California Assembly Bill AB692 Amended / Bill

 BILL NUMBER: AB 692AMENDED 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.