BILL NUMBER: SB 210	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 12, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2007
	AMENDED IN ASSEMBLY  AUGUST 20, 2007
	AMENDED IN ASSEMBLY  JULY 10, 2007
	AMENDED IN SENATE  APRIL 30, 2007
	AMENDED IN SENATE  MARCH 20, 2007

INTRODUCED BY   Senator Kehoe

                        FEBRUARY 8, 2007

   An act to add Section 43866.5 to, and to add Article 7.5
(commencing with Section 43890) to Chapter 4 of Part 5 of Division 26
of, the Health and Safety Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 210, 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.
   This bill would require the state board to adopt, implement, and
enforce a low-carbon fuel standard by regulation that achieves the
maximum technologically feasible and cost-effective reductions in the
carbon intensity of transportation fuels, and at least a 10%
reduction in the carbon intensity of transportation fuels by January
1, 2020, if technologically feasible and cost effective. The
low-carbon fuel standard would apply to all refiners, blenders,
producers, and importers of transportation fuels to the extent
permitted by law. The state board, in consultation with other
specified state agencies, would be required to develop environmental
reporting requirements to be imposed upon those subject to the
low-carbon fuel standard. The State Energy Resources Conservation and
Development Commission would be required to issue a report on the
impacts of the low-carbon fuel standard.
   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 State Energy Resources
Conservation and Development Commission to update and reissue a
specified report on alternative fuels.
   (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.



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.
  SEC. 2.  Section 43866.5 is added to the Health and Safety Code, to
read:
   43866.5.  The State Energy Resources Conservation and Development
Commission shall by June 30, 2010, update and reissue the report
prepared pursuant to Section 43866 with revisions and additional
recommendations.
  SEC. 3.  Article 7.5 (commencing with Section 43890) is added to
Chapter 4 of Part 5 of Division 26 of the Health and Safety Code, to
read:

      Article 7.5.  Greenhouse Gas Emissions Fuel Standard


   43890.  For the purposes of this article, the following terms have
the following meanings:
   (a) "Carbon intensity" means the average full fuel-cycle
greenhouse gas emissions per unit of transportation fuel energy.
   (b) "Full fuel-cycle" means the production, extraction,
cultivation, transportation, and storage of feedstock; the
production, manufacture, distribution, marketing, transportation, and
storage of fuel; and vehicle operation including refueling,
combustion, conversion, and evaporation. The full fuel-cycle includes
transportation of, and use of, water and changes in land use and
land cover associated with feedstock and fuel production.
   43891.  (a) On or before January 1, 2010, the state board shall
adopt, implement, and enforce a low-carbon fuel standard by
regulation that achieves the maximum technologically feasible and
cost-effective reductions in the carbon intensity of transportation
fuels.
   (b) At a minimum, the carbon intensity of transportation fuels
shall be reduced by 10 percent by January 1, 2020, if technologically
feasible and cost effective.
   (c) The low-carbon fuel standard shall apply to all refiners,
blenders, producers, and importers of transportation fuels to the
extent permitted by law.
   (d) The state board shall meet all of the following requirements:
   (1) Ensure that the low-carbon fuel standard maintains or improves
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, or maintains or improves 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.
   (2) Ensure that activities undertaken pursuant to this article
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminant emissions.
   (3) Ensure that the adoption, implementation, and enforcement of
the low-carbon fuel standard is consistent with environmental justice
as defined in Section 65040.12 of the Government Code.
   (4) Account for greenhouse gas emissions on a full fuel-cycle
basis to the extent that reliable information exists, as determined
by the state board. The state board shall periodically update the
methodology for quantifying greenhouse gas emissions on a full
fuel-cycle basis.
   (5) Avoid or mitigate to the maximum extent feasible significant
environmental impacts, if any, associated with implementation of the
low-carbon fuel standard, including avoiding or mitigating
significant environmental impacts from sourcing and producing fuels
used to comply with the low-carbon fuel standard.
   (e) The state board shall update the regulations adopted pursuant
to subdivision (a) as necessary to avoid or mitigate, to the maximum
extent feasible, significant environmental and other impacts
identified in the report prepared pursuant to Section 43894.
   (f) This article is not intended to create any exemptions from any
law or regulation designed to protect the environment.
   (g) The state board shall coordinate the preparation of a
multimedia evaluation pursuant to Section 43830.8 for fuels used to
comply with the low-carbon fuel standard.
   43893.  By January 1, 2010, the state board, in consultation with
appropriate state agencies, shall develop reporting requirements to
be imposed upon those persons or entities subject to the low-carbon
fuel standard. The reporting requirements shall include, but not be
limited to, those factors necessary to quantify full fuel-cycle
greenhouse gas emissions and environmental impacts of fuels subject
to the low-carbon fuel standard. Where possible, the state board
shall develop reporting criteria consistent with international
efforts to quantify full fuel-cycle greenhouse gas emissions and
environmental impacts.
   43894.  (a) By June 30, 2013, the State Energy Resources
Conservation and Development Commission shall issue a report on the
impacts of the low-carbon fuel standard. The report shall be updated
and reissued every three years to take into account new information,
scientific findings, or quantification methods. The commission may
coordinate with other state agencies, universities, or research
institutions to prepare and issue the report. The report shall
include, but not be limited to, all of the following:
   (1) The identification of any significant impacts on species,
habitat, ecosystems, land use, biodiversity, air quality, water
supply and quality, and access to, and production of, food.
   (2) A comparison, on a full fuel-cycle basis, of the significant
impacts associated with the low-carbon fuel standard and
petroleum-based transportation fuels that have been displaced by
fuels used to comply with the low-carbon fuel standard. This
comparison shall include an analysis of any substantial changes in
emissions of pollutants, including toxic emissions, to air, water,
and land in California communities that are currently
disproportionately impacted by the production, handling, and
transportation of petroleum-based fuels.
   (3) Recommendations to mitigate any significant impacts.
   (b) The commission may include the information required by this
section in any updates to the report required by Section 43866.
   43895.  The provisions of this part are severable. If any
provision of this part or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
  SEC.4.  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.