BILL ANALYSIS
SB 757
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Date of Hearing: August 9, 2006
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
SB 757 (Kehoe) - As Amended: February 27, 2006
Policy Committee: Transportation
Vote: 8-4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires, among other several other things, state
agencies to 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.
FISCAL EFFECT
1)Moderate total ongoing costs, in the range of $300,000
starting in 2006-07, to all state agencies combined to
integrate transportation energy goals into their adoption of
rules and regulations. (GF and several special funds.)
2)Minor ongoing costs, probably less than $150,000 annually
starting in 2006-07, to the Air Resources Board (ARB), to
consider alternative fuel vehicle programs and advanced
transportation technology when adopting air pollution rules
and regulations applicable to motor vehicles. (GF or Air
Pollution Control Fund (APCF)).)
3)Minor ongoing costs, perhaps $80,000 annually starting in
2007-08, to CalEPA to assess oil refinery pollution
violations. (GF or APCF.)
4)Minor ongoing costs, about $100,000 annually starting in
2006-07, to the California Energy Commission (CEC) to expand
its reporting, monitoring and analysis of oil market pricing
and supply. (Energy Resources Programs Account.)
5)Minor one-time costs, probably less than $50,000 in 2006-07,
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to the Business, Transportation and Housing (BT&H) Agency to
make recommendations on alternative revenue sources to gas and
diesel fuel taxes. (GF or Motor Vehicle Account.)
SUMMARY CONTINUED
Specifically, this bill:
1)Requires state agencies to consider the state's transportation
energy goals in adopting rules and regulations, including the
recommendations of the CEC in the most-recently adopted
Integrated Energy Policy Report.
2)Requires the ARB, when the board adopts rules and regulations
to reduce air pollution and toxic air contaminants from motor
vehicles, to consider requirements, incentives, and
partnerships for publicly administered fleet operators to buy
alternative fuel vehicles and install advanced transportation
technologies.
3)Requires the CEC to include, in its oil industry price and
supply reporting, monitoring and analysis, trends in world oil
demand and to refer to the Attorney General any cases in which
the commission determines that there may be market abuse or
unfair competition.
4)Requires CalEPA, starting by January 1, 2008, to annually
assess oil refinery pollution violations, the status of these
violations, and the technological feasibility and community
health benefits of modernizing the state's oil refineries,
fuels storage, and fuel transport system.
5)Requires the Secretary of the BT&H Agency, by March 31, 2008,
to recommend, to the governor and the Legislature, alternative
revenue sources to supplement or replace lost revenue
generated by taxes on gasoline and diesel fuel.
6)Requires the Secretary of CalEPA to take action intended to
influence Congress and the U.S. Department of Transportation
to double the combined fuel economy of cars and light trucks
by 2020.
COMMENTS
Rationale . The author believes the state needs to take
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comprehensive and coordinated actions to reduce California's
demand for petroleum and to increase the availability of
alternative fuels and transportation technologies. This bill
establishes a complex process, primarily involving CalEPA, the
ARB, and the CEC, but affecting all state agencies, to identify,
encourage, and integrate policies to reduce petroleum
consumption, increase alternative fuel consumption, and help
make California more petroleum independent.
Analysis Prepared by : Steve Archibald / APPR. / (916)
319-2081