BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 808| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 808 Author: Ridley-Thomas (D) Amended: 7/16/15 in Senate Vote: 21 SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 8-0, 6/22/15 AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Mendoza, Wieckowski NO VOTE RECORDED: Jackson SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/14/15 AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 71-5, 5/28/15 - See last page for vote SUBJECT: Automotive fuels and products SOURCE: California Department of Food and Agriculture DIGEST: This bill expands the California Department of Food and Agriculture's regulatory authority regarding alternative fuels, requires the methods for sales of all motor vehicle fuels and lubricants to follow specified national standards and requires the Secretary of the California Department of Food and Agriculture to establish interim standards for methods of sale if national standards do not exist. AB 808 Page 2 ANALYSIS: Existing law: 1) Provides the California Department of Food and Agriculture (Department) general supervision over weights and measures and weighing and measuring devices sold or used in the state. (Business and Professions Code (BPC) § 12100 et seq.) 2) Regulates the sale of, and enforces standards, for petroleum and hydrogen fuel products, and requires the Department to establish standards for motor vehicle fuels and other petroleum products that are offered for sale in the state. Requires the Department, through the Division of Measurement Standards, to enforce regulations and standards for motor vehicle fuels and lubricants. (BPC § 13400 et seq.) 3) Requires the Department, on or before January 1, 2008, to establish specifications for hydrogen fuels for use in internal combustion engines and fuel cells in motor vehicles, as specified. (BPC § 13446) 4) Makes it generally unlawful to sell or deliver for the purpose of sale, various fuel products unless it conforms to the Department's specifications. (BPC § 13400 et seq.) 5) Requires that the sale, offer for sale, or advertisement for sale at retail to the general public of compressed natural gas be only for use as a motor vehicle fuel, and requires compressed natural gas and liquefied natural gas to be sold in specified gallon equivalents. (BPC § 13404) 6) Makes it unlawful for any person or other legal entity to make any deceptive, false, or misleading statement by any means whatever regarding quality, quantity, performance, price, discount, or saving used in the sale or selling of any petroleum or hydrogen fuel product regulated pursuant to these provisions. (BPC § 13413) 7) Makes it unlawful for a person to sell or deliver any petroleum product that fails to meet the specifications required by these provisions (relating to petroleum and AB 808 Page 3 hydrogen fuels) or to sell or deliver any petroleum product into, from, or through an unlabeled or mislabeled device or container. (BPC § 13595) This bill: 1) Revises existing definitions relating to petroleum and hydrogen fuels, deletes the use of the term "petroleum" throughout these provisions, and defines the following terms: a) "Alternative fuels" which include biodiesel, biodiesel blend, dimethyl ether, electricity, ethanol, ethanol fuel blend, hydrogen, methanol fuel blend, natural gas, propane, all defined under the bill, and any other fuel intended for use as a motor vehicle fuel that the Secretary determines is an alternative fuel that has a standard specification from a standards development organization accredited by the American National Standards Institute, or an interim standard specification, as specified. b) "Engine fuel," which include any gasoline, diesel, or alternative fuel used for the general of power in an internal combustion engine or fuel cell in a motor vehicle, or electrical power delivered conductively or inductively to an electronic motor in electric or plug-in hybrid vehicles, and defines "motor vehicle fuel" to mean "engine fuel." c) "Motor vehicle fuel" which means an engine fuel intended for consumption in, including, but not limited to, an internal combustion engine, fuel cell, or electric motor to produce power to self-propel a vehicle designed for transporting persons or property on a public street or highway. 2) Revises provisions relating to the regulation of motor vehicle fuels and lubricants to include alternative fuels, as specified, thereby extending to the Department the authority to regulate alternative fuels, including setting standards specific to those types of alternative fuels based on standards established by various standards development organizations. AB 808 Page 4 3) Prohibits any person to sell or offer to sell motor vehicle fuel for use in any vehicle on the condition that the purchaser also must purchase or pay for any other products, merchandise, or services, as specified. 4) Requires the Secretary to establish the method of sale of motor vehicle fuels and lubricants sold at retail to the public by adopting, by reference, the latest method of sale for motor vehicle fuels and lubricants published in the National Institute of Standards and Technology Handbook 130-2015, except as specifically modified, amended, or rejected by the Secretary, and authorizes, in the absence of national standards, the Secretary to adopt interim standards of method of sale until the time when the standards are adopted by the National Conference on Weights and Measures. 5) Makes alternative fuels subject to the same, or similar, advertising, hours of business, price indications, labeling, price sign advertising, inducements, and other standards as other types of motor vehicle fuels, except as specified. 6) Exempts electricity from meeting certain labeling standards for motor vehicle fuels, certain advertising standards, and sale standards, as specified. 7) Exempts natural gas from certain advertising standards, as specified. 8) Defines "diesel exhaust fluid" and requires the Secretary to establish the method of sale of diesel exhaust fluid sold at retail to the public, as specified. 9) Extends the enforcement ability of the Department to these added motor vehicle fuels and automotive products. 10)Makes additional conforming and related changes. Background This bill is intended to provide the necessary regulatory framework to ensure that alternative motor vehicle fuels and automotive products are regulated in a similar manner as traditional fuels and automotive products. AB 808 Page 5 Governor's Executive Order B-16-2012. Recognizing the multiple benefits of zero-emission vehicles, as well as challenges to growing the market, Governor Brown issued Executive Order B-16-2012 on March 23, 2012 that directed California to "encourage the development and success of zero-emission vehicles (ZEV) to protect the environment, stimulate economic growth and improve the quality of life in the State." The Department's Regulations of Motor Vehicle Fuels. According to the Department, in order for the Department to comply with Executive Order B-16-2012, existing law must be amended to allow the legal sale of alternative motor vehicle fuels. While existing law defines petroleum products and motor vehicle fuels, it does not adequately define "alternative motor vehicle fuels." As a result, the Department is restricted from establishing fuel quality specifications that would protect consumers from substandard products and regulate advertising for these new alternative fuels. Defining these terms and incorporating them throughout these provisions gives the Department clear authority to regulate fuel quality, advertising, and labeling, thereby protecting consumers. While hydrogen is currently defined, electricity, and other alternative fuels, are not, which is what this bill seeks to do. In addition, existing law requires sellers of motor vehicle fuels to adhere to certain pricing, labeling, and advertising requirements, and requires fuels advertised for sale to be in prices relating to gallons or liters. However, not all alternative fuels will be sold in these volumetric units of measurement. This bill allows the Department to ensure consumers are informed by giving the Department the authority to establish a single consistent method of sale, advertising, and labeling for motor vehicle fuels, including alternative fuels. In addition, according to the Department, existing law does not provide the Department with the authority to protect against substandard fuels and automotive products, which could negatively impact vehicle emissions and mileage performance, and damage engines and fuel cells. This bill makes clear that the Department has the enforcement capability necessary to ensure standards are met. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes AB 808 Page 6 According to the Senate Appropriations Committee, this bill will result in minor and absorbable costs to the Department. The Committee notes that as alternative fuels become more commercially viable and are more widely available, the Department would incur unknown, but potentially significant additional costs for increased inspection, testing, training, and enforcement activities impacting the Food and Agriculture Fund and/or General Fund. SUPPORT: (Verified8/28/15) California Department of Food and Agriculture (source) Clean Energy California Biodiesel Alliance The California Natural Gas Vehicle Coalition UPS OPPOSITION: (Verified8/28/15) None received ARGUMENTS IN SUPPORT: Supporters believe that expanding the authority of the Department's Division of Measurement Standards over all vehicle fuels, including alternative fuels, new automotive products, as well as establishing appropriate methods of sale for such fuels will ensure consistency with national standards. ASSEMBLY FLOOR: 71-5, 5/28/15 AYES: Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, AB 808 Page 7 Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Weber, Wilk, Williams, Wood, Atkins NOES: Beth Gaines, Gatto, Harper, Melendez, Waldron NO VOTE RECORDED: Achadjian, Bloom, Gomez, Grove Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104 8/31/15 9:06:12 **** END ****