BILL ANALYSIS
AB 32
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 32 (Nunez)
As Amended August 30, 2006
Majority vote
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|ASSEMBLY: |50-27|(April 11, |SENATE: |23-14|(August 30, |
| | |2005) | | |2006) |
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Original Committee Reference: NAT. RES.
SUMMARY : Enacts the Global Warming Act of 2006 (Act), which
creates a statewide greenhouse gas (GHG) emission limit that
would reduce emissions by 25% by 2020.
The Senate amendments delete the Assembly version of this bill,
and instead enact the Act, which does all of the following:
1)Requires, on or before January 1, 2008, the state Air
Resources Board (ARB) to adopt regulations requiring GHG
emission sources to monitor and report their emissions to the
ARB, and specifies detailed criteria for the adoption and
compliance with those regulations.
2)Requires, on or before January 1, 2008, ARB to adopt a
statewide emissions limit on GHG emissions, specifies both a
process and criteria for the adoption of the limit, and
provides that the limit shall remain in effect after 2020
until otherwise amended or repealed.
3)Requires ARB to adopt the maximum feasible and cost-effective
reductions in GHG emissions for sources and categories of
sources subject to the Act, in accordance with the following
schedule:
a) On or before July 1, 2007, ARB shall adopt a list of
those discrete early action emission reduction measures
that can be achieved prior to the adoption of market-based
compliance mechanisms and other measures and limits under
the bill's provisions;
b) On or before January 1, 2010, ARB shall adopt and
enforce those measures on the list described above in order
to achieve the maximum technologically feasible and
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cost-effective reductions of greenhouse gases;
c) On or before January 1, 2009, ARB shall prepare and
adopt a rulemaking scoping plan for the rules and
regulations it is required to adopt pursuant to the bill's
provisions, and shall comply with specified criteria in
developing and adopting the plan. ARB is required to
update the plan every five years;
d) States that, on or before January 1, 2011, ARB shall
adopt GHG emission limits and measures to achieve the
maximum feasible and cost-effective reductions in GHG
emissions in furtherance of the GHG emission limit;
e) In adopting the regulations described in d) above, ARB
may adopt a so-called "cap and trade" system (i.e. "a
system of market-based declining annual aggregate emission
limits" as described in the bill), provided it complies
with specified conditions prior to authorizing the use of
those mechanisms;
f) In adopting the regulations described in d) above, ARB
may adopt market-based compliance mechanisms and specifies
conditions and criteria for the adoption and use of those
mechanisms;
g) In adopting regulations, requires ARB to take into
account environmental justice, equitable distribution of
emission reductions, best available scientific and economic
information, and other factors; and,
h) Provides that ARB shall consult with various other state
agencies that have jurisdiction over utilities and other
sources of GHG emissions in order to minimize any overlap
among those agencies.
4)Authorizes ARB to impose administrative, civil, and/or
criminal penalties consistent with its authority under air
quality statutes for violations of any rule, regulation,
order, or standard adopted by the board pursuant to the bill's
provisions.
5)Authorizes the Governor to adjust applicable deadlines for
individual regulations, or for the state in aggregate, to the
earliest feasible date in the event of extraordinary
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circumstances, catastrophic events, or significant economic
harm, limits that adjustment to one year in duration,
specifies procedures for notifying the public and provides
that this provision does not affect the Governor's authority
under the Emergency Services Act.
6)Requires ARB to establish an environmental justice advisory
committee and an economic and technology advisory committee
for the purposes of advising the board on implementation of
the bill's provisions, and specifies appointment processes and
procedures for those committees.
7)Provides that if the regulations adopted pursuant to AB 1493
(Pavley), Chapter 200, Statutes of 2002, to reduce GHG
emissions from vehicular sources do not remain in effect, the
board shall adopt alternative regulations that achieve the
equivalent or greater reductions.
8)Requires all state agencies to consider and implement GHG
emission reduction strategies, and provides that nothing in
the bill affects the authority of any other state agency to
reduce GHG emissions, the authority of air districts, the
authority of the California Public Utilities Commission, or
utilities' obligation to provide electric service.
9)Authorizes ARB to adopt a schedule of fees to pay for the
costs of implementing the program established pursuant to the
bill's provisions.
10)Provides that the provisions of the bill are severable.
11)Makes detailed findings and declarations relative to the
economic and environmental effects of global warming and
climate change.
12)Establishes definitions of terms used under the bill.
EXISTING LAW :
1)Establishes the California Climate Action Registry (Registry)
as a nonprofit public benefit corporation to voluntarily
record and register GHG emissions reductions made by
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California entities after 1990.
2)Requires the Registry to provide referrals to approved
providers for advice on designing programs to establish
emissions baselines and to monitor and track GHG emissions,
establishing emissions reduction goals, and 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.
3)Requires the Registry to perform various functions, including
among other things, adopting standards for verifying emissions
reductions, adopting a list of approved auditors that verify
emission reductions, establishing emissions reduction targets,
designing and implementing efficiency improvement plans,
maintaining a record of all emission baselines and reductions,
and recognizing, publicizing, and promoting entities that
participate in the Registry.
4)Requires the Registry to adopt procedures and protocols for
the various offsets that a participant can use to mitigate
emissions.
5)Requires the Registry to adopt procedures and protocols for
the monitoring, estimating, calculating, reporting, and
certifying of carbon stores and carbon dioxide emissions
resulting from the conservation and conservation-based
management of native forest reservoirs in California, so that
participants can include those conservation activities in
registered emissions results.
AS PASSED BY THE ASSEMBLY , this bill expanded the
responsibilities of the Registry by specifying the Registry work
in coordination with the California Environmental Protection
Agency and the State Energy Resources Conservation and
Development Commission to adopt procedures and protocols on
greenhouse gas emissions for oil and natural gas exploration,
extraction, processing, refining, transmission, and distribution
and cement production and municipal solid waste and industrial
waste hauling and disposal.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, global climate change poses
a serious threat to California's economic well being, public
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health, and environment if aggressive actions to reduce GHG
emissions are not taken soon.
This bill would create a statewide GHG emissions limit that
would reduce emission 25% by 2020. It establishes a mandatory
reporting system to track and monitor greenhouse gas emission
levels and institutes a limit on GHG emissions, requiring
emission reductions in California to 1990 levels by the year
2020.
The bill also directs ARB to develop a regulatory framework of
emission reduction measures, which may include multi-sector
market-based compliance options. The bill also provides a clear
path by authorizing ARB to design the rules under which a
cap-and-trade program could emerge to help meet the 2020 limit
by 2011.
The bill also allows the Governor to suspend the provisions of
the bill for up to one year under extraordinary circumstances or
threat of significant economic harm and continues the Governor's
Climate Action Team created by the Governor's Executive Order in
2005.
The bill reflects an historic agreement between the Legislature
and the Governor on GHG reduction.
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916)
319-2092
FN: 0017732