Amended in Senate June 1, 2015

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,begin insert Mitchell,end insert Monning,begin insert Wieckowski,end insert and Wolk)

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

December 1, 2014


An act to amend Sections 38505, 38550, 38551, and 38561 of the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

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 approvebegin delete aend delete statewide greenhouse gas emissionsbegin delete limit that is equivalent toend deletebegin insert limits that are the equivalent to 40% below the 1990 level to be achieved by 2030 andend insert 80% below the 1990 level to be achieved by 2050, as specified. The bill would authorize the state board to adoptbegin insert anend insert interim greenhouse gas emissions levelbegin delete targetsend deletebegin insert targetend insert to be achieved bybegin delete 2030 andend delete 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. The bill would make conforming changes.

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

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

P2    1

SECTION 1.  

Section 38505 of the Health and Safety Code is
2amended to read:

3

38505.  

For purposes of this division, the following terms have
4the 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.

P3    1(g) “Greenhouse gas” or “greenhouse gases” includes all of the
2following gases:

3(1) Carbon dioxide.

4(2) Methane.

5(3) Nitrous oxide.

6(4) Hydrofluorocarbons.

7(5) Perfluorocarbons.

8(6) Sulfur hexafluoride.

9(7) Nitrogen trifluoride.

10(h) “Greenhouse gas emissions limit” means an authorization,
11during a specified year, to emit up to a level of greenhouse gases
12specified by the state board, expressed in tons of carbon dioxide
13equivalents.

14(i) “Greenhouse gas emission source” or “source” means any
15source, or category of sources, of greenhouse gas emissions whose
16emissions are at a level of significance, as determined by the state
17board, that its participation in the program established under this
18division will enable the state board to effectively reduce greenhouse
19gas emissions and monitor compliance with the statewide
20greenhouse gas emissions limit.

21(j) “Leakage” means a reduction in emissions of greenhouse
22gases within the state that is offset by an increase in emissions of
23greenhouse gases outside the state.

24(k) “Market-based compliance mechanism” means either of the
25following:

26(1) A system of market-based declining annual aggregate
27emissions limitations for sources or categories of sources that emit
28greenhouse gases.

29(2) Greenhouse gas emissions exchanges, banking, credits, and
30other transactions, governed by rules and protocols established by
31the state board, that result in the same greenhouse gas emission
32reduction, over the same time period, as direct compliance with a
33greenhouse gas emission limit or emissions reduction measure
34adopted by the state board pursuant to this division.

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

36(m) “Statewide greenhouse gas emissions” means the total
37annual emissions of greenhouse gases in the state, including all
38emissions of greenhouse gases from the generation of electricity
39delivered to and consumed in California, accounting for
40transmission and distribution line losses, whether the electricity
P4    1is generated in state or imported. Statewide emissions shall be
2expressed in tons of carbon dioxide equivalents.

3(n) “Statewide greenhouse gas emissions limit” or “statewide
4emissions limit” means the maximum allowable level of statewide
5greenhouse gas emissions, as determined by the state board
6pursuant to Part 3 (commencing with Section 38550).

7

SEC. 2.  

Section 38550 of the Health and Safety Code is
8amended to read:

9

38550.  

(a) By January 1, 2008, the state board shall, after one
10or more public workshops, with public notice, and an opportunity
11for all interested parties to comment, determine what the statewide
12greenhouse gas emissions level was in 1990, and approve in a
13public hearing, a statewide greenhouse gas emissions limit that is
14equivalent to that level, to be achieved by 2020. In order to ensure
15the most accurate determination feasible, the state board shall
16evaluate the best available scientific, technological, and economic
17information on greenhouse gas emissions to determine the 1990
18 level of greenhouse gas emissions.

begin delete

19(b) (1) Notwithstanding subdivision (a), the state board shall
20approve in a public hearing a statewide greenhouse gas emissions
21limit that is equivalent to 80 percent below the 1990 level, as
22determined pursuant to subdivision (a) or Section 39730, to be
23achieved by 2050 based on the best available scientific,
24technological, and economic assessments. The greenhouse gas
25emissions limit shall include short-lived climate pollutants, as
26defined in Chapter 4.2 (commencing with Section 39730) of Part
272 of Division 26.

end delete
begin insert

28(b) (1) (A) Notwithstanding subdivision (a), the state board
29shall approve in a public hearing, based on the best available
30scientific, technological, and economic assessments, all of the
31following:

end insert
begin insert

32(i) A statewide greenhouse gas emissions limit that is equivalent
33to 40 percent below the 1990 level, as determined pursuant to
34subdivision (a) or Section 39730, to be achieved by 2030.

end insert
begin insert

35(ii) A statewide greenhouse gas emissions limit that is equivalent
36to 80 percent below the 1990 level, as determined pursuant to
37subdivision (a) or Section 39730, to be achieved by 2050.

end insert
begin insert

38(B) For the purposes of this paragraph, a greenhouse gas
39emissions limit shall include short-lived climate pollutants, as
P5    1defined in Chapter 4.2 (commencing with Section 39730) of Part
22 of Division 26.

end insert

3(2) The state board also may approvebegin insert anend insert interim greenhouse
4gas emissions levelbegin delete targetsend deletebegin insert targetend insert to be achieved bybegin delete 2030 andend delete 2040
5consistent with paragraph (1).

6

SEC. 3.  

Section 38551 of the Health and Safety Code is
7amended to read:

8

38551.  

(a) begin deleteThe end deletebegin insertEach of the end insertstatewide greenhouse gas emissions
9begin delete limitend deletebegin insert limitsend insert shall remain in effect unless otherwise amended or
10repealed.

11(b) It is the intent of the Legislature that thebegin delete 2050end delete statewide
12greenhouse gas emissionsbegin delete limitend deletebegin insert limitsend insert established pursuant to
13Section 38550 continue in existence and be used to maintain and
14continue reductions in emissions of greenhousebegin delete gases beyond 2050.end delete
15begin insert gases.end insert

16(c) The state board shall make recommendations to the Governor
17and the Legislature on how to continue reductions of greenhouse
18gas emissions beyond 2050.

19(d) In implementing subdivision (b) of Section 38550, it is the
20intent of the Legislature for the Legislature and appropriate
21agencies to adopt complementary policies that ensure the long-term
22emissions reductions adopted pursuant to subdivision (b) of Section
2338550 advance all of the following:

24(1) Job growth and local economic benefits in California.

25(2) Public health benefits for California residents, particularly
26in disadvantaged communities.

27(3) Innovation in technology and energy, water, and resource
28management practices.

29(4) Regional and international collaboration to adopt similar
30greenhouse gas emissions reduction policies.

31

SEC. 4.  

Section 38561 of the Health and Safety Code is
32amended to read:

33

38561.  

(a) (1) On or before January 1, 2009, the state board
34shall prepare and approve a scoping plan, as that term is understood
35by the state board, for achieving the maximum technologically
36feasible and cost-effective reductions in greenhouse gas emissions
37from sources or categories of sources of greenhouse gases under
38this division.

39(2) The state board shall consult with all state agencies with
40jurisdiction over sources of greenhouse gases, including the Public
P6    1Utilities Commission and the State Energy Resources Conservation
2and Development Commission, on all elements of its plan that
3pertain to energy-related matters including, but not limited to,
4electrical generation, load based-standards or requirements, the
5provision of reliable and affordable electrical service, petroleum
6refining, and statewide fuel supplies to ensure the greenhouse gas
7emissions reduction activities to be adopted and implemented by
8the state board are complementary, nonduplicative, and can be
9implemented in an efficient and cost-effective manner.

10(b) The plan shall identify and make recommendations on direct
11 emissions reduction measures, alternative compliance mechanisms,
12market-based compliance mechanisms, and potential monetary
13and nonmonetary incentives for sources and categories of sources
14that the state board finds are necessary or desirable to facilitate
15the achievement of the maximum feasible and cost-effective
16reductions of greenhouse gas emissions under this division.

17(c) In making the determinations required by subdivision (b),
18the state board shall consider all relevant information pertaining
19to greenhouse gas emissions reduction programs in other states,
20localities, and nations, including the northeastern states of the
21United States, Canada, and the European Union.

22(d) The state board shall evaluate the total potential costs and
23total potential economic and noneconomic benefits of the plan for
24reducing greenhouse gases to California’s economy, environment,
25and public health, using the best available economic models,
26emission estimation techniques, and other scientific methods.

27(e) In developing its plan, the state board shall take into account
28the relative contribution of each source or source category to
29statewide greenhouse gas emissions, and the potential for adverse
30effects on small businesses, and shall recommend a de minimis
31threshold of greenhouse gas emissions below which emissions
32reduction requirements will not apply.

33(f) In developing its plan, the state board shall identify
34opportunities for emissions reduction measures from all verifiable
35and enforceable voluntary actions, including, but not limited to,
36carbon sequestration projects and best management practices.

37(g) The state board shall conduct a series of public workshops
38to give interested parties an opportunity to comment on the plan.
39The state board shall conduct a portion of these workshops in
40regions of the state that have the most significant exposure to air
P7    1pollutants, including, but not limited to, communities with minority
2 populations, communities with low-income populations, or both.

3(h) The state board shall update its plan for achieving the
4maximum technologically feasible and cost-effective reductions
5of greenhouse gas emissions at least once every five years.



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