Assembly Standing Committee on Emergency Management

There you go. Good morning, everyone, and welcome. Thank you all for being here in the Assembly Emergency Management Committee. We are here because SB 795 has been referred according to Assembly Rule 96. We have one bill today, which is SB 795, which is eligible.

This bill, we're gonna invite our witnesses up. And as they come up, the bill is entitled to a primary witness in support, a primary witness in opposition. Each will be allotted two minutes for their testimony. Following the presentation, folks can add on with your name, affiliation, and position on the bill, and written testimony may also be submitted. So with that, looks like we have a quorum.

Let's establish that. Madam secretary, please call the roll.

Quorum call.

[roll call]

Awesome. Thank you for that. So we're gonna move forward, and we're now gonna hear SB 795. Senator Archuleta, would you like to begin?

Thank you, Madam Chair and members. I'm so excited to be in your home and I really appreciate this opportunity to present this very, very exciting bill before you. And I'm pleased to present Senate Bill 795, a bipartisan measure that provides a narrow technical fix needed to complete California's implementation of E15 fuel.

Before I begin, I would like to thank nearly the 20 legislative colleagues that have already supported the bill, especially Senator Valladares and Assembly member Alvarez, who as you know, spearheaded the bill last go round. And his efforts are obviously here today at the table.

He has pioneered the bills I mentioned, and and he is a co author and I'm so proud to have him with me today to make sure that all of us understand exactly how important this bill is. Unfortunately, because of the timing and circumstances surrounding the drafting of the bill, their names were not able to be included in the final amendments, but I do greatly appreciate their participation and support.

Last year, the legislator passed AB 30 with Brad, with broad bipartisan support, and the Governor signed it into law. AB 30 authorized the sale of gasoline containing up to 15% ethanol, commonly known as E15. Unfortunately, the regulatory issue involving vapor recovery equipment overseen by the Office of the State Fire Marshal has created an unintended barrier to implement the law.

Senate Bill 795 addresses that barrier. The bill allows equipment already approved for E10 to be used with E15 when the equipment manufacturer certifies that it is compatible with E15. This includes vapor recovery nozzles, dispensers, and related components.

Importantly, Senate Bill 785 does not eliminate California's fire and safety precautions and protections. The Office of the State Fire Marshal retains its regulatory authority, and the bill directs the Fire Marshal to establish appropriate E15 safety and labeling requirements.

California continues to face significant challenges with gasoline supply and affordability. E15 provides another tool to increase fuel supply and competition with the potential to save California drivers approximately 20¢per gallon or more given the increased cost of oil.

The Governor has directed state agencies to expedite the availability of E15, and CARB is moving forward with its E15 regulations. Senate Bill 795 ensures that this separate vapor recovery issue does not prevent those efforts from translating into actual fuel availability at California stations.

This bill is about removing an unintended regulatory roadblock while maintaining appropriate safety oversight and helping me to deliver, all of us low cost fuel for California and to the consumers.

For these reasons, I respectfully ask for your aye vote. And with me, I have my partner in this bill with me again, Assemblymember David Alvarez representing the Problem Solvers Caucus, and Neil Koehler from Renewable Fuels Association to testify in support. Thank you, Madam president.

Thank you, Senator. We're gonna welcome invite our guests and our colleague. You'll have two minutes each if you wanted to add on testimony in support of the bill.

Thank you, Chair Ransom. I'll be very brief while under those two minutes. Senator Archuleta, thank you again for bringing this forward in the partnership. He came to this, you know, rather rather quickly, but he clearly understands, as all of you do, why this is important. And he shared that already quite well eloquently.

I just wanna say that we are here in support because we all voted for, in a bipartisan way, AB 30. This is a technical issue that needs to be addressed so that this could actually be a product that can be delivered to our California consumers. And we will maintain, as the Senator stated in his remarks, and ensure that all the Fire Safety Marshal issues are addressed in a timely manner to make sure that again, we can deploy this type of product to Californians.

Obviously, we don't want to delay this. That's why we're bringing this forward to you today. And again, respectfully ask for your support and thank you for the opportunity.

Thank you, Assemblyman. Sir?

Thank you, Chair Ransom, members of the committee. My name is Neil Koehler with Renewable Fuels Association representing ethanol producers in The United States. I wanna wanna thank Senator Archuleta and and Assemblymember Alvarez for their leadership on this issue. Also, really want a special thanks to the Problem Solvers Caucus who has sponsored this bill and been in incredible in their support. We support the bill.

It is the single most immediate thing that can be done to reduce gas prices in California, and it can do that while also lowering emissions. So very supportive of the bill.

Alright. Thank you all for your brief testimony. With that, is there anyone who would like to add on in support of the bill?

Good morning, Madam Chair and members. Dawn Koepke on behalf of Shell USA and the California Manufacturers and Technology Association in support.

Morning, madam Chair and members. Damon Conklin with League California Cities in support.

Thank you, Chair Ransom. Jackie Onas with the Slogans Jensen. I'll be at the California Fuels Convenience Alliance in support.

Thank you, Chair and members. Danielle Legastayev with the California Farm Bureau in support.

Good morning. Steve Wallauch on behalf of POET, an ethyl producer in support.

Good morning, Chair and members. Mollie Corcoran with Axiom Advisors on behalf of Growth Energy and Ethanol Trade Association in support. Thank you.

Claire Moyne on behalf of Cal Grant in support.

Juanita Martinez on behalf of the Cal Chamber, and[inaudible] in support. Thank you.

Okay. Awesome. Thank you. We don't have any registered opposition. Is there anyone in opposition?

No opposition? Okay. Well, seeing no opposition, we're gonna bring it back to the members. Are there any questions and or comments?

Second.

Alright. Alright. I see we're trying to be very expedient here. We have a motion and a second. Vice Chair Hadwick and Assembly member Bains with the second, I just wanna, say I wanna thank the author for being persistent and tenacious and for picking up the baton on these issues.

It's so important as we are looking at, you know, the crisis we face with the price of gas that we are really doing everything we can as Californians to be innovative and to make sure that we are getting out of the way and using the tools and resources that are available to us. So with that, this bill does enjoy a recommended do pass from the Chair, and we have a first and a second. And we're going to, see no other comments.

We are going to ask the secretary to please call the vote.

SB 795 Archuleta. The motion is do passed to the Assembly floor.

[roll call]

The bill is out. We'll see you on the Assembly floor. Thank you.

Thank you, Madam Chair.

Alright. Meeting adjourned.