Amended  IN  Assembly  April 20, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1395

Introduced by Assembly Members Muratsuchi and Cristina Garcia
(Coauthors: Assembly Members McCarty, Robert Rivas, and Stone)
(Coauthor: Senator Skinner)

February 19, 2021

An act to add Section 38562.2 to the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 1395, as amended, Muratsuchi. Greenhouse gases: carbon neutrality.
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 prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would declare the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. The bill would require the state board to work with relevant state agencies to develop a framework for implementation and accounting that tracks progress toward achieving carbon neutrality, to set and manage targets and accounting for negative emissions separately from existing and future greenhouse gas emissions reduction targets, and to ensure that updates to the scoping plan identify and recommend measures to achieve carbon neutrality. The bill would require a specified plan prepared by the state board and other specified agencies to include sequestration targets consistent with achieving carbon neutrality, and these policy goals, to ensure that by 2045 a minimum of 90% of gross greenhouse gas emissions subject to the act are to be achieved only through emission reductions, and to prioritize the use of nature-based solutions in California to achieve carbon neutrality. The bill would require the state board to work with relevant agencies to establish criteria for the use of technology-based solutions for purposes of achieving these policy goals. The bill would impose other requirements on state agencies relating to working toward carbon neutrality. these policy goals.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 38562.2 is added to the Health and Safety Code, to read:
38562.2.

(a)

38562.2.
 (a) For purposes of this section, the following definitions apply:
(1) “Carbon dioxide removal” means the process of removing carbon dioxide from the atmosphere and durably storing it in geological, terrestrial, or ocean reservoirs, or in products. Carbon dioxide removal includes nature-based and technology-based solutions.
(2) “Carbon neutrality” means gross emissions of greenhouse gases to the atmosphere are balanced by removals of greenhouse gas emissions over a specified period of time.
(3) “Nature-based solutions” means carbon dioxide removal solutions that enhance biological sinks of carbon dioxide.
(4) “Net negative greenhouse gas emissions” occurs when removals of greenhouse gas emissions from the atmosphere exceed gross emissions of greenhouse gases.
(5) “Technology-based solutions” means carbon dioxide removal solutions that actively pull carbon dioxide out of the atmosphere, such as direct air capture or electricity generation with carbon capture and sequestration.
(b) It is the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This carbon neutrality goal is in addition to the statewide greenhouse gas emissions reduction targets in Sections 38550 and Section 38566.

(b)

(c) The state board shall work with relevant state agencies to do all of the following:

(1)Develop a framework for implementation and accounting that tracks progress toward achieving carbon neutrality.

(2)Set and manage targets and accounting for negative emissions separately from existing and future greenhouse gas emissions reduction targets to ensure negative emissions deliver the necessary additional carbon removal.

(3)Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve carbon neutrality. The scoping plan shall only use negative emission strategies to reach carbon neutrality that are in addition to the greenhouse gas reductions specified in the targets set forth in Section 38566 and Executive Order B-30-15.

(c)The Natural and Working Lands Climate Change Implementation Plan, prepared by the state board, the Natural Resources Agency, the California Environmental Protection Agency, and the Department of Food and Agriculture, shall include sequestration targets consistent with achieving carbon neutrality.

(d)Policies and programs undertaken by state agencies to achieve carbon neutrality shall do all of the following:

(1)Seek to improve air quality and support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.

(2)Be implemented in a manner that supports climate adaptation and biodiversity, including by protecting the state’s water supply, water quality, and native plants and animals.

(3)Include ongoing monitoring and safeguards to ensure negative emission strategies are used to permanently reduce carbon emissions.

(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goal stated in subdivision (b).
(2) Ensure that by 2045 a minimum of 90 percent of gross greenhouse gas emissions subject to this division are to be achieved only through emission reductions. The remaining 10 percent of gross greenhouse gas emission reductions may be accomplished through the use of carbon dioxide removal strategies.
(3) Prioritize the use of nature-based solutions in California to achieve carbon neutrality.
(d) (1) The state board shall work with relevant agencies to establish criteria for the use of technology-based solutions for purposes of achieving carbon neutrality and maintaining net negative greenhouse gas emissions thereafter.
(2) In establishing the criteria pursuant to paragraph (1), the state board shall do all of the following:
(A) Consider the risks and uncertainties associated with the use of technology-based solutions and shall include requirements for long-term financial assurances to mitigate for those risks and uncertainties.
(B) Ensure that the use of technology-based solutions does not increase toxic and criteria pollutants, and actively reduce toxic and criteria pollutants where feasible.
(C) Exclude the counting of captured carbon dioxide that is injected into underground wells for the purpose of fossil fuel extraction in California, including, but not limited to, enhanced oil recovery, as removal for the purposes of achieving carbon neutrality by 2045, or maintaining net negative emissions thereafter.
(3) The criteria established pursuant to paragraph (1) shall include ongoing monitoring and safeguards that, in perpetuity, do all of the following:
(A) Ensure quantifiable, additional, and permanent emissions reductions, account for risk factors, include a buffer pool in the event of a reversal, and provide for invalidation criteria to ensure environmental integrity is always maintained.
(B) Include robust monitoring, accounting, and annual reporting to the state board by the project owner. Reports shall describe environmental safeguards, account for uncertainty in any measurements, be verified by a state board-approved third-party verifier, and be made publicly available.
(C) Ensure compliance with all applicable local, regional, state, and national requirements on environmental impact assessments or reports and all applicable local, regional, state, and national environmental health and safety laws and regulations, requirements regarding transparent documentation with state board-approved third-party verification, and grievance mechanism processes.
(D) Are enforceable.
(e) In working toward the policy goal stated in subdivision (a), (b), state agencies shall engage do all of the following:
(1) Engage the support, participation, and partnership of universities, businesses, investors, and communities, as appropriate, to achieve carbon neutrality.
(2) Seek to support the health and economic resiliency of urban and rural communities, particularly low-income and disadvantaged communities.
(3) Support climate adaptation and biodiversity, including by protecting the state’s water supply, water quality, and native plants and animals.