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4.4 – Energy Draft Environmental Impact Report February 2021 14800 W. Schulte Road Logistics Center 4.4-8 On a statewide basis, the executive order establishes a target reduction of GHG emissions from the transportation sector equaling 80% less than 1990 levels by 2050. Cap-and-Trade Program To achieve the goals of AB 32, the Climate Change Scoping Plan: A Framework for Change included an early action plan to develop a California cap-and-trade program that links with other Western Climate Initiative partner programs to create a regional market system. The cap-and-trade regulation, which is a key element of California’s climate plan, took effect in January 2012, and compliance obligation began in January 2013. The cap-and-trade program sets a statewide limit on sources responsible for 85% of California’s GHG emissions and establishes a price signal needed to drive long-term investment in cleaner fuels and more efficient use of energy. The program is designed to provide covered entities the flexibility to seek out and implement the lowest-cost options to reduce emissions. The first phase of the cap-and-trade regulation included electricity generated in and imported into California, large combustion sources (i.e., generally those emitting more than 25,000 metric tons [MT] of CO2e per year), and certain industrial sectors. The second phase added providers of transportation fuels and other combustion fuels (e.g., natural gas, propane) to the cap-and-trade program. The regulation requires that emissions generated by these facilities and combustion of fuels be reduced over time under a declining “cap.” Renewable Energy Sources SB 1078 established the California Renewables Portfolio Standard (RPS) program and required that a retail seller of electricity purchase a specified minimum percentage of electricity generated by eligible renewable energy resources as defined in any given year, culminating in a 20% standard by December 31, 2017. These retail sellers include electrical corporations, community choice aggregators, and electric service providers. SB 1078 relatedly required the CEC to certify eligible renewable energy resources, design and implement an accounting system to verify compliance with the RPS by retail sellers, and allocate and award supplemental energy payments to cover above-market costs of renewable energy. SB 107 (2006) accelerated the RPS established by SB 1078 by requiring that 20% of electricity retail sales be served by renewable energy resources by 2010 (not 2017). Additionally, SB X1-2 (2011) required all California utilities to generate 33% of their electricity from eligible renewable energy resources by 2020. Specifically, SB X1 - 2 set a three-stage compliance period: by December 31, 2013, 20% had to come from renewables; by December 31, 2016, 25% had to come from renewables; and by December 31, 2020, 33% had to come from renewables. SB 350 (2015) expanded the RPS because it requires retail seller and publicly owned utilities to procure 50% of their electricity from eligible renewable energy re sources by 2030, with interim goals of 40% by 2024 and 45% by 2027. SB 100 (2018) accelerated and expanded the standards set forth in SB 350 by establishing that 44% of the total electricity sold to retail customers in California per year by December 31, 2024; 52% by December 31, 2027; and 60% by December 31, 2030, be secured from qualifying renewable energy sources. SB 100 also states that it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of the retail sales of electricity to California. SB 100 requires that the achievement of 100% zero-carbon electricity resources does not increase the carbon emissions elsewhere in the western grid , and that the achievement not be achieved through resource shuffling.