Bill Text: CA SB1033 | 2009-2010 | Regular Session | Amended
Bill Title: California Global Warming Solutions Act of 2006:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-06-28 - Set, first hearing. Held in committee without recommendation. [SB1033 Detail]
Download: California-2009-SB1033-Amended.html
BILL NUMBER: SB 1033 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 26, 2010
AMENDED IN SENATE APRIL 13, 2010
INTRODUCED BY Senator Wright
FEBRUARY 12, 2010
An act to amend Section 38570 of the Health and Safety Code,
relating to air pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 1033, as amended, Wright. California Global Warming Solutions
Act of 2006: allowances.
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. The state board is
required, before including any market-based compliance mechanism, to
maximize additional environmental and economic benefits for
California, as appropriate.
This bill would require the state board, if market-based
compliance mechanisms are adopted that include the distribution
of allowances, which are defined under existing law as authorizations
to emit greenhouse gas emissions , to sell or otherwise
distribute an allowance , defined as an authorization to
emit greenhouse gas emissions, only to a regulated entity,
as defined, subject to the greenhouse gas emissions limit to which
that allowance applies. The bill would authorize a regulated entity
to sell or trade an allowance only to another regulated entity.
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. The Legislature finds and declares all of the
following:
(a) The California Global Warming Solutions Act of 2006 requires
the state to reduce greenhouse gas emissions to 1990 levels by 2020.
(b) The State Air Resources Board has proposed a "cap-and-trade"
regulation that would begin starting in 2012 with approximately 600
of the state's largest greenhouse gas emission emitting stationary
sources.
(c) Sources include numerous public entities, including, but not
limited to, public universities, local government facilities, and
municipal utilities.
(d) Under the cap-and-trade program, a limit or cap would be
placed on the amount of emissions that can be emitted and covered
sources must account for their emissions.
(e) Each year the cap will decline and fewer allowances would be
issued by the state board.
(f) At the end of the compliance period, each covered entity would
be required to surrender allowances equal to its total greenhouse
gas emissions during that compliance period, and failure by a covered
entity to surrender sufficient allowances to match its emissions
would result in significant penalties.
(g) The state board's analysis indicates that the value of the
allowances to be created and distributed by the state board may total
one hundred forty-three billion dollars ($143,000,000,000) between
2012 and 2020.
(h) The state board has proposed that entities not subject to the
cap could purchase allowances from the state board and subsequently
sell them to compliance entities.
(i) Allowing noncompliance entities to receive, trade, and sell
allowances needed by the sources of emissions operating in California
may result in market manipulation, a dramatic increase in the state'
s energy costs, unnecessary added costs to consumers of services, and
ultimately a failed program.
(j) Other cap-and-trade programs have successfully achieved the
emission reduction goals in a cost-effective manner, and the state
board can achieve the required emission reductions with the least
cost.
SEC. 2. 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) If the state board allows the use of market-based compliance
mechanisms pursuant to this section that include the
distribution of allowances , the state board shall sell or
otherwise distribute an allowance only to a regulated entity subject
to the greenhouse gas emissions limit to which that allowance
applies. A regulated entity may sell or trade allowances only to
another regulated entity.
(e) For purposes of this section, "regulated entity" means an
entity that has an obligation to surrender allowances under the
regulations adopted pursuant to this section and Section 38562.
