BILL ANALYSIS Ó AB 808 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 808 (Ridley-Thomas) As Amended July 16, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |71-5 |(May 28, 2015) |SENATE: |40-0 |(September 3, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: B. & P. SUMMARY: Expands the authority of the California Department of Food and Agriculture (CDFA) to include alternative fuels, as defined; requires the method of sale for all motor vehicle fuels and lubricants to be consistent with national standards, and requires the Secretary of the CDFA to establish interim standards for methods of sale if national standards do not exist; and makes other conforming changes. The Senate amendments: 1)Make it unlawful for any person 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. AB 808 Page 2 2)Prohibits engine oil from being sold or distributed for use in an internal combustion engine unless the product conforms to certain specifications. 3)Provides that specified advertising requirements for motor vehicle fuels do not apply to propane or electricity or natural gas sold as motor vehicle fuel, as specified. 4)Make other technical and clarifying changes. FISCAL EFFECT: According to the Senate Appropriations Committee, CDFA costs in the near term would be minor and absorbable. As alternative fuels become more commercially viable and are more widely available, CDFA would incur unknown, but potentially significant additional costs for increased inspection, testing, training, and enforcement activities. COMMENTS: Purpose. This bill is sponsored by the CDFA. According to the author, "California is at the forefront of alternative and renewable fuel and vehicle technology. As more vehicles in California are powered by alternative fuels, it is imperative that the state protect its consumers and businesses by providing clear standards and guidelines to prevent consumer confusion and unfair business practices that could harm the marketplace. This bill will 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." Background. The CDFA is the only state agency with the authority to regulate the quality of fuel and automotive products. No other state agency has the authority to regulate weights and measures laws, advertising, labeling, and fuel quality requirements for motor vehicle fuels and automotive AB 808 Page 3 products. According to the author, for over eight years, the CDFA has had oversight authority of the quality of conventional fuels sold in California. All fuels must comply with fuel quality standards, advertising, and labeling requirements found in the BPC. Governor's Executive Order B-16-2012. Recognizing the multiple benefits of zero-emission vehicles (ZEVs), 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 to protect the environment, stimulate economic growth and improve the quality of life in the State." The Governor's Executive Order sets a long-term target of reaching 1.5 million ZEVs on California's roadways by 2025. The Executive Order also sets a longer term target of reducing transportation-related greenhouse gas emission by 80% below 1990 levels by 2050. The Executive Order established several milestones on a path toward 1.5 million ZEVs in California by the year 2025. The 2013 ZEV Action Plan was subsequently released, which identifies specific strategies and actions that state agencies will take to meet milestones of the executive order. According to the 2013 ZEV Action Plan, accelerating the market for ZEVs is a cornerstone of California's long-term transportation strategy to reduce localized pollution and greenhouse gas emissions, save consumers money, and enable continued economic growth. The Governor's Executive Order and the action plan concentrate on advancing ZEVs, recognizing the timely opportunity to accelerate use of this commercially available technology. The first goal under the ZEV Action Plan includes completing needed infrastructure and planning. The plan specifies the following action items the CDFA is responsible for, including: 1) supporting the development of standards for electric chargers and hydrogen stations to ensure that drivers understand charging and fueling costs; 2) installing signage at public electric charging stations and hydrogen stations that informs drivers of AB 808 Page 4 prices per unit of measure, applicable charging voltages and filling pressures; and 3) enacting necessary legislation, regulations, standards or certifications to enable hydrogen to be sold commercially on per kilogram basis and electricity on a single unit of measure basis (e.g., kilowatt-hour), as specified. Regulations of Motor Vehicle Fuels. According to the CDFA, in order for the CDFA to comply with Executive Order B-16-12, 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 CDFA 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 CDFA clear authority to regulate fuel quality, advertising, and labeling, thereby protecting consumers. Specifically, to provide the type of infrastructure necessary under the ZEV action plan, it is necessary to ensure: that ZEV fuels can be sold commercially to mainstream consumers on a single unit of measurement basis; price transparency for ZEV fuels, which supports the development of standards for electric chargers and street sign advertising to ensure consumers understanding costs; and that ZEV fuels can legally be sold as a retail transportation fuel. 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 or 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 would allow the CDFA to ensure consumers are informed by giving the CDFA the authority to establish a AB 808 Page 5 single consistent method of sale, advertising, and labeling for motor vehicle fuels, including alternative fuels. In addition, according to the CDFA, existing law does not provide the CDFA 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 would make clear that the CDFA has the enforcement capability necessary to ensure standards are met. Analysis Prepared by: Eunie Linden / B. & P. / (916) 319-3301 FN: 0001875