Amended in Assembly August 19, 2016

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 Bill No. 32

Introduced by Senator Pavley

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

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(Principal coauthor: Assembly Member Eduardo Garcia)

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(Coauthors: Assembly Members begin insert Atkins, end insert Bloom, Chau, Chiu, Chu, Cristina Garcia, begin delete Eduardo Garcia, end delete begin insert Jones-Sawyer, end insert McCarty, Quirk, Rendon, Mark Stone, Thurmond, Ting, Williams, and Wood)

December 1, 2014

begin delete An act to amend Sections 38505, 38550, 38551, and 38561 of the Health and Safety Code, relating to greenhouse gases. end delete begin insert An act to end insert begin insert add Section 38566 to end insert begin insert the Health and Safety Code, relating to greenhouse gases. end insert

LEGISLATIVE COUNSEL’S DIGEST

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

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(1) 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 approve 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.

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This bill would require the state board to ensure that statewide greenhouse gas emissions are reduced to 40% below the 1990 level by 2030.

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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 approve 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.

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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. 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.

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

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This

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begin insert (2) end insert begin insert   end insert begin insert This end insert 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.

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

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

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begin insert SECTION 1. end insert   

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The Legislature finds and declares all of the
following:

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(a) The California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) authorizes the State Air Resources Board to
adopt regulations to achieve the maximum technologically feasible
and cost-effective greenhouse gas emissions reductions.

end insert begin insert

(b) The California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) requires the State Air Resources Board to reduce
statewide emissions of greenhouse gases to at least the 1990
emissions level by 2020 and to maintain and continue reductions
thereafter.

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(c) Continuing to reduce greenhouse gas emissions is critical
for the protection of all areas of the state, but especially for the
state’s most disadvantaged communities, as those communities
are affected first, and, most frequently, by the adverse impacts of
climate change, including an increased frequency of extreme
weather events, such as drought, heat, and flooding. The state’s
most disadvantaged communities also are disproportionately
impacted by the deleterious effects of climate change on public
health.

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(d) The State Air Resources Board shall achieve the state’s more
stringent greenhouse gas emission reductions in a manner that
benefits the state’s most disadvantaged communities and is
transparent and accountable to the public and the Legislature.

end insert

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begin insert SEC. 2. end insert   

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begin insert Section 38566 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

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begin insert 38566. end insert   

In adopting rules and regulations to achieve the
maximum technologically feasible and cost-effective greenhouse
gas emissions reductions authorized by this division, the state
board shall ensure that statewide greenhouse gas emissions are
reduced to at least 40 percent below the statewide greenhouse gas
emissions limit no later than December 31, 2030.

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begin insert SEC. 3. end insert   

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This act shall become operative only if Assembly Bill
197 of the 2015-16 Regular Session is enacted and becomes
effective on or before January 1, 2017.

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SECTION 1.  

It is the intent of the Legislature that all relevant
provisions of the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code) apply to the sections of this act amending
sections within the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code).

SEC. 2.  

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. 3.  

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, based on the best available scientific,
technological, and economic assessments, 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.

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

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

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

SEC. 4.  

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

38551.  

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

(b) It is the intent of the Legislature that the statewide
greenhouse gas emissions limits established pursuant to Section
38550 continue in existence and be used to maintain and continue
reductions in emissions of greenhouse gases.

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

SEC. 5.  

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.

SEC. 6.  

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

SEC. 7.  

This act shall become operative only if Assembly Bill
197 of the 2015-16 Regular Session is enacted and becomes
effective on or before January 1, 2017.

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