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, wouldbegin delete requireend deletebegin insert
require, except as provided,end insert at least 3% of the aggregate amount ofbegin insert bulkend insert transportation fuel purchased by state agenciesbegin delete that are buyers of transportation fuelend delete to be procured from very low carbon transportation fuel sources. The bill wouldbegin delete requireend deletebegin insert require, except as provided,end insert the percentage to be increased by 1% each year thereafter until January 1, 2024. The bill would require the Department of General Services to coordinate with state agencies that are buyers of transportation fuel and submit an annual progress report to the Legislature.begin delete 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 delete 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 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),begin delete have not resulted in begin insert can be
15sufficient development of low-carbon transportation fuels.end delete
16enhanced if the state’s purchasing power is used to buy very low
17carbon transportation fuel for its own fleets, providing a reliable
18source of demand for these fuels.end insert
Section begin delete38568end deletebegin insert43870end insert is added to the Health and Safety
20Code, to read:
(a) begin deleteCommencing end deletebegin insertExcept as provided in subdivision
23(e), commencing end insertJanuary 1, 2017, at least 3 percent of the aggregate
24amount ofbegin insert bulkend insert transportation fuel purchased by state agenciesbegin delete that
shall be procured from very low
25are buyers of transportation fuelend delete
P3 1carbon transportation fuelbegin delete sources. Commencingend deletebegin insert sources, and,
2commencingend insert January 1, 2018, the amount of very low carbon
3transportation fuel purchased shall be increased every year, by 1
4percent, until January 1, 2024.
5(b) As used in this section, “very low carbon transportation fuel”
6means a liquid or gaseous transportation fuel having no greater
7than 40 percent of 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.
16(c) This section does not replace or modify any existing fuel
17standards or requirements imposed under the low-carbon fuel
18standard regulation.
19(d) The Legislature may appropriate money from the Greenhouse
20Gas Reduction Fund to state agencies that are buyers of
21transportation fuel to offset any increased costs resulting from the
22purchase of very low carbon transportation fuel.
23(e)
end delete
24begin insert(d)end insert The Department of General Services shall coordinate with
25state agencies that are buyers of transportation fuel and submit to
26the Legislature, consistent with Sectionbegin delete 9795end deletebegin insert 25722.8end insert of the
27begin delete Governmentend deletebegin insert Public Resourcesend insert Code, an annual progress report on
28actions taken pursuant to this section.
29(e) If the Department of General Services, in consultation with
30the chairperson of the state board, makes a determination that
31very low carbon transportation fuel does not perform adequately
32for its intended use or is not available at a reasonable price and
33in a reasonable period of time, the state shall procure very low
34carbon transportation fuel only to the extent feasible.
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