BILL ANALYSIS Ó
AB 808
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
808 (Ridley-Thomas)
As Amended July 16, 2015
Majority vote
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|ASSEMBLY: |71-5 |(May 28, 2015) |SENATE: |40-0 |(September 3, |
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Original Committee Reference: B. & P.
SUMMARY: Expands the authority of the California Department of
Food and Agriculture (CDFA) to include alternative fuels, as
defined; requires the method of sale for all motor vehicle fuels
and lubricants to be consistent with national standards, and
requires the Secretary of the CDFA to establish interim
standards for methods of sale if national standards do not
exist; and makes other conforming changes.
The Senate amendments:
1)Make it unlawful for any person 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.
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2)Prohibits engine oil from being sold or distributed for use in
an internal combustion engine unless the product conforms to
certain specifications.
3)Provides that specified advertising requirements for motor
vehicle fuels do not apply to propane or electricity or
natural gas sold as motor vehicle fuel, as specified.
4)Make other technical and clarifying changes.
FISCAL EFFECT: According to the Senate Appropriations
Committee, 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,
but potentially significant additional costs for increased
inspection, testing, training, and enforcement activities.
COMMENTS:
Purpose. This bill is sponsored by the CDFA. 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."
Background. The CDFA 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
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products. According to the author, for over eight years, the
CDFA 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 BPC.
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.
The first goal under the ZEV Action Plan includes completing
needed infrastructure and planning. The plan specifies the
following action items the CDFA 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
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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 CDFA, in
order for the CDFA 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 CDFA 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 CDFA 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 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 CDFA to ensure consumers
are informed by giving the CDFA the authority to establish a
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single consistent method of sale, advertising, and labeling for
motor vehicle fuels, including alternative fuels.
In addition, according to the CDFA, existing law does not
provide the CDFA 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 CDFA has the enforcement capability necessary to ensure
standards are met.
Analysis Prepared by:
Eunie Linden / B. & P. / (916) 319-3301 FN:
0001875