BILL NUMBER: AB 1992	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 20, 2014

   An act to add Section 38568 to the Health and Safety Code,
relating to greenhouse gases.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1992, as amended, Quirk.  California Global Warming Solutions
Act of 2006: very low carbon  liquid  transportation
fuels.
   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 authorize the state board to establish a very low
carbon fuel market commitment program that requires wholesalers,
producers, importers, or any other entity that provides 
liquid  transportation fuel to a retailer or sells 
liquid  transportation fuel to a consumer to  sell
very low carbon liquid transportation fuel, as defined, up to a
specified percentage not to exceed 2% of their fuel sales in the
state. The bill would authorize the state board to declare this
authorization inoperative 5 years after achieving the 2% objective
and would require the state board to notify the Secretary of State of
that determination.   include as part of their
transportation fuel sales in the state percentages of very low carbon
transportation fuel, as defined, to be determined by the state
board. These provisions would become inoperative 5 years after the
state board makes a specified notification to the Secretary of State.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Low-carbon  liquid  transportation fuels are
an important element of the state's greenhouse gas reduction policy
and increasing the supply of those fuels will help the state achieve
its greenhouse gas reduction goals.
   (b) Existing incentives for the development of low-carbon 
liquid  transportation fuels, including the Low-Carbon Fuel
Standard regulation (Subarticle 7 (commencing with Section 95480) of
Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of
the California Code of Regulations), the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code), and  AB  
Assembly Bill  118 (Chapter 750 of the Statutes of 2007), have
not resulted in sufficient development of low-carbon  liquid
 transportation fuels.
  SEC. 2.  Section 38568 is added to the Health and Safety Code, to
read:
   38568.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Indirect land use change emission" means the carbon emissions
associated with changes in agricultural activity that result from
the market-mediated effects of using an agricultural commodity that
is a food product as feedstock for the production of the 
liquid  transportation fuel.
   (2) "Very low carbon  liquid  transportation fuel"
means a liquid  or gaseous  transportation fuel having no
greater than 50 percent the carbon intensity of the closest
comparable petroleum fuel for that year, as measured by the
methodology in the Low-Carbon Fuel Standard regulation (Subarticle 7
(commencing with Section 95480) of Article 4 of Subchapter 10 of
Chapter 1 of Division 3 of Title 17 of the California Code of
Regulations). The carbon intensity for the  liquid
transportation fuel shall include the indirect land use change
emission if an agricultural commodity that is a food product is used
as a feedstock for the production of the  liquid 
transportation fuel.
   (b) The state board may establish a very low carbon fuel market
commitment program that requires a wholesaler, producer, importer, or
any other entity that provides  liquid 
transportation fuel to a retailer or sells  liquid 
transportation fuel to a consumer to include  no less than
one-quarter of one percent, as measured in energy equivalent units,
with a cap of no more than two percent   as part of its
transportation fuel sales in the state percentages  of very low
carbon  liquid  transportation fuel  as part
of its fuel sales in the state.   to be determined by
the state board and measured in energy equivalent units. The state
board may require percentages of very low carbon transportation fuel
as low as one-quarter of 1 percent or as high as 2 percent. 
   (c) When  the state board determines that  very low
carbon  liquid  transportation fuel sales 
reach two   have reached   2  percent of
all  liquid  transportation  fuel  sales in
the state  , as specified in subdivision (b)  , the
state board shall notify the Secretary of State  that
  and  this section shall be inoperative five years
from that notification.