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AB-1523 Greenhouse gases.(2021-2022)

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Date Published: 02/20/2021 04:00 AM
AB1523:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1523


Introduced by Assembly Member Gallagher

February 19, 2021


An act to amend Sections 38505, 38510, 38530, 38562.5, 38566, 38580, and 38597 of, to amend the heading of Chapter 4 (commencing with Section 38510) of Part 1 of Division 25.5 of, to add Sections 38562.1 and 38562.9 to, and to repeal Sections 38505.5 and 38594 of, the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 1523, as introduced, Gallagher. Greenhouse gases.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources of emissions of greenhouse gases. For the emissions of pollutants other than greenhouse gases, existing law generally designates the state board with the primary responsibility for the control of air pollution from vehicular sources and air pollution control and air quality management districts with the primary responsibility for the control of air pollution from all sources other than vehicular sources.
This bill would revise the California Global Warming Solutions Act of 2006 by designating the state board with the responsibility of regulating vehicular sources of emissions of greenhouse gases and each district with the responsibility of regulating all sources, other than vehicular sources, of emissions of greenhouse gases within its jurisdiction. By imposing additional duties on the districts, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 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) “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.
(d) “Cost-effective” or “cost-effectiveness” means the cost per unit of reduced emissions of greenhouse gases adjusted for its global warming potential.
(e) “Direct emission reduction” means a greenhouse gas emission reduction action made by a greenhouse gas emission source at that source.
(f) “District” has the same meaning as in Section 39025.

(f)

(g) “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)

(h) “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)

(i) “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)

(j) “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)

(k) “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)

(l) “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)

(m) “State board” means the State Air Resources Board.

(m)

(n) “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)

(o) “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. 2.

 Section 38505.5 of the Health and Safety Code is repealed.
38505.5.

(a)“District” has the same meaning as in Section 39025.

(b)This section shall remain in effect only until January 1, 2031, and as of that date is repealed.

SEC. 3.

 The heading of Chapter 4 (commencing with Section 38510) of Part 1 of Division 25.5 of the Health and Safety Code is amended to read:
CHAPTER  4. Role of State Board and Districts

SEC. 4.

 Section 38510 of the Health and Safety Code is amended to read:

38510.
 (a) The State Air Resources Board is the state agency charged with monitoring and regulating the responsibility of regulating vehicular sources of emissions of greenhouse gases that cause global warming in order to reduce emissions of greenhouse gases.
(b) Each district is the public agency charged with the responsibility of regulating all sources, other than vehicular sources, of emissions of greenhouse gases that cause global warming to reduce emissions of greenhouse gases within its jurisdiction.

SEC. 5.

 Section 38530 of the Health and Safety Code is amended to read:

38530.
 (a) On or before January 1, 2008, the state board shall adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. division.
(b) The regulations shall do all of the following:
(1) Require the monitoring and annual reporting of greenhouse gas emissions from greenhouse gas emission sources beginning with the sources or categories of sources that contribute the most to statewide emissions.
(2) Account for greenhouse gas emissions from all electricity consumed in the state, including transmission and distribution line losses from electricity generated within the state or imported from outside the state. This requirement applies to all retail sellers of electricity, including load-serving entities as defined in subdivision (k) of Section 380 of the Public Utilities Code and local publicly owned electric utilities as defined in Section 224.3 of the Public Utilities Code.
(3) Where appropriate and to the maximum extent feasible, incorporate the standards and protocols developed by the California Climate Action Registry, established pursuant to former Chapter 6 (commencing with Section 42800) of Part 4 of Division 26, as added by Section 1 of Chapter 1018 of the Statutes of 2000. Entities that voluntarily participated in the California Climate Action Registry prior to December 31, 2006, and have developed a greenhouse gas emission reporting program, shall not be required to significantly alter their reporting or verification program except as necessary to ensure that reporting is complete and verifiable for the purposes of compliance with this division as determined by the state board.
(4) Ensure rigorous and consistent accounting of emissions, and provide reporting tools and formats to ensure collection of necessary data.
(5) Ensure that greenhouse gas emission sources maintain comprehensive records of all reported greenhouse gas emissions.
(c) The state board shall do both of the following:
(1) Periodically review and update its emission reporting requirements, as necessary.
(2) Review existing and proposed international, federal, and state greenhouse gas emission reporting programs and make reasonable efforts to promote consistency among the programs established pursuant to this part and other programs, and to streamline reporting requirements on greenhouse gas emission sources.
(d) The state board shall provide emissions data from stationary sources to the district with jurisdiction over those stationary sources.

SEC. 6.

 Section 38562.1 is added to the Health and Safety Code, to read:

38562.1.
 (a) Each district shall adopt greenhouse gas emissions limits and emission reduction measures for stationary sources within its jurisdiction by regulation to achieve maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of the goal set forth in Section 38566.
(b) The regulations adopted pursuant to this section may provide for compliance with any emission reduction rule for greenhouse gases set forth in those regulations through the use of the market-based compliance mechanism established by the state board pursuant to this division.

SEC. 7.

 Section 38562.5 of the Health and Safety Code is amended to read:

38562.5.
 When adopting rules and regulations pursuant to this division to achieve emissions reductions beyond the statewide greenhouse gas emissions limit and to protect the state’s most impacted and disadvantaged communities, the state board and each district shall follow the requirements in subdivision (b) of Section 38562, consider the social costs of the emissions of greenhouse gases, and prioritize both of the following:
(a) Emission reduction rules and regulations that result in direct emission reductions at large stationary sources of greenhouse gas emissions and direct emission reductions from mobile sources. sources, as applicable.
(b) Emission reduction rules and regulations that result in direct emission reductions from sources other than those specified in subdivision (a).

SEC. 8.

 Section 38562.9 is added to the Health and Safety Code, to read:

38562.9.
 Rules and regulations adopted pursuant to this part by the state board shall not establish enforceable emission limits on stationary sources, but may determine the emission levels for purposes of a market-based compliance mechanism.

SEC. 9.

 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 for vehicular sources 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) In adopting rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions for stationary sources authorized by the division, each district shall meet emission reduction targets proportionate to their respective contribution to total emissions in order to ensure that statewide greenhouse gas emissions are reduced to at least 40 percent below the statewide greenhouse gas limit no later than December 31, 2030.

SEC. 10.

 Section 38580 of the Health and Safety Code is amended to read:

38580.
 (a) (1) The state board shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the state board pursuant to this division.
(2) Each district shall monitor compliance and enforce any rule, regulation, order, emission limitation, and emissions reduction measure adopted by the district pursuant to this division.
(b) (1) Any violation of any rule, regulation, order, emission limitation, emissions reduction measure, or other measure adopted by the state board or each district pursuant to this division may be enjoined pursuant to Section 41513, and the violation is subject to those penalties set forth in Article 3 (commencing with Section 42400) of Chapter 4 of Part 4 of, and Chapter 1.5 (commencing with Section 43025) of Part 5 of, Division 26.
(2) Any violation of any rule, regulation, order, emission limitation, emissions reduction measure, or other measure adopted by the state board or each district pursuant to this division shall be deemed to result in an emission of an air contaminant for the purposes of the penalty provisions of Article 3 (commencing with Section 42400) of Chapter 4 of Part 4 of, and Chapter 1.5 (commencing with Section 43025) of Part 5 of, Division 26.
(3) The state board or each district may develop a method to convert a violation of any rule, regulation, order, emission limitation, or other emissions reduction measure adopted by the state board or each district pursuant to this division into the number of days in violation, where appropriate, for the purposes of the penalty provisions of Article 3 (commencing with Section 42400) of Chapter 4 of Part 4 of, and Chapter 1.5 (commencing with Section 43025) of Part 5 of, Division 26.
(c) Section 42407 and subdivision (i) of Section 42410 shall do not apply to this part.

SEC. 11.

 Section 38594 of the Health and Safety Code, as amended by Section 12 of Chapter 135 of the Statutes of 2017, is repealed.
38594.

(a)Except as provided in subdivision (b), nothing in this division shall limit or expand the existing authority of any district.

(b)A district shall not adopt or implement an emission reduction rule for carbon dioxide from stationary sources that are also subject to a market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562.

(c)Nothing in this section affects in any manner the authority of a district to adopt or implement, as applicable, any of the following:

(1)A rule, regulation, standard, or requirement authorized or required for a district to adopt under Division 26 (commencing with Section 39000) for purposes other than to reduce carbon dioxide from sources subject to a market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562.

(2)A rule, regulation, standard, or requirement authorized pursuant to a law affecting emissions associated with landfills, refrigerants, natural gas or methane, volatile organic compounds, or a rule required to comply with the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or regulations implementing that act.

(3)A rule, regulation, standard, or requirement authorized pursuant to a law to reduce vehicle trips, vehicle miles traveled, parking, or vehicular air emissions, including, but not limited to, a rule adopted pursuant to Chapter 728 of the Statutes of 2008.

(4)A rule, regulation, standard, or requirement established pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(5)A rule, regulation, standard, or requirement adopted by any state agency.

(d)This section shall become inoperative if the state board repeals the market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562. The state board shall notify the Secretary of State if this section becomes inoperative.

(e)This section shall remain in effect only until January 1, 2031, and as of that date is repealed.

SEC. 12.

 Section 38594 of the Health and Safety Code, as added by Section 13 of Chapter 135 of the Statutes of 2017, is repealed.
38594.

(a)Nothing in this division shall limit or expand the existing authority of any district, as defined in Section 39025.

(b)This section shall become operative on January 1, 2031.

SEC. 13.

 Section 38597 of the Health and Safety Code is amended to read:

38597.
 (a) The state board may adopt by regulation, after a public workshop, a schedule of fees to be paid by the vehicular sources of greenhouse gas emissions regulated pursuant to this division, consistent with Section 57001. The revenues collected pursuant to this section, shall be deposited into the Air Pollution Control Fund and are available upon appropriation, by the Legislature, for purposes of carrying out this division.
(b) Each district may adopt by rule or regulation, after a public workshop, a schedule of fees to be paid by sources, other than vehicular sources, of greenhouse gas emissions to reimburse the district for the costs incurred in implementing this division.

SEC. 14.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.