BILL NUMBER: SB 757 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 27, 2006
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 shall take all cost-effective and
technologically feasible actions needed to reduce the growth of
petroleum consumption, and increase transportation energy
conservation, efficiency , and the use of
alternative fuels. The act would require state agencies to take the
state's 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 require, no later than January 1, 2008, and every
3rd year thereafter, the California Environmental Protection Agency
(Cal-EPA), with the assistance and consultation of the State Air
Resources Board, the commission, the South Coast Air Quality
Management District, and the Cal-EPA Environmental Justice Advisory
Committee to submit to the Legislature an assessment of the
transportation energy conservation, efficiency, and any alternative
fuel policies adopted pursuant to the aforementioned provisions.
The bill would require the State Air Resources Board, in adopting
or amending rules and regulations to reduce air pollution and toxic
air contaminants from motor vehicle fuels , consistent with the
above-described policy declaration, to
consider requirements, incentives, and partnerships for
fleet operators, both public and private publicly
administered fleets to purchase and install alternative fuel
vehicles and advanced transportation technologies, taking into
account life cycle operating costs, public health, and environmental
and energy benefits.
The bill would require the California Enviromental
Protection Agency Cal-EPA, not later than January 1,
2008, and annually thereafter , 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
consider adoption of model rules, 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, 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. Attorney
General, the Cal-EPA Environmental Justice Advisory Committee, air
pollution control districts and air quality management districts, and
affected communities and industries to publish a report assessing
specified violations of air pollution, water pollution, and hazardous
waste regulations by each oil refinery in the state and the
disposition of the violations , and containing specified
information regarding the technological feasibility and community
health benefits of modernizing the state's oil refineries, fuels
storage, and fuel transport systems, as specified . The
bill would require that the report be posted on an Internet Web site
that is generally accessible to the public, and would require Cal-EPA
to provide copies to local governments in the areas where the
refineries are located and to community groups and
organizations that have requested a copy of the report.
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 provide that nothing in the act authorizes the
imposition of any tax or fee on consumers of petroleum for onroad
use, or on petroleum producers.
The bill would require the Secretary of the Business,
Transportation and Housing Agency, not later than March 31,
2007 2008 , in consultation with the Department
of Finance, the Secretary for 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 lost tax revenue from
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 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 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 in onroad petroleum consumption
, and increasing transportation energy
efficiency conservation and 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 the growth in oil demand and
increase transportation energy efficiency
conservation and 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 shall take every cost-effective and technologically
feasible action needed to reduce the growth of petroleum consumption
and to increase transportation energy efficiency
conservation and 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.
(c) (1) No later than January 1, 2008, and every third year
thereafter, the California Environmental Protection Agency (Cal-EPA),
with the assistance and consultation of the State Air Resources
Board, the State Energy Resources Conservation and Development
Commission, the South Coast Air Quality Management District, and the
Cal-EPA Environmental Justice Advisory Committee shall submit to the
Legislature an assessment of the transportation energy conservation,
efficiency, and any alternative fuel policies adopted pursuant to
subdivision (a).
(2) The assessment required pursuant to paragraph (1) shall
include information on the status of adopted policies, the Integrated
Energy Policy Report implementation, and alternative fuel fleet
procurement and infrastructure funding needs.
(d) The development and adoption of the recommendations, policies,
and programs required pursuant to subdivision (a) shall also
integrate existing air quality standards, including, but not limited
to, standards for particulates, criteria pollutants, toxic air
contaminants, and greenhouse gases, to ensure that transportation
energy conservation and efficiency strategies and alternative fuels
policies are consistent with the attainment and maintenance of state
and federal air quality standards.
25373. In adopting or amending rules and regulations to reduce
air pollution and toxic air contaminants from motor vehicle fuels,
the State Air Resources Board, shall , consistent with the
policy declaration in subdivision (a) of Section 25372,
consider requirements, incentives, and partnerships for
fleet operators, both public and private, publicly
administered fleets to purchase and install alternative fuel
vehicles and advanced transportation technologies, taking into
account 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 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, 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).
25374. (a) Not later than January 1, 2008, and annually
thereafter, the California Environmental Protection Agency (Cal-EPA),
in consultation with the Attorney General, the Cal-EPA Environmental
Justice Advisory Committee, air pollution control districts and air
quality management districts, and affected communities and industries
shall publish a report assessing the following:
(1) Violations of air pollution, water pollution, and hazardous
waste regulations by each oil refinery located in the state that have
occurred on or after January 1, 2007.
(2) Information regarding the disposition of the violations
identified in paragraph (1).
(3) The technological feasibility and community health benefits of
modernizing the state's oil refineries, fuels storage, and fuel
transport systems using best available control technology to reduce
or prevent violations of air pollution, toxic air contaminants,
hazardous waste generation and disposal, and fugitive emissions,
thereby reducing or preventing accidental upsets, breakdowns, and
worker injuries, and improving safety.
(b) The report proposed pursuant to subdivision (a) shall be
posted on an Internet Web site that is generally accessible to the
public, and Cal-EPA shall provide copies of the report to local
governments in the areas where the refineries are located, and to
community groups and organizations that have requested a copy of the
report.
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.
25376. Nothing in this chapter authorizes the imposition of any
tax or fee on consumers of petroleum for onroad use, or on petroleum
refining producers.
SEC. 2. Not later than March 31, 2007 2008
, the Secretary of the Business, Transportation and Housing
Agency, 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 lost tax revenue from 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. (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 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 transportation energy efficiency
strategies or alternative fuel policies are consistent with
attainment and maintenance of state and federal air quality
standards.
SEC. 4. SEC. 3. The Secretary for
Environmental Protection shall take action intended to influence
the 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.