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State Senator Christine Kehoe Capitol Building Room #4038 Sacramento, CA 95814 Fax: 916-327-2188 SUBJECT: SB 1240 (KEHOE) AIR POLLUTION: LOW-CARBON FUEL STANDARDS - OPPOSE Dear Senator Kehoe, I OPPOSE your SB 1240 (Kehoe), which interferes with the development of a competitive alternative fuels market and threatens job creation in California by creating a costly Low Carbon Fuel Standard that conflicts with the existing standard created by Governor's Executive Order S-7-04. In order to meet increasing consumer demand, it is necessary that the fuels market is full of options and represents a mix of alternatives. However, unlike the Governor’s Executive Order, this bill would limit the fuel technology providers could use to meet the 10% reduction standard. Last year Governor Schwarzenegger signed into law the world’s most sweeping legislation to control global greenhouse gas emissions, Assembly Bill 32. This groundbreaking legislation establishes a process for reducing greenhouse gas emissions and requires the development of a comprehensive plan in a balanced and expeditious manner, including encouraging the use of alternative fuels. The California Air Resources Board has been tasked with the duty to explore and develop regulations to achieve the reductions required under AB 32. This process is currently underway. SB 1240 (Kehoe) however, ignores this planning and prejudges the outcome of AB 32 and the Governor’s Low Carbon Fuel Standard as created in his Executive Order earlier this year. In order to ensure the best future for California, we must continue to work diligently on the various initiatives that are underway. Establishing another standard will only stall the reductions and create more uncertainty in the regulatory process.