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4.4 – Energy Draft Environmental Impact Report February 2021 14800 W. Schulte Road Logistics Center 4.4-2 and distribution pipeline systems, storage, procurement, metering, and billing. Most of the natural gas used in California comes from out-of-state natural gas basins. Biogas (e.g., from wastewater treatment facilities or dairy farms) is just beginning to be delivered into the gas utility pipeline systems, and the state has been encouraging its development (CPUC 2020). In 2019, PG&E delivered approximately 4.9 billion therms of natural gas to the region, with 3 billion therms for non-residential use and 1.9 billion therms for residential use (CEC 2020b, 2020c). Petroleum According to the U.S. Energy Information Administration , California used approximately 681 million barrels of petroleum in 2018, with the majority (584 million barrels) used for the transportation sector (EIA 2020d). This total annual consumption equates to a daily use of approximately 1.9 million barrels of p etroleum. There are 42 U.S. gallons in a barrel, so California consumes approximately 78.4 million gallons of petroleum per day, adding up to an annual consumption of 28.7 billion gallons of petroleum. By sector, transportation uses utilize approximately 85.5% of the state’s petroleum, followed by 11.1% from industrial, 2.5% from commercial, 0.9% from residential, and 0.01% from electric power uses (EIA 2018). Petroleum usage in California includes petroleum products such as motor gasoline, distillate fuel, liquefied petroleum gases, and jet fuel. California has implemented policies to improve vehicle efficiency and to support use of alternative transportation, which are described in Section 4.4.2, below. As such, the CEC anticipates an overall decrease of gasoline demand in the state over the next decade (CEC 2018a). 4.4.2 Relevant Plans, Policies, and Ordinances Federal Federal Energy Policy and Conservation Act In 1975, Congress enacted the Federal Energy Policy and Conservation Act, which established the first fuel economy standards for on-road motor vehicles in the United States. Pursuant to the act, the National Highway Traffic Safety Administration is responsible for establishing additional vehicle standards. In 2012, new fuel economy standards for passenger cars and light trucks were approved for model years 2017 through 2021 (77 FR 62624–63200). Fuel economy is determined based on each manufacturer’s average fuel economy for the fleet of vehicles available for sale in the United States. Energy Independence and Security Act of 2007 On December 19, 2007, the Energy Independence and Security Act of 2007 (EISA) was signed into law. In addition to setting increased corporate average fuel economy standards for motor vehicles, the EISA includes the following other provisions related to energy efficiency: • Renewable Fuel Standard (RFS) (Section 202) • Appliance and lighting efficiency standards (Sections 301–325) • Building energy efficiency (Sections 411–441) The RFS requires ever-increasing levels of renewable fuels to replace petroleum (EPA 2017). The U.S. Environmental Protection Agency (EPA) is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The RFS program regulations were developed in collaboration with refiners, renewable fuel producers, and many other stakeholders.