BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 808 (Ridley-Thomas) - Automotive fuels and products
          
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          |Version: July 16, 2015          |Policy Vote: B., P. & E.D. 8 -  |
          |                                |          0, T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 24, 2015   |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File. 







          Bill  
          Summary:  AB 808 would expand the Department of Food and  
          Agriculture's (CDFA's) regulatory authority regarding  
          alternative fuels, require the methods for sales of all motor  
          vehicle fuels and lubricants to follow specified national  
          standards, and require the Secretary of CDFA to establish  
          interim standards for methods of sale if national standards do  
          not exist.


          Fiscal  
          Impact:  CDFA costs in the near term would be minor and  
          absorbable.  As alternative fuels become more commercially  
          viable and are more widely available, CDFA would incur unknown,  







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          but potentially significant additional costs for increased  
          inspection, testing, training, and enforcement activities. (Food  
          and Agriculture Fund and/or General Fund)


          Background:  Existing law provides CDFA's Division of Measurement Standards  
          with general authority over the regulation of weights and  
          measures and all commercially-used weighing and measuring  
          devices, and requires CDFA to establish and enforce regulations  
          and standards for the sale of motor vehicle fuels, petroleum  
          products, and lubricants offered for sale in the state.
          Inspection and testing of weighing and measuring devices is  
          overseen in each county by the County Sealer of Weights and  
          Measures.  Sealers and their offices enforce the laws and  
          regulations of the state under the general direction and  
          oversight of CDFA. Sealers protect both consumers and businesses  
          by ensuring that consumers reliably get what they pay for, and  
          that businesses are competing fairly.  Existing law authorizes a  
          county board of supervisors to charge an annual registration fee  
          to recover county sealer costs of testing and inspection of  
          weighing and measuring devices, including a specified CDFA  
          administrative fee that covers its administrative and  
          enforcement costs related to county sealers' inspection and  
          testing of devices.  The authority to charge those fees expires  
          on January 1, 2016.  Recently enacted legislation will extend  
          that fee authority until 2019 (see "Related Legislation" below).




          Proposed Law:  
            AB 808 would expand CDFA regulatory authority regarding motor  
          vehicle fuels and lubricants to include alternative fuels.   
          Specifically, this bill would:
           Revise existing definitions relating to petroleum and hydrogen  
            fuels, defines "engine fuel" and "motor vehicle fuel" for  
            purposes of CDFA regulatory authority, as specified.
           Define "alternative fuels" to include biodiesel, biodiesel  
            blend, dimethyl ether, electricity, ethanol, ethanol fuel  
            blend, hydrogen, methanol fuel blend, natural gas, propane,  
            all of which are defined under the bill, and any other fuel  
            intended for use as a motor vehicle fuel that the Secretary  
            determines is an alternative fuel.
           Revise provisions relating to the regulation of motor vehicle  








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            fuels and lubricants to include alternative fuels, as  
            specified, thereby extending CDFA authority to regulate those  
            fuels, including the establishment of standards, as specified.
           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 the National  
            Institute of Standards and Technology (NIST) Handbook  
            130-2015, except as specifically modified, amended, or  
            rejected by the Secretary.
           Authorize the Secretary, in the absence of national standards,  
            to adopt interim standards of method of sale until the time  
            when the standards are adopted by the National Conference on  
            Weights and Measures. 
           Make 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.
           Define diesel exhaust fluid and glycerin (antifreeze), thereby  
            subjecting these products to CDFA regulation.
           Make various other related and conforming changes. 


          Related  
          Legislation:  AB 1907 (Ridley-Thomas), Ch. 805/2014, requires  
          that Compressed Natural Gas and Liquefied Natural Gas sold at  
          retail for use as a motor vehicle fuel be sold in a gasoline  
          gallon or diesel gallon energy equivalent, respectively.
          AB 296 (Dodd), Ch. 113/2015, extends the authorization for  
          county boards of supervisors and CDFA to charge specified fees  
          related to the inspection and testing of weighing and measuring  
          devices, and the administration and oversight of those  
          activities, as specified, until January 1, 2019.




          Staff  
          Comments:  In anticipation of the growth of markets for the  
          retail sale of alternative fuels, this bill is intended to  
          provide CDFA with the same regulatory authority over alternative  
          fuels that it has over other motor vehicle fuels, petroleum  
          products, and vehicle lubricants.  Since these are primarily  
          nascent markets, CDFA has indicated it would only incur minor  








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          and absorbable costs in the near term.  As oversight activities  
          regarding retail sales of alternative fuels increase in the  
          coming years, CDFA is likely to incur additional inspection,  
          oversight, training, and enforcement costs.  For illustrative  
          purposes, CDFA identified approximately $1 million in costs  
          associated with AB 1907 last year, which provided for the  
          consistent retail sale of CNG and LNG.


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