12894
. (a) (1) The Legislature finds and declares that the
establishment of nongovernmental entities, such as the Western
Climate Initiative, Incorporated, and linkages with other states and
countries by the State Air Resources Board or other state agencies
for the purposes of implementing Division 25.5 (commencing with
Section 38500) of the Health and Safety Code, should be done
transparently and should be independently reviewed by the Attorney
General for consistency with all applicable laws.
(2) The purpose of this section is to establish new oversight and
transparency over any such linkages and related activities undertaken
in relation to Division 25.5 (commencing with Section 38500) of the
Health and Safety Code by the executive agencies in order to ensure
consistency with applicable laws.
(b) (1) The California membership of the board of directors of the
Western Climate Initiative, Incorporated, shall be modified as
follows:
(A) One appointee or his or her designee who shall serve as an ex
officio nonvoting member shall be appointed by the Senate Committee
on Rules.
(B) One appointee or his or her designee who shall serve as an ex
officio nonvoting member shall be appointed by the Speaker of the
Assembly.
(C) The Chairperson of the State Air Resources Board or her or his
designee.
(D) The Secretary for Environmental Protection or his or her
designee.
(2) Sections 11120 through 11132 do not apply to the Western
Climate Initiative, Incorporated, or to appointees specified in
subparagraphs (C) and (D) of paragraph (1) when performing their
duties under this section.
(c) The State Air Resources Board shall provide notice to the
Joint Legislative Budget Committee, consistent with that required for
Department of Finance augmentation or reduction authorizations
pursuant to subdivision (e) of Section 28.00 of the annual Budget
Act, of any funds over one hundred fifty thousand dollars ($150,000)
provided to the Western Climate Initiative, Incorporated, or its
derivatives or subcontractors no later than 30 days prior to transfer
or expenditure of these funds.
(d) The Chairperson of the State Air Resources Board and the
Secretary for Environmental Protection, as the California voting
representatives on the Western Climate Initiative, Incorporated,
shall report every six months to the Joint Legislative Budget
Committee on any actions proposed by the Western Climate Initiative,
Incorporated, that affect California state government or entities
located within the state.
(e) For purposes of this section, "link," "linkage," or "linking"
means an action taken by the State Air Resources Board or any other
state agency that will result in acceptance by the State of
California of compliance instruments issued by any other governmental
agency, including any state, province, or country, for purposes of
demonstrating compliance with the market-based compliance mechanism
established pursuant to Division 25.5 (commencing with Section 38500)
of the Health and Safety Code and specified in Sections 95801 to
96022, inclusive, of Title 17 of the California Code of Regulations.
(f) A state agency, including, but not limited to, the State Air
Resources Board, shall not link a market-based compliance mechanism
established pursuant to Division 25.5 (commencing with Section 38500)
of the Health and Safety Code and specified in Sections 95801 to
96022, inclusive, of Title 17 of the California Code of Regulations
with any other state, province, or country unless the state agency
notifies the Governor that the agency intends to take such action and
the Governor, acting in his or her independent capacity, makes all
of the following findings:
(1) The jurisdiction with which the state agency proposes to link
has adopted program requirements for greenhouse gas reductions,
including, but not limited to, requirements for offsets, that are
equivalent to or stricter than those required by Division 25.5
(commencing with Section 38500) of the Health and Safety Code.
(2) Under the proposed linkage, the State of California is able to
enforce Division 25.5 (commencing with Section 38500) of the Health
and Safety Code and related statutes, against any entity subject to
regulation under those statutes, and against any entity located
within the linking jurisdiction to the maximum extent permitted under
the United States and California Constitutions.
(3) The proposed linkage provides for enforcement of applicable
laws by the state agency or by the linking jurisdiction of program
requirements that are equivalent to or stricter than those required
by Division 25.5 (commencing with Section 38500) of the Health and
Safety Code.
(4) The proposed linkage and any related participation of the
State of California in Western Climate Initiative, Incorporated,
shall not impose any significant liability on the state or any state
agency for any failure associated with the linkage.
(g) The Governor shall issue findings pursuant to subdivision (f)
within 45 days of receiving a notice from a state agency, and shall
provide those findings to the Legislature. The findings shall
consider the advice of the Attorney General. The findings to be
submitted to the Legislature shall not be unreasonably withheld. The
findings shall not be subject to judicial review.