BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1455|
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UNFINISHED BUSINESS
Bill No: SB 1455
Author: Kehoe (D)
Amended: 8/24/12
Vote: 27
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
SENATE FLOOR : 25-13, 5/31/12
AYES: Alquist, Calderon, Corbett, Correa, De Le�n,
DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Rubio, Simitian, Steinberg, Vargas, Wolk, Wright, Yee
NOES: Anderson, Berryhill, Blakeslee, Cannella, Dutton,
Emmerson, Fuller, Gaines, Harman, Huff, La Malfa,
Walters, Wyland
NO VOTE RECORDED: Runner, Strickland
ASSEMBLY FLOOR : Not available
SUBJECT : Alternative fuels and vehicle programs
CONTINUED
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SOURCE : CalSTART
DIGEST : This bill, extends until December 1, 2023,
various fees and surcharges related to the clean air, fuel,
tire recycling, and vehicle programs of the Air Resources
Board (ARB), the California Energy Commission (CEC), the
Department of Resources Recycling and Recovery
(CalRecycle), and the State Bureau of Automotive Repair
(BAR). This bill prohibits ARB from moving forward with
implementation of the Clean Fuels Outlet regulation, and
instead directs funds from the Alternative and Renewable
Fuel and Vehicle Technology Fund for the construction and
operation of a hydrogen fueling network in California.
This bill requires CEC and ARB to report on the status of
the state's alternative transportation fuel use in the
Integrated Energy Policy Report (IEPR).
Assembly Amendments extend the sunset dates of various
clean air and alternative fuels and vehicle programs, and
the related fees and surcharges, under ARB, CEC, and BAR
until December 31, 2023, as specified, and prohibit ARB
from submitting regulations related to the Clean Fuels
Outlet regulation and the deployment of hydrogen fueling
stations to the Office of Administrative Law, as specified.
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.
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This bill:
1.Extends the sunset dates of various clean air and
alternative fuels and vehicle programs, and the related
fees and surcharges, under ARB, CEC, and BAR to December
31, 2023. The fees and surcharges are:
A. AB 118 (Chapter 750, Statutes of 2007, Nunez),
which authorizes a vehicle registration fee to fund
the Alternative and Renewable Fuel and Vehicle
Technology Program;
B. AB 923 (Chapter 707, Statutes of 2004, Firebaugh),
which increased the vehicle registration fee for
vehicles registered in specified areas in the state
and increased the Tire Recycling Fee to fund air
emissions reduction activities.
C. The Carl Moyer Memorial Air Quality Standards
Attainment (Carl Moyer) Program, which can be used to
fund the incremental cost of cleaner-than-required
vehicles, engines, and equipment.
1.Prohibits ARB from submitting regulations related to the
Clean Fuels Outlet regulation and the deployment of
hydrogen fueling stations to the Office of Administrative
Law, and instead:
A. Defines "publicly available hydrogen fueling
station" to mean the equipment used to store and
dispense hydrogen fuel to vehicles according to
industry codes and standards that is open to the
public.
B. Requires ARB to aggregate and make available to the
public no later than January 1, 2014, and every two
years thereafter, the number of vehicles that
automobile manufacturers project to be sold or leased.
C. Requires CEC to allocate twenty million dollars
each fiscal year, beginning July 1, 2013, through June
30, 2016, and up to twenty million dollars
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($20,000,000) each fiscal year thereafter, not to
exceed 20 percent of moneys appropriated by the
Legislature from the Alternative and Renewable Fuel
and Vehicle Technology Fund, for purposes of
constructing and operating a hydrogen fueling network
sufficient to provide convenient fueling to vehicle
owners and expand that network as necessary to support
a growing market for vehicles requiring hydrogen fuel,
until there are at least 100 publicly available
hydrogen fueling stations
D. Requires CEC's expenditures not exceed 20 percent
of the moneys appropriated annually by the Legislature
from the Alternative and Renewable Fuel and Vehicle
Technology Fund.
E. Permits CEC to defer allocating the moneys as
needed to keep the number of fueling stations
appropriate for the fueling needs of hydrogen
vehicles.
F. Once CEC determines, in consultation with ARB, that
the private sector is establishing publicly available
hydrogen fueling stations without the need for
government support, requires CEC to cease providing
funding for those stations.
G. Requires, on or before December 31, 2015, and
annually thereafter, that ARB and CEC jointly review
and report on progress toward establishing a hydrogen
fueling network, as specified.
H. Authorizes CEC to design loan incentive programs,
revolving loan programs, and other forms of financial
assistance, and authorizes CEC to enter into an
agreement with the Treasurer to provide financial
assistance to further the development of the hydrogen
fueling network.
I. Requires that funds appropriated to CEC for the
purposes of this bill be available for encumbrance by
CEC for up to four years from the date of the
appropriation.
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J. Requires ARB, no later than July 1, 2013, to
convene a working group to evaluate the policies and
goals contained within the Carl Moyer and Assembly
Bill 923 (Chapter 707, Statutes of 2004) programs.
AA. Sunsets these provisions on December 31, 2023.
1.Directs ARB and CEC, 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 petroleum-based and alternative fuels.
2.Beginning November 1, 2015, and every two years
thereafter, requires CEC, in consultation with ARB and 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.
1.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.
2.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.
3.Requires ARB and CEC, 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;
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee:
Annual fee revenue, ranging from $48 million to $60
million, from the tire fee extension, 57% of which
(roughly $27 million to $34 million) goes to Calrecycle
to fund waste tire management and 43% of which (roughly
$21 million to $26 million) goes to ARB to fund the Carl
Moyer Program (special funds.) (Absent this bill, the
tire fees drops, as of January 1, 2015, from $1.75 per
tire to $0.75 per tire, all of which will go to
Calrecycle to fund waste tire management.)
Annual revenue of approximately $180 million from
extension of various vehicle, vessel, and other air
quality-related surcharges to fund AB 118 programs, as
follows: approximately $105 million for the ARFVT
program, administered by CEC, approximately $45 million
for the AQI Program, administered by ARB, and
approximately $30 million for the passenger vehicle car
scrap program, administered by the Bureau of Automotive
Repair (BAR) (special funds.)
Annual local revenue, of approximately $50 million, from
extension of local surcharge on vehicle registration fees
to fund local vehicle emissions reduction projects
(various local funds).
Annual redirection of $20 million from the ARFVT Fund
during each fiscal year 2013-14 through 2015-16, and up
to that amount each fiscal year thereafter, away from
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projects for the development and commercialization of
nonpetroleum fuels and to projects for the construction
and operation of a hydrogen fueling network.
Ongoing costs in the hundreds of thousands of dollars to
ARB, CEC and BAR to continue to administer various air
quality and alternative fuel programs (special funds).
These costs will be fully covered by the fee extensions
authorized by this bill.
Ongoing costs in the hundreds of thousands of dollars to
ARB and CEC to track and periodically report on
alternative-fueled vehicle sales and progress in
establishing a hydrogen fueling network, to evaluate
alternative fuels use and include such information in the
IEPR, and to update the economic analysis used in
developing ARB's regulations (special funds.)
SUPPORT : (Verified 8/30/12)
CALSTART (source)
Achates Power
Aemetis, Inc.
AeroVironment, Inc.
Agricultural council of California
Alhambra Unified School District
Alhambra Unified School District
Alliance of Automobile Manufacturers
Alliance of Western Milk Producers
Allison Transmission
American Lung Association
American Pistachio Growers
Amtrak
Antelope Valley Clean Cities
Atieva
AVL
Azure Dynamics
BAE Systems
Ballard Power Systems
Banning School District
Bay Area Air Quality Management District
Bear Valley Unified School District
Beaumont Unified School District
Bosch Rexroth
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BP
California Air Pollution Control Officers Association
California Air Resources Board
California Airports Council
California Association of School Transportation Officials
California Association of Wheat Growers
California association of Winegrape growers
California Bean Shippers Association
California Biomass Energy Alliance
California Cattlemen's Association
California Citrus Mutual
California Cotton Ginners Association
California Cotton Growers Association
California Council for Environmental and Economic Balance
California Electric Transportation Coalition
California Energy Commission
California Farm Bureau Federation
California Grain and Feed Association
California Grape and Tree Fruit League
California Hydrogen Business Council
California Independent Oil Marketers Association
California Manufacturers and Technology Association
California Metals Coalition
California Natural Gas Vehicle Coalition
California Poultry Association
California Retailers Association
California Rice Commission
California School Transportation Coalition
California Seed Association
California Service Station & Auto Repair Association
California Small Business Alliance
California Trucking Association
Californians Against Waste
Carnival Cruise Lines
Cascade Sierra Solutions
Caterpillar
Central Coast Clean Cities Coalition
ChargePoint
City of Duarte
City of Pomona
City of Tulare
Clean Cities Coachella Valley Region
Clean Fuel Connection
Clean Power Campaign
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Clean World Partners
CleanTECH San Diego
Coalition for Clean Air
CODA Automotive
Colton Joint Unified School District
Construction Industry Air Quality Coalition
CR&R
Delta Liquid Energy
Diesel Technology Forum
Dow Kokam
Downey Unified School District
East Bay Clean Cities Coalition
Eaton Corporation
El Dorado National Coach
Electric Vehicles International
Electrification Leadership Council
Environmental Defense Fund
Freightliner Custom Chassis
FritoLay
Garvey School District
General Motors
Global Automakers
GREEN TEAM of Silicon Valley
Greenkraft
Hemet Unified School District
Honda
Hydrogenics
Industrial Environmental Association
International Council on Clean Transportation
Kings Canyon Unified School District
Los Angeles County Sheriff's Department
Los Angeles Unified School District
Metrolink
Mid Coast Gas LP
Mohr Davidow Ventures
Montebello Unified School District
Monterey Park Environmental Commission
Motiv Power Systems
Murrieta Valley Unified School District
National Association for the Advancement of Colored People
-Riverside Branch
National Federation of Independent Business
Natural Resources Defense Council
Navistar, Inc.
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Nisei Farmers League
Odyne
Orange County Cemetery District
Orange Unified School District
Pacific Egg and Poultry Association
Pacific Ethanol
Parker Hannifin
Pearson Fuels
Pepsi
Plug In America
Propel Fuels
Protean Electric
Proterra
Quantum Technologies
Revolution CNG
Riverside Community College
Rowland Unified School District
Sacramento Clean Cities Coalition
Sacramento Metropolitan Air Quality Management District
San Diego Gas and Electric
San Diego Miramar College Advanced Transportation
Technology and Energy Center
San Diego Regional Clean Cities Coalition
San Joaquin Valley Air Pollution Control District
San Joaquin Valley Clean Cities Coalition
Sanitation District of Los Angeles County
School Energy Coalition
Sempra Energy Utilities
Silicon Valley Leadership Group
Small Business California
Small School Districts Association
Smith Electric Vehicles
South Coast Air Quality Management District
Southern California Gas Company
StarLine Tours of Hollywood
SunLine Transit Agency
Technology Partners
Tesla Motors
Torrance Unified School District
TransPower
UPS
VIA Motors
Volvo Group
Waste Management
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Western Agricultural Processors Association
Western Growers Association
Western States Petroleum Association
Western United Dairymen
OPPOSITION : (Verified 8/30/12)
AutoNation
California New Car Dealers Association
Howard Jarvis Taxpayers Association
ARGUMENTS IN SUPPORT : 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
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 : Auto Nation states, "?we must
oppose SB 1455 (Kehoe), which would extend until 2023 the
sunset on numerous vehicle registration fees set to expire
in 2015 at an additional cost of hundreds of millions of
dollars.
"In addition, SB 1455 would require the allocation of $20
million each fiscal year, and up to $20 million each fiscal
year thereafter, to establish a new hydrogen fueling
station network and expand that network to support a market
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for vehicles requiring hydrogen fuel, until there are at
least 100 publicly available hydrogen fueling stations.
"To put it simply, this is a tax on many to pay for
hydrogen fueling stations for few.
"The Carl Moyer Program is important to many different
industries in our State. However, reauthorization of this
program is being tied to the lengthy extension and of fees
without thorough review of the existing programs or cost
benefit analysis."
JJA:n 8/31/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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