BILL NUMBER: AB 6	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Houston

                        DECEMBER 4, 2006

   An act to amend Section 38570 of the Health and Safety Code,
relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 6, as introduced, Houston. Greenhouse gases: market-based
compliance mechanisms.
   Existing law imposes various limitations on emissions of air
contaminants for the control of air pollution from vehicular and
nonvehicular sources. Existing law designates the State Air Resources
Board as the state agency with the primary responsibility for the
control of vehicular air pollution, and air pollution control
districts and air quality management districts with the primary
responsibility for the control of air pollution from all sources
other than vehicular sources. Existing law also designates the state
board as the state agency charged with monitoring and regulating
sources of emissions of greenhouse gases that cause global warming in
order to reduce emissions of greenhouse gases. Existing law requires
the state board to adopt a statewide greenhouse gas emissions limit
equivalent to the statewide greenhouse gas emissions levels in 1990
to be achieved by 2020, as specified, and requires the state board to
adopt rules and regulations in an open public process to achieve the
maximum technologically feasible and cost-effective greenhouse gas
emission reductions, as specified. Existing law authorizes the state
board to adopt market-based compliance mechanisms, as defined,
meeting specified requirements.
   This bill would instead require the state board to adopt
market-based compliance mechanisms.
   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 38570 of the Health and Safety Code is amended
to read:
   38570.  (a) The state board  may   shall
 include in the regulations adopted pursuant to Section 38562
the use of market-based compliance mechanisms to comply
  ensure compliance  with the regulations.
   (b) Prior to the inclusion of any market-based compliance
mechanism in the regulations, to the extent feasible and in
furtherance of achieving the statewide greenhouse gas emissions
limit, the state board shall do all of the following:
   (1) Consider the potential for direct, indirect, and cumulative
emission impacts from these mechanisms, including localized impacts
in communities that are already adversely impacted by air pollution.
   (2) Design any market-based compliance mechanism to prevent any
increase in the emissions of toxic air contaminants or criteria air
pollutants.
   (3) Maximize additional environmental and economic benefits for
California, as appropriate.
   (c) The state board shall adopt regulations governing  how
  the manner in which  market-based compliance
mechanisms may be used by regulated entities subject to greenhouse
gas emission limits and mandatory emission reporting requirements to
achieve compliance with their greenhouse gas emissions limits.