BILL NUMBER: SB 1505 CHAPTERED
BILL TEXT
CHAPTER 877
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006
APPROVED BY GOVERNOR SEPTEMBER 30, 2006
PASSED THE SENATE AUGUST 29, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
AMENDED IN ASSEMBLY AUGUST 21, 2006
AMENDED IN ASSEMBLY AUGUST 7, 2006
AMENDED IN ASSEMBLY JUNE 20, 2006
AMENDED IN SENATE MAY 26, 2006
AMENDED IN SENATE APRIL 17, 2006
AMENDED IN SENATE MARCH 28, 2006
INTRODUCED BY Senator Lowenthal
(Coauthors: Assembly Members Lieu and Pavley)
FEBRUARY 23, 2006
An act to add Sections 43868 and 43869 to the Health and Safety
Code, relating to fuel.
LEGISLATIVE COUNSEL'S DIGEST
SB 1505, Lowenthal Fuel: hydrogen alternative fuel.
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. Under existing law, the
state board, in conjunction with other state agencies, is required to
develop and adopt a state plan to increase the use of alternative
fuels, as defined. Existing law also requires retail sellers, as
defined, to procure a specified percentage of electricity generated
by eligible renewable energy resources, as defined, called a
renewables portfolio standard.
This bill would declare the Legislature's intent that, when the
California Hydrogen Highway Blueprint Plan is implemented, it be done
in a clean and environmentally responsible and advantageous manner.
The bill would require the state board to adopt regulations that will
ensure that state funding for the production and use of hydrogen
fuel, as described in the California Hydrogen Highway Blueprint Plan,
contributes to the reduction of greenhouse gas, criteria air
pollutant, and toxic air contaminant emissions, and would require
these regulations to meet minimum requirements, as specified.
The bill would also require the state board to adopt regulations
that are to apply in any year immediately following a 12-month period
in which the mass of hydrogen fuel dispensed in California for
transportation purposes exceeds 3,500 metric tons, to ensure that the
production and direct use of hydrogen fuels for motor vehicles in
the state, including, but not limited to, any hydrogen highway
network that is developed pursuant to the California Hydrogen Highway
Blueprint Plan, contributes to a reduced dependence on petroleum, as
well as reductions in greenhouse gas emissions, criteria air
pollutant emissions, and toxic air contaminant emissions, and would
require these regulations to meet minimum requirements, as specified.
The bill would authorize the state board to increase the
3,500-metric-ton threshold, as specified. The bill would require the
California Environmental Protection Agency's Environmental Justice
Advisory Committee to meet to discuss the production and distribution
of hydrogen fuel in the state, as specified. The bill would require
the agency secretary, in consultation with the state board, to
recommend to the Legislature and the Governor, on or before January
1, 2010, incentives that could be offered to businesses within the
hydrogen fuel industry and consumers to spur the development of clean
sources of hydrogen fuel.
The bill would require these regulations to require providers of
hydrogen fuel for transportation in the state to report to the state
board the annual mass of hydrogen fuel dispensed and the method by
which the dispensed hydrogen was produced and delivered, as
specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) A network of hydrogen production and distribution facilities
for fueling vehicles is developing in California. It is the state's
goal to promote this development of hydrogen infrastructure, in part,
through demonstration projects.
(b) The California Environmental Protection Agency has produced
the California Hydrogen Highway Blueprint Plan as part of the state's
efforts to diversify its sources of transportation fuels available
to California motorists by expanding the network of hydrogen fueling
stations and availability of hydrogen-powered vehicles in the state.
(c) The California Hydrogen Highway Blueprint Plan establishes
initial goals for the greenhouse gas emissions and renewable energy
content of hydrogen produced for use in the hydrogen highway network.
(d) The production of hydrogen fuels for use in vehicles, when
made from renewable sources of energy, emits virtually zero net
greenhouse gases into the atmosphere.
(e) The use of hydrogen fuel in motor vehicles can reduce or, when
used in a fuel cell vehicle, virtually eliminate tailpipe emissions
of criteria pollutants.
(f) Hydrogen fueling stations can reduce onsite evaporative
emissions when compared with today's gasoline fueling stations.
(g) The widespread use of hydrogen fuels in transportation can
reduce California's dependence on petroleum-based fuels, and help
enhance our nation's energy security.
(h) Moving toward a hydrogen-based economy with an emphasis on
hydrogen fuel production from clean, renewable sources could create
thousands of new clean manufacturing and technology jobs for
California residents.
(i) Natural gas, while still an emitter of heat-trapping
greenhouse gases, is cleaner than other fossil fuels, and therefore
is an important part of a transitional strategy to a clean hydrogen
fuel economy.
(j) A hydrogen highway network in the state should produce
hydrogen fuel from clean, renewable sources and reduce greenhouse
gases and other pollutants compared to petroleum-based fuels.
(k) Hydrogen fuel and fuel cell vehicles are a central part of
achieving the state's Zero Emission Vehicle Program.
(l) According to the California Hydrogen Highway Blueprint Plan,
the absence of specific goals for reducing emissions and using
renewable resources to produce hydrogen fuel might actually increase
greenhouse gas and particulate matter emissions relative to petroleum
fueled vehicles.
(m) Hydrogen produced from natural gas or from clean electricity
and used in hydrogen or hydrogen blend vehicles will reduce the
consumption of fossil fuels compared to gasoline vehicles.
SEC. 2. Section 43868 is added to the Health and Safety Code, to
read:
43868. (a) It is the intent of the Legislature that, when the
California Hydrogen Highway Blueprint Plan is implemented, it be done
in a clean and environmentally responsible and advantageous manner.
(b) It is further the intent of the Legislature that the state
board work with other relevant state agencies on the production of
hydrogen, with an emphasis on hydrogen produced from renewable
resources, as part of a strategy to reduce the state's dependence on
petroleum, achieve the state's greenhouse gas emission reduction
targets, and improve air quality for the state's residents.
(c) It is further the intent of the Legislature that the
California Environmental Protection Agency and the state board, as
part of the implementation of the California Hydrogen Highway
Blueprint Plan, include in their priorities the deployment of
hydrogen or clean hydrogen blend fueled transit buses.
(d) It is further the intent of the Legislature that the state
board consider including in a future revision of the California
Hydrogen Highway Blueprint Plan a study to determine the necessary
steps to maximize the production of hydrogen fuel made from eligible
renewable resources.
SEC. 3. Section 43869 is added to the Health and Safety Code, to
read:
43869. The state board shall, no later than July 1, 2008, develop
and, after at least two public workshops, adopt hydrogen fuel
regulations to ensure the following:
(a) That state funding for the production and use of hydrogen
fuel, as described in the California Hydrogen Highway Blueprint Plan,
contributes to the reduction of greenhouse gas emissions, criteria
air pollutant emissions, and toxic air contaminant emissions. The
regulations shall, at a minimum, do all of the following:
(1) Require that, on a statewide basis, well-to-wheel emissions of
greenhouse gases for the average hydrogen powered vehicle fueled by
hydrogen from fueling stations that receive state funds are at least
30 percent lower than emissions for the average new gasoline vehicle
in California when measured on a per-mile basis.
(2) (A) Require that, on a statewide basis, no less than 33.3
percent of the hydrogen produced for, or dispensed by, fueling
stations that receive state funds be made from eligible renewable
energy resources as defined in subdivision (a) of Section 399.12 of
the Public Utilities Code.
(B) If the state board determines that there is insufficient
availability of hydrogen fuel from eligible renewable resources to
meet the 33.3 percent requirement of this paragraph, the state board
may, after at least one public workshop and on a one-time basis,
reduce the requirement by an amount, not to exceed 10 percentage
points, that the state board determines is necessary to result in a
renewable percentage requirement for hydrogen fuel that is
achievable.
(C) If the executive officer of the state board determines that it
is not feasible for a public transit operator to use hydrogen fuel
made from eligible renewable resources, the executive officer may
exempt the operator from the requirements of this paragraph for a
period of not more than five years and may extend the exemption for
up to five additional years.
(3) Prohibit hydrogen fuel producers from counting as a renewable
energy resource, pursuant to paragraph (2), any electricity produced
from sources previously procured by a retail seller and verifiably
counted by the retail seller towards meeting the renewables portfolio
standard obligation, as required by Article 16 (commencing with
Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code.
(4) Require that all hydrogen fuel dispensed from fueling stations
that receive state funds be generated in a manner so that local
well-to-tank emissions of nitrogen oxides plus reactive organic gases
are at least 50 percent lower than well-to-tank emissions of the
average motor gasoline sold in California when measured on an energy
equivalent basis.
(5) Require that well-to-tank emissions of relevant toxic air
contaminants for hydrogen fuel dispensed from fueling stations that
receive state funds be reduced to the maximum extent feasible at each
site when compared to well-to-tank emissions of toxic air
contaminants of the average motor gasoline fuel on an
energy-equivalent basis. In no case shall the toxic emissions be
greater than the emissions from gasoline on an energy equivalent
basis.
(6) Require that providers of hydrogen fuel for transportation in
the state report to the state board the annual mass of hydrogen fuel
dispensed and the method by which the dispensed hydrogen was produced
and delivered.
(7) Authorize the state board, after at least one public workshop,
to grant authority to the executive officer of the state board to
exempt from this subdivision, for a period of no more than five
years, hydrogen dispensing facilities constructed for small
demonstration or temporary purposes. The exemption may be extended on
a case-by-case basis upon a finding that the extension will not harm
public health. The executive officer may limit the total number of
exemptions by geographic region, including by air district, but the
average annual mass of hydrogen dispensed from exempted facilities
shall not exceed 10 percent of the total mass of hydrogen fuel
dispensed for transportation purposes in the state.
(b) That, in any year immediately following a 12-month period in
which the mass of hydrogen fuel dispensed for transportation purposes
in California exceeds 3,500 metric tons, the production and direct
use of hydrogen fuels for motor vehicles in the state, including, but
not limited to, any hydrogen highway network that is developed
pursuant to the California Hydrogen Highway Blueprint Plan,
contributes to a reduced dependence on petroleum, as well as
reductions in greenhouse gas emissions, criteria air pollutant
emissions, and toxic air contaminant emissions. For the purpose of
this subdivision, the regulations, at a minimum, shall do all of the
following:
(1) Require that, on a statewide basis, well-to-wheel emissions of
greenhouse gases for the average hydrogen powered vehicle in
California are at least 30 percent lower than emissions for the
average new gasoline vehicle in California when measured on a
per-mile basis.
(2) Require that, on a statewide basis, no less than 33.3 percent
of the hydrogen produced or dispensed in California for motor
vehicles be made from eligible renewable energy resources as defined
in subdivision (a) of Section 399.12 of the Public Utilities Code.
(3) Prohibit hydrogen fuel producers from counting as a renewable
energy resource, for the purposes of paragraph (2), any electricity
produced from sources previously procured by a retail seller and
verifiably counted by the retail seller towards meeting the
requirements established by the California Renewables Portfolio
Standard Program, as set forth in Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code.
(4) Require that all hydrogen fuel dispensed in California for
motor vehicles be generated in a manner so that local well-to-tank
emissions of nitrogen oxides plus reactive organic gases are at least
50 percent lower than well-to-tank emissions of the average motor
gasoline sold in California when measured on an energy equivalent
basis.
(5) Require that well-to-tank emissions of relevant toxic air
contaminants from hydrogen fuel produced or dispensed in California
be reduced to the maximum extent feasible at each site when compared
to well-to-tank emissions of toxic air contaminants of the average
motor gasoline fuel on an energy-equivalent basis. In no case shall
the toxic emissions from hydrogen fuel be greater than the toxic
emissions from gasoline on an energy-equivalent basis.
(6) Authorize the state board, after at least one public workshop,
to grant authority to the executive officer of the state board to
exempt from this subdivision, for a period of no more than five
years, hydrogen dispensing facilities that dispense an average of no
more than 100 kilograms of hydrogen fuel per month. The exemption may
be extended on a case-by-case basis by the executive officer upon a
finding that the extension will not harm public health. The executive
officer may limit the total number of exemptions by geographic
region, including by air district, but the average annual mass of
hydrogen dispensed statewide from exempted facilities shall not
exceed 10 percent of the total mass of hydrogen fuel dispensed for
transportation purposes in the state.
(7) Authorize the state board, if it determines that reporting is
necessary to facilitate enforcement of the requirements of this
subdivision, to require that providers of hydrogen fuel for
transportation in the state report to the state board the annual mass
of hydrogen fuel dispensed and the method by which the dispensed
hydrogen was produced and delivered.
(c) Notwithstanding subdivision (b), the state board may increase
the 3,500-metric-ton threshold in subdivision (b) by no more than
1,500 metric tons if at least one of the following requirements is
met:
(1) The 3,500-metric-ton threshold is first met prior to January
1, 2011.
(2) The state board determines that the 3,500-metric-ton threshold
has been met primarily due to hydrogen fuel consumed in heavy duty
vehicles.
(3) The state board determines at a public hearing that increasing
the threshold would accelerate the deployment of hydrogen fuel cell
vehicles in the state.
(d) The state board, in consultation with other relevant agencies
as appropriate, shall review the renewable resource requirements
adopted pursuant to paragraphs (2) and (3) of subdivision (a) and
paragraphs (2) and (3) of subdivision (b) every four years and shall
increase the renewable resource percentage requirements if it
determines that it is technologically feasible to do so and will not
substantially hinder the development of hydrogen as a transportation
fuel in a manner that is consistent with this section.
(e) The state board shall review the emission requirements adopted
pursuant to paragraphs (1), (4), and (5) of subdivision (a) and
paragraphs (1), (4), and (5) of subdivision (b) every four years and
shall strengthen the requirements if it determines it is
technologically feasible to do so and will not substantially hinder
the development of hydrogen as a transportation fuel in a manner that
is consistent with this section.
(f) The state board shall produce and periodically update a
handbook to inform and educate motor vehicle manufacturers, hydrogen
fuel producers, hydrogen service station operators, and other
interested parties on how to comply with the requirements set forth
in this section. This handbook shall be made available on the agency'
s Internet Web site on or before July 1, 2009.
(g) The Secretary for Environmental Protection shall convene the
California Environmental Protection Agency's Environmental Justice
Advisory Committee at least once annually to solicit the committee's
comments on the production and distribution of hydrogen fuel in the
state.
(h) The Secretary for Environmental Protection, in consultation
with the state board, shall recommend to the Legislature and the
Governor, on or before January 1, 2010, incentives that could be
offered to businesses within the hydrogen fuel industry and consumers
to spur the development of clean sources of hydrogen fuel.
(i) Unless the context requires otherwise, the definitions set
forth in this subdivision govern the construction of this section:
(1) "Well-to-tank emissions" means emissions resulting from
production of a fuel, including resource extraction, initial
processing, transport, fuel production, distribution and marketing,
and delivery into the fuel tank of a consumer vehicle.
(2) "Well-to-wheel emissions" means emissions resulting from
production of a fuel, including resource extraction, initial
processing, transport, fuel production, distribution and marketing,
and delivery and use in a consumer vehicle.