Bill Text: CA SB1079 | 2013-2014 | Regular Session | Amended
Bill Title: California Global Warming Solutions Act of 2006: market-based compliance mechanisms: exemption.
Spectrum: Strong Partisan Bill (Republican 28-2)
Status: (Introduced - Dead) 2014-08-12 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. (Corrected August 13.) [SB1079 Detail]
Download: California-2013-SB1079-Amended.html
BILL NUMBER: SB 1079 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 12, 2014
INTRODUCED BY Senator Vidak
( Coauthors: Senators
Anderson, Berryhill, Fuller, Gaines,
Huff, Knight, Morrell,
Nielsen, Walters, and Wyland )
( Coauthors: Assembly Members
Achadjian, Allen, Bigelow,
Chavez, Conway, Donnelly, Grove,
Hagman, Harkey, Jones,
Linder, Logue, Maienschein,
Melendez, Olsen, Patterson, Wagner,
Waldron, and Wilk )
FEBRUARY 19, 2014
An act to amend Section 63049.2 of the Government Code,
relating to tobacco settlement moneys. 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 1079, as amended, Vidak. Tobacco assets: sales.
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 through
December 31, 2020.
This bill would declare that it is to take effect immediately as
an urgency statute.
Under existing law, states' attorneys general and various tobacco
product manufacturers have entered into a Master Settlement
Agreement, in settlement of various lawsuits, which provides for the
allocation of money to the states and certain territories. The state
has entered into a memorandum of understanding providing for the
allocation of the state's share of moneys to be received under the
Master Settlement Agreement between the state and various local
governments of the state.
Existing law sets forth the duties of the California
Infrastructure and Economic Development Bank and its board of
directors generally in performing various financing transactions,
including the authority to sell for, and on behalf of, the state all
or any portion of the states' tobacco assets, as defined, to a
special purpose trust, established under existing law as a
not-for-profit corporation. Existing law authorizes the special
purpose trust to issue bonds and exempts certain financing
transactions from any bonds issued by the special purpose trust, as
specified.
This bill would make a technical, nonsubstantive change to the
above provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no 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 will expand from covering large
industrial facilities to include carbon-based transportation fuels
used today by the state's motorists as well as natural gas.
(d) Including transportation fuels in a market-based compliance
mechanism will require 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) 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 additional cost burden.
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) 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, and until
December 31, 2014, shall have a compliance obligation through
December 31, 2020, consistent with subdivision (c) of Section 38562.
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 allow sufficient lead time to make necessary adjustments to the
program before it takes effect January 1, 2015, it is necessary for
this act to take effect immediately.
SECTION 1. Section 63049.2 of the Government
Code is amended to read:
63049.2. Notwithstanding any other provision of this division,
Article 3 (commencing with Section 63040), Article 4 (commencing with
Section 63042), and Article 5 (commencing with Section 63043) do not
apply to any bonds issued by the special purpose trust established
by this article. All matters authorized in this article are in
addition to the powers granted to the bank in this division.
