Amended in Assembly August 5, 2013

Amended in Assembly June 24, 2013

Amended in Senate May 24, 2013

Amended in Senate April 8, 2013

Senate Bill No. 726

Introduced by Senator Lara

February 22, 2013

An act to amend Section 12894 of the Government Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

SB 726, as amended, Lara. California Global Warming Solutions Act of 2006: Western Climate Initiative, Incorporated.

(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020, and to adopt rules and regulations in an open public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions. Existing law also imposes conditions on the Western Climate Initiative, Incorporated, a nongovernmental entity created to assist the state board in the implementation of the act. Existing law specifies who may serve as part of the California membership of the board of directors of the Western Climate Initiative, Incorporated.

This bill, commencing January 1, 2014, would require the state board to include information on all proposed expenditures and allocations of moneys to the Western Climate Initiative, Incorporated, in the Governor’s Budget. The bill would require the begin delete Western Climate Initiative, Incorporated, to annually submit a specified report to the Governor and the Legislature end delete begin insert state board to report to the Joint Legislative Budget Committee on specified end insert begin insert procurements proposed by the Western Climate Initiative, Incorporated end insert .

(2) The Bagley-Keene Open Meeting Act generally requires that all meetings of a state body be open and public. Existing law exempts the Western Climate Initiative, Incorporated, and its appointees from the Bagley-Keene Open Meeting Act when performing their duties. begin insert end insert begin insert The California Public Records Act requires state and local agencies to make public records available for inspection by the public, subject to specified criteria, and with specified exceptions. end insert

This bill would repeal that exemption and instead subject the Western Climate Initiative, Incorporated, and its appointees to the Bagley-Keene Open Meeting Act when performing their duties. begin insert The bill would require the California membership of the Western Climate Initiative, Incorporated, to participate on the board of directors so long as the Western Climate Initiative, Incorporated, maintains a specified open meetings policy, a specified public records policy, and bylaws limiting the activities of the Western Climate Initiative, Incorporated, to the technical and operational support of the greenhouse gas emissions reduction programs of California and other jurisdictions. end insert

begin delete

(3) The California Public Records Act requires state and local agencies to make public records available for inspection by the public, subject to specified criteria, and with specified exceptions.

end delete begin delete

This bill would require the Western Climate Initiative, Incorporated, and its appointees to be subject to the California Public Records Act when performing their duties.

end delete

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 12894 of the Government Code is
amended to read:

12894.  

(a) (1) The Legislature finds and declares begin delete that the end delete begin insert both
of the following: end insert

begin insert (A) end insert begin insert   end insert begin insert The end insert establishment of nongovernmental entities, such as the
Western Climate Initiative, Incorporated, and linkages with other
states and countries by the State Air Resources Board or other state
agencies for the purposes of implementing Division 25.5
(commencing with Section 38500) of the Health and Safety Code,
should be done transparently and should be independently reviewed
by the Attorney General for consistency with all applicable laws.

begin insert

(B) California’s participation in the Western Climate Initiative,
Incorporated, requires that its sole purpose be to provide
operational and technical support to California in its
implementation of Division 25.5 (commencing with Section 38550)
of the Health and Safety Code and to provide support to the
greenhouse gas emissions reduction programs of other
jurisdictions. Given its limited scope of activities, the Western
Climate Initiative, Incorporated, does not have the authority to
create policy with respect to any existing or future program or
regulation undertaken pursuant to Division 25.5 (commencing
with Section 38550) of the Health and Safety Code.

end insert

(2) The purpose of this section is to establish new oversight and
transparency over begin delete any such linkages end delete begin insert the end insert begin insert Western Climate Initiative,
Incorporated, end insert and related activities undertaken in relation to
Division 25.5 (commencing with Section 38500) of the Health and
Safety Code by the executive agencies in order to ensure
consistency with applicable laws.

(b) The California membership of the begin delete Board of Directors end delete begin insert board
of directors end insert of the Western Climate Initiative, Incorporated, shall
be modified as follows:

(1) One appointee or his or her designee who shall serve as an
ex officio nonvoting member shall be appointed by the Senate
Committee on Rules.

(2) One appointee or his or her designee who shall serve as an
ex officio nonvoting member shall be appointed by the Speaker
of the Assembly.

(3) The Chairperson of the State Air Resources Board or her or
his designee.

(4) The Secretary for Environmental Protection or his or her
designee.

begin insert

(c) The California membership of the board of directors of the
Western Climate Initiative, Incorporated, shall participate on the
board so long as the Western Climate Initiative, Incorporated,
maintains policies and bylaws according to all of the following:

end insert begin insert

(1) An open meetings policy that is and remains consistent with
the general policies of the Bagley-Keene Open Meeting Act (Article
9 (commencing with Section 11120) of Chapter 1 of Part 1) and
affords the public the greatest possible access consistent with the
other duties of the Western Climate Initiative, Incorporated.

end insert begin insert

(2) A records availability policy that is and remains consistent
with the general policies of the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1) and affords the public access to corporate records
consistent with the operating needs and other duties of the Western
Climate Initiative, Incorporated, and all applicable legal privileges.

end insert begin insert

(3) Bylaws that limit the activities of the Western Climate
Initiative, Incorporated, to the technical and operational support
of the greenhouse gas emissions reduction programs of California
and other jurisdictions. These bylaws shall not allow the Western
Climate Initiative, Incorporated, to have policymaking authority
with respect to these programs.

end insert begin delete

(c)

end delete

begin insert (d) end insert  The State Air Resources Board shall provide notice to the
Joint Legislative Budget begin delete Committee, consistent with that required
for Department of Finance augmentation or reduction
authorizations pursuant to subdivision (e) of Section 28.00 of the
annual Budget Act, of any end delete begin insert Committee for both of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert Any end insert funds over one hundred fifty thousand dollars ($150,000)
provided to the Western Climate Initiative, Incorporated, or its
derivatives or subcontractors no later than 30 days prior to transfer
or expenditure of these funds.

begin insert

(2) All procurements over one hundred fifty thousand dollars
($150,000) proposed by the Western Climate Initiative,
Incorporated, that are expected to result in a contract no later
than 30 days prior to the execution of those contracts.

end insert begin delete

(d) (1) 

end delete

begin insert (e) end insert begin insert   end insert The Chairperson of the State Air Resources Board and the
Secretary for Environmental Protection, as the California voting
representatives on the Western Climate Initiative, Incorporated,
shall report every six months to the Joint Legislative Budget
Committee on any actions proposed by the Western Climate
Initiative, Incorporated, that affect California state government or
entities located within the state.

begin delete

(2) The Western Climate Initiative, Incorporated, shall annually
submit a report to the Governor and the appropriate committees
of the Legislature that includes all of the following:

end delete begin delete

(A) Emissions reductions achieved pursuant to the Western
Climate Initiative.

end delete begin delete

(B) General plans to foster relationships with other localities,
states, and nations in order to reduce greenhouse gas emissions in
California.

end delete begin delete

(3) A report submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government
Code.

end delete begin delete

(e)

end delete

begin insert (f) end insert  For purposes of this section, “link,” “linkage,” or “linking”
means an action taken by the State Air Resources Board or any
other state agency that will result in acceptance by the State of
California of compliance instruments issued by any other
governmental agency, including any state, province, or country,
for purposes of demonstrating compliance with the market-based
compliance mechanism established pursuant to Division 25.5
(commencing with Section 38500) of the Health and Safety Code
and specified in Sections 95801 to 96022, inclusive, of Title 17 of
the California Code of Regulations.

begin delete

(f)

end delete

begin insert (g) end insert  A state agency, including, but not limited to, the State Air
Resources Board, shall not link a market-based compliance
mechanism established pursuant to Division 25.5 (commencing
with Section 38500) of the Health and Safety Code and specified
in Sections 95801 to 96022, inclusive, of Title 17 of the California
Code of Regulations with any other state, province, or country
unless the state agency notifies the Governor that the agency
intends to take such action and the Governor, acting in his or her
independent capacity, makes all of the following findings:

(1) The jurisdiction with which the state agency proposes to
link has adopted program requirements for greenhouse gas
reductions, including, but not limited to, requirements for offsets,
that are equivalent to or stricter than those required by Division
25.5 (commencing with Section 38500) of the Health and Safety
Code.

(2) Under the proposed linkage, the State of California is able
to enforce Division 25.5 (commencing with Section 38500) of the
Health and Safety Code and related statutes, against any entity
subject to regulation under those statutes, and against any entity
located within the linking jurisdiction to the maximum extent
permitted under the United States and California Constitutions.

(3) The proposed linkage provides for enforcement of applicable
laws by the state agency or by the linking jurisdiction of program
requirements that are equivalent to or stricter than those required
by Division 25.5 (commencing with Section 38500) of the Health
and Safety Code.

(4) The proposed linkage and any related participation of the
State of California in the Western Climate Initiative, Incorporated,
shall not impose any significant liability on the state or any state
agency for any failure associated with the linkage.

begin delete

(g)

end delete

begin insert (h) end insert  The Governor shall issue findings pursuant to subdivision
begin delete (f) end delete begin insert (g) end insert within 45 days of receiving a notice from a state agency,
and shall provide those findings to the Legislature. The findings
shall consider the advice of the Attorney General. The findings to
be submitted to the Legislature shall not be unreasonably withheld.
The findings shall not be subject to judicial review.

begin delete

(h) The Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1) and the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1) shall apply to the Western
Climate Initiative, Incorporated, and to appointees specified in
subdivision (b) when performing their duties under this section.

end delete

(i) Commencing January 1, 2014, the State Air Resources Board
shall include information on all proposed expenditures and
allocations of moneys to the Western Climate Initiative,
Incorporated, in the Governor’s Budget.