Legislative Update

California | Federal

Last Updated: 5/10/11

Featured Bill: The 2011 Nat Gas Act

HR 1380 | Authors: Reps. John Sullivan (R-OK), Dan Boren (D-OK), John Larson (D-CT), and Kevin Brady (R-TX)
In brief: The New Alternative Transportation to Give Americans Solutions of 2011 provides incentives for the use of natural gas as a vehicle fuel; the purchase of natural gas
fueled vehicles; and the installation of natural gas vehicle refueling property. Each of these
incentives would be in place for five years.
Details:The legislation provides:

• A tax credit for up to 80% of the incremental cost of buying a natural gas vehicle, with a maximum value ranging from $7,500 for a light-duty passenger vehicle to $64,000 for the heaviest trucks. Recognizing the innovations in vehicle engine technology, the bill includes incentives for both bi-fuel vehicles – those that run on either natural gas or gasoline – and dual fueled vehicles – where there is a mixture of small amount of diesel fuel with the natural gas. There are no vehicle tax credits in place today.
• A 50-cent per gallon fuel tax credit that is in place in 2011.
• An infrastructure tax credit of 50% of the cost up to a maximum tax credit of $100,000 per station. For stations built in 2011, there is an existing infrastructure tax credit of 30% with a maximum credit of $30,000. These credits cover only a small portion of the cost of building a station. This credit would also extend to home refueling units, where purchases would be eligible for a $2,000 tax credit.
• A tax credit to the manufacturer for the production of natural gas vehicles.
• Other provisions that will facilitate the production and use of natural gas vehicles.

Status: The bill, H.R.1380, had 76 original co-sponsors when it was introduced. The last major action occurred on April 6, 2011 when it was referred to the House subcommittee. It was most recently referred to the Subcommittee on Energy and Power.

California Legislation

AB 638 | Author: Skinner
In brief: Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to examine the feasibility of operating a strategic fuel reserve and recommend an appropriate level of reserves. Existing law also requires the Energy Commission and the State Air Resources Board, in consultation with other state and local agencies the commission deems necessary, to develop and adopt recommendations for the Governor and Legislature on a California Strategy to Reduce Petroleum Dependence. AB 638 (Skinner) would require the commission and the board to, among other things, attain the targets set forth in the strategy as efficiently as possible, coordinate the attainment of the targets with provisions regulating alternative fuels, and require all future regulations and guidelines to maximize the attainment of targets.
Details: The bill would also require the commission and the board, on or before January 1, 2013, in consultation with other state and local agencies the commission deems necessary, to adopt a series of interim actions to reduce petroleum fuel consumption by 15% below the 2003 levels by 2020 and increase alternative fuel consumption by 26% by 2022.
Status: Proposed.

AB 1507 | Author: Lieu
In brief: AB 1507 (Lieu) achieves Carl Moyer Program funding flexibility so that any use of state or federal GHG emission reduction program funds would not detrimentally impact a project's competitiveness when the project is considered for funding through the Carl Moyer Program.
Details: CARB is required to revise Carl Moyer project guidelines by July 2011.
Status: Signed by Governor, Chapter 571, Statutes of 2010.

AB 32 | Author: Pavley
In brief: The Global Warming Solutions Act of 2006.
Details: Assembly Bill 32 sets the 2020 greenhouse gas emission reduction goal into law. It directed the California Air Resources Board to begin developing discrete early actions to reduce greenhouse gases while also preparing a scoping plan to identify how best to reach the 2020 limit. The reduction measures to meet the 2020 target are to be adopted by the start of 2011.
Status: In 2006, the Legislature passed and Gov. Schwarzenegger signed AB 32. A timeline is in place through the 2020 deadline for achieving the GHG emission cap, though implementation is threatened by Proposition 23 in the Nov. 2, 2010 election.

AB 1500 | Author: Lieu
In brief: Authorizes the Department of Transportation to designate certain lanes for the exclusive use of high-occupancy vehicles. Those lanes may also be used until Jan. 1, 2011 by certain low-emission and hybrid vehicles not carrying the requisit number of passengers otherwise required for the use of an HOV lane if the vehicle displays a valid identifier issued by teh Department of Motor Vehicles.
Details: Extended until Jan. 1, 2015 the current carpool privileges for owners of electric vehicles and cars running on compressed natural gas. Those owners can immediately apply for white stickers, and there is no limit to how many can be issued.
Status: Signed into law by Gov. Schwarzenegger.

SB 375 | Author: Steinberg
In brief: Senate Bill 375 would be the nation's first law to control greenhouse gas emissions by curbing sprawl. SB 375 provides emissions-reducing goals for which regions can plan, integrates disjointed planning activities, and provides incentives for local governments and developers to follow new conscientiously-planned growth patterns.
Details: SB 375 enhances CARB's ability to reach AB 32 goals.
Status: Passed in 2008.

SB 960| Author: Dutton
In brief: Requires the Legislative Analyst to analyze major regulations adopted by CARB to determine their costs, benefits and technological feasibility.
Details: An act to add to the Health and Safety Code, relating to air resources.
Status: Reconsideration granted after SB 960 failed to pass Senate Environmental Quality Committee.

SB 1033 | Author: Wright
In brief: If market-based compliance mechanisms (like cap and trade) are adopted to implement AB 32, the amended SB 1033 would required CARB to limit distribution or sale of GHG emission allowances to regulated entities.
Details: The author is concerned about market manipulation and allowance banking by entities not regulated under AB 32, which could drive up the cost of allowances for regulated entities.
Status: Held without recommendation in Assembly Natural Resources Committee.

SB 1120 | Author: Dutton
In brief: Prohibits CARB from launching a market-based mechanism that includes caps on GHG emissions and trading among participants unless part of a legally enforceable regional or federal program.
Details: Author also wrote SB 960.
Status: Reconsideration granted after it failed to pass Senate Environmental Quality Committee.

SB 1245 | Author: Simitian
In brief: Amended to prevent vehicles that meet occupancy requirements for HOV and high-occupancy toll (HOT) lanes from being charged a toll.
Details: Bill would prohibit transit agencies from charging carpoolers for the use of high-occupancy traffic lanes.
Status: Held in Assembly Transportation Committee without recommendation.

Federal Legislation

HR 5967 | Author: Nadler
In brief: Gives ports clear authority to require trucks that service the nation's ports to meet minimum environmental, health, safety and security standards.
Details: Trucks servicing the nation's ports are the dirtiest, oldest and least maintained trucksi n the country. The Clean Ports Act would allow ports to require that trucking companies register wtih the ports so that they are able to hold companies responsible for ensuring their trucks meet federal standards.
Status: Currently has 65 co-sponsors and designed to overcome a court ruling blocking truck rules at California ports.

S. 3815 | Author: Harry Reid
In brief: Promotes natural gas and electric vehicles.
Details: This bill was considered in a committee which has recommended it be considered by the Senate as a whole. The order in which legislation is considered and noted on is determined by the majority party leadership.
Status: Motion to proceed to consideration of measure withdrawn in Senate. This bill was introduced and reported to the Senate on Sept. 21, 2010.