Today's Law As Amended

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SB-5 California Global Warming Solutions Act of 2006: market-based compliance mechanisms: exemption.(2015-2016)



SECTION 1.
 The Legislature finds and declares all of the following:
(a) The landmark California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) set the goal of reducing greenhouse gas emissions to 1990 levels by 2020. The act required the State Air Resources Board to develop a scoping plan, including direct regulations, performance-based standards, and market-based mechanisms, to achieve this level of greenhouse gas emissions reductions.
(b) The State Air Resources Board has implemented a market-based compliance mechanism under the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
(c) Beginning January 1, 2015, the State Air Resources Board’s market-based compliance mechanism will expand from covering large industrial facilities to include carbon-based transportation fuels, used today by the state’s motorists, as well as natural gas.
(d) Including transportation fuels in a market-based compliance mechanism will require suppliers of transportation fuels to purchase carbon allowances for gasoline and diesel sold and used in the state, therefore adding a carbon price to the cost of transportation fuels.
(e) This market-based compliance mechanism may increase the cost of transportation fuels by 15 to 76 cents a gallon.
(f) Many areas of the state continue to struggle from disproportionately high unemployment rates and the state’s hard-working low-income and middle-income families will likely suffer most from this additional cost burden.

SEC. 2.

 Section 38576 is added to the Health and Safety Code, to read:

38576.
 (a) For purposes of this section, “compliance obligation” means the quantity of greenhouse gas emissions for which a person or entity is required to submit greenhouse gas emissions allowances or offsets to the state board pursuant to a market-based compliance mechanism.
(b) If the state board adopts a market-based compliance mechanism pursuant to this part, only those categories of persons or entities that had a compliance obligation beginning January 1, 2013, and until December 31, 2014, shall have a compliance obligation through December 31, 2020, consistent with subdivision (c) of Section 38562.
(c) This Section applies retroactively from January 1, 2015.
SEC. 3.
  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:
To reduce the cost impact on consumers, it is necessary for this act to take effect immediately.