BILL NUMBER: AB 1468 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 23, 2004
AMENDED IN SENATE AUGUST 17, 2004
AMENDED IN SENATE AUGUST 5, 2004
AMENDED IN SENATE JUNE 30, 2004
AMENDED IN SENATE MAY 24, 2004
AMENDED IN SENATE JULY 15, 2003
AMENDED IN SENATE JUNE 30, 2003
AMENDED IN ASSEMBLY MAY 14, 2003
INTRODUCED BY Assembly Member Kehoe
(Principal coauthor: Assembly Member Pavley)
(Coauthors: Assembly Members Goldberg, Levine, Lieber, and
Oropeza)
(Coauthor: Senator Kuehl)
FEBRUARY 21, 2003
An act to add Section 25370 to the Public Resources Code, relating
to motor vehicle fuel conservation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1468, as amended, Kehoe. California on the Move-Petroleum
Demand Reduction Act.
Existing law requires the State Energy Resources Conservation and
Development Commission and the State Air Resources Board to implement
and administer various laws governing motor vehicle fuel
conservation and emission reduction in this state.
This bill would enact the California on the Move-Petroleum Demand
Reduction Act, which would require both the commission and the state
board, not later than January 1, 2010, to adopt and implement
measures to achieve an interim petroleum demand reduction goal that
would limit onroad petroleum fuel demand to a level not exceeding
2004 demand levels, (adjusted annually to reflect the changes in
the state's population), as provided. The bill would specify
that the measures adopted and implemented by the commission and the
state board shall not require the imposition by those agencies of any
new or additional taxes or fees on motor vehicles, petroleum fuel,
or vehicle miles traveled. The bill would require the Department of
Finance, if, in consultation with the State Board of Equalization, it
determines that petroleum fuel tax revenue declines as a direct
result of petroleum fuel consumption reduction achieved pursuant to
the bill's requirements, to, in consultation with the commission, the
state board, and the Department of Transportation, develop and
submit to the Legislative Analyst's Office and specified legislative
committees, alternative revenue recommendations to compensate for
that decline in revenue. The bill would authorize the commission and
the state board to work with other states, members of the United
States Congress, and other federal agencies that are responsible for
the administration and implementation of federal laws governing
vehicle fuel economy to assist in the development of new standards
and regulations designed to increase onroad light-duty vehicle fuel
economy for new vehicles. The bill would require the commission in
consultation and coordination with the state board, not later than
January 1, 2008, to prepare and include in a specified report a
report containing specified information on the progress achieved in
meeting the petroleum demand reduction goals prescribed in the act.
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 25370 is added to the Public Resources Code, to
read:
25370. (a) This section shall be known, and may be cited, as the
California on the Move-Petroleum Demand Reduction Act.
(b) The Legislature finds and declares all of the following:
(1) California's gasoline and diesel fuel prices have historically
far exceeded the national average and, with the exception of Hawaii,
have been the highest in the nation. This trend is expected to
continue as, among other influences, a combination of limited supply,
growing demand, and global conditions work to increase petroleum
costs.
(2) California's forecasted demand for gasoline and diesel to fuel
cars and trucks far exceeds California's refinery capacity.
(3) Unless the demand trend changes, California may continue to
experience periodic onroad fuel spikes, which subjects the state's
economy and business climate to instability as a result of those
spikes.
(4) Cost-effective options exist today that can lessen the
economic instability caused by high fuel prices and price spikes,
reduce environmental degradation caused by increased petroleum fuel
use, and reduce dependence on petroleum fuels by lowering overall
onroad demand for gasoline and diesel, and increasing fuel diversity.
(5) Significantly reducing onroad petroleum fuel demand through
the year 2020 is feasible.
(c) (1) It is the intent of the Legislature to enact measures with
the goal of reducing California's onroad petroleum fuel demand by 15
percent below 2003 levels demand levels
(adjusted annually to reflect the changes in the state's population)
, by the year 2020.
(2) Nothing in the act adding this section is intended to reduce
transportation funding. If gasoline tax revenue is reduced because
of reduced demand that is achieved as a result of the act adding this
section, the Legislature intends to fully maintain transportation
funding.
(3) For the purposes of paragraph (1), "demand levels (adjusted
annually to reflect the changes in the state's population)" means the
2003 per capita demand level ratio applied to the state's population
for the year of the adjustment.
(d) (1) Not later than January 1, 2010, the commission shall, in
the course of its authorized activities and rulemaking, adopt and
implement measures to achieve an interim petroleum demand reduction
goal that would limit onroad petroleum fuel demand to a level not
exceeding 2004 demand levels (adjusted annually to reflect the
changes in the state's population) .
(2) Not later than January 1, 2010, the State Air Resources Board
shall, in the course of its air pollution regulation and other
authorized activities, adopt and implement measures to achieve an
interim petroleum demand reduction goal that would limit onroad
petroleum fuel demand to a level not exceeding 2004 demand
levels. levels (adjusted annually to reflect the
changes in the state's population).
(3) For purposes of this subdivision, "demand levels (adjusted
annually to reflect the changes in the state's population)" means the
2004 per capita demand level ratio applied to the state's population
for the year of the adjustment.
(e) The measures adopted and implemented by the commission and the
State Air Resources Board pursuant to subdivision (d) shall not
require the imposition by those agencies of any new or additional
taxes or fees on motor vehicles, petroleum fuel, or vehicle miles
traveled.
(f) If the Department of Finance, in consultation with the State
Board of Equalization, determines that there is a decline in
petroleum fuel tax revenue that has occurred as a direct result of
reduced petroleum fuel consumption achieved pursuant to the act
adding this section, the Department of Finance, in consultation with
the commission, the State Air Resources Board, and the Department of
Transportation, shall develop alternative revenue recommendations to
compensate for that decline in revenue, and submit those
recommendations to the Legislative Analyst's Office and the
appropriate budget, fiscal, and policy committees of the Legislature.
(g) The commission and the State Air Resources Board may work with
vehicle manufactures, representatives of the oil industry, other
states, and the United States Congress to increase awareness of the
increased petroleum dependence and economic burdens imposed in
California by lax federal fuel economy requirements including, but
not limited to, fuel price instability.
(h) The commission and the State Air Resources Board may work with
other states, Members of the United States Congress and other
federal agencies responsible for the administration and
implementation of federal laws governing vehicle fuel economy, to
assist in the development of new standards and regulations designed
to increase onroad light-duty vehicle fuel economy for new vehicles.
SEC. 2. Not later than January 1, 2008, the State Energy Resources
Conservation and Development Commission, in consultation and
coordination with the State Air Resources Board, shall prepare and
include in the integrated energy policy report that the commission is
required to adopt pursuant to Section 25302, a report on all of the
following:
(a) Progress achieved toward meeting the petroleum reduction goals
established pursuant to Section 25370 of the Public Resources Code.
(b) Other efforts necessary to maintain or further reduce
California's petroleum fuel demand.
(c) Any state or federal statutory or administrative limitations
that impede the ability of the commission or the state board to
achieve the goals of Section 25370 of the Public Resources Code.