BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 808|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 808
Author: Ridley-Thomas (D)
Amended: 7/16/15 in Senate
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 8-0, 6/22/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Mendoza, Wieckowski
NO VOTE RECORDED: Jackson
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/14/15
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 71-5, 5/28/15 - See last page for vote
SUBJECT: Automotive fuels and products
SOURCE: California Department of Food and Agriculture
DIGEST: This bill expands the California Department of Food and
Agriculture's regulatory authority regarding alternative fuels,
requires the methods for sales of all motor vehicle fuels and
lubricants to follow specified national standards and requires
the Secretary of the California Department of Food and
Agriculture to establish interim standards for methods of sale
if national standards do not exist.
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Page 2
ANALYSIS:
Existing law:
1) Provides the California Department of Food and Agriculture
(Department) general supervision over weights and measures
and weighing and measuring devices sold or used in the state.
(Business and Professions Code (BPC) § 12100 et seq.)
2) Regulates the sale of, and enforces standards, for petroleum
and hydrogen fuel products, and requires the Department to
establish standards for motor vehicle fuels and other
petroleum products that are offered for sale in the state.
Requires the Department, through the Division of Measurement
Standards, to enforce regulations and standards for motor
vehicle fuels and lubricants. (BPC § 13400 et seq.)
3) Requires the Department, on or before January 1, 2008, to
establish specifications for hydrogen fuels for use in
internal combustion engines and fuel cells in motor vehicles,
as specified. (BPC § 13446)
4) Makes it generally unlawful to sell or deliver for the
purpose of sale, various fuel products unless it conforms to
the Department's specifications. (BPC § 13400 et seq.)
5) Requires that the sale, offer for sale, or advertisement for
sale at retail to the general public of compressed natural
gas be only for use as a motor vehicle fuel, and requires
compressed natural gas and liquefied natural gas to be sold
in specified gallon equivalents. (BPC § 13404)
6) Makes it unlawful for any person or other legal entity to
make any deceptive, false, or misleading statement by any
means whatever regarding quality, quantity, performance,
price, discount, or saving used in the sale or selling of any
petroleum or hydrogen fuel product regulated pursuant to
these provisions. (BPC § 13413)
7) Makes it unlawful for a person to sell or deliver any
petroleum product that fails to meet the specifications
required by these provisions (relating to petroleum and
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hydrogen fuels) or to sell or deliver any petroleum product
into, from, or through an unlabeled or mislabeled device or
container. (BPC § 13595)
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 ether, electricity, ethanol, ethanol fuel
blend, hydrogen, methanol fuel blend, natural gas,
propane, all defined under the bill, and any other fuel
intended for use as a motor vehicle fuel that the
Secretary determines is an alternative fuel that has a
standard specification from a standards development
organization accredited by the American National Standards
Institute, or an interim standard specification, as
specified.
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 vehicle 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
highway.
2) Revises provisions relating to the regulation of motor
vehicle fuels and lubricants to include alternative fuels, as
specified, thereby extending to the Department the authority
to regulate alternative fuels, including setting standards
specific to those types of alternative fuels based on
standards established by various standards development
organizations.
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3) Prohibits any person to sell or offer to sell motor vehicle
fuel for use in any vehicle on the condition that the
purchaser also must purchase or pay for any other products,
merchandise, or services, as specified.
4) 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 Handbook
130-2015, except as specifically modified, amended, or
rejected 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.
5) 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.
6) Exempts electricity from meeting certain labeling standards
for motor vehicle fuels, certain advertising standards, and
sale standards, as specified.
7) Exempts natural gas from certain advertising standards, as
specified.
8) 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.
9) Extends the enforcement ability of the Department to these
added motor vehicle fuels and automotive products.
10)Makes additional conforming and related changes.
Background
This bill is intended to 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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Governor's Executive Order B-16-2012. Recognizing the multiple
benefits of zero-emission vehicles, 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
(ZEV) to protect the environment, stimulate economic growth and
improve the quality of life in the State."
The Department's Regulations of Motor Vehicle Fuels. According
to the Department, in order for the Department to comply with
Executive Order B-16-2012, 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. 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 of 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 allows 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 makes clear that the
Department has the enforcement capability necessary to ensure
standards are met.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
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According to the Senate Appropriations Committee, this bill will
result in minor and absorbable costs to the Department. The
Committee notes that as alternative fuels become more
commercially viable and are more widely available, the
Department would incur unknown, but potentially significant
additional costs for increased inspection, testing, training,
and enforcement activities impacting the Food and Agriculture
Fund and/or General Fund.
SUPPORT: (Verified8/28/15)
California Department of Food and Agriculture (source)
Clean Energy
California Biodiesel Alliance
The California Natural Gas Vehicle Coalition
UPS
OPPOSITION: (Verified8/28/15)
None received
ARGUMENTS IN SUPPORT: Supporters believe that expanding the
authority of the Department's Division of Measurement Standards
over all vehicle fuels, including alternative fuels, new
automotive products, as well as establishing appropriate methods
of sale for such fuels will ensure consistency with national
standards.
ASSEMBLY FLOOR: 71-5, 5/28/15
AYES: Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta,
Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia,
Gipson, Gonzalez, Gordon, Gray, Hadley, Roger Hernández,
Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,
Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,
Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
AB 808
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Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Weber, Wilk, Williams, Wood, Atkins
NOES: Beth Gaines, Gatto, Harper, Melendez, Waldron
NO VOTE RECORDED: Achadjian, Bloom, Gomez, Grove
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
8/31/15 9:06:12
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