(a) Except as provided in subdivision (e), commencing January 1, 2017, at least 3 percent of the aggregate amount of bulk transportation fuel purchased by the state government shall be procured from very low carbon transportation fuel sources, and, commencing January 1, 2018, the amount of very low carbon transportation fuel purchased shall be increased every year, by 1 percent, until January 1, 2024.

(b) As used in this section, “very low carbon transportation fuel” means a liquid or gaseous transportation fuel having no greater than 40 percent of the carbon intensity of the closest comparable petroleum fuel for that year, as measured by the methodology in the low-carbon fuel standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations). The carbon intensity for the transportation fuel shall include the indirect land use change emission if an agricultural commodity that is a food product is used as a feedstock for the production of the transportation fuel.

(c) This section does not replace or modify any existing fuel standards or requirements imposed under the low-carbon fuel standard regulation.

(d) The Department of General Services shall coordinate with state agencies that are buyers of transportation fuel and submit to the Legislature, consistent with Section 25722.8 of the Public Resources Code, an annual progress report on actions taken pursuant to this section.

(e) If the Department of General Services, in consultation with the chairperson of the state board, makes a determination that very low carbon transportation fuel does not perform adequately for its intended use or is not available at a reasonable price and in a reasonable period of time, the state shall procure very low carbon transportation fuel only to the extent feasible.

(Added by Stats. 2015, Ch. 588, Sec. 2. (AB 692) Effective January 1, 2016.)