Assembly Bill No. 32

Passed the Assembly August 31, 2006

Chief Clerk of the Assembly

Passed the Senate August 30, 2006

Secretary of the Senate

This bill was received by the Governor this day

of , 2006, at o’clock m.

Private Secretary of the Governor

CHAPTER

An act to add Division 25.5 (commencing with Section 38500)to the Health and Safety Code, relating to air pollution.

legislative counsel’s digest

AB 32, Nunez. Air pollution: greenhouse gases: CaliforniaGlobal Warming Solutions Act of 2006.

Under existing law, the State Air Resources Board (stateboard), the State Energy Resources Conservation andDevelopment Commission (Energy Commission), and theCalifornia Climate Action Registry all have responsibilities withrespect to the control of emissions of greenhouse gases, asdefined, and the Secretary for Environmental Protection isrequired to coordinate emission reductions of greenhouse gasesand climate change activity in state government.

This bill would require the state board to adopt regulations torequire the reporting and verification of statewide greenhouse gasemissions and to monitor and enforce compliance with thisprogram, as specified. The bill would require the state board toadopt a statewide greenhouse gas emissions limit equivalent tothe statewide greenhouse gas emissions levels in 1990 to beachieved by 2020, as specified. The bill would require the stateboard to adopt rules and regulations in an open public process toachieve the maximum technologically feasible and cost-effectivegreenhouse gas emission reductions, as specified. The bill wouldauthorize the state board to adopt market-based compliancemechanisms, as defined, meeting specified requirements. The billwould require the state board to monitor compliance with andenforce any rule, regulation, order, emission limitation, emissionsreduction measure, or market-based compliance mechanismadopted by the state board, pursuant to specified provisions ofexisting law. The bill would authorize the state board to adopt aschedule of fees to be paid by regulated sources of greenhousegas emissions, as specified.

Because the bill would require the state board to establishemissions limits and other requirements, the violation of which

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would be a crime, this bill would create a state-mandated localprogram.

The California Constitution requires the state to reimburselocal agencies and school districts for certain costs mandated bythe state. Statutory provisions establish procedures for makingthat reimbursement.

This bill would provide that no reimbursement is required bythis act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. Division 25.5 (commencing with Section38500) is added to the Health and Safety Code, to read:

DIVISION 25.5. CALIFORNIA GLOBAL WARMINGSOLUTIONS ACT OF 2006

PART 1. GENERAL PROVISIONS

Chapter 1. Title of Division

38500. This division shall be known, and may be cited, as theCalifornia Global Warming Solutions Act of 2006.

Chapter 2. Findings and Declarations

38501. The Legislature finds and declares all of thefollowing:

(a)  Global warming poses a serious threat to the economicwell-being, public health, natural resources, and the environmentof California. The potential adverse impacts of global warminginclude the exacerbation of air quality problems, a reduction inthe quality and supply of water to the state from the Sierrasnowpack, a rise in sea levels resulting in the displacement ofthousands of coastal businesses and residences, damage tomarine ecosystems and the natural environment, and an increasein the incidences of infectious diseases, asthma, and other humanhealth-related problems.

(b)  Global warming will have detrimental effects on some ofCalifornia’s largest industries, including agriculture, wine,

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tourism, skiing, recreational and commercial fishing, andforestry. It will also increase the strain on electricity suppliesnecessary to meet the demand for summer air-conditioning in thehottest parts of the state.

(c)  California has long been a national and international leaderon energy conservation and environmental stewardship efforts,including the areas of air quality protections, energy efficiencyrequirements, renewable energy standards, natural resourceconservation, and greenhouse gas emission standards forpassenger vehicles. The program established by this division willcontinue this tradition of environmental leadership by placingCalifornia at the forefront of national and international efforts toreduce emissions of greenhouse gases.

(d)  National and international actions are necessary to fullyaddress the issue of global warming. However, action taken byCalifornia to reduce emissions of greenhouse gases will havefar-reaching effects by encouraging other states, the federalgovernment, and other countries to act.

(e)  By exercising a global leadership role, California will alsoposition its economy, technology centers, financial institutions,and businesses to benefit from national and international effortsto reduce emissions of greenhouse gases. More importantly,investing in the development of innovative and pioneeringtechnologies will assist California in achieving the 2020statewide limit on emissions of greenhouse gases established bythis division and will provide an opportunity for the state to takea global economic and technological leadership role in reducingemissions of greenhouse gases.

(f)  It is the intent of the Legislature that the State AirResources Board coordinate with state agencies, as well asconsult with the environmental justice community, industrysectors, business groups, academic institutions, environmentalorganizations, and other stakeholders in implementing thisdivision.

(g)  It is the intent of the Legislature that the State AirResources Board consult with the Public Utilities Commission inthe development of emissions reduction measures, includinglimits on emissions of greenhouse gases applied to electricity andnatural gas providers regulated by the Public UtilitiesCommission in order to ensure that electricity and natural gas

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providers are not required to meet duplicative or inconsistentregulatory requirements.

(h)  It is the intent of the Legislature that the State AirResources Board design emissions reduction measures to meetthe statewide emissions limits for greenhouse gases establishedpursuant to this division in a manner that minimizes costs andmaximizes benefits for California’s economy, improves andmodernizes California’s energy infrastructure and maintainselectric system reliability, maximizes additional environmentaland economic co-benefits for California, and complements thestate’s efforts to improve air quality.

(i)  It is the intent of the Legislature that the Climate ActionTeam established by the Governor to coordinate the efforts setforth under Executive Order S-3-05 continue its role incoordinating overall climate policy.

Chapter 3. Definitions

38505. For the purposes of this division, the following termshave the following meanings:

(a)  “Allowance” means an authorization to emit, during aspecified year, up to one ton of carbon dioxide equivalent.

(b)  “Alternative compliance mechanism” means an actionundertaken by a greenhouse gas emission source that achievesthe equivalent reduction of greenhouse gas emissions over thesame time period as a direct emission reduction, and that isapproved by the state board. “Alternative compliancemechanism” includes, but is not limited to, a flexible complianceschedule, alternative control technology, a process change, or aproduct substitution.

(c)  “Carbon dioxide equivalent” means the amount of carbondioxide by weight that would produce the same global warmingimpact as a given weight of another greenhouse gas, based on thebest available science, including from the IntergovernmentalPanel on Climate Change.

(d)  “Cost-effective” or “cost-effectiveness” means the cost perunit of reduced emissions of greenhouse gases adjusted for itsglobal warming potential.

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(e)  “Direct emission reduction” means a greenhouse gasemission reduction action made by a greenhouse gas emissionsource at that source.

(f)  “Emissions reduction measure” means programs, measures,standards, and alternative compliance mechanisms authorizedpursuant to this division, applicable to sources or categories ofsources, that are designed to reduce emissions of greenhousegases.

(g)  “Greenhouse gas” or “greenhouse gases” includes all ofthe following gases: carbon dioxide, methane, nitrous oxide,hydrofluorocarbons, perfluorocarbons, and sulfur hexaflouride.

(h)  “Greenhouse gas emissions limit” means an authorization,during a specified year, to emit up to a level of greenhouse gasesspecified by the state board, expressed in tons of carbon dioxideequivalents.

(i)  “Greenhouse gas emission source” or “source” means anysource, or category of sources, of greenhouse gas emissionswhose emissions are at a level of significance, as determined bythe state board, that its participation in the program establishedunder this division will enable the state board to effectivelyreduce greenhouse gas emissions and monitor compliance withthe statewide greenhouse gas emissions limit.

(j)  “Leakage” means a reduction in emissions of greenhousegases within the state that is offset by an increase in emissions ofgreenhouse gases outside the state.

(k)  “Market-based compliance mechanism” means either ofthe following:

(1)  A system of market-based declining annual aggregateemissions limitations for sources or categories of sources thatemit greenhouse gases.

(2)  Greenhouse gas emissions exchanges, banking, credits, andother transactions, governed by rules and protocols establishedby the state board, that result in the same greenhouse gasemission reduction, over the same time period, as directcompliance with a greenhouse gas emission limit or emissionreduction measure adopted by the state board pursuant to thisdivision.

(l)  “State board” means the State Air Resources Board.(m)  “Statewide greenhouse gas emissions” means the total

annual emissions of greenhouse gases in the state, including all

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emissions of greenhouse gases from the generation of electricitydelivered to and consumed in California, accounting fortransmission and distribution line losses, whether the electricityis generated in state or imported. Statewide emissions shall beexpressed in tons of carbon dioxide equivalents.

(n)  “Statewide greenhouse gas emissions limit” or “statewideemissions limit” means the maximum allowable level ofstatewide greenhouse gas emissions in 2020, as determined bythe state board pursuant to Part 3 (commencing with Section38850).

Chapter 4. Role of State Board

38510. The State Air Resources Board is the state agencycharged with monitoring and regulating sources of emissions ofgreenhouse gases that cause global warming in order to reduceemissions of greenhouse gases.

PART 2. MANDATORY GREENHOUSE GAS EMISSIONSREPORTING

38530. (a)  On or before January 1, 2008, the state board shalladopt regulations to require the reporting and verification ofstatewide greenhouse gas emissions and to monitor and enforcecompliance with this program.

(b)  The regulations shall do all of the following:(1)  Require the monitoring and annual reporting of greenhouse

gas emissions from greenhouse gas emission sources beginningwith the sources or categories of sources that contribute the mostto statewide emissions.

(2)  Account for greenhouse gas emissions from all electricityconsumed in the state, including transmission and distributionline losses from electricity generated within the state or importedfrom outside the state. This requirement applies to all retailsellers of electricity, including load-serving entities as defined insubdivision (j) of Section 380 of the Public Utilities Code andlocal publicly owned electric utilities as defined in Section 9604of the Public Utilities Code.

(3)  Where appropriate and to the maximum extent feasible,incorporate the standards and protocols developed by the

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California Climate Action Registry, established pursuant toChapter 6 (commencing with Section 42800) of Part 4 ofDivision 26. Entities that voluntarily participated in theCalifornia Climate Action Registry prior to December 31, 2006,and have developed a greenhouse gas emission reportingprogram, shall not be required to significantly alter theirreporting or verification program except as necessary to ensurethat reporting is complete and verifiable for the purposes ofcompliance with this division as determined by the state board.

(4)  Ensure rigorous and consistent accounting of emissions,and provide reporting tools and formats to ensure collection ofnecessary data.

(5)  Ensure that greenhouse gas emission sources maintaincomprehensive records of all reported greenhouse gas emissions.

(c)  The state board shall do both of the following:(1)  Periodically review and update its emission reporting

requirements, as necessary.(2)  Review existing and proposed international, federal, and

state greenhouse gas emission reporting programs and makereasonable efforts to promote consistency among the programsestablished pursuant to this part and other programs, and tostreamline reporting requirements on greenhouse gas emissionsources.

PART 3. STATEWIDE GREENHOUSE GAS EMISSIONSLIMIT

38550. By January 1, 2008, the state board shall, after one ormore public workshops, with public notice, and an opportunityfor all interested parties to comment, determine what thestatewide greenhouse gas emissions level was in 1990, andapprove in a public hearing, a statewide greenhouse gasemissions limit that is equivalent to that level, to be achieved by2020. In order to ensure the most accurate determination feasible,the state board shall evaluate the best available scientific,technological, and economic information on greenhouse gasemissions to determine the 1990 level of greenhouse gasemissions.

38551. (a)  The statewide greenhouse gas emissions limitshall remain in effect unless otherwise amended or repealed.

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(b)  It is the intent of the Legislature that the statewidegreenhouse gas emissions limit continue in existence and be usedto maintain and continue reductions in emissions of greenhousegases beyond 2020.

(c)  The state board shall make recommendations to theGovernor and the Legislature on how to continue reductions ofgreenhouse gas emissions beyond 2020.

PART 4. GREENHOUSE GAS EMISSIONS REDUCTIONS

38560. The state board shall adopt rules and regulations in anopen public process to achieve the maximum technologicallyfeasible and cost-effective greenhouse gas emission reductionsfrom sources or categories of sources, subject to the criteria andschedules set forth in this part.

38560.5. (a)  On or before June 30, 2007, the state board shallpublish and make available to the public a list of discrete earlyaction greenhouse gas emission reduction measures that can beimplemented prior to the measures and limits adopted pursuant toSection 38562.

(b)  On or before January 1, 2010, the state board shall adoptregulations to implement the measures identified on the listpublished pursuant to subdivision (a).

(c)  The regulations adopted by the state board pursuant to thissection shall achieve the maximum technologically feasible andcost-effective reductions in greenhouse gas emissions from thosesources or categories of sources, in furtherance of achieving thestatewide greenhouse gas emissions limit.

(d)  The regulations adopted pursuant to this section shall beenforceable no later than January 1, 2010.

38561. (a)  On or before January 1, 2009, the state board shallprepare and approve a scoping plan, as that term is understood bythe state board, for achieving the maximum technologicallyfeasible and cost-effective reductions in greenhouse gasemissions from sources or categories of sources of greenhousegases by 2020 under this division. The state board shall consultwith all state agencies with jurisdiction over sources ofgreenhouse gases, including the Public Utilities Commission andthe State Energy Resources Conservation and DevelopmentCommission, on all elements of its plan that pertain to energy

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related matters including, but not limited to, electrical generation,load based-standards or requirements, the provision of reliableand affordable electrical service, petroleum refining, andstatewide fuel supplies to ensure the greenhouse gas emissionsreduction activities to be adopted and implemented by the stateboard are complementary, nonduplicative, and can beimplemented in an efficient and cost-effective manner.

(b)  The plan shall identify and make recommendations ondirect emission reduction measures, alternative compliancemechanisms, market-based compliance mechanisms, andpotential monetary and nonmonetary incentives for sources andcategories of sources that the state board finds are necessary ordesirable to facilitate the achievement of the maximum feasibleand cost-effective reductions of greenhouse gas emissions by2020.

(c)  In making the determinations required by subdivision (b),the state board shall consider all relevant information pertainingto greenhouse gas emissions reduction programs in other states,localities, and nations, including the northeastern states of theUnited States, Canada, and the European Union.

(d)  The state board shall evaluate the total potential costs andtotal potential economic and noneconomic benefits of the planfor reducing greenhouse gases to California’s economy,environment, and public health, using the best availableeconomic models, emission estimation techniques, and otherscientific methods.

(e)  In developing its plan, the state board shall take intoaccount the relative contribution of each source or sourcecategory to statewide greenhouse gas emissions, and the potentialfor adverse effects on small businesses, and shall recommend ade minimis threshold of greenhouse gas emissions below whichemission reduction requirements will not apply.

(f)  In developing its plan, the state board shall identifyopportunities for emission reductions measures from allverifiable and enforceable voluntary actions, including, but notlimited to, carbon sequestration projects and best managementpractices.

(g)  The state board shall conduct a series of public workshopsto give interested parties an opportunity to comment on the plan.The state board shall conduct a portion of these workshops in

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regions of the state that have the most significant exposure to airpollutants, including, but not limited to, communities withminority populations, communities with low-income populations,or both.

(h)  The state board shall update its plan for achieving themaximum technologically feasible and cost-effective reductionsof greenhouse gas emissions at least once every five years.

38562. (a)  On or before January 1, 2011, the state board shalladopt greenhouse gas emission limits and emission reductionmeasures by regulation to achieve the maximum technologicallyfeasible and cost-effective reductions in greenhouse gasemissions in furtherance of achieving the statewide greenhousegas 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 infurtherance of achieving the statewide greenhouse gas emissionslimit, the state board shall do all of the following:

(1)  Design the regulations, including distribution of emissionsallowances where appropriate, in a manner that is equitable,seeks to minimize costs and maximize the total benefits toCalifornia, and encourages early action to reduce greenhouse gasemissions.

(2)  Ensure that activities undertaken to comply with theregulations do not disproportionately impact low-incomecommunities.

(3)  Ensure that entities that have voluntarily reduced theirgreenhouse gas emissions prior to the implementation of thissection receive appropriate credit for early voluntary reductions.

(4)  Ensure that activities undertaken pursuant to theregulations complement, and do not interfere with, efforts toachieve and maintain federal and state ambient air qualitystandards 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 otherbenefits to the economy, environment, and public health.

(7)  Minimize the administrative burden of implementing andcomplying with these regulations.

(8)  Minimize leakage.

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(9)  Consider the significance of the contribution of eachsource or category of sources to statewide emissions ofgreenhouse gases.

(c)  In furtherance of achieving the statewide greenhouse gasemissions limit, by January 1, 2011, the state board may adopt aregulation that establishes a system of market-based decliningannual aggregate emission limits for sources or categories ofsources that emit greenhouse gas emissions, applicable fromJanuary 1, 2012, to December 31, 2020, inclusive, that the stateboard determines will achieve the maximum technologicallyfeasible and cost-effective reductions in greenhouse gasemissions, in the aggregate, from those sources or categories ofsources.

(d)  Any regulation adopted by the state board pursuant to thispart or Part 5 (commencing with Section 38570) shall ensure allof the following:

(1)  The greenhouse gas emission reductions achieved are real,permanent, quantifiable, verifiable, and enforceable by the stateboard.

(2)  For regulations pursuant to Part 5 (commencing withSection 38570), the reduction is in addition to any greenhousegas emission reduction otherwise required by law or regulation,and any other greenhouse gas emission reduction that otherwisewould occur.

(3)  If applicable, the greenhouse gas emission reductionoccurs over the same time period and is equivalent in amount toany direct emission reduction required pursuant to this division.

(e)  The state board shall rely upon the best available economicand scientific information and its assessment of existing andprojected technological capabilities when adopting theregulations required by this section.

(f)  The state board shall consult with the Public UtilitiesCommission in the development of the regulations as they affectelectricity and natural gas providers in order to minimizeduplicative or inconsistent regulatory requirements.

(g)  After January 1, 2011, the state board may reviseregulations adopted pursuant to this section and adopt additionalregulations to further the provisions of this division.

38563. Nothing in this division restricts the state board fromadopting greenhouse gas emission limits or emission reduction

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measures prior to January 1, 2011, imposing those limits ormeasures prior to January 1, 2012, or providing early reductioncredit where appropriate.

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

38565. The state board shall ensure that the greenhouse gasemission reduction rules, regulations, programs, mechanisms,and incentives under its jurisdiction, where applicable and to theextent feasible, direct public and private investment toward themost disadvantaged communities in California and provide anopportunity for small businesses, schools, affordable housingassociations, and other community institutions to participate inand benefit from statewide efforts to reduce greenhouse gasemissions.

PART 5. MARKET-BASED COMPLIANCE MECHANISMS

38570. (a)  The state board may include in the regulationsadopted pursuant to Section 38562 the use of market-basedcompliance mechanisms to comply with the regulations.

(b)  Prior to the inclusion of any market-based compliancemechanism in the regulations, to the extent feasible and infurtherance of achieving the statewide greenhouse gas emissionslimit, the state board shall do all of the following:

(1)  Consider the potential for direct, indirect, and cumulativeemission impacts from these mechanisms, including localizedimpacts in communities that are already adversely impacted byair pollution.

(2)  Design any market-based compliance mechanism toprevent any increase in the emissions of toxic air contaminants orcriteria air pollutants.

(3)  Maximize additional environmental and economic benefitsfor California, as appropriate.

(c)  The state board shall adopt regulations governing howmarket-based compliance mechanisms may be used by regulatedentities subject to greenhouse gas emission limits and mandatory

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emission reporting requirements to achieve compliance with theirgreenhouse gas emissions limits.

38571. The state board shall adopt methodologies for thequantification of voluntary greenhouse gas emission reductions.The state board shall adopt regulations to verify and enforce anyvoluntary greenhouse gas emission reductions that are authorizedby the state board for use to comply with greenhouse gasemission limits established by the state board. The adoption ofmethodologies is exempt from the rulemaking provisions of theAdministrative Procedure Act (Chapter 3.5 (commencing withSection 11340) of Part 1 of Division 3 of Title 2 of theGovernment Code).

38574. Nothing in this part or Part 4 (commencing withSection 38560) confers any authority on the state board to alterany programs administered by other state agencies for thereduction of greenhouse gas emissions.

PART 6. ENFORCEMENT

38580. (a)  The state board shall monitor compliance withand enforce any rule, regulation, order, emission limitation,emissions reduction measure, or market-based compliancemechanism adopted by the state board pursuant to this division.

(b)  (1)  Any violation of any rule, regulation, order, emissionlimitation, emissions reduction measure, or other measureadopted by the state board pursuant to this division may beenjoined pursuant to Section 41513, and the violation is subjectto those penalties set forth in Article 3 (commencing withSection 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, emissionlimitation, emissions reduction measure, or other measureadopted by the state board pursuant to this division shall bedeemed to result in an emission of an air contaminant for thepurposes of the penalty provisions of Article 3 (commencingwith 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 aviolation of any rule, regulation, order, emission limitation, orother emissions reduction measure adopted by the state board

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pursuant to this division into the number of days in violation,where appropriate, for the purposes of the penalty provisions ofArticle 3 (commencing with Section 42400) of Chapter 4 of Part4 of, and Chapter 1.5 (commencing with Section 43025) of Part 5of, Division 26.

(c)  Section 42407 and subdivision (i) of Section 42410 shallnot apply to this part.

PART 7. MISCELLANEOUS PROVISIONS

38590. If the regulations adopted pursuant to Section 43018.5do not remain in effect, the state board shall implementalternative regulations to control mobile sources of greenhousegas emissions to achieve equivalent or greater reductions.

38591. (a)  The state board, by July 1, 2007, shall convene anenvironmental justice advisory committee, of at least threemembers, to advise it in developing the scoping plan pursuant toSection 38561 and any other pertinent matter in implementingthis division. The advisory committee shall be comprised ofrepresentatives from communities in the state with the mostsignificant exposure to air pollution, including, but not limited to,communities with minority populations or low-incomepopulations, or both.

(b)  The state board shall appoint the advisory committeemembers from nominations received from environmental justiceorganizations and community groups.

(c)  The state board shall provide reasonable per diem forattendance at advisory committee meetings by advisorycommittee members from nonprofit organizations.

(d)  The state board shall appoint an Economic and TechnologyAdvancement Advisory Committee to advise the state board onactivities that will facilitate investment in and implementation oftechnological research and development opportunities, including,but not limited to, identifying new technologies, research,demonstration projects, funding opportunities, developing state,national, and international partnerships and technology transferopportunities, and identifying and assessing research andadvanced technology investment and incentive opportunities thatwill assist in the reduction of greenhouse gas emissions. Thecommittee may also advise the state board on state, regional,

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national, and international economic and technologicaldevelopments related to greenhouse gas emission reductions.

38592. (a)  All state agencies shall consider and implementstrategies to reduce their greenhouse gas emissions.

(b)  Nothing in this division shall relieve any person, entity, orpublic agency of compliance with other applicable federal, state,or local laws or regulations, including state air and water qualityrequirements, and other requirements for protecting public healthor the environment.

38593. (a)  Nothing in this division affects the authority ofthe Public Utilities Commission.

(b)  Nothing in this division affects the obligation of anelectrical corporation to provide customers with safe and reliableelectric service.

38594. Nothing in this division shall limit or expand theexisting authority of any district, as defined in Section 39025.

38595. Nothing in this division shall preclude, prohibit, orrestrict the construction of any new facility or the expansion ofan existing facility subject to regulation under this division, if allapplicable requirements are met and the facility is in compliancewith regulations adopted pursuant to this division.

38596. The provisions of this division are severable. If anyprovision of this division or its application is held invalid, thatinvalidity shall not affect other provisions or applications that canbe given effect without the invalid provision or application.

38597. The state board may adopt by regulation, after apublic workshop, a schedule of fees to be paid by the sources ofgreenhouse gas emissions regulated pursuant to this division,consistent with Section 57001. The revenues collected pursuantto this section, shall be deposited into the Air Pollution ControlFund and are available upon appropriation, by the Legislature,for purposes of carrying out this division.

38598. (a)  Nothing in this division shall limit the existingauthority of a state entity to adopt and implement greenhouse gasemissions reduction measures.

(b)  Nothing in this division shall relieve any state entity of itslegal obligations to comply with existing law or regulation.

38599. (a)  In the event of extraordinary circumstances,catastrophic events, or threat of significant economic harm, theGovernor may adjust the applicable deadlines for individual

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regulations, or for the state in the aggregate, to the earliestfeasible date after that deadline.

(b)  The adjustment period may not exceed one year unless theGovernor makes an additional adjustment pursuant to subdivision(a).

(c)  Nothing in this section affects the powers and dutiesestablished in the California Emergency Services Act (Chapter 7(commencing with Section 8550) of Division 1 of Title 2 of theGovernment Code).

(d)  The Governor shall, within 10 days of invokingsubdivision (a), provide written notification to the Legislature ofthe action undertaken.

SEC. 2 No reimbursement is required by this act pursuant toSection 6 of Article XIIIB of the California Constitution becausethe only costs that may be incurred by a local agency or schooldistrict will be incurred because this act creates a new crime orinfraction, eliminates a crime or infraction, or changes thepenalty for a crime or infraction, within the meaning of Section17556 of the Government Code, or changes the definition of acrime within the meaning of Section 6 of Article XIII B of theCalifornia Constitution.

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Approved , 2006

Governor