BILL ANALYSIS Ó
SB 20
Page 1
Date of Hearing: August 10, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 20
(Pavley) - As Amended August 2, 2016
-----------------------------------------------------------------
|Policy |Natural Resources |Vote:|5-2 |
|Committee: | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the Low Carbon Fuel Council (LCF Council)
to coordinate state activities related to the acceleration and
development of instate low carbon fuels. Specifically, this
bill:
1)Establishes the LCF Council with the following six members:
a) The Chair of California Air Resources Board (ARB).
SB 20
Page 2
b) The Chair of the California Energy Commission (CEC).
c) The Director of the Governor's Office of Business and
Economic Development (GO-Biz).
d) Two members with scientific, economic, or industry
professional backgrounds in the production of low carbon
and very low carbon fuels, one appointed by the Speaker of
the Assembly and one by the Senate Rules Committee.
e) One member appointed by the Governor, with the advice
and consent of the Senate, who is a representative of a
bona fide nonprofit environmental justice organization that
advocates for clean air and pollution reductions.
2)Requires members appointed by the Legislature and Governor to
serve four-year terms and allows reappointment.
3)Requires members to be reimbursed for actual and necessary
expenses and requires members to be compensated $100 each day.
4)Requires LCF Council meetings to comply with Bagley-Keene Open
Meeting Act.
5)Requires the LCF Council to do the following:
a) Coordinate state agencies' activities that are related
to acceleration and development of instate production of
low carbon and very low carbon fuels.
SB 20
Page 3
b) Identify and evaluate gaps in existing programs,
polices, or activities that could impede the instate
construction of new, or the expansion of existing, low
carbon and very low carbon fuel production facilities.
c) Provide recommendations to the Legislature for changes
in the law needed to achieve the goals of the Council.
6)Authorizes the Council to sponsor conferences, symposia, and
other public forums to seek a broad range of public advice.
FISCAL EFFECT:
This bill likely increases state costs, potentially in the
$250,000 to $500,000 range. While some of the costs may be
absorbed by the state agencies represented on the LCF Council,
it is unclear what entity will pay the additional costs of the
public members, the coordination of state activities, the
sponsorship of other public activities, and the information
required to prepare the report to the Legislature. This bill
does not specify where or how often the LCF Council will meet,
which would also add per diem and facilities costs.
COMMENTS:
1)Purpose. According to the author, currently, there are
no discussions about how the CEC and ARB programs will
coordinate, whether those facilities that receive a grant
from the CEC would be eligible for an ARB production
incentive, or whether there is a process to streamline
the application process. Low carbon fuel facilities are
a large capital investment, and in order to convince a
facility to come to California, the state needs to do
SB 20
Page 4
everything it can to maximize funding opportunities and
ensure the two programs are coordinating.
The Council established by this bill is designed to
coordinate these different efforts and identify gaps and
make recommendations to the legislature to address those
gaps.
2)Background.
The California Alternative and Renewable Fuel, Vehicle
Technology, Clean Air, and Carbon Reduction Act of 2007 [AB
118 (Núñez) Chapter 750/2007] increased vehicle registration
fees (+$3), Smog Abatement Fee (+$8), boat registration fees
($10/$20), and special identification plates (+$5) until
January 1, 2016 to fund three programs:
a) The Alternative and Renewable Fuel and Vehicle
Technology Program (ARFVTP), administered by the California
Energy Commission (CEC), provides grants, revolving loans,
loan guarantees, and other financial incentives to
accelerate the development and deployment of clean,
efficient, low carbon alternative fuels and technologies.
ARFVTP is funded by $2 of the vehicle registration fee and
receives approximately $100 million per year total.
b) The Air Quality Improvement Program (AQIP), administered
by the Air Resources Board (ARB) in consultation with local
SB 20
Page 5
air districts, funds projects that reduce criteria air
pollutants, improve air quality, and provide research for
alternative fuels and vehicles, vessels, and equipment
technologies. AQIP is funded by smog abatement fees, boat
registration fees, and special identification plate fees
and receives between $30-36 million per year.
c) The Enhanced Fleet Modernization Program (EFMP), under
which ARB, in consultation with Bureau of Automotive Repair
(BAR), pays to permanently remove cars and small trucks
from operation through voluntary retirement by their
owners. EFMP is funded by $1 of the vehicle registration
fee and receives approximately $30 million per year.
The Alternative Fuels Law required CEC and the ARB to develop
and adopt a state plan to increase the use of alternative
fuels by June 30, 2007. In response, the CEC and ARB published
the State Alternative Fuels Plan in 2007 and set alternative
fuel use goals of 9% in 2012, 11% in 2017, and 26% by the year
2022.
The Carl Moyer Memorial Air Quality Standards Attainment
Program (Moyer Program), administered by ARB and local air
districts, funds the incremental cost of cleaner-than-required
vehicles, engines, and equipment. The primary objective of
the program is to achieve air quality emission reductions that
would not otherwise occur through regulations or other legal
mandates. The Moyer Program is funded by vehicle registration
surcharges adopted by local air districts in nonattainment
areas, the authority to assess these fees sunset on January 1,
2015.
The Moyer Program was expanded until 2015, by AB 923
(Firebaugh), Chapter 707/Statutes of 2004, to cover additional
pollutants and engines, imposed an additional $1 fee on tire
sales to fund the Moyer Program and CalRecycle, and
established air quality improvement programs through local air
SB 20
Page 6
districts.
Both the AB 118 program and the Carl Moyer program were
extended by AB 8 (Perea-Pavley) Chapter 401, Statutes of 2013.
California Governor's Office of Business and Economic
Development (GO-Biz) has appointed a Zero Emission Vehicle
(ZEV) infrastructure deputy to assist in the development of
ZEV infrastructure including the development of hydrogen
production and fueling stations. The ZEV infrastructure
deputy has worked with local governments and various companies
to remove barriers to developing ZEV infrastructure.
1)Expenses and Per Diem. This bill requires LCF members to be
reimbursed for actual and necessary expenses and requires
members to be compensated $100 each day. This bill does not
distinguish between public members and members representing
state agencies. It is inappropriate for state agency members
to receive per diem for serving on the LCF Council in their
official capacity.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
SB 20
Page 7