California 2021-2022 Regular Session

California Assembly Bill AB2862

Introduced
2/18/22  

Caption

California Global Warming Solutions Act of 2006: offset credits.

Impact

Under current law, until January 1, 2031, entities obligated to meet greenhouse gas emission reduction targets can include up to half of their compliance obligation by surrendering offset credits. These credits may come from projects that do not necessarily provide direct environmental benefits within California. AB 2862 expresses the Legislature's intention to introduce legislation in the future that would limit the application of these offset credits, thus potentially tightening regulations governing how entities can achieve compliance and emphasizing the importance of local environmental benefits.

Summary

AB 2862, introduced by Assembly Member Muratsuchi, aims to amend provisions within the California Global Warming Solutions Act of 2006, particularly concerning the use of offset credits. The California Global Warming Solutions Act charges the State Air Resources Board with monitoring and regulating greenhouse gas emissions to achieve a target of reducing emissions to at least 40% below the 1990 levels by the year 2030. This framework allows the board to employ market-based mechanisms for compliance, where regulated entities can use offset credits to meet their obligations.

Contention

The discussions surrounding AB 2862 indicate a notable contention regarding the implications of limiting offset credits. Advocates of the bill stress the need for tighter regulations to ensure that compliance mechanisms do not undermine local environmental standards. However, some industry representatives argue that restricting the use of offset credits could impose considerable burdens on businesses seeking to comply with emissions regulations, potentially leading to increased costs and impacting California’s economic landscape.

Companion Bills

No companion bills found.

Previously Filed As

CA AB397

California Global Warming Solutions Act of 2006: scoping plan.

CA SB12

California Global Warming Solutions Act of 2006: emissions limit.

CA AB1159

California Global Warming Solutions Act of 2006: natural and working lands: market-based compliance mechanisms.

CA SB1136

California Global Warming Solutions Act of 2006: report.

CA SB941

California Global Warming Solutions Act of 2006: scoping plan: industrial sources of emissions.

CA AB287

California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund: competitive grant programs: funding objectives.

CA AB858

California Climate Cashback Program.

CA AB9

Greenhouse gases: market-based compliance mechanism.

CA AB2870

Low Carbon Fuel Standard regulations: carbon intensity calculation: avoided methane emissions from livestock manure: prohibition.

CA SB308

Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations.

Similar Bills

CA AB2793

Greenhouse gases: market-based compliance mechanism.

CA AB2726

California Global Warming Solutions Act of 2006: consumption-based accounting.

CA AB1207

Climate change: market-based compliance mechanism: price ceiling.

CA SB596

Greenhouse gases: cement sector: net-zero emissions strategy.

CA SB801

Agricultural workers: wages, hours, and working conditions: definitions.

CA AB1002

California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard regulations: Greenhouse Gas Reduction Fund.

CA AB2578

State Energy Resources Conservation and Development Commission: integrated energy policy report: carbon capture, utilization, and sequestration.

CA AB2944

Greenhouse gases: carbon capture, utilization, and sequestration.