BILL NUMBER: SB 1455	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Kehoe
   (Principal coauthor: Assembly Member Skinner)

                        FEBRUARY 24, 2012

   An act to add Section 43867.5 to the Health and Safety Code,
relating to vehicular air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1455, as amended, Kehoe. Alternative fuels.
   Existing law requires the State Energy Resources Conservation and
Development Commission, in partnership with the State Air Resources
Board, to develop and adopt a state plan to increase the use of
alternative transportation fuels.
   This bill would require the commission and the state board, among
other things, to coordinate efforts to implement the state
alternative fuels goal, as specified. The bill would require the
commission and the state board, on or before January 1, 2014, to
update a specified economic analysis, evaluate how the use of new and
existing investment programs could be used to attain the state
alternative transportation fuels goal, and evaluate how the impact of
federal fuel policies and existing state policies will help attain
the state alternative transportation fuels goal. The bill would
require the commission and the state board,  commencing
  on or before  November 1, 2013, and every 2 years
thereafter, to report in the integrated energy policy report, as
specified, the status and implementation of reaching the state
alternative transportation fuels goals, as specified  , and make
specified evaluations  . The bill would require  the
commission and  the state board to include a finding on the
effect of proposed regulations related to the state alternative
transportation fuels goal.
   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.  Section 43867.5 is added to the Health and Safety Code,
to read:
   43867.5.  (a) The Legislature finds and declares all of the
following:
   (1) The state overwhelmingly relies on a single source of fuel,
petroleum, for its transportation needs, and nearly one-half of that
petroleum comes from overseas. This overreliance on petroleum leaves
residents vulnerable to supply interruptions and price instabilities,
and it leaves consumers with essentially no options for alternative
transportation fuels.
   (2) Residents spend over twenty billion dollars ($20,000,000,000)
each year on petroleum fuel imports, representing a significant
missed economic opportunity.
   (3) The "State Alternative Fuels Plan," which was adopted by the
state board and the State Energy Resources Conservation and
Development Commission pursuant to Section 43866, outlined specific
strategies  and targets  that would increase the use of
alternative and nonpetroleum fuels. The strategy set a 
target   goal  of 26 percent penetration for
alternative fuel use in on-road and off-road vehicles by 2022. In
2007, alternative fuels accounted for less than 5 percent of the
transportation sector's consumption.
   (4) Therefore, it is in the interest of the state to codify
alternative fuels usage goals that will help guide the state down a
path to transportation energy security, improve environmental
quality, reduce fuel price volatility, and demonstrate the state's
continued leadership in reducing greenhouse gas emissions.
   (b) In order to attain a  target   goal 
of at least 26 percent alternative transportation fuels use for
on-road and off-road vehicles in the state by 2022,  it is
the intent of the Legislature that  the state board and the
State Energy Resources Conservation and Development Commission 
shall  implement the state alternative transportation fuels goal
described in this section.
   (c) The state board and the State Energy Resources Conservation
and Development Commission shall coordinate efforts to implement this
article. Implementation also shall complement existing state and
federal policies and programs.
   (d) On or before January 1, 2014, the state board and the State
Energy Resources Conservation and Development Commission shall do all
of the following:
   (1) Update the economic analysis used in developing and reviewing
state board and State Energy Resources Conservation and
Development Commission  regulations to include a range of
petroleum fuel prices to more accurately assess the future cost of
petroleum-based fuels.
   (2) Evaluate how the use of new and existing investment programs
could be used to attain the state alternative transportation fuels
goal.
   (3) Evaluate how the impact of federal fuel policies and existing
state policies will help attain the state alternative transportation
fuels goal.
   (e) On or before November 1, 2013, and every two years thereafter
consistent with and reported within the integrated energy policy
report, pursuant to Section 25302 of the Public Resources Code, the
state board and the State Energy Resources Conservation and
Development Commission shall report on the status and implementation
of reaching the state alternative transportation fuels goals in
subdivision (b)  and make evaluations required in subdivision (d)
 . The report shall include details as to the quantities of
alternative fuels used in the state during the preceding years in
absolute terms and as a percentage of the state's overall
transportation fuel mix.
   (f) As part of developing relevant new and amended regulations,
the state board  and State Energy Resources Conservation and
Development Commission  shall include a finding on the
effect of proposed regulations related to the state alternative
transportation fuels goal.
   (g) This section shall be implemented consistent with the
environmental, public health, and sustainability considerations
included in Sections 44271 and 44272  , as enacted in Chapter
750 of the Statutes of 2007 . Further, nothing in this
section shall be interpreted to preempt the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500)) or the programs and policies implemented pursuant to that
act.
   (h) The state board and the State Energy Resources Conservation
and Development Commission, in implementing the state alternative
transportation fuels goal, shall seek to achieve all of the
following:
   (1) In-state job creation through the continued development of an
alternative fuels industry in the state.
   (2) Decrease economic vulnerability of residents to future, costly
petroleum fuel price spikes by positioning the state to be an early
adopter of alternative fuels and vehicles.
   (3) Maximize alternative fuel market penetration in nonattainment
areas.
   (4) Increase access to alternative fuels and alternative fuel
vehicles for all residents.