Bill Text: CA AB1992 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California Global Warming Solutions Act of 2006: very low carbon transportation fuels.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-06-26 - In committee: Set second hearing. Failed passage. Reconsideration granted. [AB1992 Detail]

Download: California-2013-AB1992-Amended.html

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BILL NUMBER: AB 1992	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 20, 2014

   An act to  amend Section 25741 of the Public Resources
  add Section 38568 to the Health and Safety  Code,
relating to  energy   greenhouse gases  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1992, as amended, Quirk.  Energy: renewable energy
resources.   California Global Warming Solutions Act of
2006: very low carbon liquid 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 would authorize the state board to establish a very low
carbon fuel market commitment program that requires wholesalers,
producers, importers, or any other entity that provides liquid
transportation fuel to a retailer or sells liquid transportation fuel
to a consumer to sell very low carbon liquid transportation fuel, as
defined, up to a specified percentage not to exceed 2% of their fuel
sales in the state. The bill would authorize the state board to
declare this authorization inoperative 5 years after achieving the 2%
objective and would require the state board to notify the Secretary
of State of that determination.  
   Existing law establishes the renewable energy resources program to
increase the amount of electricity generated from eligible renewable
energy resources. Existing law defines various terms for the
purposes of the program.  
   This bill would make a nonsubstantive change to that provision.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Low-carbon liquid 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 liquid
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 AB 118 (Chapter 750 of the
Statutes of 2007), have not resulted in sufficient development of
low-carbon liquid transportation fuels. 
   SEC. 2.    Section 38568 is added to the  
Health and Safety Code   , to read:  
   38568.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Indirect land use change emission" means the carbon emissions
associated with changes in agricultural activity that result from
the market-mediated effects of using an agricultural commodity that
is a food product as feedstock for the production of the liquid
transportation fuel.
   (2) "Very low carbon liquid transportation fuel" means a liquid
transportation fuel having no greater than 50 percent 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 liquid
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 liquid transportation fuel.
   (b) The state board may establish a very low carbon fuel market
commitment program that requires a wholesaler, producer, importer, or
any other entity that provides liquid transportation fuel to a
retailer or sells liquid transportation fuel to a consumer to include
no less than one-quarter of one percent, as measured in energy
equivalent units, with a cap of no more than two percent of very low
carbon liquid transportation fuel as part of its fuel sales in the
state.
   (c) When very low carbon liquid transportation fuel sales reach
two percent of all liquid transportation sales in the state, as
specified in subdivision (b), the state board shall notify the
Secretary of State that this section shall be inoperative five years
from that notification.  
  SECTION 1.    Section 25741 of the Public
Resources Code is amended to read:
   25741.  As used in this chapter, the following terms have the
following meaning:
   (a) "Renewable electrical generation facility" means a facility
that meets all of the following criteria:
   (1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
   (2) The facility satisfies one of the following requirements:
   (A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
of a balancing authority area primarily located within the state.
For purposes of this subparagraph, "balancing authority area" has the
same meaning as defined in Section 399.12 of the Public Utilities
Code.
   (B) The facility has its first point of interconnection to the
transmission network outside the state, within the Western
Electricity Coordinating Council (WECC) service area, and satisfies
all of the following requirements:
   (i) It commences initial commercial operation after January 1,
2005.
   (ii) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
   (iii) It participates in the accounting system to verify
compliance with the renewables portfolio standard once established by
the commission pursuant to subdivision (b) of Section 399.25 of the
Public Utilities Code.
   (C) The facility meets the requirements of clauses (ii) and (iii)
in subparagraph (B), but does not meet the requirements of clause (i)
of subparagraph (B) because it commenced initial operation prior to
January 1, 2005, if the facility satisfies either of the following
requirements:
   (i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
   (ii) Electricity generated by the facility was procured by a
retail seller or local publicly owned electric utility as of January
1, 2010.
   (3) If the facility is outside the United States, it is developed
and operated in a manner that is as protective of the environment as
a similar facility located in the state.
   (4) If eligibility of the facility is based on the use of landfill
gas, digester gas, or another renewable fuel delivered to the
facility through a common carrier pipeline, the transaction for the
procurement of that fuel, including the source of the fuel and
delivery method, satisfies the requirements of Section 399.12.6 of
the Public Utilities Code and is verified pursuant to the accounting
system established by the commission pursuant to 399.25 of the Public
Utilities Code, or a comparable system, as determined by the
commission.
   (b) "Municipal solid waste conversion," as used in subdivision
(a), means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:

   (1) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
   (2) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
   (3) The technology produces no discharges to surface or
groundwaters of the state.
   (4) The technology produces no hazardous wastes.
   (5) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
   (6) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
   (7) The technology meets any other conditions established by the
commission.
   (8) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof that is
authorized to provide solid waste handling services.
   (c) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge required to be collected to
fund renewable energy pursuant to the Reliable Electric Service
Investments Act (Article 15 (commencing with Section 399) of Chapter
2.3 of Part 1 of Division 1 of the Public Utilities Code).
   (d) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
commission.
   (e) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.