BILL ANALYSIS �
SB 1455
Page 1
SENATE THIRD READING
SB 1455 (Kehoe)
As Amended August 24, 2012
Majority vote
SENATE VOTE :25-13
TRANSPORTATION 9-4 APPROPRIATIONS 12-5
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|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 |
| | | | |
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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). Extends various fees
and surcharges related to the clean air, fuel and vehicle
programs of ARB, Energy Commission, and the State Bureau of
Automotive Repair (BAR). 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
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regulations to include a range of petroleum and alternative
fuel prices to more accurately assess the future costs of
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.
9)Extends from January 1, 2015/2016 to December 31, 2023,
various fees and surcharges to fund the clean air and
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alternative fuels and vehicle programs of ARB, the Energy
Commission, and BAR. The fees and surcharges are imposed
pursuant to AB 118 (Nu�ez and Pavley), Chapter 750, Statutes
of 2007, AB 923 (Firebaugh), Chapter 707, Statutes of 2004,
and the Carl Moyer Memorial Air Quality Standards Attainment
(Carl Moyer) Program.
10)Imposes specific requirements upon the Energy Commission
relative to their adoption of the Clean Fuels Outlet
regulation and the deployment of hydrogen fueling stations.
11)Extends the funding allocation formula and the terms and
conditions for allocation to the air pollution districts from
the Carl Moyer Program from January 1, 2015, to December 31,
2023.
EXISTING LAW :
1)Requires the Energy Commission and ARB, as well as other
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.
3)Establishes the Fleet Modernization Program, the Alternative
and Renewable Fuel and Vehicle Technology Program, and the Air
Quality Improvement Program to support the implementation of
AB 32.
4)Establishes the Carl Moyer Program as administered by ARB that
funds the incremental cost of cleaner-than-required vehicles,
engines, and equipment. The primary objective of the program
is to achieve air quality emission reductions that would not
otherwise occur through regulations or other legal mandates.
FISCAL EFFECT : Unknown (the fiscal impacts of the amendments
have not been analyzed)
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%
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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 "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."
Existing law establishes various programs to help implement the
state's AB 32 greenhouse gas emission reduction goals:
1)The Enhanced Fleet Modernization Program, under which ARB, in
consultation with the BAR, permanently removes cars and small
trucks from operation due to the voluntary retirement of the
vehicle by their owners. The program is funded through a $1
increase in the annual vehicle registration fee that is set to
expire January 1, 2015.
2)The Alternative and Renewable Fuel and Vehicle Technology
Program, which the Energy Commission administers to provide
incentives to accelerate the development and deployment of
clean, efficient, lowcarbon alternative fuels and
technologies. The program is funded through increases in
vehicle registration fees, smog abatement fees, boat
registration fees, and special identification plate fees, plus
$10 million annually in perpetuity from the Public In3)terest
Research, Development, and Demonstration Fund, which is
derived from a portion of electric utility rates. With the
exception of the funds from the electric utilities, the
authority to collect the fees expire on January 1, 2015.
4)The Air Quality Improvement Program, which ARB administers in
consultation with local air districts, funds projects that
reduce criteria air pollutants, improve air quality, and
provide research for alternative fuels and vehicles, vessels,
and equipment technologies. The program is funded by
increases in smog abatement fees, boat registration fees, and
special identification plate fees scheduled to expire January
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1, 2015.
This bill would extend the various fees above that provide
funding for the implementation of AB 32 goals to December 31,
2023.
Existing law establishes the Carl Moyer Program that was
originally designed to improve the state's air quality in terms
of heavy-duty diesel truck emissions. The program provides
incentive grants for cleaner-than-required engines, equipment
and other sources of pollution providing early or extra emission
reductions. Legislation enacted in 2004 expanded the program's
scope, along with funding sources, to include other vehicles,
marine vessels, farm equipment, locomotives, and airport ground
support equipment. Portions of the program that was expanded in
2004 are scheduled to sunset on January 1, 2015, coinciding with
the sunset of the funding sources.
This bill would extend the authorization for certain portions of
the Carl Moyer Program and attendant funding until December 31,
2023.
Existing law authorizes an increase in the surcharge air quality
management districts may levy on motor vehicle registrations
within their jurisdictions from $4 to $6, as well as authorizes
an increase of the California Tire Fee by $0.75 to fund programs
to mitigate or remediate air pollution caused by tires. The
authority for these fees sunset on January 1, 2015.
This bill would extend the authorization for the fees on tires
and the surcharge on motor vehicle vehicle registration to
December 31, 2023.
On January 26, 2012, ARB considered amendments to the Clean
Fuels Outlet regulation. The amendments are required be
submitted to the Office of Administrative Law by December 31,
2012 to take effect. The amendments to the Clean Fuels Outlet
regulation were designed to ensure that there was sufficient
hydrogen fueling infrastructure necessary to meet forecasted
fuel cell vehicle penetration. According to the ARB, the
infrastructure is needed to demonstrate a market commitment to
hydrogen fueling infrastructure. To meet the forecasted station
infrastructure needed, the regulation required that refiners
provide the funding for publicly available hydrogen fueling
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stations.
This bill would prohibit ARB from submitting the January 26,
2012 regulation amendments pertaining to the hydrogen fueling
infrastructure to the Office of Administrative Law. Further,
the bill would prohibit ARB from enforcing from enforcing any
element of the regulation that requires or has the effect of
requiring any person to construct, operate, or provide funding
for the construction or operation of any publicly available
hydrogen fueling station. The legislation would also dedicate
$20 million from the AB 118 program in each fiscal year
beginning July 1, 2013 through June 30, 2016 (not to exceed 20%
of total Energy Commission AB 118 funds annually) to hydrogen
infrastructure. The CEC may allocate additional funds after
July 1, 2016 as necessary to achieve the publicly available
hydrogen fueling infrastructure sufficient to support automobile
manufacturer deployment projections for fuel cell vehicles in
California.
The provisions of this bill pertaining to the extension of the
fees and surcharges and the ARB Clean Fuels Outlet regulation
have not been heard in any policy or fiscal committee of the
Assembly.
Support : Writing in support of the bill, the Sierra Club
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: 0005643
SB 1455
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