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AB-151 California Global Warming Solutions Act of 2006: market-based compliance mechanisms: scoping plan: report.(2017-2018)

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Date Published: 05/02/2017 09:00 PM
AB151:v97#DOCUMENT

Amended  IN  Assembly  May 02, 2017
Amended  IN  Assembly  March 02, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 151


Introduced by Assembly Members Burke and Cooper
(Coauthors: Assembly Members Gipson, Grayson, Low, and Rubio)

January 11, 2017


An act to amend Section 38561, 38562, Sections 38561 and 38566 of, to add Section 38567 38572 to, and to add and repeal Section 38568 of, the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 151, as amended, Burke. California Global Warming Solutions Act of 2006: market-based compliance mechanisms: scoping plan: report.
(1) 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 require the state board to report to the appropriate policy and fiscal committees of the Legislature to receive input, guidance, and assistance before adopting guidelines and regulations implementing the scoping plan and a regulation ensuring statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030.
This bill would require the state board, no later than January 1, 2019, and in conjunction with specified stakeholders, to report to the Legislature on the need for increased education, career technical education, job training, and workforce development in ensuring that statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit 1990 level no later than December 31, 2030, and as a result of the scoping plan, as specified.
(2) The act authorizes the state board to include the use of market-based compliance mechanisms and to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2020, inclusive, as specified. mechanisms in implementing the act.

This bill would no longer limit the applicability of a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases from January 1, 2012, to December 31, 2020.

This bill would establish the Compliance Offsets Protocol Task Force for the purpose of investigating, analyzing, and providing guidance to the state board in approving new offset protocols for a market-based compliance mechanism adopted pursuant to this part with a priority on the development of new urban offset protocols, as specified. The bill would require the state board, in conjunction with the task force, to develop a multitiered incentive system for compliance offset credits, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 38561 of the Health and Safety Code is amended to read:

38561.
 (a) (1) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division.
(2) The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters, including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.
(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.
(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.
(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to California’s economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.
(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.
(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.
(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, communities with minority populations, communities with low-income populations, or both.
(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
(i) (1) The state board shall report to the appropriate policy and fiscal committees of the Legislature to receive input, guidance, and assistance before adopting guidelines and regulations implementing the scoping plan adopted pursuant to this section.
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 2.Section 38562 of the Health and Safety Code is amended to read:
38562.

(a)On or before January 1, 2011, the state board shall adopt greenhouse gas emissions limits and emissions reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012.

(b)In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), 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)Design the regulations, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.

(2)Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.

(3)Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this section receive appropriate credit for early voluntary reductions.

(4)Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminant emissions.

(5)Consider cost-effectiveness of these regulations.

(6)Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.

(7)Minimize the administrative burden of implementing and complying with these regulations.

(8)Minimize leakage.

(9)Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.

(c)The state board may adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.

(d)Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:

(1)The greenhouse gas emissions reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.

(2)For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emissions reduction otherwise required by law or regulation, and any other greenhouse gas emissions reduction that otherwise would occur.

(3)If applicable, the greenhouse gas emissions reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.

(e)The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.

(f)The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.

(g)The state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.

SEC. 3.SEC. 2.

 Section 38566 of the Health and Safety Code is amended to read:

38566.
 (a) In adopting rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions authorized by this division, the state board shall ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the statewide greenhouse gas emissions limit no later than December 31, 2030.
(b) (1) The state board shall report to the appropriate policy and fiscal committees of the Legislature to receive input, guidance, and assistance before adopting rules and regulations implementing this section.
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 4.Section 38567 is added to the Health and Safety Code, to read:
38567.

(a)The Compliance Offsets Protocol Task Force is hereby established for the purpose of investigating, analyzing, and providing guidance to the state board in approving new offset protocols for a market-based compliance mechanism adopted pursuant to this part with a priority on the development of new urban offset protocols.

(b)The Compliance Offsets Protocol Task Force shall consist of multiple stakeholders, including, but not limited to, all of the following:

(1)Scientists.

(2)Representatives from air pollution control and air quality management districts.

(3)Carbon market experts.

(4)Environmental justice advocates.

(5)Labor and workforce representatives.

(6)Forestry and agriculture experts.

(7)Business representatives.

(c)The state board, in conjunction with the Compliance Offsets Protocol Task Force, shall develop a multitiered incentive system for compliance offset credits in the following order:

(1)Offsets in disadvantaged communities, as identified pursuant to Section 39711.

(2)Offsets in communities with stationary sources that emit greenhouse gases and are regulated by the state board.

(3)Offsets in the state or on Native American or tribal lands.

(4)Offsets in territories linked to the state through a greenhouse gas emission trading program.

(5)Offsets in the United States.

SEC. 5.SEC. 3.

 Section 38568 is added to the Health and Safety Code, to read:

38568.
 (a) No later than January 1, 2019, the state board shall report to the Legislature on the need for increased education, career technical education, job training, and workforce development in ensuring that statewide greenhouse gas emissions are reduced to at least 40 percent below the statewide greenhouse gas emissions limit no later than December 31, 2030, pursuant to Section 38566, and as a result of the scoping plan, adopted pursuant to Section 38561. The state board shall work in conjunction with all of the following:
(1) Secretary of Labor and Workforce Development.
(2) California Workforce Development Board.
(3) State Department of Education.
(4) California Community Colleges.
(5) Trustees of the California State University.
(6) Regents of the University of California.
(7) Interested stakeholders.
(8) Green Collar Jobs Council, established pursuant to Section 15002 of the Unemployment Insurance Code.
(b) The report shall include, but need not be limited to, providing policy guidance and recommendations on all of the following:
(1) Creating and retaining jobs and stimulating economic activity in the state.
(2) Preparing the state’s pupils and students with career technical education for the green economy.
(3) Preparing the state’s pupils, students, and workers with the skills necessary to successfully compete in the global economy.
(4) Developing worker retraining programs to assist the existing workforce with the necessary tools to upgrade their skills resulting in a just transition, as that term is defined by the state board.
(5) Responding to the job creation and workforce needs of the state’s new and emerging industries, including emerging technologies that will result in greater greenhouse gas emissions reductions.
(6) Integrating workforce skill requirements with the rapidly changing local and regional labor markets.
(7) Developing job training programs to assist specific populations, such as at-risk youth, displaced workers, veterans, and others facing barriers to employment.
(8) Targeting workforce development programs and activities in disadvantaged communities, as identified pursuant to Section 39711, and communities that are located near entities regulated by the state board pursuant to this division.
(9) Identifying and leveraging state and federal funding resources, including, but not limited to, moneys collected through a market-based compliance mechanism, developed pursuant to Part 5 (commencing with Section 38570), to implement the recommendations made in the report consistent with the regulatory purposes of this division.
(c) (1) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2023.

SEC. 4.

 Section 38572 is added to the Health and Safety Code, to read:

38572.
 (a) The Compliance Offsets Protocol Task Force is hereby established for the purpose of investigating, analyzing, and providing guidance to the state board in approving new offset protocols for a market-based compliance mechanism adopted pursuant to this part with a priority on the development of new urban offset protocols.
(b) The Compliance Offsets Protocol Task Force shall consist of multiple stakeholders, including, but not limited to, all of the following:
(1) Scientists.
(2) Representatives from air pollution control and air quality management districts.
(3) Carbon market experts.
(4) Environmental justice advocates.
(5) Labor and workforce representatives.
(6) Forestry and agriculture experts.
(7) Business representatives.
(c) The state board, in conjunction with the Compliance Offsets Protocol Task Force, shall develop a multitiered incentive system for compliance offset credits in the following order:
(1) Offsets in disadvantaged communities, as identified pursuant to Section 39711.
(2) Offsets in communities with stationary sources that emit greenhouse gases and are regulated by the state board.
(3) Offsets in the state or on Native American or tribal lands.
(4) Offsets in territories linked to the state through a greenhouse gas emission trading program.
(5) Offsets in the United States.