38560-38565

HEALTH AND SAFETY CODE
SECTION 38560-38565




38560.  The state board shall adopt rules and regulations in an open
public process to achieve the maximum technologically feasible and
cost-effective greenhouse gas emission reductions from sources or
categories of sources, subject to the criteria and schedules set
forth in this part.



38560.5.  (a) On or before June 30, 2007, the state board shall
publish and make available to the public a list of discrete early
action greenhouse gas emission reduction measures that can be
implemented prior to the measures and limits adopted pursuant to
Section 38562.
   (b) On or before January 1, 2010, the state board shall adopt
regulations to implement the measures identified on the list
published pursuant to subdivision (a).
   (c) The regulations adopted by the state board pursuant to this
section shall achieve the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions from those
sources or categories of sources, in furtherance of achieving the
statewide greenhouse gas emissions limit.
   (d) The regulations adopted pursuant to this section shall be
enforceable no later than January 1, 2010.



38561.  (a) On or before January 1, 2009, the state board shall
prepare and approve a scoping plan, as that term is understood by the
state board, for achieving the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions from sources or
categories of sources of greenhouse gases by 2020 under this
division. The state board shall consult with all state agencies with
jurisdiction over sources of greenhouse gases, including the Public
Utilities Commission and the State Energy Resources Conservation and
Development Commission, on all elements of its plan that pertain to
energy related matters including, but not limited to, electrical
generation, load based-standards or requirements, the provision of
reliable and affordable electrical service, petroleum refining, and
statewide fuel supplies to ensure the greenhouse gas emissions
reduction activities to be adopted and implemented by the state board
are complementary, nonduplicative, and can be implemented in an
efficient and cost-effective manner.
   (b) The plan shall identify and make recommendations on direct
emission reduction measures, alternative compliance mechanisms,
market-based compliance mechanisms, and potential monetary and
nonmonetary incentives for sources and categories of sources that the
state board finds are necessary or desirable to facilitate the
achievement of the maximum feasible and cost-effective reductions of
greenhouse gas emissions by 2020.
   (c) In making the determinations required by subdivision (b), the
state board shall consider all relevant information pertaining to
greenhouse gas emissions reduction programs in other states,
localities, and nations, including the northeastern states of the
United States, Canada, and the European Union.
   (d) The state board shall evaluate the total potential costs and
total potential economic and noneconomic benefits of the plan for
reducing greenhouse gases to California's economy, environment, and
public health, using the best available economic models, emission
estimation techniques, and other scientific methods.
   (e) In developing its plan, the state board shall take into
account the relative contribution of each source or source category
to statewide greenhouse gas emissions, and the potential for adverse
effects on small businesses, and shall recommend a de minimis
threshold of greenhouse gas emissions below which emission reduction
requirements will not apply.
   (f) In developing its plan, the state board shall identify
opportunities for emission reductions measures from all verifiable
and enforceable voluntary actions, including, but not limited to,
carbon sequestration projects and best management practices.
   (g) The state board shall conduct a series of public workshops to
give interested parties an opportunity to comment on the plan. The
state board shall conduct a portion of these workshops in regions of
the state that have the most significant exposure to air pollutants,
including, but not limited to, communities with minority populations,
communities with low-income populations, or both.
   (h) The state board shall update its plan for achieving the
maximum technologically feasible and cost-effective reductions of
greenhouse gas emissions at least once every five years.




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 beginning 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.



38563.  Nothing in this division restricts the state board from
adopting greenhouse gas emission limits or emission reduction
measures prior to January 1, 2011, imposing those limits or measures
prior to January 1, 2012, or providing early reduction credit where
appropriate.



38564.  The state board shall consult with other states, and the
federal government, and other nations to identify the most effective
strategies and methods to reduce greenhouse gases, manage greenhouse
gas control programs, and to facilitate the development of integrated
and cost-effective regional, national, and international greenhouse
gas reduction programs.



38565.  The state board shall ensure that the greenhouse gas
emission reduction rules, regulations, programs, mechanisms, and
incentives under its jurisdiction, where applicable and to the extent
feasible, direct public and private investment toward the most
disadvantaged communities in California and provide an opportunity
for small businesses, schools, affordable housing associations, and
other community institutions to participate in and benefit from
statewide efforts to reduce greenhouse gas emissions.