BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 808


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          ASSEMBLY THIRD READING


          AB  
          808 (Ridley-Thomas)


          As Amended  May 4, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Business &      |13-0  |Bonilla, Jones,     |                      |
          |Professions     |      |Baker, Bloom,       |                      |
          |                |      |Chang, Dodd,        |                      |
          |                |      |Eggman, Gatto,      |                      |
          |                |      |Holden, Mullin,     |                      |
          |                |      |Ting, Wilk, Wood    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |15-0  |Gomez, Bigelow,     |                      |
          |                |      |Bloom, Bonta,       |                      |
          |                |      |Calderon, Chang,    |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Holden, Quirk,      |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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                                                                       AB 808


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          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.  Specifically, 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,  
               all defined under this bill, and any other fuel intended for  
               use as a motor vehicle fuel that the Secretary of Department  
               of Food and Agriculture 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  








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               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 provided by the Legislature or modified, amended,  
            or rejected by regulations adopted 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,  
            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.  










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          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:  According to the Assembly Appropriations  
          Committee, minor and absorbable impacts to the Department.



          COMMENTS:



          Purpose.  This bill is sponsored by the Department.  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 products are  
          regulated in a similar manner as traditional fuels and automotive  
          products."  











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          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 eight 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 Business and  
          Professions Code.    



          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% 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 timely opportunity  
          to accelerate use of this commercially available technology.  








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          The first goal under the ZEV Action Plan includes completing  
          needed infrastructure and planning.  The plan specifies the  
          following action items the Department is responsible for,  
          including:  1) supporting the development of standards for  
          electric chargers and hydrogen stations to ensure that drivers  
          understand charging and fueling costs; 2) 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 3) 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.



          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  








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          supports the development of standards for 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.      



          Analysis Prepared by:                     Eunie Linden / B. & P. /  
          (916) 319-3301   FN: 0000524















                                                                       AB 808


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