BILL ANALYSIS                                                                                                                                                                                                    



                                                                SB 210
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2007-2008 Regular Session
                                           
           BILL NO:    SB 210
           AUTHOR:     Kehoe
           AMENDED:    March 20, 2007
           FISCAL:     Yes               HEARING DATE:     April 23, 2007
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    GREENHOUSE GAS EMISSIONS FUEL STANDARDS

            SUMMARY  :    
           
            Existing law  :

           1) Under the California Global Warming Solutions Act of 2006  
              (CGWSA), requires the State Air Resources Board (ARB) to  
              determine the 1990 statewide greenhouse gas (GHG) emissions  
              level and approve a statewide GHG emissions limit that is  
              the equivalent to that level, to be achieved by 2020.  The  
              ARB must adopt rules and regulations to achieve GHG  
              emission reductions from sources or categories of sources,  
              subject to certain requirements.  (Health and Safety Code  
              38500 et seq.).

           2) Under the Alternative Fuels Law, requires the California  
              Energy Resources Conservation and Development Commission  
              (CEC), in consultation with certain entities, to develop  
              and adopt a state plan by June 30, 2007, to increase the  
              use of alternative transportation fuels and set goals for  
              2012, 2017, and 2022 to increase alternative fuel use in  
              the state that meet certain requirements.  (Health and  
              Safety Code 43865).

           3) Requires the Office of Planning and Research to be the  
              coordinating entity in state government for environmental  
              justice programs and defines "environmental justice" to be  
              "the fair treatment of people of all races, cultures, and  
              incomes with respect to the development, adoption,  
              implementation, and enforcement of environmental laws,  
              regulations, and policies."  (Government Code 65040.12).










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            This bill  enacts the Greenhouse Gas Emissions Fuel Standards  
           Law that:

           1) Requires the ARB to adopt, implement, and enforce a  
              low-carbon fuel standard by January 1, 2010, that achieves  
              GHG emissions reductions, and at least a 10% reduction in  
              GHG emissions in furtherance of the limit established by  
              the CGWSA.

           2) Requires the low-carbon fuel standard to:  a) 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 toxics compounds  
              and particulate matter; b) for diesel fuel, maintain or  
              improve upon emissions reductions and air quality benefits  
              achieved by specified California diesel fuel regulations;  
              and c) ensure that implementing the low-carbon fuel  
              standard does not result in greater impacts on low-income  
              communities and is consistent with environmental justice.

           3) Requires the CEC to update and reissue the Alternative  
              Fuels Law report with additional recommendations by June  
              30, 2009.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, AB 32 (Nunez)  
              Chapter 488, Statutes of 2006, "aimed at reducing  
              California's [GHG] emissions, provides direction and broad  
              authority to the [ARB] to achieve the maximum in  
              technologically feasible and cost-effective reductions in  
              [GHG] emissions."  The author notes that Governor  
              Schwarzenegger issued Executive Order (EO) S-01-07 that  
              calls for "a statewide goal to be established to reduce the  
              carbon intensity of California's transportation fuels by at  
              least 10 percent by 2020" and that SB 210 codifies this  
              provision of the EO "making his directive binding under the  
              law and clarifying that environmental and public health  
              safeguards will be consistent with AB 32."










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            2) Effort to implement EO S-01-07  .  EO S-01-07, dated January  
              18, 2007, provides that "a statewide goal be established to  
              reduce the carbon intensity of California's transportation  
              fuels by at least 10 percent by 2020 ('2020 Target')" and  
              "a Low Carbon Fuel Standard ('LCFS') for transportation  
              fuels be established for California."

           Federal clean air laws require areas with unhealthy levels of  
              ozone, carbon monoxide, nitrogen dioxide, sulfur dioxide,  
              and particulate matter to develop plans, known as State  
              Implementation Plans (SIPs), showing how national ambient  
              air quality standards (NAAQS) will be attained.  SIPs are a  
              compilation of new and previously submitted plans, programs  
              (e.g., modeling, monitoring, permitting), district rules,  
              state regulations and federal controls.  Many of  
              California's SIPs rely on certain control strategies,  
              including emission standards for cars and heavy trucks,  
              fuel regulations, and limits on emissions from consumer  
              products.  ARB is the lead agency for all purposes related  
              to the SIP.  Local air districts and other agencies, such  
              as the Bureau of Automotive Repair, prepare SIP elements  
              and submit them to ARB for review and approval.  ARB  
              forwards SIP revisions to the U.S. Environmental Protection  
              Agency for approval and publication in the Federal  
              Register.

           SB 210 is an effort to respond to the EO by requiring a  
              low-carbon fuel standard by January 1, 2010, that achieves  
              at least a 10% reduction in GHG emissions, in furtherance  
              of the CGWA established limits.  However, the SB 210  
              standards should also be contained in the SIP.

            3) Opposition and support concerns  .  In opposing SB 210,  
              Western States Petroleum Association (WSPA) indicates that  
              this bill creates a separate fuel standard than required  
              under the EO by referring to a GHG reduction rather than  
              reducing carbon intensity of California's transportation  
              fuels by 2020, and prevents the use of any lower carbon  
              intensity or renewable fuel that would result in any  
              emissions increases.











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           Supporters believe this bill will foster cleaner alternative  
              fuels by establishing air quality criteria, and some  
              supporters recommend that this bill also require lifecycle  
              and multimedia analysis, require sustainability review, and  
              clarify that the standard includes heavy-duty and  
              light-duty fuels.

            4) Related legislation  .  AB 747 (Levine) of 2007 also  
              addresses GHG emissions fuel standards.  SB 140 provides  
              for statewide blends of renewable diesel fuel and is  
              similar to SB 1675 (Kehoe) of 2006, which failed on the  
              Assembly Floor (33-40).  SB 494 (Kehoe) enacts the Clean  
              Alternative Fuel and Clean Vehicle Act of 2007 to require  
              certain percentages of new passenger vehicles and  
              light-duty trucks sold in California to be "clean  
              alternative vehicles" (SB 494 is similar to AB 1012  
              (Nation) of 2006, which was vetoed).

            5) Clarification needed  .  The author wants to respond to the  
              concern that the low carbon fuel standard be subject to a  
              lifecycle and multimedia analysis, as well as a  
              sustainability analysis.  In responding to this concern, it  
              would be appropriate to ensure that such an analysis would  
              not conflict with the multimedia analysis required under  
              current law.

           The environmental justice provisions of this bill should be  
              clarified to ensure that adoption, implementation, and  
              enforcement of the low-carbon fuel standard are consistent  
              with environmental justice.

           The requirement to update the Alternative Fuels Law report  
              (page 4, lines 4 to 7) should be contained under that Law,  
              rather than in a separate section as provided under this  
              bill.

            SOURCE  :        Senator Kehoe  

           SUPPORT  :       American Lung Association of California,  
                          California Association of Professional  
                          Scientists, Environment California, Planning  
                          and Conservation League, Sierra Club  










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                          California, Union of Concerned Scientists  

           OPPOSITION  :    California Independent Marketers Association,  
                          California Trucking Association, Western States  
                          Petroleum Association