BILL ANALYSIS Ó AB 808 Page 1 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 | | | | | | | | | | | | ------------------------------------------------------------------- AB 808 Page 2 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 AB 808 Page 3 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. AB 808 Page 4 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." AB 808 Page 5 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. AB 808 Page 6 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 AB 808 Page 7 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 Page 8