Bill Text: CA SB1 | 2015-2016 | Regular Session | Introduced
Bill Title: California Global Warming Solutions Act of 2006: market-based compliance mechanisms: exemption.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB1 Detail]
Download: California-2015-SB1-Introduced.html
BILL NUMBER: SB 1 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Gaines
DECEMBER 1, 2014
An act to add Section 38576 to the Health and Safety Code,
relating to greenhouse gases, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as introduced, Gaines. California Global Warming Solutions
Act of 2006: market-based compliance mechanisms: exemption.
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 emissions
reductions. The act authorizes the state board to include the use of
market-based compliance mechanisms. Existing state board regulations
require specified entities to comply with a market-based compliance
mechanism beginning January 1, 2013, and require additional specified
entities to comply with that market-based compliance mechanism
beginning January 1, 2015.
This bill instead would exempt categories of persons or entities
that did not have a compliance obligation, as defined, under a
market-based compliance mechanism beginning January 1, 2013, from
being subject to that market-based compliance mechanism. The bill
would require all participating categories of persons or entities to
have a compliance obligation beginning January 1, 2025.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The landmark California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code) set the goal of reducing greenhouse gas emissions to
1990 levels by 2020. The act required the State Air Resources Board
to develop a scoping plan, including direct regulations,
performance-based standards, and market-based mechanisms, to achieve
this level of greenhouse gas emissions reductions.
(b) The State Air Resources Board has implemented a market-based
compliance mechanism under the California Global Warming Solutions
Act of 2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code).
(c) Beginning January 1, 2015, the State Air Resources Board's
market-based compliance mechanism expanded from covering large
industrial facilities to include carbon-based transportation fuels
used today by the state's motorists.
(d) Including transportation fuels in a market-based compliance
mechanism requires suppliers of transportation fuels to purchase
carbon allowances for gasoline and diesel sold and used in the state,
therefore, adding a carbon price to the cost of transportation
fuels.
(e) The State Air Resources Board's regulatory analysis for the
market-based compliance mechanism anticipates carbon allowance costs
ranging from $15 to $75, inclusive, per ton between 2015 and 2020.
(f) Including transportation fuels in a market-based compliance
mechanism links the cost of gasoline and diesel to potentially
volatile carbon markets placing the state's motorists, families, and
small businesses at risk.
(g) Many areas of the state continue to struggle from
disproportionately high unemployment rates and the state's
hard-working low-income and middle-income families will likely suffer
most from this sudden addition in addition to potentially volatile
carbon costs on transportation fuels.
SEC. 2. Section 38576 is added to the Health and Safety Code, to
read:
38576. (a) For purposes of this section, "compliance obligation"
means the quantity of greenhouse gas emissions for which a person or
entity is required to submit greenhouse gas emissions allowances or
offsets to the state board pursuant to a market-based compliance
mechanism.
(b) (1) If the state board adopts a market-based compliance
mechanism pursuant to this part, only those categories of persons or
entities that had a compliance obligation beginning January 1, 2013,
shall have a compliance obligation on the effective date of the act
adding this section, until December 31, 2024.
(2) Beginning January 1, 2025, all categories of persons or
entities participating in a market-based compliance mechanism shall
have a compliance obligation.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
To protect California's struggling economy from the harmful effect
of higher fuel costs, it is necessary for this act to take effect
immediately.
