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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