Bill > AB638

This bill adds Section 43867.5 to the Health and Safety Code, establishing statewide goals to reduce California's reliance on petroleum for transportation fuels and increase the use of alternative fuels. The bill declares that California's heavy dependence on petroleum, much of which is imported, makes it vulnerable to supply disruptions and price volatility, and represents a significant economic opportunity cost. It codifies a goal to reduce on-road petroleum fuel use by at least 15 percent below 2003 levels by 2020 and maintain that reduction, and aims to increase the use of alternative transportation fuels to at least 26 percent of total on-road and off-road vehicle fuel use by 2022. The State Board of Equalization and the State Energy Resources Conservation and Development Commission (CEC) are tasked with coordinating efforts, adopting policies and regulations to meet these targets, and assessing how future actions impact them. They are also required to update economic analyses to better account for petroleum fuel price fluctuations, develop specific strategies for petroleum reduction across different vehicle types, and identify and address regulatory barriers. Furthermore, the CEC and the State Board of Equalization will report to the Legislature on progress towards these goals every three years, starting in 2014, detailing fuel usage, economic impacts, and any new barriers, with reporting requirements ceasing in 2024. The bill also removes outdated provisions related to a strategic fuel reserve and prior strategy development from Section 25720 of the Public Resources Code.