BILL NUMBER: SB 1535 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 25, 2012
AMENDED IN SENATE MARCH 27, 2012
INTRODUCED BY Senator Padilla
FEBRUARY 24, 2012
An act to add and repeal amend
Section 38599.5 38574 of the Health and
Safety Code, relating to air pollution , and declaring the
urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 1535, as amended, Padilla. California Global Warming Solutions
Act of 2006: water industry study.
Existing
(1) Existing law, 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 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 emission
emissions reductions. Existing law authorizes the state board
to include market-based compliance mechanisms, as defined, to comply
with the regulations. Existing law prohibits conferring any
authority on the state board to alter any programs admin
istered by other state agencies for the reduction of greenhouse gas
emissions.
This bill would require, by July 1, 2013, the state board
to conduct a thorough study and present its written findings to the
Legislature, as prescribed, on the benefits that can be achieved
through specific water sector measures in lieu of regulating the
water industry under market-based compliance mechanisms with a
specific compliance obligation additionally prohibit
any authority being conferred on the state board to impose any
regulatory obligations on publicly owned water utilities for purposes
of greenhouse gas emissions related to electricity imported for the
publicly owned water utility's own use for the sole purpose of
obtaining, transporting, and distributing water to its service area
from an out-of-state water source unless the state board allocates to
publicly owned water utilities allowances, credits, or other forms
of price mitigation received by publicly owned electric utilities
.
(2) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: majority 2/3 . 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 as follows:
(a) The California Global Warming Solutions Act of 2006, Division
25.5 (commencing with Section 38500) of the Health and Safety Code,
(Assembly Bill 32; Chapter 488 of the Statutes of 2006) declares that
global warming poses a serious threat to the economic well-being,
public health, natural resources, and environment of California and
creates a comprehensive multiyear program to reduce California's
greenhouse gas emissions to 1990 levels by 2020.
(b) Under Assembly Bill 32, pursuant to Sections 39600 and 39601
of the Health and Safety Code, the Legislature authorizes the State
Air Resources Board (state board) to adopt standards, rules, and
regulations and to act as may be necessary for the proper execution
of the powers and duties granted to and imposed upon the state board
by law.
(c) Subdivision (c) of Section 38562 and Section 38570 of the
Health and Safety Code authorize the state board to adopt regulations
that utilize market-based compliance mechanisms.
(d) Pursuant to this authority, the state board adopted Resolution
11-32 on October 20, 2011, adopting the Final Regulation Order for
the California Cap on Greenhouse Gas Emissions and Market-Based
Compliance Mechanisms (Sections 95800 to 96023, inclusive, of Title
17 of the California Code of Regulations) including the four Final
Compliance Offset Protocols (hereafter cap-and-trade regulations).
(e) As part of Resolution 11-32, the state board directed its
executive officer to continue discussions with water industry
stakeholders to identify and propose potential amendments to the
cap-and-trade regulations to address the distribution of allowance
value associated with cap-and-trade compliance costs from using
electricity to supply water, and the expected ability of allowance
allocation and other measures to adequately address the incidence of
these costs equitably across regions of the state.
(f) To date, the state board has not adequately addressed the
adverse impacts on the water industry.
(g) The Legislature directs the state board to evaluate the
benefits that can be achieved through specific water sector measures,
such as the policy development work being done by the Water-Energy
Team of the Climate Action Team (WET-CAT), in lieu of regulating the
water industry under cap-and-trade regulations with a specific
compliance obligation.
SEC. 2. Section 38574 of the Health and
Safety Code is amended to read:
38574. (a) Nothing in this part or Part 4
(commencing with Section 38560) confers any authority on the state
board to alter any programs administered by other state agencies for
the reduction of greenhouse gas emissions or to impose
any regulatory obligations on publicly owned water utilities for
purposes of greenhouse gas emissions related to electricity imported
for the publicly owned water utility's own use for the sole purpose
of obtaining, transporting, and distributing water to its service
area from an out-of-state water source .
(b) Subdivision (a) shall not apply if the state board allocates
to publicly owned water utilities allowances, credits, or other forms
of price mitigation received by publicly owned electric utilities.
SEC. 3. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to prevent water rate increases associated with the
current requirement that publicly owned water utilities purchase
greenhouse gas emissions allowances in the State Air Resources Board'
s allowance auction to be conducted in 2012 , it is necessary for
this act to take effect immediately.
SEC. 2. Section 38599.5 is added to the Health
and Safety Code, to read:
38599.5. (a) By July 1, 2013, the state board shall conduct a
thorough study and present its written findings to the Legislature on
the benefits that can be achieved through specific water sector
measures, such as the policy development work being done by the Water
Energy Team of the Climate Action Team (WETCAT), in lieu of
regulating the water industry with a specific compliance obligation
by regulation adopted pursuant to Section 38570.
(b) (1) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on July 1, 2017.