Amended in Senate May 5, 2015

Amended in Senate March 16, 2015

Senate BillNo. 32

Introduced by Senator Pavley

(Coauthors: Senators Allen, Beall, Block, De León, Hancock, Hill, Jackson, Leno, Liu, McGuire, Monning, and Wolk)

(Coauthors: Assembly Members Bloom, Cristina Garcia, Rendon, and Mark Stone)

December 1, 2014

An act to amend Sectionsbegin delete 38550 and 38551end deletebegin insert 38505, 38550, 38551, and 38561end insert of the Health and Safety Code, relating to greenhouse gases.


SB 32, as amended, Pavley. California Global Warming Solutions Act of 2006: emissions limit.

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.

This bill would require the state board to approve a statewide greenhouse gas emissions limit that is equivalent to 80% below the 1990 level to be achieved by 2050, as specified. The bill would authorize the state board to adopt interim greenhouse gas emissions level targets to be achieved by 2030 and 2040. The bill also would state the intent of the Legislature for the Legislature and appropriate agencies to adopt complementary policies that ensure the long-term emissions reductions advance specified criteria.begin insert The bill would make conforming changes.end insert

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 38505 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert



Forbegin delete theend delete purposes of this division, the following terms
4have the following meanings:

5(a) “Allowance” means an authorization to emit, during a
6specified year, up to one ton of carbon dioxide equivalent.

7(b) “Alternative compliance mechanism” means an action
8undertaken by a greenhouse gas emission source that achieves the
9equivalent reduction of greenhouse gas emissions over the same
10time period as a direct emission reduction, and that is approved
11by the state board. “Alternative compliance mechanism” includes,
12but is not limited to, a flexible compliance schedule, alternative
13control technology, a process change, or a product substitution.

14(c) “Carbon dioxide equivalent” means the amount of carbon
15dioxide by weight that would produce the same global warming
16impact as a given weight of another greenhouse gas, based on the
17best available science, including from the Intergovernmental Panel
18on Climate Change.

19(d) “Cost-effective” or “cost-effectiveness” means the cost per
20unit of reduced emissions of greenhouse gases adjusted for its
21global warming potential.

22(e) “Direct emission reduction” means a greenhouse gas
23emission reduction action made by a greenhouse gas emission
24source at that source.

25(f) “Emissions reduction measure” means programs, measures,
26standards, and alternative compliance mechanisms authorized
27pursuant to this division, applicable to sources or categories of
28 sources, that are designed to reduce emissions of greenhouse gases.

29(g) “Greenhouse gas” or “greenhouse gases” includes all of the
30following gases:

31(1) Carbon dioxide.

32(2) Methane.

33(3) Nitrous oxide.

P3    1(4) Hydrofluorocarbons.

2(5) Perfluorocarbons.

3(6) Sulfur hexafluoride.

4(7) Nitrogen trifluoride.

5(h) “Greenhouse gas emissions limit” means an authorization,
6during a specified year, to emit up to a level of greenhouse gases
7specified by the state board, expressed in tons of carbon dioxide

9(i) “Greenhouse gas emission source” or “source” means any
10source, or category of sources, of greenhouse gas emissions whose
11emissions are at a level of significance, as determined by the state
12board, that its participation in the program established under this
13division will enable the state board to effectively reduce greenhouse
14gas emissions and monitor compliance with the statewide
15greenhouse gas emissions limit.

16(j) “Leakage” means a reduction in emissions of greenhouse
17gases within the state that is offset by an increase in emissions of
18greenhouse gases outside the state.

19(k) “Market-based compliance mechanism” means either of the

21(1) A system of market-based declining annual aggregate
22emissions limitations for sources or categories of sources that emit
23greenhouse gases.

24(2) Greenhouse gas emissions exchanges, banking, credits, and
25other transactions, governed by rules and protocols established by
26the state board, that result in the same greenhouse gas emission
27reduction, over the same time period, as direct compliance with a
28greenhouse gas emission limit orbegin delete emissionend deletebegin insert emissionsend insert reduction
29measure adopted by the state board pursuant to this division.

30(l) “State board” means the State Air Resources Board.

31(m) “Statewide greenhouse gas emissions” means the total
32annual emissions of greenhouse gases in the state, including all
33emissions of greenhouse gases from the generation of electricity
34delivered to and consumed in California, accounting for
35transmission and distribution line losses, whether the electricity
36is generated in state or imported. Statewide emissions shall be
37expressed in tons of carbon dioxide equivalents.

38(n) “Statewide greenhouse gas emissions limit” or “statewide
39emissions limit” means the maximum allowable level of statewide
40greenhouse gasbegin delete emissions in 2020,end deletebegin insert emissions,end insert as determined by
P4    1the state board pursuant to Part 3 (commencing with Section


begin deleteSECTION 1.end delete
4begin insertSEC. 2.end insert  

Section 38550 of the Health and Safety Code is
5amended to read:



(a) By January 1, 2008, the state board shall, after one
7or more public workshops, with public notice, and an opportunity
8for all interested parties to comment, determine what the statewide
9greenhouse gas emissions level was in 1990, and approve in a
10public hearing, a statewide greenhouse gas emissions limit that is
11equivalent to that level, to be achieved by 2020. In order to ensure
12the most accurate determination feasible, the state board shall
13evaluate the best available scientific, technological, and economic
14information on greenhouse gas emissions to determine the 1990
15 level of greenhouse gas emissions.

16(b) (1) Notwithstanding subdivision (a), the state board shall
17approve in a public hearing a statewide greenhouse gas emissions
18limit that is equivalent to 80 percent below the 1990 level, as
19determined pursuant to subdivision (a) or Section 39730, to be
20achieved by 2050 based on the best available scientific,
21technological, and economic assessments. The greenhouse gas
22emissions limit shall include short-lived climate pollutants, as
23defined in Chapter 4.2 (commencing with Section 39730) of Part
242 of Division 26.

25(2) The state board also may approve interim greenhouse gas
26emissions level targets to be achieved by 2030 and 2040 consistent
27 with paragraph (1).


begin deleteSEC. 2.end delete
29begin insertSEC. 3.end insert  

Section 38551 of the Health and Safety Code is
30amended to read:



(a) The statewide greenhouse gas emissions limit shall
32remain in effect unless otherwise amended or repealed.

33(b) It is the intent of the Legislature that the 2050 statewide
34greenhouse gas emissions limit established pursuant to Section
3538550 continue in existence and be used to maintain and continue
36reductions in emissions of greenhouse gases beyond 2050.

37(c) The state board shall make recommendations to the Governor
38and the Legislature on how to continue reductions of greenhouse
39gas emissions beyond 2050.

P5    1(d) In implementing subdivision (b) of Section 38550, it is the
2intent of the Legislature for the Legislature and appropriate
3agencies to adopt complementary policies that ensure the long-term
4emissions reductions adopted pursuant to subdivision (b) of Section
538550 advance all of the following:

6(1) Job growth and local economic benefits in California.

7(2) Public health benefits for California residents, particularly
8in disadvantaged communities.

9(3) Innovation in technology and energy, water, and resource
10management practices.

11(4) Regional and international collaboration to adopt similar
12greenhouse gas emissions reduction policies.

13begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 38561 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
14amended to read:end insert



(a) begin insert(1)end insertbegin insertend insertOn or before January 1, 2009, the state board
16shall prepare and approve a scoping plan, as that term is understood
17by the state board, for achieving the maximum technologically
18feasible and cost-effective reductions in greenhouse gas emissions
19from sources or categories of sources of greenhouse gasesbegin delete by 2020end delete
20 under this division.begin delete Theend delete

21begin insert(2)end insertbegin insertend insertbegin insertTheend insert state board shall consult with all state agencies with
22jurisdiction over sources of greenhouse gases, including the Public
23Utilities Commission and the State Energy Resources Conservation
24and Development Commission, on all elements of its plan that
25pertain tobegin delete energy relatedend deletebegin insert energy-relatedend insert matters including, but not
26limited to, electrical generation, load based-standards or
27requirements, the provision of reliable and affordable electrical
28service, petroleum refining, and statewide fuel supplies to ensure
29the greenhouse gas emissions reduction activities to be adopted
30and implemented by the state board are complementary,
31nonduplicative, and can be implemented in an efficient and
32cost-effective manner.

33(b) The plan shall identify and make recommendations on direct
34begin delete emissionend deletebegin insert emissionsend insert reduction measures, alternative compliance
35mechanisms, market-based compliance mechanisms, and potential
36monetary and nonmonetary incentives for sources and categories
37of sources that the state board finds are necessary or desirable to
38facilitate the achievement of the maximum feasible and
39cost-effective reductions of greenhouse gas emissionsbegin delete by 2020.end delete
40begin insert under this division.end insert

P6    1(c) In making the determinations required by subdivision (b),
2the state board shall consider all relevant information pertaining
3to greenhouse gas emissions reduction programs in other states,
4localities, and nations, including the northeastern states of the
5United States, Canada, and the European Union.

6(d) The state board shall evaluate the total potential costs and
7total potential economic and noneconomic benefits of the plan for
8reducing greenhouse gases to California’s economy, environment,
9and public health, using the best available economic models,
10emission estimation techniques, and other scientific methods.

11(e) In developing its plan, the state board shall take into account
12the relative contribution of each source or source category to
13statewide greenhouse gas emissions, and the potential for adverse
14effects on small businesses, and shall recommend a de minimis
15threshold of greenhouse gas emissions below whichbegin delete emissionend delete
16begin insert emissionsend insert reduction requirements will not apply.

17(f) In developing its plan, the state board shall identify
18opportunities forbegin delete emission reductionsend deletebegin insert emissions reductionend insert measures
19from all verifiable and enforceable voluntary actions, including,
20but not limited to, carbon sequestration projects and best
21management practices.

22(g) The state board shall conduct a series of public workshops
23to give interested parties an opportunity to comment on the plan.
24The state board shall conduct a portion of these workshops in
25regions of the state that have the most significant exposure to air
26pollutants, including, but not limited to, communities with minority
27 populations, communities with low-income populations, or both.

28(h) The state board shall update its plan for achieving the
29maximum technologically feasible and cost-effective reductions
30of greenhouse gas emissions at least once every five years.