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AB-1906 California Global Warming Solutions Act of 2006: market-based compliance mechanisms: utilities.(2011-2012)

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AB1906:v98#DOCUMENT

Amended  IN  Assembly  March 29, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1906


Introduced  by  Assembly Member Nestande

February 22, 2012


An act to amend Section 38570 of add Section 38570.5 to the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 1906, as amended, Nestande. California Global Warming Solutions Act of 2006: market-based compliance mechanisms. mechanisms: utilities.
The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating greenhouse gas emission sources. The act requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act also requires the state board to adopt regulations to provide for a statewide greenhouse gas emissions limit to be achieved by 2020, equivalent to the statewide greenhouse gas emissions levels in 1990. Existing law authorizes the state board to include market-based compliance mechanisms, as defined, to comply with the regulations.
This bill would make technical, nonsubstantive changes to the authorization to include market-based compliance mechanisms require any investor-owned utility and any publicly owned utility that is subject to the act to use any proceeds it obtains from the monetization of any greenhouse gas emission allowances for the benefit of ratepayers to reduce rates that are above the cost of service.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 38570.5 is added to the Health and Safety Code, to read:

38570.5.
 Any proceeds received from the monetization of greenhouse gas emission allowances that may be directly allocated for free to investor-owned utilities and publicly owned utilities by the state board, pursuant to this part, shall be used exclusively for the benefit of ratepayers to reduce rates that are above the cost of service.

SECTION 1.Section 38570 of the Health and Safety Code is amended to read:
38570.

(a)The state board may include, in the regulations adopted pursuant to Section 38562, the use of market-based compliance mechanisms to comply with the regulations.

(b)Prior to the inclusion of any market-based compliance mechanism in the regulations, to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:

(1)Consider the potential for direct, indirect, and cumulative emission impacts from these mechanisms, including localized impacts in communities that are already adversely impacted by air pollution.

(2)Design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants.

(3)Maximize additional environmental and economic benefits for California, as appropriate.

(c)The state board shall adopt regulations governing how market-based compliance mechanisms may be used by regulated entities subject to greenhouse gas emission limits and mandatory emission reporting requirements to achieve compliance with their greenhouse gas emissions limits.