Bill Text: CA SB295 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California Global Warming Solutions Act of 2006.

Spectrum: Partisan Bill (Republican 11-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB295 Detail]

Download: California-2009-SB295-Amended.html

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BILL NUMBER: SB 295	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 27, 2009
	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Dutton
   (Coauthors: Senators Cox and Runner)
   (Coauthors: Assembly Members Bill Berryhill, DeVore, Fuller,
Hagman, Jeffries, Niello, and Silva)

                        FEBRUARY 25, 2009

   An act to  amend Section 38563 of, and to  add
Section 38561.5 to  ,  the Health and Safety Code,
relating to air pollution, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 295, as amended, Dutton. California Global Warming Solutions
Act of 2006.
   The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and to
monitor and enforce compliance with the reporting and verification
program, and requires the state board to adopt a statewide greenhouse
gas emissions limit equivalent to the statewide greenhouse gas
emissions level in 1990 to be achieved by 2020. 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. The state board is required to evaluate the
total potential costs and total potential economic and noneconomic
benefits of the plan. The state board is required by January 1, 2011,
to adopt greenhouse gas emissions limits and emission reduction
measures by regulation to achieve the prescribed emission reductions.

   This bill  , notwithstanding this provision or any other
provision of law, would prohibit the state board or its staff from
beginning to develop these regulations until July 1, 2009, and until
the   would require the  state board 
reevaluates   to complete a study to reevaluate 
the evaluation of costs discussed above  , and provide this study
to the Legislature by October 1, 2009  .  The bill
would prohibit the state board from implementing those regulations
until the unemployment rate in the state is below 5.8% for 3
consecutive months. The bill would also require the state board to
evaluate, and make public, the costs of those regulations. 
 The state board would be required to report to the Legislature
by November 1, 2009, on whether the revised analysis has led, or will
lead, to any changes to the scoping plan, a   nd whether
any changes should be made to the act's timelines. The bill would
require the Legislative Analyst to review the state board's
implementation of these requirements, as provided. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) The State Air Resources Board is required by the California
Global Warming Solutions Act of 2006 to design emission reduction
measures to meet a statewide emissions limit for greenhouse gases in
a manner that minimizes costs and maximizes benefits for California's
economy.
   (b) The State Air Resources Board is required to consider the
economic impacts of the measures identified in its scoping plan
through an economic analysis.
   (c) The Legislative Analyst found that the economic analysis of
the scoping plan adopted on December 11, 2008, was inconsistent and
incomplete. Peer reviewers also criticized the economic analysis.
   (d) The State Air Resources Board has committed to perform a new
economic analysis by December 31, 2009.
   (e) In February 2009, the California unemployment rate rose to
10.5 percent. State budget revenues are declining and California, as
well as the nation, is in the midst of a significant recession.
   (f) Given the severity of the current economic situation, and the
lack of reliable economic analysis of the impacts of the measures in
the scoping plan, the State Air Resources Board should perform a
useful and complete economic analysis of the scoping plan as soon as
possible to inform policymakers about the economic impact of the
plan.
   (g) The State Air Resources Board has the resources and
information needed to perform a valid economic analysis by July 1,
2009. 
   SEC. 2.  SECTION 1.   Section 38561.5 is
added to the Health and Safety Code, to read:
   38561.5.  (a)  Notwithstanding Section 38562 or any other
provision of law, the state board or its staff shall not begin to
develop the regulations described in Section 38562 until all of the
following occur:  
   (1) July 1, 2009, at the earliest. 
     (2)     The state
board has completed an additional peer-reviewed   (1)
    The state board shall complete an additional
peer-reviewed  study to reevaluate the evaluations made pursuant
to subdivision (d) of Section 38561 that takes into consideration
any peer-reviewed comments on the original evaluations. This
additional study shall include all of the following:
   (A) Estimates of the actual costs in every year, and for every
sector of the economy, of the recommendations identified in the
scoping plan adopted pursuant to Section 38561, and shall not include
only annual averaged costs.
   (B) Estimates of overall costs and savings and the
cost-effectiveness of the reductions identified in the scoping plan
adopted pursuant to Section 38561, including appropriate inclusion of
reductions in copollutants.
   (C) Estimates of the timing of capital investments, annual
expenditures to repay those investments, and the resulting cost
savings.
   (D) Sensitivity of the results to changes in key inputs, including
energy price forecasts and estimates of measure costs and savings.
   (E) Impacts on small businesses. 
   (3) The Legislative Analyst has certified that the study required
by paragraph (2) has been completed.  
   (b) Notwithstanding Section 38562 or any other provision of law,
the state board shall not implement the regulations described in
Section 38562 until the unemployment rate in the state is below 5.8
percent for three consecutive months. The state board shall not be
required to suspend regulations implemented after the unemployment
rate in the state is below 5.8 percent for three consecutive months,
if the unemployment rate again rises to 5.8 percent or greater.
 
   (c) The state board shall evaluate, and make public, the costs of
each regulation adopted pursuant to Section 38562.  

   SEC. 3. Section 38563 of the Health and Safety Code is amended to
read:  
   385.63. Except as provided in Section 38561.5, nothing in this
division restricts the state board from adopting greenhouse gas
emission limits or emission reduction measures prior to January 1,
2011, imposing those limits or measures prior to January 1, 2012, or
providing early reduction credit where appropriate.  
   (F) The current state of the California economy.  
   (G) The impact, if any, of increased federal funding for green
technology as a result of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5).  
   (H) An explanation of how each measure in the scoping plan is
considered to be cost effective.  
   (2) The state board shall provide the study required by this
subdivision to the Legislature by October 1, 2009.  
   (b) The state board shall report to the Legislature by November 1,
2009, on whether the analysis made pursuant to subdivision (a) has
led, or will lead, to changes to the scoping plan adopted pursuant to
Section 38561, including, but not limited to, changes in the mix of
measures identified in that plan. The state board shall also include
in the report recommended changes to the timelines included in this
division, if the analysis made pursuant to subdivision (a) makes
changes to the timelines advisable or necessary. This section does
not authorize the state board to adjust any timelines included in
this division.  
   (c) (1) The Legislative Analyst shall review the study required by
subdivision (a) and the report required by subdivision (b), and
report to the Legislature by December 1, 2009, on all of the
following:  
   (A) To the extent possible, a critique of the adequacy of the
analysis of economic impacts in support of measures proposed in the
scoping plan and the reasonableness of the conclusions drawn from
that analysis.  
   (B) Identify measures proposed in the scoping plan that lack a
supporting economic impact analysis.  
   (C) Evaluate whether the state board has complied with the
requirements of this section.  
   (2) The Legislative Analyst may provide any analysis or
information in addition to what is required by paragraph (1). 

   (3) The state board shall provide to the Legislative Analyst the
information necessary to complete the requirements of this
subdivision in the timeframe provided in this subdivision. 
   SEC. 4.   SEC. 2.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to ensure that the adoption of greenhouse gas emission
reduction regulations does not negatively impact the state's economy,
it is necessary that this act take effect immediately.