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Assembly Member Mark Leno Assembly Appropriations Committee, Chair State Capitol P.O. Box 942849 Sacramento, CA 94249 Dear Assemblymember Leno, I OPPOSE SB 140 (Kehoe), which would require at least 2% of all diesel fuel sold in the state to contain renewable diesel fuel by a date specified by the state board and five percent two years after the implementation of the 2% standard. Through his Executive Order, Governor Schwarzenegger established the world’s first standard for transportation fuels. The LCFS is a market-based approach, which refrains from picking winners and losers and concentrates on reducing emissions at the lowest cost to consumers and businesses throughout California. Also, AB 1007 (Pavley), signed in 2005, requires a comprehensive and systematic approach of alternative fuel technologies. This process is currently underway. SB 140 (Kehoe) prejudges this outcome. It is important to keep in mind the effects this mandate could potentially have on the price of fuel in California. Mandates have historically led to higher not lower prices. They force the market to supply and consumers to buy products regardless of price. Although, I am supportive of fuel efficiency and the use of renewables, I believe it is vital that California continue to work on promoting policy goals that are both economical and environmentally sustainable. Although renewable diesel fuels will play a role in meeting our future energy demand, I should focus on promoting all alternatives and work with existing initiatives to ensure our supply for the future. For these reasons, I OPPOSE SB 140 (Kehoe)