Bill Text: CA SB31 | 2009-2010 | Regular Session | Amended
Bill Title: California Global Warming Solutions Act of 2006: revenue
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2010-02-01 - Died on file pursuant to Joint Rule 56. [SB31 Detail]
Download: California-2009-SB31-Amended.html
BILL NUMBER: SB 31 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 25, 2010
AMENDED IN SENATE MAY 5, 2009
INTRODUCED BY Senator Pavley
(Principal coauthor: Assembly Member Huffman)
(Coauthor: Senator Hancock)
DECEMBER 2, 2008
An act to amend Sections 38505 and 38597 of
Section 38505 of, and to add Section 38575 to, the Health
and Safety Code, relating to air pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 31, as amended, Pavley. California Global Warming Solutions Act
of 2006: revenue allocations.
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 levels in 1990 to be achieved by 2020. 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 emission reductions. The act authorizes the state
board to include the use of market-based compliance mechanisms. The
act authorizes the state board to adopt a schedule of fees to be paid
by the sources of greenhouse gas emissions regulated pursuant to the
act, and requires the revenues collected pursuant to that fee to be
deposited into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for purposes of carrying out the
act.
This bill would require that revenues collected pursuant
to compliance mechanisms, as defined, adopted by the state board also
be deposited in the Air Pollution Control Fund. This bill would
specify certain uses of the revenues collected pursuant to the fee
discussed above and the compliance mechanisms provide
that revenues generated from fees to fund expenditures beyond the
administrative costs of implementing the act, revenues generated as a
result of the implementation of market-based compliance mechanisms,
or revenues generated from compliance mechanism, as defined, shall be
appropriated by the Legislature in furtherance of the act for
purposes determined by the Legislature .
Vote: majority. 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 Legislature enacted the California Global Warming
Solutions Act of 2006 (the act) in an effort to curb climate-changing
greenhouse gases that pose a serious threat to the economic
well-being, public health, natural resources, and environment of
California.
(b) The act requires the State Air Resources Board, to the maximum
extent feasible, to direct public and private investment toward the
most disadvantaged communities in California and provide an
opportunity for small businesses, schools, affordable housing
associations, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
(c) The act also directs the state board to create policies,
programs, and regulations that maximize benefits for California's
economy, improve and modernize California's energy infrastructure and
maintain electric system reliability, maximize additional
environmental and economic cobenefits for California, and complement
the state's efforts to improve air quality.
(d) The state board estimates that efforts to reduce greenhouse
gas emissions and develop new green technology would boost economic
production by twenty-seven billion dollars ($27,000,000,000) and
create approximately 100,000 jobs in California. The state board also
states that air pollution improvements under the act will provide
broad public health benefits, including reductions in premature
death, respiratory disease, asthma, and worker absenteeism attributed
to health problems.
(e) In the process of implementing the act, policy bodies that are
carrying out or advising on its implementation, including the state
board, the State Energy Resources Conservation and Development
Commission, the Public Utilities Commission, the Environmental
Justice Advisory Committee, the Economic and Technology Advancement
Advisory Committee, and the Market Advisory Committee all recommend
some form of fees, auctions, or other revenue sources to carry out
the provisions of the act.
(f) It is the Legislature's role and responsibility to ensure that
expenditures of public funds reflect the policy priorities and
public interests of the people of California.
SEC. 2. Section 38505 of the Health and
Safety Code is amended to read:
38505. For the 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) "Auction" or "auctioning" means a publicly accessible and
recorded sale or transaction conducted by means of oral or written
exchanges, including exchanges made in person or through electronic
media, to the highest bidder, of a limited quantity of allowances to
covered entities in a capped system, in which those entities are
prohibited from emitting pollution beyond the amount authorized by
allowances to be surrendered. "Auction" or "auctioning" does not
include any exchange not subject to the laws governing financial
transactions within the jurisdiction of the state.
(c)
(d) "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.
(e) "Compliance mechanism" means the use of a revenue-generating
mechanism that may include, but is not limited to, auctioning.
(d)
(f) "Cost-effective" or "cost-effectiveness" means the
cost per unit of reduced emissions of greenhouse gases adjusted for
its global warming potential.
(e)
(g) "Direct emission reduction" means a greenhouse gas
emission reduction action made by a greenhouse gas emission source at
that source.
(f)
(h) "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)
(i) "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)
(j) "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)
(k) "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)
(l) "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)
(m) "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 emission reduction measure adopted
by the state board pursuant to this division.
(l)
(n) "State board" means the State Air Resources Board.
(m)
(o) "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)
(p) "Statewide greenhouse gas emissions limit" or
"statewide emissions limit" means the maximum allowable level of
statewide greenhouse gas emissions in 2020, as determined by the
state board pursuant to Part 3 (commencing with Section 38550).
SEC. 3. Section 38575 is added to the
Health and Safety Code , to read:
38575. Revenues generated from fees to fund expenditures beyond
the administrative costs of implementing this division, revenues
generated as a result of the implementation of market-based
compliance mechanisms, or revenues generated from compliance
mechanisms, shall be appropriated by the Legislature in furtherance
of this division for purposes determined by the Legislature.
SEC. 2. Section 38505 of the Health and Safety
Code is amended to read:
38505. For the 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) "Auction" or "auctioning" means a publicly accessible and
recorded sale or transaction conducted by means of oral or written
exchanges, including exchanges made in person or through electronic
media, to the highest bidder, of a limited quantity of allowances to
covered entities in a capped system, in which those entities are
prohibited from emitting pollution beyond the amount authorized by
allowances to be surrendered. "Auction" or "auctioning" does not
include any exchange not subject to the laws governing financial
transactions within the jurisdiction of the state.
(d) "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.
(e) "Compliance mechanism" means the use of a revenue-generating
mechanism that may include, but is not limited to, auctioning.
(f) "Cost-effective" or "cost-effectiveness" means the cost per
unit of reduced emissions of greenhouse gases adjusted for its global
warming potential.
(g) "Direct emission reduction" means a greenhouse gas emission
reduction action made by a greenhouse gas emission source at that
source.
(h) "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.
(i) "Greenhouse gas" or "greenhouse gases" includes all of the
following gases: carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
(j) "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.
(k) "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.
(l) "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.
(m) "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 emission reduction measure adopted
by the state board pursuant to this division.
(n) "State board" means the State Air Resources Board.
(o) "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.
(p) "Statewide greenhouse gas emissions limit" or "statewide
emissions limit" means the maximum allowable level of statewide
greenhouse gas emissions in 2020, as determined by the state board
pursuant to Part 3 (commencing with Section 38550).
SEC. 3. Section 38597 of the Health and Safety
Code is amended to read:
38597. The state board may adopt by regulation, after a public
workshop, a schedule of fees to be paid by the sources of greenhouse
gas emissions regulated pursuant to this division, consistent with
Section 57001. The revenues collected pursuant to this section,
including any revenues generated pursuant to compliance mechanisms
adopted by the state board, shall be deposited into the Air Pollution
Control Fund and are available, upon appropriation by the
Legislature, for purposes of carrying out this division, including,
but not limited to, all of the following:
(a) The costs of administering this division.
(b) Renewable energy and energy efficiency programs that reduce
greenhouse gas emissions, particularly those programs focusing on
low-income consumers.
(c) Investments in technologies to reduce greenhouse gas
emissions, including research, development, and demonstration and
deployment, especially technologies that provide pollution reduction
cobenefits.
(d) Green jobs development and training that will reduce
greenhouse gas emissions.
