BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1455|
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THIRD READING
Bill No: SB 1455
Author: Kehoe (D)
Amended: 5/29/12
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM. : 5-3, 04/17/12
AYES: DeSaulnier, Kehoe, Lowenthal, Pavley, Simitian
NOES: Gaines, Harman, Wyland
NO VOTE RECORDED: Rubio
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 5-2, 4/23/12
AYES: Simitian, Hancock, Kehoe, Lowenthal, Pavley
NOES: Strickland, Blakeslee
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/24/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
SUBJECT : Alternative fuels
SOURCE : CalSTART
Natural Gas Vehicle Coalition
DIGEST : This bill requires the California Energy
Commission (CEC) and the Air Resources Board (ARB) to
coordinate efforts in order to implement the states
alternative transportation fuels goal. The bill requires
several activities aimed to encourage implementation of
this goal, including evaluating investment programs that
may be used to encourage alternative fuels use, evaluating
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federal fuel polices, and updating economic analyses of
petroleum fuel prices. The CEC and ARB would be required
to report their progress on reaching the state alternative
transportation fuels goals biennially.
ANALYSIS : In 2005, the Legislature passed and Governor
signed AB 1007 (Pavley), Chapter 371, which required the
CEC, in partnership with 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.States it is the intent of the Legislature that the ARB
and CEC to implement the state alternative transportation
fuels goal of 26 percent by 2022.
2.Requires that, beginning November 1, 2015, and every two
years thereafter, the CEC in its Integrated Energy Policy
Report (IEPR) report on the status and implementation of
reaching the goal.
3.Directs ARB and CEC by November 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.
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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.
1.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.
2.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.
3.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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Ongoing costs of approximately $300,000 to the Air
Pollution Control Fund (special fund) beginning in 2013
for the evaluation, analysis, review, and reporting aimed
to encourage implementation of the state alternative
transportation fuels goal.
Minor and absorbable costs to the CEC for the evaluation
and reporting aims to encourage implementation of the
state alternative transportation fuels goal.
SUPPORT : (Verified 5/29/12)
CalSTART (co-source)
Natural Gas Vehicle Coalition (co-source)
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Bay Bio
Better Place
BIOCOM
California Electric Vehicle Coalition
Clean Energy
CODA Electric
Coulomb Technologies
Mission Motors Company
Motiv Power Systems
Plug In America
Propel Fuels, Inc.
Quallion LLC
San Diego Gas & Electric
Sierra Club California
South Coast Air Quality Management District
Southern California Gas Company
Tesla Motors, Inc.
Waste Management
Zero Motorcycles, Inc.
OPPOSITION : (Verified 5/29/12)
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
Kern County Black Chamber of Commerce
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
Slavic American Chamber of Commerce
Small Business Action Committee
South Bay Latino Chamber of Commerce
Western States Petroleum Association
ARGUMENTS IN SUPPORT : The author introduced this bill to
build upon the alternative fuels report that AB 1007
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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
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.
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.
JJA:nl 5/29/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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