BILL NUMBER: AB 1906	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Nestande

                        FEBRUARY 22, 2012

   An act to  amend Section 38570 of   add
Section 38570.5 to  the Health and Safety Code, relating to
greenhouse gases.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1906, as amended, Nestande. California Global Warming Solutions
Act of 2006: market-based compliance  mechanisms. 
 mechanisms: utilities. 
   The California Global Warming Solutions Act of 2006 establishes
the State Air Resources Board as the state agency responsible for
monitoring and regulating greenhouse gas emission sources. The act
requires the state board to adopt regulations to require the
reporting and verification of statewide greenhouse gas emissions and
to monitor and enforce compliance with this program. The act also
requires the state board to adopt regulations to provide for a
statewide greenhouse gas emissions limit to be achieved by 2020,
equivalent to the statewide greenhouse gas emissions levels in 1990.
Existing law authorizes the state board to include market-based
compliance mechanisms, as defined, to comply with the regulations.
   This bill would  make technical, nonsubstantive changes to
the authorization to include market-based compliance mechanisms
  require any investor-owned utility and any publicly
owned utility that is subject to the act to use any proceeds it
obtains from the monetization of any greenhouse gas emission
allowances for the benefit of ratepayers to reduce rates that are
above the cost of service  .
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 38570.5 is added to the 
 Health and Safety Code   , to read:  
   38570.5.  Any proceeds received from the monetization of
greenhouse gas emission allowances that may be directly allocated for
free to investor-owned utilities and publicly owned utilities by the
state board, pursuant to this part, shall be used exclusively for
the benefit of ratepayers to reduce rates that are above the cost of
service.  
  SECTION 1.    Section 38570 of the Health and
Safety Code is amended to read:
   38570.  (a) The state board may include, in the regulations
adopted pursuant to Section 38562, the use of market-based compliance
mechanisms to comply 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
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.