BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 210
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: kehoe
VERSION: 3/20/07
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: March 27, 2007
SUBJECT:
Low carbon fuel standard
DESCRIPTION:
This bill requires the California Air Resources Board (ARB) to
develop, implement, and enforce a low-carbon fuel standard to
reduce the carbon content of transportation fuels in California.
ANALYSIS:
In 2005, the Legislature passed AB 1007 (Pavley), Chapter 371,
which requires the California Energy Resources Conservation and
Development Commission (CEC), in partnership with ARB and other
specified state agencies, to develop and adopt a state plan to
increase the use of alternative transportation fuels, not later
than June 30, 2007.
Last year, the Legislature passed AB 32 (Nunez), Chapter 488, to
establish a statewide greenhouse gas emissions limit such that
by 2020 California reduces its greenhouse gas emissions to the
level they were in 1990.
In January of this year, Governor Schwarzenegger issued
Executive Order S-01-07 in which he ordered the establishment of
a statewide goal of reducing the carbon intensity of
California's transportation fuels by at least 10 percent by 2020
and ordered ARB to establish a low-carbon fuel standard for the
state. ARB is in the initial planning stages of implementing the
Governor's executive order and expects to have completed its low
carbon fuel standard by December 2008.
Existing law defines "environmental justice" for the purposes of
the development, adoption, implementation, and enforcement of
environmental laws, regulations, and policies as "the fair
treatment of people of all races, cultures, and incomes."
SB 210 (KEHOE) Page 2
This bill :
1)Makes findings and declarations.
2)Requires on or before January 1, 2010 that ARB develop,
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 greenhouse gas emissions limit established
in AB 32.
3)Requires that the low-carbon fuel standard shall:
i) For gasoline, maintain or improve upon the emissions
reductions and air quality benefits of California Phase 2
Reformulated Gasoline as of January 1, 1999 (i.e.,
California gasoline prior to the phaseout of MTBE, which
was actually cleaner than the current phase 3 gasoline).
ii) For diesel fuel, maintain or improve upon the
emissions reductions and air quality benefits of CARB
diesel (California's current ultra-low sulfur diesel
fuel).
iii) 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 existing statute.
4)Requires that by June 30, 2009, CEC update and reissue its
state plan to increase the use of alternative transportation
fuels prepared pursuant to AB 1007 (Pavley).
COMMENTS:
1)Purpose . The author introduced this bill to codify a low
carbon fuel standard rather than rely on the executive order,
which lacks the force of law and which any governor could
change or abandon. She notes that with the passage of AB 32
and the Governor's focus on reducing greenhouse gas emissions
from the transportation sector, codifying a low carbon
standard that will result in at least a 10% reduction in these
emissions ensures that the greenhouse gas emissions reduction
targets in AB 32 are met.
SB 210 (KEHOE) Page 3
2)Support with amendments . The American Lung Association, the
Coalition for Clean Air, Environment California, the Planning
and Conservation League, and the Union of Concerned Scientists
submitted a joint letter to the committee urging support for
this bill and recommending amendments to require three
additional criteria for a low carbon fuel standard, as
follows:
i) Require that fuels be evaluated on a lifecycle basis
(source to tailpipe).
ii) Require all fuels and feedstocks be evaluated for
their sustainability.
iii) Clarify that the fuel standard includes heavy-duty
and light-duty fuels.
In their support of the bill, these groups praise the bill for
establishing air quality criteria to ensure that fuels that
qualify as low-carbon fuels also demonstrate air quality
improvements or at least maintain the air quality benefits of
conventional ARB-certified fuels.
3)Arguments in opposition . The Western States Petroleum
Association (WSPA) opposes this bill because it creates a
separate fuel standard from that required under the Governor's
executive order. WSPA notes that the executive order
establishes a goal to reduce the carbon intensity of
California's transportation fuels by 10% by 2020, whereas the
bill requires a fuel standard that would achieve the maximum
technologically feasible and cost-effective greenhouse gas
emissions. In addition, WSPA objects to this bill because it
"would prevent the use of any lower carbon intensity or
renewable fuel that would result in any emissions increases.
Yet, it is well known that most of the renewable fuels being
considered today result in some kind of increase in some
pollutant." WSPA concludes that it is unclear what possible
strategies would allow fuel providers to comply with this
bill's low carbon fuel standard while meeting growing consumer
demand for transportation fuels.
4)Double-referral . The Rules Committee referred this bill to
both the Transportation and Housing Committee and to the
Environmental Quality Committee. Therefore, if this bill
passes this committee, it will be referred to the Committee on
Environmental Quality.
POSITIONS: (Communicated to the Committee before noon on
SB 210 (KEHOE) Page 4
Wednesday, March 21,
2007)
SUPPORT: AFSCME
American Lung Association
California Association of Professional Scientists
Coalition for Clean Air
Environment California
Planning and Conservation League
Union of Concerned Scientists
OPPOSED: Western States Petroleum Association