BILL NUMBER: AB 692 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 2, 2015
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 at least 3% of the total
aggregate amount of transportation
fuel purchased by state agencies that are buyers of
transportation fuel to be procured 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
the Department of Gener al Services to
coordinate with state agencies that are buyers of transportation fuel
and submit a an annual 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. 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. 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:
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
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 at least 3 percent of the total
aggregate amount of transportation
fuel purchased by state agencies that are buyers of
transportation fuel shall be procured 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)
(b) As used in this section, "very low carbon
transportation fuel" means a liquid or gaseous transportation fuel
having no greater than 40 percent of 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)
(c) This section does not replace or modify any
existing fuel standards or requirements imposed under the low-carbon
fuel standard regulation.
(d) The Legislature may 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.
(e) The Department of General Services shall coordinate with state
agencies that are buyers of transportation fuel and submit to the
Legislature, consistent with Section 9795 of the Government Code, an
annual progress report on actions taken pursuant to this section.