Amended in Assembly June 30, 2016

Amended in Assembly June 10, 2016

Amended in Assembly September 10, 2015

Amended in Assembly September 4, 2015

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, Chau, Chiu, Chu, Cristina Garcia, Eduardo Garcia, McCarty, Quirk, Rendon, Mark Stone, Thurmond, Ting, Williams, and Wood)

December 1, 2014

An act to amend Sections 38505, 38550, 38551, and 38561 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 tobegin delete adoptend deletebegin insert approveend insert 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 40% below the 1990 level to be achieved by 2030.begin insert The bill would also require the state board, on or before January 1, 2018, and each year thereafter, to prepare and submit to the Joint Legislative Budget Committee and appropriate policy committees a report relating to the greenhouse gas emissions reductions achieved toward those limits. end insert

This bill also would make conforming changes and provide that its provisions are severable.

begin insert

This bill would become operative only if AB 197 of the 2015-16 Regular Session is enacted and becomes effective on or before January 1, 2017.

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    1


It is the intent of the Legislature that all relevant
2provisions of the California Global Warming Solutions Act of
32006 (Division 25.5 (commencing with Section 38500) of the
4Health and Safety Code) apply to the sections of this act amending
5sections within the California Global Warming Solutions Act of
62006 (Division 25.5 (commencing with Section 38500) of the
7Health and Safety Code).


SEC. 2.  

Section 38505 of the Health and Safety Code is
9amended to read:



For purposes of this division, the following terms have
11the following meanings:

12(a) “Allowance” means an authorization to emit, during a
13specified year, up to one ton of carbon dioxide equivalent.

14(b) “Alternative compliance mechanism” means an action
15undertaken by a greenhouse gas emission source that achieves the
16equivalent reduction of greenhouse gas emissions over the same
17time period as a direct emission reduction, and that is approved
P3    1by the state board. “Alternative compliance mechanism” includes,
2but is not limited to, a flexible compliance schedule, alternative
3control technology, a process change, or a product substitution.

4(c) “Carbon dioxide equivalent” means the amount of carbon
5dioxide by weight that would produce the same global warming
6impact as a given weight of another greenhouse gas, based on the
7best available science, including from the Intergovernmental Panel
8on Climate Change.

9(d) “Cost-effective” or “cost-effectiveness” means the cost per
10unit of reduced emissions of greenhouse gases adjusted for its
11global warming potential.

12(e) “Direct emission reduction” means a greenhouse gas
13emission reduction action made by a greenhouse gas emission
14source at that source.

15(f) “Emissions reduction measure” means programs, measures,
16standards, and alternative compliance mechanisms authorized
17pursuant to this division, applicable to sources or categories of
18sources, that are designed to reduce emissions of greenhouse gases.

19(g) “Greenhouse gas” or “greenhouse gases” includes all of the
20following gases:

21(1) Carbon dioxide.

22(2) Methane.

23(3) Nitrous oxide.

24(4) Hydrofluorocarbons.

25(5) Perfluorocarbons.

26(6) Sulfur hexafluoride.

27(7) Nitrogen trifluoride.

28(h) “Greenhouse gas emissions limit” means an authorization,
29during a specified year, to emit up to a level of greenhouse gases
30specified by the state board, expressed in tons of carbon dioxide

32(i) “Greenhouse gas emission source” or “source” means any
33source, or category of sources, of greenhouse gas emissions whose
34emissions are at a level of significance, as determined by the state
35board, that its participation in the program established under this
36division will enable the state board to effectively reduce greenhouse
37gas emissions and monitor compliance with the statewide
38greenhouse gas emissions limit.

P4    1(j) “Leakage” means a reduction in emissions of greenhouse
2gases within the state that is offset by an increase in emissions of
3greenhouse gases outside the state.

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

6(1) A system of market-based declining annual aggregate
7emissions limitations for sources or categories of sources that emit
8greenhouse gases.

9(2) Greenhouse gas emissions exchanges, banking, credits, and
10other transactions, governed by rules and protocols established by
11the state board, that result in the same greenhouse gas emission
12reduction, over the same time period, as direct compliance with a
13greenhouse gas emission limit or emissions reduction measure
14adopted by the state board pursuant to this division.

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

16(m) “Statewide greenhouse gas emissions” means the total
17annual emissions of greenhouse gases in the state, including all
18emissions of greenhouse gases from the generation of electricity
19delivered to and consumed in California, accounting for
20transmission and distribution line losses, whether the electricity
21is generated in state or imported. Statewide emissions shall be
22expressed in tons of carbon dioxide equivalents.

23(n) “Statewide greenhouse gas emissions limit” or “statewide
24emissions limit” means the maximum allowable level of statewide
25greenhouse gas emissions, as determined by the state board
26pursuant to Part 3 (commencing with Section 38550).


SEC. 3.  

Section 38550 of the Health and Safety Code is
28amended to read:



(a) By January 1, 2008, the state board shall, after one
30or more public workshops, with public notice, and an opportunity
31for all interested parties to comment, determine what the statewide
32greenhouse gas emissions level was in 1990, and approve in a
33public hearing, a statewide greenhouse gas emissions limit that is
34equivalent to that level, to be achieved by 2020. In order to ensure
35the most accurate determination feasible, the state board shall
36evaluate the best available scientific, technological, and economic
37information on greenhouse gas emissions to determine the 1990
38level of greenhouse gas emissions.

39(b) (1) Notwithstanding subdivision (a), the state board shall
40approve in a public hearing, based on the best available scientific,
P5    1technological, and economic assessments, a statewide greenhouse
2gas emissions limit that is equivalent to 40 percent below the 1990
3level, as determined pursuant to subdivision (a) or Section 39730,
4to be achieved by 2030.

5(2) For the purposes of this subdivision, a greenhouse gas
6emissions limit shall include short-lived climate pollutants, as
7defined in Section 39730.

8(c) In furtherance of subdivision (b), the state board shall
9consider historic efforts to reduce greenhouse gas emissions and
10objectively seek and account for cost-effective actions to reduce
11greenhouse gas emissions across all sectors.

begin insert

(d) On or before January 1, 2018, and each year thereafter, the
13state board shall prepare and submit to the Joint Legislative Budget
14Committee and appropriate policy committees a report detailing
15the amounts, sources, and locations of greenhouse gas emissions
16reductions achieved toward the statewide emissions limits adopted
17pursuant to this section.

end insert

SEC. 4.  

Section 38551 of the Health and Safety Code is
19amended to read:



(a) Each of the statewide greenhouse gas emissions
21limits shall remain in effect unless otherwise amended or repealed.

22(b) It is the intent of the Legislature that the statewide
23greenhouse gas emissions limits established pursuant to Section
2438550 continue in existence and be used to maintain and continue
25reductions in emissions of greenhouse gases.

26(c) The state board shall make recommendations to the Governor
27and the Legislature on how to continue reductions of greenhouse
28gas emissions beyond 2030.


SEC. 5.  

Section 38561 of the Health and Safety Code is
30amended to read:



(a) (1) On or before January 1, 2009, the state board
32shall prepare and approve a scoping plan, as that term is understood
33by the state board, for achieving the maximum technologically
34feasible and cost-effective reductions in greenhouse gas emissions
35from sources or categories of sources of greenhouse gases under
36this division.

37(2) The state board shall consult with all state agencies with
38jurisdiction over sources of greenhouse gases, including the Public
39Utilities Commission and the State Energy Resources Conservation
40and Development Commission, on all elements of its plan that
P6    1pertain to energy-related matters including, but not limited to,
2electrical generation, load-based standards or requirements, the
3provision of reliable and affordable electrical service, petroleum
4refining, and statewide fuel supplies to ensure the greenhouse gas
5emissions reduction activities to be adopted and implemented by
6the state board are complementary, nonduplicative, and can be
7implemented in an efficient and cost-effective manner.

8(b) The plan shall identify and make recommendations on direct
9emissions reduction measures, alternative compliance mechanisms,
10market-based compliance mechanisms, and potential monetary
11and nonmonetary incentives for sources and categories of sources
12that the state board finds are necessary or desirable to facilitate
13the achievement of the maximum feasible and cost-effective
14reductions of greenhouse gas emissions under this division.

15(c) In making the determinations required by subdivision (b),
16the state board shall consider all relevant information pertaining
17to greenhouse gas emissions reduction programs in other states,
18localities, and nations, including the northeastern states of the
19United States, Canada, and the European Union.

20(d) The state board shall evaluate the total potential costs and
21total potential economic and noneconomic benefits of the plan for
22reducing greenhouse gases to California’s economy, environment,
23and public health, using the best available economic models,
24emission estimation techniques, and other scientific methods.

25(e) In developing its plan, the state board shall take into account
26the relative contribution of each source or source category to
27statewide greenhouse gas emissions, and the potential for adverse
28effects on small businesses, and shall recommend a de minimis
29threshold of greenhouse gas emissions below which emissions
30reduction requirements will not apply.

31(f) In developing its plan, the state board shall identify
32opportunities for emissions reduction measures from all verifiable
33and enforceable voluntary actions, including, but not limited to,
34carbon sequestration projects and best management practices.

35(g) The state board shall conduct a series of public workshops
36to give interested parties an opportunity to comment on the plan.
37The state board shall conduct a portion of these workshops in
38regions of the state that have the most significant exposure to air
39pollutants, including, but not limited to, communities with minority
40populations, communities with low-income populations, or both.

P7    1(h) The state board shall update its plan for achieving the
2maximum technologically feasible and cost-effective reductions
3of greenhouse gas emissions at least once every five years.


SEC. 6.  

The provisions of this act are severable. If any
5provision of this act or its application is held invalid, that invalidity
6shall not affect other provisions or applications that can be given
7effect without the invalid provision or application.

8begin insert

begin insertSEC. 7.end insert  

end insert

begin insertThis act shall become operative only if Assembly Bill
9197 of the 2015-16 Regular Session is enacted and becomes
10effective on or before January 1, 2017.end insert