BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 31|
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THIRD READING
Bill No: SB 31
Author: Pavley (D), et al
Amended: 1/25/10
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 5-2, 4/20/09
AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley
NOES: Runner, Ashburn
SENATE ENERGY, U. & C. COMMITTEE : 6-3, 4/27/09
AYES: Padilla, Corbett, Kehoe, Lowenthal, Simitian,
Wiggins
NOES: Benoit, Cox, Strickland
NO VOTE RECORDED: Calderon, Wright
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/26/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Wolk, Yee
NOES: Cox, Denham, Runner, Walters, Wyland
SUBJECT : California Global Warming Solutions Act of
2006: revenue
allocations
SOURCE : Environmental Entrepreneurs
Natural Resources Defense Council
DIGEST : This bill provides that revenues generated from
fees to fund expenditures beyond the administrative costs
of implementing the Global Warming Solutions Act (GWSA),
CONTINUED
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revenues generated as a result of the implementation of
market-based compliance mechanisms, or revenues generated
from compliance mechanism shall be appropriated by the
Legislature in furtherance of the GWSA for purposes
determined by the Legislature.
Senate Floor Amendments of 1/25/10 (1) strike the
definition changes and add those same changes to current
law (since Section 38505 of the Health and Safety Code was
amended in 2009), (2) strike provisions related to
expenditure of revenues collected for compliance
mechanisms, and
(3) require revenues generated from fees to fund
expenditures beyond administrative costs of implementing
the GWSA, revenues generated from implementing market-based
compliance mechanisms, or revenues generated from
compliance mechanisms, to be appropriated by the
Legislature in furtherance of the GWSA for purposes
determined by the Legislature.
ANALYSIS :
Existing law:
1. Requires the Air Resources Board (ARB) to determine the
1990 statewide greenhouse gas (GHG) emissions level and
approve a statewide GHG emissions limit that is
equivalent to that level, to be achieved by 2020. ARB
must adopt rules and regulations to achieve GHG emission
reductions from sources or categories of sources,
subject to specified requirements, pursuant to the
California Global Warming Solutions Act [AB 32 (Nunez),
Chapter 488, Statutes of 2006].
2. Authorizes ARB to adopt regulations, by January 1, 2011,
to establish a system of market-based declining annual
aggregate emissions limits for sources or categories of
sources of GHG emissions. Such regulations must ensure
that all market-based reductions are real, permanent,
quantifiable, verifiable, and enforceable by the state
(Section 38562 (d) (1) of the Health and Safety Code).
3. Requires ARB to do all of the following before including
a market-based compliance mechanism in its regulations:
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(a) consider the potential for direct, indirect, and
cumulative emission impacts from these mechanisms,
including localized impacts in communities that are
already adversely impacted by air pollution, (b) design
any market-based compliance mechanism to prevent any
increase in the emissions of toxic air contaminants or
criteria air pollutants, and (c) maximize additional
environmental and economic benefits for California, as
appropriate, pursuant to Section 38570(b) of the Health
and Safety Code.
This bill:
1. Provides that revenues generated from fees to fund
expenditures beyond the administrative costs of
implementing the GWSA, revenues generated as a result of
the implementation of market-based compliance
mechanisms, or revenues generated from compliance
mechanism shall be appropriated by the Legislature in
furtherance of the GWSA for purposes determined by the
Legislature.
2. Defines "auction" or "auctioning" as a publicly
accessible and recorded sale or transaction conducted by
means of oral or written exchanges, including exchanges
made in person or through electronic media, to the
highest bidder, of a limited quantity of allowances to
covered entities in a capped system, in which those
entities are prohibited from emitting pollution beyond
the amount authorized by allowances to be surrendered.
"Auction" or "auctioning" does not include any exchange
not subject to the laws governing financial transactions
within the jurisdiction of the state.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
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ARB staffing costs Absorbable within
existing resources Special*
* Air Pollution Control Fund
SUPPORT : (Verified 1/26/10)
Environmental Entrepreneurs (co-source)
Natural Resources Defense Council (co-source)
American Federation of State, County and Municipal
Employees, AFL-CIO
American Lung Association
Coalition for Clean Air
Ella Baker Center for Human Rights
Environment California
Environmental Defense Fund
South Coast Air Quality Management District
The Trust for Public Land
Union of Concerned Scientists
OPPOSITION : (Verified 1/26/10)
California Chamber of Commerce
California Communities Against Toxics (unless amended)
California Independent Petroleum Association
California Manufacturers and Technology Association
California Taxpayers' Association
Southern California Edison
Western States Petroleum Association
ARGUMENTS IN SUPPORT : Unable to obtain arguments on the
current version.
ARGUMENTS IN OPPOSITION : Unable to obtain arguments on
the current version.
TSM:mw 1/27/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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