BILL NUMBER: SB 210	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 20, 2007

INTRODUCED BY   Senator Kehoe

                        FEBRUARY 8, 2007

   An act to add Part 5.5 (commencing with Section 38575) to Division
25.5 of the Health and Safety Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 210, as amended, Kehoe. Greenhouse gas emissions: fuel
standard.
   (1) The  California  Global Warming Solutions Act of 2006
designates the State Air Resources Board as the state agency charged
with monitoring and regulating sources of emissions of greenhouse
gases that cause global warming in order to reduce emissions of
greenhouse gases. Under the act, the state board is required to adopt
a statewide greenhouse gas emissions limit equivalent to the
statewide greenhouse gas emissions levels in 1990 to be achieved by
2020, as specified, and requires the state board to adopt rules and
regulations in an open public process to achieve the maximum
technologically feasible and cost-effective greenhouse gas emission
reductions, as specified. The act authorizes the state board to adopt
market-based compliance mechanisms, as defined, meeting specified
requirements. The act makes violations of measures adopted by the
state board punishable as a crime.
   This bill would require the state board to  develop and
administer a program to reduce the carbon content from transportation
fuels sold and refined in California by 10% by 2020, and would
require the state board to implement a low-carbon fuel standard
applicable to refiners, blenders, producers, and importers of
transportation fuel   adopt, implement, and enforce a
low-carbon fuel standard that achieves the maximum technologically
feasible and cost-effective greenhouse gas emissions reductions, and
at least a 10% reduction in greenhouse gas emissions  . Because
violations of the low-carbon fuel standard would be a crime, the bill
would impose a state-mandated local program. 
   The bill would also require the Public Utilities Commission to
examine and address how investor-owned utilities can contribute to
reductions in greenhouse gas emissions in the transportation sector.

   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California is the 12th largest source of emissions that cause
climate change.
   (b) California's transportation sector accounts for over 40
percent of these emissions.
   (c) The  California  Global Warming Solutions Act of 2006
creates a statewide greenhouse gas emissions limit that would reduce
emissions by 25 percent by the year 2020.
   (d) In order to achieve this reduction goal, approximately 13
million tons of greenhouse gas emissions must be reduced from the
transportation sector, the equivalent of 3 million passenger vehicles
being removed from the road. 
   (e) The State Air Resources Board pursuant to the Global Warming
Solutions Act of 2006 and other laws has broad authority to create
carbon reduction programs. 
  SEC. 2.  Part 5.5 (commencing with Section 38575) is added to
Division 25.5 of the Health and Safety Code, to read:

      PART 5.5.  Greenhouse Gas Emissions Fuel Standards


   38575.  (a) The state board shall develop and administer a program
to reduce the carbon content from transportation fuels sold and
refined in California by 10 percent by 2020.
   (b) The state board shall report to the Governor and the
Legislature by June 30, 2008, and biennially thereafter, on the
progress made toward the goal established in subdivision (a).
 
   38575.5.  As part of its efforts to meet subdivision (a) of
Section 38575, the state board shall implement a low-carbon fuel
standard for transportation fuel to be measured on a full fuels cycle
basis that shall apply to all refiners, blenders, producers, and
importers of transportation fuels in the state.  
   38576.  The Public Utilities Commission shall examine and address
the manner in which investor-owned utilities may contribute to
reductions in greenhouse gas emissions in the transportation sector
by January 1, 2009.  
   38575.  (a) On or before January 1, 2010, the state board shall
adopt, implement, and enforce a low-carbon fuel standard that
achieves the maximum technologically feasible and cost-effective
greenhouse gas emissions reductions, and at least a 10 percent
reduction in greenhouse gas emissions, in furtherance of the limit
established pursuant to Section 38550.
   (b) The low-carbon fuel standard adopted pursuant to this section
shall do all of the following:
   (1) For gasoline, maintain or improve upon emissions reductions
and air quality benefits achieved by the California Phase 2
Reformulated Gasoline Program as of January 1, 1999, including
emissions reductions for all pollutants and precursors identified in
the State Implementation Plan for ozone, and emissions of potency
weighted air toxics compounds and particulate matter.
   (2) For diesel fuel, maintain or improve upon the emissions
reductions and air quality benefits achieved by the California diesel
fuel regulations in Article 2 (commencing with Section 2280) of
Chapter 5 of Division 3 of Title 13 of the California Code of
Regulations.
   (3) Ensure that implementation of the low-carbon fuel standard
does not result in greater impacts on low-income communities and is
consistent with environmental justice as defined in Section 65040.12
of the Government Code. 
    38576.5.   38576.   The State Energy
Resources Conservation and Development Commission shall update 
and reissue  the report prepared pursuant to Section 43866 with
revisions and additional recommendations by June 30, 2009.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.