BILL ANALYSIS �
AB 2656
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Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2656 (Jones) - As Amended: March 28, 2014
Policy Committee: Business and
Professions Vote: 8 - 5
Urgency: No State Mandated Local Program:
yes Reimbursable: No
SUMMARY
This bill requires the Division of Measurement Standards within
the Department of Food and Agriculture to annually estimate and
post online the cost per gallon of motor fuel resulting from
compliance with California's Greenhouse Gas Emissions Reduction
regulations, and requires wholesale motor fuel invoices, product
transfer documents, and retail gasoline pumps to publicize that
estimated cost.
FISCAL EFFECT
1)Costs in the range of $255,000 in the first year and
approximately $430,000 ongoing to the Department of Food and
Agriculture for ongoing enforcement activities (primarily
county contracts). The Department has an existing enforcement
duty that would apply to this bill.
2)Minor and absorbable costs to the Department of Food and
Agriculture's Division of Measurement Standards to develop the
calculations and post them on their website.
COMMENTS
1)Purpose . According to the author, this bill "is intended to
provide transparency to the motoring public and other fuel
consumers regarding fuel cost increases expected in January,
2015 due to the implementation of the CARB "Fuels Under the
Cap" regulations. It is necessary as there is no required
notification to motorists and fuel consumers regarding the
additional fuel costs this regulatory program will create."
This bill is sponsored by the California Independent Oil
AB 2656
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Marketers Association.
2)Background . In 2006, Governor Schwarzenegger signed AB 32
(Nunez), the Global Warming Solutions Act of 2006, which
requires California to return to 1990 levels of greenhouse gas
emissions by 2020. All programs developed under AB 32
contribute to the reductions needed to achieve this goal, and
will deliver an overall 15% reduction in greenhouse gas
emissions.
According to the California Air Resources Board (CARB), the cap
and trade program is a key element in California's climate
plan. It sets a statewide limit on sources responsible for 85%
of California's greenhouse gas emissions, and establishes a
price signal needed to drive long-term investment in cleaner
fuels and more efficient use of energy. The program is
designed to provide covered entities the flexibility to seek
out and implement the lowest-cost options to reduce emissions.
CARB reports that the program covers about 350 businesses
responsible for 600 facilities. The program went into effect
for electric utilities and large industrial facilities in
2013, and expands to cover distributors of transportation,
natural gas and other fuels in 2015.
3) Opposition . This bill is opposed by Breathe California
who argues that this bill would fail to provide the public
important information about how climate change is affecting
public health, and how the California Global Warming
Solutions Act is helping to reduce air pollution and
greenhouse gas emissions.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081