BILL NUMBER: SB 1675	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 26, 2006
	AMENDED IN SENATE  APRIL 25, 2006
	AMENDED IN SENATE  MARCH 27, 2006

INTRODUCED BY   Senator Kehoe

                        FEBRUARY 24, 2006

   An act to add Section 43836 to  ,  the Health and
Safety Code, relating to vehicular air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1675, as amended, Kehoe  Vehicular air pollution: 
biodiesel blend fuels   renewable diesel fuel  .
   Existing law imposes various limitations on emissions of air
contaminants for the control of air pollution from vehicular and
nonvehicular sources. Existing law generally designates the State Air
Resources Board as the state agency with the primary responsibility
for the control of vehicular air pollution. Existing law permits,
until January 1, 2008, any federal, state, or local agency to utilize
a biodiesel blend fuel consisting of not more than 20% biodiesel in
any retrofitted vehicular or off-road diesel engine certified by the
state board, whether or not biodiesel is expressly identified as a
fuel for use with the retrofit system, as provided.  Existing law
requires the state board to not adopt any regulation that
establishes a specification for motor vehicles fuel unless that
regulation, and a multimedia evaluation, as defined, conducted by
affected agencies and coordinated by   the state board, are
reviewed   by the California Environmental Policy Council.
 Existing law generally provides that a violation of any rule,
regulation, or law relating to air pollution is a crime.
   This bill would require, commencing January 1, 2008, all diesel
fuel sold or offered for sale in the state for use in internal
combustion engines to contain at least 2%  biodiesel
  renewable diesel  fuel, as defined, and,
commencing January 1, 2010, all diesel fuel sold or offered for sale
in the state for use in internal combustion engines to contain at
least 5%  biodiesel   renewable diesel 
fuel. The bill would permit the state board to adopt regulations to
grant exemptions to those requirements under specified circumstances.
The bill would also permit the State Energy Resources Conservation
and Development Commission to temporarily suspend those requirements
if fuel supplies are shown to be inadequate, as provided.
   Because this bill would create new crimes by requiring all diesel
fuel sold or offered for sale in the state to contain specified
percentages of  biodiesel   renewable diesel
 fuel by a certain date, this bill would impose a state-mandated
local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The United States Energy Information Administration ranks
California as second in petroleum consumption among the fifty states.

   (b) As the nation's leading consumer of petroleum for
transportation, California's increasing demand for petroleum and
rapidly growing consumption of gasoline and diesel fuel pose
substantial risks to the state's economy, security and environment.
   (c) Growing instability in global oil supplies and rapidly
increasing demand in China, India, and throughout the world are
likely to increase California's vulnerability to oil supply
disruptions and sudden price increases.
   (d) California's current and projected levels of gasoline and
diesel demand far exceeds California's refinery capacity, which
results in limited competition and increased vulnerability to market
disruptions.
   (e) Cost-effective alternative fuels and advanced technologies are
available today, such as biofuels and hybrid electric vehicles, that
can lessen economic instability caused by high fuel prices and price
spikes, while reducing risks to public health and environmental
degradation caused by increased consumption of petroleum fuel.
   (f)    Biodiesel is a petroleum diesel
substitute and is one such alternative that   Renewable
diesel fuels, including biodiesel, are petroleum diesel substitutes.
Biodiesel  is produced from domestic renewable sources and is
nontoxic, biodegradable, and cleaner burning than petroleum diesel.
   (g) Biodiesel contains no sulfur or aromatics associated with air
pollution, reduces toxic emissions, and reduces emissions of
greenhouse gases.
   (h) It is in the public interest to establish a market for
alternative fuels. By requiring a growing percentage of our fuel
supply to be renewable  biofuel   diesel fuel
 that meets appropriate fuel quality standards, California will
be able to reduce its dependence on imports of foreign oil, improve
the health and quality of life for Californians, and stimulate the
creation of a new industry in California that benefits our farmers
and rural communities.
   (i) In 2004, California fleets used about five million gallons of
biodiesel, and according to the California Energy Commission and the
California Environmental Protection Agency, biodiesel blends as low
as B2 (98 percent diesel and two percent biodiesel) can play an
important role in the introduction of cleaner conventional diesel
fuels and advanced diesel engines, reducing diesel emissions, and
reducing California's dependence on petroleum.
   (j) Today almost all vehicle and engine manufacture's accept using
blends up to B5 (95 percent diesel and 5 percent biodiesel) with
existing diesel engines, provided that the fuel complies with
American Society for Testing and Materials (ASTM) specifications.
   (k) With agricultural surpluses, commodity prices have reached
record lows. Implementing a California renewable diesel standard
would create new markets for California farm products. Economic
conditions are now favorable to utilize domestic surpluses of bio
based oil to enhance the state's energy security.
   SEC. 2.  Section 43836 is added to the Health and Safety Code, to
read:
   43836.  (a) Commencing January 1, 2008, all diesel fuel sold or
offered for sale in the state for use in internal combustion engines,
whether in a mobile or stationary source, shall contain at least 2
percent  biodiesel   renewable diesel 
fuel.
   (b) Commencing January 1, 2010, all diesel fuel sold or offered
for sale in the state for use in internal combustion engines, whether
in a mobile or stationary source, shall contain at least 5 percent
 biodiesel  renewable diesel  fuel.
   (c) By June 1, 2007, the Department of Food and Agriculture shall
submit a feasibility study to the Legislature that assesses the
potential of California to produce  biodiesel  
renewable dies   el  feedstocks.
   (d) The state board may adopt regulations to grant exemptions to
the requirements of subdivisions (a) and (b) if it finds either of
the following:
   (1) That engine performance, engine emissions, fuel systems, or
emission control equipment would be adversely affected by the
standards set forth by subdivisions (a) and (b).
   (2) That the implementation of those subdivisions without the
exemptions would adversely affect the goals for alternative fuels
established pursuant to Article 6.5 (commencing with Section 43865).

   (e) The State Energy Resources Conservation and Development
Commission may temporarily suspend the requirements of subdivisions
(a) and (b)  by regulation if biodiesel   if
renewable diesel  fuel supplies are shown to be inadequate, as
determined by the commission.  
   (f) For purposes of this section, "biodiesel" means a fuel
comprised of mono-alkyl esters of long chain fatty acids derived from
renewable resources including, but not limited to, vegetable oils,
waste grease, or animal fats, and meeting the requirements of the
American Society for Testing and Materials (ASTM) D-6751. 

   (f) For the purposes of this section, "renewable diesel fuel"
means a diesel fuel that meets the state board diesel fuel
requirements and that is either of the following:  
   (1) Biodiesel, which is comprised of mono-alkyl esters of long
chain fatty acids derived from renewable resources including, but not
limited to, vegetable oils, waste grease, or animal fats, meeting
the requirements of the American Society for Testing and Materials
(ASTM) D-6751.  
   (2) Any other diesel fuel produced from eligible renewable sources
and meeting either the requirements of ASTM D-975 or a
state-approved standard promulgated by an American National Standards
Society (ANSI) accredited standards development organization,
including, but not limited to, the Society of Automotive Engineers
(SAE) and ASTM. 
   (g) This section shall be known, and may be cited, as the
California Renewable Diesel Standards Act.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.