BILL NUMBER: AB 1007	CHAPTERED
	BILL TEXT

	CHAPTER  371
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2005
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2005
	PASSED THE ASSEMBLY  SEPTEMBER 7, 2005
	PASSED THE SENATE  SEPTEMBER 6, 2005
	AMENDED IN SENATE  SEPTEMBER 2, 2005
	AMENDED IN SENATE  AUGUST 30, 2005
	AMENDED IN SENATE  JULY 5, 2005
	AMENDED IN SENATE  JUNE 16, 2005
	AMENDED IN ASSEMBLY  MAY 27, 2005

INTRODUCED BY   Assembly Member Pavley
   (Coauthors: Assembly Members Hancock and Nation)
   (Coauthor: Senator Kehoe)

                        FEBRUARY 22, 2005

   An act to add Article 6.5 (commencing with Section 43865) to
Chapter 4 of Part 5 of Division 26 of the Health and Safety Code,
relating to air pollution.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1007, Pavley  Air quality: alternative fuels.
   Existing law imposes various limitations on emissions of air
contaminants for the control of air pollution from vehicular and
nonvehicular sources. Existing law generally designates the State Air
Resources Board as the state agency with the primary responsibility
for the control of vehicular air pollution.
   This bill would require that, not later than June 30, 2007, the
State Energy Resources Conservation and Development Commission, in
partnership with the state board, and in consultation with specified
state agencies, to develop and adopt a state plan to increase the use
of alternative fuels, as defined.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 6.5 (commencing with Section 43865) is added to
Chapter 4 of Part 5 of Division 26 of the Health and Safety Code, to
read:

      Article 6.5.  Alternative Fuels

   43865.  The Legislature finds and declares all of the following:
   (a) The production, marketing, and use of petroleum fuels in
California causes significant degradation of public health and
environmental quality due to releases of air and water pollutants.
   (b) Clean alternative fuels have the potential to considerably
reduce these impacts and are important strategies for the state to
attain its air and water quality goals.
   (c) Research, development, and commercialization of alternative
fuels in California have the potential to strengthen California's
economy by providing job growth and helping to reduce the state's
vulnerability to petroleum price volatility.
   (d) The State Energy Resources Conservation and Development
Commission and the State Air Resources Board have previously
recommended in their report to the Legislature, "Reducing California'
s Petroleum Dependency" in August 2003, that the state adopt a goal
of 20 percent nonpetroleum fuel use in the year 2020 and 30 percent
in the year 2030.
   43866.  Not later than June 30, 2007, the State Energy Resources
Conservation and Development Commission, in partnership with the
state board, and in consultation with the State Water Resources
Control Board, the Department of Food and Agriculture, and other
relevant state agencies, shall develop and adopt a state plan to
increase the use of alternative transportation fuels.
   (a) The plan shall include an evaluation of alternative fuels on a
full fuel-cycle assessment of emissions of criteria air pollutants,
air toxics, greenhouse gases, water pollutants, and other substances
that are known to damage human health, impacts on petroleum
consumption, and other matters the state board deems necessary.
   (b) The plan shall set goals for the years 2012, 2017, and 2022
for increased alternative fuel use in the state that accomplishes all
of the following:
   (1) Optimizes the environmental and public health benefits of
alternative fuels, including, but not limited to, reductions in
criteria air pollutants, greenhouse gases, and water pollutants
consistent with existing or future state board regulations in the
most cost-effective manner possible.
   (2) Ensures that there is no net material increase in air
pollution, water pollution, or any other substances that are known to
damage human health.
   (3) Minimizes the economic costs to the state, if any.
   (4) Maximizes the economic benefits of producing alternative fuels
in the state.
   (5) Considers issues related to consumer acceptance and costs and
identifies methods to overcome any barriers to alternative fuel use.

   (c) The plan shall recommend policies to ensure alternative fuel
goals are attained, including, but not limited to:
   (1) Standards on transportation fuels and vehicles.
   (2) Requirements, financial incentives, and other policy
mechanisms to ensure that vehicles capable of operating on
alternative fuels use those fuels to the maximum extent feasible.
   (3) Requirements, financial incentives, and other policy
mechanisms to ensure that alternative fuel fueling stations are
available to drivers of alternative fuel vehicles.
   (4) Incentives, requirements, programs, or other mechanisms to
encourage the research, development, demonstration,
commercialization, manufacturing, or production of vehicles that use
alternative fuels.
   43867.  For the purposes of this article, the following terms have
the following meanings:
   (a) "Alternative fuel" means a nonpetroleum fuel, including
electricity, ethanol, biodiesel, hydrogen, methanol, or natural gas
that, when used in vehicles, has demonstrated, to the satisfaction of
the state board, to have the ability to meet applicable vehicular
emission standards. For the purpose of this section, alternative fuel
may also include petroleum fuel blended with nonpetroleum
constituents, such as E85 or B20.
   (b) "Full fuel-cycle assessment" means evaluating and comparing
the full environmental and health impacts of each step in the life
cycle of a fuel, including, but not limited to, all of the following:

   (1) Feedstock extraction, transport, and storage.
   (2) Fuel production, distribution, transport, and storage.
   (3) Vehicle operation, including refueling, combustion or
conversion, and evaporation.