BILL NUMBER: SB 32	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2015
	AMENDED IN SENATE  MAY 5, 2015
	AMENDED IN SENATE  MARCH 16, 2015

INTRODUCED BY   Senator Pavley
   (Coauthors: Senators Allen, Beall, Block, De León, Hancock, Hill,
Jackson, Leno, Liu, McGuire,  Mitchell,  Monning, 
Wieckowski,  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 approve  a
 statewide greenhouse gas emissions  limit that is
equivalent to   limits that are the equivalent to 40%
below the 1990 level to be achieved by 2030 and  80% below the
1990 level to be achieved by 2050, as specified. The bill would
authorize the state board to adopt  an  interim greenhouse
gas emissions level  targets   target  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. 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:

  SECTION 1.  Section 38505 of the Health and Safety Code is amended
to read:
   38505.  For purposes of this division, the following terms have
the following meanings:
   (a) "Allowance" means an authorization to emit, during a specified
year, up to one ton of carbon dioxide equivalent.
   (b) "Alternative compliance mechanism" means an action undertaken
by a greenhouse gas emission source that achieves the equivalent
reduction of greenhouse gas emissions over the same time period as a
direct emission reduction, and that is approved by the state board.
"Alternative compliance mechanism" includes, but is not limited to, a
flexible compliance schedule, alternative control technology, a
process change, or a product substitution.
   (c) "Carbon dioxide equivalent" means the amount of carbon dioxide
by weight that would produce the same global warming impact as a
given weight of another greenhouse gas, based on the best available
science, including from the Intergovernmental Panel on Climate
Change.
   (d) "Cost-effective" or "cost-effectiveness" means the cost per
unit of reduced emissions of greenhouse gases adjusted for its global
warming potential.
   (e) "Direct emission reduction" means a greenhouse gas emission
reduction action made by a greenhouse gas emission source at that
source.
   (f) "Emissions reduction measure" means programs, measures,
standards, and alternative compliance mechanisms authorized pursuant
to this division, applicable to sources or categories of sources,
that are designed to reduce emissions of greenhouse gases.
   (g) "Greenhouse gas" or "greenhouse gases" includes all of the
following gases:
   (1) Carbon dioxide.
   (2) Methane.
   (3) Nitrous oxide.
   (4) Hydrofluorocarbons.
   (5) Perfluorocarbons.
   (6) Sulfur hexafluoride.
   (7) Nitrogen trifluoride.
   (h) "Greenhouse gas emissions limit" means an authorization,
during a specified year, to emit up to a level of greenhouse gases
specified by the state board, expressed in tons of carbon dioxide
equivalents.
   (i) "Greenhouse gas emission source" or "source" means any source,
or category of sources, of greenhouse gas emissions whose emissions
are at a level of significance, as determined by the state board,
that its participation in the program established under this division
will enable the state board to effectively reduce greenhouse gas
emissions and monitor compliance with the statewide greenhouse gas
emissions limit.
   (j) "Leakage" means a reduction in emissions of greenhouse gases
within the state that is offset by an increase in emissions of
greenhouse gases outside the state.
   (k) "Market-based compliance mechanism" means either of the
following:
   (1) A system of market-based declining annual aggregate emissions
limitations for sources or categories of sources that emit greenhouse
gases.
   (2) Greenhouse gas emissions exchanges, banking, credits, and
other transactions, governed by rules and protocols established by
the state board, that result in the same greenhouse gas emission
reduction, over the same time period, as direct compliance with a
greenhouse gas emission limit or emissions reduction measure adopted
by the state board pursuant to this division.
   (l) "State board" means the State Air Resources Board.
   (m) "Statewide greenhouse gas emissions" means the total annual
emissions of greenhouse gases in the state, including all emissions
of greenhouse gases from the generation of electricity delivered to
and consumed in California, accounting for transmission and
distribution line losses, whether the electricity is generated in
state or imported. Statewide emissions shall be expressed in tons of
carbon dioxide equivalents.
   (n) "Statewide greenhouse gas emissions limit" or "statewide
emissions limit" means the maximum allowable level of statewide
greenhouse gas emissions, as determined by the state board pursuant
to Part 3 (commencing with Section 38550).
  SEC. 2.  Section 38550 of the Health and Safety Code is amended to
read:
   38550.  (a) By January 1, 2008, the state board shall, after one
or more public workshops, with public notice, and an opportunity for
all interested parties to comment, determine what the statewide
greenhouse gas emissions level was in 1990, and approve in a public
hearing, a statewide greenhouse gas emissions limit that is
equivalent to that level, to be achieved by 2020. In order to ensure
the most accurate determination feasible, the state board shall
evaluate the best available scientific, technological, and economic
information on greenhouse gas emissions to determine the 1990 level
of greenhouse gas emissions. 
   (b) (1) Notwithstanding subdivision (a), the state board shall
approve in a public hearing a statewide greenhouse gas emissions
limit that is equivalent to 80 percent below the 1990 level, as
determined pursuant to subdivision (a) or Section 39730, to be
achieved by 2050 based on the best available scientific,
technological, and economic assessments. The greenhouse gas emissions
limit shall include short-lived climate pollutants, as defined in
Chapter 4.2 (commencing with Section 39730) of Part 2 of Division 26.
 
   (b) (1) (A) Notwithstanding subdivision (a), the state board shall
approve in a public hearing, based on the best available scientific,
technological, and economic assessments, all of the following: 

   (i) A statewide greenhouse gas emissions limit that is equivalent
to 40 percent below the 1990 level, as determined pursuant to
subdivision (a) or Section 39730, to be achieved by 2030.  
   (ii) A statewide greenhouse gas emissions limit that is equivalent
to 80 percent below the 1990 level, as determined pursuant to
subdivision (a) or Section 39730, to be achieved by 2050.  
   (B) For the purposes of this paragraph, a greenhouse gas emissions
limit shall include short-lived climate pollutants, as defined in
Chapter 4.2 (commencing with Section 39730) of Part 2 of Division 26.

   (2) The state board also may approve  an  interim
greenhouse gas emissions level  targets   target
 to be achieved by 2030 and  2040 consistent
with paragraph (1).
  SEC. 3.  Section 38551 of the Health and Safety Code is amended to
read:
   38551.  (a)  The   Each of the 
statewide greenhouse gas emissions  limit  
limits  shall remain in effect unless otherwise amended or
repealed.
   (b) It is the intent of the Legislature that the  2050
 statewide greenhouse gas emissions  limit 
 limits  established pursuant to Section 38550 continue in
existence and be used to maintain and continue reductions in
emissions of greenhouse  gases beyond 2050.  
gases. 
   (c) The state board shall make recommendations to the Governor and
the Legislature on how to continue reductions of greenhouse gas
emissions beyond 2050.
   (d) In implementing subdivision (b) of Section 38550, it is the
intent of the Legislature for the Legislature and appropriate
agencies to adopt complementary policies that ensure the long-term
emissions reductions adopted pursuant to subdivision (b) of Section
38550 advance all of the following:
   (1) Job growth and local economic benefits in California.
   (2) Public health benefits for California residents, particularly
in disadvantaged communities.
   (3) Innovation in technology and energy, water, and resource
management practices.
   (4) Regional and international collaboration to adopt similar
greenhouse gas emissions reduction policies.
  SEC. 4.  Section 38561 of the Health and Safety Code is amended to
read:
   38561.  (a) (1) On or before January 1, 2009, the state board
shall prepare and approve a scoping plan, as that term is understood
by the state board, for achieving the maximum technologically
feasible and cost-effective reductions in greenhouse gas emissions
from sources or categories of sources of greenhouse gases under this
division.
   (2) The state board shall consult with all state agencies with
jurisdiction over sources of greenhouse gases, including the Public
Utilities Commission and the State Energy Resources Conservation and
Development Commission, on all elements of its plan that pertain to
energy-related matters including, but not limited to, electrical
generation, load based-standards or requirements, the provision of
reliable and affordable electrical service, petroleum refining, and
statewide fuel supplies to ensure the greenhouse gas emissions
reduction activities to be adopted and implemented by the state board
are complementary, nonduplicative, and can be implemented in an
efficient and cost-effective manner.
   (b) The plan shall identify and make recommendations on direct
emissions reduction measures, alternative compliance mechanisms,
market-based compliance mechanisms, and potential monetary and
nonmonetary incentives for sources and categories of sources that the
state board finds are necessary or desirable to facilitate the
achievement of the maximum feasible and cost-effective reductions of
greenhouse gas emissions under this division.
   (c) In making the determinations required by subdivision (b), the
state board shall consider all relevant information pertaining to
greenhouse gas emissions reduction programs in other states,
localities, and nations, including the northeastern states of the
United States, Canada, and the European Union.
   (d) The state board shall evaluate the total potential costs and
total potential economic and noneconomic benefits of the plan for
reducing greenhouse gases to California's economy, environment, and
public health, using the best available economic models, emission
estimation techniques, and other scientific methods.
   (e) In developing its plan, the state board shall take into
account the relative contribution of each source or source category
to statewide greenhouse gas emissions, and the potential for adverse
effects on small businesses, and shall recommend a de minimis
threshold of greenhouse gas emissions below which emissions reduction
requirements will not apply.
   (f) In developing its plan, the state board shall identify
opportunities for emissions reduction measures from all verifiable
and enforceable voluntary actions, including, but not limited to,
carbon sequestration projects and best management practices.
   (g) The state board shall conduct a series of public workshops to
give interested parties an opportunity to comment on the plan. The
state board shall conduct a portion of these workshops in regions of
the state that have the most significant exposure to air pollutants,
including, but not limited to, communities with minority populations,
communities with low-income populations, or both.
   (h) The state board shall update its plan for achieving the
maximum technologically feasible and cost-effective reductions of
greenhouse gas emissions at least once every five years.