BILL NUMBER: AB 692	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2015

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 procure  an unspecified percentage   3%
 of the total amount of fuel purchased from very low carbon
transportation fuel sources. The bill would require the percentage to
be increased  by 1%  each year  thereafter.
  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.  The bill
would define  low carbon   low-carbon 
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:

  SECTION 1.  The Legislature finds and declares both of the
following:
   (a) Low-carbon 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
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 Assembly Bill 118 (Chapter 750 of
the Statutes of 2007), have not resulted in sufficient development
of low-carbon transportation fuels.
  SEC. 2.  Section 38568 is added to the  Public Resources
  Health and Safety  Code, to read:
   38568.  (a) Commencing January 1, 2017, the Department of
Transportation, the Department of General Services, and any other
state agency that is a buyer of transportation fuels, shall each
procure  ____   3  percent of the total
amount of fuel purchased from very low carbon transportation fuel
sources. Commencing January 1, 2018, the amount of very low carbon
fuel purchased shall be increased every year, by  ____
  1  percent  , until January 1, 2024  .

   (b) Each affected state agency shall submit, consistent with
Section 9795 of the Government Code, an annual progress and
implementation report to the Legislature commencing on January 1,
2018, with the final report to be submitted on January 1, 2025. Each
affected agency shall conduct a full evaluation and review of the
low-carbon transportation fuel program during 2025 to consider the
effectiveness of the program, including a market analysis, and shall
submit a report to the Legislature in that regard on or before
January 1, 2026.  
   (b) 
    (c)  As used in this section, "very low carbon
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 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 transportation fuel. 
   (c) 
    (d)  This section does not replace or modify any
existing fuel standards or requirements imposed under the low-carbon
fuel standard regulation.