Bill Text: CA AB2202 | 2013-2014 | Regular Session | Introduced
Bill Title: Greenhouse gas reduction.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-05-29 - From committee without further action pursuant to Joint Rule 62(a). [AB2202 Detail]
Download: California-2013-AB2202-Introduced.html
BILL NUMBER: AB 2202 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Logue
FEBRUARY 20, 2014
An act to amend Sections 38530, 38562, and 38570 of the Health and
Safety Code, relating to air resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 2202, as introduced, Logue. Greenhouse gas reduction.
Existing law requires the State Air Resources Board to adopt
regulations to require the reporting and verification of statewide
greenhouse gas emissions and to monitor and enforce compliance with
this program. Existing law requires the state board to adopt
greenhouse gas emission limits and emission 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, and, as
part of that regulation, authorizes the state board to adopt a
market-based compliance mechanism, commonly referred to as cap and
trade.
This bill would require the state board to exempt small
independent fuel marketers, as defined, from the regulations adopted
by the state board in this regard.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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.
(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 (j) of Section 380 of the Public Utilities Code and local
publicly owned electric utilities as defined in Section 9604 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 Chapter 6
(commencing with Section 42800) of Part 4 of Division 26. 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) (1) The state board shall exempt small independent fuel
marketers from the regulations adopted pursuant to this section
(Article 2 (commencing with Section 95100) of Subchapter 10 of
Chapter 1 of Division 3 of Title 17 of the Code of California
Regulations).
(2) "Small independent fuel marketer" for purposes of this
subdivision means a company with gross annual revenues from motor
vehicle fuel sales in this state of $10 billion or less.
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 emission limits and emission 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 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) In furtherance of achieving the statewide greenhouse gas
emissions limit, by January 1, 2011, the state board may adopt a
regulation that establishes a system of market-based declining annual
aggregate emission limits for sources or categories of sources that
emit greenhouse gas emissions, applicable from January 1, 2012, to
December 31, 2020, inclusive, 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 emission 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 emission
reduction otherwise required by law or regulation, and any other
greenhouse gas emission reduction that otherwise would occur.
(3) If applicable, the greenhouse gas emission 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) After January 1, 2011, the state board may revise regulations
adopted pursuant to this section and adopt additional regulations to
further the provisions of this division.
(h) (1) The state board shall exempt small independent fuel
marketers from the regulations adopted pursuant to this section
relating to the application of an aggregate greenhouse gas allowance
budget on covered entities (Article 5 (commencing with Section 95801)
of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the Code
of California Regulations).
(2) "Small independent fuel marketer" for purposes of this
subdivision means a company with gross annual revenues from motor
vehicle fuel sales in this state of $10 billion or less.
SEC. 3. 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.
(d) (1) The state board shall exempt small independent fuel
marketers from the regulations adopted pursuant to this section
relating to providing a trading mechanism for compliance instruments
(Article 5 (commencing with Section 95801) of Subchapter 10 of
Chapter 1 of Division 3 of Title 17 of the Code of California
Regulations).
(2) "Small independent fuel marketer" for the purposes of this
subdivision means a company with gross annual revenues from motor
vehicle fuel sales in this state of $10 billion or less.
