Amended in Senate May 20, 2013

Amended in Senate April 29, 2013

Amended in Senate April 1, 2013

Senate Bill No. 760

Introduced by Senator Wright

February 22, 2013

An act to add Section 40709.8 to the Health and Safety Code, relating to nonvehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

SB 760, as amended, Wright. Electrical generation facility: emission reduction credits.

Existing law requires every air pollution control and air quality management district board to establish a system by which all reductions in the emission of air contaminants that are to be used to offset certain future increases in the emission of air contaminants to be banked prior to use to offset future increases in emissions. Existing law designates the State Air Resources Board as the responsible agency for the preparation of the state implementation plan required by the federal Clean Air Act.

This bill would prohibit every air pollution control and air quality management district that has established an emission reduction credit program, as specified, from imposing any conditions to physically destroy existing equipment that may be currently begin delete operating, end delete begin insert operating or end insert not operating begin delete , or end delete begin insert that is or will be end insert retired at an electrical generation facility begin delete that applies for an emission reduction credit end delete begin insert unless the owner or operator retires that equipment to provide emission reduction credits, emission offsets, or an offset exemption from the district or the new source review program of the federal Clean Air Act otherwise requires end insert . By imposing new duties on air pollution control and air quality management districts, this bill would impose a state-mandated local program. begin delete The bill would authorize the repowering of previously retired electrical generation facility equipment that generated emission reduction credits from the shutdown of the equipment if the Governor declares a state of emergency due to a sudden and severe energy shortage and the energy shortage can only be alleviated by the repowering of the equipment. The bill would authorize an air pollution control district or air quality management district to seek civil penalties under the federal Clean Air Act, if the repowering of the previously retired electrical generation facility results in a violation of the federal act. end delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 40709.8 is added to the Health and Safety
Code, to read:

40709.8.  

begin delete (a) end delete begin delete   end delete begin delete Notwithstanding any other law, a end delete begin insert A end insert district that
has established a system pursuant to Section 40709 by which
reductions in emissions may be banked or otherwise credited to
offset future increases in the emissions of air contaminants, or
begin delete which end delete begin insert that end insert utilizes a calculation method that enables internal
emissions reductions to be credited against increases in emissions,
shall not impose any conditions to physically destroy existing
equipment that may be currently begin delete operating, end delete begin insert operating or end insert not
begin delete operating, or end delete begin insert operating that is or will be end insert retired at an electrical
generation facility begin delete that applies for an emission reduction credit. end delete
begin insert unless either of the following applies: end insert

begin insert

(a) The owner or operator retires that equipment to provide
emission reduction credits, emission offsets, or an offset exemption
from the district.

end insert begin insert

(b) The new source review program of the federal Clean Air
Act (42 U.S.C. Sec. 7401 et seq.) requires the imposition of such
a condition.

end insert begin delete

(b) Except as provided in subdivision (c), equipment at an
electrical generation facility permanently shutdown or retired as
a condition of generating emission reduction credits shall not be
operated or used in any way that releases air emissions.

(c) Notwithstanding subdivision (b), the repowering of
previously retired electrical generation facility equipment that
generated emission reduction credits from the shutdown of that
equipment shall be authorized if both of the following conditions
are met:

(1) The Governor, pursuant to California Emergency Services
Act (Chapter 7 (commencing with Section 8550) of Division 1 of
Title 2 of the Government Code) has declared a state of emergency
due to a sudden and severe energy shortage, within the meaning
of Section 8558 of the Government Code.

(2) The Governor declares that the energy shortage can only be
alleviated by the repowering of the equipment.

(d) Notwithstanding subdivision (a), a district may require an
electrical generation facility to make changes to its existing
equipment, as is necessary, to ensure that emissions reductions
used to create the emission reduction credit are permanent. The
district shall submit to the United States Environmental Protection
Agency for approval a protocol specifying the types of changes
the district may require and the district may only require those
changes that are consistent with the approved protocol.

(e) Notwithstanding the California Emergency Services Act,
during any period of operation authorized pursuant to subdivision
(c) that constitutes a violation of the federal Clean Air Act (42
U.S.C. Sec. 7401 et seq.), the district may seek civil penalties
against the electrical generation facility pursuant to Section 7420
of Title 42 of the United States Code. Penalties collected shall,
upon appropriation by the Legislature, be expended by the district
on emission reduction projects and to reimburse the district for its
costs of enforcement.

end delete

SEC. 2.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.