Existing law, the California Global Warming Solutions Act of 2006 (Act) requires the State Air Resources Board (ARB) to ensure that statewide greenhouse gas (GHG) emissions are reduced to at least 40% below the 1990 level by 2030. Under the act, a violation of a rule, regulation, order, emission limitation, emission reduction measure, or other measure adopted by the ARB under the Act is a crime.
Existing law requires the ARB, by July 1, 2023, to develop a comprehensive strategy for the state’s cement sector to achieve net-zero emissions of GHGs associated with cement used within the state as soon as possible, but no later than December 31, 2045. Existing law, effective January 1, 2023, requires the ARB, by July 1, 2025, to develop, in consultation with specified stakeholders, a framework for measuring and then reducing the average carbon intensity of the materials used in the construction of new buildings, including those for residential uses.
This bill would require the ARB to establish an embodied carbon trading system and would make it applicable to building materials providers, developers, architectural and engineering firms, and construction companies. The bill would require the ARB to integrate the embodied carbon trading system into the framework on or before December 31, 2026, and to implement the system on and after January 1, 2029.
The bill would require the ARB to adopt rules and regulations for the credit allocation method, the anticipated carbon price in the scheme, and trading periods, and would make a violation of a rule, regulation, order, emission limitation, emissions reduction measure, or other measure adopted by the ARB pursuant to these and other requirements of the bill an emission of an air contaminant for the purposes of the penalty provisions of the Act. The bill would also require the ARB to periodically review and update its emission reporting requirements, as necessary.
Committee Location: Assembly Natural Resources