Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 692


Introduced by Assembly Member Quirk

February 25, 2015


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

LEGISLATIVE COUNSEL’S DIGEST

AB 692, as amended, Quirk. Low-carbon 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, commencing January 1, 2017, would require the Department of Transportation, the Department of General Services, and any other state agency that is a buyer of transportation fuels to each procurebegin delete an unspecified percentageend deletebegin insert 3%end insert of the total amount of fuel purchased from very low carbon transportation fuel sources. The bill would require the percentage to be increasedbegin insert by 1%end insert each yearbegin delete thereafter.end deletebegin insert thereafter until January 1, 2024. The bill would require each affected agency to annually submit a progress and implementation report to the Legislature between January 1, 2018, and January 1, 2025, and would also require each affected agency to conduct a full evaluation and review of the low-carbon fuel program during 2025, as specified, with a report to be submitted to the Legislature in that regard by January 1, 2026.end insert The bill would definebegin delete low carbonend deletebegin insert low-carbonend insert transportation fuel for these purposes.

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

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares both of the
2following:

3(a) Low-carbon transportation fuels are an important element
4of the state’s greenhouse gas reduction policy and increasing the
5supply of those fuels will help the state achieve its greenhouse gas
6reduction goals.

7(b) Existing incentives for the development of low-carbon
8transportation fuels, including the Low-Carbon Fuel Standard
9regulation (Subarticle 7 (commencing with Section 95480) of
10Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17
11of the California Code of Regulations), the California Global
12Warming Solutions Act of 2006 (Division 25.5 (commencing with
13Section 38500) of the Health and Safety Code), and Assembly Bill
14118 (Chapter 750 of the Statutes of 2007), have not resulted in
15sufficient development of low-carbon transportation fuels.

16

SEC. 2.  

Section 38568 is added to the begin deletePublic Resources end deletebegin insertHealth
17and Safety end insert
Code
, to read:

18

38568.  

(a) Commencing January 1, 2017, the Department of
19Transportation, the Department of General Services, and any other
20state agency that is a buyer of transportation fuels, shall each
21procurebegin delete ____end deletebegin insert 3end insert percent of the total amount of fuel purchased from
22very low carbon transportation fuel sources. Commencing January
231, 2018, the amount of very low carbon fuel purchased shall be
24increased every year, bybegin delete ____end deletebegin insert 1end insert percentbegin insert, until January 1, 2024end insert.

begin insert

25(b) Each affected state agency shall submit, consistent with
26Section 9795 of the Government Code, an annual progress and
27implementation report to the Legislature commencing on January
281, 2018, with the final report to be submitted on January 1, 2025.
29Each affected agency shall conduct a full evaluation and review
30of the low-carbon transportation fuel program during 2025 to
P3    1consider the effectiveness of the program, including a market
2analysis, and shall submit a report to the Legislature in that regard
3on or before January 1, 2026.

end insert
begin delete

4(b)

end delete

5begin insert(c)end insert As used in this section, “very low carbon transportation fuel”
6means a liquid or gaseous transportation fuel having no greater
7than 50 percent the carbon intensity of the closest comparable
8petroleum fuel for that year, as measured by the methodology in
9the low-carbon fuel standard regulation (Subarticle 7 (commencing
10with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of
11Division 3 of Title 17 of the California Code of Regulations). The
12carbon intensity for the transportation fuel shall include the indirect
13land use change emission if an agricultural commodity that is a
14food product is used as a feedstock for the production of the
15transportation fuel.

begin delete

16(c)

end delete

17begin insert(d)end insert This section does not replace or modify any existing fuel
18standards or requirements imposed under the low-carbon fuel
19standard regulation.



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