BILL NUMBER: SB 757 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
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, 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 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 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 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 information which the commission believes 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 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.
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.
(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) 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 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) 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, 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. 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
information which it believes may reflect market abuse or unfair
competition.
25375. Nothing in this chapter authorizes the imposition of any
tax or fee on consumers of petroleum 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.