BILL NUMBER: AB 1813	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 18, 2014

   An act to add Section 38566 to the Health and Safety Code,
relating to greenhouse gases, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1813, as introduced, Quirk. California Global Warming Solutions
Act of 2006: Low-Carbon Fuel Standard.
   The California Global Warming Solutions Act of 2006 establishes
the State Air Resources Board as the state agency responsible for
monitoring and regulating sources emitting greenhouse gases. The act
requires the state board to adopt a statewide greenhouse gas
emissions limit to be achieved by 2020 equivalent to the statewide
greenhouse gas emissions levels of 1990. The state board additionally
is required to adopt rules and regulations in an open public process
to achieve the maximum technologically feasible and cost-effective
greenhouse gas emissions reductions. Pursuant to the act, the state
board has adopted the Low-Carbon Fuel Standard regulations.
   This bill would establish the Fuel Producer Capital Assistance
Program to distribute moneys, upon appropriation by the Legislature,
to liquid-transportation-fuel producers who wish to locate within the
state a large-scale production facility that produces more than
3,000,000 gallons per year, as specified. The bill would establish
the Fuel Producers Capital Assistance Fund and would appropriate
$100,000,000 from the Greenhouse Gas Reduction Fund to implement the
program.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislation finds and declares that low-carbon
liquid transportation fuels are an important element of the state's
greenhouse gas emissions reduction policy and that increasing the
supply of those fuels will help the state achieve its greenhouse gas
emissions reduction goals.
  SEC. 2.  Section 38566 is added to the Health and Safety Code, to
read:
   38566.  (a) The Fuel Producer Capital Assistance Program is hereby
established. Upon appropriation by the Legislature, the state board
shall distribute moneys to liquid-transportation-fuel producers who
wish to locate within the state a large-scale production facility
that produces more than 3,000,000 gallons per year.
   (b) (1) The Fuel Producers Capital Assistance Fund is hereby
established in the State Treasury. Upon appropriation by the
Legislature, moneys in the fund shall be used to implement this
section.
   (2) The sum of one hundred million dollars ($100,000,000) is
hereby appropriated from the Greenhouse Gas Reduction Fund,
established pursuant to Section 16428.8 of the Government Code, to
the state board to implement this section to further the regulatory
purposes of the act.
   (c) A large-scale production facility that receives financial
assistance pursuant to this section shall produce fuels that achieve
both of the following:
   (1) Have an average greenhouse gas intensity that is no greater
than 50 percent of California reformulated gasoline, as determined by
the Low-Carbon Fuel Standard regulations adopted by the state board.

   (2) Do not use food commodities as feedstock.
   (d) The state board may distribute the moneys as, but not limited
to, capital development grants, loan guarantees, or public-private
partnerships.
   (e) The project solicitation and selection process shall be
conducted in a public and transparent manner consistent with the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the
Government Code), the Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code),
and the State Contract Act (Chapter 1 (commencing with Section 10100)
of Part 2 of Division 2 of the Public Contract Code).
   (f) Projects shall be selected for their ability to achieve all of
the following goals:
   (1) Technological potential.
   (2) Cost-effectiveness.
   (3) Potential for the production process to be adopted in other
states and nations.
   (4) Scalability.
   (5) Certainty that the project will produce at a predicted level.
   (6) Ability of the project to repay the initial investment by the
state.