BILL ANALYSIS �
SB 1455
Page 1
SENATE THIRD READING
SB 1455 (Kehoe)
As Amended May 29, 2012
Majority vote
SENATE VOTE :25-13
TRANSPORTATION 9-4 APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|Bonnie Lowenthal, |Ayes:|Gatto, Blumenfield, |
| |Blumenfield, Bonilla, | |Bradford, |
| |Buchanan, Eng, Furutani, | |Charles Calderon, Campos, |
| |Galgiani, Portantino, | |Davis, Fuentes, Hall, |
| |Solorio | |Hill, Cedillo, Mitchell, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Achadjian, Logue, Wagner, |Nays:|Harkey, Donnelly, |
| |Norby | |Nielsen, Norby, Wagner |
| | | | |
-----------------------------------------------------------------
SUMMARY : Requires, beginning November 1, 2015, and biennially
thereafter, the State Energy Resources Conservation and
Development Commission (Energy Commission) and the California
Air Resources Board (ARB) to report on the status of the state's
alternative transportation fuel use, as specified, in an
integrated energy policy report (IERP). Specifically, this
bill :
1)Makes various findings and declarations relative to
alternative fuel use.
2)States legislative intent that ARB and the Energy Commission
update the analysis of the state alternative transportation
fuels use.
3)Requires ARB and the Energy Commission to coordinate efforts
to implement the provisions of the bill.
4)Directs ARB and the Energy Commission, by November 1, 2014, to
update the economic analysis used to develop and review ARB's
regulations to include a range of petroleum and alternative
fuel prices to more accurately assess the future costs of
SB 1455
Page 2
petroleum-based and alternative fuels.
5)Requires, beginning November 1, 2015, and every two years
thereafter, the Energy Commission, in consultation with ARB,
as a part of its IEPR, to provide a status of the state's
alternative transportation fuel use, including:
a) An evaluation of how new and existing investment
programs could help to increase the state's alternative
fuels use; and,
b) An evaluation of how federal fuel policies and existing
state policies will help increase the use of alternative
fuels in the state.
6)Requires ARB when developing new and amended regulations, to
include a finding on the effect of the proposed regulations on
the state's alternative transportation fuels use.
7)Provides that this bill does not preempt AB 32 and that the
bill be implemented consistent with environmental, public
health, and sustainability considerations articulated in AB 32
clean fuels and vehicle funding statutes.
8)Requires ARB and the Energy Commission, when studying the
state's alternative transportation fuel use, to measure:
a) In-state job creation through the continued development
of an alternative fuels industry in the state;
b) Economic vulnerability of residents to future petroleum
fuel price spikes by the use of either petroleum fuels or
alternative fuels and vehicles;
c) Alternative fuel market penetration in nonattainment
areas; and,
d) Increase access to the supply of alternative fuels and
alternative fuel vehicles for all residents, including
barriers to supply.
EXISTING LAW :
1)Requires the Energy Commission and ARB, as well as other
SB 1455
Page 3
specified state agencies, to develop and adopt a state plan to
increase the use of alternative transportation fuels by June
30, 2007.
2)Establishes a statewide greenhouse gas (GHG) emissions limit
such that by 2020 California reduces its GHG emissions to the
level they were in 1990, pursuant to AB 32 (N��ez and Pavley),
Chapter 488, Statutes of 2006.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Annual costs of approximately $150,000 to the Energy
Commission to evaluate alternative fuels use and include such
information in the IEPR.
2)Annual costs of approximately $300,000 to ARB to evaluate
alternative fuels use.
3)Minor, absorbable costs to the Energy Commission and ARB to
update the economic analysis used in developing ARB's
regulations (special funds).
COMMENTS : As required by law, the Energy Commission 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%
penetration for alternative fuel use in California for on-road
and off-road vehicles by 2022.
This bill does not codify the 2007 goals but rather requires a
study by ARB and the Energy Commission to measure the progress
of alternative fuels use as well as other study parameters as
described above. According to the Western States Petroleum
Association (neutral position on the bill), "In the last 10
years, California has adopted and implemented several complex
programs to achieve California's climate change and alternative
fuels goals?With new vehicle efficiency standards, land use
requirements, and alternative fuels policies already in place
and additional standards planned, proper evaluation of these
programs is prudent before moving forth with any additional
policies."
Support : Writing in support of the bill, the Sierra Club
SB 1455
Page 4
California and others assert that this update of the 2007 plan
and evaluation is a sensible expectation and that the date to
complete it is reasonable. They indicate that both ARB and the
Energy Commission are "setting the state on a path to reduce
petroleum dependence."
Related bill : AB 638 (Skinner), of 2011, would have established
statewide targets for reducing petroleum and increasing
alternative fuels and would have required ARB and the Energy
Commission to take specified steps to attain the targets. AB
638 was held on the Assembly Appropriations Committee Suspense
file.
Analysis Prepared by Ed Imai / TRANS. / (916) 319-2093
FN: 0004987