BILL NUMBER: AB 376	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nava

                        FEBRUARY 23, 2009

   An act relating to greenhouse gas emission offsets.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 376, as introduced, Nava. Voluntary greenhouse gas emission
offsets.
   Existing law creates a statewide greenhouse gas emission limit
equivalent to what the statewide greenhouse gas emissions level was
in 1990, to be achieved by 2020. The State Air Resources Board is the
state agency charged with monitoring and regulating sources of
greenhouse gases in order to reduce emissions of greenhouse gases.
   This bill would state the intent of the Legislature to enact
legislation to provide protections for consumers of voluntary
greenhouse gas emission offsets, including both businesses and
individuals, and help ensure that their participation in the market
brings the expected environmental benefits.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) Global warming poses a serious challenge to public health, the
environment, and the economy.
   (2) With increasing concern regarding global warming, there has
been an increase in the advertising, sale, and transfer of greenhouse
gas emission reduction credits, offsets, and similar products
designed to allow individuals or entities, or both, to purchase
emission reduction credits in lieu of actually making those
reductions themselves.
   (3) The market for the trading of voluntary greenhouse gas
emissions offsets exceeds three hundred fifty million dollars
($350,000,000) and represents a reduction of over 70,000,000 metric
tons of carbon dioxide equivalents annually.
   (4) A significant amount of retail voluntary greenhouse gas
emissions offsets are purchased by California residents, businesses,
and government agencies.
   (5) Some voluntary offsets sold to retail customers are certified
as being real, measurable, and verifiable. However, there are
numerous public and private entities that create and certify offset
projects, and these entities may apply different standards to
projects with inconsistent results, generating confusion at the
customer level.
   (6) In addition, concerns have been raised about instances of
potential fraud or misrepresentation in the voluntary offset market,
which is difficult to address in the absence of clear standards for
retail offsets.
   (7) The purchase and sale of voluntary offsets at the retail level
represents an important opportunity for all Californians to take
part in projects that immediately reduce California's greenhouse gas
emissions and bring important additional local benefits to California
communities.
   (8) Consumers and other members of the public have few protections
or standardized methods by which to ensure that they are purchasing
or obtaining emission reduction credits that actually reduce
greenhouse gases, reduce global warming, and improve the environment.

   (9) The voluntary offset market will continue to grow along with
the compliance market for a variety of reasons, including all of the
following:
   (A) Voluntary project protocols take less time to adopt than
compliance protocols and could serve as a testing ground for
compliance grade offsets.
   (B) Voluntary credits have a lower cost than compliance offsets
and offer consumers an alternative to compliance grade project
prices.
   (C) Voluntary credits offer opportunities abroad and provide
access to a larger range of reductions and emission reduction
projects.
   (b) It is the intent of the Legislature to enact legislation to
provide protections for consumers of voluntary greenhouse gas
emission offsets, including both businesses and individuals, and help
ensure that their participation in the market brings the expected
environmental benefits.