BILL NUMBER: SB 722 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 25, 2009
AMENDED IN ASSEMBLY JUNE 11, 2009
AMENDED IN SENATE APRIL 23, 2009
INTRODUCED BY Senator Steinberg
FEBRUARY 27, 2009
An act to add Division 25.7 (commencing with Section 38700) to the
Health and Safety Code, relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
SB 722, as amended, Steinberg. Greenhouse gas credits.
Under existing law, a person or entity that represents that a
consumer good that it manufactures or distributes is not harmful to,
or is beneficial to, the natural environment, through the use of
specified environmental terms, is required to maintain in written
form in its records information and documentation supporting the
validity of the representation, as specified. Existing law provides
that it is unlawful for a person to make any untruthful, deceptive,
or misleading environmental marketing claim, whether explicit or
implied. A violation of these requirements is a misdemeanor.
This bill would make it unlawful for a person, as defined, to
represent in an advertisement or in any other sales or promotional
materials made available to the public for the sale of a greenhouse
gas credit or emission reduction, that the credit or reduction
reduces greenhouse gas emissions unless certain requirements are met.
The bill would also require a person that represents in an
advertisement or in any sales or promotional materials made available
to the public for the sale of a greenhouse gas credit or emission
reduction, that the credit or emission reduction results in a
reduction of greenhouse gases to maintain in written form and make
available to any member of the public who requests it certain
information and documentation supporting the validity of that
representation. A violation of these provisions would be punishable
by a specified civil penalty and would create a civil cause of
action. Reasonable attorney fees and costs would be available for any
such action brought. These requirements would become operative on
January 1, 2011, and would become inoperative if the Federal Trade
Commission adopts binding and enforceable trade rules or regulations
for claims or representations for greenhouse gas emission reduction
credits or reductions to protect consumers.
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. Division 25.7 (commencing with Section 38700) is added
to the Health and Safety Code, to read:
DIVISION 25.7. GREENHOUSE GAS REDUCTION REPRESENTATIONS
38700. The Legislature finds and declares all of the following:
(a) Global warming poses a serious challenge to the world's
environment and economy.
(b) With increasing concern regarding climate change, 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 to voluntarily offset greenhouse gas
emissions from the activities of the purchaser.
(c) While voluntary greenhouse gas emission reductions can
contribute to efforts to reduce global warming, 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.
(d) The purposes of this division are to protect the consumer and
to ensure that the benefits to the environment through the sale of
legitimate greenhouse gas emission reduction credits, offsets, or
similar products are realized.
38701. For the purposes of this division, the following terms
have the following meanings:
(a) "Greenhouse gas credit," "emission reduction," "credit,"
"offset," "reduction," or any similar term, means a voluntary
reduction in the emissions of greenhouse gases into the atmosphere
undertaken for the purposes of selling, trading, or otherwise
providing the credit or emission reduction to another party.
(b) "Person" has the same meaning as set forth in subdivision (c)
of Section 17577.1 of the Business and Professions Code.
38702. It is unlawful for any person to represent in an
advertisement or in any other sales or promotional materials made
available to the public for the sale of a greenhouse gas credit or
emission reduction, that the credit or reduction reduces greenhouse
gas emissions unless it meets one or more of the following
conditions:
(a) The credit or emission reduction meets methodologies that have
been adopted by the State Air Resources Board as being in compliance
with Division 25.5 (commencing with Section 38500), including, but
not limited to, Section 38571.
(a) The credit or emission reduction meets methodologies or
standards that have been adopted or approved by the State Air
Resources Board pursuant to Division 25.5 (commencing with Section
38500).
(b) The credit or emission reduction complies with one or more
protocols for voluntary emission reductions of greenhouse gases
adopted by the California Climate Action Registry consistent with the
requirements in former Chapter 6 (commencing with Section 42800) of
Part 4 of Division 26, as effective on December 31, 2007, and is
registered with the California Climate Action Registry.
(c) The person demonstrates, and discloses in any advertising or
other sales or promotional material made available to the public,
that the credit or emission reduction meets all of the following
conditions:
(1) The credit or emission reduction is quantifiable and
measurable in a manner that is consistent with the protocols
developed pursuant to the reporting regulations adopted by the State
Air Resources Board pursuant to Part 2 (commencing with Section
38530) of Division 25.5.
(2) The credit or emission reduction is surplus, and is in
addition to any greenhouse gas emission reduction that otherwise
would occur.
(3) The credit or emission reduction is verifiable by a state,
regional, or local agency within the State of California.
(4) The credit or emission reduction does not cause or contribute
to a violation of any state or federal ambient air quality standard
or toxic air contaminant standard.
38703. (a) Any person that represents in an advertisement or in
any other sales or promotional materials made available to the public
for the sale of a greenhouse gas credit or emission reduction, that
the credit or emission reduction results in a reduction in greenhouse
gases, shall maintain in written form and make available to any
member of the public who requests it all of the following information
and documentation supporting the validity of the representation:
(1) The basis for the claim, including documentation that one or
more of the conditions required by Section 38702 have been met.
(2) Information on any adverse environmental or public health
impacts associated with the creation and maintenance of the credit or
emission reduction, including impacts on species, habitat,
ecosystems, land use, biodiversity, air quality, water supply and
quality, access to food, and production of food.
(b) A retailer that does not initiate a representation by
advertising or through other means available to the public shall not
be deemed to be in violation of this section.
38704. (a) A violation of this division is punishable by a civil
penalty not to exceed two thousand five hundred dollars ($2,500) per
violation, and by the payment of the cost of the purchase of the
credit, offset, or reduction as defined pursuant to subdivision (a)
of Section 38701.
(b) A violation of this division creates a civil cause of action
that may be brought by any person or governmental entity.
(c) Reasonable attorney fees and costs shall be available for any
action brought pursuant to this section.
(d) A violation of this division is not a crime.
(e) The remedies provided in this section are in addition to any
other rights or remedies under any other provision of law.
38705. This division shall become operative on January 1, 2011,
and shall become inoperative if the Federal Trade Commission adopts
binding and enforceable trade rules or regulations for claims or
representations for greenhouse gas emission reduction credits or
reductions to protect consumers.