# HEALTH AND SAFETY CODE

SECTION S 38501 , 38510, 38560, 38560.5, 38562, 38580

38501. The Legislature finds and declares all of the following:

(a) Global warming poses a serious threat to the economic

well

- being, public health, natural resources, and the environment of

California. The potential adverse impacts of global warming include

the exacerbation of air quality problems, a reduction in the quality

and supply of water to the state from the Sierra snowpack, a rise in

sea levels resulting in the displacement of thousa nds of coastal

businesses and residences, damage to marine ecosystems and the

natural environment, and an increase in the incidences of infectious

diseases, asthma, and other human health

- related problems.

(b) Global warming will have detrimental effect s on some of

California's largest industries, including agriculture, wine,

tourism, skiing, recreational and commercial fishing, and forestry.

It will also increase the strain on electricity supplies necessary to

meet the demand for summer air

- conditioning in the hottest parts of

the state.

(c) California has long been a national and international leader

on energy conservation and environmental stewardship efforts,

including the areas of air quality protections, energy efficiency

requirements, renewable energy standards, natural resource

conservation, and greenhouse gas emission standards for passenger

vehicles. The program established by this division will continue this

tradition of environmental leadership by placing California at the

forefront of natio nal and international efforts to reduce emissions

of greenhouse gases.

(d) National and international actions are necessary to fully

address the issue of global warming. However, action taken by

California to reduce emissions of greenhouse gases will have

far

- reaching effects by encouraging other states, the federal

government, and other countries to act.

(e) By exercising a global leadership role, California will also

position its economy, tec hnology centers, financial institutions, and

businesses to benefit from national and international efforts to

reduce emissions of greenhouse gases. More importantly, investing in

the development of innovative and pioneering technologies will assist

Califor nia in achieving the 2020 statewide limit on emissions of

greenhouse gases established by this division and will provide an

opportunity for the state to take a global economic and technological

leadership role in reducing emissions of greenhouse gases.

(f) It is the intent of the Legislature that the State Air

Resources Board coordinate with state agencies, as well as consult

with the environmental justice community, industry sectors, business

groups, academic institutions, environmental organizations, a nd other

stakeholders in implementing this division.

(g) It is the intent of the Legislature that the State Air

Resources Board consult with the Public Utilities Commission in the

development of emissions reduction measures, including limits on

emission s of greenhouse gases applied to electricity and natural gas

providers regulated by the Public Utilities Commission in order to

ensure that electricity and natural gas providers are not required tomeet duplicative or inconsistent regulatory requirements.

(h) It is the intent of the Legislature that the State Air

Resources Board design emissions reduction measures to meet the

statewide emissions limits for greenhouse gases established pursuant

to this division in a manner that minimizes costs and maximiz es

benefits for California's economy, improves and modernizes California'

s energy infrastructure and maintains electric system reliability,

maximizes additional environmental and economic co

- benefits for

California, and complements the state's efforts to improve air

quality.

(i) It is the intent of the Legislature that the Climate Action

Team established by the Governor to coordinate the efforts set forth

under Executive Order S

- 3

- 05 continue its role i n coordinating

overall climate policy.

38510. The State Air Resources Board is the state agency charged

with monitoring and regulating sources of emissions of greenhouse

gases that cause global warming in order to reduce emissions of

greenhouse gases.

385 60. 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 schedu les 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 th e

statewide greenhouse gas emissions limit.

(d) The regulations adopted pursuant to this section shall be

enforceable no later than January 1, 2010.

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 fo llowing:

(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 implement ation 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 quali ty 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 categor y 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 follow ing:

(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 gr eenhouse 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

proj ected 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 regulationsadopted pursuant to this section and adopt additional regulations to

further the provisions of this division.

38580 . (a) The state board shall monitor compliance with and

enforce any rule, regulation, order, emission limitation, emissions

reduction measure, or market

- based compliance mechanism adopted by

the state board pursuant to this division.

(b) (1) Any violat ion of any rule, regulation, order, emission

limitation, emissions reduction measure, or other measure adopted by

the state board pursuant to this division may be enjoined pursuant to

Section 41513, and the violation is subject to those penalties set

forth in Article 3 (commencing with Section 42400) of Chapter 4 of

Part 4 of, and Chapter 1.5 (commencing with Section 43025) of Part 5

of, Division 26.

(2) Any violation of any rule, regulation, order, emission

limitation, emissions reduction measure, or ot her measure adopted by

the state board pursuant to this division shall be deemed to result

in an emission of an air contaminant for the purposes of the penalty

provisions of Article 3 (commencing with Section 42400) of Chapter 4

of Part 4 of, and Chapter 1.5 (commencing with Section 43025) of Part

5 of, Division 26.

(3) The state board may develop a method to convert a violation of

any rule, regulation, order, emission limitation, or other emissions

reduction measure adopted by the state board pursuant to this

division into the number of days in violation, where appropriate, for

the purposes of the penalty provisions of Article 3 (commencing with

Section 42400) of Chapter 4 of Part 4 of, and Chapter 1.5

(commencing with Section 43025) of Part 5 of, Division 26.

(c) Section 42407 and subdivision (i) of Section 42410 shall not

apply to this part.