BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 808 (Ridley-Thomas) - Automotive fuels and products ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 16, 2015 |Policy Vote: B., P. & E.D. 8 - | | | 0, T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 24, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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, AB 808 (Ridley-Thomas) Page 1 of ? 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 AB 808 (Ridley-Thomas) Page 2 of ? 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 AB 808 (Ridley-Thomas) Page 3 of ? 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. -- END --