Bill Text: CA AB2656 | 2013-2014 | Regular Session | Amended
Bill Title: Petroleum: labeling.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-05-23 - In committee: Set, second hearing. Held under submission. [AB2656 Detail]
Download: California-2013-AB2656-Amended.html
BILL NUMBER: AB 2656 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Jones
FEBRUARY 21, 2014
An act to amend add Section
13480 of 13480.5 to the Business and
Professions Code, relating to petroleum.
LEGISLATIVE COUNSEL'S DIGEST
AB 2656, as amended, Jones. Petroleum: labeling.
Existing law makes it unlawful to sell specified petroleum
products unless a sign or label is posted, as prescribed, that
contains specified information relating to the product and its
contents. Existing law requires the Department of Food and
Agriculture, acting through the Division of Measurement Standards, to
enforce these provisions. Existing law makes a violation of these
provisions a crime.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emissions
reductions. The act authorizes the state board to include the use of
market-based compliance mechanisms.
This bill would require each motor fuel transaction in this state
to contain information regarding the estimated cost of compliance
with any market-based compliance mechanism that the State Air
Resources Board may adopt. On or before February 15, 2015, the bill
would require the Division of Measurement Standards to estimate the
cost per gallon of motor fuel resulting from compliance with any
market-based compliance mechanism according to prescribed formulas.
The bill would require the division to post the estimated cost per
gallon calculated pursuant to the prescribed formulas on its Internet
Web Site on or before February 15, 2015, and to annually update that
information. After February 15, 2015, the bill would require a
person who prepares a wholesale motor fuel invoice or product
transfer document to include a specified statement that includes the
estimated cost per gallon of motor fuel resulting from compliance
with any market-based compliance mechanism. After March 15, 2015, the
bill would require a person selling motor fuel at retail to affix a
sticker to the fuel dispenser containing a specified statement that
includes the estimated cost per gallon of motor fuel resulting from
compliance with any market-based compliance mechanism. Because a
violation of the provisions requiring disclosure of certain
information would be a crime, this bill would impose a state-mandated
local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would make nonsubstantive changes to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13480.5 is added to the
Business and Professions Code , to read:
13480.5. (a) For purposes of this section, the following terms
have the following meanings:
(1) "Division" means the Division of Measurement Standards.
(2) "Motor fuel" means gasoline and diesel fuel.
(b) On or after February 15, 2015, each motor fuel transaction in
this state shall contain information, as provided in this section,
regarding the estimated cost of compliance with any market-based
compliance mechanism that the State Air Resources Board may adopt
pursuant to Part 5 (commencing with Section 38570) of Division 25 of
the Health and Safety Code.
(c) For purposes of subdivision (b), the division shall estimate
the cost per gallon of motor fuel resulting from compliance as
follows:
(1) On or before February 15, 2015, the division shall estimate
the cost pursuant to the following formula:
(A) One hundred fifty-six and nine tenths million metric tons of
carbon dioxide multiplied by the clearing price of one compliance
instrument sold at the most recent auction conducted by the State Air
Resources Board.
(B) The product of the calculation in subparagraph (A) shall be
divided by the total number of on-road and off-road motor fuel
gallons sold in 2014 to derive the estimated cost per gallon.
(2) On or before February 15 each year thereafter, the division
shall estimate the cost pursuant to the following formula:
(A) Multiply the total number of on-road and off-road diesel fuel
gallons sold in the state during the previous calendar year by 9.96
kilograms and divide the product of that calculation by 1,000 to
derive the number of metric tons of carbon dioxide from diesel
combustion.
(B) Multiply the total number of on-road and off-road gasoline
fuel gallons sold in the state during the previous calendar year by
8.55 kilograms and divide that product by 1,000 to derive the number
of metric tons of carbon dioxide from gasoline combustion.
(C) Add the quotients of subparagraphs (A) and (B) together to
derive the total metric tons of carbon dioxide from motor fuel
combustion.
(D) Multiply the total metric tons of carbon dioxide from motor
fuel combustion by the clearing price of one compliance instrument
sold at the most recent auction conducted by the State Air Resources
Board.
(E) Divide the product of the equation in subparagraph (D) by the
total number of gallons of diesel and gasoline fuel from
subparagraphs (A) and (B) to derive the estimated cost per gallon of
motor fuel.
(d) The division shall post the estimated cost per gallon
calculated pursuant to paragraph (1) of subdivision (c) in a
prominent location on its Internet Web site on or before February 15,
2015. On or before February 15 each year thereafter, the division
shall update the estimated cost per gallon on its Internet Web site
by using the estimated cost per gallon derived from the formula in
paragraph (2) of subdivision (c).
(e) (1) After February 15, 2015, a person who prepares a wholesale
motor fuel invoice or product transfer document shall include a
statement in the invoice or document that states the following: "It
has been estimated that the cost of fuel in this invoice is increased
by $____ per gallon due to Greenhouse Gas Emissions Reduction
regulations adopted by the State Air Resources Board."
(2) In the blank space provided for the increased cost per gallon,
the person shall use the estimated cost per gallon calculated by the
division for the relevant year pursuant to subdivision (c).
(f) (1) After March 15, 2015, a person selling motor fuel at
retail shall affix a sticker to the fuel dispenser that states the
following: "It has been estimated that the cost of fuel at this
dispenser is increased by $____ per gallon due to Greenhouse Gas
Emissions Reduction regulations adopted by the State Air Resources
Board."
(2) In the blank space provided for the increased cost per gallon,
the person shall use the estimated cost per gallon calculated by the
division for the relevant year pursuant to subdivision (c).
(3) The sticker shall comply with the requirements of subdivision
(e) of Section 13480.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 13480 of the Business and
Professions Code is amended to read:
13480. (a) It is unlawful for a person to sell a petroleum
product referred to in this chapter at a place where petroleum
products are kept or stored for sale, unless there is affixed to each
container, receptacle, pump, dispenser, and inlet end of the fill
pipe of each underground storage tank, from which or into which that
product is drawn or poured out for sale or delivery, a sign or label
plainly visible consisting of the name of the product, the brand,
trademark, or trade name of the product, and, in the case of engine
fuel and kerosene, the grade or brand name designation.
(b) When the product is oil, as defined by Section 13401, each
sign or label shall also have in letters or numerals, plainly
visible, the viscosity grade classification as determined in
accordance with the SAE International latest standard for engine oil
viscosity classification SAE J300 or manual transmission and axle
lubricants viscosity classification SAE J306, as applicable, and
shall be preceded by the letters "SAE."
(c) When the product is automotive spark-ignition engine fuel,
except M-85 and M-100 methanol fuel, there shall be conspicuously
displayed on the dispensing device at least one sign or label showing
the minimum octane number or antiknock index, as defined in Section
13403, of the product sold therefrom.
(d) When the product is a motor fuel consisting of a mixture or
premixture of gasoline and oil or gasoline-oxygenate blend and motor
oil, there shall be conspicuously displayed on the dispensing device
at least one sign or label stating the ratio of gasoline to motor oil
or gasoline-oxygenate blend to motor oil.
(e) All signs or labels required by this section for retail motor
fuel dispensers and containers of more than one gallon capacity shall
be in letters and numerals not less than one-half inch (12.70 mm) in
height. On containers of one gallon or less, the signs or labels
shall be in letters and numerals not less than one-fourth inch (6.35
mm) in height and one-sixteenth inch (1.59 mm) in width.
(f) The provisions of this section pertaining to octane numbers or
antiknock index and motor oil SAE International viscosity number
grade shall not apply to products sold for aviation purposes.
(g) This section shall apply, with respect to thinners or
solvents, only to the sale, delivery, or offer for sale of the
products through service stations, garages, and other retail outlets.
