BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 151|
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THIRD READING
Bill No: AB 151
Author: Laird (D), et al
Amended: 9/2/05 in Senate
Vote: 21
NOTE: The prior votes on the bill are not relevant. The
content of SB 787 (Kehoe) has been placed in this
bill which went out of the Senate with a vote of
21-15 on 5/31/05.
SB 757 VOTES :
SEN. ENERGY, UTIL. & COMMUNICATIONS COMM. : 7-3, 4/5/05
AYES: Escutia, Alarcon, Bowen, Dunn, Kehoe, Murray,
Simitian
NOES: Battin, Campbell, Cox
NO VOTE RECORDED: Morrow
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-3, 4/25/05
AYES: Lowenthal, Chesbro, Escutia, Figueroa, Kuehl,
Simitian
NOES: Runner, Campbell, Cox
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/26/05
AYES: Migden, Alarcon, Alquist, Escutia, Florez, Murray,
Ortiz, Romero
NOES: Aanestad, Ashburn, Battin, Dutton, Poochigian
SENATE FLOOR : 21-15, 5/31/05
AYES: Alarcon, Alquist, Bowen, Cedillo, Chesbro, Dunn,
Escutia, Figueroa, Kehoe, Kuehl, Lowenthal, Migden,
Murray, Ortiz, Perata, Romero, Simitian, Soto, Speier,
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Torlakson, Vincent
NOES: Aanestad, Ackerman, Ashburn, Battin, Campbell, Cox,
Denham, Ducheny, Dutton, Hollingsworth, Maldonado,
Margett, McClintock, Morrow, Poochigian
NO VOTE RECORDED: Florez, Machado, Runner, Scott
SUBJECT : Oil Conservation, Efficiency, and Alternative
Fuels Act
SOURCE : Author
DIGEST : Senate Floor Amendments delete the prior version
of the bill which expressed the intent of the Legislature
to enact statutory changes relating to the Budget Act of
2005. This bill now enacts the Oil Conservation,
Efficiency, and Alternative Fuels Act. It replaces the
contents of the bill with provisions dealing with petroleum
fuel efficiency. Declares that it is state policy to take
every technologically feasible action to reduce the growth
of petroleum consumption and to increase transportation
energy efficiency and the use of alternative fuels.
Requires state agencies to adopt recommendations, policies,
and programs consistent with this policy. States that
nothing authorizes the imposition of any tax or fee on
consumers of petroleum for onroad use or on petroleum
refining producers. Requires state agencies to recommend
alternative revenue sources to supplement or replace lost
tax revenue on gasoline and diesel fuel. Requires the
Secretary for Environmental Protection to influence the
federal government to double the fuel economy of cars and
light trucks by 2020.
NOTE: SB 757 (Kehoe) failed passage in the Assembly
Transportation Committee and was granted
reconsideration.
ANALYSIS : Existing law requires the State Energy
Resources Conservation and Development Commission
(California Energy Commission or CEC) to implement and
administer various generation and conservation programs.
Additionally, CEC is responsible for monitoring
transportation fuel supplies and prices in the state. The
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CEC is required, under current law, to develop biennially
an integrated energy policy report that looks at issues of
supply, demand, and supply reliability for transportation
fuel.
This bill enacts the Oil Conservation, Efficiency, and
Alternative Fuels Act (Act), which declares the policy of
the state that state agencies shall take every
technologically feasible action needed to reduce the growth
of petroleum consumption, and increase transportation
energy efficiency and the use of alternative fuels. The
Act requires state agencies to take the state's
transportation energy goals into account in adopting rules
and regulations, including the findings and recommendations
of the CEC in the Integrated Energy Policy Report.
This bill requires the Air Resources Board (ARB), in
adopting or amending rules and regulations to reduce air
pollution and toxic air contaminants from motor vehicle
fuels to consider requirements, incentives, and
partnerships for publicly administered fleets to purchase
and install alternative fuel vehicles and advanced
transportation fuels and technologies, taking into account
life-cycle operating costs, public health, and
environmental and energy benefits.
This bill requires the Secretary of the Business,
Transportation and Housing Agency, not later than March 31,
2007, in consultation with the Department of Finance, the
Secretary for Environmental Protection, and the CEC, to
submit recommendations to the Governor and the Legislature
regarding alternative revenue sources to supplement or
replace taxes on gasoline and diesel fuel, which may be
used to fund state investment in the state's transportation
infrastructure, as provided.
This bill requires the California Environmental Protection
Agency (CalEPA), not later than January 1, 2007, and every
third year thereafter, with the assistance and consultation
of the ARB, the CEC, and the South Coast Air Quality
Management District to adopt recommendations, policies, and
programs, as appropriate, to reduce the rate of growth in
petroleum consumption and increase transportation energy
efficiency and the use of alternative fuels, as specified.
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This bill requires CalEPA, not later than December 31,
2007, in consultation with the Attorney General, the CalEPA
Environmental Justice Advisory Committee, air pollution
control districts and air quality management districts, and
affected communities and industries to publish a report
containing specified information regarding violations of
environmental protection laws and the technological
feasibility and community health benefits of modernizing
the state's oil refineries, as specified.
This bill requires the Secretary to take action intended to
influence the United States Congress and Department of
Transportation to double the combined fuel economy of cars
and light trucks by 2020, including performing analyses and
participating in forums that the secretary deems useful.
The bill requires all state agencies to cooperate with the
Secretary concerning this action.
Comments
Purpose of the bill . According to the author of SB 757
(Kehoe), "California faces a future of increasing petroleum
dependence, supply disruptions, and transportation fuel
price volatility. As a consequence, the state has become a
significant importer of oil from foreign countries often
plagued with military and political instability. If this
import trend continues, the state's economy, oil supply and
price fluctuations, will be vulnerable to external
disruptions and geopolitical instability, making the
reduction of petroleum consumption a matter of energy
dependence."
This bill addresses improvement of oil refinery safety and
pollution prevention, alternatives to petroleum based
transportation fuels, and monitoring global petroleum
adequacy. The author's office believes that petroleum
reduction in the state strengthens national security,
supports energy independence, creates jobs and business
opportunities, reduces air, water, and soil pollution,
while improving public health and worker safety, and
increases economic competitiveness of alternative fuels and
energy resources.
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Current Recommendations . AB 2076 (Shelley), Chapter 936,
Statutes of 2000, required the CEC and the ARB to develop
and adopt recommendations for the Governor and the
Legislature by January 31, 2002, on a California Strategy
to Reduce Petroleum Dependence. The CEC report, "Reducing
California's Petroleum Dependence" dated August 2002,
recommended that the state adopt a policy to reduce
gasoline and diesel fuel demand to 15 percent below 2003
demand levels by 2020 and to maintain that level after that
date. The report included certain recommendations (e.g.,
more fuel efficient tires, improving vehicle maintenance,
doubling light duty vehicle fuel efficiency, implementing
fuel cell-powered vehicles). The report also recommended a
goal of increasing use of non-petroleum fuels to 20 percent
of on-road fuel consumption by 2020 and 30 percent by 2030.
NOTE: For extensive background information, please refer
to the Senate Energy, Utilities and Communications
Committee analysis on SB 757.
SB 757 Support/Opposition as it left the Senate:
Support
American Lung Association of California
California Communities Against Toxics
California League of Conservation Voters
California Natural Gas Vehicle Coalition
California Thoracic Society
Clean Power Campaign
Heal the Bay
Natural Resources Defense Council
Planning and Conservation League
Sacramento Metropolitan Air Quality Management District
Sierra Club
Union of Concerned Scientists
Opposition
Alliance of Automobile Manufacturers
California Business Alliance
California Business Roundtable
California Chamber of Commerce
California Citrus Mutual
California Council for Environmental and Economic Balance
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California Farm Bureau Federation
California Grocers Association
California Hispanic Chamber of Commerce
California Independent Oil Marketers Association
California Independent Petroleum Association
California League of Food Processors
California Manufacturers and Technology Association
California Mining Association
California Motor Car Dealers
California Retailers Association
California Taxpayers' Association
California Taxpayer Protection Committee
California Women in Agriculture
Howard Jarvis Taxpayers Association
Olive Growers Council of California
Small Business Action Committee
Western Growers Association
Western Plant Health Association
Western States Petroleum Association
______________
The California Trucking Association is opposed to this bill
(AB 151).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:mel 9/6/05 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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