BILL ANALYSIS Ķ
SB 1455
Page 1
( Without Reference to File )
SENATE THIRD READING
SB 1455 (Kehoe)
As Amended August 24, 2012
2/3 vote
SENATE VOTE :Vote not relevant
NATURAL RESOURCES 6-3 APPROPRIATIONS 10-4
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|Ayes:|Chesbro, Brownley, |Ayes:|Gatto, Blumenfield, |
| |Dickinson, Huffman, | |Bradford, Campos, Davis, |
| |Monning, Skinner | |Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Grove, Halderman |Nays:|Harkey, Nielsen, Norby, |
| | | |Wagner |
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SUMMARY : Extends until December 1, 2023, various fees and
surcharges related to the clean air, fuel, tire recycling, and
vehicle programs of the Air Resources Board (ARB), the
California Energy Commission (CEC), the Department of Resources
Recycling and Recovery (CalRecycle), and the State Bureau of
Automotive Repair (BAR). Prohibits ARB from moving forward with
implementation of the Clean Fuels Outlet regulation, and instead
directs funds from the Alternative and Renewable Fuel and
Vehicle Technology Fund for the construction and operation of a
hydrogen fueling network in California. Requires CEC and ARB to
report on the status of the state's alternative transportation
fuel use in the Integrated Energy Policy Report (IEPR).
Specifically, this bill :
1)Extends the sunset dates of various clean air and alternative
fuels and vehicle programs, and the related fees and
surcharges, under ARB, CEC, and BAR to December 31, 2023. The
fees and surcharges are:
a) AB 118 (Nuņez), Chapter 750, Statutes of 2007, which
authorizes a vehicle registration fee to fund the
Alternative and Renewable Fuel and Vehicle Technology
Program.
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b) AB 923 (Firebaugh), Chapter 707, Statutes of 2004, which
increased the vehicle registration fee for vehicles
registered in specified areas in the state and increased
the Tire Recycling Fee to fund air emissions reduction
activities.
c) The Carl Moyer Memorial Air Quality Standards Attainment
(Carl Moyer) Program, which can be used to fund the
incremental cost of cleaner-than-required vehicles,
engines, and equipment.
2)Prohibits ARB from submitting regulations related to the Clean
Fuels Outlet regulation and the deployment of hydrogen fueling
stations to the Office of Administrative Law, and instead:
a) Defines "publicly available hydrogen fueling station" to
mean the equipment used to store and dispense hydrogen fuel
to vehicles according to industry codes and standards that
is open to the public.
b) Requires ARB to aggregate and make available to the
public no later than January 1, 2014, and every two years
thereafter, the number of vehicles that automobile
manufacturers project to be sold or leased.
c) Requires CEC to allocate $20 million each fiscal year,
beginning July 1, 2013, through June 30, 2016, and up to
$20 million each fiscal year thereafter, not to exceed 20%
of moneys appropriated by the Legislature from the
Alternative and Renewable Fuel and Vehicle Technology Fund,
for purposes of constructing and operating a hydrogen
fueling network sufficient to provide convenient fueling to
vehicle owners and expand that network as necessary to
support a growing market for vehicles requiring hydrogen
fuel, until there are at least 100 publicly available
hydrogen fueling stations
d) Requires CEC's expenditures not exceed 20% of the moneys
appropriated annually by the Legislature from the
Alternative and Renewable Fuel and Vehicle Technology Fund.
e) Permits CEC to defer allocating the moneys as needed to
keep the number of fueling stations appropriate for the
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fueling needs of hydrogen vehicles.
f) States that once CEC determines, in consultation with
ARB, that the private sector is establishing publicly
available hydrogen fueling stations without the need for
government support, requires CEC to cease providing funding
for those stations.
g) Requires, on or before December 31, 2015, and annually
thereafter, that ARB and CEC jointly review and report on
progress toward establishing a hydrogen fueling network, as
specified.
h) Authorizes CEC to design loan incentive programs,
revolving loan programs, and other forms of financial
assistance, and authorizes CEC to enter into an agreement
with the Treasurer to provide financial assistance to
further the development of the hydrogen fueling network.
i) Requires that funds appropriated to CEC for the purposes
of this bill be available for encumbrance by CEC for up to
four years from the date of the appropriation.
j) Requires ARB, no later than July 1, 2013, to convene a
working group to evaluate the policies and goals contained
within the Carl Moyer and AB 923 (Firebaugh and Pavley),
Chapter 707, Statutes of 2004, programs.
aa) Sunsets these provisions on December 31, 2023.
1)Directs ARB and CEC, by November 1, 2014, to update the
economic analysis used to develop and review ARB's regulations
to include a range of petroleum and alternative fuel prices to
more accurately assess the future costs of petroleum-based and
alternative fuels.
2)Requires, beginning November 1, 2015, and every two years
thereafter, CEC, in consultation with ARB and as a part of its
IEPR, to provide a status of the state's alternative
transportation fuel use, including:
a) An evaluation of how new and existing investment
programs could help to increase the state's alternative
fuels use; and,
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b) An evaluation of how federal fuel policies and existing
state policies will help increase the use of alternative
fuels in the state.
3)Requires ARB when developing new and amended regulations, to
include a finding on the effect of the proposed regulations on
the state's alternative transportation fuels use.
4)Provides that this bill does not preempt AB 32 and that the
bill be implemented consistent with environmental, public
health, and sustainability considerations articulated in AB
32, clean fuels and vehicle funding statutes.
5)Requires ARB and CEC, when studying the state's alternative
transportation fuel use, to measure:
a) In-state job creation through the continued development
of an alternative fuels industry in the state;
b) Economic vulnerability of residents to future petroleum
fuel price spikes by the use of either petroleum fuels or
alternative fuels and vehicles;
c) Alternative fuel market penetration in nonattainment
areas; and,
d) Increase access to the supply of alternative fuels and
alternative fuel vehicles for all residents, including
barriers to supply.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will result in the following fiscal
impacts:
1)Annual fee revenue, ranging from $48 million to $60 million,
from the tire fee extension, 57% of which (roughly $27 million
to $34 million) will go to California Department of Resources
Recycling and Recovery (CalRecycle) to fund waste tire
management and 43% of which (roughly $21 million to $26
million) will go to ARB to fund the Carl Moyer Program
(special funds). (Absent this bill, the tire fees drops, as
of January 1, 2015, from $1.75 per tire to $0.75 per tire, all
of which will go to CalRecycle to fund waste tire management.)
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2)Annual revenue of approximately $180 million from extension of
various vehicle, vessel, and other air quality-related
surcharges to fund AB 118 programs, as follows: approximately
$105 million for the Alternative and Renewable Fuel and
Vehicle Technology (ARFVT) Program, administered by CEC;
approximately $45 million for the Air Quality Improvement
(AQI) Program; administered by ARB; and, approximately $30
million for the passenger vehicle car scrap program,
administered by BAR (special funds).
3)Annual local revenue, of approximately $50 million, from
extension of local surcharge on vehicle registration fees to
fund local vehicle emissions reduction projects (various local
funds).
4)Annual redirection of $20 million from the ARFVT Fund during
each fiscal year 2013-14 through 2015-16, and up to that
amount each fiscal year thereafter, away from projects for the
development and commercialization of nonpetroleum fuels and to
projects for the construction and operation of a hydrogen
fueling network.
5)Ongoing costs in the hundreds of thousands of dollars to ARB,
CEC and BAR to continue to administer various air quality and
alternative fuel programs (special funds). These costs will
be fully covered by the fee extensions authorized by this
bill.
6)Ongoing costs in the hundreds of thousands of dollars to ARB
and CEC to track and periodically report on alternative-fueled
vehicle sales and progress in establishing a hydrogen fueling
network, to evaluate alternative fuels use and include such
information in the IEPR, and to update the economic analysis
used in developing ARB's regulations (special funds.)
COMMENTS : California faces significant challenges with air
quality. According to the author, "just when they are needed
most and a wide variety of new vehicles and technologies are
coming to the market, California's major clean transportation
and air quality investment programs are all set to expire in
2014 or 2015." This bill would extend these programs and the
fees that support them until December 31, 2023.
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The CEC's State Alternative Fuels Plan outlines specific
strategies and targets to increase the use of alternative fuels,
including setting a goal of 26% penetration for alternative fuel
use in California for on-road and off-road vehicles by 2022.
This bill requires ARB and the CEC to measure the progress of
alternative fuels use in the state, as described.
On January 26, 2012, ARB considered amendments to the Clean
Fuels Outlet regulation. The amendments are required be
submitted to the Office of Administrative Law by December 31,
2012, to take effect. The amendments to the Clean Fuels Outlet
regulation were designed to ensure that there was sufficient
hydrogen fueling infrastructure necessary to meet forecasted
fuel cell vehicle penetration. According to ARB, this
infrastructure is needed to demonstrate a market commitment to
hydrogen fuel. In order to meet the forecasted station
infrastructure needs, the regulation would have required that
refiners provide the funding for hydrogen fueling stations
available to the public.
This bill prohibits ARB from submitting the January 26, 2012,
regulation amendments pertaining to the hydrogen fueling
infrastructure to the Office of Administrative Law. The bill
also prohibits ARB from enforcing any element of the regulation
that requires, or has the effect of requiring, any person to
construct, operate, or provide funding for the construction or
operation of any publicly available hydrogen fueling station.
Instead, the bill dedicates $20 million from the AB 118 program
in each fiscal year, beginning July 1, 2013, through June 30,
2016, not to exceed 20% of total AB 118 funds annually, to
developing the hydrogen infrastructure. The CEC may allocate
additional funds after July 1, 2016, as necessary to achieve the
publicly available hydrogen fueling infrastructure sufficient to
support automobile manufacturer deployment projections for fuel
cell vehicles in California.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0005836
SB 1455
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