BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 808|
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                                   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.









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          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  







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             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.








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           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.  








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          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









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          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,  







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            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


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