ABX2 3: Transportation fuels: gasoline specifications.

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 approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 and to ensure the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit by 2030. The act authorizes the state board to include the use of market-based compliance mechanisms in its regulation of greenhouse gas emissions.

This bill would specify that transportation fuels are not subject to regulations implementing a market-based compliance mechanism for greenhouse gas emissions.

Existing law authorizes the state board to adopt and implement motor vehicle fuel specifications for the control of air contaminants and sources of air pollution. Existing law authorizes the state board to grant variances from the gasoline specifications, as provided.

This bill would require the state board to grant variances from gasoline specifications, including for gasoline imported from outside the state, whenever a refinery outage or other supply interruption would result in substantial short-term price increases, as specified.

Existing law requires the state board to establish, by regulation, maximum standards for volatility of gasoline, as provided. Pursuant to these authorities, the state board has adopted the California Reformulated Gasoline regulations, which include regulations establishing the maximum Reid vapor pressure of gasoline for various regions of the state at specified time periods.

This bill would require the state board to waive the Reid vapor pressure requirement on summer-blend gasoline under the California Reformulated Gasoline regulations and to allow for the early transition to winter-blend gasoline if the state board determines that the gasoline market is experiencing a sudden and unusual increase in gasoline prices.