Amended in Assembly August 31, 2015

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, Mitchell, Monning, Wieckowski, and Wolk)

(Coauthors: Assembly Members Bloom, Cristina Garcia,begin insert Quirk,end insert Rendon,begin delete and Mark Stone)end deletebegin insert Mark Stone, Thurmond, Ting, Williams, and Wood)end insert

December 1, 2014


An act tobegin insert add Chapter 6 (commencing with Section 12897) to Part 2.5 of Division 3 of Title 2 of the Government Code, and toend insert 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 ofbegin delete 2006: emissions limit.end deletebegin insert 2006.end insert

begin delete

The

end delete

begin insert(1)end insertbegin insertend insertbegin insertTheend insert 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 statewide greenhouse gas emissions 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 tobegin delete adoptend deletebegin insert approveend insert an interim greenhouse gas emissions level target to be achieved by 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 delete The bill would make conforming changes.end delete

begin insert

(2) The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.

end insert
begin insert

This bill would prohibit the state board from taking any action to implement the next update of the scoping plan until a draft of, and the final version of, the next update to the scoping plan have been submitted to the Joint Legislative Budget Committee and the appropriate policy committees of the Legislature, at least one year and at least 60 days, respectively, before adoption of the updated scoping plan and until the state board has conducted specified evaluations relating to reducing greenhouse gas emissions. The bill would require the Legislature to hold at least one oversight hearing to review that draft and one oversight hearing to review the final version. The bill would require the state board, on or before January 1, 2017, and each year thereafter, to prepare and submit to the Joint Legislative Budget Committee and appropriate policy committees a report relating to achieving the greenhouse gas emissions limits required by the California Global Warming Solutions Act of 2006.

end insert
begin insert

(3) This bill would also 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 insertChapter 6 (commencing with Section 12897) is
2added to Part 2.5 of Division 3 of Title 2 of the end insert
begin insertGovernment Codeend insertbegin insert,
3to read:end insert

begin insert

P3    1 

2Chapter  begin insert6.end insert Legislative Accountability and Oversight
3of California Greenhouse Gas Emissions Reduction Policies
4

 

5

begin insert12897.end insert  

(a) The Legislature finds and declares that developing
6regulations and policies by the State Air Resources Board or other
7state agencies for purposes of implementing Division 25.5
8(commencing with Section 38500) of the Health and Safety Code
9should be conducted transparently and in a timely manner to afford
10the Legislature the opportunity to shape and oversee the
11implementation of that division on an ongoing basis.

12(b) The purpose of this section is to establish new legislative
13oversight and accountability over any regulations and policies
14undertaken to implement Division 25.5 (commencing with Section
1538500) of the Health and Safety Code.

16(c) The State Air Resources Board shall not take any action to
17implement the next update of the scoping plan described in Section
1838561 of the Health and Safety Code unless all of the following
19have occurred:

20(1) The State Air Resources Board has conducted, with input
21from an independent advisory committee, an evaluation of both of
22the following:

23(A) The current and projected actions other jurisdictions within
24the United States and around the world are taking to reduce
25greenhouse gas emissions and how those actions compare to and
26complement California’s efforts.

27(B) The cost effectiveness of the various emissions reduction
28strategies the State Air Resources Board has undertaken to achieve
29the 2020 statewide greenhouse gas emissions limit pursuant to
30Section 38550 of the Health and Safety Code, which may consider
31the marginal costs of the strategies and associated benefits to the
32health, safety, and welfare of state residents, worker safety, quality
33of life in the state, and the state’s environment.

34(2) A draft of the next update to the scoping plan has been
35submitted to the Joint Legislative Budget Committee and the
36appropriate policy committees of the Legislature at least one year
37before adoption of the updated scoping plan.

38(3) The final version of the update to the scoping plan has been
39submitted to the Joint Legislative Budget Committee and the
P4    1appropriate policy committees of the Legislature at least 60 days
2before adoption of the updated scoping plan.

3(d) The Legislature shall hold at least one oversight hearing to
4review the draft of the next update to the scoping plan and at least
5one oversight hearing to review the final version of the update to
6the scoping plan before adoption.

7(e) After holding the oversight hearings required pursuant to
8subdivision (d), the Legislature may act to modify, reject, or delay
9some or all of the scoping plan before its adoption.

10(f) On or before January 1, 2017, and each year thereafter, the
11State Air Resources Board shall prepare and submit to the Joint
12Legislative Budget Committee and appropriate policy committees
13a report that contains both of the following:

14(1) A list of regulatory policies that have been adopted and
15implemented by a state agency in furtherance of achieving the
16greenhouse gas emissions limits adopted by the State Air Resources
17Board pursuant to Division 25.5 (commencing with Section 38500)
18of the Health and Safety Code.

19(2) The amounts, sources, and locations of greenhouse gas
20emissions reductions achieved toward the statewide emissions
21limit, as defined in Section 38505 of the Health and Safety Code.

22(g) The State Air Resources Board may include relevant reports
23required pursuant to Section 12894 within the report required
24pursuant to subdivision (f).

end insert
25

begin deleteSECTION 1.end delete
26begin insertSEC. 2.end insert  

Section 38505 of the Health and Safety Code is
27amended to read:

28

38505.  

For purposes of this division, the following terms have
29the following meanings:

30(a) “Allowance” means an authorization to emit, during a
31specified year, up to one ton of carbon dioxide equivalent.

32(b) “Alternative compliance mechanism” means an action
33undertaken by a greenhouse gas emission source that achieves the
34equivalent reduction of greenhouse gas emissions over the same
35time period as a direct emission reduction, and that is approved
36by the state board. “Alternative compliance mechanism” includes,
37but is not limited to, a flexible compliance schedule, alternative
38control technology, a process change, or a product substitution.

39(c) “Carbon dioxide equivalent” means the amount of carbon
40dioxide by weight that would produce the same global warming
P5    1impact as a given weight of another greenhouse gas, based on the
2best available science, including from the Intergovernmental Panel
3on Climate Change.

4(d) “Cost-effective” or “cost-effectiveness” means the cost per
5unit of reduced emissions of greenhouse gases adjusted for its
6global warming potential.

7(e) “Direct emission reduction” means a greenhouse gas
8emission reduction action made by a greenhouse gas emission
9source at that source.

10(f) “Emissions reduction measure” means programs, measures,
11standards, and alternative compliance mechanisms authorized
12pursuant to this division, applicable to sources or categories of
13 sources, that are designed to reduce emissions of greenhouse gases.

14(g) “Greenhouse gas” or “greenhouse gases” includes all of the
15following gases:

16(1) Carbon dioxide.

17(2) Methane.

18(3) Nitrous oxide.

19(4) Hydrofluorocarbons.

20(5) Perfluorocarbons.

21(6) Sulfur hexafluoride.

22(7) Nitrogen trifluoride.

23(h) “Greenhouse gas emissions limit” means an authorization,
24during a specified year, to emit up to a level of greenhouse gases
25specified by the state board, expressed in tons of carbon dioxide
26equivalents.

27(i) “Greenhouse gas emission source” or “source” means any
28source, or category of sources, of greenhouse gas emissions whose
29emissions are at a level of significance, as determined by the state
30board, that its participation in the program established under this
31division will enable the state board to effectively reduce greenhouse
32gas emissions and monitor compliance with the statewide
33greenhouse gas emissions limit.

34(j) “Leakage” means a reduction in emissions of greenhouse
35gases within the state that is offset by an increase in emissions of
36greenhouse gases outside the state.

37(k) “Market-based compliance mechanism” means either of the
38following:

P6    1(1) A system of market-based declining annual aggregate
2emissions limitations for sources or categories of sources that emit
3greenhouse gases.

4(2) Greenhouse gas emissions exchanges, banking, credits, and
5other transactions, governed by rules and protocols established by
6the state board, that result in the same greenhouse gas emission
7reduction, over the same time period, as direct compliance with a
8greenhouse gas emission limit or emissions reduction measure
9adopted by the state board pursuant to this division.

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

11(m) “Statewide greenhouse gas emissions” means the total
12annual emissions of greenhouse gases in the state, including all
13emissions of greenhouse gases from the generation of electricity
14delivered to and consumed in California, accounting for
15transmission and distribution line losses, whether the electricity
16is generated in state or imported. Statewide emissions shall be
17expressed in tons of carbon dioxide equivalents.

18(n) “Statewide greenhouse gas emissions limit” or “statewide
19emissions limit” means the maximum allowable level of statewide
20greenhouse gas emissions, as determined by the state board
21pursuant to Part 3 (commencing with Section 38550).

22

begin deleteSEC. 2.end delete
23begin insertSEC. 3.end insert  

Section 38550 of the Health and Safety Code is
24amended to read:

25

38550.  

(a) By January 1, 2008, the state board shall, after one
26or more public workshops, with public notice, and an opportunity
27for all interested parties to comment, determine what the statewide
28greenhouse gas emissions level was in 1990, and approve in a
29public hearing, a statewide greenhouse gas emissions limit that is
30equivalent to that level, to be achieved by 2020. In order to ensure
31the most accurate determination feasible, the state board shall
32evaluate the best available scientific, technological, and economic
33information on greenhouse gas emissions to determine the 1990
34 level of greenhouse gas emissions.

35(b) (1) (A) Notwithstanding subdivision (a), the state board
36shall approve in a public hearing, based on the best available
37scientific, technological, and economic assessments, all of the
38following:

P7    1(i) A statewide greenhouse gas emissions limit that is equivalent
2to 40 percent below the 1990 level, as determined pursuant to
3subdivision (a) or Section 39730, to be achieved by 2030.

4(ii) A statewide greenhouse gas emissions limit that is equivalent
5to 80 percent below the 1990 level, as determined pursuant to
6subdivision (a) or Section 39730, to be achieved by 2050.

7(B) For the purposes of this paragraph, a greenhouse gas
8emissions limit shall include short-lived climate pollutants, as
9defined in Chapter 4.2 (commencing with Section 39730) of Part
102 of Division 26.

11(2) The state board also may approve an interim greenhouse
12gas emissions level target to be achieved by 2040 consistent with
13paragraph (1).

begin insert

14(c) In furtherance of subdivision (b), the state board shall
15consider historic efforts to reduce greenhouse gas emissions and
16objectively seek, and account for, cost-effective actions to reduce
17greenhouse gas emissions across all sectors.

end insert
18

begin deleteSEC. 3.end delete
19begin insertSEC. 4.end insert  

Section 38551 of the Health and Safety Code is
20amended to read:

21

38551.  

(a) Each of the statewide greenhouse gas emissions
22limits shall remain in effect unless otherwise amended or repealed.

23(b) It is the intent of the Legislature that the statewide
24greenhouse gas emissions limits established pursuant to Section
2538550 continue in existence and be used to maintain and continue
26reductions in emissions of greenhouse gases.

27(c) The state board shall make recommendations to the Governor
28and the Legislature on how to continue reductions of greenhouse
29gas emissions beyond 2050.

30(d) In implementing subdivision (b) of Section 38550, it is the
31intent of the Legislature for the Legislature and appropriate
32agencies to adopt complementary policies that ensure the long-term
33emissions reductions adopted pursuant to subdivision (b) of Section
3438550 advance all of the following:

35(1) Job growth and local economic benefits in California.

36(2) Public health benefits for California residents, particularly
37in disadvantaged communities.

38(3) Innovation in technology and energy, water, and resource
39management practices.

P8    1(4) Regional and international collaboration to adopt similar
2greenhouse gas emissions reduction policies.

3

begin deleteSEC. 4.end delete
4begin insertSEC. 5.end insert  

Section 38561 of the Health and Safety Code is
5amended to read:

6

38561.  

(a) (1) On or before January 1, 2009, the state board
7 shall prepare and approve a scoping plan, as that term is understood
8by the state board, for achieving the maximum technologically
9feasible and cost-effective reductions in greenhouse gas emissions
10from sources or categories of sources of greenhouse gases under
11this division.

12(2) The state board shall consult with all state agencies with
13jurisdiction over sources of greenhouse gases, including the Public
14Utilities Commission and the State Energy Resources Conservation
15and Development Commission, on all elements of its plan that
16pertain to energy-related matters including, but not limited to,
17electrical generation,begin delete load based-standardsend deletebegin insert load-based standardsend insert
18 or requirements, the provision of reliable and affordable electrical
19service, petroleum refining, and statewide fuel supplies to ensure
20the greenhouse gas emissions reduction activities to be adopted
21and implemented by the state board are complementary,
22nonduplicative, and can be implemented in an efficient and
23cost-effective manner.

24(b) The plan shall identify and make recommendations on direct
25 emissions reduction measures, alternative compliance mechanisms,
26market-based compliance mechanisms, and potential monetary
27and nonmonetary incentives for sources and categories of sources
28that the state board finds are necessary or desirable to facilitate
29the achievement of the maximum feasible and cost-effective
30reductions of greenhouse gas emissions under this division.

31(c) In making the determinations required by subdivision (b),
32the state board shall consider all relevant information pertaining
33to greenhouse gas emissions reduction programs in other states,
34localities, and nations, including the northeastern states of the
35United States, Canada, and the European Union.

36(d) The state board shall evaluate the total potential costs and
37total potential economic and noneconomic benefits of the plan for
38reducing greenhouse gases to California’s economy, environment,
39and public health, using the best available economic models,
40emission estimation techniques, and other scientific methods.

P9    1(e) In developing its plan, the state board shall take into account
2the relative contribution of each source or source category to
3statewide greenhouse gas emissions, and the potential for adverse
4effects on small businesses, and shall recommend a de minimis
5threshold of greenhouse gas emissions below which emissions
6reduction requirements will not apply.

7(f) In developing its plan, the state board shall identify
8opportunities for emissions reduction measures from all verifiable
9and enforceable voluntary actions, including, but not limited to,
10carbon sequestration projects and best management practices.

11(g) The state board shall conduct a series of public workshops
12to give interested parties an opportunity to comment on the plan.
13The state board shall conduct a portion of these workshops in
14regions of the state that have the most significant exposure to air
15pollutants, including, but not limited to, communities with minority
16 populations, communities with low-income populations, or both.

17(h) The state board shall update its plan for achieving the
18maximum technologically feasible and cost-effective reductions
19of greenhouse gas emissions at least once every fivebegin delete years.end deletebegin insert years
20in accordance with Chapter 6 (commencing with Section 12897)
21of Part 2.5 of Division 3 of Title 2 of the Government Code.end insert



O

    95