CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1383Introduced by Assembly Member FongFebruary 17, 2017 An act to amend Section 38562 of the Health and Safety Code, relating to greenhouse gases. LEGISLATIVE COUNSEL'S DIGESTAB 1383, as introduced, Fong. California Global Warming Solutions Act of 2006: regulations.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 ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board 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 take specified actions and make specified findings prior to adopting a regulation under the act. The bill also would require the state board to take specified actions within 2 years of adopting a regulation under the act and to revise that regulation based on those specified actions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 38562 of the Health and Safety Code is amended to read:38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1383Introduced by Assembly Member FongFebruary 17, 2017 An act to amend Section 38562 of the Health and Safety Code, relating to greenhouse gases. LEGISLATIVE COUNSEL'S DIGESTAB 1383, as introduced, Fong. California Global Warming Solutions Act of 2006: regulations.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 ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board 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 take specified actions and make specified findings prior to adopting a regulation under the act. The bill also would require the state board to take specified actions within 2 years of adopting a regulation under the act and to revise that regulation based on those specified actions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1383
Introduced by Assembly Member FongFebruary 17, 2017
Introduced by Assembly Member Fong
February 17, 2017
An act to amend Section 38562 of the Health and Safety Code, relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1383, as introduced, Fong. California Global Warming Solutions Act of 2006: regulations.
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 ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board 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 take specified actions and make specified findings prior to adopting a regulation under the act. The bill also would require the state board to take specified actions within 2 years of adopting a regulation under the act and to revise that regulation based on those specified actions.
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 ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board 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 take specified actions and make specified findings prior to adopting a regulation under the act. The bill also would require the state board to take specified actions within 2 years of adopting a regulation under the act and to revise that regulation based on those specified actions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 38562 of the Health and Safety Code is amended to read:38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 38562 of the Health and Safety Code is amended to read:38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SECTION 1. Section 38562 of the Health and Safety Code is amended to read:
### SECTION 1.
38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.(5) Consider cost-effectiveness of these regulations.(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.(7) Minimize the administrative burden of implementing and complying with these regulations.(8) Minimize leakage.(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.(4) Evaluate existing achievements made by incentive-based programs.(e)(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.(f)(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).(B) Evaluate whether there are any other challenges or barriers that have arisen.(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
38562. (a) On or before January 1, 2011, the state board shall adopt greenhouse gas emission emissions limits and emission emissions 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, to become operative beginning on January 1, 2012.
(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:
(1) Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.
(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.
(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.
(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.
(5) Consider cost-effectiveness of these regulations.
(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.
(7) Minimize the administrative burden of implementing and complying with these regulations.
(8) Minimize leakage.
(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.
(c) In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emission emissions limits for sources or categories of sources that emit greenhouse gas emissions, gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.
(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:
(1) The greenhouse gas emission emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.
(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission emissions reduction otherwise required by law or regulation, and any other greenhouse gas emission emissions reduction that otherwise would occur.
(3) If applicable, the greenhouse gas emission emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.
(e) Prior to adopting a regulation pursuant to this part, the state board shall do all of the following:
(1) Work with stakeholders to identify and address technical, market, regulatory, and other challenges and barriers in implementing the regulation.
(2) Provide a forum for public engagement by holding at least three public meetings in geographically diverse locations throughout the state.
(3) Make a finding that the regulation is technologically and economically feasible, is cost-effective, and includes mechanisms to minimize and mitigate potential leakage to other states and countries.
(4) Evaluate existing achievements made by incentive-based programs.
(e)
(f) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.
(f)
(g) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.
(g)After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.
(h) (1) Beginning January 1, 2018, within two years of adopting a regulation pursuant to this part, the state board shall do both of the following:
(A) Determine if sufficient progress has been made to overcome any technical, market, or regulatory challenges or barriers identified pursuant to subdivision (e).
(B) Evaluate whether there are any other challenges or barriers that have arisen.
(2) The state board shall revise a regulation as needed based on the findings of paragraph (1) consistent with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).