BILL NUMBER: SB 757 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Kehoe
(Coauthor: Assembly Member Pavley)
FEBRUARY 22, 2005
An act to add Chapter 4.7 (commencing with Section 25370) to
Division 15 of the Public Resources Code, relating to energy
resources.
LEGISLATIVE COUNSEL'S DIGEST
SB 757, as introduced, Kehoe. Petroleum Demand Reduction Act.
Existing law requires the State Energy Resources Conservation and
Development Commission to implement and administer various energy
generation and conservation programs.
This bill would enact the Petroleum Demand Reduction Act, which
would declare that it is the policy of the state that state agencies
should take all cost effective and technologically feasible actions
needed to achieve a net zero increase in on road petroleum
consumption by 2010, and a significant reduction in petroleum demand
and oil consumption by 2020. The act would further declare that state
agencies should take the state's petroleum reduction goals into
account in adopting rules and regulations, including the findings and
recommendations of the commission in the Integrated Energy Policy
Report.
The bill would authorize the State Air Resources Board, in
corporation with the South Coast Air Quality Management District and
other state and local agencies to adopt regulations requiring fleet
vehicles, including publicly owned fleet vehicles, to purchase and
install alternative fuel vehicles and advanced transportation
technologies where technologically feasible and cost effective,
taking into account lower petroleum consumption, increased
efficiency, and life cycle operating costs.
The bill would require the California Environmental Protection
Agency, in consultation with the State Air Resources Board, the
Department of Toxic Substances Control, and air quality management
districts throughout the state, to develop and adopt model rules and
regulations to ensure that all petroleum refining, storage, waste
treatment and disposal sources, irrespective of their date of
original construction or installation, and to require installation of
best available control technology and pollution prevention measures
that reflect the best practices available, so as to provide the
maximum feasible and cost effective reduction in air pollution, water
pollution, and toxic waste generation, while protecting the public
and community health, and worker health and safety over a 10year
phase-in period not to extend beyond January 1, 2016.
The bill would require the commission to expand the scope of its
oil industry price and supply reporting, monitoring, and analysis to
include trends in world oil demand growth, including known and proven
oil reserves, and carry out oversight and investigation of market
power abuses and unfair competition during periods of supply and
price volatility, and would authorize the commission to impose fees
to cover the costs associated with that reporting, monitoring, and
analysis.
The bill would require the Secretary of the Business, Housing, and
Transportation Agency, and the Secretary for Environmental
Protection, not later than July 1, 2006, in consultation with the
Department of Finance and the commission, 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.
The bill would require the Secretary for Environmental Protection,
not later than January 1, 2007, in consultation with the commission
and the State Air Resources Board, to submit recommendations to the
Governor and the Legislature regarding the cost-effective and
technologically feasible measures needed to achieve a net zero
increase in petroleum consumption by 2010, and a significant
reduction in oil consumption by 2020.
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. Chapter 4.7 (commencing with Section 25370) is added to
Division 15 of the Public Resources Code , to read:
CHAPTER 4.7. PETROLEUM DEMAND REDUCTION ACT
25370. This section shall be known, and may be cited, as the
California Petroleum Demand Reduction Act.
25371. The Legislature finds and declares all of the following:
(1) California's increasing demand for petroleum and rapidly growing
consumption of gasoline and diesel fuel pose substantial risks to the
state's economy and environment.
(2) Growing instability in global oil supplies and rapidly
increasing demand in China, India, and throughout the world are
likely to increase California's vulnerability to oil supply
disruptions and sudden price increases.
(3) Aggressive pursuit of energy efficiency and conservation
measures and expanded use of renewable energy sources have been shown
to help stabilize energy supplies and lower costs to consumers
during California's electricity crisis.
(4) California's current and future levels of oil demand and
rapidly growing consumption of gasoline and diesel fuel far exceeds
California's refinery capacity, which results in limited competition
and abuses of market power by oil suppliers and refiners.
(5) Unless the state's rapid rate of growth in oil consumption and
rising levels of consumption of imported oil and petroleum products
are stabilized and gradually reduced, California is likely to
continue to experience price spikes and supply disruptions, which
will harm the state's economy and business climate.
(6) Cost-effective options exist today, including alternative
fuels and advanced technologies, such as hybrid electric vehicles,
which can lessen economic instability caused by high fuel prices and
price spikes, while reducing risks to public health and environmental
degradation caused by increased consumption of petroleum fuel.
(7) Reducing the rate of growth and achieving a net zero increase
in petroleum consumption levels by 2010, and then achieving
significant reductions in California oil consumption by the year 2020
are technologically feasible and cost effective public policy
objectives, which will create new jobs, economic development, and
investment opportunities in alternative fuels and advanced
transportation technologies.
(8) Petroleum refineries are known sources of hazardous waste and
toxic air pollutants, as well as groundwater and soil contamination,
all of which are known to cause cancer, developmental and
reproductive problems, and respiratory illness.
(9) Petroleum refinery workers and communities located in close
proximity to a petroleum refinery are particularly vulnerable to the
public health impacts associated with petroleum refining, and the
petroleum refining industry should take every feasible measure to
protect these exposed populations.
(10) The Governor, the Legislature, and state and local agencies
should make every effort to reduce oil demand and consumption of
petroleum fuels in California through aggressive public education
regarding the environmental and economic risks caused by current and
projected petroleum consumption, through sustained commitment and
public agency procurement of energy efficiency and alternative
transportation fuels, and by promoting the modernization and
installation of best available technologies on California's oil
refineries.
25372. It is the policy of the State of California that state
agencies should take every cost-effective and technologically
feasible action needed to achieve a net zero increase in on-road
petroleum consumption by 2010, and a significant reduction in
petroleum demand and oil consumption by 2020. In addition, those
state agencies should take the state's petroleum reduction goals into
account in adopting rules and regulations, including the findings
and recommendations of the commission in the most recently adopted
Integrated Energy Policy Report.
25373. The State Air Resources Board, in cooperation with the
South Coast Air Quality Management District and other state and local
agencies, may adopt regulations requiring fleet vehicles, including
publicly owned fleet vehicles, to purchase and install alternative
fuel vehicles and advanced transportation technologies where
technologically feasible and cost-effective, taking into account
lower petroleum consumption, increased efficiency, and life cycle
operating costs.
25374. The California Environmental Protection Agency, in
consultation with the State Air Resources Board, the Department of
Toxic Substances Control, and air quality management districts, shall
develop and adopt model rules and regulations to ensure that all
petroleum refining, storage, and waste treatment and disposal
sources, irrespective of their date of original construction or
installation, install best available control technology and pollution
prevention measures that reflect the best practices available, so as
to provide the maximum feasible and cost effective reduction in air
pollution, water pollution, and toxic waste generation, while
protecting the public and community health, and worker health and
safety over a 10year phase-in period not to extend beyond January 1,
2016.
25375. The commission shall expand the scope of its oil industry
price and supply reporting, monitoring, and analysis to include
trends in world oil demand growth, including known and proven oil
reserves, and carry out oversight and investigation of market power
abuses and unfair competition during periods of supply and price
volatility, and may impose fees to recover its costs.
SEC. 2. Not later than July 1, 2006, the Secretary of the
Business, Housing and Transportation Agency and the Secretary for
Environmental Protection, in consultation with the Department of
Finance and the State Energy Resources Conservation and Development
Commission, shall 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. In
developing the recommendations, the secretaries shall evaluate the
economic feasibility of alternative financing measures, the potential
to support needed levels of investment in transportation
infrastructure, and the impact on social equity and mobility of low
income and disadvantaged citizens. In addition, consideration of
those recommendations shall be given to determine the extent to which
they are compatible with existing state policies to reduce petroleum
consumption, accelerate the deployment of alternative fuels, and
achieve air quality standards and global warming targets.
SEC. 3. Not later than January 1, 2007, the Secretary for
Environmental Protection Agency, in consultation with the State
Energy Resources Conservation and Development Commission and the
State Air Resources Board, shall submit recommendations to the
Governor and Legislature regarding the cost-effective and
technologically feasible measures needed to achieve a net zero
increase in petroleum consumption by 2010, and a significant
reduction in oil consumption by 2020.
SEC. 4. (a) Not later than January 1, 2007, The California
Environmental Protection Agency, with the assistance and consultation
of the California Air Resources Board, the California Energy
Commission, and the South Coast Air Quality Management District,
shall adopt an action plan to increase the diversity of the state's
transportation energy supplies. (b) Development of the action plan
required pursuant to subdivision (a) shall integrate state ambient
air quality standards, including, but not limited to, those for
particulates, criteria pollutants, toxic air contaminants, and
greenhouse gases, to ensure that no petroleum reduction strategy or
alternative fuel policy impedes the state's ability to comply with
federal air quality standards. Heading - Line 2.