AB 2202, as introduced, Logue. Greenhouse gas reduction.
Existing law requires the State Air Resources Board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. Existing law requires the state board to adopt greenhouse gas emission limits and emission reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, and, as part of that regulation, authorizes the state board to adopt a market-based compliance mechanism, commonly referred to as cap and trade.
This bill would require the state board to exempt small independent fuel marketers, as defined, from the regulations adopted by the state board in this regard.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 38530 of the Health and Safety Code is
2amended to read:
(a) On or before January 1, 2008, the state board shall
2adopt regulations to require the reporting and verification of
3statewide greenhouse gas emissions and to monitor and enforce
4compliance with this program.
5(b) The regulations shall do all of the following:
6(1) Require the monitoring and annual reporting of greenhouse
7gas emissions from greenhouse gas emission sources beginning
8with the sources or categories of sources that contribute the most
9to statewide emissions.
10(2) Account for greenhouse gas emissions from all electricity
11consumed in the state, including transmission and distribution line
12
losses from electricity generated within the state or imported from
13outside the state. This requirement applies to all retail sellers of
14electricity, including load-serving entities as defined in subdivision
15(j) of Section 380 of the Public Utilities Code and local publicly
16owned electric utilities as defined in Section 9604 of the Public
17Utilities Code.
18(3) Where appropriate and to the maximum extent feasible,
19incorporate the standards and protocols developed by the California
20Climate Action Registry, established pursuant to Chapter 6
21(commencing with Section 42800) of Part 4 of Division 26. Entities
22that voluntarily participated in the California Climate Action
23Registry prior to December 31, 2006, and have developed a
24greenhouse gas emission reporting program, shall not be required
25to significantly alter their reporting or verification program except
26as necessary to ensure that reporting is complete and verifiable for
27the purposes of
compliance with this division as determined by
28the state board.
29(4) Ensure rigorous and consistent accounting of emissions, and
30provide reporting tools and formats to ensure collection of
31necessary data.
32(5) Ensure that greenhouse gas emission sources maintain
33comprehensive records of all reported greenhouse gas emissions.
34(c) The state board shall do both of the following:
35(1) Periodically review and update its emission reporting
36requirements, as necessary.
37(2) Review existing and proposed international, federal, and
38state greenhouse gas emission reporting programs and make
39reasonable efforts to promote consistency among the programs
40established pursuant to this part and other programs,
and to
P3 1streamline reporting requirements on greenhouse gas emission
2sources.
3(d) (1) The state board shall exempt small independent fuel
4marketers from the regulations adopted pursuant to this section
5(Article 2 (commencing with Section 95100) of Subchapter 10 of
6Chapter 1 of Division 3 of Title 17 of the Code of California
7Regulations).
8(2) “Small independent fuel marketer” for purposes of this
9subdivision means a company with gross annual revenues from
10motor vehicle fuel sales in this state of $10 billion or less.
Section 38562 of the Health and Safety Code is
12amended to read:
(a) On or before January 1, 2011, the state board shall
14adopt greenhouse gas emission limits and emission reduction
15measures by regulation to achieve the maximum technologically
16feasible and cost-effective reductions in greenhouse gas emissions
17in furtherance of achieving the statewide greenhouse gas emissions
18limit, to become operative on January 1, 2012.
19(b) In adopting regulations pursuant to this section and Part 5
20(commencing with Section 38570), to the extent feasible and in
21furtherance of achieving the statewide greenhouse gas emissions
22limit, the state board shall do all of the following:
23(1) Design the regulations, including distribution of emissions
24
allowances where appropriate, in a manner that is equitable, seeks
25to minimize costs and maximize the total benefits to California,
26and encourages early action to reduce greenhouse gas emissions.
27(2) Ensure that activities undertaken to comply with the
28regulations do not disproportionately impact low-income
29communities.
30(3) Ensure that entities that have voluntarily reduced their
31greenhouse gas emissions prior to the implementation of this
32section receive appropriate credit for early voluntary reductions.
33(4) Ensure that activities undertaken pursuant to the regulations
34complement, and do not interfere with, efforts to achieve and
35maintain federal and state ambient air quality standards and to
36reduce toxic air contaminant emissions.
37(5) Consider cost-effectiveness of these regulations.
38(6) Consider overall societal benefits, including reductions in
39other air pollutants, diversification of energy sources, and other
40benefits to the economy, environment, and public health.
P4 1(7) Minimize the administrative burden of implementing and
2complying with these regulations.
3(8) Minimize leakage.
4(9) Consider the significance of the contribution of each source
5or category of sources to statewide emissions of greenhouse gases.
6(c) In furtherance of achieving the statewide greenhouse gas
7emissions limit, by January 1, 2011, the state board may adopt a
8regulation that establishes a system of market-based declining
9annual aggregate emission limits
for sources or categories of
10sources that emit greenhouse gas emissions, applicable from
11January 1, 2012, to December 31, 2020, inclusive, that the state
12board determines will achieve the maximum technologically
13feasible and cost-effective reductions in greenhouse gas emissions,
14in the aggregate, from those sources or categories of sources.
15(d) Any regulation adopted by the state board pursuant to this
16part or Part 5 (commencing with Section 38570) shall ensure all
17of the following:
18(1) The greenhouse gas emission reductions achieved are real,
19permanent, quantifiable, verifiable, and enforceable by the state
20board.
21(2) For regulations pursuant to Part 5 (commencing with Section
2238570), the reduction is in addition to any greenhouse gas emission
23reduction otherwise required by law or regulation, and any other
24
greenhouse gas emission reduction that otherwise would occur.
25(3) If applicable, the greenhouse gas emission reduction occurs
26over the same time period and is equivalent in amount to any direct
27emission reduction required pursuant to this division.
28(e) The state board shall rely upon the best available economic
29and scientific information and its assessment of existing and
30projected technological capabilities when adopting the regulations
31required by this section.
32(f) The state board shall consult with the Public Utilities
33Commission in the development of the regulations as they affect
34electricity and natural gas providers in order to minimize
35duplicative or inconsistent regulatory requirements.
36(g) After January 1, 2011, the state board may revise
regulations
37adopted pursuant to this section and adopt additional regulations
38to further the provisions of this division.
39(h) (1) The state board shall exempt small independent fuel
40marketers from the regulations adopted pursuant to this section
P5 1relating to the application of an aggregate greenhouse gas
2allowance budget on covered entities (Article 5 (commencing with
3Section 95801) of Subchapter 10 of Chapter 1 of Division 3 of
4Title 17 of the Code of California Regulations).
5(2) “Small independent fuel marketer” for purposes of this
6subdivision means a company with gross annual revenues from
7motor vehicle fuel sales in this state of $10 billion or less.
Section 38570 of the Health and Safety Code is
9amended to read:
(a) The state board may include in the regulations
11adopted pursuant to Section 38562 the use of market-based
12compliance mechanisms to comply with the regulations.
13(b) Prior to the inclusion of any market-based compliance
14mechanism in the regulations, to the extent feasible and in
15furtherance of achieving the statewide greenhouse gas emissions
16limit, the state board shall do all of the following:
17(1) Consider the potential for direct, indirect, and cumulative
18emission impacts from these mechanisms, including localized
19impacts in communities that are already adversely impacted by air
20pollution.
21(2) Design any market-based compliance mechanism to prevent
22any increase in the emissions of toxic air contaminants or criteria
23air pollutants.
24(3) Maximize additional environmental and economic benefits
25for California, as appropriate.
26(c) The state board shall adopt regulations governing how
27market-based compliance mechanisms may be used by regulated
28entities subject to greenhouse gas emission limits and mandatory
29emission reporting requirements to achieve compliance with their
30greenhouse gas emissions limits.
31(d) (1) The state board shall exempt small independent fuel
32marketers from the regulations adopted pursuant to this section
33relating to providing a trading mechanism for compliance
34instruments
(Article 5 (commencing with Section 95801) of
35Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the Code
36of California Regulations).
37(2) “Small independent fuel marketer” for the purposes of this
38subdivision means a company with gross annual revenues from
39motor vehicle fuel sales in this state of $10 billion or less.
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