BILL NUMBER: AB 692	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2015
	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 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 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   very 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 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  transportation  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.
   (c) As used in this section, "very low carbon transportation fuel"
means a liquid or gaseous transportation fuel having no greater than
 50   40 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.
   (d) This section does not replace or modify any existing fuel
standards or requirements imposed under the low-carbon fuel standard
regulation.