Amended in Senate August 19, 2016

Amended in Senate August 2, 2016

Amended in Senate June 8, 2016

Amended in Assembly April 29, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 197

Introduced by Assembly Member Eduardo Garcia

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(Principal coauthor: Assembly Member Gomez)

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(Coauthor: Assembly Member Rendon)

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January 28, 2015

An act to add Article 7.6 (commencing with Section 9147.10) to Chapter 1.5 of Part 1 of Division 2 of Title 2 of the Government Code, and to amend begin delete Section end delete begin insert Sections end insert 39510 begin insert and 39607 end insert of, and to add Sections begin delete 38562.5 end delete begin insert 38506, 38531, 38562.5, end insert and 38562.7 to, the Health and Safety Code, relating to air resources.

LEGISLATIVE COUNSEL’S DIGEST

AB 197, as amended, Eduardo Garcia. State Air Resources Board: greenhouse begin delete gases. end delete begin insert gases: regulations. end insert

(1) Existing law establishes the State Air Resources Board consisting of 14 members and vests the state board with regulatory jurisdiction over air quality issues.

This bill would add 2 Members of the Legislature to the state board as ex officio, nonvoting members. The bill would provide that the voting members of the state board are appointed for staggered 6-year terms and upon expiration of the term of office of a voting member, the appointing authority may reappoint that member to a new term of office, subject to specified requirements. The bill would require the state board to establish the initial staggered terms. The bill would create the Joint Legislative Committee on Climate Change Policies consisting of begin insert at least end insert 3 Members of the Senate and begin insert at least end insert 3 Members of the Assembly and would require the committee to ascertain facts and make recommendations to the Legislature and to the houses of the Legislature concerning the state’s begin delete programs and policies end delete begin insert programs, policies, and investments end insert related to climate begin delete change end delete begin insert change, as specified. end insert

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(2) The California Global Warming Solutions Act of 2006 designates the state board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the board to adopt greenhouse gas emissions limits and emission reduction measures by regulation, and authorizes the state board to include the use of market-based compliance mechanisms to comply with the regulations.

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(2) Existing law requires the state board to inventory sources of air pollution within the air basins of the state and determine the kinds and quantity of air pollutants. The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with the act.

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This bill would require the state board to make available, and update at least annually, on its Internet Web site the emissions of greenhouse gases, criteria pollutants, and toxic air contaminants for each facility that reports to the state board and air districts. The bill would require the state board, at least once a year at a hearing of the Joint Legislative Committee on Climate Change Policies, to present an informational report on the reported emissions of greenhouse gases, criteria pollutants, and toxic air contaminants from all sectors covered by the scoping plan, as specified.

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This bill would require the state board to make available, and update at least annually, on its Internet Web site the emissions of greenhouse gases, criteria pollutants, and toxic air contaminants throughout the state broken down to a local and subcounty level for stationary sources and to at least a county level for mobile sources, as specified.

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(3) The act requires the board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions.

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This bill would require the state board to consider adopting measures to meet the greenhouse gas emissions limits based on a specified priority. The bill would require the state board to rank all greenhouse gas emissions reduction measures, as specified. The bill would require the state board to make available to the public all data related to the ranking and to provide annually a presentation of the ranking at one of its regular meeting.

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This bill would require the state board, when adopting rules and regulations to achieve greenhouse gas emissions reductions beyond the statewide greenhouse gas emissions limit and to protect the state’s most impacted and disadvantaged communities, to follow specified requirements, consider the social costs of the emissions of greenhouse gases, and prioritize specified emission reduction rules and regulations.

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This bill would require the state board, when updating the scoping plan, to identify specified information for each emissions reduction measure, including each alternative compliance mechanism, market-based compliance mechanism, and potential monetary and nonmonetary incentive.

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(3)

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begin insert (4) end insert  This bill would become operative only if SB 32 of the 2015-16 Regular Session is enacted and becomes effective on or before January 1, 2017.

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

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

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares all of the
following: end insert

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(a) The California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) authorizes the State Air Resources Board to
adopt regulations to achieve the maximum technologically feasible
and cost-effective greenhouse gas emission reductions.

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(b) The California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) requires the State Air Resources Board to reduce
statewide emissions of greenhouse gases to at least the 1990
emissions level by 2020 and to maintain and continue reductions
thereafter.

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(c) Continuing to reduce greenhouse gas emissions is critical
for the protection of all areas of the state, but especially for the
state’s most disadvantaged communities, as those communities
are affected first, and most frequently, by adverse impacts of
climate change, including increased frequency of extreme weather
events such as drought, heat, and flooding. The state’s most
disadvantaged communities are also disproportionately impacted
by the deleterious effects of climate change on public health.

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(d) The State Air Resources Board’s actions to reduce
greenhouse gas emissions must be done in a manner that is
transparent and accountable to the public and the Legislature. To
this end, the State Air Resources Board must enhance the
accessibility of information used to inform and evaluate regulatory
measures developed to reduce greenhouse gas emissions.

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(e) Transparency and accountability also are essential to
ensuring the state’s actions are done in an equitable fashion that
is protective and mindful of the effects on the state’s most
disadvantaged communities.

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(f) In recognition of the need for ongoing, permanent oversight
over the implementation of the state’s climate policies, the Joint
Legislative Committee on Climate Change Policies will be
established. The committee will uniquely provide an oversight
perspective that connects the jurisdictions of several legislative
standing committees, including those that have the issues of air
quality, transportation, energy, and local government within their
jurisdiction, which is critical given that the state has integrated
climate change policies throughout the activities of many state
agencies in addition to the State Air Resources Board.

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begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Article 7.6 (commencing with Section 9147.10) is
added to Chapter 1.5 of Part 1 of Division 2 of Title 2 of the Government Code, to read:

 

Article 7.6.  Joint Legislative Committee on Climate Change
Policies

 

9147.10.  

(a) The Joint Legislative Committee on Climate
Change Policies is hereby created. The committee shall ascertain
facts and make recommendations to the Legislature concerning
the state’s begin delete programs and policies end delete begin insert programs, policies, and
investments end insert related to climate change. begin insert Those recommendations
shall be shared with other appropriate legislative standing
committees, including the Assembly Committee on Budget and the
Senate Committee on Budget and Fiscal Review. end insert

(b) The begin insert joint end insert committee shall consist of begin insert at least end insert three Members
of the Senate and begin insert at least end insert three Members of the Assembly who
shall be selected in the manner provided for in the Joint Rules of
the Senate and Assembly. begin delete The committee shall elect its own chair.
A vacancy occurring in the membership of the committee shall be
filled in the manner provided for in the Joint Rules of the Senate
and Assembly. A vacancy is deemed to exist as to any member of
the committee whose term is expiring whenever the member is
not reelected at the general election. end delete begin insert The membership shall reflect
the perspectives of multiple standing committees. end insert

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(c) The chair of the State Air Resources Board shall annually
appear before the joint committee to present the state board’s
annual informational report on the reported emissions of
greenhouse gases, criteria pollutants, and toxic air contaminants
from all sectors covered by the scoping plan, as required pursuant
to subdivision (b) of Section 38531 of the Health and Safety Code.
This presentation may be done at a hearing that is held jointly
with the relevant Assembly and Senate standing committees.

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(d) In recognition of the technical complexity involved in
reviewing the state’s climate policies, the joint committee may
establish a panel of experts to provide an independent analysis of
the state’s policies to better inform the joint committee’s
recommendations.

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SEC. 2.  

Section 38562.5 is added to the Health and Safety
Code, to read:

38562.5.  

The state board shall consider adopting measures to
achieve the statewide greenhouse gas emissions limits adopted
pursuant to this division based on the following priority:

(a) Measures that result in direct reductions in the emissions of
greenhouse gases from large stationary sources, such as oil
refineries, and the transportation sector in the most technologically
feasible and cost-effective manner possible that accounts for the
societal costs of the emissions of greenhouse gases.

(b) Measures that result in direct reductions in the emissions of
greenhouse gases from sources other than those specified in
subdivision (a) in the most technologically feasible and
cost-effective manner possible that accounts for the societal costs
of the emissions of greenhouse gases.

SEC. 3.  

Section 38562.7 is added to the Health and Safety
Code, to read:

38562.7.  

(a) The state board shall rank all emission reduction
measures adopted pursuant to this part based on both of the
following:

(1) The reductions in the emissions of greenhouse gases, criteria
pollutants, and toxic air contaminants resulting from the
implementation of the measure.

(2) The cost-effectiveness of the measure.

(b) The state board shall make available to the public all data
related to its ranking pursuant to subdivision (a) and annually
provide a presentation on the ranking at a regular meeting of the
state board.

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begin insert SEC. 3. end insert   

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begin insert Section 38506 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

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begin insert 38506. end insert   

For purposes of this division, “social costs” means an
estimate of the economic damages, including, but not limited to,
changes in net agricultural productivity; impacts to public health;
climate adaptation impacts, such as property damages from
increased flood risk; and changes in energy system costs, per
metric ton of greenhouse gas emission per year.

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begin insert SEC. 4. end insert   

end insert

begin insert Section 38531 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

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begin insert 38531. end insert   

(a) (1) The state board shall make available, and
update at least annually, on its Internet Web site the emissions of
greenhouse gases and criteria pollutants for each facility that
reports to the state board pursuant to Section 38530. The data
shall be displayed in a manner that illustrates the changes in
emissions levels over time.

(2) No later than January 1, 2018, the state board shall add
toxic air contaminant emissions to the information made available
pursuant to paragraph (1).

(3) The criteria pollutant and toxic air contaminant emissions
data for stationary sources shall be based on data provided to the
state board by air pollution control and air quality management
districts collected pursuant to Section 39607 and Chapter 3
(commencing with Section 44340) of Part 6 of Division 26.

(b) At least once a year at a hearing of the Joint Legislative
Committee on Climate Change Policies, the state board shall
present an informational report on the reported emissions of
greenhouse gases, criteria pollutants, and toxic air contaminants
from all sectors covered by the scoping plan prepared pursuant
to Section 38561. The report shall evaluate emission trends and
include a discussion of the regulatory requirements, initiatives,
and other programs that may influence those trends. The report
also may include recommendations from the state board for
legislative action and consideration.

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begin insert SEC. 5. end insert   

end insert

begin insert Section 38562.5 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 38562.5. end insert   

When adopting rules and regulations pursuant to this
division to achieve emissions reductions beyond the statewide
greenhouse gas emissions limit and to protect the state’s most
impacted and disadvantaged communities, the state board shall
follow the requirements in subdivision (b) of Section 38562,
consider the social costs of the emissions of greenhouse gases,
and prioritize both of the following:

(a) Emission reduction rules and regulations that result in direct
emission reductions at large stationary sources of greenhouse gas
emissions sources and direct emission reductions from mobile
sources.

(b) Emission reduction rules and regulations that result in direct
emission reductions from sources other than those specified in
subdivision (a).

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begin insert SEC. 6. end insert   

end insert

begin insert Section 38562.7 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 38562.7. end insert   

Each scoping plan update developed pursuant to
Section 38561 shall identify for each emissions reduction measure,
including each alternative compliance mechanism, market-based
compliance mechanism, and potential monetary and nonmonetary
incentive the following information:

(a) The range of projected greenhouse gas emissions reductions
that result from the measure.

(b) The range of projected air pollution reductions that result
from the measure.

(c) The cost-effectiveness, including avoided social costs, of the
measure.

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begin delete SEC. 4. end delete

begin insert SEC. 7. end insert   

Section 39510 of the Health and Safety Code is
amended to read:

39510.  

(a) The State Air Resources Board is continued in
existence in the California Environmental Protection Agency. The
state board shall consist of 14 voting members.

(b) Twelve members shall be appointed by the Governor, with
the consent of the Senate, on the basis of their demonstrated interest
and proven ability in the field of air pollution control and their
understanding of the needs of the general public in connection
with air pollution problems.

(c) Of the members appointed pursuant to subdivision (b), six
members shall have the following qualifications:

(1) One member shall have training and experience in
automotive engineering or closely related fields.

(2) One member shall have training and experience in chemistry,
meteorology, or related scientific fields, including agriculture or
law.

(3) One member shall be a physician and surgeon or an authority
on health effects of air pollution.

(4) Two members shall be public members.

(5) One member shall have the qualifications specified in
paragraph (1), (2), or (3) or shall have experience in the field of
air pollution control.

(d) Of the members appointed pursuant to subdivision (b), six
members shall be board members from districts who shall reflect
the qualitative requirements of subdivision (c) to the extent
practicable. Of these members:

(1) One shall be a board member from the south coast district.

(2) One shall be a board member from the bay district.

(3) One shall be a board member from the San Joaquin Valley
Unified Air Pollution Control District.

(4) One shall be a board member from the San Diego County
Air Pollution Control District.

(5) One shall be a board member from the Sacramento district,
the Placer County Air Pollution Control District, the Yolo-Solano
Air Quality Management District, the Feather River Air Quality
Management District, or the El Dorado County Air Pollution
Control District.

(6) One shall be a board member of any other district.

(e) The Senate Committee on Rules and the Speaker of the
Assembly shall each appoint one member to the state board who
shall be a person who works directly with communities in the state
that are most significantly burdened by, and vulnerable to, high
levels of pollution, including, but not limited to, communities with
diverse racial and ethnic populations and communities with
low-income populations.

(f) Any vacancy shall be filled by the appointing authority within
30 days of the date on which it occurs. If the Governor fails to
make an appointment for any vacancy within the 30-day period,
the Senate Committee on Rules may make the appointment to fill
the vacancy in accordance with this section.

(g) While serving on the state board, all members shall exercise
their independent judgment as officers of the state on behalf of the
interests of the entire state in furthering the purposes of this
division. A member of the state board shall not be precluded from
voting or otherwise acting upon any matter solely because that
member has voted or acted upon the matter in his or her capacity
as a member of a district board, except that a member of the state
board who is also a member of a district board shall not participate
in any action regarding his or her district taken by the state board
pursuant to Sections 41503 to 41505, inclusive.

(h) (1) Except for initial staggered terms that shall be
established by the state board, the term of office for the voting
members shall be six years. Upon expiration of the term of office
of a voting member, the appointing authority may reappoint that
member to a new term of office, subject to the requirement of
subdivision (b), if applicable.

(2) Notwithstanding paragraph (1), a person who is a member
of the state board pursuant to subdivision (d) shall not continue as
a member if he or she ceases to hold the membership that qualifies
that person to be appointed as a member of the state board. The
membership on the state board held by that person shall terminate
immediately upon ceasing to hold that qualifying membership.

(i) In addition to subdivision (a), two Members of the Legislature
shall serve as ex officio, nonvoting members of the state board.
One member shall be appointed by the Senate Committee on Rules.
One member shall be appointed by the Speaker of the Assembly.

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begin insert SEC. 8. end insert   

end insert

begin insert Section 39607 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

39607.  

The state board shall:

(a) Establish a program to secure data on air quality in each air
basin established by the state board.

(b)  begin insert (1) end insert begin insert   end insert Inventory sources of air pollution within the air basins
of the state and determine the kinds and quantity of air pollutants,
including, but not begin delete necessarily end delete limited to, the contribution of natural
sources, mobile sources, and area sources of emissions, including
a separate identification of those sources not subject to district
permit requirements, to the extent feasible and necessary to carry
out the purposes of this chapter. The state board shall use, to the
fullest extent, the data of local agencies and other state and federal
agencies in fulfilling this purpose.

begin insert

(2) Make available on the state board’s Internet Web site the
emissions of greenhouse gases, criteria pollutants, and toxic air
contaminants throughout the state broken down to a local and
subcounty level for stationary sources and to at least a county
level for mobile sources. The emissions reported shall include data
on the emissions of criteria pollutants and toxic air contaminants
emitted by stationary sources as provided to the state board by
districts. The information shall be displayed graphically and
updated at least once a year.

end insert

(c) Monitor air pollutants in cooperation with districts and with
other agencies to fulfill the purpose of this division.

(d) Adopt test procedures to measure compliance with its
nonvehicular emission standards and those of districts.

(e) Establish and periodically review criteria for designating an
air basin attainment or nonattainment for any state ambient air
quality standard set forth in Section 70200 of Title 17 of the
California Code of Regulations. In developing and reviewing these
criteria, the state board shall consider instances where there is poor
or limited ambient air quality data, and shall consider highly
irregular or infrequent violations. The state board shall provide an
opportunity for public comment on the proposed criteria, and shall
adopt the criteria after a public hearing.

(f) Evaluate, in consultation with the districts and other
interested parties, air quality-related indicators begin delete which end delete begin insert that end insert may be
used to measure or estimate progress in the attainment of state
standards and establish a list of approved indicators. On or before
July 1, 1993, the state board shall identify one or more air quality
indicators to be used by districts in assessing progress as required
by subdivision (b) of Section 40924. The state board shall continue
to evaluate the prospective application of air quality indicators
and, upon a finding that adequate air quality modeling capability
exists, shall identify one or more indicators begin delete which end delete begin insert that end insert may be
used by districts in lieu of the annual emission reductions mandated
by subdivision (a) of Section 40914. In no case shall any indicator
be less stringent or less protective, on the basis of overall health
protection, than the annual emission reduction requirement in
subdivision (a) of Section 40914.

(g) Establish, not later than July 1, 1996, a uniform methodology
begin delete which end delete begin insert that end insert may be used by districts in assessing population
exposure, including, but not limited to, reduction in exposure of
districtwide begin delete subpopulations end delete begin insert subpopulations, end insert such as children, the
elderly, and persons with respiratory disease, to ambient air
pollutants at levels above the state ambient air quality standards,
for estimating reductions in population exposure for the purposes
of Sections 40913, 40924, and 41503, and for the establishment
of the means by which reductions in population exposures may be
achieved. The methodology adopted pursuant to this subdivision
shall be consistent with the federal Clean Air Act (42 U.S.C. Sec.
7401 et seq.), and with this division, including, but not limited to,
Section 39610.

begin delete SEC. 5. end delete

begin insert SEC. 9. end insert   

This act shall become operative only if Senate Bill 32
of the 2015-16 Regular Session is enacted and becomes effective
on or before January 1, 2017.