BILL ANALYSIS Ó
AB 808
Page 1
Date of Hearing: April 28, 2015
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Susan Bonilla, Chair
AB 808
(Ridley-Thomas) - As Introduced February 26, 2015
SUBJECT: Automotive fuels and products.
SUMMARY: Expands the authority of the California Department of
Food and Agriculture (Department) to include alternative fuels,
as defined; requires the method of sale for all fuels to be
consistent with national standards; expands the Department's
authority over new automotive products, including diesel exhaust
fluid and glycerin as an engine coolant; and makes other
conforming changes.
EXISTING LAW:
1)Gives the Department general supervision over weights and
measures and weighing and measuring devices sold or used in
the state. (Business and Professions Code (BPC) Section 12100
et seq.)
2)Regulates the sale of, and measures standards, for petroleum
and hydrogen fuel products, and requires the Department to
establish standards for motor vehicle fuels and other
petroleum products that are offered for sale in the state.
Requires the Department, through the Division of Measurement
Standards, to enforce regulations and standards for motor
vehicle fuels and lubricants. (BPC Section 13400 et seq.)
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3)Defines various terms relating to fuel products, including:
a) "Petroluem products" as gasoline, diesel fuel, liquefied
petroleum gas only when used as a motor fuel, kerosene,
thinner, solvent, liquefied natural gas, pressure appliance
fuel, or white gasoline, or any motor fuel, or any oil
represented as engine lubricant, engine oil, lubricating or
motor oil, or any oil used to lubricate transmissions,
gears, or axles.
b) "Engine fuel" as any liquid or gaseous matter used for
the generation of power in an internal combustion engine or
fuel cell, and provides that "motor fuel" means "engine
fuel."
c) "Motor vehicle fuel" as any product intended for
consumption in an internal combustion engine or fuel cell
to produce the power to self-propel a vehicle designed for
transporting persons or property on a public street or
highway.
d) "Hydrogen" as a fuel composed of the chemical hydrogen
intended for consumption in an internal combustion engine
or fuel cell. (BPC Section 13401)
4)Requires the Department to establish specifications for
automotive spark-ignition engine fuels, and the Department
adopt by reference the latest standards established by a
recognized consensus organization or standards writing
organization such as the ASTM International or the SAE
International, for automotive spark-ignition engine fuel,
except that no specification shall be less stringent than
required by any California state law. (BPC Section 13440)
5)Requires the Department, on or before January 1, 2008, to
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establish specifications for hydrogen fuels for use in
internal combustion engines and fuel cells in motor vehicles,
as specified. (BPC Section 13446)
6)Requires the Department to establish specifications for
compression-ignition engine fuel, as specified. (BPC Section
13450)
7)Generally makes it unlawful to sell or deliver for the purpose
of sale, various fuel products unless it conforms to the
Department's specifications. (BPC Section 13400 et seq.)
8)Requires that the sale, offer for sale, or advertisement for
sale at retail to the general public of compressed natural gas
be only for use as a motor vehicle fuel, and requires
compressed natural gas and liquefied natural gas to be sold in
specified gallon equivalents. (BPC Section 13404)
9)Makes it unlawful for any person or other legal entity to make
any deceptive, false, or misleading statement by any means
whatever regarding quality, quantity, performance, price,
discount, or saving used in the sale or selling of any
petroleum or hydrogen fuel product regulated pursuant to these
provisions. (BPC Section 13413)
10)Requires every person offering for sale or selling any motor
vehicle fuel to the public from any place of business to
display on the premises an advertising medium that complies
with price sign advertising requirements and advertises the
prices of the three major grades of motor vehicle fuels which
shall be clearly visible from the street or highway. (BPC
Section 13531)
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11)Authorizes the Departments to inspect petroleum products and
to enter, for the purpose of the inspection, any place where
petroleum products are kept or stored for sale. (BPC Section
13591)
12)Makes it unlawful for a person to sell or deliver any
petroleum product that fails to meet the specifications
required by these provisions (relating to petroleum and
hydrogen fuels) or to sell or deliver any petroleum product
into, from, or through an unlabeled or mislabeled device or
container. (BPC Section 13595)
13)Regulates the sale of automotive products, such as engine
coolant and antifreeze, requires the Department to establish
specification for those products, and deems an automatic
transmission fluid as mislabeled under certain conditions.
(BPC Section 13710, et seq.)
14)Makes it unlawful for a person or other legal entity to make
any deceptive, false, or misleading statement by any means
whatever regarding quality, quantity, performance, price,
discount, or saving in the sale or selling of any automotive
product, as specified. (BPC Section 13741)
THIS BILL:
1)Revises existing definitions relating to petroleum and
hydrogen fuels, deletes the use of the term "petroleum"
throughout these provisions, and defines the following terms:
a) "Alternative fuels" which include biodiesel, biodiesel
blend, dimethyl either, electricity, ethanol, ethanol fuel
blend, hydrogen, methanol fuel blend, natural gas, propane,
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all defined under the bill, and any other fuel intended for
use as a motor vehicle fuel that the Secretary determines
is an alternative fuel.
b) "Engine fuel," which include any gasoline, diesel, or
alternative fuel used for the general of power in an
internal combustion engine or fuel cell in a motor vehicle,
or electrical power delivered conductively or inductively
to an electronic motor in electric or plug-in hybrid
vehicles, and defines "motor fuel' to mean "engine fuel."
c) "Motor vehicle fuel" which means an engine fuel intended
for consumption in, including, but not limited to, an
internal combustion engine, fuel cell, or electric motor to
produce power to self-propel a vehicle designed for
transporting persons or property on a public street or
highway.
2)Revises provisions relating to the regulation of motor vehicle
fuels and lubricants to include alternative fuels, as
specified, thereby extending the Department the authority to
regulate alternative fuels, including by setting standards
specific to those types of alternative fuels based on
standards established by various standards development
organizations.
3)Requires the Secretary to establish the method of sale of
motor vehicle fuels and lubricants sold at retail to the
public by adopting, by reference, the latest method of sale
for motor vehicle fuels and lubricants published in the
National Institute of Standards and Technology (NIST) Handbook
130-2015, except as specifically modified, amended, or
rejected by the Secretary, and authorizes, in the absence of
national standards, the Secretary to adopt interim standards
of method of sale until the time when the standards are
adopted by the National Conference on Weights and Measures.
4)Makes alternative fuels subject to the same, or similar,
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advertising, hours of business, price indications, labeling,
price sign advertising, inducements, and other standards as
other types of motor vehicle fuels, except as specified.
5)Exempts electricity from meeting certain labeling standards
for motor vehicle fuels, and from certain advertising
standards, as specified.
6)Defines "diesel exhaust fluid" and requires the Secretary to
establish the method of sale of diesel exhaust fluid sold at
retail to the public, as specified.
7)Extends the enforcement ability of the Department to these
added motor vehicle fuels and automotive products.
8)Makes additional conforming and related changes.
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the
Legislative Counsel.
COMMENTS:
9)Purpose. This bill is sponsored by the California Department
of Food and Agriculture . According to the author, "California
is at the forefront of alternative and renewable fuel and
vehicle technology. As more vehicles in California are
powered by alternative fuels, it is imperative that the state
protect its consumers and businesses by providing clear
standards and guidelines to prevent consumer confusion and
unfair business practices that could harm the marketplace.
This bill will provide the necessary regulatory framework to
ensure that alternative motor vehicle fuels and automotive
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products are regulated in a similar manner as traditional
fuels and automotive products."
10)Background. The Department is the only state agency with the
authority to regulate the quality of fuel and automotive
products. No other state agency has the authority to regulate
weights and measures laws, advertising, labeling, and fuel
quality requirements for motor vehicle fuels and automotive
products. According to the author, for over 8- years, the
Department has had oversight authority of the quality of
conventional fuels sold in California. All fuels must comply
with fuel quality standards, advertising, and labeling
requirements found in the BPC.
Governor's Executive Order B-16-2012. Recognizing the multiple
benefits of zero-emission vehicles (ZEVs), as well as
challenges to growing the market, Governor Brown issued
Executive Order B-16-2012 on March 23, 2012 that directed
California to "encourage the development and success of
zero-emission vehicles to protect the environment, stimulate
economic growth and improve the quality of life in the State."
The Governor's Executive Order sets a long-term target of
reaching 1.5 million ZEVs on California's roadways by 2025.
The Executive Order also sets a longer term target of reducing
transportation-related greenhouse gas emission by 80 percent
below 1990 levels by 2050. The Executive Order established
several milestones on a path toward 1.5 million ZEVs in
California by the year 2025. The 2013 ZEV Action Plan was
subsequently released, which identifies specific strategies
and actions that state agencies will take to meet milestones
of the executive order.
According to the 2013 ZEV Action Plan, accelerating the market
for ZEVs is a cornerstone of California's long-term
transportation strategy to reduce localized pollution and
greenhouse gas emissions, save consumers money, and enable
continued economic growth. The Governor's Executive Order and
the action plan concentrate on advancing ZEVs, recognizing the
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timely opportunity to accelerate use of this commercially
available technology.
The first goal under the ZEV Action Plan includes completing
needed infrastructure and planning. The plan specifies the
following action items and the Department is responsible for,
including: a) supporting the development of standards for
electric chargers and hydrogen stations to ensure that drivers
understand charging and fueling costs; b) installing signage
at public electric charging stations and hydrogen stations
that informs drivers of prices per unit of measure, applicable
charging voltages and filling pressures; and c) enacting
necessary legislation, regulations, standards or
certifications to enable hydrogen to be sold commercially on
per kilogram basis and electricity on a single unit of measure
basis (e.g., kilowatt-hour), as specified.
CDFA's Regulations of Motor Vehicle Fuels. According to the
Department, in order for the Department to comply with
Executive Order B-16-12, existing law must be amended to allow
the legal sale of alternative motor vehicle fuels. While
existing law defines petroleum products and motor vehicle
fuels, it does not adequately define "alternative motor
vehicle fuels." As a result, the Department is restricted
from establishing fuel quality specifications that would
protect consumers from substandard products and regulate
advertising for these new alternative fuels. Defining these
terms and incorporating them throughout these provisions gives
the Department clear authority to regulate fuel quality,
advertising, and labeling, thereby protecting consumers.
Specifically, to provide the type of infrastructure necessary
under the ZEV action plan, it is necessary to ensure: that ZEV
fuels can be sold commercially to mainstream consumers on a
single unit of measurement basis; price transparency for ZEV
fuels, which supports the development of standards for
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electric chargers and street sign advertising to ensure
consumers understanding costs; and that ZEV fuels can legally
be sold as a retail transportation fuel. While hydrogen is
currently defined, electricity, and other alternative fuels,
are not, which is what this bill seeks to do.
In addition, existing law requires sellers or motor vehicle
fuels to adhere to certain pricing, labeling, and advertising
requirements, and requires fuels advertised for sale to be in
prices relating to gallons or liters. However, not all
alternative fuels will be sold in these volumetric units of
measurement. This bill would allow the Department to ensure
consumers are informed by giving the Department the authority
to establish a single consistent method of sale, advertising,
and labeling for motor vehicle fuels, including alternative
fuels.
In addition, according to the Department, existing law does not
provide the Department with the authority to protect against
substandard fuels and automotive products, which could
negatively impact vehicle emissions and mileage performance,
and damage engines and fuel cells. This bill would make clear
that the Department has the enforcement capability necessary
to ensure standards are met.
Alternative Motor Vehicle Fuels. Various alternative fuels and
technologies, as described by the California Energy
Commission, and incorporated under this bill, include the
following:
Plug-in Electric Vehicles are propelled by electric
motors powered by rechargeable battery packs, which reduce
dependence on petroleum because the energy powering them is
domestically generated. These vehicles are more than three
times more energy efficient, and produce no tailpipe
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emissions.
Hydrogen Fuel Cell Vehicles (FCVs) run on hydrogen gas
and depending upon how the hydrogen is produced, few or no
harmful emissions occur on a life cycle basis. FCV
tailpipe emissions are zero; they emit water vapor. FCVs
generate electricity through an electrochemical process,
using hydrogen as the fuel that powers an electric motor
which in turn, drives the vehicle. While these vehicles
are still in the early stage of commercial development, the
potential benefits are impressive, as the only by-products
are heat, some CO2 (hydrogen production, transport,
storage, compression) and water vapor. In some cases
hydrogen is produced from water through electrolysis, and
the feedstocks (natural gas and water), are readily
available so the use of FCVs can substantively reduce
dependence on petroleum.
Natural Gas Vehicles are a cleaner and efficient
alternative to gasoline and diesel vehicles. Currently
they are used in industrial urban fleet applications such
as light, medium and heavy-duty delivery trucks, taxis,
courier services, shuttles, buses, refuse haulers, and
large trucks. There are also some commercial available
CNG-powered passenger cars in the US. While conventional
natural gas is not considered a renewable fuel, biomethane
or renewable natural gas can be produced from organic
material found in dairies, landfills, and wastewater
treatment facilities, leading to GHG emission reductions of
up to 85% compared to conventional natural gas.
Propane (also known as liquid petroleum gas (LPG)) is
produced as a byproduct of natural gas processing and crude
oil refining. Most widely used in rural areas for heating
homes and powering farm and industrial equipment, less than
3% of propane produced in the U.S. is currently used in
vehicles. Interest in propane as a transportation fuel is
increasing due to its domestic availability, low cost, and
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clean burning qualities. Propane fueled vehicles reduce
greenhouse gas emissions compared to their gasoline and
diesel equivalents.
Biofuels: Ethanol, Diesel Substitutes, Biomethane
Ethanol is an alcohol-based fuel made by fermenting and
distilling purpose-grown starch crops, such as corn, sugar
cane and wheat. It can also be made from cellulosic biomass
such as agricultural residues, animal manures, food wastes,
fats, oils and greases. Additionally, landfill gases and
municipal solid waste (MSW) can be used; these feedstocks
avoid the issue of using prime agricultural lands for fuel
production and result in fuels that are considerably lower
in greenhouse gas (GHG) emissions.
Biodiesel is an alternative fuel produced from vegetable
oils, animal fats, agriculture, green and food wastes,
forest residues, and algae. These products can be used in
its pure form or blended with petroleum diesel. It is a
cleaner-burning alternative for diesel engines than
petroleum diesels. Since more than 90% of all diesel in the
country is consumed by heavy duty and off-road vehicles,
this represents a promising market for biomass-based diesel
fuels. It can be blended up to 5% of the total volume in
conventional diesel, and is lower in harmful emissions than
traditional diesel engines. It reduces carbon dioxide
emissions by approximately 50%-88% depending, upon the
feedstock used.
Renewable Natural Gas (biomethane) , sometimes called biogas,
is renewable natural gas produced from the decaying
processes of organic matter. Municipal solid waste (MSW)
from landfills is one of the largest sources of feedstock
for this technique and results in the added benefit of
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diverting waste from the landfill to produce energy.
Renewable natural fas can reduce GHG emissions by up to 87%
compared to conventional petroleum-based fuels, and it is
the lowest carbon intensity alternative fuel readily
available in California.
This bill would recognize the need to develop standards for
these emerging technologies by including alternative fuels
within the Department's jurisdiction.
NIST Handbook 130. The National Institute of Standards and
Technology (NIST), now a part of the US Department of
Commerce, publishes Uniform Laws and Regulations in the Areas
of Legal Metrology and Engine Fuel Quality, which were adopted
by the National Conference of Weights and Measures, and
published as NIST Handbook 130-2015. These uniform laws and
regulations relating to engine fuel have been adopted or
incorporated by nearly 20 states. Among other things, this
handbook has standards for the following issue areas:
gasoline-oxygenate blends; liquefied petroleum gas; retail
sales of natural gas sold as a vehicle fuel; ethanol flex
fuel; biodiesel and biodiesel blends; retail sales of hydrogen
fuel; engine oil (motor oil); retail sales of electricity sold
as a vehicle fuel; and diesel exhaust fluid (DEF) Additional
standards relating to motor vehicle fuels, lubricants, and
automotive products also include the following: the American
National Standards Institute (ANSI); the American Society for
Testing and Materials International (ASTM), and the Society
for American Engineers International (SAE).
This bill would require the Secretary to establish the method of
sale of motor vehicle fuels and lubricants sold at retail to
the public by adopting, by reference, the latest method of
sale for motor vehicle fuels and lubricants published in NIST
Handbook 130-2015, except as specifically modified, amended,
or rejected by the Secretary. The bill also authorizes, in
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the absence of national standards, the Secretary to adopt
interim standards of method of sale until the time when the
standards are adopted by the National Conference on Weights
and Measures, and specifies other standards to be met for
certain fuel types.
1)Prior Related Legislation. AB 1907 (Ridley-Thomas), Chapter
805, Statutes of 2014, required compressed natural gas sold at
retail to the public for use as a motor vehicle fuel to be
sold in a gasoline gallon equivalent that is equal to 126.67
cubic feet, or 5.66 pounds, of compressed natural gas,
measured at the standard pressure and temperature, as
specified, and required liquefied natural gas to be sold in a
diesel gallon equivalent that is equal to 6.06 pounds of
liquefied natural gas. This bill also prohibited a person
from selling at retail any compressed natural gas or liquid
natural gas for use as motor fuel from any place of business
in this state unless there is displayed and labeled on the
dispensing apparatus in a conspicuous place "Gasoline gallon
equivalent" or "Diesel gallon equivalent," respectively.
AB 8 (Perea), Chapter 401, Statutes of 2013, extended until
January 1, 2024, extra fees on vehicle registrations, boat
registrations, and tire sales in order to fund programs,
including the Alternative and Renewable Fuel and Vehicle
Technology Program, that support the production, distribution,
and sale of alternative fuels and vehicle technologies, as
well as air emissions reduction efforts.
SB 454 (Corbett), Chapter 418, Statutes of 2013, created the
Electric Vehicle Charging Stations Open Access Act, which
would prohibit the charging of a subscription fee on persons
desiring to use an electric vehicle charging station, as
defined, and would prohibit a requirement for persons to
obtain membership in any club, association, or organization as
a condition of using the station, except as specified. The
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bill would require the total actual charges for the use of an
electric vehicle charging station to be disclosed to the
public at the point of sale. The bill would require an
electric vehicle charging station to provide to the general
public 2 specified options of payment.
AB 1007 (Pavley), Chapter 371, Statutes of 2005, required that,
not later than June 30, 2007, the State Energy Resources
Conservation and Development Commission, in partnership with
the State Air Resources Board, and in consultation with the
State Water Resources Control Board, the Department of Food
and Agriculture, and other relevant state agencies, to develop
and adopt a state plan to increase the use of alternative
transportation fuels, as defined.
SB 70 (Florez) of 2007, would have specified standards for
biodiesel and biodiesel blends, and for renewable diesel and
renewable diesel blends, as defined, and prohibit someone from
selling at retail to the general public, specified biodiesel
fuel from any place of business in this state unless there is
displayed in a conspicuous place on the dispensing apparatus
at least one sign stating the concentration of biodiesel, as
specified. (STATUS: Governor Schwarzenegger vetoed this
bill.)
SB 76 (Committee on Budget and Fiscal Review), Chapter 91,
Statutes of 2005, required the establishment of standards for
hydrogen fuels, and required the Department, by January 1,
2008, with the concurrence of the State Air Resources Board,
to establish specifications for hydrogen fuels for use in
internal combustion engines and fuel cells in motor vehicles
until a standards development organization accredited by the
American National Standards Institute (ANSI) formally adopts
standards for hydrogen fuels for use in internal combustion
engines and fuel cells in motor vehicles, and required the
Department, at that time, to adopt those standards, except as
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specified.
AMENDMENTS:
Because the language in this bill incorporates some deviations
from the NIST Handbook 130-2015 standards, the author wishes to
additionally specify that the language be amended to reflect
that.
On page 8, line 35, after "specifically" insert: provided by
the Legislature or
On page 8, line 36, after "by" insert: regulation adopted by
This bill inadvertently deleted Section 13404 from the BPC,
which regulated the sale of compressed natural gas and liquefied
natural gas. The author seeks to restore these provisions to
existing law.
Restore the language from Section 13404 under new section
13404.5.
The bill defines the term "diesel exhaust fluid" under
provisions relating to automotive products, but does not include
that term within the definition of "automotive product." To
ensure that the Department has similar oversight with respect to
these fluids, the author seeks to include that term under that
definition.
On page 28, line 8, after "fluid" insert: diesel exhaust fluid
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This bill defines the new term, "renewable diesel fuel" as a
diesel fuel derived from nonpetroleum renewable resources.
Section 13450, which requires the department to establish
specifications for compression-ignition engine fuel, and other
things, also specifies that specific standards that certain
diesel and biodiesel fuels are required to meet. However,
standards are not specified for renewable diesel fuels. The
author wishes to specify that standard for renewable diesel
fuel.
On page 16, line 22, insert: (f) Renewable diesel fuel shall
meet the specifications set forth in ASTM International D975 .
This bill exempts electricity from certain provisions relating
to labeling and sign requirements that apply to other motor
fuels and would not similarly apply to electricity. For
example, electricity is specifically exempt under BPC Section
13480 from labeling and sign requirements that are otherwise to
be "affixed to each container, receptacle, pump, dispenser, and
inlet end of the fill pipe of each underground storage tank,
from which or into which the product is drawn or poured out for
sale or delivery." The author may wish to consider exempting
electricity from other similar requirements that would not apply
to electricity.
On page 14, line 38, insert: (c) The provisions of this
section do not apply to electricity sold as a motor vehicle
fuel .
On page 19, line 30, insert: This section does not apply to
electricity sold as a motor vehicle fuel.
REGISTERED SUPPORT:
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None on file.
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301