Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2656

Introduced by Assembly Member Jones

February 21, 2014

An act to begin delete amend end delete begin insert add end insert Section begin delete 13480 of end delete begin insert 13480.5 to end insert the Business and Professions Code, relating to petroleum.

LEGISLATIVE COUNSEL’S DIGEST

AB 2656, as amended, Jones. Petroleum: labeling.

Existing law makes it unlawful to sell specified petroleum products unless a sign or label is posted, as prescribed, that contains specified information relating to the product and its contents. begin insert Existing law requires the Department of Food and Agriculture, acting through the Division of Measurement Standards, to enforce these provisions. Existing law makes a violation of these provisions a crime. end insert

begin insert

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020, and to adopt rules and regulations in an open public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions. The act authorizes the state board to include the use of market-based compliance mechanisms.

end insert begin insert

This bill would require each motor fuel transaction in this state to contain information regarding the estimated cost of compliance with any market-based compliance mechanism that the State Air Resources Board may adopt. On or before February 15, 2015, the bill would require the Division of Measurement Standards to estimate the cost per gallon of motor fuel resulting from compliance with any market-based compliance mechanism according to prescribed formulas. The bill would require the division to post the estimated cost per gallon calculated pursuant to the prescribed formulas on its Internet Web Site on or before February 15, 2015, and to annually update that information. After February 15, 2015, the bill would require a person who prepares a wholesale motor fuel invoice or product transfer document to include a specified statement that includes the estimated cost per gallon of motor fuel resulting from compliance with any market-based compliance mechanism. After March 15, 2015, the bill would require a person selling motor fuel at retail to affix a sticker to the fuel dispenser containing a specified statement that includes the estimated cost per gallon of motor fuel resulting from compliance with any market-based compliance mechanism. Because a violation of the provisions requiring disclosure of certain information would be a crime, this bill would impose a state-mandated local program.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

This bill would make nonsubstantive changes to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 13480.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 13480.5. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Division” means the Division of Measurement Standards.

(2) “Motor fuel” means gasoline and diesel fuel.

(b) On or after February 15, 2015, each motor fuel transaction
in this state shall contain information, as provided in this section,
regarding the estimated cost of compliance with any market-based
compliance mechanism that the State Air Resources Board may
adopt pursuant to Part 5 (commencing with Section 38570) of
Division 25 of the Health and Safety Code.

(c) For purposes of subdivision (b), the division shall estimate
the cost per gallon of motor fuel resulting from compliance as
follows:

(1) On or before February 15, 2015, the division shall estimate
the cost pursuant to the following formula:

(A) One hundred fifty-six and nine tenths million metric tons of
carbon dioxide multiplied by the clearing price of one compliance
instrument sold at the most recent auction conducted by the State
Air Resources Board.

(B) The product of the calculation in subparagraph (A) shall
be divided by the total number of on-road and off-road motor fuel
gallons sold in 2014 to derive the estimated cost per gallon.

(2) On or before February 15 each year thereafter, the division
shall estimate the cost pursuant to the following formula:

(A) Multiply the total number of on-road and off-road diesel
fuel gallons sold in the state during the previous calendar year by
9.96 kilograms and divide the product of that calculation by 1,000
to derive the number of metric tons of carbon dioxide from diesel
combustion.

(B) Multiply the total number of on-road and off-road gasoline
fuel gallons sold in the state during the previous calendar year by
8.55 kilograms and divide that product by 1,000 to derive the
number of metric tons of carbon dioxide from gasoline combustion.

(C) Add the quotients of subparagraphs (A) and (B) together
to derive the total metric tons of carbon dioxide from motor fuel
combustion.

(D) Multiply the total metric tons of carbon dioxide from motor
fuel combustion by the clearing price of one compliance instrument
sold at the most recent auction conducted by the State Air
Resources Board.

(E) Divide the product of the equation in subparagraph (D) by
the total number of gallons of diesel and gasoline fuel from
subparagraphs (A) and (B) to derive the estimated cost per gallon
of motor fuel.

(d) The division shall post the estimated cost per gallon
calculated pursuant to paragraph (1) of subdivision (c) in a
prominent location on its Internet Web site on or before February
15, 2015. On or before February 15 each year thereafter, the
division shall update the estimated cost per gallon on its Internet
Web site by using the estimated cost per gallon derived from the
formula in paragraph (2) of subdivision (c).

(e) (1) After February 15, 2015, a person who prepares a
wholesale motor fuel invoice or product transfer document shall
include a statement in the invoice or document that states the
following: “It has been estimated that the cost of fuel in this invoice
is increased by $____ per gallon due to Greenhouse Gas Emissions
Reduction regulations adopted by the State Air Resources Board.”

(2) In the blank space provided for the increased cost per gallon,
the person shall use the estimated cost per gallon calculated by
the division for the relevant year pursuant to subdivision (c).

(f) (1) After March 15, 2015, a person selling motor fuel at
retail shall affix a sticker to the fuel dispenser that states the
following: “It has been estimated that the cost of fuel at this
dispenser is increased by $____ per gallon due to Greenhouse
Gas Emissions Reduction regulations adopted by the State Air
Resources Board.”

(2) In the blank space provided for the increased cost per gallon,
the person shall use the estimated cost per gallon calculated by
the division for the relevant year pursuant to subdivision (c).

(3) The sticker shall comply with the requirements of subdivision
(e) of Section 13480.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin delete

SECTION 1.  

Section 13480 of the Business and Professions
Code is amended to read:

13480.  

(a) It is unlawful for a person to sell a petroleum
product referred to in this chapter at a place where petroleum
products are kept or stored for sale, unless there is affixed to each
container, receptacle, pump, dispenser, and inlet end of the fill
pipe of each underground storage tank, from which or into which
that product is drawn or poured out for sale or delivery, a sign or
label plainly visible consisting of the name of the product, the
brand, trademark, or trade name of the product, and, in the case
of engine fuel and kerosene, the grade or brand name designation.

(b) When the product is oil, as defined by Section 13401, each
sign or label shall also have in letters or numerals, plainly visible,
the viscosity grade classification as determined in accordance with
the SAE International latest standard for engine oil viscosity
classification SAE J300 or manual transmission and axle lubricants
viscosity classification SAE J306, as applicable, and shall be
preceded by the letters “SAE.”

(c) When the product is automotive spark-ignition engine fuel,
except M-85 and M-100 methanol fuel, there shall be
conspicuously displayed on the dispensing device at least one sign
or label showing the minimum octane number or antiknock index,
as defined in Section 13403, of the product sold therefrom.

(d) When the product is a motor fuel consisting of a mixture or
premixture of gasoline and oil or gasoline-oxygenate blend and
motor oil, there shall be conspicuously displayed on the dispensing
device at least one sign or label stating the ratio of gasoline to
motor oil or gasoline-oxygenate blend to motor oil.

(e) All signs or labels required by this section for retail motor
fuel dispensers and containers of more than one gallon capacity
shall be in letters and numerals not less than one-half inch (12.70
mm) in height. On containers of one gallon or less, the signs or
labels shall be in letters and numerals not less than one-fourth inch
(6.35 mm) in height and one-sixteenth inch (1.59 mm) in width.

(f) The provisions of this section pertaining to octane numbers
or antiknock index and motor oil SAE International viscosity
number grade shall not apply to products sold for aviation purposes.

(g) This section shall apply, with respect to thinners or solvents,
only to the sale, delivery, or offer for sale of the products through
service stations, garages, and other retail outlets.

end delete