BILL NUMBER: SB 757 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 27, 2005
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. 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 Oil Conservation, Efficiency, and
Alternative Fuels Act, which would declare that it is the policy of
the state that state agencies should shall
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 reduce the
growth of petroleum consumption, and increase transportation energy
efficiency and the use of alternative fuels . The act would
further declare that require state
agencies should to take the state's
petroleum usage reduction transportation
energy 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 require 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 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 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 , public health, and environmental and
energy benefits .
The bill would require the California Environmental Protection
Agency, in consultation with the State Air Resources Board, the
Department of Toxic Substances Control, the State Water
Resources Control Board, and air quality management districts
throughout the state, to develop and adopt
consider adoption of model rules and regulations
, best practices guidelines, and pollution strategies
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 for air and water pollution, and
toxic generation over a 10-year phasein period not to extend beyond
January 1, 2016 2017 . 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 March 31, 2007 , in consultation with the
Department of Finance , the Secretary of the
California Environmental Protection Agency, 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 , and every 3rd year
thereafter , 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 reduce the rate of
growth in petroleum consumption and increase transportation energy
efficiency, and the use of alternative fuels , 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. Oil Conservation, Efficiency, and Alternative
Fuels Act
25370.
This section shall be known, and may be cited, as the 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
increasing transportation energy efficiency and the use of
alternative fuels 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 the growth in oil
demand and increase transportation energy efficiency and the
use of alternative 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.
(a) It is the policy of the State of
California that state agencies should shall
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
reduce the growth of petroleum consumption and to increase
transportation energy efficiency and the use of alternative fuels in
California. State agencies shall take the state's transportation
energy 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.
(b) For purposes of this section, "technologically feasible" means
capable of being successfully accomplished taking into account
environmental, economic, social, and technological factors.
25373.
The In adopting or amending rules and
regulations to reduce air pollution and toxic air contaminants from
motor vehicle fuels, 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 shall consider requirements, incentives, and
partnerships for 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 , public health, and environmental and energy
benefits .
25374. (a) The California Environmental Protection Agency, in
consultation with the State Air Resources Board, the Department of
Toxic Substances Control , State Water Resources Control Board
, and air quality management districts, shall develop and
adopt model rules and regulations to ensure that
consider adoption of model rules, best practices guidelines, and
pollution prevention strategies to ensure that over a
specified 10-year phasein period not extending beyond January 1,
2016 2017 , 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 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 March 31, 2007
, the Secretary of the Business, Transportation and Housing
Agency and the Secretary for Environmental Protection
, in consultation with the Department of Finance , the
Secretary of the California Environmental Protection Agency,
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. SEC. 3.
(a) Not later than January 1, 2007 , and every third year
thereafter , 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. reduce the rate of growth in
petroleum consumption and increase transportation energy efficiency
and the use of alternative fuels, and shall submit to the Legislature
an assessment of the transportation energy efficiency and the
alternative fuel policies adopted pursuant to subdivision (a) of
Section 25372. The assessment shall include the status of adopted
policies, integrated energy policy report implementation, and
alternative fuel fleet procurement and infrastructure funding needs.
(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 transportation energy efficiency
strategies or alternative fuel policies are consistent with
attainment and maintenance of state and federal air quality
standards.
SEC. 5. SEC. 4.
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.