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 requirebegin delete the Department of Transportation, the Department of General Services, and any other state agency that is a buyer of transportation fuels to
each procureend deletebegin insert at leastend insert 3% of thebegin delete totalend deletebegin insert aggregateend insert amount ofbegin insert transportationend insert fuel purchasedbegin insert by state agencies that are buyers of transportation fuel to be procuredend insert 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 requirebegin delete each affected agency to annuallyend deletebegin insert
the Department of General Services to coordinate with state agencies that are buyers of transportation fuel andend insert submitbegin delete aend deletebegin insert an annualend insert progressbegin delete and implementationend delete report to thebegin delete 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 deletebegin insert Legislature. The bill would authorize the Legislature to appropriate money from the
Greenhouse Gas Reduction Fund to state agencies that are buyers of transportation fuel to offset any increased costs resulting from the purchase of very low carbon transportation fuel.end insert The bill would define 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:
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 reductionbegin delete policyend deletebegin insert policy,end insert and increasing
5the supply of those fuels will help the state achieve its greenhouse
6gas reduction 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.
Section 38568 is added to the Health and Safety Code,
17to read:
(a) Commencing January 1, 2017,begin delete the Department of begin insert at leastend insert 3 percent of the
19Transportation, the Department of General Services, and any other
20state agency that is a buyer of transportation fuels, shall each
21procureend deletebegin delete totalend deletebegin insert aggregateend insert amount of
P3 1begin insert transportationend insert fuel purchasedbegin insert
by state agencies that are buyers of
2transportation fuel shall be procuredend insert from very low carbon
3transportation fuel sources. Commencing January 1, 2018, the
4amount of very low carbon transportation fuel purchased shall be
5increased every year, by 1 percent, until January 1, 2024.
6(b) Each affected state agency shall submit, consistent with
7Section 9795 of the Government Code, an annual progress and
8implementation
report to the Legislature commencing on January
91, 2018, with the final report to be submitted on January 1, 2025.
10Each affected agency shall conduct a full evaluation and review
11of the low-carbon transportation fuel program during 2025 to
12consider the effectiveness of the program, including a market
13analysis, and shall submit a report to the Legislature in that regard
14on or before January 1, 2026.
15(c)
end delete
16begin insert(b)end insert As used in this section, “very low carbon transportation fuel”
17means a liquid or gaseous transportation fuel having no greater
18than 40 percentbegin insert
ofend insert the carbon intensity of the closest comparable
19petroleum fuel for that year, as measured by the methodology in
20the low-carbon fuel standard regulation (Subarticle 7 (commencing
21with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of
22Division 3 of Title 17 of the California Code of Regulations). The
23carbon intensity for the transportation fuel shall include the indirect
24land use change emission if an agricultural commodity that is a
25food product is used as a feedstock for the production of the
26transportation fuel.
27(d)
end delete
28begin insert(c)end insert This section does not
replace or modify any existing fuel
29standards or requirements imposed under the low-carbon fuel
30standard regulation.
31(d) The Legislature may appropriate money from the
32Greenhouse Gas Reduction Fund to state agencies that are buyers
33of transportation fuel to offset any increased costs resulting from
34the purchase of very low carbon transportation fuel.
35(e) The Department of General Services shall coordinate with
36state agencies that are buyers of transportation fuel and submit
37to the Legislature, consistent with Section 9795 of the Government
P4 1Code, an annual progress report on actions taken pursuant to this
2section.
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