Part 5MARKET-BASED COMPLIANCE MECHANISMS

Section § 38570

Explanation

This section allows the state board in California to use market-based strategies, like cap-and-trade, to help meet greenhouse gas reduction goals. But before implementing these strategies, they need to consider how the strategies might affect emissions directly, indirectly, or cumulatively, especially in areas already dealing with high pollution.

The state must ensure these strategies don't increase harmful air contaminants and strive to bring more environmental and economic benefits to the state. The board will also create rules on how organizations must follow these market-based strategies while keeping their emissions in check within set limits.

(a)CA Health and Safety Code § 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)CA Health and Safety Code § 38570(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)CA Health and Safety Code § 38570(b)(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)CA Health and Safety Code § 38570(b)(2) Design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants.
(3)CA Health and Safety Code § 38570(b)(3) Maximize additional environmental and economic benefits for California, as appropriate.
(c)CA Health and Safety Code § 38570(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.
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(Added by Stats. 2006, Ch. 488, Sec. 1. Effective January 1, 2007.)

Section § 38571

Explanation

This section of the law requires the state board to create methods for measuring voluntary reductions in greenhouse gas emissions. It also requires the board to establish rules to verify and enforce these reductions, which can help meet the state's greenhouse gas limits. Importantly, the process of creating these methods doesn't have to follow the usual rulemaking procedures.

The state board shall adopt methodologies for the quantification of voluntary greenhouse gas emission reductions. The state board shall adopt regulations to verify and enforce any voluntary greenhouse gas emission reductions that are authorized by the state board for use to comply with greenhouse gas emission limits established by the state board. The adoption of methodologies is exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
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(Added by Stats. 2006, Ch. 488, Sec. 1. Effective January 1, 2007.)

Section § 38574

Explanation

This law says that the state board doesn't have the power to change other state agencies' programs that aim to reduce greenhouse gas emissions.

Nothing in this part or Part 4 (commencing with Section 38560) confers any authority on the state board to alter any programs administered by other state agencies for the reduction of greenhouse gas emissions.
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(Added by Stats. 2006, Ch. 488, Sec. 1. Effective January 1, 2007.)