California Global Warming Solutions Act of 2006: market-based compliance mechanisms: utilities.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating greenhouse gas emission sources. The act requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act also requires the state board to adopt regulations to provide for a statewide greenhouse gas emissions limit to be achieved by 2020, equivalent to the statewide greenhouse gas emissions levels in 1990. Existing law authorizes the state board to include market-based compliance mechanisms, as defined, to comply with the regulations. This bill would require any investor-owned utility and any publicly owned utility that is subject to the act to use any proceeds it obtains from the monetization of any greenhouse gas emission allowances for the benefit of ratepayers to reduce rates that are above the cost of service.