Today's Law As Amended

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AB-638 Fuel resources: State Energy Resources Conservation and Development Commission and State Air Resources Board.(2011-2012)



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 of California overwhelmingly relies on a single source of fuel, petroleum, for its transportation needs, and nearly half of that petroleum comes from overseas. This over-reliance on petroleum leaves Californians vulnerable to supply interruptions and price instabilities, and it leaves consumers with essentially no options for alternative transportation fuels.
(2) Californians spend over 20 billion dollars each year on petroleum fuel imports, representing a significant missed economic opportunity.
(3) A 2003 joint report by the State Energy Resources Conservation and Development Commission and the state board, titled “Reducing California’s Petroleum Dependence,” was adopted pursuant in Section 25720 of the Public Resources Code and outlined a statewide strategy to reduce California’s on-road consumption of petroleum-based fuels. The strategy aims to reduce demand by at least 15 percent below the 2003 level by 2020 and to maintain that demand level, less than 15 billion gasoline gallon equivalents per year, for the foreseeable future. The report includes a recommendation that the Legislature codify this target as a statewide goal.
(4) According to the State Board of Equalization, California’s nonaviation sector consumed 18.7 billion gasoline gallon equivalents in 2003 and 16.6 billion gasoline gallon equivalents in 2010; this represents a 13 percent reduction below the 2003 level.
(5) 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 of the Health and Safety Code, outlined specific strategies that would increase the use of alternative and nonpetroleum fuels. The strategy set a target of 26 percent penetration for alternative fuel use in on-road and off-road vehicles by 2022, projected to be approximately 5.3 billion gasoline gallon equivalents displaced that year.
(6) In 2007, alternative fuels accounted for less than 5 percent of the transportation sector’s consumption.
(7) Therefore, it is in the interest of the state to codify petroleum reduction and alternative fuels usage goals that will help guide California down a path to transportation energy security, improve environmental quality, reduce fuel price volatility, and demonstrate California’s continued leadership in reducing greenhouse gas emissions.
(b) The state board and the State Energy Resources Conservation and Development Commission shall do all of the following:
(1) Coordinate efforts to implement this article and Section 25720 of the Public Resources Code. The state board and the State Energy Resources Conservation and Development Commission may consider synergies between new or existing programs, projects, investments, or regulations that may accelerate attainment or maintenance of the targets.
(2) Adopt polices and regulations to attain the following targets:
(A) By 2020, reduce onroad petroleum fuel use by at least 15 percent below the 2003 level, and maintain that level into the foreseeable future.
(B) By 2022, increase the use of alternative transportation fuels to at least 26 percent of total onroad and offroad vehicle fuel use in the state.
(3) Assess how future guidelines, regulations, and investments, where appropriate, affect the petroleum reduction and alternative fuel usage targets in paragraph (2).
(c) On or before January 1, 2013, the state board and the State Energy Resources Conservation and Development Commission, in consultation with other state and local agencies, as the state board or the commission may deem necessary, shall do all of the following:
(1) Update the economic analysis used in developing and reviewing state regulations to include a range of petroleum fuel prices to more accurately assess the future cost of petroleum-based fuels.
(2) Develop a specific strategy and target for petroleum fuel use reduction in light, medium, heavy-duty, and off-road vehicles.
(3) Identify regulatory and statutory barriers to reaching the petroleum reduction and alternative fuel use targets in paragraph (2) of subdivision (b). The state board and State Energy Resources Conservation and Development Commission shall take any necessary regulatory steps to overcome those barriers on which the state board and the commission have the authority to act.
(d) On or before January 1, 2014, and triennially thereafter, the state board and the State Energy Resources Conservation and Development Commission shall submit a report to the Legislature on progress in reaching the targets in paragraph (2) of subdivision (b). The report shall include, at a minimum, all of the following:
(1) Details as to the quantities of petroleum and alternative fuels used in the state during the preceding year in absolute terms and as a percent of the state’s overall fuel mix.
(2) An analysis of the effects on the state economy of increasing alternative fuel usage and reducing petroleum usage. The analysis shall include costs to the state economy if petroleum prices remain at current levels, or rise to higher levels.
(3) Identification of any new regulatory or statutory barriers to reaching the targets in paragraph (2) of subdivision (b).
(4) An assessment of the effect of proposed regulations or guidelines on petroleum reduction and alternative fuel use in the state.
(e) (1) Notwithstanding Section 10231.5 of the Government Code, the requirement for submitting a report pursuant to subdivision (d) shall become inoperative on January 1, 2024.
(2) A report to be submitted pursuant to subdivision (d) shall be submitted in compliance with Section 9795 of the Government Code.
(3) A report required pursuant to subdivision (d) may be developed and submitted in conjunction with any other report or study that the state board or the State Energy Resources Conservation and Development Commission submits to the Legislature, as the state board and the commission may determine to be appropriate.