Amended in Senate May 5, 2015

Amended in Senate March 16, 2015

Senate Bill No. 32

Introduced by Senator Pavley

(Coauthors: Senators Allen, Beall, Block, De León, 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 begin delete 38550 and 38551 end delete begin insert 38505, 38550, 38551, and 38561 end insert 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. begin insert The bill would make conforming changes. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 38505 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

38505.  

For begin delete the end delete 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 begin delete emission end delete begin insert emissions end insert 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 begin delete emissions in 2020, end delete begin insert emissions, end insert as determined by
the state board pursuant to Part 3 (commencing with Section
38550).

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

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).

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 38561 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

38561.  

(a)  begin insert (1) end insert begin insert   end insert 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 begin delete by 2020 end delete
under this division. begin delete The end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert 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 begin delete energy related end delete begin insert energy-related end insert 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
begin delete emission end delete begin insert emissions end insert 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 begin delete by 2020. end delete
begin insert under this division. end insert

(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 begin delete emission end delete
begin insert emissions end insert reduction requirements will not apply.

(f) In developing its plan, the state board shall identify
opportunities for begin delete emission reductions end delete begin insert emissions reduction end insert 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.