BILL NUMBER: SB 757 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 21, 2006
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, and 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
develop requirements, incentives, and partnerships for
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 Cal-EPA, not later than January 1, 2008,
and annually thereafter, 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 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 information
which the commission determines that there may be
believe s may reflect 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 or on petroleum
refiners or suppliers. The bill would provide that nothing in the act
authorizes or diminishes any authority of the Air Resources Board,
the State Energy Resources Conservation and Development Commission,
or other regulatory agency to order a petroleum refiner, supplier,
marketer, or retailer to produce, sell, or offer for sale
a specific fuel .
The bill would require the Secretary of the Business,
Transportation and Housing Agency, not later than March 31, 2008, in
consultation with the Department of Finance, the Secretary for
Environmental Protection, and the commission, to submit
recommendations to the Governor and the Legislature regarding
alternative revenue sources to supplement or replace 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 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 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)
(i) The Governor, the Legislature, and state and local
agencies should make every effort to reduce the growth in oil demand
and increase transportation energy 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 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, and 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
(d) Actions taken 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 develop requirements,
incentives, and partnerships for 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) 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. 25374. 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 General information which
it believes may reflect market abuse or unfair competition.
25376. 25375. Nothing in this
chapter authorizes the imposition of any tax or fee on consumers of
petroleum for onroad use, or on petroleum refining producers
or on petroleum refiners or suppliers. Nothing in
this chapter confers any new authority on, or diminishes any existing
authority of, the Air Resources Board, the State Energy Resources
Conservation and Development Commission, or other regulatory agency
to order a petroleum refiner, supplier, marketer, or retailer to
produce, sell, or offer for sale a specific fuel .
SEC. 2. Not later than March 31, 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 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. 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.