California Legislature—2013–14 Regular Session

Assembly Bill No. 1907

Introduced by Assembly Member Ridley-Thomas

February 19, 2014

An act to amend Sections 13404 and 13470 of the Business and Professions Code, and to amend Section 8651.6 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1907, as introduced, Ridley-Thomas. Use fuel tax: natural gas: gallon equivalent.

Existing law regulates the sale, offer for sale, or advertisement for sale, at retail to the general public of petroleum products, including liquefied natural gas and compressed natural gas for use only as a motor vehicle fuel, as specified.

This bill would require compressed natural gas sold at retail to the public for use as a motor vehicle fuel to be sold in a gasoline gallon equivalent that is equal to 126.67 cubic feet of compressed natural gas, measured at the standard pressure and temperature, as specified, and would require liquefied natural gas to be sold in a diesel gallon equivalent that is equal to 6.06 pounds of liquefied natural gas. This bill would prohibit a person from selling at retail any compressed natural gas or liquid natural gas for use as motor fuel from any place of business in this state unless there is displayed and labeled on the dispensing apparatus in a conspicuous place “Gasoline gallon equivalent” or “Diesel gallon equivalent,” respectively.

The Use Fuel Tax Law imposes an excise tax upon natural gas at the rate of $0.07 for each 100 cubic feet, or 5.66 pounds, of compressed natural gas used, measured at standard pressure and temperature, and at a rate of $0.06 for each gallon of liquid natural gas used.

This bill would, on and after January 1, 2015, instead of using only a cubic foot measurement, impose an excise upon natural gas at the rate of $0.0875 for each 126.67 cubic feet, or 5.66 pounds, of compressed natural gas used, measured at standard pressure and temperature, and instead of using a gallon measurement, at a rate of $0.1017 for each 6.06 pounds of liquid natural gas used.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 13404 of the Business and Professions
Code is amended to read:

13404.  

begin insert (a) end insert begin insert   end insert The sale of compressed natural gas by persons
who sell compressed natural gas at retail to the public for use only
as a motor vehicle fuel, and who are exempted from public utility
status by subdivision (f) of Section 216 of the Public Utilities Code,
is a sale of a motor fuel for the purposes of this chapter.

begin insert

(b) Compressed natural gas sold at retail to the public for use
as a motor vehicle fuel shall be sold in a gasoline gallon equivalent
that shall be equal to 126.67 cubic feet, or 5.66 pounds, of
compressed natural gas, measured at the standard pressure and
temperature, described in Section 8615 of the Revenue and
Taxation Code.

end insert begin insert

(c) Liquefied natural gas sold at retail to the public for use as
a motor vehicle fuel shall be sold in a diesel gallon equivalent that
shall be equal to 6.06 pounds of liquefied natural gas.

end insert

SEC. 2.  

Section 13470 of the Business and Professions Code
is amended to read:

13470.  

begin delete No end delete begin insert (a) end insert begin insert   end insert begin insert A end insert begin insert end insert person shall begin insert not end insert sell at retail to the general
public, any motor fuel from any place of business in this state
unless there is displayed on the dispensing apparatus in a
conspicuous place at least one sign or price indicator showing the
actual total price per gallon or liter of all motor fuel sold therefrom.
The actual total price per gallon, or liter, shall include fuel taxes
and all sales taxes.

begin insert

(b) (1) A person shall not sell at retail to the general public,
any compressed natural gas for use as a motor fuel from any place
of business in this state unless there is displayed and labeled on
the dispensing apparatus in a conspicuous place “Gasoline gallon
equivalent.”

end insert begin insert

(2) A person shall not sell at retail to the general public, any
liquefied natural gas for use as a motor fuel from any place of
business in this state unless there is displayed and labeled on the
dispensing apparatus in a conspicuous place “Diesel gallon
equivalent.

end insert begin delete

When

end delete

begin insert (c) end insert begin insert   end insert begin insert When end insert begin insert end insert a discount for cash is offered from a dispenser
computing only at the credit price, at least one sign or label shall
be conspicuously displayed on the dispenser indicating that the
dispenser is computing at the credit price and indicating the amount
of the discount per gallon or liter in letters and numerals not less
than one-half inch high.

begin delete

If

end delete

begin insert (d) end insert begin insert   end insert begin insert If end insert motor fuel is sold by the liter, the word “liter” shall be
conspicuously displayed on the side of the dispensing apparatus
from which service can be made.

SEC. 3.  

Section 8651.6 of the Revenue and Taxation Code is
amended to read:

8651.6.  

begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert Notwithstanding the provisions of Sections
8651 and 8651.5, on or after January 1, 1971, begin insert and before January
1, 2015, end insert the excise tax imposed upon natural gas shall be at the
rate of seven cents ($0.07) for each 100 cubic feet of compressed
natural gas used, measured at standard pressure and temperature,
and at a rate of six cents ($0.06) for each gallon of liquid natural
gas used. begin delete All end delete

begin insert

(2) Notwithstanding the provisions of Sections 8651 and 8651.5,
on or after January 1, 2015, an excise tax imposed upon natural
gas shall be imposed as follows:

end insert begin insert

(A) The rate of eight and seventy-five hundredths cents ($0.0875)
for each 126.67 cubic feet, or 5.66 pounds, of compressed natural
gas used, measured at standard pressure and temperature.

end insert begin insert

(B) The rate of ten and seventeen hundredth cents ($0.1017)
for each 6.06 pounds of liquid natural gas used.

end insert

begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert All end insert begin insert end insert references in this code to Section 8651 shall, with
respect to the rate imposed upon natural gas on or after January 1,
1971, also refer to this section. begin delete Neither end delete

begin insert (2) end insert begin insert   end insert begin insert (A) end insert begin insert   end insert begin insert Neithe end insert begin insert r end insert the tax imposed by this section nor the tax
imposed by Section 8651 shall apply to the use of compressed
natural gas or liquid natural gas used in a vehicle during any period
of time for which the owner or operator of the vehicle has paid the
annual flat rate fuel tax as provided in Section 8651.7.

begin insert

(B) To the extent that an owner or operator has provided written
representation to a fuel seller that the owner or operator has
prepaid the annual flat rate fuel tax as provided in Section 8651.7,
the owner or operator shall be solely responsible for the taxes due
under this part and the fuel seller shall not be liable for collecting
and remitting those taxes.

end insert