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State and Local Climate and Energy Program

California

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Energy Efficiency Actions

Building Codes for Energy Efficiency—Commercial Programs

Status: Goes Beyond ECPA

Details: California issued new building standards on July 17, 2008, which will mandate that all new construction reduce energy use by 15 percent, water use by 20 percent, and water for landscaping by 50 percent. The energy savings in the new standards will come from a combination of more efficient appliances, better insulation, and more efficient windows. The code also will encourage the use of recycled materials in carpets and building materials, identify a number of improvements to air quality, and suggest various site improvements, including parking for hybrid vehicles and better storm water plans. The new language allows localities to adopt tougher standards. The proposed green building code changes will take effect on a voluntary basis on July 1, 2009, and then will become mandatory in 2010. On April 23, 2008, the California Energy Commission (CEC) approved dozens of changes to the state's building energy efficiency standards for new construction, commonly known as Title 24. State developed code, Title 24, Part 6, meets or exceeds ASHRAE/IESNA 90.1-2004, and is mandatory statewide. On October 19, 2007, the California Public Utilities Commission (CPUC) adopted a target that all commercial buildings be energy neutral by 2030.


Building Codes for Energy Efficiency—Residential Programs

Status: Goes Beyond ECPA

Details: California issued new building standards on July 17, 2008, which will mandate that all new construction reduce energy use by 15 percent, water use by 20 percent, and water for landscaping by 50 percent. The energy savings in the new standards will come from a combination of more efficient appliances, better insulation, and more efficient windows. The code also will encourage the use of recycled materials in carpets and building materials, identify a number of improvements to air quality, and suggest various site improvements, including parking for hybrid vehicles and better storm water plans. The new language allows localities to adopt tougher standards. The proposed green building code changes will take effect on a voluntary basis on July 1, 2009, and then will become mandatory in 2010. On April 23, 2008, the California Energy Commission (CEC) approved dozens of changes to the state's building energy efficiency standards for new construction, commonly known as Title 24. On October 19, 2007, the California Public Utilities Commission (CPUC) adopted a target that all homes built in California after 2020 be energy neutral. State developed code, Title 24, Part 6, exceeds 2006 IECC, and is mandatory statewide.


Energy Efficiency Portfolio Standards

Status: Completed

Details: The California Public Utilities Commission (CPUC) on July 31, 2008, set interim electricity and natural gas savings goals for 2012 through 2020 for the state's investor-owned utilities (IOUs). According to the order, IOUs must initially carry 65 percent of the gigawatt-hour responsibility, but that will decrease to 49 percent by 2015 and 47 percent for the last three years of the period, as non-utility efforts take up more of the burden. For therms, the responsibility will start at 58 percent and drop to 31 percent in 2015; it will then be held constant or lowered to 30 percent for the remaining years. On September 20, 2007, the CPUC voted to establish mechanisms to reward or penalize the California investor-owned utilities depending on the extent to which the utilities successfully implement their energy efficiency programs and meet the CPUC's targets for reducing customers' demand for electricity and natural gas. The adopted rules apply to the utilities' energy efficiency programs funded for the 2006 to 2008 and 2009 to 2011 program cycles. Assembly Bill 2021 (signed into law September 29, 2006) requires the Energy Commission to establish statewide annual targets for energy-efficiency savings and demand reductions over ten years, based on a required analysis of all potential electricity and natural gas efficiency savings. SB 1037 (passed September 29, 2005) requires the CPUC to set energy efficiency savings targets based on all plausible cost-effective savings, and requires electrical corporations to acquire all available energy efficiency and demand reduction resources that are cost-effective and reliable when implementing their procurement plans. On September 22, 2005, the CPUC authorized $2 billion for energy efficiency and conservation initiative expected to save ~1500 MW over the next 3 years. It approved funding levels and energy efficiency portfolio plans for PGE, SCE, San Diego Gas & Electric, and Southern California Gas. On September 23, 2004, the California Public Utilities Commission (CPUC) adopted energy saving targets for savings of 6,892 MW of peak power demand and 26,508 million kWh of electricity use reductions by 2013 (representing 12% of peak demand & 10% of electricity use in 2003; Decision 04-09-060).


Public Benefits Funds for Energy Efficiency

Status: Completed

Details: The California PBF is $0.003/kWh, capped at 3% of a customer's bill; the funds are administered by the California Energy Commission and the Public Utilities Commission to support renewable energy and energy efficiency programs, with $913.2 million ($567 million for energy efficiency) available from 2006-2008. In August 2000 the PBF received a 10 year extension with an adjustment for inflation.


State Appliance Efficiency Standards

Status: Completed/Further Work In Progress

Details: The California Energy Commission (CEC) opened Docket Number 08-AAER-1A on August 29, 2008, to amend its Appliance Efficiency Regulations to carry out the mandates established in Assembly Bill 1109. AB 1109, signed October 14, 2007, requires the Energy Commission to adopt energy efficiency standards for general purpose lights, and is expected to phase out the use of incandescent light bulbs in the state. In July 2007, regulations made consumer electronics, such as laptops and cell phones, more energy efficient by limiting the amount of electricity used while electronic devices are on "standby power." Appliance standards went in to effect on April 15, 2005, and were updated in July, 2006. These cover commercial appliances, but also residential clothes washers, fans, refrigerators, freezers, pool heaters, and other residential items.

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Energy Supply Actions

Interconnection Standards—Clean Distributed Generation

Status: Completed

Details: California's interconnection standards for distributed generation (DG) and renewable resources have evolved, culminating in the current version of "Rule 21," which was issued in December 2000. The rules apply to all technologies <=10MW, with small rules for systems <10kW. As of 2007, California treats all DG (i.e., CHP, renewables, and 'other' DG) the same within its interconnection standards.


Interconnection Standards—Net Metering

Status: Completed

Details: Statewide net metering for certain utility types. California's net metering law requires that all three of California's investor-owned electric utilities (PG&E, SCE, and SDG&E), and rural cooperatives, allow net metering for all customer classes for systems up to 1,000 kW (1 MW). The rule covers photovoltaics, landfill gas, wind, anaerobic digestion, and fuel cells. AB 1613, signed October 12, 2007, authorizes the California Public Utilities Commission (CPUC) to expand net metering and require that utilities buy excess power from CHP systems. SB1, signed August 21, 2006, increased the net metering minimum from 0.5% to 2.5%, allowing around 1,200 MW of net metered solar in California.


Output-Based Environmental Regulations

Status: Completed

Details: California has output-based emissions limits for CO2 emissions. All new long-term contracts for baseload generation serving California must come from power plants with emissions no greater than that of a combined cycle gas turbine plant (1,100 lbs of CO2/MWh).


Public Benefit Funds for Clean Energy Supply

Status: Completed

Details: The California Public Benefits Fund is $0.003 cents/kWh, capped at 3% of a customer's bill. The funds are administered by the California Energy Commission and its Public Utilities Commission (CPUC) to support renewable energy and energy efficiency programs with ~$913.2 million ($135.0 million for renewable energy). In August 2000, the Fund received a 10 year extension with an adjustment for inflation. As of 2008, the California Energy Commission (CEC) manages the renewables funds through three programs: the Existing Renewable Facilities Program receives 20% ($14.40 million/year), the Emerging Renewables Program receives 79% ($56.88 million/year), and the Consumer Education Program receives 1% ($720,000/year). Senate Bill 1036, signed by the Governor on October 14, 2007, allows investor-owned utilities to pay above-market prices for power generated by renewable energy projects with revenues collected through a public benefits charge from ratepayers. The bill builds the cost of supplemental energy payments into electric rates and transfers the distribution process from the CEC to the CPUC.


Renewable Portfolio Standards

Status: Completed

Details: California's RPS program requires retail sellers of electricity to increase their sales of eligible renewable-energy resources by at least 1 percent of retail sales per year, so that 20% of their retail sales are served with eligible renewable energy resources by 2010. Governor Schwarzenegger has set a longer-term state goal of 33% by 2020, and currently the California Public Utilities Commission (CPUC) and the California Energy Commission (Energy Commission) are considering ways to achieve that goal. Signed by Governor Schwarzenegger in 2007, AB 809 (2007) allows efficiency measures at hydropower stations under 30 MW to count towards the state's RPS as long as they do not affect streamflow. On June 26, 2007, the California Public Utilities Commission (CPUC) proposed an order (proceeding R0605027) for implementing AB 1969 (2006) that would expand the opportunity to produce renewable energy to all businesses in California. That bill requires investor-owned utilities (IOUs) and certain other retail sellers to allow water and wastewater agencies to sell green power to the electric utilities as part of reaching their target. Executive Order S-06-06 (April 25, 2006) increased targets for ethanol and bio-diesel as part of the existing RPS. The EO requires the state produce a minimum of 20% of the biofuels it consumes by 2010, 40% by 2020, and 75% by 2050. It also requires that biomass-generated electricity makes up 20% of the RPS for 2010 and 2020. Retail electricity providers must increase their procurement of eligible renewable energy resources by at least 1% /yr to reach 20% of sales from eligible renewable energy resources by 2017.

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Power Sector

Advanced Coal Technology

Status: No Activity Identified


CO2 Offset Requirements

Status: No Activity Identified


GHG Performance Standard

Status: Completed

Details: On May 23, 2007, the California Energy Commission (CEC) approved regulations that limit the purchase of electricity from power plants that fail to meet strict GHG emissions standards. These regulations, as part of SB 1368, which became law on August 31, 2006, prohibit the state's publicly owned utilities from entering into long-term financial commitments with plants that exceed 1,100 pounds of CO2 per megawatt-hour. To reduce GHG emissions, SB 1368 directed the CEC, in collaboration with the California Public Utilities Commission (CPUC) and the California Air Resources Board, to establish a GHG emission performance standard for power plants. This standard was reached by evaluating existing combined-cycle natural gas base-load power plants across the West and is the same CO2 measurement approved by the CPUC. On February 16, 2006, the CPUC announced it would develop a cap on GHG emissions for the state's investor-owned utilities (IOUs). The CPUC held workshops in summer 2006 to consider the design of an interim GHG emissions performance standard (EPS) program (Phase I) intended to serve as a near-term bridge to the load-based GHG cap (Phase II) adopted by the Commission in D.06-02-032.


Power Sector GHG Cap and Trade

Status: In Progress

Details: On October 15, 2008, California issued its final draft of an economy-wide plan to cut the state's greenhouse gas emissions to 1990 levels. Central to the Climate Change Draft Scoping Plan is a cap-and-trade program for major emitters that will cover 85% of the state's emissions. California will conduct the program's development in conjunction with the Western Climate Initiative. California is a member of the Western Climate Initiative (WCI). The WCI is a collaboration of seven U.S. governors and four Canadian Premiers that have established a regional goal to reduce aggregate greenhouse gas emissions 15% below 2005 levels by 2020 through a regional market-based multi-sector mechanism. In September 2008, the WCI released Design Recommendations for a regional cap-and-trade system after much stakeholder input. This proposal will be further developed by each WCI partner with the objective of taking the steps necessary to implement the program. The first phase of the cap-and-trade program will begin in 2012, with a three-year compliance period.

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Reporting

GHG Registry

Status: Completed/Further Work In Progress

Details: California is a member of the Western Climate Initiative (WCI), which is considering various options for establishing a GHG registry and reporting system that will require some facilities and sectors to report (and reduce) their GHG emissions. In September 2008, the WCI released Design Recommendations for a regional cap-and-trade system after much stakeholder input. Member of The Climate Registry — a collaboration aimed at developing and managing a common GHG emissions reporting system across states, provinces, and tribes. It will provide an accurate, complete, consistent, transparent, and verified set of GHG emissions data from reporting entities, supported by a robust accounting and verification infrastructure. Members released a final General Reporting Protocol in May 2008. The Climate Registry began accepting data in June 2008. The California Climate Action Registry was established by SB1771. Technical changes were made to the statute in SB527. SB 527 was signed by Governor Gray Davis on October 13, 2001, finalizing the structure for the Registry. AB 32 contains a provision on mandatory GHG reporting that will have implications for the Registry. Under AB 32, entities that voluntarily participated in the Registry prior to December 31, 2006, and have developed a GHG emission reporting program, will not be required to significantly alter their reporting or verification program.


Mandatory GHG Reporting

Status: Completed/Further Work Proposed

Details: On December 6, 2007, the Air Resources Board (ARB) approved a regulation for the mandatory reporting of GHG emissions from major sources, pursuant to the California Global Warming Solutions Act of 2006 (AB 32). As of July 2008, a revised version of the mandatory reporting regulation that incorproates some public comments is available. The Air Resources Board will prepare a Final Statement of Reasons addressing all comments receieved in Summer 2008. California is a member of the Western Climate Initiative (WCI), which is considering various options for establishing a GHG reporting system that will require some facilities and sectors to report (and reduce) their GHG emissions. The WCI unveiled its Design Recommendations for the WCI Regional Cap-and-Trade Program on September 23, 2008.

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State Planning and Incentive Structures

Lead By Example—Clean Energy Goals for Public Facilities

Status: Completed (with caveat)

Details: On October 12, 2007, Governor Schwarzenegger signed AB 532, which extends a previously established deadline requiring the Department of Administration, in consultation with the State Energy Resources Conservation and Development Commission, to install solar energy equipment on all state buildings and state parking facilities where feasible. The deadline is now January 1, 2009 (previously January 1, 2007). AB 532 also requires all new state buildings or parking facilities to install solar energy where feasible if construction begins on or after January 1, 2008. According to the original code - CA Government Code 14684 - installation of solar energy is feasible if there is adequate space on the building and the solar energy equipment is cost-effective.


Lead By Example—Energy Efficiency and Alternative Fuel Goals for Public Fleets

Status: Completed

Details: In Management Memo 08-04, issued March 14, 2008, the Department of General Services and the California Energy Commission established a minimum average fuel economy standard for passenger vehicles and light duty trucks in the state fleet. The combined annual purchases by each state entity must meet a standard of 27.5 miles per gallon (MPG) for passenger vehicles and 22.2 MPG for light duty trucks. Management Memo 06-03 specifies that 75 percent of the state's light duty vehicle purchases shall be Alternative Fuel Vehicles.


Lead By Example—Energy Efficient Appliance and Equipment Purchase Requirements for Public Facilities

Status: Completed

Details: California Executive Order S-20-04 (issued in December 2004) requires all state agencies to purchase ENERGY STAR qualified equipment, whenever cost-effective.


Lead By Example—Energy Efficiency in Public Facilities

Status: Completed

Details: In June 2005, the Governor signed Executive Order S-3-05, which directs the Secretary of the California Environmental Protection Agency to lead a multi-agency effort to meet the Governor's climate change emission reduction targets, which are to reduce greenhouse gas emissions to 2000 levels by 2010, to 1990 levels by 2020, and to 80% below 1990 levels by 2050. CA Executive Order S-20-04, issued in December 2004, requires state agencies and departments to reduce their energy consumption by 20% from 2003 levels by 2015. The order also directs the Division of the State Architect to develop new green design guidelines for public schools. California's Green Building Action Plan, which supplements EO S-20-04, includes specific requirements designed to help the state meet its overall goal, including that all new state buildings and major renovations be designed, constructed, and certified at LEED-NC Silver or higher, that all existing state buildings over 50,000 square feet meet LEED-EB standards no later than 2015, that all state-owned buildings be benchmarked for energy efficiency by 2007, and that state agencies seek leases in ENERGY STAR-rated buildings.


Climate Change Action Plan

Status: Completed

Details: On October 15, 2008, California issued its final draft of an economy-wide plan to cut the state's greenhouse gas emissions to 1990 levels. Central to the plan is a cap-and-trade program for major emitters that will cover 85% of the state's emissions. The plan proposes that utilities produce one third of their energy from renewable energy resources while expanding and strengthening their energy efficiency programs. The draft plan also calls for full implementation of the California Clean Car law and the state's Low Carbon Fuel Standard. On April 3, 2006, the California Climate Action Team (at the direction of Governor Schwarzenegger) completed the Climate Change Action Plan. In addition, the Governors of Washington, Oregon, and California have approved a series of recommendations for action to combat global warming, and directed their staffs to continue working on state and regional goals and strategies to combat global warming.


GHG Inventory

Status: Completed

Details: The California Energy Commission released an update inventory in May 2010, covering emissions estimates from 200 through 2008.


Regional Initiatives

Status: Completed

Details: The state of California, six Mexican border states, Pacific Gas & Electric (PG&E), and the California Climate Action Registry signed a significant climate action pact on August 15, 2008, during the annual Border Governors Conference. The Memorandum of Understanding (MOU) between the parties outlines cooperation between the states, PG&E, and the California Registry to implement offset projects to reduce emissions, create job opportunities on both sides of the border, and create further emissions reduction beyond offset projects. The MOU also includes plans for greenhouse gas emission inventories at the local, state and regional levels, and the adoption of California's low-carbon air quality standard by the Mexican states. In October 2007, California was a signatory to the International Carbon Action Partnership (ICAP) along with two other states and mulitple countries that supporters say confronts head-on the growth of GHG emissions. The goal of the new partnership is to foster information-sharing among countries and states facing climate change. Under a Memorandum of Understanding signed May 30, 2007, California and Ontario agreed to work together to reduce emissions of GHGs. The deal, signed by California Governor Arnold Schwarzenegger and Ontario Premier Dalton McGuinty, calls for the two governments to collaborate to explore potential linkages between regional market-based mechanisms, promote innovation technology, develop a "Low Carbon Fuel Standard" for transportation fuels and explore energy efficiency programs and policies. Member of the Western Climate Initiative. The WCI is a collaboration of seven U.S. governors and four Canadian Premiers that have established a regional goal to reduce aggregate greenhouse gas emissions 15% below 2005 levels by 2020 through a regional market-based multi-sector mechanism. In September 2008, the WCI released Design Recommendations for a regional cap-and-trade system after much stakeholder input. In November 2004, the Governors of Washington, Oregon, and California approved the West Coast Governors' Global Warming Initiative, a series of recommendations to reduce global warming pollution, covering GHG fleet standards, appliance standards, building codes, renewable energy targets.


State Advisory Board

Status: Completed

Details: Governor Arnold Schwarzenegger signed Executive Order S-3-05 on June 1, 2005, which lead to the creation of the California Climate Action Team. The team, composed of representatives from various state agencies, is charged with implementing global warming emission reduction programs and reporting on the progress made toward meeting the statewide greenhouse gas reduction targets.


State and Regional Energy Planning

Status: Completed

Details: On September 18, 2008, the California Public Utilities Commission (CPUC) adopted a long-term energy efficiency strategy that focuses on energy efficiency goals for electricity and natural gas consumption, with targeted efforts for residential and commercial buildings, industries, and farms. California's new "Long Term Energy Efficiency Strategic Plan" aims to have all residential buildings achieve zero net energy use by 2020 and to have all commercial buildings achieve zero net energy use by 2030. The Public Utilities Commissions of four western states adopted a Joint Action Framework on Climate Change on December 1, 2006. California, along with, New Mexico, Oregon, and Washington, will cooperate to develop and use low-carbon technologies and renewable energy resources, while promoting energy efficiency, conservation, and demand response programs. California is also part of the Western Governor's Association (WGA). In June 2006 the Governors signed resolutions to meet or exceed goals of 30,000 MW of clean energy by 2015 and a 20% increase in energy efficiency by 2020, to encourage adequate funding for state energy efficiency and renewable generation programs, and to facilitate development of regional energy markets. In 2003 and in 2005, the CA Energy Commission, the CA Power Authority, and the CA PUC put out the Energy Action Plan (EAP) I and II. The EAPs establishes a "loading order" for energy resources, with energy efficiency and demand response first in the statewide plan; following (in order of preference) are renewable power, distributed generation (including CHP facilities), and clean and efficient fossil-fuel generation. The components of the plan will be executed by Executive Orders, the agencies own regulations, and state legislation.

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Targets and Caps

Lead by Example Target

Status: No Activity Identified


Statewide GHG Cap

Status: Completed/Further Work In Progress

Details: Member of the Western Climate Initiative. The WCI is a collaboration of seven U.S. governors and four Canadian Premiers that have established a regional goal to reduce aggregate greenhouse gas emissions 15% below 2005 levels by 2020 through a regional market-based multi-sector mechanism. In September 2008, the WCI released Design Recommendations for a regional cap-and-trade system after much stakeholder input. AB 32 (California Global Warming Solutions Act of 2006) was signed into law on September 27, 2006. The bill requires GHG emission reductions to 1990 levels by 2020 and tasks the California Air Resource Board (CARB) with adopting regulations to require the reporting and verification of statewide GHG emissions and monitoring and enforcing compliance with this program. The bill authorizes, but does not require, the use of market-based compliance mechanisms. CARB's reporting regulations are available for public comment until June 5, 2008. Its determination of baseline statewide GHG emissions is also available. The emission regulations will become effective January 1, 2012.


Statewide GHG Target

Status: Completed

Details: Member of the Western Climate Initiative. The WCI is a collaboration of seven U.S. governors and four Canadian Premiers that have established a regional goal to reduce aggregate greenhouse gas emissions 15% below 2005 levels by 2020 through a regional market-based multi-sector mechanism. In September 2008, the WCI released Design Recommendations for a regional cap-and-trade system after much stakeholder input. California became a member of the WCI partnership in February 2007. On June 1, 2005, Governor Schwarzenegger announced GHG emission reduction targets for California and charged the California Environmental Protection Agency with the coordination of the oversight of efforts to achieve them (Executive Order S-3-05). The reductions targets are: 2000 levels by 2010; 1990 levels by 2020; and 80% below 1990 levels by 2050. AB 32 formalized the second target (1990 levels by 2020).

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Transportation Sector

GHG Auto Standards

Status: In Progress

Details: On May 21, 2008, the Senate Environment and Public Works Committee narrowly approved a bill to overturn U.S. EPA's rejection of California's petition for a waiver to regulate greenhouse gases. S. 2555 would grant the waiver by amending the Clean Air Act, effectively vacating EPA's December denial of California's petition. On January 2, 2008, California filed a lawsuit challenging the U.S. EPA's denial of the state's effort to regulate GHG emissions from motor vehicles. On December 19, 2007, EPA rejected California's petition for a Clean Air Act waiver, which is required for the state to implement a vehicle emissions standard tougher than the federal one. The proposed auto standard, which the California Air Resources Board approved on September 24, 2004, calls for a reduction of GHG emissions from new vehicles of 22% by 2012 and of 30% by 2016. Nineteen other states have either adopted or pledged to implement California's proposed tailpipe emissions rule. California adopted its zero-emission vehicle mandate in 1990, which required that 10% of new cars sold in the state by the country's six leading auto manufacturers be emissions-free by 2003. The rules have been modified four times since they were introduced. A 2003 revision set a new goal of putting at least 25,000 zero-emissions cars on the road in California by 2014, far below the original 10% mandate. A modification adopted on March 27, 2008, calls for 7,500 zero-emissions vehicles nationwide by 2014, a 70% reduction from the 2003 target.


Low Carbon Fuel Standard

Status: In Progress

Details: The California Air Resources Board (CARB) released a draft plan on June 26, 2008, setting a road map to reduce the state's greenhouse gas emissions by 30% over the next 12 years. The draft plan calls for full implementation of the state's Low Carbon Fuel Standard. Governor Schwarzenegger announced in January, 2007 Executive Order S-01-07, establishing a Low Carbon Fuel Standard (LCFS) for transportation fuels sold in California that will support AB 32 emissions targets as part of California's overall strategy to fight global warming. By 2020 the standard will reduce the carbon intensity of California's passenger vehicle fuels by at least 10%. The LCFS requires fuel providers to ensure that the mix of fuel they sell into the California market meets, on average, a declining standard for GHG emissions measured in CO2-equivalent gram per unit of fuel energy sold. The LCFS will use market-based compliance mechanisms (e.g., credit banking and trading). The executive order directs the Secretary for Environmental Protection to coordinate the actions of the California Energy Commission (CEC), the California Air Resources Board (ARB), the University of California, and other agencies to develop the protocols for measuring the "life-cycle carbon intensity" of transportation fuels. This analysis will become part of the State Implementation Plan for alternative fuels as required by AB 1007 (Pavley, Chapter 371, 2005) and will be submitted to the California Air Resources Board for consideration as an "early action" item under AB 32. On August 2, 2007, the University of California released a report recommending that California's proposed low-carbon fuel standard apply to all gasoline and diesel transportation fuels and include a credit trading scheme.

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