BILL NUMBER: SB 1455AMENDED 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,commencingon 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 requirethe commission andthe 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 atargetgoal 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 atargetgoal 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 thatthe 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 boardand State Energy Resources Conservation and Development Commissionregulations 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 boardand State Energy Resources Conservation and Development Commissionshall 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.