BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 1455
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Kehoe
VERSION: 4/9/12
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: April 17, 2012
SUBJECT:
Alternative Fuels
DESCRIPTION:
This bill codifies the state's alternative, transportation fuels
goal and its implementation.
ANALYSIS:
In 2005, the Legislature passed and Governor signed AB 1007
(Pavley), Chapter 371, which required the California Energy
Resources Conservation and Development Commission (CEC), in
partnership with California Air Resources Board (ARB) and other
specified state agencies, to develop and adopt a state plan to
increase the use of alternative transportation fuels by June 30,
2007. The CEC adopted the State Alternative Fuels Plan at its
December 5, 2007 meeting. The plan outlined specific strategies
and targets to increase the use of alternative fuels, including
setting a goal of 26 percent penetration for alternative fuel
use in California for on-road and off-road vehicles by 2022.
In 2006, the Legislature passed and the Governor signed AB 32
(N��ez and Pavley), Chapter 488, to establish a statewide
greenhouse gas (GHG) emissions limit such that by 2020
California reduces its GHG emissions to the level they were in
1990.
This bill :
1.Directs the ARB and CEC to implement the state alternative
transportation fuels goal of 26 percent by 2022.
2.Requires that, beginning in 2013 and every two years
thereafter, the CEC in its Integrated Energy Policy Report
(IEPR) report on the status and implementation of reaching the
goal.
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3.Directs ARB and CEC by January 1, 2014 specifically to:
a. Update the economic analysis used to develop and review
ARB's regulations to include a range of petroleum fuel
prices to more accurately assess the future costs of
petroleum-based fuels.
b. Evaluate how new and existing investment programs could
help to attain the state's alternative fuels goal and
include this evaluation in the IEPR.
c. Evaluate how federal fuel policies and existing state
policies will help attain the state alternative fuel goal
and include this evaluation in the IEPR.
4.Requires that when developing new and amended regulations, ARB
and CEC include a finding on the effect of any proposed
regulations on the state alternative transportation fuels
goal.
5.Provides that it does not preempt AB 32 and that its
implementation shall be consistent with environmental, public
health, and sustainability considerations articulated in
existing state law, including that on a full fuel-cycle
assessment basis, its implementation not adversely impact
natural resources, especially state and federal lands.
6.Instructs ARB and CEC, when implementing the goal, to seek to
create in-state jobs, decrease economic vulnerability of
Californians due to petroleum price spikes, maximize
alternative fuel use in areas with the worst air quality, and
increase access to alternative fuels for all residents.
COMMENTS:
1.Purpose . The author introduced this bill to build upon the
alternative fuels report that
AB 1007 mandated and the subsequent guidelines ARB and the CEC
approved. She notes that the bill also complements executive
branch actions to develop strategies that will achieve our
transition away from petroleum dependence and to ensure that
these strategies create jobs, produce clean fuels, and reduce
greenhouse gas emission reductions.
Supporters of the bill state that it is important to codify
SB 1455 (KEHOE) Page 3
the AB 1007 target and to build off of AB 1007 with additional
strategic planning, including updates of the economic analysis
used in developing alternative fuel regulations, evaluating
new and existing alternative fuel goals, and creating jobs in
the alternative fuels sector in California. They further note
that the bill will provide market signals that attract private
investment and business to California by creating a long-term
and established commitment to the clean transportation and
alternative fuel industries, allowing investors and consumers
to plan for the future and transition toward a cleaner and
more efficient transportation system.
7.Arguments in opposition . Opponents state that the 26 percent
target is an arbitrary and infeasible goal, which is
unnecessary in light of California's many adopted fuels
policies. In codifying the target, this bill fails to account
for numerous policies now in place, such as the Low Carbon
Fuel Standard and the "cap & trade for fuels" regulations that
ARB adopted as part of its implementation of AB 32. They
further note that the bill grants ARB and CEC open-ended
authority to achieve the alternative fuels target, which
opponents note would be very costly to implement. They point
out that fully implementing the state transportation fuels
goal would be incredibly expensive.
8.Double-referral . The Rules Committee referred this bill to
both the Transportation and Housing Committee and to the
Environmental Quality Committee. Therefore, if this bill
passes this committee, it will be referred to the Committee on
Environmental Quality.
POSITIONS: (Communicated to the committee before noon on
Wednesday, April 11,
2012)
SUPPORT: CalSTART (co-sponsor)
Natural Gas Vehicle Coalition (co-sponsor)
Bay Bio
Better Place
BIOCOM
California Electric Vehicle Coalition
Clean Energy
CODA Electric
Coulomb Technologies
Dow Kokam
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Electric Vehicles International
Mission Motors Company
Motiv Power Systems
Propel Fuels, Inc.
Plug In America
Quallion LLC
San Diego Gas & Electric
Sierra Club California
Southern California Gas Company
Tesla Motors, Inc.
U.S. Hybrid Corporation
Waste Management
Zero Motorcycles, Inc.
OPPOSED: Antelope Valley Hispanic Chamber of Commerce
Association of Global Automakers
Black Business Association
California Association of Black Pastors
California Chamber of Commerce
California Independent Petroleum Association
California Manufacturers and Technology
Association
California Small Business Alliance
California Taxpayers Association
California Hispanic Chambers of Commerce
CambodianAmerican Chamber of Commerce
Carson Black Chamber of Commerce
Coalition of Energy Users
Greater Corona Hispanic Chamber of Commerce
Independent Oil Producers Agency
Kern County Black Chamber of Commerce
Kern County Taxpayers Association
Long Beach Black Chamber of Commerce
Los Angeles Metropolitan Hispanic Chamber of
Commerce
Moreno Valley Black Chamber of Commerce
National Federation of Independent
Business/California
Regional Black Chamber of Commerce of San
Fernando Valley
Slavic American Chamber of Commerce
Small Business Action Committee
Solano County Black Chamber of Commerce
South Bay Latino Chamber of Commerce
Western States Petroleum Association
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