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AB-1813 California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard.(2013-2014)

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CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1813


Introduced by Assembly Member Quirk

February 18, 2014


An act to add Section 38566 to the Health and Safety Code, relating to greenhouse gases, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1813, as introduced, Quirk. California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard.
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 establish the Fuel Producer Capital Assistance Program to distribute moneys, upon appropriation by the Legislature, to liquid-transportation-fuel producers who wish to locate within the state a large-scale production facility that produces more than 3,000,000 gallons per year, as specified. The bill would establish the Fuel Producers Capital Assistance Fund and would appropriate $100,000,000 from the Greenhouse Gas Reduction Fund to implement the program.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislation finds and declares that low-carbon liquid transportation fuels are an important element of the state’s greenhouse gas emissions reduction policy and that increasing the supply of those fuels will help the state achieve its greenhouse gas emissions reduction goals.

SEC. 2.

 Section 38566 is added to the Health and Safety Code, to read:

38566.
 (a) The Fuel Producer Capital Assistance Program is hereby established. Upon appropriation by the Legislature, the state board shall distribute moneys to liquid-transportation-fuel producers who wish to locate within the state a large-scale production facility that produces more than 3,000,000 gallons per year.
(b) (1) The Fuel Producers Capital Assistance Fund is hereby established in the State Treasury. Upon appropriation by the Legislature, moneys in the fund shall be used to implement this section.
(2) The sum of one hundred million dollars ($100,000,000) is hereby appropriated from the Greenhouse Gas Reduction Fund, established pursuant to Section 16428.8 of the Government Code, to the state board to implement this section to further the regulatory purposes of the act.
(c) A large-scale production facility that receives financial assistance pursuant to this section shall produce fuels that achieve both of the following:
(1) Have an average greenhouse gas intensity that is no greater than 50 percent of California reformulated gasoline, as determined by the Low-Carbon Fuel Standard regulations adopted by the state board.
(2) Do not use food commodities as feedstock.
(d) The state board may distribute the moneys as, but not limited to, capital development grants, loan guarantees, or public-private partnerships.
(e) The project solicitation and selection process shall be conducted in a public and transparent manner consistent with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), the Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), and the State Contract Act (Chapter 1 (commencing with Section 10100) of Part 2 of Division 2 of the Public Contract Code).
(f) Projects shall be selected for their ability to achieve all of the following goals:
(1) Technological potential.
(2) Cost-effectiveness.
(3) Potential for the production process to be adopted in other states and nations.
(4) Scalability.
(5) Certainty that the project will produce at a predicted level.
(6) Ability of the project to repay the initial investment by the state.