BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 808


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          808 (Ridley-Thomas)


          As Amended  July 16, 2015


          Majority vote


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          |ASSEMBLY:  |71-5  |(May 28, 2015) |SENATE: |40-0  |(September 3,    |
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          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. 










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          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  








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          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  








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          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  








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          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