MAKERS OF
INHERITED- S. AND I WANT TO READ
A KNOWLEDGE AS SOMEBODY WHO'S
BEEN CRITICAL OF THE PROGRAM AND
HE THINKS THERE'S A NEED TO
REFORM IF EVERY POLICY MAKER THE
GOVERNOR OF THE PRO TEM SPEAKER
OF THE ASSEMBLY SAID YOU'RE IN
CHARGE GO FIGURE IT OUT. THE
FIRST THING I WOULD DO IS
CONDUCT A SERIOUS ANALYTICAL
EXERCISE S. IS BEEN PROMISED IN
THIS COUPLE AND WE'VE NOT YET
SEEN WHAT THAT'S GOING TO BE
BETTER IT'S BEEN ABOUT THE
PROMISE TONIGHT I DO APPRECIATE
THAT. THE TENSION THAT I HAVE
BEEN IN A KNOWLEDGE IN THE
IMPORTANCE OF DOING THAT
ANALYSIS AND DOING THAT RIGHT IS
THAT YOU KNOW AIR B. DID AN
ANALYSIS OF ITS CAP AND TRADE
PROGRAM WITH ALL OF THESE POST
TWENTY TWENTY FEATURES AND IT
SAID YOU WERE FINE IF THERE'S A
HUNDRED AND FIFTY MILLION
ALLOWANCES BANKED. LOOKING AT
EXACTLY THESE FEATURES AND I
MENTION THIS NOT NOT. TO GET
INTO AN ARGUMENT ABOUT ANY OF
THIS BUT- WE THINGS ARE WORSE
THAN THAN WERE ANTICIPATED IN
THAT ROLE MAKING IT'S NOT EVEN
CLOSE IT'S LIKE TWICE THE LEVEL.
THAT WAS ANTICIPATED- SO I GET A
LITTLE SENSITIVE WHEN PEOPLE
START SAYING ALL BUT THE PROGRAM
IS DIFFERENT NOW WE KNOW WHAT
THE PROGRAM HAS LOOKED LIKE
SINCE MID TWENTY EIGHTEEN AND
EVERY TRADER WHO PLACES A BET
EVERY PERCH IN PERSON WHO
PURCHASES THAT AUCTION. KNOWS
EXACTLY WHAT THOSE RULES ARE
THERE'S NOTHING NEW WE'RE
LEARNING. SO THAT THE TENSION I
WANT TO SERVICE HERE IS THAT. IF
WE ARE GONNA HAVE AN HONEST
DISCUSSION ABOUT THIS A LITTLE
LATER. THE QUESTION IS HOW DO WE
SORT OF TRUST WITH THE NUMBERS
ARE GOING TO BE BECAUSE WE HAD A
KNOCK DOWN DRAG OUT ABOUT THIS
FOUR YEARS AGO. AND WE LOST YOU
KNOW FOR FIVE YEARS OF CLIMATE
PROGRESS WE CAN'T AFFORD TO DO
THAT AGAIN. AND I DON'T THINK
ANYONE COULD SAY HERE'S THE
PERFECT STRATEGY WITHOUT GOING
THROUGH THE EXACT PROCESS THAT.
I'VE HEARD THE CHAIRMAN THE
SECRETARY ADVOCATE SO- THAT'S
WHAT KEEPS ME UP AT NIGHT AS
WELL AND THAT'S WHAT I'M
CONFLICTED ABOUT HIS ID. THERE
ARE NO MAGIC LEVERS TO PULL WORK
POLICY STRATEGIES TO JUST
MAGICALLY IMPLEMENT. WE'VE GOT
TO HAVE AN HONEST CONVERSATION
ABOUT ALL THE STUFF AND THEN
WE'VE GOT TO BE ACCURATE ABOUT
IT. AND THAT'S THE PART THAT'S
BEEN MISSING AND I JUST
INCLUDING WITH THE CHAIR. I MEAN
IT HAS BEEN IMPOSSIBLE TO HAVE
AN HONEST CONVERSATION ABOUT
THIS AND THAT'S NOT A COMMENT ON
YOUR CURRENT LEADERSHIP BUT IT'S
A HISTORICAL PROBLEM THAT
TECHNICAL EXPERTS HAVE BEEN
DEALING WITH. THIS AND I'M JUST
BEGGING. FOR GOING TO WAIT CAN
WE. PLEASE SPEAK OPENLY. YEAH
THERE ARE SOME. THERE'S
CERTAINLY BEEN HAS BEEN. A CARB
SAID A GENERAL DISMISSIVE NESS
ABOUT- POINTS TO THE PRINT RACE
WHETHER IT WAS THE- BRIAN- NO
VICKY. HIS RESIGNATION LETTER
THAT WHEN HE LEFT THE STATE AS A
DIRECTOR OF. THE STATE HI
CLIMATE POLICY THE CENTER FOR
BIOLOGICAL DIVERSITY HE SERVED
ON THE PROTOCOL THE OFFSET-
COMPLIANCE BY TASK FORCE WITH
CARBON HE PROTESTED BECAUSE HE
THOUGHT IT WAS FUNDAMENTALLY
FLAWED. I KNOW THAT IT WHEN KERR
WAS ASKED BY THE LA- TIMES ON
THIRD SCOTT ON ABOUT THE OFFSET
PROGRAMS THEY SAID THE PROGRAM
WORKED EXACTLY AS WE EXPECTED
THERE'S NOTHING. ON TOWARD
THERE'S NO QUESTION OF ITS
LEGITIMACY I KNOW THE SENATE HAS
RAISED CONCERNS ABOUT THE CAP
AND TRADE PROGRAM WHETHER TO
RESCIND THE FLOOR PRICE
ADDRESSING A PRICE COLOR
DEVELOPING ANNUAL BANKING
METRICS TO MEASURE ALLOWANCES AN
OFFSET HOLDINGS IN PRIVATE. AND
GOVERNMENTAL HOLDINGS IN RESERVE
ACCOUNTS DEVELOPING RULEMAKING
APPROACHES FOR ADJUSTMENTS TO
ALLOWANCE SUPPLIES ON AN AUTUMN
MATIC BASES THAT CAN BE
ANTICIPATED BY THE MARKET SO THE
MARKET KNOWS IT'S GOOD TO GO BUT
DEVELOPING A METHOD FOR
CALCULATING AND USE COMPLIANCE
INSTRUMENTS AT THE END OF EACH
COMPLIANCE PERIODS AND WELL IN
ADVANCE OF THIS. OF THIS AND-
THE THERE THE RAYS THEIR BUT IT
SEEMS THAT CARB. SAYS WE'RE
SEEING THE- THIS IS WHAT'S LEGAL
THIS IS WHAT WE'RE GOING TO DO
AND- I HOPE. THAT THE BOARD
TAKES THE RECOMMENDATIONS OF THE
IRAQ TO HEART AND LOOKS AT SOME
OF THESE THESE QUESTIONS- REPORT
IT TO MY NEXT QUESTION I. WOULD
APPRECIATE A RESPONSE SECRETARY
BLOOM FELT. HM I GUESS HE AND
MEMBERS- WE NEED AND I THINK I
SPEAK FOR EVERYONE AND THEN
THERE THE ADMINISTRATION I MEAN
WE WELCOME THESE CONVERSATIONS
AND WE WANT THEM TO BE
CONSTRUCTIVE TO REMEMBER COMING
WORDS. POINTS LIKE WE ADD TO THE
EXTENT THAT HAS BEEN TIMES
HISTORICALLY WHERE THERE IS-
JUST A KNOWLEDGE IS THAT I FEEL
AND JAY RANDOLPH- CAN SPEAK TO
THIS MAYBE WE WE'VE COME INTO. A
HOST EIGHTY THREE NINETY EIGHT
WILD WHERE PEOPLE FELT
FRUSTRATED WITH THAT PROCESS
PEOPLE FELL I'M EXHAUSTED I'M A
JOB IS TO COLLECTIVELY
IMPLEMENTED IT AND TO MAKE SURE
ALL THAT. WHERE THERE IS A NEED
TO RECALIBRATE AND FINE TUNE IT
THAT WE DO AND WE INCREDIBLY
SINCERE. IN OUR WELCOMED US AND
OPENNESS TO HAVING THESE
CONVERSATIONS WE MAY NOT ALWAYS
AGREE WE MAY HAVE DIFFERENT
POLICY VIEWS ABOUT WHEN WE GET A
REPORT- YOU KNOW WITH WITH THE
CLARITY THAT YOU PROVIDED AROUND
ALLOWANCES AND THAT. THE MORE
THAN THREE HUNDRED MILLION BANKS
WE'RE GOING TO TAKE THIS
SERIOUSLY AND I THINK BOTH CHAIR
ROUND UP FOR MYSELF- HAVE
COMMITTED- POST GETTING THE MID
MARCH TWENTY THIRD RD MODELING
AND SCENARIO IS TO HAVE A REALLY
HONEST DISCUSSION ABOUT HOW WE
DO THAT- WHICH YOU WILL BECAUSE-
WHEN I HAD TO DEFEND. A POLICY
WHERE THEY HAD TO SUPPORT
REDUCTIONS THAT ARE AFFORDABLE
THAT ARE EFFICIENT. I'M AND AS
DALLAS POINTED OUT YOU KNOW THAT
THERE'S A LOT STILL THAT WE CAN
DO COST EFFECTIVELY WE WANT TO
MAKE SURE THAT WE DO THAT. AND
WE'RE NOT HERE TO SAY. YOU KNOW
IT THIS WAY ALL THE HIGHWAY
FACEBOOK ARE IN A PLACE WHERE WE
FEEL OBLIGATED TO IMPLEMENT THE
LAWS ON THE BOOKS AND FOLLOW THE
PROCESS THESE- AND AS WE DOES
OFFICE. CONSTRUCTIVELY WHAT WITH
YOU CHAD AND THE ENTIRE
LEGISLATURE TO COME UP WITH
FIXES. WHERE WE SEE THAT THE
NECESSARY SO WE WON- TO SENATOR
DASCHLE'S POINT WHERE 1% OF
ADMISSIONS- GLOBALLY BUT WE CAN
HAVE A BIGGER ROLE IF WE ARE
HAVING THIS HONEST CONVERSATION
ABOUT WHAT WORKS WHAT DOESN'T
WHAT- AND- IT CAN BE INCREDIBLY.
INSTRUCTIVE I'D I'D AND ON.
SAYING I THINK THE COMPLEXITY
CHAIR WHITE HOUSE GET HAVING
SOME OF THESE PUBLIC
DISCUSSIONS. IS MAKING SURE THAT
WE'RE NOT CREATING EXPECTATIONS
UPON WHICH MARKET PARTICIPANTS
THAT WOULD LEAD TO THE END PRICE
VOLATILITY IN OTHER THINGS AND
SO. I THINK THE STEPWISE
DISCUSSION OF WHAT THE ISSUES
ARE HOW WE HOW WE DEAL WITH THEM
IS SOMETHING THAT- SADLY CHAIR
RANDOLPH AND I- INCREDIBLY OPEN
AND- WILLING TO HAVE AND
APPRECIATE THIS BEGINNING OF
THIS CONVERSATION TODAY. I WAS
YOU KNOW. MAYBE WE GET SOME HELP
FROM THE PACIFIC NORTHWEST
BECAUSE THE STATE OF WASHINGTON
LED BY SENATOR CARLISLE'S
EXAMPLE HAS A CAP AND INVEST
PROGRAM. NOT A CAP AND TRADE BUT
A CAP AND INVEST IN THEY HAVE
THE BENEFIT OF WHAT SEEING
CALIFORNIA DO WHAT THEY'RE DOING
AND SEE WHAT THE EUROPEANS ARE
DOING. BUT THEY TIE. DIRECT
EMISSION REDUCTIONS INTO THE
ALLOWANCES AND THEN TO THE
OFFSET PROGRAMS YOU DON'T GET
TO. USE YOUR OFFSET AND UNLESS
YOU MAKE A DIRECT EMISSION
REDUCTION. AND THEY'RE FAST THE
AIRPORT THERE WAS A SECURE CITY
CALIFORNIA THEY WOULD LIKE TO
JOIN OUR WESTERN- INITIATIVE.
BUT THEY'RE GOOD AT WE'RE GONNA
NEED SOME RULE MAKING SO WHAT
ARE THE PLANS FOR THAT RULE
MAKING. AND GIVEN THE REPORT
THAT WE HAVE WITH IMAX DOES.
YOUR RANDOLPH. DOESN'T DOES THAT
OFF. THIS HARMONIZATION OF THE-
PROGRAM THE CAL AND PROGRAM
OFFERS POP. TO FINE TUNE OUR
PROGRAM- WELL I TAKE THINGS- AT
FIRST- I'M GONNA GET ME TO GO
BACK TO WHAT YOU WERE SAYING
ABOUT THAT STAY THE COURSE- YOU
KNOW TO ME STAY THE COURSE MEANS
THAT CAP AND TRADE WILL CONTINUE
TO BE AN IMPORTANT PART OF OUR
STRATEGY- AROUND REDUCING GHG
EMISSIONS. BUT WE WILL ALWAYS BE
OPEN TO ADJUSTING IT WHERE
NECESSARY NSX SECRETARY
BLUMENFELD INDICATED YOU KNOW
WITH A PUBLIC PROCESS IN A
STEPWISE FASHION YOU KNOW AS WE
HAVE DONE IN THE PAST- WE ARE
OPEN TO MODIFYING PROGRAM AS
NECESSARY- WITH REGARD TO-
WASHINGTON- AND CAME BACK- YOU
KNOW OUR PROGRAM IS AS WE
DISCUSSED YOU KNOW THERE'S A LOT
OF- PROVISIONS OF AB THREE
NINETY EIGHT THAT- YOU KNOW
SPECIFICALLY INDICATE THE
STRUCTURE OF OUR PROGRAM- AND
THERE ARE. STRATEGIES THAT
WASHINGTON HAS DEPLOYED THAT ARE
SLIGHTLY DIFFERENT THAN OURS SO
FOR INSTANCE- YOU KNOW THEY'RE
OFFSETS ARE- ARE CAN BE NO MORE
THAN 8% OF COMPLIANCE BUT
THEY'RE UNDER THERE- ALLOWANCE
CAD WHERE AS WE- IN CALIFORNIA
CHOSE A- LOWER LIMIT- FOUR
PERCENT- AND- NOT UNDER THE CAT-
SO. YOU KNOW THERE'S DIFFERENT
STRATEGIES TO ACHIEVE SOME OF
THE SAME THINGS LIKE NOT OVER
RELYING ON- OFFSETS- SO- I GUESS
I WOULD JUST SAY YOU KNOW
THERE'S THERE ARE. CONVERSATIONS
WITH WASHINGTON ABOUT WHAT THEIR
PLANS ARE- AND WHETHER OR NOT-
LINKAGES IN THE PROGRAMS ARE.
POSSIBLE- BUT AS- YOU KNOW I
JUST GO BY TO THE LEVEL POINT-
THAT WE ARE ALWAYS OPEN TO
ADJUSTING OUR PROGRAM BUT THAT%
IT JUST NEEDS TO BE- YOU KNOW
FOCUSED ON- AT. A CLEAR CLEAR
EVIDENCE CLEAR ANALYSIS AND A
ROBUST PUBLIC DISCUSSION WHERE
ALL POINTS OF VIEW- CAN HAVE THE
OPPORTUNITY TO BE PRESENTED AND
CONSIDERED. I WOULD BE A LEO
DON'T YOU THINK I MEAN WE HAVE
WE SET UP THIS PROGRAM YOU WERE.
YOU AROUND THE OLD DAYS- THAT WE
HAVE THIS PER PROGRAM WE WANTED
TO INVITE OTHER ENTITIES OTHER
STATES TO DO YOU DO THIS FREE
FLOW. OF TREATING AND REDUCTIONS
SO WE WOULD REDUCE ACTUAL
MISSION ARE WE MISSING AN
OPPORTUNITY WITH THE STATE OF
WASHINGTON ON NOT- NOT PREPARED.
TRYING TO FIGURE IT OUT IN AN
EXPEDITED WAY- MISTER CHAIRMAN I
THINK UNFORTUNATELY I. AM NOT.
TOO FAMILIAR WITH KIND OF THE
DESIGN OF THE WASHINGTON PROGRAM
KIND OF EXACTLY ALL THE
DIFFERENT FEATURES THAT I KNOW
SOME OF THE I DID NOT REPORT-
KIND MENTIONS SOME OF THAT
OFFSETS FEATURES AND- YOU
MENTION IN YOUR- YOUR COMMENTS
JUST NOW AS WELL- I MEAN I THINK
THERE'S A LOT OF- COMPLICATED-
SET OF ISSUES AROUND SHE KIND OF
LINKING TO OTHER JURISDICTIONS.
AND DETERMINING SORT OF OUT OF
THERE THE PROGRAMS ARE KIND OF
DIFFICULT WHEN TECHNICALLY
STRINGENT- SO THERE'S A LOT OF
CHALLENGES TO THAT BUT THERE IS
ALSO A KIND OF A LOT OF MERIT I
THINK TO KIND OF EXPLORING THOSE
ISSUES JUST FROM A- KIND OF-
DEMONSTRATION PERSPECTIVE AS
WELL AS- YOU KNOW POTENTIAL FOR.
JUST LOWER OVERALL COSTS- ACROSS
KIND OF ALL JURISDICTIONS AND
KIND OF REDUCING EMISSIONS SO OF
COURSE I GUESS I'M NOT ABLE TO
COMMENT TOO MUCH ON THE
SPECIFICS OF THE WASHINGTON
PROGRAM AND- AND YOU KNOW HOW IT
KIND OF LIKES TO CALIFORNIA AND
KIND OF THE PROCESS FOR THAT
EXACTLY BUT- YOU KNOW IT'S
DEFINITELY KIND OF WORTH- WORTH
EXPLORING I THINK IT'S JUST A-
TO KNOW WHAT I MEAN. AT LEAST
BASED ON MY FAMILIARITY WITH THE
PROCESS OF THEIRS. IT CAN BE
VERY COMPLICATED AND A LOT OF
IMPORTANT KIND OF CONSIDERATIONS
GO INTO MAKING SURE THAT THOSE
PROGRAMS ARE EQUIVALENT BEFORE
THEY KIND OF CONNECT WITH ONE
ANOTHER. DR BURCHELL. THANK YOU
. I REALLY AGREE WITH WHAT SHE
SAID AND I DO ALL OF. I THINK
I'M- OF JUST A COUPLE. THE
LOOKING. SINCE I KNOW THEY ARE
WENT THROUGH FOR YOU. AND
WORKING OUT NEGOTIATIONS WITH
QUEBEC AND- IT WAS APPROACHED TO
DO THAT THE WAY IT WAS DONE AND-
I'M VERY PROUD OF THAT- HOWEVER.
I THINK. WE NEED TO. RECOGNIZE I
THINK YOU WANT TO RECOGNIZE
CALIFORNIA STANDS OUT ON A
GLOBAL STAGE I DO A LOT OF WORK
IN EUROPE I'VE DONE SOME WORK IN
ASIA AND I AM. AMAZED AT THE
ATTENTION OUT SO DO YOU KNOW
CALIFORNIA IS WITH A HUGE
ECONOMY WHAT SHIFT SIX LARGEST
ECONOMY IN THE WORLD ANYWAY BUT
THE ATTENTION THE CALIFORNIA
DECISIONS ON THIS THIS POLICY
DIRECTION BACK IN THE ORDER OF
ATTENTION THAT A LOT OF OTHER
JURISDICTIONS TAKE COURAGE FROM
DECISIONS THE CALIFORNIA MAKES
US. I THINK US SENATOR DOLLY
SAID EARLIER EARLIER THAT YEAH
WE'RE 1% GLOBAL AMBITIONS BUT WE
HAVE GREATER THAN THAT INFLUENCE
IN CALIFORNIA'S COMMITMENT TO
CARBON PRICING AS PART OF A TOLL. ROAD HARBOR. PERFORMANCE LED
TO SITUATION GLOBE WORK. WERE
ROUGHLY TWO FIVE PER OF. AND ARE
NOW CO BY SO TYPE OF CARBON. AND
YOU MIGHT BE SURPRISED THAT A
GREAT PORTION OF THOSE ARE OUT
OF CARBON PRICE OR HIGHER THAN
THE CURRENT PRICE THAT WE
OBSERVE IN CALIFORNIA. IT WE
DISCUSSED EARLIER THE BARRIERS
TO EXPANDING CARBON PRICING IN
CALIFORNIA THERE. IT'S VERY
CHALLENGING BECAUSE OF LEAKAGE
BUT LINKING WITH OTHER
JURISDICTIONS IS THAT IS THE KEY
PIECE TO ADDRESSING THAT LEACH
LEAKAGE CHALLENGE LINKING
ADDRESSES LEAKAGE. BECAUSE IT
BRINGS IN TRUCKS WERE CALLED
MARKET ALIGNING CLASS OF CLIMATE
POLICY STRINGENCY. POSSIBLY LEAK
FORMAL LINKING WITH MARKETS
OTHERWISE ALIGNING CLIMATE
POLICY GOALS AS WE CAN WITH
ORDER BENEFITS STOPPED. BY WITH
THAT WITHIN A- SPECIFIC TRADING
MARKET. THIS IS PROLIFERATING
ACROSS WESTERN STATES WAS MORE
MORE INTEREST IN THIS SO I WOULD
THINK THAT IT'S IN CALIFORNIA'S
INTEREST I THINK IT. I THINK
THIS IS SOMETHING THAT OUR
DOCTOR SHOULD DISCUSS IN TWENTY
TWENTY TWO DOES. THE OBSTACLES
AND OPPORTUNITIES FOR LINKING
WITH OTHER JURISDICTIONS
ALIGNING WITH OTHER
JURISDICTIONS. IN ORDER TO GET A
GRIP GROWING SENSE OF MOMENTUM
ACROSS ESPECIALLY ACROSS THE
WESTERN POWER GRID BUT IN
GENERAL ACROSS THE WHOLE NATION
OF A CLIMATE MOVEMENT THAT CAN
HELP. CALIFORNIA ACHIEVE ITS
SPECIFIC GOALS. THANK OF BLOOM-
CHAIR RANDOLPH. WHAT ARE YOUR
THOUGHTS ON. THIS I'M REPORT
THREAT. ABOUT SO. OR REPLACE THE
OFFSET PROGRAMS WITH PUBLIC
EXPENDITURES I TALKED THE ELIO
HAS TALKED ABOUT IT. I HAD A
CLIMATE DIVIDEND- MEASURE ONE
KID THAT COMPETE WITH AB THREE
NINETY EIGHT SO OBVIOUSLY I LOST
OUTPUT WHAT DO YOU THINK ABOUT
THAT AS- ADDRESSING THESE YOU
KNOW MULTI LEVER OUTCOMES THAT
WE WANT YOU KNOW- ECOLOGICAL
SUSTAINABILITY ENVIRONMENTAL
JUSTICE MORE IN A COORDINATED
WAY. ON THEIR OFFSET PROBE
AND YOU WANT TO TALK TO ON. I
GUESS I WOULD SAY- I THINK THERE
ARE- AS YOU KNOW QUESTIONS
ABOUT- USE OF PROCEEDS- FROM THE
PROGRAM OR OTHER SOURCES OF
FINANCE- AND- YOU KNOW IN MY
VIEW THE OFFSET PROGRAM HAS-
INSURED. REDUCTIONS AND LEVERAGE
THE MARKET- BUT A LOT OF YOU
KNOW A LOT OF THESE QUESTIONS
ARE REALLY KIND OF SQUARELY IN
THE IN THE HANDS OF THE
LEGISLATURE- IN TERMS OF. HOW WE
CHOOSE TO INVEST THE PROCEEDS-
AND- AND YOU KNOW SORT OF WHAT
ARE THE- KIND OF SIDEBOARDS AND
REQUIREMENTS THAT WE PUT AROUND
THAT- AND WHAT ARE WHAT ARE WE
TRYING TO ACHIEVE WITH- WITH
THE- THE USE OF THE PROCEEDS-
AND SO I THINK THAT'S- VERY MUCH
A- A LEGISLATIVE CONVERSATION
THAT'S IMPORTANT HOUSE I GUESS
MY THE GOVERNOR'S BUDGET YOU
KNOW I'VE BEEN RATHER ALAN.
ANIMATED ABOUT THE
INAPPROPRIATENESS OF SAFE
DRINKING WATER COMING OUT OF THE
CAP AND TRADE I'M CONCERNED WITH
AB SIX ONE SEVEN WHICHI BELIEVE
IS A PUBLIC HEALTH A HUMAN
SERVICES A- GOOD GOVERNMENT. IN
AN AIR QUALITY PROGRAM BUT THOSE
PROGRAMS ARE BEING
ADMINISTRATION IS ASKING US TO
TAKE THEM SO WE ADDED THE CAP
AND TRADE PROCEEDS AND THAT'S
THE BUDGET THAT WAS GIVEN TO US
IN JANUARY THEY'RE NOT ASKING TO
SHARE RESPONSIBILITY WITH PUBLIC
HEALTH HUMAN SERVICES DEAR
BORDER ST ALL THE SICK AT ALL ON
THE CAP AND TRADE IT FOR AT
LEAST ONE. SIX ONE SEVEN AND
THE- SAFE DRINKING WATER SO LOOK
FORWARD TO THOSE THE MAY REVISE
IN THE THINKING THAT MIGHT
COUPLE THESE YOU KNOW ECOLOGICAL
SUSTAINABILITY- EMISSIONS
MITIGATION ENVIRONMENTAL JUSTICE
IN A COORDINATED WAY WITH THE
WITH THE PROCEEDS. I HAVE A
QUESTION ON THE FORCE OFFSETS IN
PARTICULAR THE I. MAC REPORTS
SPENDS QUITE A BIT OF TIME
TALKING ABOUT I'VE SPOTS I. DID
OUR PANEL WITH THEIR- WE'RE ALL
FAMILIAR THE LA WATER FROM SEPT
TO FIRST TALKED ABOUT BPF ENERGY
BUYING ANY RANCH IN MENDOCINO
COUNTY AND CARBON CREDITS WERE
OFFSET BY THEIR ADMISSIONS AT
THE OIL REFINERY- WE ALL KNOW
THAT IN THE SUMMER OF TWENTY
EIGHTEEN. THE GETTY RANCH
BASICALLY BURNED DOWN IN NEARLY
ALL THE PLANNED CARBON CREDITS
WERE RENDERED USELESS HOWEVER
MONTHS LATER. TO YOUR BOARD
ALLOWED THE OPERATION TO SELL
THOSE CREDITS TO POLLUTERS BASED
ON THE DECISION THAT THE STATE
OF THE RANCH BEFORE THE FIRE.
EVERYTHING MIGHT HAPPEN AT AT
EIGHTIES RANCH WAS PERMITTED
UNDER THE RULES INCLUDING THE
SALE OF THE ASSETS ON THE LAND
SO THE QUESTION COMES IN WHEN
WE'RE LOOKING AT ALL THESE
PROGRAMS ALTHOUGH THE
TRANSACTION WAS LEGAL DO YOU
THINK IT WAS WRONG. SECRETARY
AND CHAIR DO YOU THINK THE BUYER
ACTUALLY RECEIVE WHAT IT WAS
AGREED TO BY. OKAY I WILL I'LL
TAKE THIS- THIS ONE INDEED- YOU
KNOW THE PROCESS FOR HAVING A
APPROVING AN OFFSET PROTOCOL IS
VERY COMPLEX TAKES A SIGNIFICANT
AMOUNT OF TIME AND INCLUDES- AS
I DISCUSSED IN MY PRESENTATION
IT INCLUDES- THE ADDITIONAL-
REQUIREMENTS FOR THE BUFFER
POOL- AND SO YOU KNOW WE THE
QUESTION OF- HOW PARTICULAR OR
ISSUES RELATED TO PARTICULAR
PROTOCOL APPROVALS- AND- AND HOW
THAT- HOW THOSE PLAY OUT. ARE
ALL SORT OF PART OF THESE
TECHNICAL- CONSIDERATIONS IN THE
IN THE OFFSET PROGRAM AND AS I
MENTIONED IN MY PRESENTATION I
HAVE ASKED STAFF TO- TAKE A LOOK
AT SETTING UP A PUBLIC WORKSHOP-
AND DIVING INTO SOME OF THESE
DESIGN ELEMENTS WITH REGARD TO-
TO THE OFFSET PROTOCOLS- AND I
WILL SAY YOU KNOW THERE ARE
CERTAIN- AREAS WHERE- REASONABLE
PEOPLE CAN LOOK AT THE SAME
INFORMATION AND DISAGREE- AND
DRAW. DIFFERENT CONCLUSIONS- IN
TERMS OF THE ORIGINAL STRUCTURE
OF THE PROTOCOL APPROVAL
PROCESS- AND YOU KNOW THEY WERE
THERE WAS ROBUST DEBATE AT THE
TIME- THAT- FORESTRY PROTOCOLS
WERE APPROVED ABOUT HOW TO
CONSIDER THINGS- SUCH AS
ADDITIONALITY AND PERMANENCE AND
OTHER ISSUES- WE CAN CERTAINLY
HAVE A OF A PUBLIC DISCUSSION
ABOUT WHETHER WE NEED TO REVISIT
ANY OF THOSE- FACTORS AND I
THINK THAT WILL BE PART OF THE
DISCUSSION- IN THE END THE
WORKSHOP PROCESS THAT WE ARE
PLANNING TO KICK OFF LATER. THIS
YEAR- BUT AT YOU KNOW AT. I
THINK WE NEED TO- BE OPEN TO
HAVING THOSE DISCUSSIONS BUT WE
ALSO NEED TO RECOGNIZE THAT
THERE MAY BE A POINT AT WHICH WE
DISAGREE- AND IT DOESN'T MEAN
THAT WE ARE BEING. DISHONEST IT
MEANS THAT WE ARE SIMPLY.
LOOKING AT THE SAME DATA AND
DISAGREEING WITH THE POLICY
APPROACHES THAT ARE CHOSEN I
ACKNOWLEDGE THAT THE TRANSACTION
WAS LEGAL YOU KNOW THERE'S
PLENTY OF LAWYERS ON THE SCREEN
HERE IN IN THE AUDIENCE THERE
I'M JUST IT'S THAT THE IDEA THAT
THIS TYPE OF. TRANSACTION NEEDS
TO BE ADDRESSED SO THAT IT
DOESN'T HAPPEN AGAIN NO IT'S
NICE TO TALK ABOUT THE PROTOCOLS
IT'S NICE TALK ABOUT PRICES BUT-
YOU KNOW I'VE- BEEN TO. SOME
PEOPLE NOTED TO SOMETIMES I GET
ANIMATED FROM TIME TO TIME AND
SAYING YOU KNOW WHEN YOU GET
CREDITS FOR BIRD TELL FORESTS.
IN THE END THAT CAN'T POSSIBLY
READ OVERALL REDUCE OUR
GREENHOUSE GASES SOMETHING'S GOT
TO CHANGE SO I HOPE THAT. THE
MESSAGES IS GET THAT AT LEAST
THIS LEGISLATOR WOULD LIKE TO
SEE WHEN WE LOOK AT THIS IT'S
WITH AN EYE TOWARDS THIS. IF
THIS ENDS NOW THAT'S NOT WHAT
EVER LOOPHOLE THAT SOMEBODY
THOUGHT THAT THEY. BARGAINED FOR
THAT IS. WELL AT IT SHOULD
SHOULD IT SHOULD NEVER HAPPEN
AGAIN THAT'S I DON'T I DON'T
MEAN TO A- PETER IT. MMHM. OKAY
TO DEATH. ON THE ON MY MAC
REPORT. HOW DO YOU INVITATION
THE RECOMMENDATIONS THAT THEY BE
MADE WITH MADE BEING A DRESS
DURING THE SCOPING PROCESS HOW
WOULD THAT HOW HOW'S THAT COULD
BE LAID OUT WE HAVE THE REPORT
WE'VE RATED HOW WITH THAT
PRESENTATION WORK OUT AND THEN
I'LL GET TO THE I. MECK MEMBERS
OF HOW THEY WOULD LIKE TO HAVE
IT HAD. DEALT WITH BUT I WANTED
TO SEE WHAT YOU ENVISION WE'RE
IN THE MIDDLE OF A SCOPING PLAN
HOW ARE THESE RECOMMENDATIONS
GOING TO BE. ADDRESSED WELL I
WOULD START WITH THE SPECIFIC
RECOMMENDATION ON- THE SCOPING
PLAN ITSELF- AND THEY REQUEST
THAT IT ANALYZES THE ON GOING
ROLE OF CAP AND TRADE AND- WE
ARE DOING THAT- BUT A LOT OF THE
RECOMMENDATIONS ARE REALLY AS WE
DISCUSSED EARLIER KIND OF MORE-
IN IN THIS SPECIFIC REGULATORY
DESIGN OF THE PROGRAM- AND SO WE
ANTICIPATE- ADDRESSING THOSE-
AFTER THE SPENDING PLAN IS
COMPLETED AS PART OF THE FREE
WORLD MAKING WORKSHOP AS PART
OF- AN ADDITIONAL REPORT TO THE
LEGISLATURE SUGGESTED BY
SECRETARY BLUMENFELD AND- AS
PART OF THAT- YOU KNOW DETAIL
THE PUBLIC PROCESS- THAT WILL
DIVE INTO. SOME OF THESE
IMPORTANT POLICY QUESTIONS THAT
ARE HIGHLY TECHNICAL- AND WOULD
BENEFIT FROM- SOME. YEAH OF DATA
THAT- AT IN TERMS OF HOW THE
PROGRAM IS CURRENTLY PERFORMING. SO FOR INSTANCE ON THIS
ASSESSMENTS THAT CARBS SHOULD
REVISIT THE DATA AND ASSUMPTIONS
THAT YOU SIGNED ON FOR
ALLOCATIONS YOU WOULD SCHEDULE
PART OF THE HEARING TO LOOK AT
THE I MAC REPORT ON THE FREE
ALLOCATIONS AND WHAT THAT
REGULATORY DESIGN. OR IF THE
ASSUMPTIONS THAT YOU MAKE. IS IT
USEFUL AS IT'S STILL LEGITIMATE
THAT WHEN YOU HIT THAT YOU'RE
CURRENTLY USING. WELL YOU KNOW
THIS IS AN EXAMPLE WHERE I THINK
THE- THE PRE REGULATORY WORKSHOP
PROCESS CAN BE REALLY USEFUL
RIGHT BECAUSE YOU CAN SET UP A
CONVERSATION THAT HIGHLIGHTS YOU
KNOW SPECIFIC RECOMMENDATIONS
SPECIFIC ISSUES IN THE REPORT.
AND SET UP PANELS OR OR OR OTHER
MEANS TEN TO DIVE INTO. THE
PROPOSALS AND HEAR THE PROS AND
CONS FROM VARIOUS STAKEHOLDERS-
ABOUT HOW- WE SHOULD ADDRESS
THOSE RECOMMENDATIONS. DR
BERTRAM. THE GENERAL THANK
YOU'RE GENERALLY I THINK THE
FIRST THING THAT WILL BE LOOKING
FOR IS THE- THE AND A
CONSTIPATED INCLUSION ON THE
SCOPING PLAN PROCESS OF SOME OF
THE QUESTIONS THAT WE HELP WITH
WITH RESPECT TO THE ROLE OF THE
CARBON MARKET COMPLEX- I THINK
THAT- SURE RANDALL SENSOR
PREVIOUSLY WAS SPOT ON THAT-
IT'S THE WORKSHOP PROCESS THAT
CAN REALLY HELP FROM THESE IDEAS
COME TO LOOK FOR SOME OF THESE
IDEAS HAVE TO BE WORKSHOP. ARE
THEY THEY ARE NECESSARILY OUT OF
THE BOX THE RIGHT WAY TO GO-
BUT- THE I THINK THAT THERE'S A
LOT OF CONTRIBUTION TO BEAR ARMS
I THINK THAT- ONE SUGGESTION
THAT WE HAD THAT WE- THE ON
GOING- IDEA OF REGULAR
MONITORING OF THE PROGRAMME IN
APPROVAL OF THE PROGRAM OVER
TIME IS REAL TIGHT BUT BETTER
REAL TIME METRICS ALL THE- SIZE
OF THE LAWN SPANKING ALONE
HOLDINGS TRANSACTIONS THE
PRODUCTS CAN BE ACCOMMODATED
UNDER PRIVACY CONSIDERATIONS FOR
THE COMPLIANCE ENTITIES. MARKET
PARTICIPANTS SO THAT MIGHT FALL
IN THE REALM OF A REGULATORY
RULEMAKING SO MAYBE IT'S NOT
PART OF THE SCOPING PLAN PROCESS
BUT IT CAN BE PART OF THE OF THE
WORKSHOP AND SPECIFICALLY I'M IT
IS PART OF THE SCREEN PLAN
PROCESS I THINK WHAT WE WANT TO
SEE OR SOME ALTERNATIVE.
SCENARIOS THAT. THE A GRAY OR-
ROLE. OTHER CAR MARKET LET'S TRY
A I MEAN I AM A MODELER AND I
HAVE. I'M IMPRESSED DEEPLY
IMPRESSED BY THE AMBITION OF THE
SCOPING BOMB PROCESS FROM THE
FIRST WHISTLE THAT'S TAKEN AS
PART OF THAT- SO I DON'T WANT TO
OVER ELSE CAN TERMS OF THE
DETAIL WHEN FUNDAMENTALLY FLAWED
CERTAIN. DECADE IN ANY CASE BUT
I DO THINK THAT THE PROCESS
SHOULD LOOK AT SCENARIOS WHICH
HAVE A GREATER OR LESSER ROLE
FOR THE CORPORATE MARKET AND
THAT COULD BE RERESENTED
THROUGH A GREATER OR LESSER.
CARBON PRICE OR- OR- AND I WOULD
SPECIFICALLY LIKE TO SEE IF THE
MARKET DYNAMICS COULD BE
REPRESENTED THROUGH ALTERNATIVE
SUPPLY ADJUSTMENT APPROACHES
FULL SUCH AS CHANGING THE PRICE
FOR OR PRECIOUS MUSCLE ALONE.
LIVE BY ADDING ON AN ADDITIONAL
PRICE STUFF THINGS LIKE THAT
THAT COULD INFORM OF THE OF THE
REGULATORY DEVELOPMENT AND
TWENTY TWENTY THREE. I READ YOUR
QUOTE IN THE AP ARTICLE LAST
WEEK ABOUT- THE SIZE OF THE A
LOT OF THE OF THE BANK OF THE
ALLOWANCE IN YOUR ID CODE SAYING
IT'S POSSIBLE THAT ALL THE
COVERED SOURCES. DON'T REDUCE
EMISSIONS AT ALL IN THE COURSE
OF THE DECADE COULD YOU EXPAND
ON THAT IS IT HE SAID. I MEAN
THAT'S A REAL CONCERN THAT THERE
ARE SO MANY ALLOWANCES AFTER.
THAT ALL THE POLLUTERS JUST SIT
HERE FOR THE NEXT EIGHT. EIGHT
YEARS AND JUST SEND THEM THE
ALLOWANCES AND DO NOTHING. HELLO
GOD ONLY KNOWS WHAT HAPPENS WE
GET TO IT. TWENTY THIRTY BUT-
EXPAND ON THAT. WELL THAT'S
EXACTLY I WAS GOING UP FROM THE
TRUSTEE THE THEY'RE IN THE BANK
FULL FLEDGED. BUT IT DOES. ADD
UP TO THE- A- I JUST REQUIRE
ISN'T QUITE THE RIGHT WORD BUT
THE- EXPECTED EMISSION
REDUCTIONS FROM COVERED SOURCES
SOURCES ARE COVERED BY THE
CORPORATE MARKET WHICH ARE 75%
OF SOURCES IN THE STATE THAT
THEY COULD AT LEAST APPLY AT
LEAST WITH RESPECT TO THE- THE-
OTHER OBLIGATIONS UNDER THE
COVER MARKET THEY DON'T HAVE.
THAT MEANT THEY COULD GET AWAY
WITH DOING NOTHING I'M NOT
SUGGESTING THAT WILL HAPPEN
THERE'S A VERY IMPORTANT
DECISION POINT AND YOU'VE JUST
MENTIONED IT WITH BY MEASURING
TWENTY THIRTY I THINK ONE OF THE
KEY QUESTIONS THAT I WOULD PUT
ON THE LEGISLATIVE AGENDA. AS
THE AS EARLY AS POSSIBLE IS WHAT
HAPPENS POST TWENTY THIRTY AND
YOU ASKED A COUPLE QUESTIONS WE
GO WELL WHAT KINDS OF REFORMS
MIGHT. HAPPEN THE REALLY HELP
PROVIDE GREATER ASSURED US THAT
THE STATE WILL ACHIEVE ITS GOALS
AND SENATOR STERN ALSO RAISES
QUESTIONS I THINK THERE THAT WAS
THE NEXT BIG QUESTION BEFORE THE
LEGISLATURE MR MAP. OUT A CARBON
. OUCH SHE TRUE NET ZERO YEAH
AND IN ORDER TO DO THAT DOWN
WOULD BE A WITH BANKING ALLOWED
OR WHATEVER ONE COULD SEE THESE
OTHER CUMULATIVE. ABOUT NUMBER
OF TONS THAT ARE GOING TO BE.
THE REMAINDER COME FROM A SOURCE
IN CALIFORNIA OVER A TWENTY YEAR
HORIZON OR WHATEVER YOU SHOULD
NOT ZERO BEING. ACHIEVED AND
THAT WILL INVOLVE GOING THROUGH
THE GATEWAY OF WHAT HAPPENS IN
TWENTY THIRTY SO IT COULD BE
THAT WE NEED A BANK THAT'S
COMPILED SOURCES NEED A BANK. OF
THREE HUNDRED MILLION TONS OF
TWENTY THIRTY IN ORDER TO
ACHIEVE THAT THAT'S YOUR GOAL IN
WHICH CASE THEY'LL BE AMPLE
EMISSION REDUCTIONS THE
STOCKADE. SO THAT THEY CAN
PRESERVE THAT BANK AND USE THEM
LATER ON IN THE PROCESS WHEN IT
BECOMES REALLY. INCREASINGLY
AMBITIOUS AND THE AND DIFFICULT
TO ACHIEVE EMISSION REDUCTIONS
THAT'S WHAT. A PLANNER CAN'T
REALLY KNOW THAT UNTIL THERE'S A
FULL VERSION OF TERMSWHAT'S
GOING TO HAPPEN OVER THE WHOLE
COURSE OF THE CLUB POLICY
PORTFOLIO FOR THE STATE. SO
THAT'S WHAT. I WOULD SORT OF
BACK UP SHE WAS A BIG CHALLENGE.
THAT IS PICTURE- I ONE MIGHT
SUSPECT I COULD GO ON FOR A LONG
TIME ON THIS SUBJECT BUT I HAVE
GOTTEN THE RED FLAG BECAUSE I
NEED TO OPEN UP THE PUBLIC
COMMENT SO I WANT TO THANK EACH
AND EVERYONE OF YOU FOR
EDUCATING THE PUBLIC AND
EDUCATING MEMBERS OF THE-
COMMITTEE- ON- ON YOUR VIEWS ON
THE CAP AND TRADE PROGRAM ON THE
SCOPING PLAN. AND THE AND THE
ROLE- THAT IT'S GOING TO TAKE
FOR MANY TAKE COULD TAKE IN
CALIFORNIA AND MEETING OUR
GREENHOUSE GAS- PRODUCTION OUR
GOALS SO THANK YOU VERY MUCH FOR
YOUR TIME. OBVIOUSLY I'M NOT
AFRAID TO WRITE LETTERS SO WE
MAY HAVE QUESTIONS THAT WILL PUT
OUT AS WE GO THROUGH THE BUDGET
PROCESS. I WANT TO CONGRATULATE
A DOCTOR'S COLLINSWORTH AND
BURKE TRIAL FOR THE- WONDERFUL
REPORTED YOU GUYS THE VISOR
COMMITTEE PUT OUT THIS IS THAT.
THIS IS THE TYPE OF WORK THAT-
DOESN'T GET A LOT OF RECOGNITION
SO I WANT TO PUBLICLY THANK YOU
GUYS FOR THE EFFORT YOU PUT IN
AND THE CONSENSUS. THAT IT'S NOT
LOST ON THE LEGISLATURE THAT
THIS IS A CONSENSUS REPORT THAT
YOU GUYS ACHIEVE WITH THE ALL
THE MEMBERS OF YOUR ADVISORY
GROUP SO. THANK YOU VERY MUCH
AND WITH THAT WE WILL OPEN UP
THE PUBLIC HEARING THANK YOU FOR
YOUR- TIME- OKAY D. ANYONE
WAITING TO PROVIDE PUBLIC
COMMENT HERE IN ROOMFORTY TWO
OH THREE PLEASE COME FORWARD I
SEE THEY'VE WAITED. IN ORDER OUT
OF TIME THANK YOU PLEASE GO
AHEAD I THANK YOU THAT YOUR
ACCOUNT KEY MEMBERS OF THE
COMMITTEE- THIS IS I'M JOHN BLUE
I'M REPRESENTING- THE
INTERNATIONAL MISSIONS TRADING
ASSOCIATION OR I EVEN TODAY.
FIRST OFF I AM HEARTENED THAT
WE'RE ALL HERE- IN SUPPORT OF
THE PROGRAM AND WORKING TO
FIGURE OUT HOW TO. MOST MAKE A
MOST EFFECTIVE USE OF IT AND TO.
ENSURE THAT IT CONTINUES TO
OPERATE AND CALIFORNIA- FOR
SORRY I DO WANT TO HIGHLIGHT THE
FACT THAT. CAP AND TRADE IS THE
MOST COST EFFECTIVE GREENHOUSE
GAS REDUCTION. MECHANISM
AVAILABLE SO WHEN WE'RE TALKING
ABOUT COST EFFECTIVENESS WE
DEFINITELY SHOULD BE REMEMBERING
THAT. CAN ADDITIONALLY. AS A US
. ADELE'S PERCHERON JUST
MENTIONED THAT ONE OF THE WAYS
TO ADDRESS THE CONCERN ABOUT
BANKING WOULD BE TO ENSURE THAT
THE PROGRAM IS EXTENDED BEYOND
TWENTY THIRTY WE HAVE CLARITY
AND WE KNOW WHAT THAT- REGULATED
ENTITIES WILL KNOW THAT ALL HAVE
GOT FURTHER COMPLAINTS.
COMPLIANCE OBLIGATIONS AND THAT
THAT. THAT WOULD SORT OF
ELIMINATE THAT POSSIBILITY THAT
BANKERS BANK ALLOWS TO BEING
DUMPED ON THE MARKET. SO THANK
YOU- AND- THAT'S ALL FOR NOW
RIGHT- GOOD- PUT NOW IT'S MOVED
TO ANYONE WANTING TO PROVIDE
PUBLIC COMMENT- DURING THE-
TELECONFERENCE- PHONE MESSAGES
AS A REMINDER TODAY'S
PARTICIPATED. A NUMBER IS EIGHT
FOUR FOUR TWO NINE ONE. SIX
THREE SIX FOUR AND THE ACCESS
CODE IS. THIRTY FIVE THIRTY ONE
TWO EIGHT THREE- DUE TO
CONSTRAINTS REGARDING THE LENGTH
OF THE HEARING TECH TECHNOLOGY
CONSIDERATIONS INCLUDING
PROTOCOLS I MAY HAVE TO
INSTITUTE TIME LIMITS BUT LET'S
BEGIN THE HEARING THEM AND
WILLING TO TAKE THOSE AT THE
TIME A MODERATE IF YOU WOULD
PLEASE PROF INDIVIDUALS WAITING
TO PROVIDE PUBLIC COMMENT- AM.
PM THANKS RICHER IF YOU WOULD
LIKE TO- EXPRESS PUBLIC COMMENT
PLEASE PRESS ONE FOLLOWED BY
ZERO. NINE A. T. T. OPERATOR
WILL- GIVE YOUR LINE NUMBER
QUICKLY OFF LINE IN PLACE RIGHT
BACK IN THE QUEUE. AGAIN FOR A
PUBLIC COMMENT PLEASE PRESS ONE
ZERO AT THIS TIME WE'LL BEGIN
WITH THE OUTLINE TWELVE PLEASE
GO AHEAD. HI THIS IS MICHELLE
FROM OUR LAST I'M HERE ON BEHALF
OF THE CALIFORNIA COUNCIL TURN
BY MARINA. BALANCE OR COALITION
OF BUSINESS LABOR AND PUBLIC
LEADERS HAVE BEEN WORKING.
TOGETHER TO ADVANCE STRATEGIES
ON A DOWN ECONOMY AND A HEALTHY
ENVIRONMENT SINCE NINETEEN
SEVENTY THREE. I THINK WE HAVE A
PRINCIPAL CONCERN HERE THAT
WE'RE CONTINUING TO RE LITIGATE
EIGHTY THREE NINETY EIGHT CAP
AND TRADE PROGRAM ON ANGLE
BASIS. AGAIN PRESENTING IDEAS
THAT HAVE BEEN FORMALLY REJECTED
BY THE LEGISLATURE. IN FAVOR OF
POLICIES THAT INCREASE THE COST
OF. COMPLIANCE AND THEREFORE-INCREASE THE COST THE CALIFORNIA
SYSTEM THAT TIME WERE
EXPERIENCING. PORTABILITY ISSUES
ACROSS. THE. ENTIRE ECONOMY-
THIRTY TWO AT THE THIRTY TWO.
AND EIGHTY THREE EIGHT ALL
HIGHLIGHT THE NEED TO MINIMIZE
COSTS MAXIMIZING BENEFITS
CALIFORNIA'S ECONOMY AND THE
ENVIRONMENT. YOU KNOW CHEATING
CAUGHT THE TECHNICIAN REDUCTION
AND AGAIN WE NEED TO MAKE SURE
THAT WE'RE BALANCING OUR
ENVIRONMENTAL AMBITION WHAT THE
IMPACTS TO SOCIETY. BUT AS
MENTIONED BY JOHN WOO THE SIMPLE
SOLUTION TO THE BANK IS TO
EXTEND THE PROGRAM YOUNG TWENTY
THIRTEEN WE THINK IN THE CONTEXT
OF THE LEGISLATIVE DISCUSSION.
IN AND AROUND CARBON NEUTRALITY
THAT'S A GOOD PLACE TO HAVE
THESE DIALOGUES ADDITIONALLY THE
SCOPING PLAN IS DOING- BUT
MODELING EXERCISE THAT WILL
HELP- EDUCATE EVERYONE ON KIND
OF THE INFLUENCE AND
INTERACTIONS OF THESE PROGRAMS-
ARE YOU MACKEY IS INHERENTLY
PASSED WITH ANALYZING THE MARKET
BUT ALSO ALL RELEVANT CLIMATE
POLICIES WE HAVE TO READ VISIBLE
CARBON PRICES IN THE STATE OF
CALIFORNIA CAP AND TRADE
OBVIOUSLY BEING THE LOWEST
AROUND TWENTY DOLLARS WE HAVE A
CARBON PRICE NOBLE PORTFOLIO
STANDARD AND A VERY HIGH CARBON
PRIDE IN THE LOW CARBON FUEL
STANDARD. THE AGGREGATE COST
CARBON CONSENSUALLY HIGHER THAN
THE THAN THE CURRENT CLEARANCE
FRAMES OF THE CAP AND TRADE WE
DIDN'T UNDERSTAND EACH AND EVERY
POLICY PASSED BY THIS
LEGISLATURE WITH REGARD TO
CLIMATE CHANGE ALLOWANCE VALUE
AWAY FROM THE CAP AND TRADE INTO
A WALL HE WOULD SUPPORT CAP AND
TRADE BEING THE FOREFRONT AND
DRIVER OF MOST THE MEASURE
OPTIONS IN THE STATE NEW TO THE
LAYERS OF POLICY THAT WE HAVE
ADOPTED OVER THE YEARS WE'VE
FOUND THAT WE HAVE SUPPRESSED
THE PRICE WITHIN THIS PROGRAM
BECAUSE WE HAVE REMOVED THAT
VALUE TO OTHER PROGRAMS. THAT
ARE DIRECTLY REGULATING THOSE
SOURCES. ADDITIONALLY THE CALLS
FOR. YOU ADOPTING. FROM WASH. WE
THINK- BUT PREMATURE. HELLO THE
MISSIONS OF CONTINUE GOT GO UP-
OVER THE YEARS THEY THEIR TWENTY
TWENTY WHAT WE ACHIEVED OUR
THREE YEARS EARLY MAR ABLE TO
RATCHET DOWN TOWARDS OUR TWENTY
THIRTY GOAL IN THOSE TIMES WE
THINK THAT WE NEED TO SEE WHAT
HAPPENS IN THAT STATE HOW THEIR
POLICY IS IMPLEMENTED HOW
IMPACTED BUSINESSES WHICH ARE
ALSO THE STANLEY DIFFERENT THAN
CALIFORNIA THEY DON'T HAVE AS A
PERSON IN THE COMPANY. NOR DO
THEY HAVE THE BITE OR OR SCALE
THAT WE DO ENOUGH FOR ORDER TO
ACHIEVE THEIR GOAL SO I'LL LEAVE
IT AT THAT. AND- APPRECIATE TIME
THANK YOU. X. WE WILL LIVE FORTY
EIGHT YOU ARE OPEN. GOOD MORNING
MY NAME IS DR CATHERINE GROUP
ALL RIGHT I AM THE EXECUTIVE
DIRECTOR OF THE CENTRAL VALLEY
AIR QUALITY COALITION OR C. BACK
AND I ALSO SERVE ON THE AIR
RESOURCES BOARD ENVIRONMENTAL
JUSTICE ADVISORY COMMITTEE I
WANT TO THANK THE I. E. R. YEAH
I EVEN HAD FOR THEIR REPORT- AND
POINT OUT AS MANY. OTHERS HAVE
ALREADY SPOKEN TO THAT COST
EFFECTIVENESS DOES NOT
NECESSARILY EQUATE WITH EQUITY
OR JUSTICE. I ALSO CAN NOT AGREE
WITH CHARACTERIZATION OF THE
SCOPING PLAN PROCESS AS FAR AS
COMMUNITY ENGAGED WE IN FACT
HELD OUR FIRST WORKSHOP IN THE
SAN JOAQUIN VALLEY LAST NIGHT
AND HAD MULTIPLE PARTICIPANTS
WHO SHARED WITH US BUT THEY WANT
TO HEAR FROM US EARLY AND OFTEN
IN THE PROCESS. AND
UNFORTUNATELY DO THAT DUE TO THE
PANDEMIC AND OTHER CONSTRAINTS
WE ARE HALFWAY THROUGH THE
PROCESS AND JUST HELD OUR FIRST
WORKSHOP. GIVEN THE IMPORTANCE
OF CARDS TWENTY TWENTY TWO
COPING PLAN TO ENVIRONMENTAL
JUSTICE COMMUNITIES IN THE SAN
JOAQUIN VALLEY AND GIVEN THE
INTERACTIONS BETWEEN THE CARBON
MARKET AND MANY COMPANION
POLICIES. IT'S ESSENTIAL THAT
CARD FURTHER ILLUMINATE
EXPECTATION FOR THE MARKET AND
QUOTE UNQUOTE HELPS THAT COURSE
FOR THE CONTINUING
DECARBONIZATION OF CALIFORNIA AS. THE REPORT STATES. CARD CANNOT
RELY ON MY A LOW TO. IMAGINE
FEUD IT ALSO. A STAFF IMPACT A
PROGRAM. ON PEOPLE HELLO.
PARTICULARLY BLACK AND
INDIGENOUS PEOPLES AND PEOPLE OF
COLOR I WOULDN'T SUGGEST ALL OF
THE THINGS THAT HAVE ALREADY
BEEN. DISCUSSED TODAY ABOUT TOO
MANY ALLOWANCES. SOME CHALLENGES
WITH THE FORCE OFFSET PROTOCOL
AND OVERALL WHILE I APPRECIATE
RECOMMENDATIONS FOR POTENTIAL
REFORMS- THERE WAS A RECENT
REPORT FROM DOCTOR MANUEL
PASSWORD OTHERS SHOWING THAT
EMISSIONS CONTINUED TO INCREASE.
IN ENVIRONMENTAL JUSTICE
COMMUNITIES. MARKET BASED
MECHANISMS ARE FATALLY FLAWED
AND HAVE TO BE ENDED. OFFSET AND
CAP AND TRADE HAVE FURTHER
CONCENTRATED POLLUTION IN
COMMUNITIES OF COLOR AND LOW
INCOME COMMUNITIES. AND WITHOUT
PROPER CALIBRATION STRICT
CONTROL AND DILIGENT STRINGENT
OVERSIGHT THE SYSTEM IS GAINED
BY INDUSTRY AND NOW AS THE EMAIL
RECORDS INDICATE. POTENTIALLY
ALSO OUTSIDE SPECULATORS.
BECAUSE CARBS CURRENT APPROACH
IS MARKET DRIVEN THE COPING
COPING PLAN PRESUPPOSES THAT
SOCIAL AND HEALTH COSTS. ARE
GOING TO BE EXTERNALIZED INTO
OUR ENVIRONMENTAL JUSTICE
COMMUNITY. OFFERING LIKE CAP AND
TRADE MUST BE REPLACED BY
RECOGNITION REDUCTION WITH
PRIORITIZATION FOR
DISPROPORTIONATELY IMPACTED
ENVIRONMENTAL JUSTICE
NEIGHBORHOOD. A MEMBER OF THE
JACK I REMAIN COMMITTED TO EACH
COMMUNITY ENGAGEMENT AND I LOOK
FORWARD TO DIALOGUE. WITH
MEMBERS THANK YOU. YOUR NECK-
ALLIANCE FOUR OPEN. I IS TONY
BURNELL- RIVER THE CALIFORNIA
FOREST CARBON COALITION I
APPRECIATED- TRYING TO THINK TOO
MUCH TIME ONE THING WE'VE HEARD
TODAY IS OBVIOUSLY THE FORESTS
ARE REALLY IMPORTANT FOR
FIGURING OUT HOW TO REDUCE
GREENHOUSE GAS EMISSIONS WE NEED
TO FIND WAYS TO MITIGATE VIRUS
AND REALLY LOOK OVER TIME IT AND
HOW TO SOLVE THAT PROBLEM- ONE
THING ALSO. THAT CLEAR IT IT CAN
BE DIFFICULT TO TRACK THE
GREENHOUSE GAS EMISSION
REDUCTIONS OR EMISSIONS. FROM
FOREST. BUT ONE AREA THAT IS
DONE IT REALLY WELL AND THROUGH
THE FOREST CARBON PROTOCOL SO.
ONE SHOULD LEAVE HIGHLIGHT
THAT'S REALLY IT FINDS BASED
PROGRAM. SECOND WE REALLY WANT
TO TRY AND GET TRIBES AND
NONPROFITS AND COMPANIES TO
INCENT THEM. TO TRY AND HELP IN
THE STATE COVERAGE FOR
GREENHOUSE GAS EMISSION
REDUCTIONS OR WILDFIRE ISSUE.
AND THAT'S WHERE THE CAP AND
TRADE PROGRAM HAS BEEN VERY
HELPFUL IN DOING THAT. I'M VERY
MUCH APPRECIATE THE IMAX RECORD
IT'S BEEN NICE HI RECORD IT'S
IMPORTANT TO REMEMBER THAT THIS
IS A VOLUNTEER GROUP THAT HAS
FIVE MEMBERS I THINK THEY'VE
DONE A GREAT JOB. WHAT WE WOULD
RECOMMEND THAT YOU NEED TO HAVE
A LITTLE MORE BALANCE AND
SOMETHING THAT WOULD SHOW SOME
OF THE BENEFITS. OF PROGRAMS
LIKE THE FOREST OFFSET PROGRAM
I'M ALSO PEOPLE SHOULDN'T BE
SEEN AS CRIMINALS YOU KNOW WE
REPRESENT A LOT OF THE TRIBES
AND- NONPROFIT GROUPS THAT ARE
PARTICIPATING IN DEVELOPING
THESE FOREST OFFSET PROJECTS.
COME VISIT COME TALKING FOLKS.
REALLY FOLKS ARE NOT OUT THERE
YOU KNOW AT ONE POINT INTENDED
TO BE CERTAIN THE CRIMINAL
WITHOUT LOGGING. IN IN THIS
REPORT. AND SO REALLY OUTLINING
HOW IMPROVEMENTS COULD BE MADE.
WHAT ARE THE BENEFITS THAT
ACTUALLY COME FROM THESE
PROJECTS. WOULD BE EXCEPTIONALLY
HELPFUL SO THE LAST THING IS
JUST- VERY MUCH APPRECIATE THE
OPPORTUNITY IN THE SUMMER TO
POTENTIALLY WASTE SOME OF THE.
COSTS AND BENEFITS. A BRAND LIKE
THE FOUR ALL THAT PROBE. CALL
SHOW UP AND TO IN THAT. AND THEN
REALLY WOULD LIKE TO AND THINK
FIGURE OUT A WAY TO OPEN UP AND
CHANGE PROBABLY. THAT SO AGAIN
YOU'RE ENCHANTING GOOD PLAYERS
TO REDUCE. AND REDUCE TOP
QUALIFIER REST THANK YOU BUT
THAT THANK YOU NEXT. HELLO LINE
FIFTY TWO PLEASE GO AHEAD. FIFTY
TWO. LOOKS LIKE THEY TOOK
THEMSELVES OUT OF Q. R. LINE
FORTY FOUR YOU GO AHEAD PLEASE.
FORTY FOUR YOU ARE OPEN. TEN
YEARS. FORTY FOUR. WILL MOVE ON
TO FORTY SIX POINT FORTY SIX YOU
ARE OPEN PLEASE GO AHEAD.
MORNING MR CHAIR AND FOUNDER OF
BLACKBERRY WITH A LESS RIGID
TROLLING FOR THE STATION WE
REPRESENT- FROM THE LARGEST
OBLIGATED PARTIES. UNDER THE CAP
AND TRADE PROGRAM. THE TWENTY
SEVENTEEN AT EMAIL THE
LEGISLATURE SET CLEAR DIRECTION.
THERE RESOURCES BOARD WHEN THEY
PASS THREE NINETY EIGHT WITH. A
TWO THIRDS VOTE AND BIPARTISAN
SUPPORT. THE DIRECTION ONCE RIDE
MARKET CERTAINTY. AND I'M OF
COURSE. THE IN THE F. B. THIRTY
TWENTY REDUCTION BY. CONTAINMENT
PER CALIFORNIA BUSINESS AND WITH
THE KEY THINGS THAT ARE. WHEN
IMPORT CAN CALL FOR THE
LEGISLATURE AND ALL THE
STAKEHOLDERS INVOLVED IN THAT
PROCESS THE COST CONTAINMENT
DIRECTION. YOU A. R. B. WORKS
CLEARLY INCLUDED IN EIGHTY THREE
NINETY EIGHT AND- AND THAT
LEGISLATIVE PROCESS THE CAP AND
TRADE PROGRAM IS CURRENTLY
DESIGNED. IS ONE OF THE MOST
COST EFFECTIVE WAYS TO REDUCE
CARBON COURT. HI MICHAEL THE
CURRENT PROGRAM IS ONLY TWO
YEARS INTO IMPLEMENTATION IS
ALREADY DELIVERING RESULTS THE
LAST NUMBER OF AUCTIONS HAVE
FEDERAL PROGRAM BRIBERY GAUGE
MEANT WHEN THE OLD- NEARLY ALL
THE ALARM CLOCK. FOR ALLOWANCES
OFFERED. WE BELIEVE THE CAP
TRADE KERR. AT THE IMPORTANT
ROLE IN ACHIEVING STATE. CLIMATE
GOALS COST EFFECTIVELY THANK YOU
FOR YOUR TIME TODAY. THANK YOU
NEXT. NEXT WE'LL GO BACK TO ONE
FIFTY TWO AND IF THERE ARE ANY
ADDITIONAL PUBLIC COMMENTS
PLEASE PRESS ONE ZERO AT THIS
TIME FIFTY TWO YOU ARE OPEN.
THANK YOU THIS IS JACK **** I AM
LEGISLATION CALLED THE DIRECTOR
PRODUCER DETAIL COME BALLY. I'M
SURE I CAN HELP YOU AND MEMBERS
I THANK YOU FOR THIS REALLY
ENLIGHTENING HEARING. YEAH HERE
IS DESTABILIZING THE MARKETS IS
ONE REASON FOR NOT ACTING
FASTER. WELL CLIMATE CHANGE IS
CERTAIN TO DESTABILIZE THE
MARKET. AND WELL BEFORE TWENTY
THIRTY. IT'S CLEAR FROM WHAT
WE'VE HEARD TODAY THAT IT'S UP
TO THE LEGISLATURE TO ACT AND TO
INSTRUCT CARTON TO REPAIR IT.
CONDITIONAL PROGRAM. PLEASE ACT
ON WHAT YOU HEARD TODAY FROM THE
EXECUTIVE BRANCH. THEY ARE
UNLIKELY TO MOVE WITHOUT A
MANDATE FROM THE LEGISLATURE
THANK. THANK YOU NEXT. MISTER
CHAIR THERE ARE NO OTHER
PARTICIPANTS- QUEUED UP AT THIS
TIME. THANK YOU VERY MUCH FOR
THAT WILL. CONCLUDE TODAY'S
HEARING WE DO HAVE A HEARING
TOMORROW AT NINE O'CLOCK I WANT
TO THANK ALL THE INDIVIDUALS WHO
PARTICIPATE IN THE PUBLIC
TESTIMONY TODAY- IF YOU WERE NOT
ABLE TO TESTIFY PLEASE SUBMIT
YOUR SUGGESTIONS OR COMMENTS IN
WRITING TO THE BUDGET IN FISCAL
REVIEW SUBCOMMITTEE TO OR VISIT
OUR WEBSITE YOUR COMMENTS AND
SUGGESTIONS. ARE IMPORTANT FOR
US AND THEN WE WENT TO- INCLUDED
IN OUR TESTS YOUR TESTIMONY IN
OUR OFFICIAL RECORDS THANK YOU
APPRECIATE THAT ONE OF ONCE
AGAIN THANK ALL THE PANELISTS
AND EVERYONE FOR THEIR PATIENCE
AND COOPERATION WE HAVE
CONCLUDED GENDER- INTO FOR
TODAY'S HEARING THE BUDGET. THE
SENATE BUDGET IN FISCAL REVIEW
SUBCOMMITTEE TO VISITORS.