BILL NUMBER: AJR 15	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Grove

                        MAY 7, 2015

   Relative to renewable fuels.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 15, as introduced, Grove. Renewable fuels.
   This measure would urge the President and the Congress of the
United States to pass meaningful legislation to reform the federal
Renewable Fuel Standard program to address specified concerns.
   Fiscal committee: no.



   WHEREAS, Under the federal Clean Air Act (42 U.S.C. Sec. 7401 et.
seq.), as amended by the Energy Independence and Security Act of 2007
(Public Law 110-140), the United States Environmental Protection
Agency (EPA) is required to annually set the standards for the
Renewable Fuel Standard (RFS) program; and
   WHEREAS, For the first time since the RFS was passed in 2005, the
EPA has proposed lowering the Renewable Volume Obligations (RVOs)
because of the market's inability to sustain the federal ethanol
mandate; and
   WHEREAS, The limitations in the volume of ethanol that can be
consumed in gasoline given practical constraints on the supply of
higher ethanol blends to the vehicles that can use them and other
limits on ethanol blend levels in gasoline, a set of factors commonly
referred to as the ethanol "blend wall," are closer than ever
before; and
   WHEREAS, Due to the blend wall, unnecessary ethanol production is
occurring and there is an insufficient market to properly consume the
E15 ethanol-gasoline blend; and
   WHEREAS, The constraints caused by the limitations in the ability
of the industry to produce sufficient volumes of qualifying renewable
fuel lead to the EPA waiving the required levels of cellulosic
ethanol, resulting in a disincentive for manufacturers to move to
second generation biofuels due to the RFS and initial investment
costs; and
   WHEREAS, Eighty percent of the nation's biofuel blending
requirements continue to be met with ethanol, a percentage
disproportionate compared to other biofuels; and
   WHEREAS, This government-induced demand for corn ethanol is
diverting 40 percent of the United States' crops away from food to
fuel production. This diversion has wreaked havoc on corn markets,
increasing corn price volatility and delivering a major blow to our
farmers and food processors that rely on corn for animal feed; and
   WHEREAS, Elevated corn costs drove prices for feed - the single
largest input cost to food producers - to rise, increasing production
costs for livestock producers across the state. As a result,
hundreds of California dairies have closed since the inception of the
RFS; and
   WHEREAS, Because of the highly volatile marketplace, many
producers have reduced their herd size sending beef, pork, eggs, and
fish prices up significantly since the inception of the RFS; and
   WHEREAS, Altogether, the average United States family of four
faced a $2,000 increase in food costs in 2012 due to the effects of
higher grain prices brought on largely by the RFS; and
   WHEREAS, Major automobile makers have publicly stated that certain
manufacturers' warranties may be void if gasoline with high ethanol
content is used, and many machines with small engines are at risk if
gasoline blended with ethanol is used, putting thousands of
Californians at risk; and
   WHEREAS, As a result of the RVOs being consistently finalized well
after the EPA's deadlines, a vast number of Californian business are
forced to encounter needless uncertainty and market volatility,
which results in negative effects on the state's economy; now,
therefore, be it
   Resolved by the Assembly and the Senate of the State of
California, jointly, That to end the uncertainty created by the EPA
repeatedly missing its own deadlines for RVO levels each year and to
bring fundamental and much needed reform to this costly and
unworkable federal policy, the Legislature of the State of California
urges the President and the Congress of the United States to pass
meaningful legislation to reform the federal Renewable Fuel Standard
program; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate, and to each Senator and Representative
from California in the Congress of the United States.