BILL NUMBER: SB 32	AMENDED
	BILL TEXT

	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

INTRODUCED BY   Senator Pavley
    (   Principal coauthor:   Assembly Member
  Eduardo Garcia   ) 
   (Coauthors: Senators Allen, Beall, Block, De León, Hancock, Hill,
Jackson, Leno, Liu, McGuire, Mitchell, Monning, Wieckowski, and Wolk)

   (Coauthors: Assembly Members  Atkins,  Bloom, Chau, Chiu,
Chu, Cristina Garcia,  Eduardo Garcia,  
Jones-Sawyer,  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.
  An act to   add Section 38566 to  
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. 
   (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.  
   This bill would require the state board to ensure that statewide
greenhouse gas emissions are reduced to 40% below the 1990 level by
2030.  
   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.  
   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. 

   This bill also would make conforming changes and provide that its
provisions are severable.  
    This 
    (2)     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.
   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.    The Legislature finds and declares all
of the following:  
   (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.  
   (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.  
   (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.  
   (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. 
   SEC. 2.    Section 38566 is added to the  
Health and Safety Code   , to read:  
   38566.  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. 
   SEC. 3.    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.  
  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.