BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1074


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          Date of Hearing:  April 13, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1074  
          (Cristina Garcia) - As Amended March 26, 2015


          SUBJECT:  Alternative fuels:  infrastructure


          SUMMARY:  Directs the State Energy Resources Conservation and  
          Development Commission (Commission) to develop an alternative  
          refueling infrastructure plan, as part of a broader assessment,  
          that identifies the number of alternative fueling stations that  
          will be needed to fulfill the state's clean transportation  
          goals.  Specifically, this bill:  


          1)Declares that it is the policy of the state and intent of the  
            Legislature to accelerate the adoption of alternatively fueled  
            vehicles by increasing alternative fueling options needed to  
            facilitate electric, hydrogen, and natural gas vehicles along  
            passenger and goods movement corridors.


          2)Specifies that "alternative fuel" includes biodiesel,  
            bio-alcohol (methanol, ethanol, and butenal), chemically  
            stored electricity (battery and fuel cells), hydrogen,  
            compressed fossil or non-fossil natural gas, liquefied fossil  
            or non-fossil natural gas, vegetable oil, propane, and other  
            biomass sources.










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          3)Defines "alternative refueling infrastructure" as equipment  
            that is available to the public and used to charge or store  
            and dispense alternative fuel to vehicles in accordance with  
            industry codes and standards.


          4)Requires the Commission to conduct an assessment and develop  
            an integrated strategy to maximize the benefits and scope of  
            alternative refueling infrastructure to help the state achieve  
            climate change, air quality, and economic goals.


          5)Requires the Commission to develop a refueling infrastructure  
            plan that identifies the number and types of stations and  
            geographical areas where additional stations will be needed.


          EXISTING LAW:  


          1)Requires the Commission to prepare a biennial integrated  
            energy policy report containing an overview of major energy  
            trends and issues facing the state.


          2)Requires the Commission to make recommendations to improve the  
            efficiency of transportation energy use, reduce dependence on  
            petroleum fuels, decrease environmental impacts from  
            transportation energy use, and contribute to reducing  
            congestion, promoting economic development, and enhancing  
            energy diversity and security.


          FISCAL EFFECT:  Unknown


          COMMENTS:  Despite making significant strides in reducing  
          greenhouse gas (GHG) emissions, substantial efforts still need  
          to take place in order for the state to achieve the emissions  








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          reduction goals set forth in AB 32 (Nunez), Chapter 488,  
          Statutes of 2006, and Governor Schwarzenegger's Executive Order  
          S-3-05.  Given that the transportation sector in California is  
          responsible for nearly 40% of GHG emissions, it stands to reason  
          that reducing emissions in this sector is paramount to achieving  
          the state's climate change goals.

          To help reduce transportation's impact on air quality,  
          California has committed to transitioning its vehicle fleet from  
          predominantly fossil fueled vehicles to zero- and near-zero  
          emission vehicles.  Many of the efforts to accomplish this  
          transition involve advancing clean fuel and vehicle technologies  
          and incentivizing their purchase and use.  Equally important to  
          the deployment of these vehicles is supplying the fueling  
          infrastructure needed to support the fleet.  

          According to the author, the existing refueling infrastructure  
          for alternatively fueled vehicles is insufficient to support the  
          widespread adoption in California.  The author believes that to  
          achieve widespread, rapid adoption, the state needs to be  
          "saturated" with fueling stations; particularly in disadvantaged  
          communities as well as along key transportation corridors.  The  
          author believes that providing more alternative fueling  
          opportunities will decrease range anxiety and drive consumer  
          choice toward increased purchase and use of alternatively fueled  
          vehicles.  The author asserts that existing alternative fueling  
          planning efforts have merely identified estimated numbers of  
          alternative fueling stations that are needed to support and  
          encourage adoption but that California would be better served if  
          the locations of alternative fueling stations, along with the  
          numbers and types that are needed, are identified.  

          To accomplish this, the author has introduced AB 1074 which  
          would require the Commission to conduct an assessment and  
          develop an integrated strategy to achieve build-out of  
          alternative refueling infrastructure in California.  The  
          assessment prepared by the Commission would include a plan to  
          identify both the number and types of fueling stations that are  
          needed to accelerate the adoption of alternatively fueled  








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          vehicles and to identify geographical areas where the stations  
          should be located.

          There have been a number of efforts undertaken by both state and  
          local entities as well as by private businesses and stakeholder  
          groups over the last decade or so with regard to establishing  
          alternative fueling technologies and expanding alternative  
          fueling infrastructure.  In fact, Governor Brown issued an  
          Executive Order B-16-2012 in March 2012 that directed state  
          governments to help accelerate the market for zero-emission  
          vehicles and established a milestone of placing 1.5 million  
          zero-emission vehicles on the California roads by 2025. 

          To achieve the target set forth in the Executive Order, the  
          Governor's office worked with state agencies, businesses and  
          other stakeholder groups to produce the Zero Emission Vehicle  
          Action Plan of 2013 (ZEV Action Plan).  The ZEV Action Plan  
          spoke to achieving four main goals including:  1) completing  
          needed infrastructure planning; 2) expanding consumer awareness  
          and demand; 3) transforming fleets; and 4) growing jobs and  
          investment in the private sector.  

          According to the Governor's office, several objectives in the  
          plan have already been completed and a summit is planned for May  
          of this year to bring together key industry, nonprofit, and  
          local and state government leaders to evaluate progress towards  
          achieving remaining goals.  These, as well as numerous other  
          efforts aimed at increasing demand and use of alternatively  
          fueled vehicles, have resulted in the development of numerous  
          planning and program documents and data that would be useful to  
          the Commission in developing the integrated strategy and  
          planning documents called for in this bill.  While AB 1074 could  
          be construed as yet another effort designed to explore fueling  
          infrastructure needs, it can also be regarded as an opportunity  
          for the Commission to conduct a comprehensive review of existing  
          information and compile new, relevant data into a unified,  
          comprehensive infrastructure planning document can be used by  
          public and private entities to achieve a fully integrated  
          alternative fueling infrastructure plan.  








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          Writing in support of the bill, the Southern California Gas  
          Company (SoCalGas) points out that convenient access to  
          alternative fuel stations remains a barrier to accelerated  
          adoption of clean vehicles.  They note that in order to assist  
          with the transition to clean vehicles, California needs a  
          focused roadmap that strategically identifies where alternative  
          fueling stations should to be located.  They contend that before  
          alternatively fueled cars and trucks, including heavy-duty  
          trucks, are sold or leased, consumers and businesses must have  
          confidence that these vehicles can refuel near their homes, jobs  
          or in other locations that allow them to access key destinations  
          throughout California and that developing a comprehensive  
          infrastructure plan would make this happen. 





          Suggested amendments: 

          1)Given that there is a great deal of information already  
            available in related documents, requiring the Commission to  
            recreating it would be duplicative.  Therefore, the committee  
            recommends that the bill be amended to explicitly authorize  
            the Commission to, where applicable, utilize existing data and  
            information to prepare the documents required by the bill.   

          2)To ensure that information is gathered and presented in a  
            timely fashion, the committee recommends that the bill be  
            amended to include a specific date by which the Commission  
            must complete the required studies and provide them to the  
            Legislature.  In an effort to provide the Commission adequate  
            time to prepare the information but not so long as to allow  
            the information to become "stale," the Committee recommends  
            the bill require that the information required by the bill be  
            provided to the Legislature on or before January 1, 2017.  








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          3)Additionally, the terms used to describe electricity as a form  
            of "alternative fuel" are non-standard.  To ensure uniformity,  
            the Committee recommends that the terms "chemically stored"  
            and "(batteries and fuel cells)" used to describe electricity  
            be deleted.

          Previous legislation:  AB 1257 (Bocanegra) Chapter 749, Statutes  
          of 2013, enacted the Natural Gas Act that required the  
          Commission, every four years, to prepare and submit to the  
          Legislature a report containing specified information  
          identifying strategies to maximize the benefits obtained from  
          natural gas as an energy source.


          AB 8 (Perea), Chapter 401, Statutes of 2013, among other things,  
          extended until January 1, 2024, extra fees on vehicle  
          registrations, boat registrations, and tire sales in order to  
          fund programs that support the production, distribution, and  
          sale of alternative fuels and vehicle technologies, as well as  
          air emissions reduction efforts.


          Executive Order B-16-2012, signed by Governor Brown on March 23,  
          2012, set a long-term target of reaching 1.5 million zero  
          emission vehicles on California's roadways by 2025 and also set  
          a longer term target of reducing transportation-related  
          greenhouse gas emission by 80 percent below 1990 levels by 2050.


          Executive Order S-3-05, signed by Governor Schwarzenegger on  
          June 1, 2005, established GHG reduction targets that called for  
          reducing GHG emissions to 80% below 1990 levels in California by  
          2050.


          AB 32 (Nunez), Chapter 488, Statutes of 2006, required the Air  
          Resources Board to develop a plan of how to reduce emissions to  
          1990 levels by the year 2020.








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          REGISTERED SUPPORT / OPPOSITION:




          Support
          Los Angeles Area Chamber of Commerce


          Southern California Gas Company


          Southwest California Legislative Counsel




          Opposition
          None on file




          Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093





















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