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SB-1120 California Global Warming Solutions Act of 2006: market-based compliance mechanisms.(2009-2010)

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CALIFORNIA LEGISLATURE— 2009–2010 REGULAR SESSION

Senate Bill
No. 1120

Introduced  by  Senator Dutton
 (Coauthor(s): Senator Cox)
 (Coauthor(s): Assembly Member Smyth)

February 17, 2010

An act to amend Section 38570 of the Health and Safety Code, relating to air pollution.


LEGISLATIVE COUNSEL'S DIGEST


SB 1120, as introduced, Dutton. California Global Warming Solutions Act of 2006: market-based compliance mechanisms.
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 adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020, and to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. The state board is authorized to adopt market-based compliance mechanisms, as defined, meeting specified requirements to be used for compliance with those regulations.
This bill would prohibit the state board from implementing a market-based compliance mechanism that includes caps on greenhouse gas emissions and trading among participants unless it is a part of a legally enforceable regional or federal program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


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. The state board shall not implement a market-based compliance mechanism, that includes caps on greenhouse gas emissions and trading among participants, unless it is a part of a legally enforceable regional or federal program. A regional program shall include participation by all of the following states and provinces: Arizona, California, Montana, New Mexico, Oregon, Utah, Washington, Quebec, Ontario, Manitoba, and British Columbia.
(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.