BILL NUMBER: SB 757 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 3, 2005
AMENDED IN SENATE APRIL 13, 2005
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 amended, Kehoe. Petroleum Demand Reduction
Act. Oil Conservation, Efficiency, and Alternative
Fuels 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
Oil Conservation, Efficiency, and Alternative Fuels
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 onroad petroleum consumption by 2010, and a significant
reduction in petroleum demand and onroad petroleum consumption by
2020. The act would further declare that state agencies should take
the state's petroleum usage 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
operators, both public and private 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
for air and water pollution, and toxic generation over a
10-year phasein period not to extend beyond January 1, 2016. The
bill would provide that this requirement does not supersede any
local or state law, regulation, or rule that is more stringent than,
or requires an earlier compliance date than that required
by this requirement.
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. The bill would require the commission to refer to the
Attorney General any cases in which the commission determines that
there may be market abuse or unfair competition.
The bill would require the Secretary of the Business,
Transportation and Housing 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 onroad petroleum consumption by 2020.
The bill would require the California Environmental Protection
Agency, not later than January 1, 2007, with the assistance and
consultation of the State Air Resources Board, the commission, and
the South Coast Air Quality Management District to adopt
recommendations, policies, and programs, as appropriate, to increase
the diversity of the state's transportation energy supplies, as
specified.
The bill would require 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 would require all state agencies
to cooperate with the secretary concerning this action.
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
OIL CONSERVATION, EFFICIENCY, AND ALTERNATIVE FUELS ACT
25370.
This section shall be known, and may be cited, as the
California Petroleum Demand Reduction Act. Oil
Conservation, Efficiency, and Alternative Fuels Act.
25371.
The Legislature finds and declares all of the following:
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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.
(g) The commission and the State Air Resources Board have
determined that improving the fuel efficiency of new vehicles would
dramatically reduce petroleum demand and that the efficiency of new
cars and light trucks can be improved significantly with existing and
emerging automotive technologies.
(h) Reducing the rate of growth and achieving a net zero increase
in onroad petroleum consumption levels by 2010, and then achieving
significant reductions in California onroad petroleum 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.
(i) 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.
(j) 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.
(k) 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 onroad petroleum consumption
by 2010, and a significant reduction in onroad petroleum consumption
by 2020. As used in this section, "net zero increase" means no
increase compared to 2006 consumption. Those state agencies should
take the state's petroleum usage 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 operators, both public and
private, 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. (a) 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 over a specified 10-year phase-in
period not extending beyond January 1, 2016, 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 10-year phasein period not to extend beyond January 1,
2016. for air and water pollution, and toxic waste
generation.
(b) The requirement of subdivision (a) shall not supersede any
other local or state law, regulation, or rule that is more stringent
than, or requires an earlier compliance date than that set forth in
subdivision (a).
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. The
commission shall refer to the Attorney General any cases in which it
determines that there may be market abuse or unfair competition.
SEC. 2.
Not later than July 1, 2006, the Secretary of the Business,
Transportation and Housing 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 , as defined in Section
25372 of the Public Resources Code, in onroad petroleum
consumption by 2010, and a significant reduction in onroad petroleum
consumption by 2020.
SEC. 4.
(a) Not later than January 1, 2007, the California Environmental
Protection Agency, with the assistance and consultation of the State
Air Resources Board, the California Energy Commission, and the South
Coast Air Quality Management District, shall adopt recommendations,
policies, and programs, as appropriate, to increase the diversity of
the state's transportation energy supplies consistent with the goal
of increasing the use of nonpetroleum fuels to 20 percent of onroad
fuel consumption by 2020.
(b) Development of the recommendations, policies, and programs
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.
SEC. 5.
The Secretary for Environmental Protection shall take action
intended to influence United States Congress and the United States
Department of Transportation to double the combined fuel economy of
cars and light trucks by 2020. That action shall include, but not be
limited to, performing analyses and participating in forums that the
secretary deems useful. All state agencies shall cooperate with the
secretary concerning this action.