California Senate Bill SB32 Amended / Bill

 BILL NUMBER: SB 32AMENDED BILL TEXT AMENDED IN SENATE MAY 5, 2015 AMENDED IN SENATE MARCH 16, 2015 INTRODUCED BY Senator Pavley (Coauthors: Senators Allen, Beall, Block, De Len, Hancock, Hill, Jackson, Leno, Liu, McGuire, Monning, and Wolk) (Coauthors: Assembly Members Bloom, Cristina Garcia, Rendon, and Mark Stone) DECEMBER 1, 2014 An act to amend Sections  38550 and 38551   38505, 38550, 38551, and 38561  of 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. 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 emissions reductions. This bill would require the state board to approve a statewide greenhouse gas emissions limit that is equivalent to 80% below the 1990 level to be achieved by 2050, as specified. The bill would authorize the state board to adopt interim greenhouse gas emissions level targets to be achieved by 2030 and 2040. The bill also would state the intent of the Legislature for the Legislature and appropriate agencies to adopt complementary policies that ensure the long-term emissions reductions advance specified criteria.  The bill would make conforming changes.  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.   Section 38505 of the   Health and Safety Code   is amended to read:  38505. For  the  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  emission   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 in 2020,   emissions,  as determined by the state board pursuant to Part 3 (commencing with Section 38550).  SECTION 1.   SEC. 2.  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 a statewide greenhouse gas emissions limit that is equivalent to 80 percent below the 1990 level, as determined pursuant to subdivision (a) or Section 39730, to be achieved by 2050 based on the best available scientific, technological, and economic assessments. The greenhouse gas emissions limit shall include short-lived climate pollutants, as defined in Chapter 4.2 (commencing with Section 39730) of Part 2 of Division 26. (2) The state board also may approve interim greenhouse gas emissions level targets to be achieved by 2030 and 2040 consistent with paragraph (1).  SEC. 2.  SEC. 3.  Section 38551 of the Health and Safety Code is amended to read: 38551. (a) The statewide greenhouse gas emissions limit shall remain in effect unless otherwise amended or repealed. (b) It is the intent of the Legislature that the 2050 statewide greenhouse gas emissions limit established pursuant to Section 38550 continue in existence and be used to maintain and continue reductions in emissions of greenhouse gases beyond 2050. (c) The state board shall make recommendations to the Governor and the Legislature on how to continue reductions of greenhouse gas emissions beyond 2050. (d) In implementing subdivision (b) of Section 38550, it is the intent of the Legislature for the Legislature and appropriate agencies to adopt complementary policies that ensure the long-term emissions reductions adopted pursuant to subdivision (b) of Section 38550 advance all of the following: (1) Job growth and local economic benefits in California. (2) Public health benefits for California residents, particularly in disadvantaged communities. (3) Innovation in technology and energy, water, and resource management practices. (4) Regional and international collaboration to adopt similar greenhouse gas emissions reduction policies.  SEC. 4.   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  by 2020  under this division.  The   (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   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  emission   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  by 2020.   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  emission   emissions  reduction requirements will not apply. (f) In developing its plan, the state board shall identify opportunities for  emission reductions   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.