Bill Text: CA SB5 | 2015-2016 | Regular Session | Introduced
Bill Title: California Global Warming Solutions Act of 2006: market-based compliance mechanisms: exemption.
Spectrum: Strong Partisan Bill (Republican 26-1-1)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB5 Detail]
Download: California-2015-SB5-Introduced.html
BILL NUMBER: SB 5 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Vidak
(Principal coauthor: Senator Huff)
(Principal coauthors: Assembly Members Kim, Olsen, Patterson, and
Wilk)
(Coauthors: Senators Anderson, Bates, Berryhill, Fuller, Morrell,
Nielsen, and Stone)
(Coauthors: Assembly Members Achadjian, Travis Allen, Brough,
Chang, Beth Gaines, Grove, Linder, Maienschein, Mathis, Mayes,
Melendez, Obernolte, Steinorth, Wagner, and Waldron)
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 5, as introduced, Vidak. 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.
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 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) This market-based compliance mechanism may increase the cost
of transportation fuels by 15 to 76 cents a gallon.
(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.
(c) This Section applies retroactively from January 1, 2015.
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 reduce the cost impact on consumers, it is necessary for this
act to take effect immediately.
