BILL NUMBER: AB 32 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Pavley (Coauthors: Assembly Members Chan and Laird) (Coauthor: Senator Simitian) DECEMBER 6, 2004 An act to amend Sections 42801 and 42823 of the Health and Safety Code, relating to air pollution. LEGISLATIVE COUNSEL'S DIGEST AB 32, as introduced, Pavley. Greenhouse Gas Emissions: California Climate Action Registry. Existing law requires the Secretary of the Resources Agency to establish the California Climate Action Registry (hereafter registry) as a public benefit nonprofit corporation, and makes legislative findings and declarations relating to the registry. Existing law requires the registry to perform various functions, including, among other things, the adoption of procedures and protocols for the reporting and certification of greenhouse gas emission reductions resulting from a project or an action of a participant in the registry. This bill would revise the functions and duties of the registry by requiring the registry, in coordination with the California Environmental Protection Agency and the State Energy Resources Conservation and Development Commission, to adopt specified procedures and protocols both for monitoring, estimating, calculating, reporting, and certifying greenhouse gas emission reduction projects, and for monitoring, estimating, calculating, reporting, and certifying greenhouse gas emissions resulting from specified industrial sectors, as provided. This bill would require the registry to coordinate with state agencies to promote the development of harmonized reporting standards, as specified, and would require the registry, to the extent possible, to coordinate with other states and regions to ensure that businesses and organizations operating both in this state and out of state follow uniform protocols when reporting to multiple registries, states, or regions. This bill would also make additional legislative findings and declarations. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42801 of the Health and Safety Code is amended to read: 42801. The Legislature finds and declares all of the following: (a) It is in the best interest of the State of California, the United States of America, and the earth as a whole, to encourage voluntary actions to achieve all economically beneficial reductions of greenhouse gas emissions from California sources. (b) Mandatory greenhouse gas emissions reductions may be imposed on California sources at some future point, and in view of this, the state has a responsibility to use its best efforts to ensure that organizations that voluntarily inventory their emissions receive appropriate consideration for changes in emissions quantities made prior to the implementation of any mandatory programs. (c) Past initiatives in the state that took early and responsible action to reduce air pollution and ozone smog have demonstrated political, economic, and technological leadership, and have proven to benefit the state. (d) The state's tradition of environmental leadership should be recognized through the establishment of a registry to provide documentation of greenhouse gas emissions levels voluntarily achieved by sources in the state. The registry will provide participants an opportunity to register greenhouse gas emissions information in a consistent format using publicly reviewed and adopted procedures and protocols. (e) The state hereby commits to use its best efforts to ensure that organizations that establish greenhouse gas emissions baselines and register emissions results that are certified in accordance with this chapter receive appropriate consideration under any future international, federal, or state regulatory scheme relating to greenhouse gas emissions. The state cannot guarantee that any regulatory regime relating to greenhouse gas emissions will recognize the baselines and annual results recorded in the registry. (f) The state hereby commits to review future international or federal programs related to greenhouse gas emissions and to make reasonable efforts to promote consistency between the state program and these programs and to reduce the reporting burden on participants, if changes to the state program are consistent with the goals and intent of Section 42810. (g) The state has supported developing standardized greenhouse gas emission accounting, reporting, and certifying guidelines through the creation of the California Climate Action Registry. Further industry-specific and project greenhouse gas emissions reporting protocols are needed to facilitate participation in the registry and to provide streamlined guidance for certain sectors. To the extent feasible, the state hereby commits to coordinate greenhouse gas emissions programs with other states and regions, until a national program is established to limit greenhouse gas emissions. SEC. 2. Section 42823 of the Health and Safety Code is amended to read: 42823. The registry shall perform all of the following functions: (a) Provide participants with referrals to approved providers for technical assistance and advice, upon the request of a participant, on any or all of the following: (1) Designing programs to establish greenhouse gas emissions baselines and to monitor, estimate, calculate, report, and certify greenhouse gas emissions. (2) Establishing emissions reduction goals based on international or federal best practices for specific industries and economic sectors. (3) Designing and implementing organization-specific plans that improve energy efficiency or utilize renewable energy, or both, and that are capable of achieving emission reduction targets. (4) Designing plans for the conservation and management of native forest reservoirs as a means to assist participants in attaining emission reduction goals and reporting annual emissions results. (b) In coordination with the State Energy Resources Conservation and Development Commission, the registry shall adopt and periodically update a list of organizations recognized by the state as qualified to provide the detailed technical assistance and advice in subdivision (a) and assist participants in identifying and selecting providers that have expertise applicable to each participant's circumstances. The registry shall coordinate with the Department of Forestry and Fire Protection and the State Board of Forestry and Fire Protection to provide referrals to providers for purposes of paragraph (4) of subdivision (a). (c) The registry shall adopt procedures and protocols for the reporting and certification of greenhouse gas emission reductions resulting from a project or an action of a participant. A participant shall report emission reductions as a separate item in its annual emissions results. (d) (1) In coordination with the California Environmental Protection Agency and the State Energy Resources Conservation and Development Commission, the registry shall perform both of the following functions: (A) Adopt procedures and protocols for monitoring, estimating, calculating, reporting, and certifying greenhouse gas emissions reduction projects, including, but not limited to, projects that improve energy efficiency, utilize renewable energy, and promote conservation tillage. (B) Adopt procedures and protocols for monitoring, estimating, calculating, reporting, and certifying greenhouse gas emissions resulting from all of the following industrial sectors: (iI) Oil and natural gas exploration, extraction, processing, refining, transmission, and distribution. (ii) Cement production. (iii) Municipal solid waste and industrial waste hauling and disposal. (2) The California Environmental Protection Agency and the State Energy Resources Conservation and Development Commission are strongly encouraged to partially fund the development of the registry's protocols for greenhouse gas emissions reduction projects under subparagraph (A), and to assist in finding resources for the development of the registry's industry specific protocols under subparagraph (B). (e) In coordination with the Resources Agency and consistent with the data and information acquired and developed pursuant to subdivision (b) of Section 25730 of the Public Resources Code, the registry shall adopt procedures and protocols for the monitoring, estimating, calculating, reporting, and certifying of carbon stocks and carbon dioxide emissions resulting from the conservation and conservation-based management, including reforestation, of native forest reservoirs in California in order to permit participants to include the results of those activities as a participant's registered emissions results, or as a part thereof. Procedures and protocols shall require, at a minimum, that those forestry activities meet the following criteria in order to be reported as a participant's emissions results, or as a part thereof: (1) Forestry activities that are reported as a participant's emissions results, or as a part thereof, shall be based on forest management practices within a defined project area that exceed applicable federal, state, and local land use laws and regulations, including, but not limited to, the Z'berg-Nejedly Forest Practice Act of 1973 (Chapter 8 (commencing with Section 4511) of Part 2 of Division 4 of the Public Resources Code). Applicable federal, state, and local land use laws and regulations shall be those in effect each time a participant registers a defined project area in the registry. (2) Forestry activities that are reported as a participant's emissions results, or a part thereof, shall occur on forestland that is permanently dedicated to forest use through a restriction, granted in perpetuity, on the use that may be made of real property that is consistent with the conservation purposes listed in Section 170(h)(4) (A)(ii) and (iii) of Title 26 of the United States Code. (3) Forestry activities reported as emissions results, or as a part thereof, shall reflect the amount of time that net carbon gains are stored. (4) Forestry activities maintain and promote native forest types. (5) If emissions results are derived from forest lands undergoing harvest and regeneration, those results are derived from natural forest management practices. (f) Adopt procedures and protocols for certification of reported baseline emissions and emissions results. When adopting procedures and protocols for the certification, the registry shall consider the availability and suitability of simplified techniques and tools.(f)(g) Qualify third-party organizations that have the capability to certify reported baseline emissions and emissions results, and that are capable of certifying the participant-reported results as provided in this chapter.(g)(h) Adopt procedures and protocols, including a uniform format for reporting emissions baselines and emissions results to facilitate their recognition in any future regulatory regime.(h)(i) Maintain a record of all certified greenhouse gas emissions baselines and emissions results. Separate records shall be kept for direct and indirect emissions results. The public shall have access to this record, except for any portion of the data or information that is exempt from disclosure pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(i)-Encourage(j) Coordinate with state agencies to promote the development of harmonized reporting standards for measuring, accounting, reporting, and certifying greenhouse gas emissions. The registry shall also encourage organizations from various sectors of the state's economy, and those from various geographic regions of the state, to report emissions, establish baselines and reduction targets, and implement efficiency improvement and renewable energy programs to achieve those targets , and, to the extent possible, coordinate its policies and programs with policies and programs in other states and regions to ensure that businesses and organizations operating both in this state and out of state follow uniform and consistent protocols when reporting to multiple registries, states, or regions .(j)(k) Recognize, publicize, and promote participants.(k)(l) In coordination with the State Energy Resources Conservation and Development Commission and the state board, adopt industry-specific reporting metrics at one or more public meetings.(l)(m) In consultation with the state board, adopt procedures and protocols for the reporting and certification of reductions in emissions of greenhouse gases, to the extent permitted by state and federal law, for those reductions achieved prior to the operative date of the regulations adopted pursuant to subdivision (a) of Section 43018.5.