BILL NUMBER: AB 692	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 1, 2015
	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   43870  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
  require, except as provided,  at least 3% of the
aggregate amount of  bulk  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   require,
except as provided,  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.  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, 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.   can be
enhanced if the state's purchasing power is used to buy very low
carbon transportation fuel for its own fleets, providing a reliable
source of demand for these fuels. 
  SEC. 2.  Section  38568   43870  is added
to the Health and Safety Code, to read:
    38568.   43870.   (a) 
Commencing   Except as provided in subdivision (e),
commencing  January 1, 2017, at least 3 percent of the aggregate
amount of  bulk  transportation fuel purchased by state
agencies  that are buyers of transportation fuel 
shall be procured from very low carbon transportation fuel 
sources. Commencing   sources, and, 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) 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.
   (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) 
    (d)  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
  25722.8  of the  Government 
 Public Resources  Code, an annual progress report on
actions taken pursuant to this section. 
   (e) If the Department of General Services, in consultation with
the chairperson of the state board, makes a determination that very
low carbon transportation fuel does not perform adequately for its
intended use or is not available at a reasonable price and in a
reasonable period of time, the state shall procure very low carbon
transportation fuel only to the extent feasible.